How Board Changes at Aluminum Corp of China (SEHK:2600) Raise Questions About Its Global Sourcing Strategy

• On October 31, 2025, Aluminum Corporation of China announced the immediate resignation of Mr. Li Xiehua from his Board and committee roles, citing work requirements, with no disagreements or outstanding concerns reported.
• This development comes amid significant changes in Guinea’s bauxite sector, where tougher local refining mandates and revoked mining concessions are shifting global supply chains for aluminum producers.
• We’ll explore how Guinea’s push for domestic alumina processing could reshape Aluminum Corporation of China’s sourcing costs and operational priorities.

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What Is Aluminum Corporation of China's Investment Narrative?

To feel comfortable holding Aluminum Corporation of China right now, you'd need confidence in the company's ability to manage rapidly changing supply conditions and adapt to government-imposed requirements in key resource markets like Guinea. The recent board resignation of Mr. Li Xiehua appears to be routine and not driven by disagreement, so its direct impact on near-term catalysts, like earnings momentum and joint venture execution, should be limited. However, Guinea’s tightening of local refining mandates introduces meaningful operational risk, potentially increasing sourcing costs or disrupting raw material flows. While the company's recent earnings growth remains strong and its shares still trade well below some prevailing fair value targets, this shift in Guinea may become a more pressing factor in upcoming quarters, especially given the company’s history of board turnover and fresh management. In short, the Guinea development is a new variable that shareholders can't ignore.

Yet even with robust earnings, resource nationalism could affect future cost structures.

Aluminum Corporation of China's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

The Simply Wall St Community’s three separate fair value estimates for the stock span from just CNY2.58 up to a much larger CNY25.80, highlighting significant differences in outlook. While some see major upside, recent government action in Guinea adds risk that may weigh on future cost assumptions. Check these varied viewpoints to get a fuller picture of what could move the company’s performance.

Explore 3 other fair value estimates on Aluminum Corporation of China - why the stock might be worth less than half the current price!

Build Your Own Aluminum Corporation of China Narrative

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• A great starting point for your Aluminum Corporation of China research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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