I was a touch disappointed by AWC’s performance yesterday, the 1.3% advance was significantly less than I anticipated after the strong report and rally by Alcoa (AA US) on Friday night, I thought $2.50 was a strong possibility. However we remain bullish for a couple of reasons:
- Moving into 2022 we expect AWC to lift its dividend to around 12c fully franked putting the stock on a more than 5% fully franked yield.
- The Alumina price is now the highest since 2018 and we believe this bullish tailwind will last well into next year.
MM remains long & bullish AWC
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