Daily Research Report: Alumina
Friday, June 16, 2017
Alumina (AWC)
Figure 3: Stock Summary
Alumina down 5.6% in 2 days
Alumina Limited, Australia's 12th largest Materials company by
Day's Range
$A1.86-$A1.91
52-Week Range
$A1.15-$A2.04
over the past two trading days, compared with the All Ordinaries
Sector
Materials
Index which fell 54.0 points (0.9%) in the two days for a relative
Market Cap
$A5.4 billion
price change of -4.6%. The fall was exacerbated by a
Shares Outstanding
2,879,843,498
Relative Strength (6 mo)
67
ISIN
AU000000AWC3
PermID
4295856665
market cap, extended its slide on Friday, shedding an additional
5.50c (2.9%) to close at $A1.86. The shares have sunk 11.0c (5.6%)
cumulative 2-day volume of 1.8 times the average 2-day volume
of 11.9 million shares.
Fig 1: Rank out of 479 stocks in the
All Ordinaries Index
Description
Value
Rank
MCap (US$)
4.1B
64
Total Assets (US$)
2.1B
96
Revenue (US$)
600,000
417
Net Profit (US$)
(30.2M)
392
Return on Equity %
(1.5)
330
Price to Book
2.0
192
Yield %
4.2
154
PV$1000 (1Year) US$*
1,620
46
YTD %
4.2
208
* 1 year ago AUD 1 = USD 0.74; Jun 16, 2017: AUD 1 = USD 0.76
Fig 2: Financial Summary
Year ended (Dec)
2016
2015
2014
Sales (USD)
600,000
100,000
(70.4M)
Pre-tax profit (USD M)
(30.2)
88.3
(97.5)
Net profit (USD M)
(30.2)
88.3
(98.3)
EPS (USD)
(0.01)
0.031
(0.035)
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Introduction with Trends
We are currently bullish on this stock in the
short-term based on technical indicators, but
are neutral in the long-term based on
fundamental metrics
What makes us bullish on the stock is the following:
• Its Moving Average Convergence Divergence
indicators are rising, with its 12-day higher than its 26day.
• The stock is oversold according to the Williams % R
indicator of -96.4.
• The price to 200-day MAP ratio is 1.08, a bullish
indicator.
However, there are some reasons why we remain
neutral on the stock for the long-term:
• "A dividend yield of at least two-thirds the triple-A bond
yield"; the stock's dividend yield is 1.8 times the triple-A
bond yield of 2.4%.
• The Price to Book of 2 higher than average of 2.0 for the
Materials sector. We estimate the shares are trading at
a current year Price to Book of 2.1 and a forward year
Price to Book of 1.7.
• "Total debt less than tangible book value"; total debt of
USD92.4 Million is less than tangible book value of USD2
Billion.
List of Contents and Glossary at end of this Report.
Daily Research Report: Alumina
Friday, June 16, 2017
Analysis
Bullish Signals
Other Bullish Signals:
• In the Australian market of 1,398 stocks and 24 units
traded today, the stock has a 6-month relative strength
of 67 which means it has outperformed 67% of the
market.
• The price increased 0.8% in the last month. This was on
volume of 1.0 times average for month.
• The Moving Average Convergence Divergence (MACD)
indicator of 12-day Exponential Moving Average (EMA)
of 1.93 minus the 26-day EMA of 1.9 is positive suggesting
a bullish signal.
• The Price/MAP of 1.08 for AWC is higher than the
Price/MAP for the All Ordinaries Index of 0.99.
• The price to 200-day MAP ratio is 1.08, a bullish indicator.
In the past 200 days this ratio has exceeded 1.08, 182
times suggesting further upside. The stock is trading
above both its MAPs and the 50-day MAP of $A1.84 is
higher than the 200-day MAP of $A1.72, another bullish
indicator.
• The stock is oversold according to the Williams % R
indicator of -96.4.
• The present value of AUD1,000 (PV1000) invested five
years ago in Alumina is $A2,622, including a capital gain
of $A1,301 and dividend reinvested of $A322.
Also, the following criteria set by Benjamin Graham:
• "A dividend yield of at least two-thirds the triple-A bond
yield"; the stock's dividend yield is 1.8 times the triple-A
bond yield of 2.4%.
• "Total debt less than tangible book value"; total debt of
USD92.4 Million is less than tangible book value of USD2
Billion.
• "Current ratio of two or more"; current assets are 6.9
times current liabilities.
• 5 years Multiplier in AUD = 2.622x
• Compound Annual Growth Rate (CAGR) in AUD = 21.3%
Bearish Signals
Present Value of USD1,000 invested 5 years
ago:
• The present value of USD1,000 (PV1000) invested five
years ago in Alumina is $US1,971, including a capital
gain of $US729 and dividend reinvested of $US242.
• 5 years ago AUD 1 equalled USD 1.008
Fig 4: Bullish Indicators and Rank
in Market:
Description
Value
Rank In Market
Today's Turnover
$US48 million
In Top 4%
MCap
$US4.1 billion
In Top 6%
Price/MAP50
1.01
In Top Quartile
Price/MAP200
1.08
In Top Quartile
Total Debt to
Equity
0.05
In Top Quartile
• The price is at a discount of 2.9% to the 1-month volume
weighted average price of $A1.92, which may appeal
as a value proposition.
