Alumina shares lose 7.2% after underwhelming results
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More news: Alumina shares were down 7.2% at 3pm AEST as the company's profit slump and skipped dividend disappointed investors.
Alumina swings to half-year loss, skips dividend
The news: Mining investor Alumina has swung to a half-year loss and skipped an interim dividend as uncertainty over its raw material supplies persists.
The numbers: The company reported a net loss of USD43 million ($67.1 million) for the six months to 30 June, down from a USD168 million profit a year ago. It will not pay any dividend to shareholders, compared to a 4.2 US cents payout a year earlier.
The context: Alumina owns a 40% stake in the Alcoa Worldwide Alumina and Chemicals (AWAC) joint venture with US aluminium giant Alcoa. The JV has faced delays in securing an extension for its bauxite mining approvals in Western Australia to secure higher-grade ore.
What they said: “Alumina had a difficult first half and continues to face significant uncertainty due to ongoing delays with mining permits in WA,” Alumina chief executive Mike Ferraro said.
“While AWAC did see lower costs in parts of our portfolio during the first half through softening energy prices, the impact of lower grade bauxite in WA meant our overall cash cost per tonne increased compared to the second half of 2022.”
The source: ASX announcement
