Alumina shares sink after posting FY loss
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More news: Alumina shares were trading 7% lower at $1.01 by 12:45pm after the mining investor reported that it swung to a full-year net loss in 2023.
Alumina posted a net loss of $229 million for the year to December 2023, a day after its shares surged on news of a takeover proposal from US aluminium giant Alcoa.
Alumina swings to FY loss after 'difficult year'
The news: Alumina Limited reported that it swung to a full-year net loss in FY23, a day after shares in the mining investor surged on news of a takeover proposal from US aluminium giant Alcoa.
The numbers: Alumina posted a net loss of USD150 million ($229 million) for the year to December 2023, compared to a net profit of USD104 million in 2022.
Its joint mining venture Alcoa World Alumina & Chemicals (AWAC) — which is 40% owned by Alumina and 60% owned by Alcoa — saw EBITDA plunge 80% to USD165 million, as alumina production fell 12% year on year.
Alumina did not declare a final dividend, conceding that 2023 was a "difficult year", as the business experienced lower production volumes and higher production costs, combined with a lower realised price for alumina.
The context: Alumina shares climbed on Monday after a takeover proposal from its joint venture partner Alcoa valued the mining investor at USD2.2 billion. Alumina’s biggest shareholder, Allan Gray Australia, has already backed the deal, entering into an agreement that gives Alcoa the right to acquire up to 19.9% of the company.
In its full-year report, Alumina said it has granted "20 days of exclusivity to Alcoa, to finalise satisfactory definitive transaction documentation", with its board noting that "there is no certainty that the proposal will result in a binding offer for Alumina".
The source: ASX announcement
