TORONTO, ON,- Global Alumina Corporation (TSX: GLA.U) today announced that the Company’s Board of Directors has approved its financial and operating results for the three- and nine-month periods ended September 30, 2006. The 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 Highlights include:
- a net loss for the three month period ended September 30, 2006 of $4.4 million, $0.02 per share, compared to a net loss for the three month period ended September 30, 2005 of $3.4 million, $0.03 per share;
- cash and cash equivalents of $10.0 million, including $3.1 million of restricted cash, at September 30, 2006 compared to $86.7 million, including $15.3 million of restricted cash at December 31, 2005;
- construction-in-progress increased by approximately $96.3 million to $172.1 million at September 30, 2006 from $75.8 million at December 31, 2005; and
- during the nine-month period ended September 30, 2006, a total of 22,164,399 warrants were exercised for proceeds of $33,232,849 and an additional 1,878,850 warrants expired unexercised.
Subsequent to the end of the quarter, as previously announced on November 5, 2006, the Company also entered into an agreement pursuant to which it has entered into exclusive negotiations with BHP Billiton, Dubai Aluminium Company Limited and Mubadala Development Company PJSC to form a joint venture to develop and operate the Company’s alumina refinery project in the Republic of Guinea (the “Project”). The Company and the proposed participants also entered into a Loan Facility Agreement pursuant to which the proposed participants (or related companies) have agreed to provide interim financing of up to $100 million to fund project expenditures incurred up to the date definitive joint venture agreements are entered into.
“I am very pleased with the progress that Global Alumina has continued to make with respect to the implementation of its plan for the construction of the world’s largest greenfield alumina refinery in the Republic of Guinea. Since the beginning of the year, we have added $96 million to construction work in progress, building infrastructure and laying the groundwork for the major construction mobilization to begin over the next year” said Bruce Wrobel, CEO of Global Alumina, adding “I am also quite happy with the keen interest shown during the third quarter by many industry and financial investors with respect to potential investments in the Company and the Project. Our recently announced agreement to enter into exclusive negotiations with BHP Billiton, Dubai Aluminium Company and Mubadala Development Company is expected to result in a final agreement that will bring significant additional industry experience to the Project, provide ongoing development and construction funding, and finalize the sourcing of all of the Project equity requirements. Finally, I am proud of our achievements on the ground in Guinea as we see an ever increasing number of Guineans completing training and joining the nearly 600 Guineans currently working on various aspects of construction.”
About Global Alumina
Global Alumina is a company that intends to use the vast bauxite resources of Guinea to produce alumina for sale to the global aluminum industry. Global Alumina is positioned to be one of the largest companies focused solely on alumina production and sales, and offers 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 Bok&eactute;, Guinea and has administrative offices in New York, London, Montreal and Conakry, Guinea. For further information visit our website at www.globalalumina.com.
This press release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included herein, including without limitation statements regarding future plans, goals and objectives of Global Alumina, are forward-looking statements that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned to not place undue reliance upon the forward-looking statements included herein.