SGM

From #535:

Cameron  35:25

There def­i­nite­ly are. All right, let’s get into Q&A. First one is from Tim: “pos­si­ble ques­tion for TK. Is SGM less impact­ed by the iron ore price than the iron ore min­ers because it is both a buy­er and a sell­er of iron? If it is less impact­ed, should we take less notice of the iron ore price graph when mak­ing buy and sell deci­sions?”

 

Tony  35:49

Yeah, good ques­tion, Tim. So, it’s almost remind­ing me of Capral Alu­mini­um which is the same sort of deal. But I thought the eas­i­est way to answer this is to go into Stock Doc­tor and graph SGM and then over­lay it with the iron ore price. There’s a high cor­re­la­tion between both; not quite one to one, but the cor­re­la­tion is pret­ty clear if you have a look at it.

 

Cameron  36:11

So, we talked about these guys last week. Scrap met­al recy­cler, and you said the graph is turkey scrap 80/20.

 

Tony  36:19

Cor­rect, yeah. Which gen­er­al­ly, again, fol­lows the iron ore graph. It’s just at a cheap­er price point.