Sims Metal Announces Investor Strategy Day Presentation

  • Apr 08, 2019 AEST
  • Team Kalkine
Sims Metal Announces Investor Strategy Day Presentation

Sims Metal Management Limited (ASX: SGM) is one of the world’s leading metal recycler, which operates in diverse geographies such as the United States, Australasia, and the United Kingdom.

Sims presented its Investor Strategy Day presentation on 8th April 2019. As per the presentation, the company operates more than 250 facilities across 18 countries. It recycles 430k tonnes of non-ferrous and 9.4 million tonnes of ferrous metals.

The company’s strategy is to broaden its participation in the environmental sector, through an array of business which aligns with the company’s objective. The objective of the company is to create long-term value by providing secure, and sustainable management of resources within the circular economy.

As per the presentation, the array of core business, which the company wants to grow and expand into adjacent markets include the following:

Sims Metals: The theme of the company operating in the segment is to consolidate the USA metals recycling industry and continue to play to its strengths in the export market with heightened flexibility. As per the company, its engineering and technology expertise provide the company with a competitive advantage, as it creates better quality materials, to meet the customers’ demand for high-quality materials.

Sims Waste to Energy: The objective of the business is to utilise shredding waste to create a new revenue stream and reduce costs. The company is encountering increasing cost of waste disposal and an increase in energy prices. The company has managed to reduce waste disposals, as well as energy costs.

Sims holds a competitive advantage as it gets 1.3 million tonnes of shredding waste per year, and shredding waste contains high energy (~16 megajoules/kg). Out of 1.3 million tonnes, 1.0 million tonnes come from plants that produce viable Automotive Shred Residue (ASR), and the company’s Waste-to-energy (WtE) facilities convert the viable shredding waste into 1,100 GWh per year.

As per the company, the WtE would remove 75% of the waste cost, which is at $103 million per annum

Sims Energy: The objective of the business is to expand the proven business model and technology globally. The company holds more than 20 sites across Australia, which produces almost 60MW of energy.

Sims Municipal Recycling: The objective of the business is to develop waste management solutions for mega cities, and the company is servicing largest US city since 2003 with an estimated population of 8.6 million. The company has operations in cities like New York, New Jersey and Chicago. The business further aims to grow municipal and private existing recycling contracts.

Sims E-Recycling: The objective of the business is to drive profitable growth through product stewardship and service for large corporate clients. The company has well established online resale channels with global footprints which aligns with cloud server centres.

Target Measures:

The company is targeting a minimum of 15% return on growth projects requiring capital. The objective of the company is to further expand ferrous volumes in favourable geographies from 4,700k tonnes in FY18 to 5,800k tonnes in FY22 and then to 6,500k tonnes in FY25.

Sims aims to grow its non-ferrous business from 140k tonnes retail volume noticed in FY18 to 300k tonnes in FY25. The SGM recently posted its half-year FY19 results.

Also, the company wants to expand its waste to energy capacity to 290k tonnes of ASR by FY25.

The overall business of the company favourably bonds with the environmental concerns, which as per the prevailing economic conditions is among the top most concern of major economies, who are shifting towards zero-emission economies in line with Euro-6 standards.

The stock of the company closed the day’s session at A$11.410 (as on 8th April 2019), down by 2.728% as compared to its previous day’s closing price.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK