"When FMG sells its ore it is currently paid in $US, some of which could be used to directly pay its $US debt if it needed to do that."
"The money that it needs to bring home to pay for its infrastructure and all the costs of operating its mines, plus dividends, is obviously affected greatly by the exchange rate."
I understand the first part, but am confused with the second paragraph..
From reports I have read, they maintain a US$ account to receipt sales and meet interest payments that are in US$ or reduce debt which again is owed in US$.
To meet their Australian costs, they would need to convert the US$ to AUD, Therefore if AUD decreases against US$, they would be receiving more AUD baed on a lower US$.
Have I lost the plot or am I missing something here.
FMG Price at posting:
$4.47 Sentiment: Hold Disclosure: Held
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