Iron Ore Price, page-1171

All-up costs can/could/will be reduced by:

1. Increased operational efficiency
2. Roster changes (save $90.0m already announced)
3. Reduced strip ratios
4. Autonomous trucks and reduction in costs and increased efficiency
5. Fall in AUD (each $0.01 fall =- $0.30mt cost reduction/benefit)
6. Further decline in oil price = saving in diesel costs ($800.0m current spend)
7. Increased sale of Fortescue Blend ( small increase in grade quality and less moisture) = less discount and higher realised selling price against benchmark.
8. Further decline in shipping costs, now 50.00% less than last year, with all indications pointing to further reduction in cost per mt shipped.

I think they may surprise us with the level of reduction in all up costs that have been achieved.

The falling IO price however even after any reduction in IO price will only result in the the break even point reducing, but will not result in any gains in margins achieved unless IO price slowly recovers to $60.00mt