Alumina : Alcoa Second Quarter Earnings Release

Alumina Limited (ASX: AWC) notes Alcoa's quarterly earnings release and attaches it for reference. To assist readers in understanding relevant market, operational and commercial matters of the AWAC joint venture, selected information from the Alcoa alumina segment results and other market data are also attached.

Alumina Limited's CEO, Peter Wasow, commented, "Second quarter margins benefitted from higher API prices and further productivity gains as well as the closure of higher cost capacity. A further $60 million of third party bauxite sales were completed during the quarter in line with the growing importance of the mining segment. These factors resulted in continuing strong cash distributions from the AWAC business."

AWAC's production of alumina was unchanged from the previous quarter at 3.2 million tonnes reflecting the impact of announced curtailments offset by higher production at Sao Luis, Kwinana and San Ciprian.

Alumina Limited received $34.3 million of dividends, distributions and capital returns from AWAC in the quarter (making $83.7 million for the first half). The Company made no capital contributions to AWAC in the same period.

Alumina Limited's net debt was approximately $80 million at the end of June 2016.

About AWAC & Alcoa's Earnings Release

Alumina Limited owns 40% of each of the AWAC entities, which form a part of the Alcoa alumina business segment. The Alcoa primary metals business segment includes the AWAC Point Henry smelting (closed 1 August 2014), Portland smelting and Anglesea power station operations (closed 31 August 2015). Therefore, the AWAC results cannot be directly inferred from the Alcoa earnings release. Further, unlike Alumina Limited, Alcoa reports under US GAAP. All figures displayed are in US dollars unless otherwise shown.

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 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 2015. 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.