The difference between now and the first time was which government was in power at the time. The liberals don’t care about manufacturing in this country.
The Playford agreement prevents the steelworks being shut down and the mines from continuing operation, the two go hand in hand. There’s a lot of money to be made from the mines, it just requires capital to expand the operations. As for the steelworks there is money to be made from rail, anyone who thinks not has absolutely zero idea what they are talking about.
When you own both ends of the business chain you can make your books look however you want with regards to the steelworks financials, so take the unprofitable status with a grain of salt.
When Arrium went bust the price of iron ore was at $40/T which was below the total cost to the ship. Peculiar knob cost far more than the MBR operations did and the debt taken on to fund it also strangled the business. Now the price of iron ore is $107/T.
If Bluescope were able to buy the Whyalla operations and the governments funding pays for a new mill and the electric arc furnace, all bluescope would need to do is expand the mines and make absolute bank. This of course is all my opinion but I will certainly look at buying into bluescope if they swindle this one for a song.
BSL Price at posting:
$24.26 Sentiment: None Disclosure: Not Held
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