$us vs sdl capex, page-8

Hi Pythagerous,

Just my 5 cents, if you have a sqiz at what FMG have done they usually borrow or raise capital in USD thus negating the exchange rate risk. So not so much of a problem during the building phase however the high AUD will only have an impact when profits are converted back into AUD which is obviously a few years into the future. Anyway the low cost of production of this project will make up for any unfavourable exchange rate movements at that time and profits could be held in USD to fund future expansion plans.

Regards

Disclaimer: Own thoughts, no advice given.