If you've ever had a care tailgated and its do we fix or do we...

If you've ever had a care tailgated and its do we fix or do we write-off you know why ARI's going thru the motions with Moly-COP.

If other buyers say its worth what ARI show in the books,then many lenders may view a shift of debt to Moly-Cop on its own as a fair and reasonable loan to carry forward at rather low interest rates and not give a hoot about the rest of ARI's income,or its assets,with total interest payments around 1/3 of Moly-Cops growing EBITDA.

Ask yourself if that is good or bad for shareholders and debt renewal?
Opens up a partial or full float option as well.
Naturally if a buyer wants to buy Coca Cola OUTRIGHT as I suspect a few do Moly-COP there will be no buying it cheap if you want it ALL.

It will also allow ARI to show it has asset tested the value of Moly-Cop in the market and This is Market value,instead of the usual historic stuff including goodwill that leave you wondering.
Happened once for a Australasian brewery and their BRAND ended up valued at $700m by the market from memory.

One does have to ask why ARI can continue to pull costs out of steel every year and why it was not all done far sooner.
The answer to that may tie in the retirement of the executive steel this month.
It has been some time that the magnetite stream processing has been running at 600kt below its planned design since inception and it has taken -HOW LONG???? to upgrade and see the departure of 50 employees and to save the Steel business $30m?
Now what lost value of 600kt extra production (labour free) obtained for the last 5yrs would have had to the business and that could have been sold and be in the $80US profit above cost per ton bracket.Call it $US40-50m banked,Plus $AU 150m cash steel could have saved in costs over just 5yrs.e.g. $200m+++
Far more economical than building the second Benificeation plant cost per ton output and with no increase in employees wages.
Amongst all of this is the Metal Centre cleaning out of loss making sites that should have occurred some time ago.
Next will be a proper clean out or close down of all non core businesses held for sale that lose cash,instead of dribbling losses year in year out.

DYOR + DYODD Cash is KING.Stock Turnover the cash generator,yet to be ignited one hopes by increasing demand with leaner stocks and better distribution arrangements.("2 out of 3 aint bad -Meatloaf once sung)Three's far better.