time to move to the teens, page-9

Jannie do you realise EBIT is earnings BEFORE interest and tax. Do you know how much interest AMA is going to be paying this financial year alone. Dont forget to put in debt of $30 million in your scenario. Also dont bet that just because the RBA has lowered the cash rate that the interest costs are going to go down. Bank bills are essentially short term funding and there is every possibility that the rates have been locked in. Of course if they are able to renegotiate the facilities in october next year they might be able to argue for a lower interest rate, however given the higher risk AMA would have in accordance with the banks veiw, they risk spread they are obliged to pay maybe a lot higher. Am waiting on the nextg announcement to decide what to do. However if it is anything but very positive (based on hard facts) I am out of here.