Global Alumina Releases 2012 Year-End Results

Thu Mar 28, 2013 5:12pm EDT

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TORONTO,  March 28, 2013  /PRNewswire/ -- 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 its financial and operating results for the year ended  December 31,
2012.  

The 2012 annual audited consolidated financial statements and accompanying notes
and management's discussion and analysis relating thereto can be viewed or
printed from the Company's SEDAR reference page at  www.sedar.com.  All dollar
amounts are in U.S. dollars and financial information has been prepared in
accordance with International Financial Reporting Standards.

2012 Financial Highlights

* For the year ended  December 31, 2012, the Company reported a net loss of
approximately  $104.6 million  ($0.57  per share), including a  $135.7 million 
non-cash impairment charge and  $53.8 million  net gain on derivative
instruments, compared to a net loss of approximately  $130.6 million  ($0.71 
per share), including a  $95.5 million  non-cash impairment charge and a  $44.4
million  net loss on derivative instruments, for the same period in 2011.   
* At  December 31, 2012, the Company had working capital of about  $1.3 million 
versus  $22.9 million  (including restricted cash) at  December 31, 2011.  In
2012, the joint venture partners contributed capital of  $50.7 million  towards
the approved Project budget with the Company contributing its  $16.9 million 
one-third share.  Subsequent to year-end, the joint venture partners contributed
an additional  $2.1 million  towards the Project, with Global Alumina
contributing its  $0.7 million  one-third share.  
* As of  December 31, 2012, the Company had unrestricted cash of  $2.1 million 
(2011 -  $6.0 million) and $nil escrowed cash (2011 -  $16.7 million).  As of 
December 31, 2012, the Company had an accumulated deficit of  $220.5 million 
(2011 -  $116.8 million).  
* The audited annual consolidated financial statements of the Company for the
year ended  December 31, 2012  have been prepared on a going concern basis. 
However, the Company's liquidity position has deteriorated significantly and the
Company's ability to continue as a going concern is dependent on management's
ability to secure an injection of financing to fund its near-term capital
commitments and ongoing operating requirements.  These conditions raise
substantial doubt about the Company's ability to continue as a going concern.

The Company's 2012 annual filings, including its audited consolidated financial
statements and accompanying notes and management's discussion and analysis for
the year ended  December 31, 2012, together with the Company's Annual
Information Form, are available under its profile on SEDAR at  www.sedar.com.   

About Global Alumina

Global Alumina is in a joint venture through its wholly-owned subsidiary, Global
Alumina International, Ltd., with The Broken Hill Proprietary Company Pty
Limited ("BHP"), Dubai Aluminium Company Limited and MDC Industry Holding LLC
(as successor to Mubadala Development Company PJSC), to develop an 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"  or
contains "forward looking statements", which reflects management's current
expectations regarding the Company's future objectives, plans, goals,
strategies, growth, results of operations, performance and business prospects
and opportunities.  In this press 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 the Project and their respective business, 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 events, performance or results, and will not necessarily be accurate
indications of whether or not or the times at, or by which, such events,
performance or results will be achieved.  In particular, this press release
contains forward looking information pertaining to the following: the adequacy
of the Company's financial condition and cash resources and its ability to
continue to fund the Project and ongoing general corporate, working capital and
operating requirements and its ability to continue as a going concern; the
Company's ability to raise capital or pursue a strategic transaction; the
Company's estimated costs and commitments; the Company's ability to complete the
transactions contemplated under the share purchase agreement with BHP; the
ability of the Company to realize any cost savings from its expense reduction
and cash management activities; and the Company's ability to obtain any
necessary shareholder and TSX and other regulatory approvals in connection with
the Company's capital raising activities or any strategic alternatives, among
other things.

A number of factors could cause actual events, performance and results to differ
materially from those discussed in the forward looking information, including,
but not limited to: the inability of the Company to raise capital or source new
financing to fund the transaction with BHP, its on-going obligations relating to
the Project and general corporate, working capital and operating expenses,
pending a sale of the Company and to continue as a going concern; the inability
of the Company to satisfy the conditions to closing the transaction with BHP;
the inability of the Company to implement a strategic transaction on terms that
are favorable, or at all; the potential dilution to existing shareholders from
any capital raise; unanticipated liabilities of Global Alumina at the corporate
level or pursuant to its contractual arrangements and its inability to obtain
additional financing to fund such obligations; the possibility that the value of
the Company's assets could deteriorate significantly; potential legal and
regulatory proceedings; changes or disruptions in the securities or credit
markets or in the trading price or liquidity of the Company's shares; the loss
of any interest in the Project or its ability to vote on Project matters or
dispose of its Project interests as a result of its inability to fund its share
of Project costs or the occurrence of some other enforceable breach under the
Project shareholders' agreement; the Company's dependence on its interest in a
single asset; the possible forfeiture of the mining concession area near
Sangaredi in certain circumstances and the risks and factors related to the
business of the Company discussed under the heading "Risk Factors" in the
Company's Annual Information Form dated  March 28, 2013, to which reference
should be made.

The forward looking information contained in this press release is based on
various assumptions, including among other things: that conditions and
circumstances will not be materially adverse to the Company raising additional
capital imminently needed; that the Project will remain a viable asset; that the
Company will be able to continue as a going concern; that completion of the
transactions with BHP will be successfully concluded; and that the Company's
shares will remain listed and posted for trading on the TSX.  Although the
forward looking information contained in this press release is based upon what
management of the Company currently believes are reasonable assumptions, Global
Alumina cannot assure investors that actual events, performance or results will
be consistent with this forward looking information.  Global Alumina cautions
readers that the above lists of factors and uncertainties and those described
under "Risk Factors" in the Company's most recent Annual Information Form are
not exhaustive.  There can be no assurance that the actual results, performance,
or events anticipated by the Company will be realized or, even if substantially
realized, that they will have the expected consequences to, or effects on, the
Company.  Investors and other readers are urged to consider these risks and
uncertainties carefully in evaluating any forward looking information and are
cautioned not to place undue reliance on any such information.  If the
assumptions underlying forward looking information prove incorrect or if risks
or uncertainties materialize, actual events, performance or results may vary
materially from those anticipated in this discussion.  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, please contact:    
 
Michael Cella                              
 Global Alumina                              
 212 351 0010                                
 cella@globalalumina.com                     


SOURCE  Global Alumina Corporation

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