NEWS
Aluminium   Banks  

Sarawak’s 1% sales tax on aluminium products exports may hurt Press Metal earnings: AmInvestment Bank

Sarawak’s decision to impose a 1 per cent sales tax on exported aluminium products from January 1 may end up hurting the earnings of Press Metal Aluminium Holdings Bhd in the future, estimates AmInvestment Bank, according to a report.

Based on the estimates, the new tax is likely to cost Press Metal by RM64 million and RM89 million in FY20-21, eroding FY20-21 net profit by 6 to 8 per cent and lowering FV by about 7 per cent to RM3.54 (based on the same 18x earnings multiple).

AmInvestment says Press Metal is currently seeking clarification from the state government on the new tax matter.

Furthermore, according to AmInvestment, earnings outlook for aluminium smelters globally is cloudy due to weak aluminium price and high input costs, resulting in margin squeeze.

Besides, the research house says the company’s valuations are at a premium versus its global peers, meaning the upside to its share price could be capped. 

"However, this is mitigated by Press Metal's recent signing of a 15-year power purchase agreement (PPA) with Sarawak Energy Bhd for the supply of 500MW of electricity, enabling it to power an additional annual aluminium smelting capacity of 320,000 tonnes," it said.

The research house believes the overall smelting capacity of Press Metal to grow by 42 per cent to 1.08 million tonnes by 2021 from 760,000 tonnes currently.

News No: 7233
Date: 2019/11/05 - 18:49
News Source: ALCIRCLE.COM

Sarawak  aluminium  Metal  AmInvestment Bank  PPA 

Comments:

Leave a Comment:

   
   
   
 

Alcoa-Rio Tinto venture sells first-ever commercial batch of carbon-free aluminium to Apple

According to Reuters report, Apple Inc has purchased the first carbon-free aluminium from a joint venture of Alcoa Corporation and Rio Tinto. The carbon-free aluminium was produced at the Alcoa Technical Center in Pittsburgh. Apple will take the delivery of the first batch of aluminium this month.
 

GIADEC says bauxite mining in Atewa Forest won’t affect water bodies in three key rivers

The Ghana Integrated Aluminium Development Corporation has assured that bauxite reserves in the Atewa Forest will not destruct the water bodies that source from the reserve. The three rivers, Birim, Densu and Ayensu provide drinking water to more than five million Ghanaians.
 

Alliance gets air permit for Arizona Al smelter

Arizona has granted prospective secondary aluminum smelter Alliance Metals an air permit, paving the way for the next steps in the project that is expected to break ground in mid/late 2020.
 

Innovative modular system from HB Protective Wear for metallised heat protection

One new product from the HB innovation workshop is the modular system for metallised heat protection. With the TEMPEX® TREME Heat System, users can select and combine the desired version from the equipment options and thus put together their work equipment individually. Two new materials and numerous features significantly increase wearing comfort.
 

Hindalco Industries hands over India’s first all-aluminium freight trailer to UltraTech Cement

Hindalco Industries Limited has handed over India’s first all-aluminium freight trailer in Rajasthan to Kamal Exim Pvt. Ltd., a leading Jaipur-based transporter of UltraTech Cement Limited. The 34-foot long aluminium freight trailer can ferry a wide range of materials such as cement, alumina, fly ash, grains, flour, steel coils and cylinders.
 

Erdwich presents fully-automated Solution for Material Recovery

Reprocessing is the first production step: Integration of shredding machines into foundry plants
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners