Century Aluminum makes a gain of $103.3 million on acquiring Jamalco, says report
Century Aluminum, the US-based primary aluminium producer and new owner of Jamalco, has experienced a gain of $103.3 million on acquiring the alumina refinery. At the end of April 2023, Century Aluminum signed an agreement with Noble Group Holdings Limited (Noble) to obtain 55 per cent of ownership in Jamalco.
This accession is described as a bargain purchase deal since Century Aluminum acquired the loss-making company Jamalco for only US$1.
Jamalco converts mined bauxite into alumina, which is then used by Century Aluminum to produce primary aluminium at its smelters in the United States and Iceland.
Century obtained 55 per cent of shares in Jamalco, replacing Noble Group of Hong Kong. The Government of Jamaica owns the remaining 45 per cent of Jamalco's shares through the holding company Clarendon Alumina Partners.
According to Century Aluminum's financial results, Jamalco's net assets are about $144.4 million, and Jamaica's stake is $32.8 million.
On August 9, Century Aluminum declared its Q2 2023 results, noting that its net income attributable to Century Stockholders was $7.5 million, showcasing an improvement of $46.1 sequentially. Adjusted EBITDA stood at $29.5 million, up by $5.4 million from $24.1 million.
Century's liquidity position at quarter end was $231.1 million, down by $10.9 million from the prior quarter.
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