Major acquisition drives strong results for Alcoa

Alcoa Corporation (ASX: AAI) reported results for the Q3 CY24 that reflect the acquisition of Alumina and resulting increases in net income, adjusted net income and Adjusted EBITDA.

Net income increased to $134m (US$90m), while adjusted net income increased sequentially to $201m (US$135m). Adjusted EBITDA increased to $680m (US$455m).

Alumina production decreased 4% to 2.44mmt primarily due to the full curtailment of the Kwinana, WA, refinery completed in June 2024. In the Aluminium segment, production increased 3% to 559,000mt primarily due to continued progress on the Alumar smelter restart.

In the Alumina segment, third-party shipments of alumina decreased 9% primarily due to decreased trading. In Aluminium, total shipments decreased 6% sequentially primarily due to decreased trading and the timing of shipments.

Alcoa president and chief executive William F. Oplinger comments on the results.

“During the third quarter, we maintained our pace of delivering on strategic actions,” he said.

“We gained flexibility after closing the Alumina Limited acquisition and announced the sale of our interest in the Ma’aden joint ventures.

“Positive markets and our focus on continuous improvement led to stronger results for the third quarter, while we continue to execute initiatives to further enhance our operations.”

Alcoa continued to advance mine approvals for the next two WA mine regions, Myara North and Holyoake, which were referred for accredited assessment by the WA Environmental Protection Authority (WA EPA) under the bilateral assessment process.

The process began in 2020, and Alcoa is focused on receiving approval by Q1 CY26. The company anticipates mining in the new regions will commence no earlier than 2027.

Until then, the Alcoa expects bauxite quality will remain similar to recent grades.