Alumina owns 40% of the world's largest alumina business, Alcoa World Alumina and Chemicals (AWAC), with Alcoa owning and managing the other 60%.
AWAC mines and refines bauxite and produces and markets alumina to smelters around the world. It's also the world's largest producer of alumina. Interestingly, AWAC is a low-cost producer, with many operations in the lower-cost quartiles.
To be sure, Alumina Ltd. is a riskier play on the sector than Alcoa. But it trades at about $4.00 per share right now, below its book value of around $4.25 per share. And Morningstar's fair-value estimate is $11. (more)
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