USD 125 million debt due in less than 12 months - we can't pay this?, page-14

You're mixing up spodumene demand and currency and you know it. Everyone is aware of the spodumene pricing situation.

The obvious flipside to USD debt being greater once converted is offset by the sales in USD being a greater AUD sales price against AUD costs. Thats as simple as it gets with no need to bring in the demand for the product itself.

Using $130m USD debt and to keep it simple a 1.5 exchange rate and 10% p.a interest would be $20.5m pa interest. Compared to 1:1 exchange rate, interest would be $13m so an extra $7.5m interest per year from currency.

Now current spod of $600/t US by 220,000 would be rev of $132m AUD per annum at 1:1 ratio. Now use the 1.5 currency ratio we currently have and we get $198m rev per annum so an additional $66m AUD.

Revenue increases by $66m but interest goes up $7.5m. Doesnt seem all that bad to me?