Ann: Gold Prepayment, page-27

The calculation is:

Loan: $10,000,000
Gold supplied: 7056.31 oz
Repayment period: 18 months
Average PoG= $10,000,000/7056.31= $1417.17/oz
Current PoG= $1,485.96/oz
Interest paid on $10m principal repaid over 18 month period= $485,394.40
If you put this into mortgage repayment calculator this gives: 6.05% interest or 6.22% APR

CBA are doing pretty well out of it (they get about 5% on property). From a SH viewpoint its much better than a CR but the question should be why do they need the $10m at all particularly when they have just paid out about $1m in termination benefits to executive directors who retired and did not work out their time and one of these executive directors back on the board (without a SH vote) as an NED