The Arrium business just spent $50m on purchasing and installing the new plants, it's not the previous Arrium Board that did it so I assume there is some significant return to the business once up and running. Based on throughput figures quoted the two plants would process 5 million tons a year, the material is stockpiled and sitting there so once processing and shipping costs are taken out it's all profit.
If those costs were $30 a ton at current IO prices the business would be looking at $250m a year profit on that little job alone with Steel and the other 8 million tons of IO to add to the kitty.
Keep in mind though as KordaMentha states, coking coal prices have gone up and that impacts the bottom line although it doesn't appear to have impacted BSL a great deal.
ARI Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
