Why has the Alumina (ASX:AWC) share price rocketed 20% in the last week?

Here’s what’s boosted the Alumina share price this week…

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The Alumina Limited (ASX: AWC) share price has had a brilliant week on the ASX despite silence from the company. While there’s been no news from Alumina this week, its shares have seen a surge in activity.

For context, over the past 4 weeks, an average day saw 10.5 million Alumina shares traded. However, that number has been surpassed every day this week.

Prior to today, the most active day for Alumina’s shares this week was Wednesday, when 22.8 million were traded. So far today 28.32 million have swapped hands in around 8,700 transactions.

Additionally, the Alumina share price has gained 8.02% today. It’s currently sitting at $2.02.

Not bad considering it started this week at just $1.68.

Let’s take a look at the latest news from the bauxite mining, alumina refining, and aluminium smelting company.

The latest news from Alumina

The last time the market heard news from Alumina was on 24 August when the company released its half-year results.

The market responded positively to the company’s earnings for the 6 months ended 30 June 2021. The Alumina share price gained 1.8% on the back of the release.

While the company reported that its profits had fallen over the period, it did boost its dividend by 21%.

The price of alumina increased over the first half of 2021. However, so did Alumina’s production and freight costs.

According to Alumina, demand for its products is now back to pre-pandemic levels. Additionally, it expects the shipping delays and lack of ships that damaged its bottom line to abate in the near future.

Therefore, it might be reporting a better outcome for the second half.

Alumina share price snapshot

The Alumina share price’s recent gains have placed it back in the green.

Right now, it is 8% higher than it was at the start of 2021. It has also gained 32% since this time last year.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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