Alumina Ltd joint-venture partner Alcoa has received US$7.7m from the government to fund a carbon-reduction technology pilot for aluminium refining.
The pilot uses Electric calcination, Mechanical Vapour Recompression and a decarbonised grid, and Alcoa believes it could yield a strong reduction in carbon emissions.
The broker expects energy and caustic soda prices will remain elevated, further pressuring costs. Macquarie cuts 2022 EPS forecasts -6% after marking to market March-quarter realised prices for aluminium.
Target price eases -5% to 1.90. Neutral rating retained.
Sector: Materials.
Target price is $1.90.Current Price is $1.91. Difference: ($0.01) – (brackets indicate current price is over target). If AWC meets the Macquarie target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
