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

Leon Kluge: The botanist turning South Africa's flowers into gold

Leon Kluge pulled off a hat-trick no South African had managed before: three straight gold medals at the Chelsea Flower Show, the world's most prestigious garden show. But this year's win very nearly didn't happen. Storms and flooding tore through the Western Cape days before the harvest, cutting farmers off…
15 Sep 12PM 42 min

6 bodies found: Killing spree of “serial” rapist…

In this BizNews interview, Chris Steyn and Juanita du Preez, the national spokesperson for Action Society, talk about the killing spree of a suspected serial rapist (or group of rapists) in Ekurhuleni. By yesterday (Monday), five bodies had been found, four in Kempton Park, one in Olifantsfontein, and this morning…
15 Sep 7AM 15 min