Alumina Ltd
AWC: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$1.24 | Whs | Rrwmtdgjv |
Price Improvement for Alumina Lifts First-Quarter Margins From a Low Bar
Business Strategy and Outlook
Alumina's sole asset is a 40% stake in Alcoa World Alumina and Chemicals, the world's largest alumina producer. Alcoa owns 60% and is the manager of the joint venture. AWAC primarily operates across the first two stages in the aluminium production chain: bauxite mining and alumina refining. AWAC's refineries are, on average, just inside the lowest quartile of the cost curve. Australian refineries constitute slightly more than 50% of the company’s alumina capacity and have gas contracts with the North-West Shelf. An agreement in 2015 secured gas for the majority of Australian production until 2032.