Thoughts on AWC
I am wondering about the discrepancy between Alumina price and AWC. Perhaps you can look at my Q and A question about AWC and address this week? Thanks, Alain
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Answer
Hi Alain,
As you rightly point out, AWC operates in the alumina segment and has only a small exposure to the aluminium business of Alcoa – this is a common misconception in the market – Alumina is different to Aluminium.
Operational issues and higher capex mean the dividend paid to AWC was lower in the first half and that’s been the main issue. We see better opportunities elsewhere in the resource sector into weakness.
