Average realised price in FY16 was US$45.36/dmt, an 88% realisation of the average Platts 62% CFR index price | C1 operating costs continued to improve averaging US$15.43/wmt for FY16, a 43% reduction from the prior year. Capital expenditure reduced to US$304 million (FY15: US$626 million) including US$225 million of sustaining capital, US$48 million in VLOC progress payments and US$31 million of exploration expenditure | A strong result from FMG that is comfortably ahead of consensus on all key metrics but in-line with our estimates. Exception is the dividend which at A$0.12/sh is ahead of our 9cps and near double consensus of 6.5cps. Revenues down 17% yoy but a full year of cost cuts has delivered a ~27% increase in EBITDA to US$3,195m and tripling of NPAT to US$985m | Reaffirms the strong operational and management performance optimising operations in response to a lower iron ore price. Should be well received by the market.