TORONTO, ON – May 7, 2007 – Global Alumina Corporation (TSX: GLA.U) (the “Company” or “Global Alumina”), a company developing an alumina refinery located in the bauxite-rich region of the Republic of Guinea (the “Sangar&eactute;di Refinery Project”), announced today its financial and operating results for the three-month period ending March 31, 2007. 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.
First Quarter 2007 Financial Highlights (1)
- Construction-in-progress rose $14.6 million, or 7.6%, to a total of $206.9 million from $192.3 million.
- For the quarter, the company recorded a net loss of $5.9 million ($0.03 per share) compared with a net loss of $3.9 million ($0.02 per share) for the same quarter in 2006.
- As of March 31, 2007 the Company had drawn down $50 million of the $100 million secured loan facility agreement with BHP Billiton, DUBAL and Mubadala or their respective affiliates entered into on November 5, 2006.
Significant Corporate Events
During the quarter the Company continued the refinery project’s early works phase and, jointly with its prospective joint venture partners, completed a verification study of the Company’s engineering work to date. The next step, the feasibility study and continued early works phase, was initiated on April 1, 2007 and is expected to be completed by year-end 2007 and to culminate in completion of the refinery project’s debt financing shortly thereafter. The project schedule and capital cost estimate will be further defined and developed as part of the feasibility study.
Execution of Subscription Agreement With BHP Billiton, DUBAL and Mubadala
On April 27, 2007 Global Alumina, Global Alumina International Ltd. and Guinea Alumina Corporation Ltd., wholly-owned subsidiaries of the Company, and Broken Hill Proprietary Company Pty Limited (“BHP Billiton”), Dubai Aluminum Company Limited (“DUBAL”) and Mubadala Development Company PJSC (“Mubadala”) executed the subscription agreement (the “Subscription Agreement”) to form a joint venture to develop and operate the Sangar&eactute;di Refinery Project in the Republic of Guinea. Upon completion of the Subscription Agreement, expected to occur on May 17, 2007, the joint venture partners will acquire a 66.6 percent interest in the project for aggregate proceeds of $260 million payable $151.1 million upon completion and, subject to the Sangar&eactute;di Refinery Project achieving certain future milestones, three additional payments totaling $108.9 million.
Graham Morrey Appointed President of Global Alumina
On April 25, 2007 the Company’s Board of Directors appointed Mr. Graham Morrey President of Global Alumina effective May 1, 2007. Mr. Bernard Cousineau, who has been President and Chief Operating Officer of the Company since May 2004, is stepping down from these positions as a result of the new joint venture arrangements. Mr. Cousineau will retain his position on the Board, serve as the Company’s senior operations’ advisor and focus on growing the Company’s Aluminpro aluminium industry consulting practice.
Mr. Morrey joined the Company in September 2004 as Senior Vice President Strategy and Planning, and was promoted in May 2006 to Executive Vice President and Chief Development Officer. He has 40 years’ experience in engineering and engineering management, mostly related to the preparation and implementation of major industrial, energy and infrastructure projects in Emerging Markets. Prior to his employment by Global Alumina, for over eighteen years, he was the Managing Director Europe for the Hatch Group and Director responsible for Hatch Kaiser Light Metal Projects in the Region.
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 of March 31, 2007, and represent comparisons between the three-month period ended March 31, 2007, and the equivalent three-month period ended March 31, 2006.