Historic earnings don't prevent a company going bust.
A company will generally go "caput" if it cannot service its existing debt, or when it can't continue to operate without additional working capital.
The key here is what is the debt profile, the extent to which the Steel business is cashflow negative at current iron ore prices, and the extent to which Mining Consumables cashflow will suffer in the downturn.
I reckon the risks are still all on the negative for the time being. $700 mil market cap with, I think, the same amount or more in net debt, doesn't look that compelling to me.
ARI Price at posting:
21.2¢ Sentiment: Sell Disclosure: Not Held