Falling aluminium premiums hit Noble’s metals division in H1

Profit at Noble Group’s mining and metals division slumped to $3 million (before interest and tax) in the first half of 2015, down 98% from a year earlier due to sharp falls in aluminium premiums and fundamental demand weakness.

Aluminium premiums fell by over 70% in the first half of the year due on market oversupply, falling stocks in London Metal Exchange-approved warehouses and tighter spreads.
Noble holds aluminium for distribution to customers, but “price risk consists of two components [including] a premium risk which cannot be hedged effectively,” the company said in its results announcement for the period.
The metals and mining division posted a loss of $50 million in the three months ended June 30 2015, compared with a profit $109 million a year earlier.

The division’s operating income swung to a loss of $19 million in the second quarter, compared to income of $161 million a year earlier,...


Charlotte Radford

August 10, 2015

15:57 GMT