Ann: CISA Conference Presentation, page-7

Ok bpinvest, I will give you the references. I have asked hotcopper to change my pseudonym to something more modest, as some people seem to take offence, as yet I haven't heard back.

1) On their balance sheet (pg 103 of annual report) FMG have $1.211 Billion USD in deferred income (a liability that they don't include in their stated net debt position). This includes current and non-current deferred income. It refers to note 11(d) which is on page 117 of their annual report. The deferred income is prepayments for iron ore and for port access. Prepayments by definition are cash payments in advance of receiving the good/service. So FMG is yet to incur the expenses related to this cash they have received in advance.

2) On their balance sheet (pg 103 of annual report) FMG have net assets at 30 June 2014 of $7,583m USD, at 30 June 2015 they have net assets of $7,537M USD, a decrease of $46m USD.

3) When they re-financed their debt in April 2015 they took on a higher interest rate of 9.75% on $2.3 Billion USD of debt. The announcement was on 23/04/2015. They were previously paying 6% and 6.875% on this debt which was refinanced. Page 66 (Note 17) of the FY14 annual report. Total debt increased from FY14 to FY15 from $9.557 Billion USD to $9.569 Billion USD. Page 103 of annual report. Total debt has increased and they are paying a higher average interest rate now since 23/04/2015, therefore the cost of servicing debt has increased.