Sims Acquires Land with Deep Water Port Access in Brisbane
19 May 2022
Sims Limited (“Sims” or “The Company”) is pleased to announce the acquisition and settlement of a ~140,000m2 strategic parcel of land located at Pinkenba, QLD (Brisbane) for a total consideration of AUD$88.0 million, plus approximately AUD$5 million for stamp duty.The site is one of only a handful of private deep-water berths in Brisbane, capable of berthing Handymax vessels up to 50,000 tonne displacement. Its unique position offers the rare long-term potential to create a best-in-class and lowest cost metals processing and resource renewal facility, producing high-quality ferrous and non-ferrous metals, with on-site waste treatment and hydrogen generation.
Near-term, the land will be utilised as a deep-water facility for domestic and export customers, with a limited amount of capital spend required to prepare the facility. Longer-term, Sims will continue to develop the business plans for potential full-scale operations on the site. Direct shipments from the facility are anticipated in FY23, with net benefits through additional revenues and cost savings producing returns greater than Sims cost of capital on the total investment.
While plans are yet to be finalised and following appropriate consultation with the community and Queensland Government, future land development will be based on a stage-gate approach using a capital lite, scalable model, allowing for excess land divestment at any stage.
Alistair Field, CEO and Managing Director of Sims Limited, commenting on the purchase said, “This transaction is consistent with the Company’s strategy to grow in large coastal markets using top tier processing facilities and bulk export optionality.”
Mr Field added, “It is our intention to fund this land acquisition through recycling surplus and/or underperforming capital. We have already identified several suitable opportunities to realise this intention.”
Authorised for release by: The Company Secretary, Gretchen Johanns.