It shows the current breakeven levels for various iron ore miners, along with the annual volumes each produce and the average quality of the ore they mine.
Macquarie says it used the average for spot freight and exchange rates over the December quarter last year in order to calculate individual firms breakeven level.
At $US28 and $US31 respectively, Rio Tinto and BHP Billiton had the lowest breakeven point of all miners monitored, well ahead of the likes of other market heavyweights such as Brazil’s Vale and Fortescue Metals Group at $US43 and $US48 respectively.
According to Metal Bulletin, the spot price for benchmark 62% iron ore fines stood at $US76.80 a tonne last Friday. In comparison, the price for lower grade 58% fines is currently significantly lower at $US42.32 a tonne.
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