I rang KM and spoke to one of their representatives - Kate Dunne was her name.
I mentioned that with Molycop sale reaping $400 million than the previous low ball offer and the strong increase in steel prices (and the tariffs of 30% to 50%since 7/4/2016) and the high iron ore prices, why it could not return to trading.
All I got was a bullshit story that while prices have improved so have input costs - rubbish - Whyalla may have seen coking coal prices increase but Trade Unions took a 10% paycut at Whyalla and the MRB iron ore mines. Arrium also supplies its own iron ore and scrap metal - so what the hell did I get this rubbish for?
Shareholders will be furious if we get nothing back.
The FIRB can stop this rot by simply rejecting it on a national interest ground - steel is of national interest and also, the patented technology in the electric arc furnaces as well.
Be much better in Bluescope's hands than a foreign company one would think? Reject it and do a recap plan and then let Bluescope take it over.
ARI Price at posting:
2.2¢ Sentiment: None Disclosure: Held
