Net foreign exchange gain/loss, note 5 of the accounts. For some resason they report it under revenue rather than separate it out after PBT.
It would be interesting to ask management why they are unhedged, especially with the AUD so high. That being said, the $22m USD liability at December 30 is probably looking a fair bit smaller now!
I have actually talked to the CFO about this on a professional level. They only deal with banks (i work for a broker) but it seems the advice they are getting from their banks may be a bit off the mark...
It's unhedged. Different accounting standard 121 v 139. That also explains why the number jumps around so much.
It would be interesting to ask management why they are unhedged, especially with the AUD so high. That being said, the $22m USD liability at December 30 is probably looking a fair bit smaller now!
I understand that VOC now has no debt.
I understand that VOC now has no debt.
It's unhedged. Different accounting standard 121 v 139. That also explains why the number jumps around so much.
It would be interesting to ask management why they are unhedged, especially with the AUD so high. That being said, the $22m USD liability at December 30 is probably looking a fair bit smaller now!
It is my understanding that they are hedged. (refer note 32 from the annual). I cant see that they would have any foreign income. so the FX movements could only be from hedging their IRU commitments.
The change in the value of those hedging contracts is shown as other comprehensive income. My understanding is that the revenue item relating to FX contracts represents the change in AUD value of the unhedged portion of foreign currency denominated monetary assets and liabilities. Once an item is hedged then there is no need to account for changes in the prevailing FX rate because the rate is already locked in, hence it's accounted for below the line. Maybe I am wrong.
Wouldn't those IRU contracts need to be M-t-M each reporting period?
VOC have no Bank Debt - The debt obligation on the balance sheet is the contractual payments for the IRU's. These obligations run through to Aug 2016 and are denominated in US$
It is my understanding that they are hedged. (refer note 32 from the annual). I cant see that they would have any foreign income. so the FX movements could only be from hedging their IRU commitments.
What's an IRU commitment? And how does it impact on the balance sheet beyond being a non-interest bearing debt?
Anyone know what's going on with VOC today? It's share price as I write is up over 11%.
I am reasonably certain it is purely due to me having sold them last week.
What are you selling today?
It remains seriously undervalued in my view.
What's an IRU commitment? And how does it impact on the balance sheet beyond being a non-interest bearing debt?
Of course, the surge in VOC's share price needn't be due to anything meaningful. It remains seriously undervalued in my view.
What are you selling today?
Lol. Sold some RQL today...
Just put an order in for 1,000,000 RQL.
LOL.
SP now up 17%!!!
? ? ?
Hi Nutmeg, can you please outline why you believe VOC to be undervalued?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?