“2. The communications need to become consistent – establish a currency that all communications are made in – US$ or $A.”
The confusion about choice of currency arises because some investors aren’t always conscious of the monetary environment that the Company operates in when reading a communication. It is an Australian company operating in the US. It is required to report to its shareholders in $A. It does so using the A$/$US exchange rate that applies at the time.
However, issues such as sales contracts or loans need to be reported in the currency in which they are written. If it takes out a US$10M loan there is no point in describing it as a A$13.5M loan, because a week later it could become a A$13.0M or a $14.0M loan. The same would be true of sales contracts written in US$ (or any other currency for that matter). A US$5M contract is a US$5M contract. That’s what the Company reports.
Those reading the reports need to be aware of what they are reading rather than blaming the Company for their confusion. Any excuse to shift the blame.
AJX Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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