Improving size and scale, making it the world's fourth-largest iron ore producer Competitive cost position and long reserve life Limited product diversity and high exposure to China's iron ore demand Breakeven costs (including C1 cost, shipping, interest, royalties, and sustaining capital expenditure) estimated to improve to about US$36-US$39 per dry metric ton (on a 62% Platts, delivered to China basis) in fiscal 2016 Sensitivity of earnings and cash flows to iron ore prices Substantial repurchase of debt since July 2015, reducing gross debt and annualized interest payments The negative outlook on Fortescue Metals Group Ltd. reflects the challenging market conditions facing iron ore players. Slower demand growth from China's struggling steel industry and continued increase in low cost seaborne iron
