investor roadshow, page-276

Good point wanted-man - been trying to wrap my head around the same but can't see it being an issue within bounds. The low U$ being just what they need right now it should lead to their recovery so havn't thrown them in the monopoly basket. -Say we spend the next 5-6 years rolling out plants in the US based with debt or cash in US$ resulting in our market-cap increasing in $A. Now the US investor looks at his reducing currency and sees a natural hedge in MHM during this period. -while we go from say a MC of 170mill to 500mill in $A he watches his investment in US$ rise by more still whilst our debt in US$ shrinks. Then in 6 years time when we are paying nice divvies and no US$ debt we correct the other way - and our income in US$ acts as a natural hedge again - increasing our income and hence MC in A$ as the $A falls. It may hamper the acceleration of our MC by say 20% on the way up if we get to $1.30 exchange rate but that is relative to est 5-10x growth during that period. The appearance of our stock during that growth period to the US investor is more important than the OZ investor imo - when they get on board we won't be mucking around at 50% of NPV - more likely 80%.

big imo tho - not a currency trader