Arrium's prudence gives it some breathing space

Arrium's surprise capital raising last year has turned out to be a wise insurance policy, with the miner now able to restructure in a bid to avoid another near-death experience.

When Arrium blindsided the market with a $754 million equity raising last year, its share price was smashed and its board castigated. Without that additional capital, however, the group would now be in absolutely dire straits.

When Arrium ambushed the market with the raising, the iron ore price was above $US80 a tonne. With total cash costs within its iron ore business of around $AS71 per tonne, Arrium had some margin for error, but the margin was slim.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles