re: Ann: Confidence in Gladstone Steel Plant ... BlueScope's...

re: Ann: Confidence in Gladstone Steel Plant ... BlueScope's problem is that they didnt invest in raw materials (despite talking about it for many years).

Currently, BGD are in the same boat. This project makes no sense without upstream investment.

Even if they secure raw materials now (through the deep pockets of their Chinese partners), there's a risk that they'll be buying at the top of the commodity price cycle.

I'm not expecting much change in the SP even if they close a deal. In current market conditions, the market will be concerned about risks associated with building the plant. Only when the project is complete and they're generating cash flow will you see a re-rating of the SP based on cash flow, IMO.