Ann: Maiden Dividend and 2014 Financial Year Results, page-23

Guys I'm confused. Norse or JD or someone can you answer.
I thought that one of the benefits of the weakening BRL against the US dollar was highly favourable to BDR due to increasing revenue on sales which has been highlighted by BDR in a few presentations. However on page 2 of the Maiden Dividend Announcement, BDR state that their borrowings are primarily denominated in US dollars, leading to the group incurring a net foreign exchange loss of $13.4m resulting from a significant depreciation if the Brazilian Real against the US dollar in 2014.

Does this mean that the weakening BRL is net neutral for BDR, ( forex loss on loan offset by revenue increase). What are the profit implications if the exchange rate is static from here or the BRL depreciates further? I am hoping the BDR directors have not been cherry picking the benefits of exchange rates in their ASX announcements
this last year but neglecting to mention the negatives.

At first read of the announcement I thought that maybe the ~$60m loan may have been restructured to BRL denomination with the new 3year loan facility announced in Jan15. But the wording in the dividend announcement on 27 Feb2015 says borrowings ARE primarily denominated in US dollars not WERE.

Anyone? Beuller?