ASX Announcement | 29 April 2019 |
Presentation at CRU 24th Aluminium Conference
26 April 2019
Attached is a copy of a presentation prepared by Mr Andrew Wood, Group Executive Strategy and Development, Alumina Limited, and delivered at the CRU 24th Aluminium Conference held in London, U.K. on 26 April 2019.
Neither Alumina nor any other person warrants or guarantees the future performance of Alumina or any return on any investment made in Alumina securities. This document may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "aim", "believe", "expect", "project", "estimate", "forecast", "intend", "likely", "should", "could", "will", "may", "target", "plan" and other similar expressions (including indications of "objectives") are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina's future developments and the market outlook, are also forward-looking statements.
Any forward-looking statements contained in this document are not guarantees of future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Alumina and its directors, officers, employees and agents that may cause actual results to differ materially from those expressed or implied in such statements. Those risks, uncertainties and other factors include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements;
(c)changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2018. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.
This presentation contains certain non-IFRS financial information. This information is presented to assist in making appropriate comparisons with prior year and to assess the operating performance of the business. Where non-IFRS measures are used, definition of the measure, calculation method and/or reconciliation to IFRS financial information is provided as appropriate or can be found in the Alumina Limited's ASX Full-Year Report for the period ended 31 December 2018.
Stephen Foster
Company Secretary
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Charles Smitheram | Tim Duncan |
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Relations | |
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CRU 24th World Aluminium Conference 26 April 2019, London U.K.
Alumina and raw materials
Andrew Wood, Group Executive Strategy & Development Alumina Limited
andrew.wood@aluminalimited.com
Disclaimer
Summary Information
This Presentation contains summary information about the current activities of Alumina Limited (ACN 004 820 419) (Alumina) and its subsidiaries as at the date of this Presentation. The information in this Presentation should not be considered to be comprehensive nor to comprise all the information that a reader may require in order to make an investment decision regarding Alumina securities. This Presentation should be read in conjunction with Alumina's other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au.
No Offer, Recommendation or Advice
This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under Australian or any other law. It does not constitute an offer, invitation or recommendation to acquire Alumina securities in any jurisdiction and neither this Presentation nor anything contained in it will form the basis of any contract or commitment.
The information contained in this Presentation is not financial product advice, or any other advice, and has been prepared without taking into account any reader's investment objectives, financial circumstances or particular needs.
Forward-Looking Statements
Neither Alumina nor any other person warrants or guarantees the future performance of Alumina or any return on any investment made in Alumina securities. This Presentation may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "aim", "believe", "expect", "project", "estimate", "forecast", "intend", "likely", "should", "could", "will", "may", "target", "plan" and other similar expressions (including indications of "objectives") are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina's future developments and the market outlook, are also forward-looking statements.
Any forward-looking statements contained in this Presentation are not guarantees of future performance. Such forward-looking statements involve known and unknown risks (including the key risks referred to below), uncertainties and other factors, many of which are beyond the control of Alumina and its directors, officers, employees and agents, that may cause actual results to differ materially from those expressed or implied in such statements. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.
Key Risks
Certain key risks that may affect Alumina, its financial and operating performance and the accuracy of any forward-looking statements contained in this Presentation include (without limitation):
(a)material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2018.
Past Performance
Past performance information contained in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
Financial Data
All dollar values in this Presentation are in United States dollars (US$) unless otherwise stated.
Certain financial data included in this Presentation is "non-IFRS financial information" under Australian Securities and Investments Commission Regulatory Guide 230: "Disclosing non-IFRS financial information". Alumina believes the non-IFRS financial information provides useful information to users in comparing prior periods and in assessing the financial performance and condition of Alumina. The non-IFRS financial information does not have a standardised meaning prescribed by Australian Accounting Standards and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should the information be construed as an alternative to other financial measures determined in accordance with Australian Accounting Standards. Readers are cautioned, therefore, not to place undue reliance on any non-IFRS financial information contained in this Presentation. Where non-IFRS financial measures are contained in this Presentation, the definition of the relevant measure, its calculation method and/or a reconciliation to IFRS financial information is provided in this Presentation as appropriate or can be found in Alumina's ASX Full-Year Preliminary Report (Appendix 4E).
No Liability
The information contained in this Presentation has been prepared in good faith and with due care but no representation or warranty, express or implied, is provided as to the currency, accuracy, reliability or completeness of that information.
To the maximum extent permitted by law, Alumina and its directors, officers, employees and agents, and any other person involved in the preparation of this Presentation, exclude and disclaim all liability for any expenses, losses or costs incurred by any person arising out of or in connection with the information contained in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise.
2
AWAC Joint Venture
(Alumina Limited 40% interest)
BAUXITE PRODUCTION (million BDT#)
2018 | |
Huntly & Willowdale | 33.5 |
Juruti | 5.7 |
MRN* | 1.2 |
CBG* | 2.8 |
Total | 43.2 |
* AWAC equity share of production
MRN - Mineração Rio do Norte S.A. ; CBG - Compagnie des Bauxites de Guinée are non-AWAC operated mines
# Bone dry tonnes (BDT): Tonnes are reported on a zero moisture basis, "bone dry"
Alumina Limited net profit after tax of $635.4 million (2018)
ALUMINA PRODUCTION (million tonnes)
2018 | |
Pinjarra | 4.5 |
Wagerup | 2.7 |
Kwinana | 2.0 |
Alumar | 1.4 |
San Ciprian | 1.6 |
Total | 12.2 |
Production of AWAC's operated refineries. Therefore, the Ma'aden joint venture is not included
AWAC average alumina cash cost of production is $226/t (2018): lowest quartile global cash cost
curve | 3 |
Alumina Price Index responds to alumina market fundamentals
CRU Alumina Price Index, $/t Western Australia FOB
800
700
600
500
400
300
200
100
0
Surplus alumina market. Curtailment of high cost refining capacity.
Sanctions on UC Rusal | Western Australia |
strike | |
Expectation of Chinese | Alunorte |
resumes 50% | |
winter supply cuts. | |
production after | |
full closure
50% cut at
Alunorte
Chinese alumina demand strengthens and smelting cost inflation
Mar-2019
Feb-2019
Dec-2018
Nov-2018
Sep-2018
Jul-2018
Jun-2018
Apr-2018
Mar-2018
Jan-2018
Nov-2017
Oct-2017
Aug-2017
Jun-2017
May-2017
Mar-2017
Feb-2017
Dec-2016
Oct-2016
Sep-2016
Jul-2016
Jun-2016
Apr-2016
Feb-2016
Jan-2016
Nov-2015
Oct-2015
Aug-2015
Jun-2015
May-2015
Data: CRU | 4 |
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Alumina Limited published this content on 29 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 April 2019 23:02:02 UTC