Thu, Sep. 1, 5:40 PM
- Alcoa (NYSE:AA) and Alumina Limited (OTCQX:AWCMF) have amended the terms of a joint venture to address "new realities" after some earlier concerns (and legal challenges) from Alumina on the fate of the partnership following a planned Alcoa split.
- The new arrangement means the two are terminating litigation in Delaware tied to the split, which Alcoa says is on track for the second half.
- The changes to the Alcoa World Alumina and Chemicals JV focus on governance and financial policies, and also simplify dividend and cash management. They also call for raising debt to fund growth projects that the partners agree upon.
- A change of control of either partner would give the other partner more flexibility to go it alone on an expansion or development project, and it would terminate exclusivity and non-compete restrictions.
Wed, Jun. 1, 5:58 PM
- Alcoa (NYSE:AA) has not yet detailed how its debt will be split over its two new companies, but joint venture partner Alumina (OTCQX:AWCMF) is trying to make sure it does not share in the burden, and its concerns have led to an exchange of words and a series of meetings between the two companies, and to a lawsuit brought by Alcoa.
- Alumina is "worried about the debt," and likely is concerned about potential credit rating changes on its interest in the companies' partnership, says Sterne Agee CRT analyst Joshua Sullivan.
- Alcoa is expected to signal in its Form 10 filing later this month how it will structure its split, and investors then will get a read on how the company plans to handle its debt - particularly its big pension obligation; ahead of the filing, Alumina is "looking for concessions," Sullivan says, adding that Alcoa's lawsuit "adds an element of risk to the timing" of the transaction.
- Alcoa says the split remains on track to be completed during H2 of this year, and that it does not need Alumina's consent.
- Now read What will post-spinoff Alcoa look like?
Fri, May 27, 12:57 PM
- Alcoa (AA -0.6%) says its joint venture partner Alumina (OTCQX:AWCMF) is threatening to interfere with its plan to split in two if concessions are not granted.
- Alcoa says in a lawsuit that the Australian company says it will block Alcoa’s separation of the manufacturing business from its legacy smelting and refining segment later unless a JV agreement between the two companies is revised.
- The two companies set up a 60-40 JV involving bauxite and aluminum mining a along with manufacturing operations in 1994; Alumina claims the JV agreement gives it consent rights over Alcoa’s planned break-up and will only agree if Alcoa grants “wholly unwarranted and highly valuable concessions,” Alcoa says in court filings.
Jan. 21, 2014, 10:35 AM
- Alcoa (AA +5.2%) continues its unlikely march higher, as J.P. Morgan predicts tightening aluminum markets and higher prices will boost earnings.
- "Given the pace and amount at which premiums have recently increased, it is clearly difficult to forecast for how long they will remain near current levels which we believe provide a significant amount of earnings support to [Alcoa]’s primary aluminum smelting operations," the firm writes.
- The firm upgrades AA shares to Overweight from Neutral with a $15 price target, up from $9, and raises Century Aluminum (CENX +5.3%) to Overweight from Underweight with a $13 target, up from $6.
- Also: AWC +5.5%, KALU +0.5%, ACH +0.2%, NOR +4.5%.
Dec. 27, 2013, 4:29 AM
- The WSJ shines a light onto "shadow warehouses," a hidden system of facilities that store tens of millions of tons of aluminum, copper, nickel and zinc across the globe for banks, hedge funds and commodity merchants.
- The warehouses operate outside the London Metal Exchange's system, are unregulated, and don't provide details of their holdings. As a result, it's unclear how much metal is held in the shadow system. This lack of visibility could cause major price swings.
- The WSJ article follows allegations that warehousing companies have artificially boosted the price of metals, particularly aluminum.
- Companies that operate metals warehouses include Goldman Sachs (GS), Glencore Xstrata (GLCNF) and JPMorgan (JPM), although the latter is looking to sell its commodities unit.
- Relevant tickers include VALE, AA, AWC, KALU, MNSF, CENX, NOR, BHP, RIO, ACH.
- ETFs: DBC, JJC, DBB, DJP, GSG, RJI, GCC, USCI, CFD, JJN, JJT, BOM, RGRC, CPER, CTF, RJZ, GSC, LSC, GSP, JJU, DEE, BDD, BOS, JJM, DYY, DDP, DJCI, LD, CMD, BCM, CUPM, UCI, RGRI, UCD, UBM, FOIL, BDG, LEDD, CMDT, SBV, USMI, DPU, NINI, FTGC, CSCB, CSCR, HEVY
Feb. 14, 2013, 7:24 AM
Alumina (AWC) soars 11% premarket after China's Citic says it will take a 13% stake in the Australian company for about $468M. The price represents a 3% premium to Alumina's previous Sydney close. The big move in the stock suggests to some Citic may seek a total takeover of the company.| Feb. 14, 2013, 7:24 AM
Apr. 11, 2012, 7:56 AM
Jan. 6, 2012, 10:33 AM
Alcoa (AA -2.7%) is selling off after announcing a restructuring plan meant to cope with a weak demand/pricing environment, and is taking some other aluminum makers down with it. NOR -5.6%. ACH -3%. AWC -2.6%. Dahlman Rose (Buy) thinks Alcoa's move will help stabilize aluminum prices; other aluminum producers have also been cutting output. (previously)| Jan. 6, 2012, 10:33 AM
Oct. 6, 2011, 11:07 AM
Sep. 20, 2011, 8:19 AM
Apr. 11, 2011, 7:36 AM
Shares of aluminum producers rise in China on word $10.7B of smelter projects will be scrapped to reduce overcapacity in the industry. Aluminum prices continue their rise, touching the highest level since September 2008. Producer ETF: ALUM +5.1% YTD. Aluminum ETF: JJU +8.0% YTD.| Apr. 11, 2011, 7:36 AM
Feb. 10, 2011, 7:53 AM
A series of rate increases, epic cyclones, and biblical flooding are doing wonders for Australian shares, which closed at levels not seen since April. Strength in mining stocks combined with surprisingly good results from the banking sector power the most recent move. ETFs: EWA, KROO.| Feb. 10, 2011, 7:53 AM
Jan. 31, 2011, 4:08 PMJust beginning to dry out from biblical floods, Queensland braces for one of the most powerful cyclones ever on Wednesday/Thursday. Coal exports look to get pushed back again. Stocks and the aussie remain resilient, both near 52 week highs. EWA +1.2%. FXA +0.4%. Some Australian ADRs. | Jan. 31, 2011, 4:08 PM | 1 Comment
May 20, 2010, 9:05 AM
Metal miners and solar stocks are among the big premarket losers: IRE -18%. NETS -14%. AGEN -10%. RSO -9%. RTP -8%. AEZS -8%. NGG -8%. ALU -8%. ABK -8%. JASO -7%. MT -7%. TSL -7%. BHP -6%. CTIC -6%. YGE -6%. RCL -6%. STD -6%. STO -6%. CENX -6%. VALE -5%. VVUS -5%. KERX -5%. CRXX -5%. MTL -5%. AWC -5%. DRYS -5%. GOLD -5%. AIB -5%. LVS -5%. STM -5%. SIRI -5%. BBVA -5%. CLF -4%.| May 20, 2010, 9:05 AM | 4 Comments
Dec. 18, 2008, 9:00 AM
Nov. 11, 2008, 5:48 AM