Global Alumina Posts 3Q Loss of $4.4M

TORONTO — Global Alumina Corp.'s third-quarter net loss widened to $4.4 million from $3.4 million in the same period last year.

The Canadian-listed mine developer issued partial financial results on Friday, saying its loss for the quarter ended Sept. 30 amounted to 2 cents per share, compared with 3 cents per share in the comparable 2005 period.

The company did not provide revenue figures but said it had cash and cash equivalents of $10 million at quarter's end.

Global Alumina has its legal head office in Saint John, N.B., and its shares are listed on the Toronto Stock Exchange, where they trade in U.S. currency. But the company's executives are based in New York City and its main operations are in Guinea.

Last weekend, Global Alumina revealed it's in exclusive talks to form a joint venture with global resources giant BHP Billiton and Middle Eastern partners to develop the company's planned $2.2 billion alumina refinery in West Africa.

The potential joint venture also includes the company's current strategic partner, Dubai Aluminium Co. Ltd., as well as Mubadala Development Co., an investment firm based in Abu Dhabi.

Under terms of the agreement, the three partners have until March 31 to negotiate a definitive transaction to acquire shares in Global Alumina's wholly owned subsidiary Guinea Alumina Corp. Ltd.

Global Alumina would keep a one-third interest in the Guinea project and BHP Billiton, Dubai Aluminium and Mubadala would acquire one-third, one-quarter and one-twelfth stakes, respectively.

In a related matter, Global Alumina also said the partners have agreed to provide interim financing of $100 million in an expedited loan for project development costs until the definitive joint venture deal is finalized.

"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," said CEO Bruce Wrobel in a release on Friday.

"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."