Fig 5: Volume Weighted Price
• 5 years Multiplier in USD = 1.971x
• Compound Annual Growth Rate (CAGR) in USD = 14.5%
Undervaluation:
• The Q Ratio, defined by James Tobin as MCap divided
by Total Assets, is 1.9. Compared with the rest of the
market the stock is undervalued.
• The average annual compound return on the share
price in the last 5 years was 21.3%, exceeding the
average annual compound return on the All Ordinaries
Index of 7.2%.
• The price sank 5.3% in the last week. This has been
exacerbated by firm volume of 1.4 times average for the
week.
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Page 2
Daily Research Report: Alumina
Friday, June 16, 2017
Analysis (continued)
• In the Australian Short Selling market of 997 stocks, short
selling as a % of issued shares ranked 26th and within the
top quartile of stocks. This means it was higher than
market average of 0.13%,a bearish indicator.
• The current short volume is 1.9 times its own historical
average of 0.2%. It soared 181.9% from the previous day,
soared 70.7% from a week ago and soared 108.3% from
a month ago, a significant bearish indicator.
Fig 7: Turnover Rate & Turnover
Period
Overvaluation:
• Price/Sales of 6819.68 versus sector average of 2.1 and
market average of 2.0.
• The Price to Book of 2 higher than average of 2.0 for the
Materials sector. We estimate the shares are trading at a
current year Price to Book of 2.1 and a forward year
Price to Book of 1.7.
Other Bearish Signals:
The stock has a score of merely 4 out of 9 set by Joseph
Piotroski [pass mark >=5 ]:
Positive operating cashflow; good quality of earnings
[operating cashflow exceeds net income]; improvement in
current ratio from 6 to 6.9; improvement in asset turnover
[growth in revenue of 500% exceeded growth in assets of
0.3%].
• It is at a discount of 8.6% to the 12-month high of $A2.04
on 02 Mar, 2017. It is also at a premium of 62.1% to the
12-month low of $A1.15 on 28 Jun, 2016.
Fig 6: Bearish Indicators and Rank
in Market:
Description
Price Change %
Value
Rank In Market
-2.9
In Bottom Quartile
Note
Volatility
The stock traded between an intraday high of $A1.91 and a
one-month low of $A1.86, suggesting a trading opportunity
between peaks and troughs. The average daily volatility of
2.9% places the stock in the 3rd quartile in the market
meaning it is mildly volatile.
Volume
There were 25,744,307 shares worth $US48 million traded. The
volume was 2.2 times average trading of 11.9 million shares.
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Page 3
Daily Research Report: Alumina
Friday, June 16, 2017
Analysis (continued)
Fig 8: Price High Low Close
The stock went against the trend set by the
following index and sector:
The All Ordinaries Index [432 stocks and 17 units traded] was
up 11.5 points or 0.2% to 5,808.
The Total Australian Market [1398 stocks and 24 units traded]
was up 8.8 points or 0.2% to 5,388.
Fig 9: Price Percentile Rank and
comparison:
Percentile
Rank
1-week
1-month
3-months
AWC
17
65
65
Materials
29
53
51
All Ordinaries
Index
63
51
60
Shareholder Returns
Trailing Week
The value of $A1,000 invested a week ago is $A947 [vs
$A1,016 for the All Ordinaries Index] for a capital loss of $A53.
Trailing Month
The value of $A1,000 invested a month ago is $A1,008 [vs
$A996 for the All Ordinaries Index] for a capital gain of $A8.
Fig 10: Present Value of $A1000
invested in the past:
PV$A1000
Beta & Standard Deviation (SD)
1-week
1-month
1-year
AWC
$A947
$A1,008
$A1,574
Materials
$A978
$A961
$A1,196
$A1,016
$A996
$A1,110
All Ordinaries
Index
The Beta of this stock is 1.4. A Beta greater than 1 suggests
this is a high risk, high return stock with volatility greater than
that of the market.
SD is a statistical measure of deviation from the mean. The SD
of 2.3% gives it a percentile rank of 30 meaning that 30% of
stocks in the Australian market are less volatile than this stock.
PRICE PERFORMANCE RANK IN INDICES AND
SECTOR:
The stock is in 9 indices and 1 sector:
The stock's fall was in keeping with the trend set by the
Materials sector [428 stocks traded] was down 10.1 points or
0.3% to 3,436.
