As I reported earlier today, benchmark iron ore settled at $58.80 per tonne. 58% iron ore is today at $38.99. That means the discount is approaching 34% and FMG’s breakeven price is pushing north of $45, according to UBS:
Moreover, SGX futures have worsened as well, steepening the 58% discount arbitrage:
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Rendering FMG insolvent within 18 months.