AM is one of the largest integrated steel manufacturers in the world and are headquarterd in Luxembourg.
Some observations from the investor presentation to the Global Metals and Mining Conference, New York on 10 Dec 2013 : http://corporate.arcelormittal.com/~/media/Files/A/ArcelorMittal/investors/presentations/investor-conference/2013/Macquarie-Conference-2013.pdf
* In 2013 AM produced approx 60MT of iron ore frorm its own mines primarily located in Canada and Liberia (West Africa) * slide 26. Access to own materials is a key criteria / input to positioning themselves for industry leading returns and value * slide 41. AM have $14.5B of available liquidity (4.5B cash and 10B unused credit lines) * slide 44. AM have repositioned their balance sheet since 2008 with reduced debt being achieved partially through asset sales. They sold a 15% off take from their AMMC mine to Posco and China Steel for $1.1B. (approx 3.6M tpa based on slide 54). AMMC is a smaller but similar operation to SDL's ( with mine, 420km rail and port operation) * slide 59. AM are adding 30MTPA of production from their existing mines between 2012 and 2015. The graph identifies the potential addition of approx 40MTPA from potential brownfield and greenfield projects under study by 2017. (This graph seems to have first appeared in the presentation at the Global Steel and Mining Conference 2013 on 18/19 Sept 2013, although I did not look back any earlier than the June 13 presentations.) * There are several slides around AM strategy to lower costs and continue to increase margins into the future. * There is also an interesting section on China and world demand for Iron Ore going forward.
SDL would seem to be an opportunity for AM to full fill its growth and cost strategies, particulary wrt filling the 40 MTPA growth from potential brownfield / greenfields projects by 2017.
GTLA this time around :)
Cheers
Z
SDL Price at posting:
8.9¢ Sentiment: Hold Disclosure: Held
