The value of the assets on the Arrium books are obviously Bakewell's and others accounting estimations. Unfortunately the market determines the value of an asset, the $2.1 billion they had on Molycop was fantasy land stuff at this point. Their Molycop UBS Lazard sale road show suggested a forecast of $287m profit for Molycop this financial year, we'll know at the end of June the actual figure but with $109m the first half I can see them falling about $50m short on their estimation(more fantasy).
With Roberts, Bakewell and James gone the assets of the business will automatically increase, especially with strong cost cutting measures rather than the wasteful use of advisers and consultants. I'm assuming the strategic review was put through the Whyalla blast furnace last Friday when Roberts and James were dismissed.
A new frugal Board providing leadership and the assets will increase even further, just have to hope the right choices are made re who to put in charge.
ARI Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
(20min delay)