Global Alumina Releases Second Quarter 2009 Results



    


    
    TORONTO, Aug. 12 /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 and six month periods ended
June 30, 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.
    

    Second Quarter 2009 Financial Highlights(1)
    --  In the first six months of 2009, the Company contributed capital to
the
        Project joint venture totalling $28 million to fund its one-third
share
        of construction and development costs.
    --  As of June 30, 2009, the joint venture company, Guinea Alumina
        Corporation, Ltd. ("Guinea Alumina"), had capitalized into
construction
        in progress approximately $577.6 million, of which $17.2 million
        relates to second quarter 2009.
    --  The joint venture approved a cumulative work plan and budget of $15.8
        million from July 2009 through September 2009.
    --  As at June 30, 2009 the Company had unrestricted cash of $22.7 million
        and escrowed cash of $62.0 million for funding future Project capital
        calls and certain indemnities and warranties given to the joint
        venture.
    --  For the three and six months ended June 30, 2009, respectively, the
        Company reported net losses of $2,241,949 ($0.01 per share) and
        3,615,827 ($0.02 per share), compared with net losses of $1,861,516
        ($0.01 per share) and $3,340,879 ($0.02 per share) for the same
periods
        in 2008.

    --  Interest income for the quarter was $196,408.

    
    Assuming the development plan for the Project has not been approved and
the joint venture continues spending at the current rate, the Company's funds
in escrow will be sufficient to meet its one-third share of Project equity
requirements and unrestricted funds will be sufficient to enable it to meet
its corporate operating expense requirements, in each case, through June 2012.

    (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 June 30, 2009, and represent comparisons between the three
and six month periods ended June 30, 2009 and the equivalent period ended June
30, 2008.
    

    Significant Corporate Events
    Substantial Issuer Bid
    
    On July 10, 2009 the Company commenced a substantial issuer bid for up to
$8 million of its outstanding common shares (the "Issuer Bid") by way of a
"Dutch auction" with a range of tender prices available to shareholders
between $0.40 and $0.65 per share, inclusive.  The Dutch auction tender
process allows shareholders to individually select the price, within the
specified range, at which they are willing to sell all or a portion of their
common shares.  When the Issuer Bid expires, the Company will select the
lowest tendered price from the range of prices allowing it to buy up to $8
million of the common shares tendered to the bid.  All shares tendered at or
below the selected price level will be bought at the selected price level,
subject to pro ration in the event that the aggregate cost to purchase all of
the shares exceeds $8 million.  The Issuer Bid will expire on August 17, 2009
at 5:00 p.m. (Toronto time), unless the Company extends it.  The Company will
announce the purchase price and the results of the Issuer Bid by 9:00 a.m. the
following business day.  The Issuer Bid circular, offer to purchase and
related documents are available through SEDAR on the Company's reference page
and can be accessed through the Internet at www.sedar.com.
    

    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's registered office is in Saint John, New Brunswick and Global
Alumina has administrative offices in New York and Montreal.  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 release 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 adequacy of the Company's cash resources; expectations regarding the
financing of the Project; the amount, nature and timing of capital
expenditures to complete the Project; the timing of refinery construction and
mine start up; general business strategies and plans of management with
respect to the Project; and the number and price of shares the Company may
purchase pursuant to its Issuer Bid.  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: recent political events in Guinea
and the establishment of a new government and the policies of such new
government; the current political and economic risks of investing in a
developing country; a decision by the joint venture partners to delay the
Project or not to proceed with the Project; material changes to the cost
estimates and time estimates for development of the Project; unanticipated
liabilities of Global Alumina at the corporate level and the possibility the
Company may need to seek additional financing to fund corporate expenses;
operational risks such as access to infrastructure and skilled labour; 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 failure or delay in
obtaining debt financing for the Project; 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 Company's dependence on an interest in a
single asset; the possible forfeiture of the Mining Concession (as defined in
the Company's Annual Information Form dated March 26, 2009) in certain
circumstances; construction risks such as cost overruns, delays and shortages
of labour, materials or equipment; the possibility that the Company's interest
will be diluted if it is unable to meet a capital call with respect to the
Project; currency fluctuations; price volatility of alumina, aluminium or raw
materials and certain other factors related to the Project and the factors
related to the business of the Company discussed under the heading "Risk
Factors" in the Company's Annual Information Form dated March 26, 2009.

    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 be adverse to the completion of
financing for the Project and will have no material adverse impact on the
Project; that once the decision is made to proceed with the Project, the
Company will be able to finance its shares of Project costs; 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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Global Alumina Corporation

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