Ann: FY2018 Financial Results Summary, page-13

- Bought a bunch more today. Solid result. Good announcement. Some people don’t understand depreciation as an accounting activity. just look at cash increasing.
- 40% hedging is at $1740.
- 21% of Australian economists now predicting recession in Australia. Watch this go up. RBA will have to drop rates in 2019 if banks increase rates based on o/s cost of funds increasing. What that means; is downward pressure on AUD while for other reasons but in parallel the USD index falls back to 90 (trade wars ease, tax reforms run out of steam). Only reason for US rates to stay on course to go up is to create monetary buffer for an expected downturn event and/or inflationary pressure, so moving into a situation that is win/win for GP. 2yr and 10yr bonds getting very close). So USD GP will inversely go up to a falling USD, whilst AUD USD remains neutral
- slr will be rerated into asx 300
- 1H19 will be low on cash added to bank. 2H19 huge. With further demonstration of longer mine life with multiple zones of high grade. And that assumes AUD GP goes to get back to $1700-$1800 by November which I think is a chance
Cheers
Pez