Moly Cop should be seperated and try IPO, page-3

TAX can be a rather defining issue.
It may simply be for example that the Indonesian plant has possibly received some concessions as a result of it replacing imports,that only apply or continue if the original owner continues to operate it for a number of years.
Getting a Govt to agree moly-cop is still the beneficial owner when Atrium no longer is may require time.

I anticipate those expecting a big payout from a sale forget the main pressure behind ARI looking at its options--That was and still is a deteriorating IO PRICE and a steel price collapse.

If ARI does decide to part with MOLY-COP that will be because the fuure looks bad for both steel and mining with reference to them having neutral or negative cash flow.
If I am right then the last (5 months) aka knowing what this six months will have produced will be the deciding factor.

HENCE -
The SALE of Moly-Cop will be because ARI has burnt a fortune over this period treading water.
The longer ARI contemplates the offers-The better ARI's current cash flow position likely is.

HENCE-
The NON-SALE of Moly-Cop effectively announces ARI reasonably expects it will be able to meet its debts as they fall due. With $270m ebitda and equivalent free cash flow over the next 3 yrs,not too hard to imagine as long as steel and mining are not chewing the cash.

It certainly pays to be careful for what you wish for.

So far we have seen 5 months of mining being cash flow neutral.
And steel in a high demand period with price increases announced in amongst costly rationalisation and cost cutting.

My wish is to see Moly-Cop kept for that means my shares will still have ongoing growth and increased value
The alternative is not very nice to contemplate.

DYOR+DYODD Managements decision to value its asset portfolio is what one would expect when faced with a sub $40 IO price on existing contracts.The prospect of outward cash flow of $10 a ton.$90m of IO restructuring costs and some steel divisions with little chance of returning cash.
SINCE THEN
The IO market is holding its own.Steel for construction is booming and ARC furnaces are reaping greater cost reductions than the steel price has falling by on just under 900kt of its 2mt production.
IO generating around $10AU a ton due to restructure.Loss making steel outlets shed.
RAW Steel ex Whyalla 1.1 mt cost down $32 a ton ($35?m pellet stream plant upgrades +50 recent redundancies) before another $100m cost reductions due-another $90 a ton.whether that includes the reheat furnace or that is another $35m? I can not remember.
That $100m was on top of the $60m previously announced which equates to a $50 a ton on Whyalla production.

If I am not wrong then Whyalla steel costs will effectively drop nearly $200 a ton meeting the import price challenge head on,onthe majority of ARI's steel production.