Ann: Annual Report to shareholders, page-20

The target for Performance options are pathetic, 58% Fe or higher. The cost of getting very low grade up to 58% (which is still low grade) will cost more to produce than the sale price.
A low performance target means low expectations.
Anybody who talks about $30/t profit doesn't know what they're talking about.
The discount on low grades ie anything under 62% is widening. The only way to profit from low grades of 62% is to pump out millions of tonnes like FMG, even AGO can't make a buck.  
For low quantities ie 400,000 tonnes to 500,000 you need to be producing 65% pellets. Otherwise the small profit made will be absorbed by management fees.