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Page 4
Daily Research Report: Alumina
Friday, June 16, 2017
Analysis (continued)
Fig 11: Moving Annual Return
Close
($A)
Dividen Capital % Yield Annual
ds ($A) Gain /
Return
(Loss)
%
%
Last
1.86
0.08
48.6
6.2
54.9
1 Year
ago
1.25
0.09
(9.7)
6.2
(3.5)
2 Years
ago
1.39
0.02
11.8
1.6
13.5
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Page 5
Daily Research Report: Alumina
Friday, June 16, 2017
Fig 12: Month-on-Month Comparison (Trailing Month - ended 16th)
16 Jun
16 May
13 Apr
16 Mar
16 Feb
16 Jan
Price (AUD)
1.86
1.85
1.75
1.85
1.96
1.74
% Price Change
0.8
7.2
-3.6
-5.2
12
0.6
Avg Daily Volume
11,852,320
11,790,733
12,133,739
11,808,012
13,856,380
13,568,231
VWP (AUD)
1.83
1.82
1.87
1.88
1.82
1.68
Price Range (AUD)
1.81 - 2
1.67 - 1.89
1.7 - 1.88
1.78 - 2.04
1.93 - 1.98
1.69 - 1.75
Relative Price Change %
2.1
8
-5.8
-4.6
11.3
Volatility %
10.5
13.5
10.3
14.9
18.3
9.2
Fig 13: Fibonacci Retracement
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Page 6
Daily Research Report: Alumina
Friday, June 16, 2017
Rankings
Long-Term Fundamental Ranking:
3 out of 5
Short-Term Technical Ranking: 4
out of 5
Alumina is ranked number 12 out of 657 listed materials
Its short term falls have been combined with weak volume
resulting in weak momentum falls over 30 days.
Significantly its price of $A1.86 is at a premium of 8% to its 200day moving average price of $A1.72. Its 52-week range has
been $A2.04 to $A1.15; it is trading at a discount of 8.6 % to its
52-week high and a premium of 62.1 % to its 52-week low.
$A1,000 invested exactly one year ago is now worth $A1,574
of which $A498 is a capital gain and $A77 is dividend
reinvested.
Recommended stop loss: $A1.73
companies [that traded today] in Australia with a market
capitalization of $A5.4 billion.
In the materials companies it has the 17th highest total assets
and 138th highest revenues.
The company paid a dividend of 4.03c in the last twelve
months. The dividend yield is high at 4.2%.
Stocks are scored on a set of
parameters reflecting
fundamental analytical tools
involving valuation, size and
financial performance. They
are ranked according to the
average values of those
parameters. The highest
ranking is 5 and the lowest
ranking is 1.
Fig 14: Ranking
Stocks are scored on a set of
technical parameters
reflecting price performance
and trading volumes. They are
ranked according to the
average values of those
parameters. The highest
ranking is 5 and the lowest
ranking is 1.
Fig 15: Share in Index
Alumina is placed 211/1272 in BSS News Bites' ranking of
Alumina is a constituent of the following Indices
Australian performers in the past year, a percentile ranking of
Index Name
MCap of Index MCap as
(AUD B)
% of
Index
All Ordinaries Index
1,872
0.29
S&P/ASX 300 Index
1,806
0.30
S&P/ASX MidCap 50 Index
243
2.21
S&P/ASX 200 Materials Index
391
1.37
S&P/ASX All Australian 200
1,702
0.32
S&P/ASX 200 Resources
385
1.40
S&P/ASX 300 Metals and
Mining (Industry)
323
1.66
S&P/ASX 100 Index
1,587
0.34
S&P/ASX 200 Index
1,749
0.31
83%.
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Page 7
Daily Research Report: Alumina
Friday, June 16, 2017
Rankings (continued)
Sector Sorting
Fig 16: Relative Strength
For Company searches, or for sorting by stocks and
variables, an interactive version of today's Table is
available here
Fig 17: Peer Group Analysis
Name
Last Price
Relative Str.
(6-months)
MCap (USD) PV $1000
(1 yr)
Revenue
(USD)
Net Profit
(USD)
Total Assets
(USD)
Orica
$A20.45
82
5.83B
1,785
3.93B
259.67M
5B
Alumina
$A1.86
67
4.07B
1,620
600,000
(30.2M)
2.12B
Fletcher Building
$A7.54
25
3.97B
1,044
6.47B
332.09M
5.22B
Evolution Mining
$A2.43
93
3.1B
1,085
1.34B
(24.35M)
2.19B
Fig 18: BuySellSignals Fundamentals Valuation Table: Total Australian
Market
Total
Australian
Market
P/Earnings
AWC
47.1x
Rank
Rank 1
Rank 2
Rank 3
488
1.7x
NMT
1.8x
TSV
1.8x
VRS
Lowest Rank
Price/Net Tangible 2.5x
Assets
2.04x
550
0.1x
AGG
0.1x
GCR
0.1x
MRM
Total Debt/Equity
0.7x
0.05x
97
DFM
LNG
APX
11.01x
BYL
Discount to
52-Wk High (%)
2.9
8.6
1348
97.2
ITD
96.8
AYH
95.1
POW
0.1
FPH
Premium to
52-Wk Low (%)
17.4
62.1
1105
0.5
STO
0.6
PSQ
0.9
CUP
8800
RRP
Market Cap
$A
1.4 B
5.4 B
65
141.6 B
CBA
122.4 B
BHP
110.5 B
RIO
67,402
HWK
Revenue
$A
691.3 M
791,700
958
66.3 B
WES
58.3 B
WOW
46.6 B
RIO
Yield
(%)
4.4
4.2
264
19.8
NMS
19.5
AIQ
18.1
GZL
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0.1
WTC
Page 8
Daily Research Report: Alumina
Friday, June 16, 2017
Rankings (continued)
Fig 19: BuySellSignals Technical Valuation Table: Total Australian Market
PV
$A1,000
(1 Yr)
Rel
Strength
(6m)
PEMAP50
1-Day
Price (%)
5-Day
Price (%)
30-Day
Price (%)
3-Month
Price (%)
1-Year
Price (%)
30-Day
Avg
Volatility
Total
Australian
Market
Avg
1,145.5
62.8
-
0.2
1.1
-1.03
-0.1
14.6
1.5
AWC
1,574.5
67.2
1x
-2.9
-5.3
0.8
0.5
49.8
2.3
463
321
1202
992
485
485
213
918
99.9
SCU
1.6x
BBX
35.3
EQE
243.8
BBX
281.9
BBX
4350
RRP
100
PCL
Rank
Rank 1
195
104,532.1
LTN
Momentu
m
-
621
PGR
Rank 2
44,500.0
RRP
99.9
NOE
1.4x
TBH
47.4
ADH
34.4
ADH
100
TEX
212.5
ENT
2015.4
BBX
58.3
WFE
MGZ
Rank 3
21,153.8
BBX
99.8
BCN
1.4x
CAJ
33.3
MAR
33.3
PPP
88.2
MEI
136.4
TBH
900
SAS
34.6
SDL
CGL
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Page 9
Daily Research Report: Alumina
Friday, June 16, 2017
Financial Results (Annual)
31 December, 2016
Annual Report: Alumina reports Income Before Tax of $US-30.2m
Alumina (ASX:AWC) reported income before tax for the year-ended 31 December 2016 of $US-30.2m.
