Alcoa to Move Ahead with Massena Modernization - Analyst Blog
April 01 2013 - 7:00AM
Zacks
Aluminum giant Alcoa Inc. (AA) announced that
it is ready to move into the next phase of modernizing its Massena,
N.Y. operations. The project is awaiting the Record of Decision
(ROD) regarding the cleaning of the Grasse River as proposed by the
Environmental Protection Agency.
Once Alcoa receives the ROD, the next step of modernization will
include on site work and support projects in preparation for the
construction of a new potline at the location’s Massena East plant.
By upgrading the operations, Alcoa will be able to cut down its
costs and move down the aluminum cost curve. Alcoa plans to invest
$52 million toward modernization including $10 million for economic
development.
Alcoa has entered into a contract with New York Power Authority
(NYPA), under which, NYPA will supply power to the operations in
Massena for a term of 30 years. Alcoa also has the option of
extending the contract with NYPA for another 10 years subject to
certain economic conditions.
Alcoa is the among the world leader with respect to production
and management of primary aluminum, fabricated aluminum, and
alumina as well as the world’s largest miner of bauxite and refiner
of alumina.
Last month, Alcoa was recognized by the Fortune magazine as the
“most admired” metals company in the world for the second time in a
row. The most admired list of Fortune is based on the surveys
conducted by executives, directors and analysts who rate companies
in their own industry. Out of the nine parameters that are required
for the recognition, Alcoa topped in seven of them.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks
Ranks are Atlatsa Resources Corporation (ATL),
Sandstorm Gold Ltd. (SAND) and Paramount
Gold and Silver Corp. (PZG). All of them hold a Zacks Rank
#2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ATLATSA RESRCS (ATL): Free Stock Analysis Report
PARAMOUNT GOLD (PZG): Get Free Report
SANDSTORM GOLD (SAND): Get Free Report
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