Agree with this. They would hedge currency exposure at the time they enter into a sales contract (and where payment is lagged, which for this business it is). This hedges their exposure to FX movements in respect of the receipt of cash for that sales contract.
But on the broader question, that still leaves their earnings during a given financial year exposed to the general AUD/USD environment. Sales are made throughout the course of a reporting period, so earnings would be translated at average rates through that period.
Whilst the uptick in the AUD/USD of late is directionally negative, it's worth remembering that it's still a pretty favourable FX environment for translating USD to AUD (at least in the past half decade). The strong AUD will likely reverse when iron ore prices moderate again (which seems inevitable).
WLD Price at posting:
77.5¢ Sentiment: Buy Disclosure: Held
