South32 Limited

US aluminum premiums were weak in July. However, we’ve seen an increase in premiums since then. Premiums in Europe have also risen slightly.

Aluminum was among the best-performing base metals in the first half of 2017. The lightweight metal outperformed copper in 1H17 by a decent margin.

Alcoa (AA), the leading US-based aluminum producer, has gained 47.8% in 2017, based on November 30 closing prices.

Norsk Hydro (NHY) released its 3Q17 earnings on October 25. The company reported revenues of 22.8 billion Norwegian krone (~$2.8 billion) in 3Q17.

Analysts seem to be factoring lower-than-current aluminum prices next year when it comes to aluminum producers’ 2018 revenue estimates.

Century Aluminum (CENX) released its 2Q17 financial results on August 2 after the markets closed. The company reported revenues of $2.86 billion in 2Q17.

Previously in this series, we’ve looked at Alcoa’s (AA) 2Q17 earnings estimates. In this article, we’ll see how leading brokerages are rating Alcoa stock ahead of its 2Q17 earnings release.

Developments in the Chinese aluminum industry tend to impact the global aluminum industry. Chinese aluminum exports interest companies like Alcoa (AA).

China’s aluminum demand is expected to be strong this year. Alcoa raised its 2017 global aluminum demand forecast to 4.5%–5.0% from its previous guidance.

Century Aluminum (CENX) was among the best-performing aluminum stocks (NHYDY) (ACH) (SOUHY) last year with gains of 94%.

Alcoa (AA) expects to generate adjusted EBITDA between $2.1 billion and $2.3 billion in fiscal 2017. Alcoa assumed aluminum prices at $1,900 per metric ton.

Alumina markets Before we analyze alumina markets, let’s look at aluminum’s value chain. It starts with mining bauxite—one of the most abundant metals in the Earth’s crust. Due to bauxite’s many impurities, it must be refined to produce alumina. This alumina is then processed to produce raw aluminum (SOUHY). Rio Tinto (RIO), Norsk Hydro (NHYDY), and […]

During their 2Q16 earnings calls, Century Aluminum (CENX) and Norsk Hydro (NHYDY) expressed concern over higher Chinese supply in the second half of the year.

Alcoa’s 3Q16 guidance Previously, we looked at factors that could impact Alcoa’s (AA) 3Q16 revenues. In this part, we’ll look at the company’s profitability metrics. Note that there are several metrics you can use to measure an enterprise’s profitability. Alcoa releases a non-GAAP (generally accepted accounting principles) measure, the ATOI (after tax operating income). In […]

Aluminum prices have shown resilience this year. However, aluminum has been facing stiff resistance at $1,700 per metric ton.

Some of the Chinese capacity might come back online after the big surge in prices. This could put pressure met coal prices.

Although the general consensus seems to be that Alcoa’s (AA) split could help create long-term shareholder value, there remain some unanswered questions.

Freeport-McMoRan (FCX) is looking for strategic alternatives for its energy business. In its 3Q15 earnings call, FCX gave a six-month timeframe for making a decision on energy assets.

If there’s a rate hike at the Fed’s December meeting, it could mean higher borrowing costs, which could make it even more challenging for aluminum producers.

2015 has been nothing short of a nightmare for the aluminum industry. Alcoa (AA) and Century Aluminum (CENX) have lost 45% and 85%, respectively, so far in 2015.

Responding to lower aluminum prices, Alcoa (AA) has cut smelting capacity to restore supply balance. At its Investor Day on November 4, Alcoa gave its guidance on the projected aluminum surplus in 2016.

Freeport-McMoRan (FCX) is looking at “strategic alternatives” for its energy business. It has highlighted two objectives for its energy (DBE) business

US Midwest aluminum premiums have been stable at $0.07 per pound in October. However, aluminum premiums have fallen more than 70% YTD.

Alcoa (AA) closed at $9.42 on October 19. Alcoa’s stock has been falling since the company released its 3Q15 earnings after the markets closed on October 8.

Freeport-McMoRan filed for an IPO of its energy business more than three months ago, but we haven’t yet heard from the company on the IPO’s proposed date.

US Midwest aluminum premiums were fairly stable in July and August, inching up a bit in early July. However, aluminum premiums have fallen again in September.

Most aluminum companies delivered decent stock market returns last year. So what has gone wrong with Alcoa? Its transformation strategy was expected to enhance shareholder value.

In this series, we’ll analyze how Freeport-McMoRan investors could be affected by an IPO for the firm’s energy business, which it acquired for $9 billion just two years ago.

The revenues of aluminum producers like Alcoa (AA) and South32 (SOUHY) are tied to the LME aluminum prices.