Business Description:
OneSteel Ltd (OST) is an integrated miner, global manufacturer, distributor and recycler of metals and steel related products. OST also operates nearly 50 facilities overseas, with the majority of these including manufacturing and recycling sites in New Zealand and Asia. Additional facilities in USA include grinding media, LiteSteelTM Technologies and recycling operating activities.

Strategy Analysis:
OST continues to focus on cash generation and improving returns while investing for growth. Operations are vertically integrated with a focus on cost control, cash generation, improving working capital management and improving business performance. Project Magnet commercialised OST's magnetite reserves for producing steel and allows sale of excess hematite ore to global markets. OST is heavily leveraged to Chinese growth via its iron ore business and competes to an extent in the global export market with Chinese steel makers. OST upped exposure to the mining sector and mining consumables production with the acquisition of Moly-Cop and Alta Steel in 2011. OneSteel reported NPAT down 11% to $230.3m for the year ended 30 June 2011. Revenues from ordinary activities were $7.13bn, up 15% from last year. Diluted EPS was 17.33 cents compared to 19.51 cents last year. Net operating cash flow was $463.1m compared to $602.1m last year. The final dividend declared was 4 cents, taking the full year dividend to 10 cents compared with 11 cents last year. In the Company's international markets, the short term outlook remains positive for steel making raw materials and mining consumables. In the Company's Iron Ore and Recycling segments the supply/demand balance is expected to keep prices high compared to historical standards, but with continued volatility. Production and operating levels are expected to be relatively flat for the first half of FY 2012.