ArcelorMittala completes its fifth share buyback program – 12/29/2021 at 2:36 PM
(AOF) – It’s done. ArcelorMittal completed its fifth share buyback program announced on November 17. This program was authorized by the annual general meeting of shareholders on June 8, 2021. At market close on December 28, 2021, the steelmaker had bought back 34.1 million shares for a total value of 885.7 million d ‘euros. The average acquisition price was 25.99 euros per share.
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– Steelmaker 1
global in terms of the size of its portfolio, from iron mines to processing plants born from the merger in 2007 of the French Arcelor and the Indian Mittal Steel;
– Turnover of 53.3 billion;
– Activity divided into 5 segments, flat steels for 62%, long steels for 19%, tubes for 2% and mines and other products;
– Business model capitalizing on the 4 strengths of the group: a decentralized structure, active portfolio management, financial strength and integration of the mining value chain (from supplies to final products);
– Capital controlled at 37.41% by the Mittal family, Aditya Mittal, son of the founder taking over the management of the group, Lakshmi Mittal retaining the chairmanship of the 9-member board;
– Solid financial position with net debt reduced to $ 3.9 billion in net debt at the end of September 2021, the lowest level since the merger.
– Growth strategy focused on emerging markets – projects in Mexico, Brazil and Liberia – accompanied by structural cost reductions of $ 1 billion by the end of 2022;
– Innovation strategy supported by 12 R&D centers and $ 245 million in funding: focused on 6 objectives, maintaining competitiveness, a niche steel offer (excluding transport), capitalization of the Steligence or S- platform in Motion for the automotive market, the standardization of industrial processes, the deployment of digitalization via the Arthur and Dahiell platforms and external growth in the digital economy / in the service of environmental protection: expertise in the analysis of product cycle or LCA, reduction of carbon emissions by industrial sites (cold electrolysis, partnerships –Institut Bauen und Umwell, SOVAMAT, CIRAIG…) / IS initiative open to researchers on sustainable development;
– Proactive environmental strategy led at the highest level by the ARGGS committee: 25% reduction in carbon emissions -35% in Europe- by 2030, via € 10 billion in investments, and total neutrality in Europe in 2050 via the Xcarb program green steel offer, new initiatives on Canadian sites for an investment of Can $ 2 billion, deployment of the “Responsible Steel” standard on industrial and mining sites;
– Progress of industrial projects in India, Liberia and Brazil.
Metals engaged in a “supercycle”
Several experts use this term to refer to the progression of the courses in the years to come. Copper and aluminum, which play a central role in decarbonisation policies, present significant investment needs. Copper production is expected to decline in 2023 if new mines are not explored.
Achieving the objectives of the Paris climate agreement will lead to a six-fold increase in the demand for minerals by 2040. However, the International Energy Agency (IEA) estimates that the limited supply of critical minerals such as that lithium or nickel threaten the energy transition. The investment period is long because more than sixteen years on average are necessary between the discovery and the first production of a mining project.