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Alumina Ltd AWC

Morningstar Rating
A$1.69 +0.02 (0.90%)
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Company Report

Price Improvement for Alumina Lifts First-Quarter Margins From a Low Bar

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.

Price vs Fair Value

AWC is trading at a 162% premium.
Price
A$1.69
Fair Value
A$4.41
Uncertainty
Medium
1-Star Price
A$9.76
5-Star Price
A$6.34
Economic Moat
Wwzyp
Capital Allocation
Wkczyffkg

Bulls Say, Bears Say

Bulls

Alumina is a beneficiary of continued global economic growth and increased demand for aluminium via electrification of transport.

Bears

Aluminium is abundant. Barriers to entry in bauxite mining are low, and China's alumina production is willing to behave irrationally.

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News

Trading Information

Previous Close Price
A$1.68
Day Range
A$1.681.74
52-Week Range
A$0.691.91
Bid/Ask
A$1.67 / A$1.70
Market Cap
A$4.90 Bil
Volume/Avg
14.9 Mil / 12.0 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
6,521.17
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Alumina Limited is a forwarding office for Alcoa World Alumina and Chemicals' distributions. Its profit is a 40% equity share of AWAC profit, less head office and interest expenses. Its cash flow consists of AWAC distributions. AWAC investments include substantial global bauxite reserves and alumina refining operations. Declining capital and operating costs and a lack of supply discipline from China are likely to result in competitive pressures, but Alumina's position in the lowest quartile of the industry cost curve is defensive.
Sector
Basic Materials
Industry
Aluminum
Stock Style Box
Mid Core
Total Number of Employees
13

Competitors

Valuation

Metric
AWC
RIO
Price/Earnings (Normalized)
10.96
Price/Book Value
2.332.41
Price/Sales
6,521.172.38
Price/Cash Flow
4,654.117.79
Price/Earnings
AWC
RIO

Financial Strength

Metric
AWC
RIO
Quick Ratio
0.471.04
Current Ratio
1.141.69
Interest Coverage
−6.588.04
Quick Ratio
AWC
RIO

Profitability

Metric
AWC
RIO
Return on Assets (Normalized)
−5.35%11.84%
Return on Equity (Normalized)
−6.12%22.48%
Return on Invested Capital (Normalized)
−4.21%19.38%
Return on Assets
AWC
RIO
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Aluminum Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Aluminum Corp of China Ltd Class H
ALMMF
Fplj$16.6 Bil
China Hongqiao Group Ltd ADR
CHHQY
Ndg$14.8 Bil
China Hongqiao Group Ltd
CHHQF
Zcfs$14.8 Bil
Norsk Hydro ASA ADR
NHYDY
Kcgz$12.3 Bil
Norsk Hydro ASA
NHYKF
Tltm$12.3 Bil
Alcoa Corp
AA
SmxmrlxzSzgy$7.3 Bil
Alumina Ltd ADR
AWCMY
LtwbjbjvKddqd$3.2 Bil
Alumina Ltd
AWCMF
Stg$3.2 Bil
Constellium SE Class A
CSTM
Plcd$2.9 Bil
Century Aluminum Co
CENX
WhyDwyc$1.5 Bil

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