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04/06/14
10:26
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Just say Iron Ore and currency prices do not move or average today's spot prices for the next 5 years.
What would AGO's Net Debt look like in 5 years time?
Assumptions...
Production Rate 12Mt a year
All in costs = $70/t (excluding stripping)
Capex FY15 = 122m and then $60m (ie $5/t for stripping) for each of the next 4 years.
Dividend = 0.03 for each each year. Yield = 4.5%
FY19 Net Cash = $63m
It would be $100m higher if no interest was paid on unused but drawn down debt.
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Now a 5 cent fall in the audusd to 0.8750 changes this to...
FY19 Net Cash = $258m
It again would be $100m higher if no interest was paid on used but drawn down debt.
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Now a $US5 rise in the Iron Ore price to $US97.50 (audusd 0.925) changes this to...
FY19 Net Cash = $268m
It again would be $100m higher if no interest was paid on used but drawn down debt.
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