BlueScope Steel (BSL) is a steel manufacturing and distribution company with assets in Australia, New Zealand, Asia and North America.

ASX Code

BSL

Share Price

Market Valuation

$X.Xm

THE ACTIVIST CAMPAIGN

Sandon Capital believed BlueScope Steel was the cheapest steel company in the world and published a presentation outlining this investment thesis. Sandon also put five questions to BlueScope for consideration.

BlueScope announced that they expect to achieve more than $200m in operational savings at Port Kembla.

BlueScope announced the acquisition of Cargill’s 50% share of North Star BlueScope Steel LLC for US$720m.

BlueScope announced it expected December half EBIT of $230m, well above prior guidance ($180m) and the prior corresponding period ($171m).

BlueScope announced it expected 2HFY16 EBIT to be up to 60% higher than 2HFY15 EBIT ($131m).

BlueScope announced it expected 2HFY16 EBIT to be 30% higher than its previous guidance ($209m).

BSL announced that it expected 2HFY16 EBIT to be $340m, more than 25% above the guidance for $270m provided only six weeks earlier.  The company also announced that it expects net debt at 30 June to be reduced by almost $600m from that reported at 31 December 2015. This continues the steady stream of good news from the company since we went public with our presentation in June 2015.

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