NEW YORK (TheStreet) -- Shares of Noranda Aluminum (NOR) were spiking 27.2% to $1.32 on heavy trading volume after the aluminum product producer obtained financing to complete a new rod mill in New Madrid, Missouri.
Noranda Aluminum said it received $15 million of project-specific financing to complete the redraw rod mill at its aluminum smelter. The company said the new rod mill will increase its production capacity by about 43% and will "exemplify the latest cutting-edge technology in the North American marketplace."
The company expects the mill to start production in the second quarter of 2016.
"Obtaining financing to complete the rod mill is another positive step for Noranda as we continue to execute our key strategies of optimizing our integrated platform and maximizing our value-added products," President and CEO Layle K. "Kip" Smith said in a statement.
About 1.9 million shares of Noranda Aluminum were traded by 11:23 a.m. Wednesday, above the company's average trading volume of about 1.2 million shares a day.
TheStreet Ratings team rates NORANDA ALUMINUM HOLDING CP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORANDA ALUMINUM HOLDING CP (NOR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and generally disappointing historical performance in the stock itself."