At the end of the day Nido like all oil co's and to a lesser...

At the end of the day Nido like all oil co's and to a lesser extent all resource companies are $US companies - that is the bulk of the costs that they face for exploration and development are in $US and the commoditiy that they hope to discover and produce is priced in $US.

From that viewpoint the $A shareholders are the ones who actually bear the exchange rate risk, the share price in $US should (based on fundamentals) be less volatile.

It is absolutely the case that ML need more than 8c for their shares - remember that they have the option to convert but not the obligation - so they are entitled to receive the 8c per share in repayment of debt if they so choose.

It will be a massive relief when this convertible note is done with - I understand that Gillian Evans is not terribly well though of around NDO these days - the convertible note was her baby... Interesingly her other half (Paul Fry) has not gone with a convertible note for any of Kairiki's many capital raisings - lesson learned?

p1000