Concord Resources doubled profits in 2018 on higher alumina and aluminium prices

The metals trading startup Concord Resources reported double profits in 2018 on account of price volatility in alumina and aluminium market driven by US sanctions on Rusal.

“It was a year of exceptional opportunities,” said Chief Executive Officer Mark Hansen. “The sanctions on Rusal created disruptions across the aluminium and alumina supply chain and we were able to execute on those opportunities outstandingly well.”

Concord registered a net income of US$43.4 million last year. After the U.S. sanctions on Rusal in April, alumina prices skyrocketed to more than US$700 a ton within a week. Concord has a long-term contract to buy alumina from a refinery in Louisiana. It also bought a stake in the parent company New Day Aluminum Holdings LLC.

Operating profit for Concord rose 77 per cent to US$106 million, according to the company’s accounts. Net profit stood at US$57 million, up from US$32 million in 2017. Revenue climbed to US$4.2 billion from US$3.4 billion in 2017. 

The trading house almost doubled its deliveries with metal and ore volumes increasing 65 per cent to stand at 2 million tonnes. Half of its total deliveries were towards aluminium and alumina followed by copper and zinc. Hansen said the company’s growth will moderate in 2019 as the aluminium and alumina market have stabilized after lifting of sanctions on Rusal and there will be fewer trading opportunities for the market participants.