Australia's Alumina rises as Macquarie sees lower production costs in 4Q2023

Alumina

15/12/2023 02:37

** Analysts at Macquarie reduce outlook for Alumina's
 AWC.AX  Q4CY23 cash costs of production, following company
noting a decline in AWAC system cash cost of production from
Q3CY23 levels due to lower caustic prices
    ** Shares of AWC up as much as 6.9% to A$0.935, their
highest level since Oct 19
    ** Brokerage maintains "neutral" recommendation and target
price of A$0.80 
    ** Macquarie says restricted access to high-grade bauxite
areas through to 2027 should result in a higher cost base than
historical performance
    ** Broker reduces 4QCY23 cash costs of production from
$294/T to $288/T, which results in a 7% increase in CY23
earnings per share
    ** Four of seven analysts rate "buy" or higher, two rate
"hold" and one rates "sell"; their median PT is A$1.00 - LSEG
data
        ** Stock down 42.4% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))