South32’s Aluminum Assets After The BHP Billiton Spinoff

Almost 29% of South32 revenue after the presumptive BHP Billiton will consist of Australian aluminum mining assets. Along with company’s silver/zinc division, aluminum will be the largest singular driver of investor returns. If you have been reading me for a while, you may wonder why I would have any kind of interest in this type of business at all, given my sharp disdain for Alcoa’s business model that I have covered in years past.

The summary of my writings on Alcoa previously have been something like this: Alcoa tends to be a troublesome cyclical to attach a buy-and-hold attitude towards because the (1) prices of aluminum is highly volatile and (2) the costs … Read the rest of this article!