Good point on the AUD fall, Damon; ideally, TZN will have held...

Good point on the AUD fall, Damon; ideally, TZN will have held the USD earnt on closing out the hedges as USD in preparation for upcoming costs for Algeria..guess we'll know in the next quarterly statement. I know at the moment I'd much pefer them to hold the USD and just have it marked to market as a currency gain in the Pn, rather than having to see them progressively buying back USD to cover costs. Certainly, my first instinct as CFO would be to look at only FXing enough USD back into AUD to cover my production and fiancing costs for Angas, plus a sall extra margin; I'd be looking at holding mostly USD as that wil be what we are incurring - that, and the fact the Aussie seems destined to weaken further, at least in the short term. A codicil to that is that I'd be incuding looking at my various fundin rates for long balances as well to optimise returns in that persepective. Anyhow...

Can't remember off te top of my head whether the new converible note was struck in USD (from memory it was, although I did have a lot of red wine last night). Certainly another reason to hold USD if so.

The AUD/commodity correlation is certainly a blessing as a hedge at times - it may limit your upside if you report in AUD, but also helps with the downside as well.

I'll try and dig up the details of the hedges and run the numbers on the likely effects over the next few days or so if I have the opportunity; I'll let you all know.