re: australian dollar, page-4

re: australian dollar
Two points to the importance of a low $A to MAE:
1. If MAE is a gas producer 90% of the gross sales in US$
would be profit - only 10% of the sales in $US go in
expenses with net production profit in $US is 90%.
Currently, the gas price is around A$7 & based on
20mmcf/day would give a gross income of US32m(A$50m)&
net US$29m(A$45m).
2. If MAE was to sell it gas assets, it would get US$ values
which converted at US$0.65 multiplies the effective
sale value to Australian shareholders by 53%.
If the value of the A$ falls even further then MAE is
better off & if it rises then MAE is worse off. If it
went back to parity MAE would only get A$29m net profit.
A$45m vs. A$29m - hardly diddly squat!!