cer will trade below 4 cents, page-12

Hi numbers man,

If the exchange rate does go down to 55 during the next 6-12 months, then they may have an issue with regards to its FX income hedge as according to the presentation the weighted average hedge is at 0.69 and they are currently overhedged.

They are not significantly overhedged but nevertheless this may eat into their income.

The FX equity hedge will still have nil affect on cashflow as these do not begin to mature until Dec 2011 and have an average maturity of 4.5 years. The exchange rate only needs to go into the 80s for a short amount of time for the hedges to be closed out for nil consideration.

Yes anything can happen. You are right.

Dont think its something that we should stress about 3 years out though!