Iron ore juniors head the way of all flesh

It’s interesting to look at the charts of Australia’s iron ore juniors and compare that with the cost curve. Here’s the UBS estimate of break even costs:

And now in order of highest to lowest, GBG:

GRR:

AGO:

ARI (which is not a pure play):

MGX:

FMG:

And BCI:

Note the relative out-performance the further down the cost curve you go. Hard to say what iron ore price is priced into equities but I’d suggest it’s not much worse than $100. There is roughly 50 million tonnes per annum of production in Australian juniors sitting above FMG.