Investment insight: Arcelor Mittal shaping up as perfect geared bet for promised SA economic rebound after 2024

Loading player...
After enjoying a sustained run recently, steelmaker Arcelor Mittal's share price fell 12.5% on the release of interim results today. CEO Kobus Verster says the pullback was largely because of anticipation among investors that the company's turnaorund would be capped by a return to dividend payments. Verster explains in this in-depth interview that there is still repairing to be done on a balance sheet which was smashed by the Covid lockdowns. Also, with fresh investing opportunities earmarked to achieve independence in power and transport, there are other urgent calls on the company's resources. The good news in the halfyear results to end June, released today, is a continuation of the bottom line turnaround (headline earnings up 22% to R3bn; debt down 61% to R1bn) after huge challenges were overcome at the production level. Verster also shared with Biznews.com's Alec Hogg that the business is highly geared to benefit from any future improvement in the SA economy's rate of growth - something that's becoming real possibility following a probable change in government after the 2024 National Elections. Learn more about your ad choices. Visit megaphone.fm/adchoices
28 Jul 2022 9AM English South Africa Investing · Business News

Other recent episodes

Dr Kelvin Kemm: How “secure” is SA’s enriched uranium?

There are growing fears that nuclear weapons could be used in the Iran war. That has brought renewed focus on that 2007 attempted armed robbery at South Africa's nuclear research site, Pelindaba, and the “security” of the country’s large, high-quality enriched uranium stock. Chris Steyn asks Dr. Kelvin Kemm, a…
23 Mar 10AM 21 min

Helen Zille at BNC#8: “Johannesburg is collapsing like Rome” — a do-or-die warning for South Africa

Helen Zille delivered a hard-hitting BNC#8 address, drawing stark parallels between ancient Rome’s collapse and Johannesburg’s deepening crisis. She warns of failing infrastructure, entrenched corruption, and political fragmentation, arguing that only decisive governance and voter action can reverse decline. Her message is clear: Johannesburg stands at a do-or-die moment, and…
23 Mar 6AM 28 min