My $10 m estimate addressed not only the premium for the current $US 68.5 m but also incorporated a guesstimate for further trades the MMI Q report mentioned. The Q report "The company continues to monitor currency markets closely and may look to increase this option position if attractive pricing opportunities arise". I think by addressing only the revenue side the company has forgotten about the natural hedge with liabilities denominated in $US. I do not think the $A will move back to 0.85 and is more likely to go below 0.7. I am invested in 7 other ASX companies that do not do put or call options.
From my experience when a CFO leaves and is replaced by an interim CFO and the company is to "carry out a comprehensive CFO recruitment process" then more often than not the CFO has been pushed. I hope as a shareholder that the current drop in share price is not a sign of insiders getting out before the bomb drops.
Keep the Faith
Bauxite investors unite
MMI Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
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