ARI 0.00% 2.2¢ a.c.n. 004 410 833 limited

CEO's address at AGM, page 13/76

  1. 1,473 Posts.
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    Excuse me if I'm curt but I believe we have a situation here.

    A couple of things about ARI.

    1. they are not currently losing kanga on iron ore unless there is some new information that the market is not aware of as the CEO pointed out at the AGM (I didn't attend but I did hear their rolls had a lot of butter on them, maybe they are into palio) that "Our average total cash delivered to China...excluding capitalised costs was also lower at $68.40"

    Let me qualify this by saying I am not the full bottle on "capitalised costs" as the CEO prefaced this with the words excluding capitalised costs, so can anyone explain what they might be.

    2. In relation to the Australian steel business, for everyone's benefit ARI are the only listed company in Australia able to make reinforcing bar and flat bars etc. I don't care what anyone says, when they purchased the Smorgan Steel business this made them the only listed maker.

    My point is that the Australian steel operations far from being an albatross around their neck are actually a pretty valuable business at a time when the inputs for this style of business are on the up and up. Lower AUD, infrastructure spending on the horizon as pointed out previously.

    3. Thirdly, we know the value of the Moly Cop business as they showed in their recent presentation. They paid 10x for it and all that and they could easily command that in this market according to various reports, not that it would be for sale anyway.

    4. Lastly, their is a dumping case raised, now I have been vocal about this but my logic is that from a political perspective something should be done and it is not going to cost the govt anything in a pure monetary sense unlike say giving money to the car makers and as investors in the company we need/should be writing to our local members about the impact on people here. We must all know or have read of people losing their jobs in the manufacturing industry, well if you own shares in this company part of the reason for poor performance of late is that steel is being dumped in Australia and if you want jobs for your kids and this company to make you some money them I implore you to write to your local member about the decline of manufacturing in this country and that producing steel is a necessity, just say I don't want to live in a country that can't make its own steel for the slab in my house or retaining wall or apartment.

    Happy hunting, don't forget the market is 6 months forward looking.
 
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