Report on Sims Metal Management Recycling company in Australia

 Sims metal Management Limited is an Australian based Corporation. The company is one of the world leading publicly listed a Metal Recycling company and the processes carried out in the company includes Metal Recycling, operation of metals, selling, and processing nonferrous and ferrous recycling metals (Simsmm. com, 2019). The operation of Metal Recycling is a geographically diverse operation in the United States, the United Kingdom, and Australia. The process consists of a network of facilities, deep water port access, and an extensive network of ferrous and non-ferrous Metal Recycling process. Metal management purchase ferrous metal from different dealers of metal, auto breakers, peddlers, and demolition firms. While for manufacturing the non ferrous metals undergo different processes such as telecommunication services, production offcuts, and generation of electricity. The goal of the company is to ensure that all the clients are receiving a higher level of customer services provided by Sims metal Management Services (Degraft-Yankson, Evans, Donkor, & Rexford, 2017). The main objective of the present work is to analyses sims metal Management Limited and to have an overview of annual report financial conditions operations prospects earning Outlook and inherent risk associated with forwarding looking statements of the company. All the forward-looking statements provided by the company are involving some issues and have certain types of risk as well as uncertainty. Over aim is to analyses the assumptions and uncertainty of the company provided by forwarding looking statements.

About the company Sims Metal Management Limited

All the services of the company are customized for the generation of net scrape revenues. The services provided by Sims metal Management Limited include accountability and control procedures, weighting program, no-cost weights process, fair market metal prices of scrap ferrous, and Metal Recycling techniques with the value of different materials. Sims metal management is a domiciled corporation of Australia with ADR trading in the United States, share listing at primary level, access to OTC market, and working under Australian security exchange (Smsmm. com, 2019).  The company provide 250 facilities over 20 countries and the highly skilled employees are 4500. On the basis of these, it can be predicted that in future Sims metal management will be a bright company. The focus of the company is to improve continuous Optimization with the internal investment programs, operations, people with setting functions, and a solid part of development. The two major facilities of Sims metal management include sims simple recycling solutions and sims Municipal recycling (Simsmm. com, 2019).

Forward-looking statements of Sims metal Management Limited

There are certain factors considered in forward-looking statements and these factors are listed below.

1.      Impact of global economic conditions and the global financial crisis on the growth of the company.

2.      Advertising variation in political policies and economic policies of Australia (Simsmm. com, 2019).

3.      The voluntary and cycling process used in the Steel industries and Metal Recycling

4.      Experience of variation in current currency rates and interest rate.

5.      Availability for the adequate sources related to water supply and risk associated with the implementation of state of the art technology in the company (Annual reports. com, 2019).

6.      Potential identification of intangible and financial assets of the company.

7.      The significant influence of shareholders and transactions.

8.      The risk associated with Global operations, terrorism, Environment protection, noncompliance with United States foreign corrupt practices.

9.      Inner status and loss for the foreign private client of the company.

10.  The risk associated with shareholder, governors complies protection policies, an occurrence of an anticipated events are used in the questioner statements provided by the company in the annual report (Degraft-Yankson, Evans, Donkor, & Rexford, 2017).

Selected financial data of Sims Metal Management Recycling company in Australia

The present report contains financial statements of Sims metal Management Corporation in accordance with the International accounting standards board (IASB) and International financial reporting standards (IFRS). According to that annual reports provided by the company, the metal management was at the top for fiscal 2008 the financial and operating review and financial and operating reviews and prospective were also included in the annual report consolidated with financial statements of the company (Simsmetalmanagementlimited. gcs-web. com, 2013). The financial statements included in the annual report for 2010 and 2011 are mentioned in table 1.

Table 1: Income statement data (Simsmetalmanagementlimited. gcs-web. com, 2013

According to the periods indicated in table 1, the exchange rate between Australian Dollar and US dollar is different. The information expressed in dollars is associated with the custom processes of Federal Reserve Bank Of New York. The average rate for all the years for the exchange rate is higher. The average rate for a month describes the average daily exchange rate during that particular month. The set forth analysis describes the risk associated with business operation and material delivery of Sims metal Management Corporation (Degraft-Yankson, Evans, Donkor, & Rexford, 2017). The analysis includes the adverse effect of business operation and material adversely affected by the business operation. The impact of the recent global crisis on the company also considered International and government level impact for the customer product, stability of the financial strength, timing, and supplier power. All these factors are adversely affected by the financial condition and operation of the company. The change in political policies and economic policies of Government reduces the overall economic growth of the sims metal management. One of the largest consumers of commodities in the world is China and the financial condition of China is different from others. China is one of the largest consumers of ferrous and nonferrous products (Degraft-Yankson, Evans, Donkor, & Rexford, 2017).

