EGA posts loss on Guinea write-down as feedstock strategy shifts

Guinea Alumina

EGA posts loss on Guinea write-down after the expropriation of its GAC subsidiary. The EGA posts loss on Guinea write-down despite higher realised aluminium prices and strong value-added sales. However, the EGA posts loss on Guinea write-down also masks operational tweaks to secure alumina and bauxite.

What drove the headline loss

EGA reported Dh3.82bn in EBITDA on Dh15.08bn revenue, up 7.86pc. Before adjustments, net profit reached Dh1.63bn. However, the GAC expropriation pushed the company to a Dh890mn net loss. Guinea suspended GAC shipments in October and revoked the mining licence in May. Authorities reassigned the licence in August to state-owned Nimba Mining. As a result, EGA faced higher bauxite procurement costs and refinery inefficiencies. The company also relied more on third-party alumina.

Operations, output, and pricing signals

EGA produced no bauxite in the first half, versus 7.19mn t a year earlier. Alumina output at Al Taweelah fell 6.56pc to 1.14mn t. Meanwhile, EGA finished a debottlenecking project adding up to 50,000 t/yr of alumina capacity. Primary aluminium output was 1.34mn t, broadly flat year on year. Cast metal production rose 2.92pc to 1.41mn t, with sales up 4.58pc to 1.37mn t. Value-added products increased to 84pc of sales from 82pc. LME aluminium averaged $2,538/t in the period, up from $2,303/t.

The Metalnomist Commentary

The Guinea shock exposed EGA’s feedstock concentration risk but also accelerated diversification. If alternative bauxite and alumina offtakes bed in while Al Taweelah’s debottlenecking delivers, margin drag should ease. Execution now hinges on supply optionality, residue management, and stable energy logistics.