10 Best Mineral Stocks to Buy Right Now

3. Alcoa Corporation (NYSE:AA)

Number of Hedge Fund Holders: 40

Alcoa Corporation (NYSE:AA) operates across the U.S., Spain, Australia, Iceland, and other international markets. It produces bauxite, alumina, and aluminum products. The company serves the transportation, construction, packaging, and manufacturing industries through its two segments; Alumina and Aluminum.

For Q4 which ended on December 31, 2024, Alcoa Corporation (NYSE:AA) reported a 20% sequential increase in revenue, bringing it to $3.5 billion. Higher realized prices and increased shipments led to a 45% increase in the alumina segment’s third-party revenue. On the other hand, higher prices resulted in a 5% increase in the aluminum segment’s third-party revenue. As a result, net income rose from $90 million in Q3 2024 to $202 million in Q4, doubling earnings per share to $0.76. The improvement in pricing, shipments, and energy costs led to an increase of $222 million in adjusted EBITDA. Additionally, the company’s profitability improvement program led to $675 million in realized savings by the year-end.

The year 2024 marked record production at five of the company’s 11 smelters. Alcoa Corporation (NYSE:AA) was able to improve its relationship with key customers and suppliers while enhancing its value-added aluminum products. Furthermore, the company began 2025 on a strong note by completing the acquisition of Alumina Limited. This acquisition strengthens the company’s market position as a pure-play, upstream aluminum producer. The company’s financial health looks robust as it repaid $385 million in debt while maintaining its quarterly dividend.

Looking ahead, Alcoa Corporation (NYSE:AA) expects alumina production of somewhere between 9.5 million and 9.7 million tons in 2025, while recording shipments of 13.1 million to 13.3 million tons. Furthermore, targeted aluminum production stands at 2.3 million to 2.5 million tons, while shipments are projected between 2.6 million and 2.8 million tons. The company anticipates growth in 2025 driven by $700 million in capital expenditures, the majority of which is directed toward sustaining operations while $75 million is directed toward growth initiatives.

Although alumina production remains costly, Alcoa Corporation (NYSE:AA) believes in the effectiveness of its cost-saving initiatives, strategic plays, and operational efficiencies. Thus, analysts project a 15% price appreciation in the company’s stock over the next year, attributing it to aluminum price recovery and continued growth of the company.