Scrap metal recycling industry in Australia

Sims metal Management Limited is historically involved in the Metal Recycling industry and the process remains highly cyclical and highly competitive for the companies. There are different factors affecting significant fluence on the prices of scrap metal such as rapid demand and supply of metal, high competition, high cyclical product, and fluctuation in prices due to financial condition and operations (Simsmm. com, 2019). The prices of scrap intake and scrap metal are volatile and historically it was cyclical in nature. The consequences of a lingering effect on the financial crisis of business result in encountering mortality in demand and pricing. Different factors are affecting the recovery of inbound volume. The commodity price fluctuation is associated with different factors during the processing of ferrous and nonferrous metals. The annual report of a company exposes the commodity price risk, inventory processing, a resale of metal. The recycling process is a volatile process and with an increase in the price of raw material the competitive conditions becomes limited and price increases for the consumers (Smsmm. com, 2019). While on the other hand in case of decreasing price environment related to the cycling of metal the cost of raw material changes the process. In the case of the new entrant in the market, there is a threat of higher purchase values of the raw material and lower prices for the recycling of metals. It is difficult to hedge the position for certain communities such as recycling of ferrous metal. The Purchase and sale of ferrous steelmaking raw material depend upon the requirement. At any time for the Global Training business, the trading position and global material number can be open.  The market is associated with an adverse impact on the financial and operation conditions (Simsmetalmanagementlimited. gcs-web. com, 2018). The inventory position and scrap metal process are significant for the financial and operational conditions of the company. The prices have an adverse impact on the operation and recycling business associated with an extended period of time can result in a decline in prices. The development of steel industry results in different financial and operating conditions. The scrap metal industry is adversely increasing with the import of raw material from the United States, the United Kingdom, and Australia. The Steel processing in these countries is highly demanded by the consumers and have a positive effect on tariff changes and an increase in the freight cost. The import and export sale of recycling metal is becoming a substitute for different Steel manufacturers. The reduced demand for the metal has a negative impact on the import-export process (Annual reports. com, 2019). The volatility, as well as a description of equity and credit market, is resulting in certain favorable terms. The developing economies have experienced extraordinary volatility, uncertainty and asset erosion. Under the current conditions, the accessibility equity of marketed towards financial operations is increasing with the expansion of the company. The sustainable basis and long-term normalization are considered as a requirement of capital market (Simsmetalmanagementlimited. GCS-web. com, 2018). The capital business required strategic plan and change in legal requirements that are applicable to the commercial lenders. The increase in the cost of borrowing the metal is increasing with funding Corporation under certain conditions. The significant increase in the use of matter substitute by the uses could lead to reducing in the demand of products. During the period of high demand for the recycle ferrous metal the opportunities for producers, substitute products, and industrial-grade are required to be considered. The substitute for recycling-related to metal depends upon the availability of a prepared ferrous metal and substitutes (Annualreports. com, 2019).

Risks and regulations of Sims Metal Management Recycling company in Australia

In case of a highly demanding period of substitute metals and recycled ferrous metals the available supply of metal decreases. After the relative scarcity of recycling different opportunities are provided for the use of recycling and a substitute metal. Due to developing technologies in the world the company is providing significant competition and adverse impact on the financial and operation conditions (Degraft-Yankson, Evans, Donkor, & Rexford, 2017). The profitability of the recycling operation depends upon the availability of resources and scrape flow. The available and prepared ferrous metal is demanded by a substantial number of suppliers. Sometimes due to weak global economic conditions, the slow down production is observed with higher consumer spending and reduced supply of material. Due to reduced post-consumer grade and industrial scrap metal is the market, the lesser recyclable process is considered.  The state of art technology is implemented to downstream the systems and to improve the recovery rate of nonferrous metals (Sibley, 2011).  The adverse material processing is considered for the financial and operating condition. The extensive diversification in industrial operations leads to international conflict, the act of terrorism, internal civil war, and international operations. In circumstances, the international conflicts are implicated with several limitations for the recycling and shipment of metals. The risk associated with the operation, tax competitions, trade regulations, employee benefits, environmental safety, health safety, transportation activities, and international trade are also considered in the present report (Sibley, 2011). Different changes the laws and regulations are interpreted by the company to provide opportunities for shareholders. The laws and regulations implemented in the company are associated with a civil fine, criminal activities, damages, material restrictions, and limitation of business operation at the assessment of material used in the material recycling process. The adverse effect of risk associated with the recycling of materials is based upon the financial and operation conditions (Simsmetalmanagementlimited. gcs-web. com, 2013).

Conclusion on Sims Metal Management Recycling company in Australia

The prime objective of the present report was to identify the operations of Sims metal management for the Metal Recycling, license requirement according to environmental laws and regulations and risk associated with the operation in the company. The present report is based upon an annual report of a company that includes discharge of Material Management, treatment prevention impact, and protection of employee safety and health. The report depends upon the operation and marketing process used by Sims metal management under the material adverse impact on the financial and operational condition. The recycling operation used by Sims metal Management Corporation produces a large amount of metal. The existing facilities are potentially significant for the success of the company.

References of Sims Metal Management Recycling company in Australia

Annualreports. com. (2019). About Sims Metal Management Ltd. Retrieved from www.annualreports.com:

http://www.annualreports.com/Company/Sims-Metal-Management-Ltd

Degraft-Yankson, P., Evans, K., Donkor, E. K., & Rexford, E. (2017). Managing the Scrap Metal Situation in the Sekondi-Takoradi Municipality-

The Artist's Take. Managing the Scrap Metal, 07(07), 1-10.

Sibley, S. F. (2011). Overview of Flow Studies for Recycling Metal Commodities in the United States. Retrieved from pubs.usgs.gov:

https://pubs.usgs.gov/circ/circ1196-AA/pdf/circ1196-AA.pdf

Simsmetalmanagementlimited. gcs-web. com. (2013). Sims Metal Management Limited (Exact name of Registrant as specified in its charter) .

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Simsmetalmanagementlimited. gcs-web. com. (2018). SIMS METAL MANAGEMENT LIMITED. Retrieved from

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Simsmm. com. (2019). building blocks of our business Safety, sustainability, service, levels, and interity. Retrieved from www.simsmm.com: https://www.simsmm.com/

Smsmm. com. (2019). About Us. Retrieved from www.simsmm.com: https://www.simsmm.com/about-us/