Alumina Limited's 2023 Full-Year Results and Proposed Transaction with Alcoa

Alumina Limited (ASX: $AWC) has reported a net loss after tax of $92 million, excluding significant items, for the 2023 full-year results. The company did not announce any dividends. Alumina is currently considering a non-binding, indicative, and conditional proposal from Alcoa Corporation to acquire Alumina for scrip consideration of 0.02854 shares of Alcoa common stock for each Alumina share. The proposal implies a 13.1% premium to the share price of Alumina on 23 February 2024 and a 19.5% premium based on the average exchange ratio over the last 12 months. Alumina has granted Alcoa 20 business days of exclusivity for the parties to negotiate and execute definitive transaction documentation. The proposed transaction aims to simplify corporate ownership, align interests, and streamline decision-making, removing duplication of corporate costs.

Executive Commentary on Proposed Transaction and Financial Performance

Galina Kraeva, Chief Financial Officer, stated, 'The proposed transaction with Alcoa presents an opportunity to enhance Alumina's strategic position and financial flexibility. Despite the disappointing financial performance in 2023, we are proactively responding with actions such as WA mine plan approvals, Kwinana curtailment, and profitability improvement focus. The proposed acquisition by Alcoa aligns with our goals of streamlining decision-making and eliminating current capital structure inefficiencies.'

Summary of Alumina Limited's 2023 Full-Year Results and Outlook

Alumina Limited (ASX: $AWC) reported a net loss after tax of $92 million for the 2023 full-year results, excluding significant items, and did not announce any dividends. The company is currently evaluating a non-binding, indicative, and conditional proposal from Alcoa Corporation to acquire Alumina. The proposed transaction aims to simplify corporate ownership, align interests, and streamline decision-making, removing duplication of corporate costs. Despite the challenging financial performance, Alumina remains focused on enhancing protection for drinking water, reducing impacts on forests, increasing transparency, and modernizing approvals. The global aluminium demand was flat in 2023, and Alumina's outlook includes a moderate recovery in aluminium demand in 2024, with a focus on profitability improvement and cost-saving initiatives.