Financial statements as reported
(In $US Million, except per share data and shares outstanding)
Fig 20: Income Statement
Description
$US Million
$US Million
Dec 31
2016
2015
Change %
Revenue from continuing operations
0.6
0.1
Up 500.0
Share of net profit of associates accounted for using the equity 18.1
method
109.9
Down 83.5
General and administrative expenses
-25.7
-11.9
Deterioration
116.0
Change in fair value of derivatives/foreign exchange losses
-14.1
-3.2
Deterioration
340.6
4
106.7
Down 96.3
Finance costs
9.1
6.6
Up 37.9
(Loss)/profit before income tax
-30.2
88.3
Deterioration
-30.2
88.3
Deterioration
(Loss)/profit for the year attributable to the owners of Alumina -30.2
Limited
88.3
Deterioration
Share of reserve movements accounted for using the equity method 4.4
-0.7
Recovery
Foreign exchange translation difference
-452.2
Recovery
Re-measurements of retirement benefit obligations accounted for 7.5
using the equity method
32
Down 76.6
Other comprehensive income/(loss) for the year net of tax
190.4
-420.9
Recovery
Total comprehensive income/(loss) for the year attributable to the 160.2
owners of Alumina Limited
-332.6
Recovery
Income tax expenses
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
178.5
Items that will not be reclassified to profit or loss
Earnings per share for (loss)/profit from continuing operations
attributable to the ordinary equity holders of the Company:
Basic earnings per share
-1.0c
3.10c
Deterioration
Diluted earnings per share
-1.0c
3.10c
Deterioration
Diluted earnings per share
-1.0c
3.10c
Deterioration
Weighted average number of shares
2,879,474,499
2,824,328,800
Up 2.0
Weighted average number of shares
2,879,474,499
2,824,328,800
Up 2.0
Description
$US Million
$US Million
Dec 31
2016
2015
Change %
8.6
9.3
Down 7.5
Fig 21: Balance Sheet
CURRENT ASSETS
Cash and cash equivalents
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Page 10
Daily Research Report: Alumina
Friday, June 16, 2017
Financial Results (Annual)
(continued)
Receivables
31 December, 2016
0.1
0.1
Other assets
3
3.3
Down 9.1
Total current assets
11.7
12.6
Down 7.1
Investment in associates
2,106
2,098
Up 0.4
Property plant and equipment
0.1
0.1
Steady
Total non-current assets
2,106.1
2,098.1
Up 0.4
TOTAL ASSETS
2,117.8
2,110.7
Up 0.3
Payables
1.3
1.7
Down 23.5
Provisions
0.3
0.2
Up 50.0
Other liabilities
0.1
0.2
Down 50.0
0.4
0.4
Steady
1.7
2.1
Down 19.0
Borrowings
92.4
110.5
Down 16.4
Derivative financial instruments
16.2
14.7
Up 10.2
Provisions
0.6
0.5
Up 20.0
16.8
15.2
Up 10.5
Total non-current liabilities
109.2
125.7
Down 13.1
TOTAL LIABILITIES
110.9
127.8
Down 13.2
NET ASSETS
2,006.9
1,982.9
Up 1.2
2,682.9
2,682.9
Steady
NON-CURRENT ASSETS
CURRENT LIABILITIES
Total current liabilities
NON-CURRENT LIABILITIES
EQUITY
Contributed equity
Treasury shares
-1.4
Reserves
-1,125.3
-1,305.9
Improved 13.8
Retained earnings
449.3
607.3
Down 26.0
TOTAL EQUITY
2,006.9
1,982.9
Up 1.2
Description
$US Million
$US Million
Dec 31
2016
2015
Change %
Payments to suppliers and employees (inclusive of goods and -27.9
services tax)
-12.1
Deterioration
130.6
GST refund received
0.9
0.4
Up 125.0
Dividends received from associates
150.2
61.4
Up 144.6
Distributions received from associates
0.7
1.5
Down 53.3
Finance costs paid
-7.2
-8.4
Improved 14.3
Interest paid under cross currency interest rate swap
-3.5
-3.3
Deterioration 6.1
Fig 22: Cash Flow
Cash flows from operating activities
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Daily Research Report: Alumina
Friday, June 16, 2017
Financial Results (Annual)
(continued)
31 December, 2016
Interest received under cross currency interest rate swap
5
5.2
Down 3.8
Other
0.2
-1.1
Recovery
Net cash inflow from operating activities
118.4
43.6
Up 171.6
Payments to investments in associates
-48
-2.4
Deterioration
1,900.0
Proceeds from return of invested capital
81.9
43.4
Up 88.7
Net cash inflow from investing activities
33.9
41
Down 17.3
Proceeds from borrowings
30
110
