The Qtrly - 6 monthly -What will it say ???, page-11

Gents,
Not for one minute do I consider ARI a candidate for Admin.
Just pointing out that even a nearly dead horse has a value to a knacker as dog tucker and that can sometimes be more than you think.

ARI's no where near that and nor do I think if anyone in the lending syndicate gets a cold it will be all over.
What Bollocks.If there are 27 members and possibly 27 dissenting opinions .
If you've ever been in a syndicate of any kind there are criteria for entry and exit and changing terms and conditions.
That normally comes down to a vote,in proportion to your holding and the overall managers decision.

Not that any of that matters as long as ARI stays within its covenants and they are stuck with their obligations to lend up to the facility amount.Hence the offer of debt with possible further draw down last year at a discount.

BSL was told the last time they went before the competition boys from memory -That the commission didn't consider any further applications from BSL would be considered for amalgamation/concentration within the steel industry.

In fact I consider shareholders are due some good news,if only the board knew how to tell us.
They couldn't elaborate on how well the Sydney ARC furnace was really doing financially while seeking penalties for dumping re-bar now could they.
BUT THE BIG HINTS WERE THERE.
How many ways can you say RECORD PRODUCTION and improved process due to minor process improvements and dropping input costs especially with "scrap falling quicker than the steel price". to quote them.
Doesn't add up to losing money is my first thought.
In fact "Creaming It" does on over 25% of ARI's current steel production Capacity
Wonder how Melbournes doing with the same input cost reductions for its even larger Capacity ARC furnace????
Both ARC furnaces made up 40% of last years steel production and have the capacity to make over 55% possibly more if Sydney's official capacity has risen.

Anyway they'll be back from holidays soon enough and do the figures for the half year.

DYOR + DYODD Steel should be unsurprisingly positive.
Consider either the massive restructuring taking place is FORCED economically,OPPORTUNISTIC,or THE RESULT OF A SMART BUSINESS REVIEW,by a money man placed on the Board for just that purpose.
I consider all three options are in force,but to be able to pay the costs associated with this means there is "Cash Available" or being freed up to do so in an orderly fashion.I can see where some of this cash is coming from.