Global Alumina Releases Its 2012 Year End Results

Global Alumina Corporation, a corporation participating in JV to develop an alumina refinery, mine and associated infrastructure in the bauxite rich region of the Republic of Guinea, announced its financial and operating results for the year ended December 31st 2012.

For the year ended December 31st 2012, the Company reported a net loss of approximately USD 104.6 million including USD 135.7 million non cash impairment charge and USD 53.8 million net gain on derivative instruments compared to a net loss of approximately USD 130.6 million including USD 95.5 million non cash impairment charge and USD 44.4 million net loss on derivative instruments for the same period in 2011.

On December 31st 2012, the Company had working capital of about USD 1.3 million versus USD 22.9 million (including restricted cash). In 2012, the JV partners contributed capital of USD 50.7 million towards the approved Project budget with the Company contributing its USD 16.9 million one third share. Subsequent to year end the JV partners contributed an additional USD 2.1 million towards the Project with Global Alumina contributing its USD 0.7 million one third share.

As of December 31st 2012, the Company had unrestricted cash of USD 2.1 million and USD nil escrowed cash. As of December 31st 2012, the Company had an accumulated deficit of USD 220.5 million.

The audited annual consolidated financial statements of the Company for the year ended December 31st 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.

http://www.reuters.com/article/2013/03/28/global-alumina-erns-idUSnPnNY85265+160+PRN20130328