Down 72.7
Repayment of borrowings
-50
-100
Improved 50.0
-20
10
Deterioration
Dividends paid
-135.3
-108.2
Deterioration
25.0
Net cash outflow from financing activities
-155.3
-98.2
Deterioration
58.1
Net decrease in cash and cash equivalents
-3
-13.6
Improved 77.9
Cash and cash equivalents at the beginning of the financial year
9.3
24.9
Down 62.7
Effects of exchange rate changes on cash and cash equivalents
2.3
-2
Recovery
Cash and cash equivalents at the end of the financial year
8.6
9.3
Down 7.5
Cash flows from investing activities
Cash flows from financing activities
Margins %
Dec 31
2016
2015
EBITDA Margin
-3,516.7
94,900
Earnings from Cont. Ops. Margin
-3,516.7
94,900
Net Income Margin
-5,033.3
88,300
Fig 23: Dividend History
Market Share
Date Paid
Value (c)
Type
01 Mar 2017
4.03
Final
30 Aug 2016
3.79
Interim
Tr 12 Months
7.82
01 Mar 2016
2.51
Final
31 Aug 2015
6.11
Interim
Previous Yr
8.62
03 Mar 2015
2.03
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Alumina vs Materials sector [Materials sector Total in
Brackets]
MCap of $A5.4 billion [1.3% of Aggregate Sector MCap of
$A417.6 billion; up from 1.1% in the previous year.]
Final
Page 12
Daily Research Report: Alumina
Friday, June 16, 2017
AWC American Depository Receipts
Fig 24: American Depositary Receipts
Symbol
AWC
Price
USD 5.84
ISIN
US0222051080
CUSIP
022205108
Ratio
1 ADR equals 4 ordinary shares
Type
Sponsored
Avg. Daily
Volume
20,297
Top 3 Institutional Shareholders of Alumina ADRs as at March 31, 2017
Institution (CIK)
ADRs
Holding %
Value $USD
Parametric Portfolio
Associates LLC (0000932859)
953,371
0.16
5.2 M
Bluestein R H & Co
(0000884314)
100,000
0.02
545,000
World Asset Management,
Inc. (0001389215)
44,876
0.01
244,574
Held by Top 3
1,098,247
0.19
6 million
Major Increases in Top 3 institutional shareholders
Institution (CIK)
Increase in ADRs
Change, $USD
Parametric Portfolio Associates LLC
(0000932859)
116,676
828,324
World Asset Management, Inc.
(0001389215)
628
13,599
Total
117,304
-
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Page 13
Daily Research Report: Alumina
Friday, June 16, 2017
Company Overview and Regulatory Announcements
Fig 25: Activities
Fig 26: List of Top 10 Shareholders
Alumina Limited is an Australian resource company that
produces alumina. The Company owns about 40% of Alcoa
World Alumina and Chemicals through a joint venture with
Alcoa.
Business Sector
Mineral Resources
Industry Group
Metals & Mining
Industry
Specialty Mining & Metals
Economic Sector
Basic Materials
Contact details
Website
http://www.aluminalimited.c
om
Physical Address
Level 12 IBM Centre, 60 City
Road Southbank, VIC 3006
Australia
Phone
61-3-86992603
Fax
61-3-86992699
Issued Capital
Based on 2,879,843,498 issued equity shares the market
capitalisation is $A5.4 billion. It is Australia's 138th largest
Materials company by total revenue.
The top twenty shareholders hold 83.7% of the issued capital
leaving a float of 16.3%.
Name of
Shareholder
No. of
Shares
% Held
Value
AUD
HSBC Custody
Nominees (Aust)
480,240,526
16.68
895.6 M
J P Morgan Nominees
Australia Limited
440,257,233
15.29
821.1 M
National Nominees
370,142,421
12.85
690.3 M
Citic Resources
Australia Pty Ltd
219,617,657
7.63
409.6 M
Citicorp Nominees Pty
Ltd
210,635,743
7.31
392.8 M
Bestbuy Overseas Co
Ltd
154,114,590
5.35
287.4 M
BNP Paribas Noms Pty
Ltd <Drp>
86,978,564
3.02
162.2 M
RBC Global Services
Australia
82,707,016
2.87
154.2 M
Bnp Paribas Nominees
Pty Ltd <Agency
Lending Drp A/C>
74,183,866
2.58
138.4 M
Citic Resources
Australia Pty Ltd
59,282,343
2.06
110.6 M
Total
2,178,159,959
75.63
Changes in Board and
Management
May 25: Alumina: 2017 AGM Voting Results
As required by ASX Listing Rule 3.13.2 and section 251AA of
the Corporations Act 2001, the following statistics are
provided in respect to each item of business considered by
members at the Company's Annual General Meeting held on
25 May 2017.
Source: Australian Securities Exchange
For more details click here.
