On the whole, I think the weaker Australian dollar should...

On the whole, I think the weaker Australian dollar should provide a small boost this financial year.

It is true that the local dollar has depreciated against the Chinese Yuan, which would push up the operational costs in China. But the AUD has fallen by less than 3% against the Yuan since the 1st of January this year, which is on the whole pretty insignificant.

Outside of China, most of the work carried out by the company is in Europe, the United Kingdom, the USA and Canada.

Since January 1, the Australian dollar has fallen just over 5% against the Euro, by around 6.5% against the pound, by just over 8% against the US dollar, and (perhaps surprisingly) by about 6% against the Canadian dollar.

So the weaker dollar is likely to provide a noticeable, if not massive, boost to revenue from the international operations.

One possible negative to watch out for is that the new shares being created for the CEC and the Phoslock Beijing employees (as mentioned in the Monday announcement) could possibly result in a wave of selling that could weigh on the share price.

However, I suspect (or at least hope) that the management would have foreseen this, and thus are sitting on some good news that they will soon release to bolster the company share price before this eventuates.

Edshan mentioned that there was a Melbourne conference tomorrow in which the company was giving a presentation: perhaps this might provide an opportunity for the management to unveil a new contract or two?.

It is interesting -though possibly irrelevant- that Fluence Corporation announced on Friday that they had won a 45 million dollar contract to supply wastewater treatment plants in China over a three year period.