Alcoa Corporation (ASX: AAI): Equity Analysis

Cyclical metal, real option.

Company Snapshot

Alcoa (AAI) mines bauxite, refines alumina, and smelts primary aluminium. Earnings swing with alumina and aluminium prices, and with input costs like energy and caustic soda. Reliability across sites also matters. The latest quarter shows a cyclical lull in prices. Management is protecting margins through portfolio pruning, cost control, and disciplined capex. Liquidity, leverage, and free cash flow are key watchpoints given heavy capex needs and volatile spreads.

Business & Operating Model

Alcoa's three-segment model creates both optionality and exposure along the aluminium value. . .

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