May 22: Alumina will appoint Chief Executive Officer
Alumina will appoint Michael Ferraro as Chief Executive
Officer. The effective date is Wednesday, May 31.
For more details click here.
May 22: Alumina Limited CEO Succession
Source: Australian Securities Exchange
For more details click here.
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Page 14
Daily Research Report: Alumina
Friday, June 16, 2017
Regulatory Announcements (continued)
May 22: Alumina Limited CEO Succession
Limited (ASX:AWC) today advised that Mr. Peter Wasow will
retire as Chief Executive Officer and Managing Director of
the Company on 31 May 2017. Mr. Mike Ferraro, currently a
Director of Alumina Limited, will succeed Mr. Wasow as Chief
Executive Officer. Mike Ferraro has been a senior Melbourne
based lawyer with experience in the commercial and
resource sector and also worked as investment banker in
Australia and London.
For more details click here.
Dividends
February 25: Alumina announces dividend
Alumina today announced a final dividend of 4.03c per
share, franked to 100%. The ex dividend date is Wednesday,
March 01, 2017 and the record date is Thursday, March 02,
2017 and it is payable on Wednesday, March 22.
June 27 2016: Alumina files 'Answer & Counterclaim' in
US Court proceedings
Alumina Limited (Alumina) today released its 'answer and
counterclaim' filed in response to the 'complaint' recently
brought by Alcoa.
Alumina has refuted all substantive elements of Alcoa's claim
and made its own counterclaim. Alumina's counterclaim
provides a detailed explanation of Alumina's rights under the
AWAC joint venture agreements, and seeks court
declarations to both prevent Alcoa taking further steps in its
separation without complying with its obligations under the
AWAC agreements, and to receive offers to acquire Alcoa's
interests in the various AWAC companies under its first option
rights.
For more details click here.
August 26 2016: Alumina announces dividend
Alumina today announced an interim dividend of 3.79c per
share, franked to 100%. The ex dividend date is Tuesday,
August 30, 2016 and the record date is Wednesday, August
31, 2016 and it is payable on Thursday, September 15.
Performance
August 24 2016: Alumina Limited 2016 Half-Year Result
Source: <a target=_blank
href="http://www.buysellsignals.net/BuySellSignals/report/Aus
tralia/Stock/News/1266985.pdf" >Company Website</a>
For more details click here.
July 12 2016: AlcoaAlcoa Second Quarter Earnings
Release
Alumina Limited (ASX: AWC) notes Alcoa's quarterly earnings
release and attaches it for reference. To assist readers in
understanding relevant market, operational and commercial
matters of the AWAC joint venture, selected information from
the Alcoa alumina segment results and other market data
are also attached.
Alumina Limited's CEO, Peter Wasow, commented, "Second
quarter margins benefitted from higher API prices and further
productivity gains as well as the closure of higher cost
capacity.
For more details click here.
Press Releases
September 02 2016: Alumina and Alcoa Inc. announce
amendments to AWAC Joint Venture
Attached is a joint announcement by Alumina Limited and
Alcoa Inc. regarding changes to the AWAC joint venture
agreements. B oth parties have also agreed to settle and
terminate litigation related to Alcoa's separation.
Also attached is a copy of the amended and restated
Charter of the Strategic Council of AWAC along with
definitions.
For more details click here.
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Page 15
Daily Research Report: Alumina
Friday, June 16, 2017
Board and Management & creation of shareholder value
Michael Ferraro
CEO & Independent NonExecutive Director
Mr Ferraro was appointed a Non-Executive Director of the
Company on 5 February 2014. He is a member of the Audit
and Risk Management and Compensation Committees and
is Chair of the Nomination Committee. Mr Ferraro is Partner,
Client Development-Asia Pacific at Herbert Smith Freehills, a
global law firm, and was formerly head of the Corporate
Group at the firm. He was also a member of their executive
management team. Mr Ferraro is also a Non-Executive
Director of Helloworld Limited (appointed January 2017).
Between 2008 and 2010 Mr Ferraro was Chief Legal Counsel
at BHP Billiton Ltd. Mr Ferraro has considerable experience in
the resources sector and has over 30 years of experience in
joint ventures, mergers and acquisitions, fund raising, and
regulatory issues across a wide range of sectors and
countries. He also has considerable experience in the
commercial and financing aspects of large transactions
gained from a number of years in investment banking as a
corporate adviser.
Chris Thiris
CFO
Chris Thiris joined Alumina Limited in December 2011 as Chief
Financial Officer and is responsible for accounting, treasury,
investor relations and taxation. Mr Thiris has extensive
experience in finance and other management functions
gained through senior roles he has held in other
organizations.
Creation of shareholder value in Alumina:
Since appointment as CFO: The present value of AUD1,000
invested on the appointment date of December 13, 2011 at
close price of $A1.13 is $A1,930, including a capital gain of
$A649 and dividend reinvested of $A281.
