Financial PerformanceAfter adjusting our model, we now expect AWC net debt to peak at ~US$330mn in mid-24, and gross debt at ~A$370mn, well below the US$500mn corporate.
Operational ChallengesAlcoa continues to review the loss making San Ciprian refinery in Spain stating that internal credit lines are now nearing their limits, with no further funding to be provided.
Production IssuesThe AWAC alumina JV has had a challenging past 12 months with uncertainties around WA bauxite approval timelines, lower bauxite grades impacting WA alumina production, elevated unit costs in Spain, and weak seaborne alumina prices, resulting in declining margins.