Word has spread that one of the most popular features in the UBS research universe this month has been an attempt to calculate breakeven production prices for all Australian iron ore producers. UBS analysts have subsequently followed-up with a broadened exercise, including major international producers as well. First observation is, of course, that most breakeven price levels remain well below the current spot price, no matter how much weakness has been seen in past weeks. Secondly, Brazil's Vale, once the undisputed number one in this sector, has now moved to the centre of the cost curve, which has a lot to do with higher transport costs from Brazil compared with Australia. Currency values are also increasingly important. The overview attached should also explain why both Rio Tinto and BHP Billiton show no hesitation in continuing to expand their supplies. It's our production increase, but it's the competition's problem!