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February 17, 2014
17:09 EDTAAAlcoa to close smelter, rolling mills in Australia, sees $250M-$270M in charges
Alcoa announced it will permanently close its Point Henry aluminum smelter and two rolling mills in Australia. The smelter and an adjacent rolling mill are located in Geelong, Victoria. The second mill and a recycling facility are located in Yennora, New South Wales. The smelter will close in August and the rolling mills by the end of 2014. The company said, "The Point Henry smelter was placed under strategic review in February 2012 due to challenging market conditions. A comprehensive review found that the 50-year-old smelter has no prospect of becoming financially viable. The two rolling mills serve the domestic and Asian can sheet markets which have been impacted by excess capacity. Alcoa of Australia operates the smelter where approximately 500 employees work. Alcoa Inc. operates the rolling mills which employ about 480 people." The Anglesea coal mine and power station that currently supplies approximately 40 percent of the power needs for the Point Henry smelter has the potential to operate as a stand-alone facility after the smelter closes. Alcoa of Australia will actively seek a buyer for the facility. Total 2014 restructuring-related charges associated with the closures outlined above are expected to be between $250M-$270M after-tax and non-controlling interest, or 22c-25c per share, of which approximately 60% would be recorded in Q1. Cash costs during 2014 are expected to total approximately $160M. The closures will reduce Alcoa’s global smelting capacity by 190,000 metric tons and reduce Alcoa’s can sheet capacity by 200,000 metric tons. Including the closure of the Point Henry smelter, Alcoa has announced closures or curtailments representing 551,000 metric tons of smelting capacity, exceeding the 460,000 metric tons placed under review in May 2013. Once the Point Henry closure is complete, Alcoa will have total smelting operating capacity of approximately 3,760,000 metric tons, with approximately 655,000 metric tons, or 17 percent, of high cost capacity offline.
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October 23, 2014
16:16 EDTAAAlcoa to sell ownership stake in Mt. Holly Smelter to Century Aluminum
Alcoa (AA) announced that it has reached an agreement to sell its ownership stake in the Mt. Holly aluminum smelter in Goose Creek, South Carolina, to Century Aluminum Company (CENX) for $67.5M in cash, plus an additional potential earn-out. Mt. Holly is owned 50.3% by Alcoa and 49.7% by Century. The sale is subject to customary regulatory approvals, and is expected to close by the end of Q4. Based on current estimates, the transaction will not result in a significant gain or loss to Alcoa.
16:09 EDTAACentury Aluminum to acquire full ownership of Mt. Holly Smelter for $67.5M
Century Aluminum Company (CENX) announced that its wholly owned subsidiary has entered into a definitive agreement to acquire Alcoa's (AA) 50.3% stake in the Mt. Holly aluminum smelter. Mt. Holly, located in Berkeley County, South Carolina, employs approximately 600 people and has an annual production capacity of 229,000 metric tons of primary aluminum. Following the closing of the transaction, Century will own 100% of Mt. Holly. Pursuant to the terms of the agreement, Century will acquire Alumax of South Carolina, a subsidiary of Alcoa and owner of Alcoa's 50.3% interest in Mt. Holly, for $67.5M in cash less certain amounts owed by Alumax to Mt. Holly and subject to working capital and other similar adjustments. The transaction is expected to close in Q4 and is subject to customary closing conditions.
October 15, 2014
09:02 EDTAAAlcoa to sell stake in Jamalco to Noble
Alcoa and Noble Group announced the signing of a definitive agreement that will result in Alcoa World Alumina and Chemicals selling 100% of its ownership stake in the Jamalco bauxite mining and alumina refining joint venture to Noble for $140M. AWAC will continue as the managing operator for three years under a compensated service agreement and employees will remain employed by Jamalco. The Jamalco joint venture is 55% owned by Alcoa Minerals of Jamaica and 45% owned by Clarendon Alumina Production. AMJ is part of the AWAC joint venture, owned 60% by Alcoa and 40 percent by Alumina. CAP is a company wholly owned by the Government of Jamaica. The sale is subject to customary regulatory approvals, and is expected to close by the end of Q4. As a result of the transaction, Alcoa will record a non-cash loss of approximately $80M-$100M, or between 7c-9c per share, after-tax and non-controlling interest in Q4. This sale is in line with Alcoa’s strategy to create a globally competitive commodity business.
09:01 EDTAAAlcoa to sell stake in Jamalco to Noble
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October 14, 2014
16:00 EDTAAOptions Update; October 14, 2014
iPath S&P 500 VIX Short-Term Futures down 40c to 39.11. Option volume leaders: AAPL TSLA TWTR AMZN GILD C JNJ AA NFLX PBR according to Track Data.
October 13, 2014
09:39 EDTAAActive equity options trading on open
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