JB206 is correct, he is basically describing what I was trying...

JB206 is correct, he is basically describing what I was trying to explain to you a while back, but I think we had miscommunication.

FMG's break even point is some where between $30 and $35 for the bench mark price depending on grade discount etc, this is the point where they neither make or lose money, every $1 above this number the bench mark sits at roughly equates to and after tax profit of $0.50 per tonne.

The reason for this is of course that when the bench mark price goes up by $1, that doesn't equate to a $1 profit for FMG, because the extra $1 in bench mark price is only going to be $0.80 after the grade discount, then they minus $0.03 for moisture, a few more cents for government royalties, etc, and then finally that profit will be taxed at 30%, which ends up leaving FMG with about $0.50 NPAT for every $1 the bench mark is above its break even costs.

As I said though its only a rough estimate, because grade discounts fluctuates, sustaining capital fluctuates, as does the production costs in USD etc