At the moment, it is not the worst thing to have the AUD appreciating as it will make it easier to refinance the USD loan. We enjoyed a lower AUD during the Dec quarter and this would have assisted our cashflow especially when the iron ore price was in the low 60s. It also assisted in maximising hedge income.
We are unnecessarily paying AUD 10M a year in interest charges even though we are in a net positive cash position. I don't envisage the refinancing taking much longer so let's hope an announcement is forthcoming in the next few weeks.
AGO Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
