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Dutton Associates Announces Investment Opinion: Global Alumina Corporation Strong Speculative Buy Rating In Initiating Coverage By Dutton & Associates

Posted on: Wednesday, 19 April 2006, 15:00 CDT

Dutton Associates initiates coverage of Global Alumina Corporation (TSE:GLA.U) with a Strong Speculative Buy rating and a $3.00 price target. The report by Dutton senior analyst Les W. Childress is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Global Alumina Corporation is an absolute rarity in the alumina/aluminum industry. It is a relatively recent, publicly traded, single project, non-integrated company, building what will be at 3.0 million tonnes per year the world's largest greenfield alumina refinery and one of the lowest cost alumina refineries in the world. Production is anticipated to expand to 4.5 million tonnes per year (mty) in the 2013 to 2014 time frame eventually reaching 5.2 mty. Global Alumina holds a long-term (minimum 75-year) mining concession covering 690 square kilometers containing over one billion tonnes of some of the highest quality and most prolific bauxite ore reserves in the world. Global's reserves are located in the middle of the bauxite-mining fairway in the Boke mining district in the West African nation of the Republic of Guinea and consist of proven and probable bauxite reserves of 188 million tonnes equivalent to a 25-year supply at estimated production. However, the reserves are at least four times this figure because the 25-year plan is developed on only 3 of 19 resource plateaus. Guinea is believed to hold 30%-70% of the world's known reserves of bauxite. On a project and mine site tour in late November 2005, we observed firsthand that the government of Guinea and general population solidly support Global Alumina's project. At 1.60 Global Alumina shares currently trade at 26.2% of our net asset valuation of $6.10 per share derived principally from our DCF projections supplemented by a kind of option value for the shares. This figure could vary up or down depending on the nature, timing and size of a contemplated equity offering designed to supplement a planned debt financing to complete the project.

About Dutton & Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 29 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 130 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 4/19/2006, and does not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Source: Business Wire

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