with 339 posts on this forum, you sound like a bit of a 'newbie'
if copper halves from its current US$2.30/lb, SFR would report a loss
currently, the only thing maintaining the share price is the fall in the AUS$
for FY15, SFR sold 67,903t copper and 37,194oz gold last year, which equates to say 75,000t of copper, at A$3.32/lb or US$2.76/lb average, using an average exchange rate of 0.83
their total operating costs was $246 million or AUS$1.49/lb. their total costs, including interest but excluding depreciation, was around $305 million or AUS$1.84/lb
they appear to not have many hedges
therefore, if copper halved from its current US$2.30/lb and the exchange rate fell to 0.65, SFR would receive A$1.77/lb for its copper, where its total costs would be A$1.84/lb
this shows your unresearched unsubstantiated opinion is incorrect
as for this year, at say .7 exchange rate, they may earn A$3.28/lb, the same as last year, if copper averages US$2.30/lb
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