Kaiser Aluminum declares force majeure at Warrick Rolling Mill (NASDAQ:KALU)

Kaiser Aluminum declares force majeure at Warrick Rolling Mill (NASDAQ:KALU)

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Kaiser Aluminum (NASDAQ:KALU) -1.7% post-market on Thursday after declaring force majeure at its Warrick Rolling Mill in Indiana, citing limited availability of magnesium used in the production of certain aluminum beverage and food packaging products.

Kaiser (KALU) anticipates production and deliveries will be reduced by 30%-40% in July and ~50% during the rest of Q3.

As previously disclosed, US Magnesium, Kaiser Warrick’s largest supplier of magnesium, declared force majeure last September; while US Magnesium had continued to supply roughly half its contractual commitment, deliveries recently stopped, and Kaiser Warrick has been unable to immediately source additional magnesium from alternative sources.

Kaiser (KALU) also warned that continuing performance difficulties at Alcoa’s Warrick Operations facility and the resulting impact on delivery of molten aluminum “continue to impact the financial and operational performance” of Kaiser Warrick and the company.

Kaiser Aluminum (KALU) is “a good opportunity for long-term dividend investors,” Carles Diaz Caron writes in a bullish analysis published on Seeking Alpha.

Originally Posted on: https://seekingalpha.com/news/3855195-kaiser-aluminum-declares-force-majeure-at-warrick-rolling-mill?source=feed_tag_commodities

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