The credit rating was driven by the financial update from 17 May, which insinuated there could be an impairment charge of $75-100m which we would not find out until thr scheme voting has taken place...
It assumes factors such as oil prices, shipping costs and discounts being elevated and maintaining that. No such commentary however around the drop in the aud during this quarter.
The oil price for example has fallen 9% since the update.
Even when the write downs of $900m plus occurred for HY ending 31 dec 2014, these weren't flagged to the market until one week before the end of quarter.
There are also a 1b of other write downs that have occurred that could potentially be written back (mostly horizon 2) with fmg now the number 1 shareholder.
Also the credit rating assumed that factors would remain the same for the next 12 months with no unlocking of equity through farming out of assets . No such mention of dso income starting now or ajm royalties.
Ago had lower than a ccc rating at the time of Webber being put on c&m yet it is stil here.
Yes the board agreed to 3c even though this is barely half the DTA MinRes would bolt onto its balance sheet post acquisition.
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Ann: Change to Credit Rating, page-15
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