5% expected growth adds $50 m to Ebitda - we already knew that .-so this year break even for starters.
BUT ADD
+++PRICE INCREASES-Rural products,Hot Rolled Structurals and Merchant Bar. 3 Pluses
+BSD exiting structural steel distribution and others rationalising. 4 Pluses.
+Low scrap prices offsetting fall in steel market prices (for billets one can presume) as ARI scrap competitors take lower prices and have to ship further globally for less money driving cost down and supply up. 5 pluses
+Sydney Arc furnace making new production records with utilisation up (65% of processing is fixed costs). Makes it 6.
Not just selling steel but-SOLUTIONS = $$MARGIN$$
Whyalla lowering cost using cheaper coal blend and upgraded plant pellet feed taking costs lower.
OST Metalcentre-9 sites to go in this year cutting its Cost base.
Reinforcing extending Wetherill Park from less than 100t/day to 150T this year on top of the new Bar processing and prefab facility built next door last year.
We all know Moly-Cop is doing well.
This presentation will up the anti for any buyer hoping for a distressed sale.
Mining shedding $19m cash this QTR towards its restructuring costs.
Phoenix rising?
Certainly 11.5c is better than 8.5c and not quite 35% up but far less than 80-140c of not that long ago and far from 48c Capital raising.
The most informative chart is the cost of supply and Asian Steel Price makes up barely half of the Australian wholesale price of any raw steel product and that is in US$ cost of import.
DYOR +DYODD
ARI Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
