Alumina Limited - 2019 Half Year Result.
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Release date- 23082019 - Alumina Limited (ASX: AWC) ('Alumina' or 'Company') today reported a statutory net profit after tax of US$210.9 million for the half-year to 30 June 2019.
The Company declared an interim, fully franked dividend of 4.4 US cents per share. Alumina's Chief Executive Officer, Mike Ferraro, said, 'This is a strong result for the Company. Alumina Limited's exposure to low-cost alumina and bauxite assets is unrivalled worldwide. The interim dividend continues to deliver outstanding returns to shareholders.
'The tight Western world alumina market conditions of 2018 have subsided in the first half of 2019 as curtailed supply came back on stream and new refineries ramped up. Against this backdrop AWAC reduced production costs which contributed to cash margins2 in the half of over $150 per tonne despite lower alumina prices.
'We expect a modest alumina surplus for the rest of 2019. Aluminium demand is expected to grow consistent with longer term trends and this will help support the alumina price in the future. At the current alumina price of around US$300 per tonne AWAC's low cost assets generate a cash margin of about $80 per tonne.'
Cash cost per tonne of alumina produced improved by 3% per tone
EBITDA of US$949.9 million, a decrease of US$258.1 million
Margin for alumina refineries was US$157 per tonne, a decrease of US$43 per tonne
Net cash inflows3 of US$382.4 million, a decrease of US$278.1 million
Since 30 June 2019, Alumina has received, or is due to receive, US$66.0 million of net distributions from AWAC1 entities which have been included in the interim dividend.
DEFINITIONS AND NOTES
AWAC is Alcoa World Alumina & Chemicals, which is 40% owned by Alumina Limited and 60% owned by Alcoa Corp.
The margin for alumina refineries is calculated as average realised price less cash cost of production
AWAC net cash inflow is defined as cash flow before distributions less capital contributions from partners
Earnings before interest, tax, depreciation and amortisation consistent with previous periods
Alumina Limited free cash flow is cash from operations less net investments in associates
This document may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words 'anticipate', 'aim', 'believe', 'expect', 'project', 'estimate', 'forecast', 'intend', 'likely', 'should', 'could', 'will', 'may', 'target', 'plan' and other similar expressions (including indications of 'objectives') are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina's future developments and the market outlook, are also forwardlooking statements.
Any forward-looking statements contained in this document are not guarantees of future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Alumina and its directors, officers, employees and agents that may cause actual results to differ materially from those expressed or implied in such statements. Those risks, uncertainties and other factors include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited and (f) the other risk factors summarised in Alumina's Annual Report 2018. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.
This presentation contains certain non-IFRS financial information. This information is presented to assist in making appropriate comparisons with prior year and to assess the operating performance of the business. Where non-IFRS measures are used, definition of the measure, calculation method and/or reconciliation to IFRS financial information is provided as appropriate or can be found in the Alumina Limited's ASX Half-Year Report for the period ended 30 June 2019.
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|Date:||Aug 23, 2019|
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