In little over 18 months, ArcelorMittal SA‘s share price rocketed from 35c to the current R8.85. That makes the stock a “25-bagger”, an incredible rarity in a world where the investment world’s “10-baggers” are the equivalent of discovering a unicorn.
There’s been a lot of attention on the steelmaker which last week reported a staggering R9bn profit turnaround in the year to end December. I’ve been among a legion of critics, repeating the popular narrative that ArcelorMittal’s success was largely due to its lobbying skills – and, more directly, steel price-inflating import duties.
After half an hour yesterday with CEO Kobus Verster, I was delighted to discover there’s a lot more to this story. It’s a tale of perseverance and focus under the guidance of an industry veteran brought back into the fold after a spell outside the business. Plus unstinting support of a long-suffering multinational parent who carried R20bn in losses since 2010.
It’s personal, too. The company has a disproportionate impact on my boyhood home of Newcastle, which houses one of AMSA’s two major plants (the other is in equally vulnerable Vanderbijlpark). Eavesdrop on our conversation here: https://open.spotify.com/episode/2UNDfjP2u3uESYcKzpbw37
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