Iron ore price, page-20280

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Have a read of this buddy:

OrdMinnett Private Client FMG Research:

Loweroil prices could provide 2-4% cost relief

Oil prices havehalved from US$66/bbl at the start of the year, to US$33/bbl currently. The US$33/bbl move lower provides material cost relief. Pilbara iron ore operations typically have around 15% of costs related to fuel and energy (mainlydiesel). Fortescue has previously quoted that a US$10/bbloil price move changes C1 costs by US$0.30/lb.

Therefore, the move lower in oil prices couldimprove costs by around US$1/t (theimpact is usually lagged threeto six months).

Fortescue sees a 4%EBITDA improvement from a lower oilprice. C1 cost guidance is US$12.75–13.25/t.A US$1/t drop in costs would improve ourFY21 EBITDAby US$170m and net profit by US$120mor around 4%.