Global Alumina Releases First Quarter 2009 Results



    TORONTO, May 8 /CNW/ -- Global Alumina Corporation (TSX: GLA.U) (the
"Company" or "Global Alumina"), a corporation participating in a joint venture
to develop an alumina refinery, mine and associated infrastructure in the
bauxite-rich region of the Republic of Guinea (the "Project"), announced today
its financial and operating results for the three month period ended March 31,
2009.  The text of the quarterly unaudited financial statements and
management's discussion and analysis can be viewed or printed from the
Company's SEDAR reference page at www.sedar.com.  All dollar amounts are in
U.S. dollars.
    

    First Quarter 2009 Financial Highlights(1)
    --  For the three months ended March 31, 2009, the Company contributed
        capital to the Project joint venture totalling $20.0 million to fund
        its one-third share of construction and development costs.
    --  As of March 31, 2009, the joint venture company, Guinea Alumina
        Corporation, Ltd. ("Guinea Alumina"), has capitalized into
construction
        in progress $560.4 million, of which $45.0 million relates to first
        quarter 2009.
    --  The board of directors of Guinea Alumina approved a cumulative work
        plan and budget of $65.7 million from January 2009 through June 2009.
    --  In January 2009, the Company received the second deferred subscription
        payment of $33.3 million from its joint venture partners.  A third
        deferred subscription payment of $33.3 million remains due to the
        Company on achievement of specified milestones.
    --  As at March 31, 2009 and May 8, 2009, respectively, the Company had
        unrestricted cash of $12.4 million and $23.1 million and restricted
        cash totalling $81.2 million and $69.9 million in its escrow account
to
        fund future Project capital calls.
    --  For the three months ended March 31, 2009, the Company reported a net
        loss of $1,373,878 ($0.01 per share), compared with a net loss of
        $1,479,363 ($0.01 per share) for the same period in 2008.

    --  Interest income for the quarter was $288,404.

    
    The Company expects that funds on hand as of May 8, 2009 will be
sufficient to enable it to meet its corporate operating expense requirements
through 2012 and to fund its one-third share of Project development cash calls
at least through to finalization of debt financing for the Project.
    

    Significant Corporate Events

    Receipt of subscription monies
    
    On December 30, 2008, the Company and the joint venture partners entered
into a deed of acknowledgement and release (the "Deed of Acknowledgement and
Release") pursuant to which the second deferred subscription payment of
approximately $33.3 million was made in January 2009.  The parties also agreed
that upon the official publication of the order transferring the Project's
Guinean mining concession from the Company to Guinea Alumina's operating
subsidiary and the expiration of a 65 day challenge period, the parties would
deem the Title Transfer Date (as defined in the subscription agreement between
the Company, its subsidiary, Guinea Alumina and the joint venture partners) to
have occurred and certain warranties and indemnities provided by the Company
to the joint venture partners in connection with title to Project's mining
concession would be terminated and $11.3 million, representing 15% of the
first and second deferred subscription payments, would be released from escrow
and become freely available.  The order was published in the Official Journal
of the Republic of Guinea on December 22, 2008 and the challenge period
expired on February 25, 2009.

    Upon a review by the joint venture partners of the minutes of a report of
a bailiff of the Guinean Courts certifying no challenges to the order had been
raised during the challenge period, each of the joint venture partners
confirmed in April 2009 their satisfaction with the process of transfer of the
title to the Project's mining concession, and pursuant to the Deed of
Acknowledgement and Release the parties deemed the Title Transfer Date to have
occurred.
    

    Project development timing

    
    During the first quarter, the joint venture board directed management to
conduct a comprehensive review of the Project's proposed development plan with
the intention to examine ways to capture the cost reduction opportunities
provided by a cooling world economic climate and to enhance the Project's
readiness in the near term by maintaining work in Guinea and improving the
capacity of Guinean individuals and institutions through training and skills
development.  The revised development plan will be considered at a future
meeting of the joint venture partners.  Global Alumina expects a revised
development plan to be approved no later than the end of 2010, although the
timing and outcome of any decision remains uncertain.  Meanwhile, Guinea
Alumina's management team is preparing for board approval detailed plans and
budgets for the period from July 2009 through December 2010 that Global
Alumina expects to total no more than $94 million, of which the Company would
be responsible for its one-third share.

    (1) Unless otherwise stated, all financial figures discussed in this
announcement are unaudited, prepared in accordance with Canadian generally
accepted accounting principles for interim financial statements, expressed in
U.S. dollars as at March 31, 2009, and represent comparisons between the three
month period ended March 31, 2009 and the equivalent period ended March 31,
2008.
    

    About Global Alumina
    
    Global Alumina and its joint venture partners are developing a 3.6
million metric tons per annum nominal capacity alumina refinery located in the
bauxite-rich region of the Republic of Guinea.  The joint venture partners in
the Project are Global Alumina International, Ltd., a wholly owned subsidiary
of the Company, BHP Billiton, Dubai Aluminium Company Limited and Mubadala
Development Company PJSC.  The Project is one of the most advanced new
projects in Guinea with the refinery already in feasibility stage and critical
path infrastructure and site work already underway.  Global Alumina is
positioned to be one of the only companies focused solely on alumina
production and sales.  The Company offers a first mover advantage over other
projects in the region and an opportunity for socially responsible investing
in a country that holds over one-third of the world's bauxite resources. 
Global Alumina is headquartered in Saint John, New Brunswick with operations
in Boke, Guinea and has administrative offices in New York, London, Montreal
and Conakry, Guinea. For further information visit the company's website at
www.globalalumina.com.
    

