1MC

3.23%

3.0¢ morella corporation limited

USD 125 million debt due in less than 12 months - we can't pay this?, page-15

First 15 Last

Share
Profile

Follow
Cashmeoutside

3,094 Posts.

1914

21/08/19

20:31

Post #: 40083688
Share

Originally posted by Palchum ↑

You're mixing up spodumene demand and currency and you know it. Everyone is aware of the spodumene pricing situation.

The obvious flipside to USD debt being greater once converted is offset by the sales in USD being a greater AUD sales price against AUD costs. Thats as simple as it gets with no need to bring in the demand for the product itself.

Using $130m USD debt and to keep it simple a 1.5 exchange rate and 10% p.a interest would be $20.5m pa interest. Compared to 1:1 exchange rate, interest would be $13m so an extra $7.5m interest per year from currency.

Now current spod of $600/t US by 220,000 would be rev of $132m AUD per annum at 1:1 ratio. Now use the 1.5 currency ratio we currently have and we get $198m rev per annum so an additional $66m AUD.

Revenue increases by $66m but interest goes up $7.5m. Doesnt seem all that bad to me?

Expand

Why don’t you look up the correlation between commodity prices and the USD (the functional currency they are priced in). As USD strengthens commodity prices fall (in USD).

All I’m saying is one thing is for certain a stronger USD means higher A$ debt for AJM. What is not certain is that a strong USD means higher A$ spodumene price for AJM. Stop thinking a stronger AUD/weaker AUD is good for the Aussie lithium plays.

AJM Price at posting: 9.6¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

What each US election outcome would mean for Australian companies & investors

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Making money: How many microcaps should be in an investor's portfolio?

There are more pages in this discussion • 343 more messages in this thread...

First 15 Last

Add 1MC (ASX) to my watchlist

(20min delay)
Last 3.0¢		Change -0.001(3.23%)		Mkt cap ! $9.092M

Open	High	Low	Value	Volume
3.1¢	3.1¢	3.0¢	$1.286K	42.48K

Buyers (Bids)

No.	Vol.	Price($)
2	91929	3.0¢

Sellers (Offers)

Price($)	Vol.	No.
3.2¢	112728	1

View Market Depth

No.	Vol.	Price($)
1	44029	0.030
5	499903	0.029
7	144664	0.028
3	134687	0.027
2	39000	0.025

Price($)	Vol.	No.
0.032	112728	1
0.033	30813	1
0.034	269773	1
0.035	153566	1
0.036	504107	2

Last trade - 15.55pm 01/11/2024 (20 minute delay)

1MC (ASX) Chart

USD 125 million debt due in less than 12 months - we can't pay this?, page-15

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

What each US election outcome would mean for Australian companies & investors

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Making money: How many microcaps should be in an investor's portfolio?

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

USD 125 million debt due in less than 12 months - we can't pay this?, page-15

Top Stories

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

What each US election outcome would mean for Australian companies & investors

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Making money: How many microcaps should be in an investor's portfolio?

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News