To put it simply:1. All Iron Ore is sold in $USD, so it is a...

To put it simply:

1. All Iron Ore is sold in $USD, so it is a natural hedge against the loan.

2. The total JV loan of US $1.2 billion was budgeted on 0.93. The loan was not drawndown at this rate, that would have been ridiculous as we would have occured an interest expense on the full $1.2 billion during the 2+yr construction period.

3. We have a US $1.2 billion loan facility which has mainly been drawndown over the last 9 months. This makes sense to use cash reserves first over the loan facility (generating interest expense).

4. 0.93 was obviously an educated assumption of the AUD vs USD. Hedging would have just added risk to a company with NO CASH FLOWS as it could have gone either way.

5. The FOREX blowout of $150-$200m is for the JV, so GBG effectively incurrs half of this. We have known of this FOREX blow out for a long time, and is in line with estimates.

I'd prefer debt any day over another raising, especially at these prices. Given we almost have a 50/50 D/E ratio it shouldn't be too hard to obtain the debt financing considering the initial project was done on 70/30 D/E.