5. Alumina Limited (AWC) is a leading Australian company investing in bauxite mining and alumina refining through its 40% ownership of Alcoa World Alumina & Chemicals (AWAC), the world's largest alumina business with an output greater than 17 million tonnes per annum.
For the first quarter of 2011, AWAC reported alumina production of 3.8 million tonnes. The Sao Luis refinery has achieved production records during the quarter notwithstanding minor operating issues.
After the first quarter of 2011, John Bevan, Alumina's CEO, said, "The pricing environment for the alumina industry continues to improve. Published spot and index alumina prices have averaged $392 per tonne for the first quarter and are currently $407 per tonne, reflecting strong demand. Aluminum prices have increased over the quarter and are now over $2,600 per tonne. The impact of rising US dollar alumina prices has been partly offset by higher production costs from increases in energy costs and scheduled maintenance, and the impact of the strong Australian dollar."AWAC holds a 54% stake in the commissioned 2.1 million expansion of the Alumar alumina refinery in Brazil, and the refinery has been ramped up to full production capacity. The construction of a 2.6 million t/p mine at Juruti, near the Alumar refinery, has been completed. The stock is trading at 16.4 times its estimated 2011 earnings and analysts expect 16% upside over the next one year.