Citi says Vale will open big cost gap on Fortescue Metals

Both #Vale and #Fortescue need a benchmark price of about $US40 a tonne to break even while #BHPBilliton and #RioTinto require about $US25 a tonne, #Citigroup analyst Alexander Hacking said. Those break evens – the price at which the miners are not making or losing cash – have been calculated on an earnings before interest, tax, depreciation and amortisation basis (EBITDA).

Read more: http://www.smh.com.au/business/mining-and-resources/citi-says-vale-will-open-big-cost-gap-on-fortescue-metals-20150831-gjc70w.html#ixzz3kTvqvxJQ

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