Mate .....what is it that you don't understand. We ALL know ( including me ) that the interest rate is based on 15% ( in usd ). That's presently equivalent to 23 % at a current applied currency exchange of 65 cents to the USD. We also know that current loan balance ( IN THE Book's !! ) is presently $A244 million. There is no need to change it back " first " mate ...so I don't know what you are talking about , and I'm actually a fully qualified Chartered Accountant. The illustration is simple. If the company continues with the ' status quo ' on the current principal , and continues to capitalize the interest with absolutely no repayments. And the Aussie continues to wallow around these current levels. Then in 2 months time ( including the capitalized interest ) , the loan balance will be $A300 million.
So if this scenario continues this way ' unabated ' for the full 42 months until expiry in August 2023 , the total loan balance including accrued interest for those 42 months would be approximately $A500 million. What can't you understand about this simple analysis. The interest is capitalized and compounded for the entire 42 months. So I don't know what you are on about with your whole 15 % , 15 % 15 % business. And I never stated this in my analysis.
AJM Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
