New Mining Company Arises
One Steel, one of Australia’s fully integrated, global manufacturer and distributor of steel and finished steel products, which both self – sufficient in iron ore and scrap metal, has posted a 12 percent increase of its full-year profit and it is solely driven by its first top of the line product, the iron ore through exports.
Reports says that it is now producing enough ore to increase its own steel making operations, which was used for exporting products and steels to China, although the demand for its steel products are quietly subdued.
From their $230 million dollars earnings from last year, it is said that One Steel has created an after – tax profit of around $258 million dollars. While it reduced its net debt from an outstanding $1.22 billion to $964 million, the net profit after tax of $241 million was in line with guidance provided by the company in February and May.
The demand was later then smoothly tracking until Europe’s debt crisis boiled over and the Federal Government’s resources tax was announced in the June quarter says One Steel’s chief executive Geoff Plummer.
“We saw resources investment significantly impacted by the RSPT, or the MRRT, whichever version you like to call it, but saw that impact not just directly in terms of mining investment but in regional Australia related to mining, we saw a pause on investments in those markets,” he said.
If the company will pay a final dividend of 6 cent per share, it will bring the total annual dividend to 11 cents, which increases up to 10 percent on last year.
