Investment Rating - Industry rating: Recommended [6] Core Insights - The report highlights a 2% year-on-year increase in alumina production to 1.265 million tons and a 7% increase in electrolytic aluminum production to 298,000 tons in Q1 2025 [1] - The Worsley alumina plant produced 941,000 tons in Q1 2025, a 1.5% increase year-on-year, while Brazilian alumina production reached 324,000 tons, up 3.5% year-on-year [2][3] - The report indicates that the production targets for the fiscal year 2025 remain unchanged across various segments, including alumina and electrolytic aluminum [1][3][4] Production and Sales Summary - Worsley alumina sales were 910,000 tons, a 2% increase year-on-year, while Brazilian alumina sales were 323,000 tons, a 17% increase year-on-year [2][3] - Brazilian electrolytic aluminum production was 36,000 tons, a 38.5% increase year-on-year, while sales were 31,000 tons, a 3% decrease year-on-year [3] - Hillside electrolytic aluminum production decreased by 3.3% year-on-year to 175,000 tons, with sales down 18% year-on-year to 171,000 tons [4][5] - Mozal electrolytic aluminum production increased by 22.5% year-on-year to 87,000 tons, with sales down 18% to 72,000 tons [5][9] Financial Performance - The company reported a net cash increase of $299 million, reaching $252 million, attributed to strong operational performance and the release of working capital [16] - The company received $100 million from a subsidiary of Newmont related to an agreement with Worsley Alumina, which is expected to contribute approximately $94 million in pre-tax earnings for the fiscal year 2025 [16][17] - The company has completed 94% of its $2.5 billion capital management plan, with $158 million expected to be returned to shareholders by September 12, 2025 [18][19] Project Development Updates - The Hermosa project saw an investment of $355 million in growth capital expenditures to advance the Taylor zinc-lead-silver project and Clark battery-grade manganese exploration [20] - The company invested $26 million in greenfield exploration opportunities across multiple countries, including Australia, the U.S., Canada, Argentina, Namibia, and Ireland [21] - An additional $48 million was invested in existing business and development exploration projects, with significant capital allocated to the Hermosa project [22]