Alumina Ltd. of Australia publishes annual result for 2019: Net profit after tax recorded US$ 326.6 million

Alumina Ltd. Australia, the investor in bauxite mining and alumina refining through Alcoa World Alumina & Chemicals (AWAC), today made public a statutory net profit after tax of US$ 214.0 million for the full-year to 31 December 2019, whereas after excluding significant itineraries, the net profit after tax was US$ 326.6 million.

The company declared a final dividend of US 3.6 cents per share.

Mike Ferraro, CEO, Alumina Ltd. said: “This is a strong result, reflecting the Company’s ability to generate impressive returns for shareholders through the cycle. AWAC’s full-year alumina production was a record for the current portfolio and the cash cost of production fell by 7%. The quality of the AWAC assets was demonstrated through its cash margin of US$126 per tonne for the year. Alumina Limited’s free cash flow for the year was US$420 million. The final dividend continues to deliver excellent returns to shareholders.”

“Alumina prices fell during 2019 and stabilized around $280 per tonne early in 2020. Prices rebounded slightly to $300 per tonne last week amid market tightening.”

He also added “Aluminium demand is expected to grow in 2020 as trade friction subsides. This will contribute to a balanced alumina market and China is expected to absorb any surplus rest of world production.”