Iron Ore price shot up to $60 the last 7 days - and with the AUD at 77c, that's not a bad price for Arrium to deal with. The IO price will likely increase some more with the curbing of supply from BHP/RIO
The lower AUD also supports decent earnings for the consumables and steel businesses, however I believe the debt is in USD, so the lower AUD will balloon the debt.
Either way, 17c for this stock is cheap in my mind, it will likely trade between 20 - 40c in the next 12 months.
Also need to note the management remuneration is high. Board members are earning $200k - that's up there with ASX 50 club - which Arrium is sadly not a part of any longer. They need to take some steps to rationalise managerial wages to build confidence in the business.
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