Global Alumina Releases Third Quarter 2009 Results
12 11월 2009 - 1:32AM
PR Newswire (US)
TORONTO, Nov. 11 /PRNewswire-FirstCall/ -- 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 nine month
periods ended September 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 http://www.sedar.com/. All dollar amounts are in
U.S. dollars. Third Quarter 2009 Financial Highlights(1) -- In the
first nine months of 2009, the Company contributed capital to the
Project joint venture totalling $34 million to fund its one-third
share of construction and development costs. -- At September 30,
2009, the joint venture company, Guinea Alumina Corporation, Ltd.
("Guinea Alumina"), had capitalized into construction in progress
approximately $590.8 million, of which $13.2 million relates to
third quarter 2009. -- The joint venture approved a cumulative work
plan and budget of $14.1 million from October 2009 through December
2009. -- As at September 30, 2009 the Company had unrestricted cash
of $14.0 million and escrowed cash of $56.1 million for funding
future Project capital calls and certain indemnities and warranties
given to the joint venture. -- For the three and nine months ended
September 30, 2009, respectively, the Company reported net losses
of $1,113,069 ($0.01 per share) and $4,728,896 ($0.02 per share),
compared with net losses of $1,278,594 ($0.01 per share) and
$4,619,473 ($0.02 per share) for the same periods in 2008. --
Interest income for the quarter was $135,145. 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. 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 Issuer Bid
expired on August 17, 2009. Based on the final report provided by
Computershare Investor Services Inc., the depositary for the Issuer
Bid, a total of 14,240,700 shares were validly deposited and not
withdrawn under the Issuer Bid and the highest purchase price
indicated under tenders was $0.65 per share. Pursuant to the terms
of the Issuer Bid, the Corporation took up shares at a purchase
price of $0.65, the highest offered price. As the aggregate value
of shares deposited at the purchase price of $0.65 per share
exceeded the $8,000,000 maximum value of consideration payable by
the Corporation pursuant to the Issuer Bid, 12,307,692 shares were
taken up by the Corporation and a pro ration factor of 0.864 was
applied to deposited shares, except for odd lot deposits, which
were not subject to pro ration. 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 http://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
http://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; and the timing of
refinery construction and mine start up; 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: 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. (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 September 30, 2009, and
represent comparisons between the three and nine month periods
ended September 30, 2009 and the equivalent period ended September
30, 2008. DATASOURCE: Global Alumina Corporation CONTACT: Michael
Cella, Global Alumina, +1-212-351-0010, ; or Barbara Cano,
Breakstone Group, +1-646-452-2334, Web Site:
http://www.globalalumina.com/
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