Iron Ore Price, page-500

I still used the guide price from the March 2015 quarter, C1 cost was US$23.5/t (guide US$23-24/t), which is US$5.5/t higher than C1 price US$18 for FY2016.
AUD/USD average for June quarter is 77.7c, crude oil price was fairly stable at mid US$50, so my estimates are close to what actually happened.

For FY2016, Platt 62% iron ore price might stay at low level, around US$50/t which is the critical level for high cost producers including ARI, AGO, MGX, BCI, if spot price sustains at US$50/t, those high cost producers would be forced out of the market. Majority of Chinese producers are high cost, well above US$80/t, government subsidies won't be sustainable, there were estimates of further 70Mt Chinese production would be forced to shut down.

Re AUD/USD, Goldman Sachs recently forecasted, AUD would drop to 67c in 12 months, that would reduce cash cost by further US$2 - 2.5/t.
If FMG achieves all-in cash cost of US$31/t, FMG still can generate free cash flow of US$1.5b per year at the spot price of US$50/t.

Re media speculation of asset sale, FIRB application and expansion study of railway, any deals will send sp higher, IMO.