Oklo stock tumbles as Financial Times scrutinizes valuation
PITTSBURGH - Alcoa Corporation (NYSE:AA, ASX: AAI), the $10.1 billion aluminum giant with a "GREAT" financial health rating according to InvestingPro, announced Monday that the United States and Australian governments will advance the development of a gallium production facility at the company’s Wagerup alumina refinery in Western Australia.
This development follows a Joint Development Agreement signed in August 2025 between Alcoa and Japan Australia Gallium Associates Pty Ltd (JAGA), a joint venture between the Japanese Government and Sojitz Corporation. The company, which generated $12.8 billion in revenue over the last twelve months, has shown strong execution capability with a healthy current ratio of 1.65.
According to the non-binding agreement, the U.S. and Australian governments would join Alcoa in forming a special purpose vehicle to enter into a joint venture with JAGA. The parties would provide capital for feasibility studies and construction, receiving gallium offtake proportional to their investments.
The planned facility, to be operated by Alcoa, is expected to produce 100 metric tons of gallium annually. The parties are targeting 2026 for final investment decision and production commencement.
Gallium, naturally present in bauxite used in alumina production, is classified as a critical mineral essential for semiconductor manufacturing and defense applications. Currently, global gallium production is concentrated from a single source, creating supply chain concerns.
"Alcoa has been a strong contributor to both the American and Australian economies and welcomes the opportunity to support both nations in progressing a new source of gallium," said Alcoa President and CEO William F. Oplinger.
The company stated it will continue working with the Western Australian Government to advance the project under the State Agreement and approvals framework.
This information is based on a press release statement from Alcoa Corporation.
In other recent news, Alcoa Corporation reported its earnings for the second quarter of 2025, showing a revenue decrease of 10% to $3 billion. The company’s net income was $164 million, which equates to $0.62 per share, while the adjusted net income was $103 million or $0.39 per share. Despite the decline in revenue, Alcoa maintained positive free cash flow and a strong return on equity. The revenue dip has raised concerns among investors regarding the company’s market conditions. There were no reported mergers or acquisitions during this period. Additionally, analyst firms have not issued any recent upgrades or downgrades for Alcoa. These developments highlight the financial challenges Alcoa is facing in the current market environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.