市场见解

Why the Sims (ASX:SGM) share price edged higher today

The Sims Ltd (ASX: SGM) share price edged higher today following a positive update regarding an acquisition. Here’s the details.
The post Why the Sims (ASX:SGM) share price edged higher today appeared first on The Motley Fool Australia. –

increasing asx share price represented by model construction workers working on increasing pile of coins

Sims Ltd (ASX: SGM) shares edged higher today following news of the company’s acquisition of certain assets from Alumisource Corporation. By the market’s close, the Sims share price was up 1.13% to $12.55.

Based in Pennsylvania, Alumisource provides specialised raw materials in the form of custom shredded and blended aluminium scrap to North American aluminium and steel industries.

What did Sims announce?

The Sims share price was on the move today after the company advised that its recently acquired Alumisource assets were purchased for a guaranteed amount of US$22.5 million. It noted that further payments would follow over the next three to five years using a pre-determined earnout formula.

As a result of the takeover, Sims projects a net increase in its North American metal division’s non-ferrous retail sales volumes. The company revealed that for FY21, it expects an additional 33,000 tonnes to be sold. Sims recorded total non-ferrous retail sales volumes of 140,000 tonnes in FY20.

In addition, Sims stated that Alumisource’s founder and CEO, Gabe Hudock, will continue his role for a three to five-year minimum period. This will ensure a smooth transition and enable the business to focus on safety and sustainability.

Management commentary

Sims CEO and managing director Alistair Field spoke about the acquisition saying:

I’m pleased to achieve this key milestone toward delivering our strategic targets and growing non-ferrous retail volumes in North America. Major aluminium customers in the United States continue to seek product that is suitable for direct charging. Alumisource meets these needs by providing ‘in- spec’ furnace ready product in an automated and safe manner.

Alumisource is an ideal fit with our purpose, [to] create a world without waste to preserve our planet, and our sustainability goals. One tonne of aluminium produced from recycled sources mitigates 7.9 tonnes of carbon emissions compared to aluminium produced from virgin material

…We are committed to a disciplined capital management approach and ensuring that new capital investments fit with our strategy and purpose, as well as meeting minimum hurdle requirements

About the Sims share price

The Sims share price has travelled almost 17% higher over the past 12 months. The company’s shares hit a multi-year low of $5.52 in March 2020, before moving on an upwards trajectory.

At the current Sims share price, the company commands a market capitalisation of around $2.5 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Sims (ASX:SGM) share price edged higher today appeared first on The Motley Fool Australia.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!