Emma Stein
Independent Non-Executive
Director
Creation of shareholder value in Alumina:
Since appointment as Independent Non-Executive Director:
The present value of AUD1,000 invested on the appointment
date of February 05, 2014 at close price of $A1.07 is $A1,991,
including a capital gain of $A747 and dividend reinvested of
$A244.
John Pizzey
Chairman & Independent
Non-Executive Director
Mr Pizzey was elected a Non-Executive Director of the
Company on 8 June 2007. He is a Non-Executive Director of
Orora Limited (appointed December 2013) and former NonExecutive Director and Chairman of Iluka Resources Ltd
(appointed November 2005 and resigned December 2013)
and a former Non-Executive director of Amcor Limited
(appointed September 2003 and resigned December 2013).
Mr Pizzey is a life governor of Ivanhoe Grammar School and a
former chairman and director of the London Metal
Exchange.
Creation of shareholder value in Alumina:
Ms Stein was appointed as a director of Alumina Limited on 3
February 2011. She has considerable experience with
industrial customers and comprehensive set of commercial
skills in international energy and utilities markets, investments
in long life assets and projects, and the upstream oil and gas
sector. She is a member of the Audit Committee, and Chair
of the Compensation Committee and Nomination
Committee.
Formerly the UK Managing Director for French utility Gaz de
France's energy retailing operations, Ms Stein moved to
Australia in 2003. Before joining Gaz de France she was UK
Divisional Managing Director for British Fuels.
Ms Stein is currently Non-Executive Director of Diversified
Utilities Energy Trust (which owns gas and electricity assets in
Australia and the Unitied States), Programmed Maintenance
Services Ltd,Transpacific Industries Group Ltd and Todd
Corporation. She is a former Non-Executive Director of
Transfield Services Infrastructure Fund and Clough Limited.
Creation of shareholder value in Alumina:
Since appointment as Independent Non-Executive Director:
The present value of AUD1,000 invested on the appointment
date of February 03, 2011 at close price of $A2.11 is $A1,072,
including a capital loss of $A116 and dividend reinvested of
$A188.
Since appointment as Chairman: The present value of
AUD1,000 invested on the appointment date of November
30, 2011 at close price of $A1.17 is $A1,873, including a
capital gain of $A600 and dividend reinvested of $A272.
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Page 16
Daily Research Report: Alumina
Friday, June 16, 2017
Board and Management & creation of shareholder value
(continued)
W Peter Day
Independent Non-Executive Director
Mr Day was appointed as a Non-Executive Director of the
Company on 1 January 2014. He is a member of the
Nomination and Compensation Committees and is Chair of
the Audit and Risk Management Committee. Mr Day is also
currently a Non-Executive Director of Ansell (appointed
August 2007), Australian Office Fund (appointed September
2015), and Boart Longyear (appointed February 2014), and a
former director of Federation Centres (October 2009February 2014), Orbital Corporation (August 2007-February
2014) and SAI Global (August 2008-December 2016). Mr Day
brings extensive experience in the resource, finance and
manufacturing sectors, having held a number of senior
positions with Bonlac Foods, Rio Tinto, CRA, Comalco and the
Australian Securities and Investments Commission. He is a
former CFO of Amcor Limited. He also supports initiatives in
disability services and mentoring.
Creation of shareholder value in Alumina:
Since appointment as Independent Non-Executive Director:
The present value of AUD1,000 invested on the appointment
date of January 01, 2014 at close price of 98.24c is $A2,164,
including a capital gain of $A898 and dividend reinvested of
$A265.
Peter Wasow
Independent Non-Executive
Director
Chen Zeng
Non-Executive Director
Mr Zeng was appointed as a Non-Executive Director of the
Company on 15 March 2013. He is a member of the
Nomination, Compensation and Audit and Risk
Management Committees (appointed 7 August 2014). Mr
Zeng is also currently a director of CITIC Pacific Limited, Chief
Executive Officer of CITIC Pacific Mining and Chief Executive
Officer of CITIC Mining International, the new holding
company of CITIC Pacific Mining. He is a former director of
CITIC Limited (listed on the Hong Kong Exchange), CITIC
Dameng (listed on the Hong Kong Exchange), Macarthur
Coal Limited (2007 to 2011) and Marathon Resources Limited
(resigned 31 January 2014). Mr Zeng also served as a director
on the Board of CITIC Group between 2010 and 2011. Before
joining CITIC Pacific Mining, Mr Zeng was the Vice Chairman
and CEO of CITIC Resources, a CITIC Group controlled Hong
Kong listed company focused on crude oil production, metal
mining and refining, and commodity trading. Mr Zeng is also
the Chairman of CITIC Australia. Mr Zeng has over 26 years of
experience in project development, management, and a
proven record in leading cross-cultural professionals in the
resources sector.
Creation of shareholder value in Alumina:
Mr Wasow was appointed Chief Executive Officer effective
from 1 January 2014. He has responsibility for the overall
management of Alumina Limited in accordance with the
strategy, policies and business processes adopted by the
Board. Prior to his appointment as CEO, Mr Wasow was a
non-executive director of the Company, appointed on 26
August 2011 and was a member of the Nomination
Committee and Compensation Committee and a former
member and Chair of the Audit Committee (December 2011
to November 2013).
