We Intend to Temporarily Cease Coverage on Sims Metal Management

Sims’ strategy positions the company for growth in an increasingly circular economy, where waste of resources is being progressively minimised. The strategy will see the company retain metals recycling at its core. To this end, Sims seeks to grow its ferrous volumes by 50% and double its non-ferrous volumes in North America over the coming five years. But the strategy also seeks to broaden the scope of Sims, both within its existing e-recycling franchise and further afield in renewable energy. Eyeing the substantial investment in data storage centres, also known as "the cloud," Sims aims to become a leader in cloud hardware recycling with a goal to take 10% market share in depreciated hardware recycling for Infrastructure as a Service providers such as Microsoft and Amazon Web Services. Sims also seeks to become a renewable energy player, leveraging the expertise of its joint venture partner, LMS energy, in landfill energy generation. Further, net energy generation will flow from Sims’ waste-to-energy, or WTE, program which will capture its currently landfilled, non-metallic shredding waste from its metals business, known as ASRs, and utilise this waste to produce energy via gasification technology. The strategy will see Sims invest in seven plants within the next 10 years. The strategy will reduce landfill costs and move Sims toward being a net electricity generator over the long term.