The following is an extract from a report on the AUD. (Alpha Securities)
- the impact of a weaker AUDUSD on profits of certain smaller mining companies can be nothing short of spectacular, in particular smaller miners that are only marginally profitable in the present context. UBS last week calculated it only takes US5c to boost profits for Western Areas ((WSA)) by 159%, for Alumina Ltd ((AWC)) by 138% and for Perilya ((PEM)) by 125% - all else being equal. Other mining companies that should see a spectacular boost to their earnings per share include Grange Resources ((GRR)) at 76% impact, Whitehaven Coal ((WHC)) at 64%, Ivanhoe ((IVA)) at 44%, Mincor Resources ((MCR)) at 43%, Atlas Iron ((AGO)) and Mount Gibson ((MGX)) at 42% and PanAust ((PNA)) at 41%. Imagine what a further US5c fall could mean for those companies in the year ahead!
AGO Price at posting:
80.5¢ Sentiment: Hold Disclosure: Held
