TORONTO, ON - November 11, 2011 - 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, 2011. 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.
Third Quarter 2011 Financial Highlights
• In the first nine months of 2011, the joint venture partners contributed capital of $40.5 million towards the approved Project budget with the Company contributing its $13.5 million one-third share.
• At September 30, 2011, Guinea Alumina Corporation, Ltd. (the joint venture company) had capitalized into construction in progress approximately $682.1 million, of which approximately
$14.3 million relates to the third quarter 2011.
• As at September 30, 2011, the Company had unrestricted cash of $7.0 million and $21.2 million in its escrow account to fund future Project capital calls.
• For the three and nine months ended September 30, 2011, respectively, the Company reported a net loss of $1,144,090 ($0.01 per share) and $3,343,206 ($0.02 per share), compared to a net loss of $1,029,567 ($0.01 per share) and $2,930,823 ($0.02 per share) for the same periods in
2010.
• Interest income for the quarter was $19,579 versus $30,022 in the third quarter of 2010.
At usage rates that the Company currently expects in 2012, funds in escrow will be sufficient to meet its one-third share of Project equity requirements through December 2012, and unrestricted funds will be sufficient to enable it to meet its corporate operating expense requirements through June 2013.
About Global AluminaGlobal Alumina is in a joint venture through its wholly owned subsidiary, Global Alumina International, Ltd., with BHP Billiton, Dubai Aluminium Company Limited and Mubadala Development Company PJSC, to develop a 3.6 million metric tons per annum steady state capacity alumina refinery in the bauxite-rich region of the Republic of Guinea. Global Alumina is headquartered in Saint John, New Brunswick and has administrative offices in New York, London 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; the adequacy of the
Company's cash resources; 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; 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
inability of the Corporation to fund its on-going expenses
pending a sale of the Corporation; recent political events in
Guinea and the transition to 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 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
inability of the Company to obtain additional financing to
fund corporate expenses; the possibility that the value of
the Company's assets could deteriorate; 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
690 square kilometre mining concession area near Sangarédi 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.
The forward looking information contained in this release 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 and the conclusions reached therein are still valid
as of the date of this release; that general economic and
political 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 sold or will
sell its interest in the Project prior to a decision to
proceed wit the Project being approved; 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 the new political
regime arising from the transition to a new government
continues to recognize agreements negotiated by the previous
government. Although the forward looking information
contained in this release 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 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, please contact:
Michael Cella
Global Alumina
212 351 0010 cella@globalalumina.com
Susan Borinelli
Breakstone Group
646 330 5907 sborinelli@breakstone-group.com