Justin Waite on his blog suggested currency movements and that seemed plausible until I looked at the rates back in August when they were "fully funded" and the rates now. The US dollar was buying AU$1.39, now buying AU$1.35. Not much change. They told us they had fixed price contracts, presumably they knew the cost of the big ticket items back in August? All of their labour costs and many of their manufacturing costs are in Aussie dollars. Why didn't they hedge if the loan was in US dollars? They thought they were clever but clearly not clever enough.
SO4 Price at posting:
48.0¢ Sentiment: Sell Disclosure: Not Held
