one thing to be noted here is, ari is a relatively weak player...

one thing to be noted here is, ari is a relatively weak player in iron ore mkt, compare to bhp & rio. Rio sales @ below $50 a tonne fob china. Ari sales @ around 55 fob aus. After considerig royalties,depreciation, shipping,aortisation and all,their cost comes around $85 a tonne. Thats before interest and tax. so if io prices fall to the levellast year, not much profit foe ari. Still with 12 mt per year from next fy, if prices stayaround 120 a tonne, ari is lookingat ebit of $420 m from miing business only. But if it drops to around 90-100 mark, not much left for ari. With 2.4b of debt , bleeding manufacturing , strong currency,90-100 usd per tonne is a big concern. Will it go there, no one knows. I hope not.