KME - Sarria Daily Comments

The reshuffling of assets and refocusing of the KME business continues. The €20m of proceeds from the sale and payment for inventory on disposal of the Wires business will give KME more breathing space liquidity-wise. The copper price is still above $9,500 per tonne so unless KME can shift that financing cost onto its customers, it will continue to struggle to support the volumes necessary to remain profitable. KME no longer saw the wires business as core. The Wires business was originally acquired as part of the purchase of Mansfeld business. The purchaser is Elcowire Group AB of Sweden. We remain short of the SSNs for 5% of NAV.