Yesterday, the Ministry of Electricity & Renewable Energy announced the new electricity prices for the different sectors, with average extra-high voltage cost rising by 9% to EGP1.05 vs. EGP0.964, effective 1 July 2019. This should drive Egypt Aluminum’s (EGAL) average kWh cost higher to EGP1.11 (or USD0.063) in FY2019/20 vs. EGP1.01 (or USD0.056) in FY2018/19. This compares to our previous estimates of EGP1.24 (or USD0.064). Although the kWh costs came slightly lower than our estimates (-1.6% in USD terms), we cut our 12M PT by 40% to EGP15.8/share. This is mainly attributed to two main reasons:
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