Some (traditional/older/standard) economic models don't include...

Some (traditional/older/standard) economic models don't include the cost of pollution - it's treated as an externality - essentially assumed not to exist. I haven't seen the Deutsche report so don't know if their concept of 'value in use' picks up the pollution cost (associated with different iron ore input feeds) - but I know the Chinese government are concerned about smog in their cities - the cost of pollution is real to them.

FMG doesn't include much detail on it's customers in its reports - so over time its possible it's customer base within China is changing.

I accept without checking that as the low cost producer FMG will continue being profitable, have good free cash flow etc - but would prefer to see more evidence from FMG management themselves that their concept of 'value in use' is not going to get to out of whack with the Chinese governments - because the Chinese government will change policy faster than some economic models may be changed.

I have little interest in dividends - I look for capital gains in my stocks - for FMG's share price to appreciate there needs to be an expectation not just of decent profit and performance but of improving profit and performance.