Hi MrG I would say this is abnormal. I watch ARI closely and whilst it is common to see a $0.5M trade about 11am and another around 2pm, the $1M and $8M trades you point out are rare and extremely rare respectively. I hope it is a positive sign also, perhaps another insto buying in above index weight.
The good news is that the full volumes of IO kicks in within 5 months so the market is now factoring this in without discounting for execution risk.To have this occur when the IO price is high, is beginning to look exciting. The icing on the cake is that the CR risk is behind ARI, the Steel business is cash positive and the Mining Consumables business is now making significant EBIT contribution.
This is about as good as it gets in this business with a legacy steel asset in a soft market and fighting a high AUD.
I have long felt that ARI was worth around $1.30 - $1.50 but if the IO price stays strong it is more like $2.50.
GLTA Holders FT
ARI Price at posting:
$1.26 Sentiment: Hold Disclosure: Held