Mr Wasow served for more than 8 years at major Australian
oil and gas producer Santos Limited from 2002 to 2010. At
Santos Mr Wasow was initially appointed as Chief Financial
Officer and later also as Executive Vice President. He was
responsible for corporate development, corporate strategy
and planning, investor relations, accounting, corporate
finance, taxation and audit. Prior to joining Santos in 2002, Mr
Wasow held several senior roles over a 23 year career at BHP
including Vice President of Finance.
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Since appointment as Non-Executive Director: The present
value of AUD1,000 invested on the appointment date of
March 15, 2013 at close price of $A1.0 is $A2,116, including a
capital gain of $A857 and dividend reinvested of $A260.
Stephen Foster
Company Secretary
Mr Foster is responsible for legal, company secretarial,
shareholder services, insurance and human resources. Mr
Foster has a wide range of legal and commercial experience
gained over 25 years, more recently at Village Roadshow
and WMC Limited, after working with the legal firm of Arthur
Robinson & Hedderwicks (now Allens).
Page 17
Daily Research Report: Alumina
Friday, June 16, 2017
List of Contents
Section 1. Alumina
Alumina down 5.6% in 2 days
1
Fig 1: Rank out of 479 stocks in the All Ordinaries Index
1
Fig 2: Financial Summary
1
Figure 3: Stock Summary
1
Introduction with Trends
1
Section 2. Analysis
Bullish Signals
2
Fig 4: Bullish Indicators and Rank in Market:
2
Bearish Signals
2
Fig 5: Volume Weighted Price
2
Fig 6: Bearish Indicators and Rank in Market:
3
Fig 7: Turnover Rate & Turnover Period
3
Fig 8: Price High Low Close
4
Fig 9: Price Percentile Rank and comparison:
4
Shareholder Returns
4
Fig 10: Present Value of $A1000 invested in the past:
4
Fig 11: Moving Annual Return
5
Fig 12: Month-on-Month Comparison (Trailing Month - ended 16th)
6
Fig 13: Fibonacci Retracement
6
Section 3. Rankings
Long-Term Fundamental Ranking: 3 out of 5
7
Short-Term Technical Ranking: 4 out of 5
7
Fig 14: Ranking
7
Fig 15: Share in Index
7
Sector Sorting
8
Fig 16: Relative Strength
8
Fig 17: Peer Group Analysis
8
Peer Group Analysis
Fig 18: BuySellSignals Fundamentals Valuation Table: Total Australian Market
Fig 19: BuySellSignals Technical Valuation Table: Total Australian Market
Fig 20: Income Statement
8
9
10
Fig 21: Balance Sheet
10
Fig 22: Cash Flow
11
Fig 23: Dividend History
12
Market Share
12
Section 4. AWC American Depository Receipts
Fig 24: American Depositary Receipts
13
Top 3 Institutional Shareholders of Alumina ADRs as at March 31, 2017
13
Major Increases in Top 3 institutional shareholders
13
Section 5. Company Overview and Regulatory Announcements
Fig 25: Activities
14
Contact details
14
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Page 18
Daily Research Report: Alumina
Friday, June 16, 2017
List of Contents (continued)
Issued Capital
14
Fig 26: List of Top 10 Shareholders
14
Changes in Board and Management
14
Dividends
15
Performance
15
Press Releases
15
Section 6. Board and Management & creation of shareholder value
Names, Positions, Biographies, Performance
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Page 19
Daily Research Report: Alumina
Friday, June 16, 2017
Glossary
Relative Strength (n-th Period) (Fig 16):
Turnover Rate (Fig 7):
Price close today/Price close 'n' periods ago, then ranked by
percentile within the entire market.
Australian Dollar value of annual trading volume as a
percentage of market capitalisation
Capital Gain/Loss from n Years Ago to n-1 Years Ago:
Turnover Period (Fig 7):
Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Time Period required for trading all Outstanding Shares
Debt/Equity (Fig 4):
Current Ratio:
Net Debt/Net Assets (times)
Current Assets/Current Liabiliites (times)
Price/Earnings (Fig 18):
Price/Sales:
Share Price/Earnings Per Share (times)
Share Price/Sales Per Share (times)
Price/NTA:
Volume Index (VI):
Closing Share Price/Net Tangible Assets Per Share (times)
Number of shares traded in the period/Average number of
shares traded for the period
Moving Average Price (n periods) (Fig 4, 19):
Price Close/Moving Avg Price (Fig 4):
Sum of Prices for each Period/Number of Periods
Latest Price/Moving Average Price
Dividend Yield:
Income during the n years (3/2/1) (Fig 23):
Dividend Per Share/Share Price (%)
Dividends received during the Period
Annual Return (Fig 11):
Relative Price Change (Fig 12):
Dividends Paid In a 12-Month Period/Price at the Beginning of
the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago
(%)
Today's Relative price change with respect to Benchmark
Index
Volume Weighted Price (VWP) (Fig 12):
Volatility (Fig 12, 19):
The Volume Weighted Price (VWP) is the summation of
turnover divided by total volume in the same period.
Highest Price minus Lowest Price/Lowest Price (%)
PV$A1000 (Fig 9, 10):
Present value of $A1000 invested 1 year/'n' years ago
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