Just to confirm if SDL raise funds in USD and spend in USD, then no exchange rate risk. However if the contracting companies do not report their company profits in USD and all of a sudden the USD that they are being paid from SDL is worth less than originally quoted, then that could potentially raise the price depending on hedging arrangements and terms entered into at inception of the work to be done. It really does depend on the agreements entered into.
Secondly if the USD is weak then it will cost more in terms of USD to build. For example the strong appreciation we experienced in the gold price up until the last week was influenced heavily by the depreciation of the USD, (USD worth less, then it takes more USD to purchase the same ounce of gold), subsequently we have seen the USD show signs of strength in the past week and gold has depreciated (this wasn't the only contributing factor for gold falling but was a large contributor).
Hope that adds a bit more clarity.
All the best
Regards
PS: Thanks for your informative posts over time, I'm also sweating bullets on this thing. Cheers
SDL Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
