Alumina Ltd Alcoa’s strong fourth quarter earnings lifted the stock sentiment
Alcoa’s strong fourth quarter earnings lifted the stock sentiment: Alumina Ltd (ASX: AWC) stock rallied over 10.6% on January 25, 2017 driven by the solid fourth quarter earnings update by Alcoa. AWC holds 40% of each of the AWAC entities that form a part of the Alcoa alumina business segment. As per the update, ongoing rising API prices have lifted alumina margins. Even though AWAC’s production of alumina reached 3.1 million tonnes, which is lower than earlier quarter, bauxite production from wholly owned mines and equity interests rose by 6% year on year (yoy) to 11.8 million bone dry tonnes. AWC even got US$57.3 million of dividends, distributions and capital returns from AWAC in the quarter of which $48.0 million was reinvested in AWAC. The group got a total of US$232.8 million from AWAC for the full year and received $15.4 million of distributions in January 2017 relating to the fourth quarter of 2016 profit. The group has a net debt of over US$84 million at the end of December 2016.
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