UBS analyst Glyn Lawcock says the low iron or price is now factored in to share prices of listed iron ore producers

UBS analyst Glyn Lawcock says the low iron or price is now factored in to share prices of listed iron ore producers. With the cost of production for the big operators such as RIO ($44), BHP ($55) and FMG ($70) still well below current levels it is the higher cost operators that are sweating the most. Lawcock says the market has been incredibly short iron ore and that share prices for these miners were factoring in significant further falls in the iron ore price. So what is the impact on the bottom line for producers? A $US10 movement in the iron price translates to a $US2.1 billion difference to Rio Tinto's bottom line, and $US1.2 billion for BHP Billiton according to Credit Suisse. When applied to earnings, the Credit Suisse figures show a $US10 price movement had a 20% impact on Rio and 9% on BHP. Full article here: (VIEW LINK)


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