Alumina Limited posts a net loss (after tax) of US$43 million for H1 2023 owing to lower alumina output

Alumina Limited, an Australian holding company, declared its 2023 first half results ended June 30, 2023, reporting a net loss (after tax) of US$43 million, compared to a net profit after tax of US$168 million during the corresponding period of the last year. Alumina Limited holds 40 per cent share in Alcoa World Alumina & Chemicals (AWAC), a joint venture with Alcoa. Lower volume of bauxite and alumina output against increased production costs was the reason for the loss accrued by Alumina Limited.

Alumina production at the end of June 30 stood at 5 million tonnes, down by 18.03 per cent from 6.1 million tonnes a year ago. Alumina realised price was $361 per tonne, while cash cost of production was $319 per tonne.

Alumina Limited’s CEO, Mike Ferraro, rightly pointed out, “The alumina price had strong support at the start of 2023, increasing to $371/t in February, before declining at the end of the half on the back of weak aluminium demand outside China and lower industry costs of production.”

However, amid all the challenges, Alumina Limited generated revenue of US$0.3 million during H1 2023, up by 200 per cent from US$0.1 million. The company’s net assets at the end of the year’s first half were US$1,524 million versusUS$1,754.50 million at the end of H1 2022.  Basic earnings per share were 1.5 US cents in H1 2023 compared to 5.8 US cents a year earlier.

Alumina Limited’s net debt at the end of June 30 was US$221 million, while the debt at the end of December 31, 2022, was $106 million. So, as per the data, Alumina Limited’s net debt grew by US$ 115 million in a six-month period.

In early August, the company announced the hiring of Mr Alistair Field as a Non-Executive Director with effect from January 15, 2024.