It's finally started. 5% wholesale price increase across the board from Sept. Annualized on FY13 result of 3500m sales. $175M annualized shift in income accepting not all sales are wholesale or come from Australian business units. In addition export sales probably achieving closer to the 15% shift in exchange rate from last year on a trailing basis as mostly priced in $US.
takes potential FY14 results if annualized at only a 5% increase sales +175m plus Ebitda FY13 76+175m = $250m Ebit (43m)+175m=====$130m before abnormals if restructuring(staff reduction costs stay the same as last year)
"Potential for FURTHER PRICE INCREASES with sustained lower dollar" P19
Plus the blast furnace is planned to make 1.2MTPA instead of last years 1.1MTPA no doubt altering the cost per ton basis a little downward.Reduced coal prices add to that cost reduction further.
DYOR+DYODD $2 coming plus IMHO.Looking forward to developments. Makes a discounted to nil steel business worth 10x after tax profits or $1BN and an earner to be reflected in the effect on share price debt reduction and divvies soon.
15% would of course add up to----I'll let you do the figures
ARI Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
