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Alcoa locks in growth

Alcoa Alumina Limited

Alcoa has welcomed a steady first quarter for the 2024 financial year (Q1 FY24), which was defined by its $3.4 billion takeover of Alumina Limited.

While alumina production decreased four per cent to 2.67 million tonnes (Mt), Alcoa produced 542,000t of aluminium, in line with the company’s strong Q4 FY23 output.

Shipments of alumina increased six per cent despite lower production thanks to an uptick in trading, and aluminium shipments saw a one per cent drop on the previous quarter.

Alcoa’s total revenue stood at 2.6 billion, which the company said was in line with the previous quarter.

“In the first quarter of 2024, we finalised the terms of our acquisition of Alumina Limited, which will bring strategic, operational, and financial flexibility,” Alcoa president and chief executive officer William F. Oplinger said.

“Raw material prices and markets are improving, and we are implementing near-term improvements to further strengthen Alcoa for the future.”

After weeks of talks, Alumina Limited announced in early March it had entered into a takeover deal that would cement Alcoa as one of the world’s largest alumina producers.

“We believe the time is right to combine our two companies,” Alumina chair Peter Day said at the time the deal was made.

Looking forward to the rest of 2024, Alcoa confirmed its outlook for aluminium and alumina production and shipments were unchanged.

The company expects to produce up to 10Mt of alumina over the year, and shipments climbing towards 12.9Mt.

Aluminium production is anticipated to reach 2.3Mt for the quarter, with shipments tipped to total 2.6Mt.

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