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

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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

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