ARI (Arrium) : At Rock bottom, ore not?

[Daytr]

PSE, so how is an outcome that you agree possible hysterical? If its possible & I would say plausible, then its certainly not hysterical.
The banks will be paid first no matter what the outcome as they should as they have security.
They will try & keep the entity alive for as long as possible to retrieve as much debt as possible like selling assets as they have.

Snoop, USD50/ton cash costs may keep them alive & may not. These are cash costs not total costs, where as the sell price is the full revenue.
The July contract for FE CFR is $57/ton the 12 month price is $49/ton.
Competitors prices do matter as they can keep producing more FE and still make money & the competitors have cash costs in the USD30 per ton.

Just because they are maintaining a plant & spending money on it doesn't mean its not archaic.
The fact is the likes of mills in China have scale that Arrium just can't compete with.

In regards a buyer, the debt is a massive hurdle. The Chinese I wouldn't think would have any interest in the steel making & the iron ore is probably too small for them to bother with. You are right there could be sales, but this might be to satisfy bank debt like they have done with part of the consumable business. Lets just say you are right & there is a white knight? Who do you think are the likely candidates to do a takeover?

I have no axe to grind here, however I think there is still immense risk with this stock & with that if they prove they can make it then is upside.
I'm just querying if they can make it.