Aussie Dollar to fall, page-3

But there is a two-edged sword to this.

The KML debt is in $US. This is in the order of $US 2381.32m. The elusive interest rate which KML pays may be 5%. At the current exchange rate of 0.7679 the interest expense is $AUD119m pa. At a 0.48 exchange rate the interest rate balloons out to $AUD248m pa.

This may bring the death knell to KML and thus GBG as there are some debts we have to KML.

It is also interesting to note that the total shipments for the March 2018 quarter of approx. 33 shipments is the lowest ever.

I am projecting at this stage for a 135 shipments for the FY2018 year for approximately 8.1m tonnes some 4.8% lower than last year. Lower export quantity means higher cost per tonne.

There appears to be a perceived tardy approach to exports by KML as this 2018FY it takes 2.8 days between shipments. The theoretical maximum number of shipments is one every 2.14 days per shipment based on the limiting factor of number trains able to deliver magnetite to Geraldton.

This means that KML exports are operating at 76.4% of theoretical maximum.

Recently there was 4.18 days between a ship departing and the next one docking. There may have been some mechanical issues, but KML has been operating for more than 5 years and one would expect that they had their act together.

Or maybe it is a ploy to degrade GBG's holding, but with the cone of silence around KML one would never know especially the GBG directors on the KML board.