Krypton, "You make some very good points. If as per your...

Krypton,

"You make some very good points. If as per your comment, the iron ore price is US80/t (say A$95/t) for next 10-20 years, then Royal has no chance at its stated break even cost of ~A$99/t.
Not sure why Royal says it would be a low cost producer??"

Not exactly correct. US$80/t (AU$95/t) spot price is base on 62% iron fine. ROY wants to produce 67% iron, that extra 5% iron usually get $2-5/% ($10-$25/t more than spot price). So ROY can probably get AU$105-130/t (if spot price stays at US$80/t for 62% iron). FMG produces 58% iron fine, so they sell discount to spot price iron.

So at moment margin for ROY is small but is that enough to start a NEW mine? Margin is still better than AGO, GBG, GRR and many Chinese miners. Further, if AU dollars drop further than miners here will be more profitable.

Just IMHO, DYOR