Aluminum Corp (NYSE:ACH)

In light of our good credit standing and various domestic and overseas financing channels, we believe that we will not experience any difficulty financing capital investments. Our capital expenditures and external investments have historically been mainly financed by cash generated from operating activities, long-term and medium-term borrowings and equity offerings.

The Board believe that we has adequate resources to continue in operational existence for the foreseeable future not less than 12 months from the date these financial statements were approved. The Board therefore continues to adopt the going concern basis in preparing these financial statements.

Our capital expansion plan for 2011 requires a total of approximately RMB22.6 billion (US$3.4 billion) in capital expenditures for technology upgrading and expansion projects to increase our annual production capacity. In 2011, our annual production capacities of alumina, primary aluminum and aluminum fabrication are expected to increase by approximately 270,000 tonnes, 388,000 tonnes and 35,000 tonnes, respectively.

We intend to fund these capital expenditures through a combination of internal funds derived from our own operations and the proceeds from medium-term and long-term debt financing.

Guidance Report:

Per information in a recent SEC filing (The GeoTeam® could not locate a corresponding press release):

Based on the preliminary calculation of its financial data for the year 2008,  the consolidated net profit of the Company for the 12 months from 1 January 2008 to 31 December 2008 is estimated to decrease by over 50% as compared with the same period last year.

Reasons For Decline:

1. In the first half of 2008, the freezing weather and snow storms in certain areas in the Southern, Northwestern and Southwestern parts of China resulted in power supply cut-off, which led to temporary complete halt of production of Guizhou Branch, Zunyi Aluminum Company Limited and partial suspension of production of Shanxi Huasheng Aluminum Company Limited and Shanxi-Huaze Aluminum & Power Co., Limited, thereby affecting our production operations. In August 2008, as a result of the shortage of summer power supply in some provinces, some enterprises of the Company such as Shanxi-Huaze Aluminum & Power Co., Limited partially stopped production. As a result, the Company's production and operation were affected.  

2. For the first 3 quarters of 2008, as a result of the hiking prices of fuel and energy, the Company's production cost increased significantly over the corresponding period last year.

3. In the second half of 2008, the global financial crisis deepened and expanded, which had a negative impact on non-ferrous metal industry. The demand for aluminum from the real estate, automobile and related industries decreased significantly. The excess supply of aluminum over demand resulted in a sharp increase of aluminum inventories in the domestic market and the international market. Sales prices of products such as aluminum and alumina decreased dramatically. After mid-October, the Company idled an annual alumina production capacity amounting to 4.11 million tonnes and an annual aluminum production capacity amounting to 0.72 million tonnes among high cost enterprises.

Source: SEC Form 6K ( January 22. 2009)