Arrium has two main businesses ; regarding its cash costs of...

Arrium has two main businesses ;

regarding its cash costs of producing iron ore sit at around $73 the total cost, including servicing debt, is thought to be greater than the current iron ore price of around $US82.- It is still positive to produce per tone tiro ire .

plus: And this is despite a cost-cutting initiative that should bear fruit in the current financial year.


And Arrium is not at the top end of costs relative to other smaller iron ore producers. Many others are already bleeding red ink. Only a few including the large players, Rio Tinto, BHP Billiton and Fortescue, are making any money out of iron ore at these prices.

ARI is not only fourth large iron ire producer, and also is steel producer.

There is no problem for ARI steel production business. only concern is iron ire price.

However, if iron ire price getting better, ARI is very profitable company , plus steel production business.


Look st the dividends history, ARI always pays the dividends to its shareholders, never absence.

I hope that in order to reduce the debt of company, ARI should no declare dividends payment for next finance year.

DYOR