maquarie report 20.01.09 mgx, page-13

At striking date , any loss derived from the unfavourable movement of the exchange rate under FX hedging contract will be off set by the gain from the same movement when the actual money received from customers in US currency is exchanged to Aus currency. This is why MGX had to make the deal to secure sales at the time so it would have revenue in US dollar rolling in.

By the way, the centre of the hedging loss concern is the US375 million at an average rate of 0.8824 per US$ due to expire in Jan. this year, and whether their hedging amount is excessive than the actual or anticipated amount.

So now you should know why I bought this stock.