fortescue takes first step in debt reduction, page-7

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    alleyronin

    Unless I have completely misunderstood.

    - FMG guidance based on $AUD0.95 cents
    - for each 0.01cent decline in AUD production costs decrease by 0.35cent a tonne.
    - Lower AUD = lower production costs

    - All debt is in $US
    - Sales a reported in US$
    - 70.0% of revenue is received as US$

    If AUD$ tanks this would be a benefit, say $AUD = 80.0cents
    and IO price is $100.0mt, based on exchange rate effective selling price would be $125.0MT in AUD

    The debt being in $US and receipts in $US, where is the major risk, please explain?
 
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