Redrockgeo,
You are totally correct I was quoting the 62% Fe platts index, the 58% index for iron ore is currently at 122.75 CFR.
US$122.75/t (price) - A$116/t (cost) = approx US$6.25/t profit
In other words they are making some money at the moment on this which helps in the ramp up period.
The AUD/US FX is now down to 90c, this also helps them.
