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Noble Group - Aluminium is light

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Publish date: Fri, 24 Oct 2014, 10:09 PM
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■ A small dollar-value deal (USD 140mn), but scope for confusion on execution of its asset-light strategy.

■ Alumina-aluminium is not an asset-light business, but paying 35 cents on the dollar for assets makes it asset light.

■ Resulting supply chain services could generate a payback on investment of c.5 years (20% return), on our estimates.

■ We see scope for deeper project relationships (e.g., coal supply) and a government of Jamaica relationship.
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