Global Alumina Releases Year-End 2009 Results

    


    
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<p><span class="xn-location">TORONTO</span>, <span class="xn-chron">March 31</span> /CNW/ -- 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 <span class="xn-location">Guinea</span> (the "Project"), announced that the Company's board of directors has approved its financial results for the year ended <span class="xn-chron">December 31, 2009</span>.</p>
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<p>The text of the annual audited financial statements and management's discussion and analysis can be viewed or printed from the Company's SEDAR reference page at <a href="http://www.sedar.com">www.sedar.com</a>. All dollar amounts are in U.S. dollars.</p>
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    2009 Financial Highlights

    --  In January 2009, Global Alumina received from its joint venture
        partners the second deferred subscription payment of $33.3 million
        related to the sale of interests in the Project in 2007.
    --  In 2009 the joint venture partners contributed capital of $117 million
        towards the approved Project budget with the Company contributing its
        $39 million one-third share.
    --  As at December 31, 2009, the Company had unrestricted cash of $12.6
        million and escrowed cash totalling $51.1 million its escrow account
to
        fund future Project capital calls. Escrowed funds at December 31, 2009
        included the second deferred subscription payment of $33.3 million
        received in January 2009.
    --  For the year ended December 31, 2009 the Company reported a net loss
of
        $8.4 million ($0.04 per share), compared to net income of $37.6
million
        ($0.18 per share) for the same period in 2008.
    --  Interest income for 2009 was $0.7 million versus $2.4 million in 2008.


    
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<p>Global Alumina expects that the unrestricted funds will be sufficient to enable it to meet its corporate operating expense requirements through <span class="xn-chron">June 2012</span> and that remaining escrowed funds will be sufficient to fund the Company's one-third share of Project equity requirements at least through to finalization of debt financing for the Project.</p>
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    Significant Corporate Events
    Receipt of subscription monies
    
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<p>In <span class="xn-chron">January 2009</span>, the Company's joint venture partners made the second deferred subscription payment of approximately <span class="xn-money">$33.3 million</span> in aggregate for their interests in the Project. Pursuant to a related agreement between the Company and the joint venture partners dated <span class="xn-chron">December 30, 2008</span>, among other things, certain warranties and indemnities provided by the Company to the joint venture partners in connection with title to the Project's mining concession were terminated on <span class="xn-chron">February 25, 2009</span>.</p>
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    Substantial Issuer Bid
    
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<p>On <span class="xn-chron">July 10, 2009</span> the Company commenced a substantial issuer bid to repurchase for cancellation up to <span class="xn-money">$8 million</span> of its outstanding common shares by way of a "Dutch auction" with a range of tender prices available to shareholders between <span class="xn-money">$0.40</span> and <span class="xn-money">$0.65</span> per share, inclusive (the "Issuer Bid").  The Issuer Bid expired on <span class="xn-chron">August 17, 2009</span>. 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 <span class="xn-money">$0.65</span> per share. Pursuant to the terms of the Issuer Bid, the Company took up shares at a purchase price of <span class="xn-money">$0.65</span>, the highest offered price.  As the aggregate value of shares deposited at the purchase price of <span class="xn-money">$0.65</span> per share exceeded the <span class="xn-money">$8,000,000</span> maximum value of consideration payable by the Company pursuant to the Issuer Bid, 12,307,692 shares were taken up by the Company 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. All shares acquired under the Issuer Bid have subsequently been cancelled.</p>
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    About Global Alumina
    
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<p>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 <span class="xn-location">Guinea</span>.  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 <span class="xn-location">Guinea</span> with the refinery already in feasibility stage and critical path infrastructure and site work already underway.  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 is headquartered in Saint John, <span class="xn-location">New Brunswick</span> and has administrative offices in New York, <span class="xn-location">London</span> and <span class="xn-location">Montreal</span>. For further information visit the Company's website at <a href="http://www.globalalumina.com">www.globalalumina.com</a>.</p>
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    Forward Looking Information
    
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<p>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 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; the negotiation and terms of agreements relating to the access of <span class="xn-location">Guinea</span> Alumina Corporation, Ltd. to and use of certain infrastructure required for the development and operation of the Project; recognition by the new political regime in <span class="xn-location">Guinea</span> 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: recent political events in <span class="xn-location">Guinea</span> 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 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 690 square kilometre mining concession area near Sangaredi 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.</p>
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<p>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 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 share 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 <span class="xn-location">Guinea</span> 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.</p>
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For further information: Michael Cella, Global Alumina, [phone], [email protected]; or Barbara Cano, Breakstone Group, [phone], [email protected] Web Site: http://www.globalalumina.com