Indeed - of Molycop is sold via an IPO and they get A$2 Billion in cash with A$200 million of debt attacjed to it - quite low given EBIT in 2015/2016 will be around A$270 million, the rest of Arrium should be given back to the board to manage ob behalf of shareholders - minus some dickheads on the board (Davis, Nankervis, Warnock, Elder and Roberts).
The rest of Arrium now owes around $600 million ($2.8 Billion of gross debt minus the $2.20 Billion for spinning off Molycop). If EBIT is around $260 Million for 2016/2017 and the banks are flexible, it should recommence trading without a recap. Watch it come back on the market in November at 6 to 8 cents.
And if Nick Xenophon can extract more from the Libs. (who should be more forthcoming given they signed the FTA with China which did not help Arrium due to dumping - they only put the tariffs in place when it was a few weeks away from VA) then things are looking even better for shareholders.
SA Government giving A$50 million, the Libs now to match what Shorten was offering (A$50 million in cash plus another A$50 million loan) and the rest of Arrium could indeed be very valuable - who knows, he may even scure a little more money to deepen the Whyalla Port by Dredging thereby allowing more and larger cape size ships to enter to export the Iron Ore and import the Coal for the steelworks) This would also be of benefit to the entire region for those wanting to export goods out of that port.
What a pity the previous dumb directors on the Arrium Board from 2009 onwards did not allocate capital in such an efficient manner instead of buying WPG which sank the company. Enjoy your retirement directors of Arrium's board - both previous and current - just don't go anywhere near a public company again.
