Cronimet says recycling is key to sustainability

According to Australia-based Sims Ltd., in its 2022 financial year, which ended on June 30, 2022, the company saw its revenue increase by more than 56% compared to the previous year, while that its underlying earnings per share (EPS) increased by 104.5%. .

“Fiscal 2022 was a very good year,” says Group CEO and Managing Director Alistair Field. “I am proud that we achieved the strongest underlying EBIT [earnings before interest and taxes] result on record and significant increases in margin and trading volume and significant increases in margin and trading volume.

Field continued, “We have made significant progress in our business strategy: we have successfully completed several strategic acquisitions, continued to deploy enhancement technologies in ferrous and non-ferrous metals, and opened new power stations in the sector. metals. In Sims Lifecycle Services (SLS), we launched new service offerings and invested in engineering and technology to continue to drive innovation and build the ability to rapidly expand operations when supply chain challenges arise. supplies are dwindling.

In its press release announcing its earnings and in slides accompanying an investor presentation, Sims executives highlight what they call “enhanced safety measures” and “strong progress” toward sustainability goals over the course of the year. exercise recently completed.

On the operations side, the company says its acquisitions of Pennsylvania-based Alumisource and Maryland-based Atlantic Recycling Group are new volume contributors going forward. In Australia, the company is undertaking a deep-sea port facility project in Brisbane which it says will feature “best-in-class design for crusher processing”.

In the US, Sims also points out that its partnership with California-based SA Recycling has contributed to “record EBIT growth with a significant increase in gross margin and growth in sales volume”. Referring to shredded metal markets, the company adds, “Margins were further improved by higher selling prices for zorba.” He also points to SA Recycling’s acquisition activity, saying it has “continued to create value through successful M&A integration.”

In its SLS business unit, the company says a recent global market share study showed that SLS is not at 3.2% market share, more than double its 1.5 status. % in 2019.

With regard to the 2023 financial year, currently in progress, Sims Ltd. states in his presentation: “Softer economic conditions have had an impact on our short-term markets. The company adds, “We remain very confident in the medium to long-term fundamentals of the business.”

On the ferrous market, the company writes, “Ferrous prices peaked at around US$700 per metric ton in March 2022, but then fell to trade between US$320 and US$400 per metric ton at the start of the year. financial year 2023.”

Company executives conclude regarding the next 12 months: “Fiscal 2023 results will depend on how quickly and how strongly global markets recover from the slowdown induced by rising interest rates.”