Ann: Debt reduction to continue as FMG recognised as lowest cost, page-16

Its not "a no brainer with current cash flow", in part, because current cash flow is not a no brainer.

I've read, and it makes sense that they would, FMG model out various scenarios when they consider repaying debt. In the past FMG has taken advantage of the market unvaluing it's notes and it bought them back on the open market at a discount, currently, if Nev believes the io price is too high, (if he thinks the right io range is 50 - 60 usd long term) he might prefer to take advantage of the market overvaluing the io price and accumulate cash for longer in the expectation it won't last.

As soon as cash is committed to any particular option like the 2019 debt, it ceases to be available to commit to another option like the 2022 notes (either of them).

Now I'm reading your line "April 2018 refinance the 2023" and two things occur, maybe you are right about April 2018, my memory says 2017, but you are not right about the 2023, its 2022.

Okay, I just checked.

The 478 million (6.875%) is repayable from April 2017, the 2022 (not "2023") is repayable from March 2018 (2.160 bn, 9.75%).

There are carrying costs in holding cash versus spending it immediately to repay debt, but cash can be invested. So investing cash on hand to earn interest and waiting for April 2017 or even March 2018 might be the better play. At some sufficiently high rate of interest it would be the better play.