From UBS:
All else remaining equal, our BHP & RIO earnings estimates for CY 15 would be -21% and -9% respectively under a spot scenario. Nevertheless, RIO would trade on cheaper spot multiples at 12.1x CY 15E PE vs BHP at 15.0x CY 15E. Iron ore: The spot iron ore price is 11% below our CY 15 forecast, and implies a 60% downgrade to FMG’s FY 15E earnings and -133% to AGO.
The reference case is $85 iron ore…