Citi trims PT on Australia's Alumina, sees low output volumes through to 2026

Alumina

31/10/2023 20:56

** Analysts at Citi cut their price target on Australia's
Alumina  AWC.AX  to A$1.15 from A$1.30
    ** Says output volumes expected to remain lower through to
CY26
    ** Cuts outlook for AWC's CY24 & CY25 volumes by ~13% - 15%
on alumina tonnes
    ** Expects that with recovery in ex-China aluminium
production, alumina market will tighten more than reflected in
current spot alumina pricing
    ** Sees upside risks to current alumina price view of ~$350
per tonne
    ** Forecasts AWC loss of $67 mln in CY23 and a modest
break-even profit in CY24; assumes no dividend in CY24
    ** Brokerage increases unit operating expenditure outlook
through to CY26; assumes no dividends in CY24
    ** Stock down ~48.7% YTD, as of last close

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))