Alumina Limited

FAQs

What is Alumina Limited?

Alumina Limited is a leading Australian company listed on the Australian Stock Exchange (ASX) and the US Over-the-Counter (OTC) market. We invest worldwide in bauxite mining, alumina refining and selected aluminium smelting operations through our 40 per cent ownership of Alcoa World Alumina and Chemicals (AWAC), the world’s largest alumina business. Our partner, Alcoa, owns the remaining 60 per cent of AWAC, and is the manager. The AWAC joint venture was formed in 1994 and our partnership with Alcoa dates back to 1961.

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What is AWAC?

Alcoa World Alumina and Chemicals (AWAC) is the world’s largest producer of alumina and is a global joint venture between Alumina Limited and Alcoa. Alumina owns 40 per cent of AWAC, our joint venturer Alcoa is the enterprise manager and owns 60 per cent. AWAC global interests include 7 alumina refineries, 7 bauxite mines and 1 aluminium smelter. AWAC also has a 25.1% interest in a alumina refinery and bauxite mine developed with Ma'aden in Saudi Arabia that was commissioned in 2015.

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When was Alumina Limited formed?

Alumina Limited commenced as a standalone entity on 11 December 2002 when WMC Limited’s alumina assets were demerged from its nickel, copper and fertilizer businesses.

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Why did the AWAC partnership form?

The origins of the Alcoa Worldwide Alumina and Chemicals (AWAC) partnership between Alcoa and WMC Limited (now Alumina Limited) began in the early 1960’s following the exploration and discovery of bauxite deposits and other resources by WMC Limited and two other Australian companies. The Aluminium Company of America (Alcoa) was invited to join the project to provide technology, aluminium expertise and finance. The venture formed Alcoa of Australia Ltd, an integrated aluminium company, in 1961 with WMC Limited holding a 20% interest and Alcoa a 51% interest.

Over the following years the venture grew to include refineries and smelter interests as the partners sought to take opportunities to expand the business. By 1990, WMC Limited’s interests in Alcoa of Australia had grown to 48.25% through acquiring the minority interests of other participants, other than Alcoa.

In July 1994, WMC decided to expand this interest as a worldwide bauxite, alumina and alumina-based chemicals enterprise.

WMC Limited and Alcoa combined their respective bauxite, alumina and alumina-based chemicals businesses and investments and some selected smelting operations to create Alcoa World Alumina and Chemicals (AWAC) in January 1995.

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Where is Alumina’s stock listed?

Alumina Limited is listed on the Australian Securities Exchange (ASX) and also the OTC market in the US as American Depositary Receipts (ADRs). Alumina’s ASX issuer code is AWC and the OTC ticker code is AWCMY.  Each ADR is the equivalent of 4 ordinary shares in Alumina Limited. Alumina’s stock commenced trading on 11 December 2002.

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Does Alumina Limited have a Dividend Reinvestment Plan?

Alumina Limited does have a Dividend Reinvestment Plan (DRP). The Plan was suspended in 2010 for five years and was reinstated in 2015.

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What is Alumina Limited’s financial year and when are its results announced?

Alumina Limited’s financial year concludes on 31 December. Full Year results are generally released around mid-February. Half Year results are generally released in mid-August.

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What is Alumina Limited’s strategy?

Alumina’s key strategy is, through AWAC:

- to invest in and own and operate long-life, low cost bauxite and alumina assets, preferably large and able to be expanded and

- for AWAC’s alumina to be priced off alumina’s fundamentals, in terms of supply and demand and construction and operating costs of alumina.

 

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What are Alumina’s values and it’s Code of Conduct?

At Alumina Limited we have core values and supporting principles that guide the way we do things at Alumina. Those values underpin our policies, business practices, standards and corporate governance. The values have been adopted by the directors, management and staff of Alumina Limited and translate into our Code of Conduct.

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Does Alumina Limited comply with the Australian Stock Exchange Principles of Good Corporate Governance and Best Practice Recommendations?

Yes

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What accounting standards are applied by Alumina Limited in calculating the financial statements?

Since 31 December 2005 Alumina Limited’s financial statements have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (A-IFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. Until to 31 December 2004 Alumina Limited’s financial statements had been prepared in accordance with previous Australian Generally Accepted Accounting Principles.

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What is Alumina Limited's dividend policy?

Generally, the Board intends, on an annual basis, to distribute cash from operations after serving debt and corporate cost commitments have been met.  The Board will also consider the capital structure of Alumina Limited, the capital requirements for the AWAC business and market conditions.  Dividends will be fully franked for the forseeable future. 

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