The secret in playing Chess,is to know how the endgame is likely to play out.
Sometimes your opponent need you NOT to have a horse to be able to execute their strategy.
Unfortunately for them ARI has taken the wind out of a few challengers,including WPG's sails and them building a competing ore export port on ARI's headlands,with out asking,by buying their plans and operation outright and saying their port is NOW open for 3rd party handling to stop any future bidders gaining Govt approval,trying a similar lark.
Unfortunately for the bidders who attempted their low ball takeover offer ARI has done its IO expansion and consolidated its growth in the Mining Consumables industry.Yes,it knows the new boat loader can easily handle 20MTPA,without deepening the channel. IMHO.
Noble would have wanted the infrastructure and Port,with its spare moorings/berths(used
to have six).
Posco the mining consumables (fairly cyclic demand resistant market with comfortable margins),the rest is well, timed at towards the end of its life cycle and still can make money for many years yet.
ARI's got rid of its flat sheet business and the vagaries of the domestic manufacturing business demand, sticking with large project steel where specification.reliability and quality are important to buyers.
It just seems to me the ARI Game Board is slowly being cleared. The playing field of opposing pawns and low hanging fruit by ARI and although bidders could still win with only a King and Two Castles,its a bit harder against a player fielding a full team all intact.
DYOR+DYODD ARI stronger than its been for years,all the old infrastructure which was past its use by dates(trains/wagons/boat loader/track/train un-loader/sheds- have been replaced or added to and upgraded thanks to the latest IO boom and the ability to clear some old lower grade stockpiles at a premium by blending and its costs are on a newer downward spiral.
ARI can afford IO to only make 8-10% on sales,just like the Mining Consumables business,or even break even on a cash basis for just a few years as long as The Consumable business continues as it has been.
ARI Price at posting:
88.5¢ Sentiment: None Disclosure: Held
