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).

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