    Forward Looking Information
    
    Certain information in this press release is "forward looking
information", which reflects management's expectations regarding the Company's
future growth, results of operations, performance and business prospects and
opportunities.  In this release, the words "may", "would", "could", "should",
"will", "intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate" and "expect" and similar expressions, as they relate to the Company
and its assets and interests, are often, but not always, used to identify
forward looking information.  Such forward looking information reflects
management's current beliefs and is based on information currently available
to management.  Forward looking information involves significant risks and
uncertainties, should not be read as a guarantee of future performance or
results, and will not necessarily be accurate indications of whether or not or
the times at, or by which, such performance or results will be achieved.  In
particular, this discussion contains forward looking information pertaining to
the following: the decisions of the joint venture with respect to the conduct
of the Project; the approval of the proposed development plan with respect to
the Project and the making of a decision by the joint venture partners to
proceed with the development of the Project and the timing of such decision;
the outcome of the review by the Government of Guinea of agreements for
compliance purposes; expectations regarding the financing of the Project, the
terms, timing and amount of financing and the sources of financing for the
Project; the amount, nature and timing of capital expenditures to complete the
Project; the timing of refinery construction and mine start up; future
production levels; expectations regarding the negotiation of contractual
rights; prices for alumina and aluminium; operating and other costs; the
negotiation and terms of agreements relating to the access of the Project
joint venture to and use of certain infrastructure required for the
development and operation of the Project; recognition by the new political
regime in Guinea of historical agreements negotiated by the previous
government, and general business strategies and plans of management with
respect to the Project.  A number of factors could cause actual results to
differ materially from the results discussed in the forward looking
information, including, but not limited to: the failure or delay in obtaining
debt financing for the Project; the limited control by the Company of the
assets and operations of the Project and its inability to make major decisions
with respect to the Project without agreement from the other joint venture
partners; the requirement that the Company hold a portion of subscription
proceeds received pursuant to the Subscription Agreement in escrow and the
possibility the Company may need to seek additional financing to fund
corporate expenses; the amount of debt financing available to the Project
being insufficient to fund the Project to complete development; the inability
of the Company to raise sufficient financing to fund its share of the
development costs of the Project in excess of the maximum Project debt
financing; the possibility that the Company's interest will be diluted if it
is unable to meet a capital call with respect to the Project; the current
political and economic risks of investing in a developing country; recent
political events in Guinea and the establishment of a new government and the
policies of such new government; material changes to the cost estimates and
time estimates for development of the Project and changes in the world economy
causing such estimates to become inaccurate; a decision by the joint venture
partners to delay the Project or not to proceed with the Project; construction
risks such as cost overruns, delays and shortages of labour, materials or
equipment; the Company's dependence on an interest in a single asset; the
possible forfeiture of the Project's Guinean mining concession in certain
circumstances; operational risks such as access to infrastructure and skilled
labour; currency fluctuations; price volatility of alumina, aluminium or raw
materials and certain other factors related to the Project discussed under the
heading "Risk Factors" in the Company's Annual Information Form.

    The forward looking information contained in this discussion is based on
the following principal assumptions: that the data, estimates and projections
in the bankable feasibility study of the Project are within the range of
accuracy suggested therein; that the joint venture partners will agree on a
timely schedule for development of the Project and will make a decision to
proceed with the Project upon approval of the development plan by the end of
2010 and that notice to proceed will be given within six months thereafter;
that general economic conditions will not become adverse to the completion of
financing for the Project and will have no material adverse impact on the
Project; that the negotiations with prospective Project lenders and between
the prospective Project lenders and the Guinean government will resume and be
successfully concluded; that the bidding process for contracted work in
connection with the Project will be completed in a competitive manner and that
actual costs to complete work will be within the range of quotes provided by
contractors to date; that the joint venture will be able to acquire necessary
labour at currently assumed labour costs and productivity rates; that once
approved the development plan for the Project is conducted according to
schedule; that general economic factors and trends relating to construction
costs remain constant or improve and that the future political and economic
climate in Guinea has no material adverse effect on the Project and that the
new political regime continues to recognize agreements negotiated by the
previous government.  Although the forward looking information contained in
this discussion is based upon what management of the Company believes are
reasonable assumptions, Global Alumina cannot assure investors that actual
results will be consistent with this forward looking information.  If the
assumptions underlying forward looking information prove incorrect or if other
risks or uncertainties materialize, actual results may vary materially from
those anticipated in this release.  This forward looking information is made
as of the date of this press release, and Global Alumina assumes no obligation
to update or revise it to reflect new events or circumstances, except as
required by applicable law.
    


    




For further information:

For further information: Michael Cella, Global Alumina, +1-212-351-0010,
cella@globalalumina.com; or Barbara Cano, Breakstone Group, +1-646-452-2334,
bcano@breakstone-group.com Web Site: http://www.globalalumina.com

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