Alumina (AWC) is involved in the mining, refining and smelting of aluminium. The company’s primary asset is its 40% interest in Alcoa World Alumina and Chemicals (AWAC).

Together, Alcoa and AWC produce smelter grade alumina feedstock for the production of aluminium, as well as alumina-based chemicals for supply to the alumina chemicals industry.

AWC is listed as a materials stock among the list of sectors on the ASX.

AWC has been one of the top stocks in recent months as rising alumina prices coincide with an industry shift to index based pricing for supply contracts.

On 8 October, AWC received US$41 million in dividends from its AWAC joint venture with US-based, Alcoa.

This follows Alcoa’s third quarter earnings announcement overnight, where a 21% fall in profit was offset by its bullish outlook for aluminium demand.

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Stock Analysis – Alumina (AWC)

Alumina (AWC) is a leading Australian company that invests worldwide in bauxite mining, alumina refining and selected aluminium smelting operations.

In Australian news, AWC has reported a 1H10 net profit of US$44.2 million, swinging from a loss of US$27.9 million a year earlier.

Underlying earnings totalled US$22.2 million, which missed consensus estimates of a $36 million underlying profit.

AWC attributed the profit result to higher sales volumes and prices, in addition to good cost control.

AWC upgraded its alumina demand forecast for 2010, but expects some volatility in pricing due to China managing its supply and demand position.

AWC also declared an interim dividend of 2 US cents per share while its Australian share price fell 0.6% to settle at $1.63 a share yesterday.

For stock analysis on AWC, sign up for a free trial at Australian Stock Report.

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7 May 2010

Alumina (AWC) is a leading Australian company that invests worldwide in bauxite mining, alumina refining and selected aluminium smelting operations.

Alumina Ltd (AWC) reiterated its FY10 guidance on expectations of a 10% increase in alumina demand.

AWC sighted changes in aluminium prices and fluctuations in the exchange rate as the key threats to its forecast.

AWC failed to provide specific guidance in February, so it is likely that today’s forecast referred to production and costs targets for this year.

Australian stock price for AWC has seesawed over the past year; however it has rallied in the previous sessions.  The stock last closed at $1.58 a share.

See Australian Stock Report for a free report trial.

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Shares To Sell 13 April 2010

Alumina (AWC) is a leading Australian company that invests worldwide in bauxite mining, alumina refining and selected aluminium smelting operations.

In Australian news, AWC has received US$58 million in dividends from its joint venture with parent, US-based Alcoa, in 1Q10 despite Alcoa posting a net loss of US$201 million.

AWC holds a 40% interest in the AWAC JV with Alcoa, which was formed in 1995.  AWAC is the world’s largest producer of alumina, accounting for 25% of global production.

AWC said that although alumina prices rose on the back of Chinese demand, costs were also driven up by higher energy prices and a stronger Aussie dollar.

AWC Australian share price has been seesawing since August 2009. Its shares got smashed 5.6% after Alcoa failed to upgrade its earnings forecast.

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