let me try and explain, the “All in cost” you mentioned, is...

let me try and explain, the “All in cost” you mentioned, is actually the break even price, which includes the royalty up to that level, what that means is that if the 62% Iron Ore price was $35, FMG would be neither making or losing money, they would be breaking even.

So $35 price you quoted includes $2.10 of royalty already because as you stated it’s a percentage, but what I am saying is that if the Iron Ore price is $1 above their break even they don’t make $1 in profit, because as you said certain costs are percentages, so those cost increase as the price increases.

that additional $1 gets eaten into by another 6 cents royalty due to the higher price, same with the grade and moisture discounts, and off course the remaining “gross profit” of that $1 gets taxed, leaving only about $0.50 of the $1 in additional price.