Iron Ore Price, page-17816

- US$12.54/wmt C1 cost, down US$1.01 from last Q, overall 2 Q C1= US$13.05 /wmt, with this rate, C1 guidance easily achieved.

- 42.2 million tonnes shipped, last Q 43.8MT, overall 2Q - 86MT or 172MT PA, just above guidance.

- US$1.2 billion of cash on hand and net debt of $4.0 billion at 31 December 2016, now Net Debt Ratio is 30% and Gross Debt Ratio 36%. Well under 40% and only 6 months into FY17.

- Realised Price of US$64.87 (91.7%) vs US$48.36 (82.5%) last Q, now overall 2Q - US$56.46 @ 87.5%. - under guidance. Great demand for FMG IO, if Chinese are willing to buy FMG IO at such great price, their IO must be good demand. If the rate is maintained this Q, FMG is currently getting US$73.3 /dmt, assume average US$80 @ 91.7%. WOW. Huge Margin.

- Strip ratio 1.1 - in line with guidance.

- Total expenditure was US$210M and Working Capital $US$385M = $600M. Money in the Bank US$1.2B.... I think that is where I went wrong. I said US$1.7B. Oh well, hehe.

- Exploration was mainly focused on iron ore in the Pilbara during the December quarter. In-fill drilling was carried out on the Eliwana area in the Western Hub with results consistent with expectations. Development work on the Firetail replacement project has commenced to allow for the timely processing of approvals and licences. Expenditure during the quarter was US$6 million with total FY17 development expenditure expected to be US$40 million. - Eliwana-Flying Fish resource.

We should get $6.80 yesterday and $7 today if Trump had slow down with his "executive orders", hehe.

DYOR.

Frank.