Alumina Limited (ASX: AWC), is headquartered in Southbank, Australia, via its 40% interest in Alcoa World Alumina and Chemicals (AWAC) and is engaged in bauxite mining, alumina refining, as well as aluminium smelting businesses. With around 2.88 billion outstanding shares and a market cap of ~ 6.34 billion, the AWC stock last traded at AUD 2.250, up by 2.273% by AUD 0.050, with ~12.18 million shares traded as on, May 10th, 2019. Alumina’s annual dividend yield is high at around 14.1% (as per the ASX).
Recently, Mr Andrew Wood, Group Executive Strategy and Development, delivered a presentation at the CRU 24th Aluminium Conference held in London, U.K. For the year 2018, the company reported a net profit after tax of $ 635.4 million with the AWAC average alumina cash cost of production at $ 226/t. On April 24th, Alumina announced that Mr Grant Dempsey has been appointed to the position of Chief Financial Officer, effective July 1st, 2019. With an extensive prior experience, Grant has advised and financed large resource companies and some of the largest owners and investors in long life infrastructure assets.
As per the company’s recently released First Quarter 2019 Earnings update, the total adjusted EBITDA for Alcoa was around $ 372 million for the Alcoa Alumina Segment and $ 126 million for Alcoa Bauxite Segment. For AWAC, the cash cost ($/t production) was recorded at $ 221, and the realised price ($/t shipments) at around $ 379.
Evolution Mining Limited
Evolution Mining Limited (ASX: EVN), based out of Sydney, is engaged in the exploration of gold, copper and silver deposits. Primarily, it develops and operates gold projects in Australia and New Zealand. The company has ~ 1.7 billion outstanding shares with a market cap of around $ 5.57 billion. On May 10TH, 2019, the EVN stock last traded at AUD 3.330, up by 1.52%, with ~ 13.90 million shares traded today.
The company published its Quarterly Report for the three months to March 31st, 2019, whereby the gold production was 175,901 ounces at an All-in Sustaining Cost (AISC) of AUD 925 per ounce, down by AUD 48/oz. The company’s operating mine cash flow was recorded around AUD 168.3 million with a net mine cash flow of AUD 107.8 million. Besides, the bank debt reduced by AUD 25 million to AUD 330.0 million and the net bank debt stood at AUD 74.2 million (December 31st, 2018: AUD 41.4 million).
As of the end of the quarter, the cash balance was ~AUD 255.9 million (December 31st, 2018: AUD 313.6 million) after AUD 59.3 million in dividend payments, AUD 41.3 million payment to acquire 19.9% stake in Tribune Resources and AUD 25.0 million in debt repayments.
According to the Annual Mineral Resource and Ore Reserve estimates as at December 31ST, 2018, the Gold Mineral Resources increased to 14.73 million ounces while the Gold Ore Reserves increased by 410,000 ounces to 7.46 million ounces.
For the full year 2019 (FY19), the production guidance remains unchanged at 720,000 – 770,000 ounces at an AISC of AUD 850 – AUD 900 per ounce.
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