Sims has increased its interim dividend by 40 per cent to 14 Australian cents per share, even as the metal recycling company reported a net loss for the first half of the financial year. The company posted a net loss of $29.9 million, a significant downturn compared to the $30.8 million profit recorded during the same period last year. Sims is a global leader in metal recycling, processing ferrous and non-ferrous metals from end-of-life products and manufacturing scrap, transforming them into valuable resources. The company also focuses on e-recycling and municipal waste management.
Management has attributed the financial downturn to losses incurred on derivative contracts, as well as a credit loss associated with its UK-based business, Unimetals. Despite these challenges impacting the company’s profitability, Sims remains committed to delivering value to its shareholders through increased dividend payouts.
Group chief executive Stephen Mikkelsen expressed optimism regarding the company’s future performance, particularly highlighting the role of technology. Mikkelsen noted that the industry shift towards high-end artificial intelligence chips is tightening the supply of older hardware. This is creating a favourable market for recycled components across the automotive and consumer sectors.
Mikkelsen stated that the “AI-driven migration to DDR5 chips is constraining DDR4 chip supply, while legacy demand remains resilient across hyperscaler, automotive and consumer applications.” He added that this structural imbalance is expected to continue supporting secondary-market pricing, suggesting potential future benefits for Sims in the evolving technology landscape.
