BUZZ-Australia's South32 rises as Morningstar says Alcoa deal boosts growth funding

Alcoa Corporation

Alcoa Corporation

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Updates

** South32 S32.AX rises as much as 2.4% to A$4.26

** Morningstar analysts view the miner's asset sale to Alcoa favourably, noting proceeds will help bankroll growth projects

** On Wednesday, co said it would sell its bauxite, alumina and the bulk of its aluminium assets to Alcoa for an enterprise value of up to $5.6 billion

** Morningstar says proceeds will place S32 in good stead to fund remaining development costs for its Taylor zinc-lead-silver project in Arizona

** Co also announced its Chile Sierra Gorda joint venture approved a fourth grinding line expansion to lift processing capacity by about 25%

** Morningstar lifts its fair value estimate for co to A$4.10/share, up by 5%

** Stock up 8.2% through Friday, set for best week in over a month if trend holds

** YTD, stock up 18.9%




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