As the daily spot price is absolutely meaningless to the...

As the daily spot price is absolutely meaningless to the profitability of ARI. More correctly 75%- 80% of ARI profitability. Only the AVERAGE price for the half in $AUD is of any importance to an investor!

Of course, the trend of the daily spot is interesting looking forward but you HAVE TO also consider inventory at steel mills and ports. The relationship is clear and undeniable.

So here are the average prices...

1H14 Iron Ore = $US134 ($AUD 145)

1H14 Iron Ore = $US116 ($AUD 126)

So only a drop of 13% in AUD.

If all you had was this information would you buy or sell ARI as an investor? You definitely would NOT sell at 96 cents.