ie what is the effect on the DFS Canadian dollar cash flow due to the Turkish Lira devaluing by about 100% since the DFS was published?
ie USD/Turkish Lira has gone from 2.2 then to 4.09 now. The CapEx money exchange rate fluctuations have been hedged but the opex and sustaining capital will be markedly effected. I can't get my head around what it means for the IRR and NPV in Canadian dollars. It should mean that the income in Turkish Lira should rise so that should be good if money is being reinvested into more Turkish based projects (ie Gediktepe) but what does it mean for the profits in Canadian dollars?
Economy there is overheating. Lira falling and double digit inflation. I can only guess from the AQG share price not gaining traction that this economic outlook doesn't stack up well for investors. I'm still going to hold off buying until I can understand what these effects mean for the company.
Anyone shed light on this?
Having read the BDR half yearly recently, profitability for BDR is negatively sensitive to a falling Brazilian Real exchange rate against the USD which is currently happening (and Trump's trade tariffs won't help), I can only imagine the same would be true for AQG and the USD/Turkish Lira pair. Esh
AQG Price at posting:
$2.06 Sentiment: Hold Disclosure: Not Held
