Alumina prices have shot up to US$340/t after the Jamalco refinery fire and then the military coup in Guinea. As a result, Citi increases net profit estimates for the company by 22% to US$178m.
If the coup in Guinea gives rise to material disruption in bauxite exports, the broker would review alumina price forecasts again. Neutral rating maintained. Target rises to $2.10 from $1.80.
Sector: Materials.
Target price is $2.10.Current Price is $2.03. Difference: $0.07 – (brackets indicate current price is over target). If AWC meets the Citi target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
