ann out!, page-59

The one issue is the earnings available to be declared and paid. Some of you may or may not have realised that KML does not hedge it's loan because of the "natural hedge" against the I/O price, with both being stated in USD.

Accounting standards require that unless the hedge is "to some extent" perfect (and I say that because there is a tolerance level) then any revaluations need to go to the P&L.

Since the hedge, for accounts, is not perfect, then any revaluation will go to the P&L, and although GBG may be cashflow positive (for the purpose of this post I will leave that debate alone) with the falling AUD against the USD then there will be significant losses through the P&L, until such time as the AUD starts raising again.

The only otherway to pay a dividend is out of share capital and doing this requires directors and the company to consider solvency (although dividend payments require solvency test, they are less onerous than payments out of share capital). With a loan dated out to the 2020's it would be a brave director to sign off on that one.

All IMO of course.