Ann: IFE Brisbane Mining 2010 Presentation , page-53

two siple explations stagman-

1. revenues are quoted at the Fe price less freight. Lets call them net revenues.
2. future net revenues (ie fe price less freight) will be higher due to reduced freight costs via higher tonnage vessels.

Does that make more sense now?

Hope that helps

p.s. tied into the higher net revenue is the probability of lower opex too, as the use of bigger ships will probably come as a result on new (closer) port access. Therefore, we should get a double wammy for the bottom line. It is highly possible that, based on current Fe prices, we could make $70+ per tonne after 2-3yrs. Management is just being conservative with what they have quoted thus far.

It is an amazing great story, and judging by the SP is it not undestood well enough yet.

Cheers
Split