Miner and metals producer Alumina Limited’s (ASX: AWC) share price has climbed 4.35% higher to $2.88 on the release of its half-year results for the 6 months ended 30 June 2018.
Alumina reported it has more than doubled first-half net profit to $US286.4 million ($389.6 million), up 110% on the prior corresponding period, as margins jumped at AWAC on the back of higher alumina prices globally.
AWAC is Alcoa World Alumina & Chemicals, a joint venture which is 40% owned by Alumina Limited and 60% owned by Alcoa Corp.
EBITDA increased by US$525.6 million to US$1,208.0 million
The company declared a fully-franked interim dividend of US8.6 cents a share, up from US4.2 cents a year ago.
Alumina’s Chief Executive Officer, Mike Ferraro, said, “This has been another outstanding result for the Company, with AWAC’s alumina margins reaching levels not seen since before the GFC. The exceptional quality of AWAC’s Tier 1 assets has delivered outstanding returns to shareholders in favourable operating conditions.”
Alumina expects current market conditions to continue into the second half, because of lower global supplies in the alumina market and likely winter production cuts in China.
Since the beginning of 2018, the Alumina Limited share price has gained 18.52%, compared to the S&P/ASX 200 Index, which has gained 3.08% in the period.