U.S. based aluminium producer Alcoa Inc
(ASX:AAI) has reported a profit of US$77 million for the third quarter, compared to a loss of US$454 million in the second quarter of 2009.
However the result was a far cry from its third quarter 2008 result of $268 million.
Revenue rose 9 per cent to $4.6 billion from $4.2 billion in the second quarter of 2009.
President and CEO Klaus Kleinfeld says the financial and operational measures the company took in the first half of the year are having a strong positive impact on its cash position and profitability.
Mr Kleinfeld says despite unfavourable currency and energy headwinds, the company’s performance in the third quarter indicates that Alcoa is weathering the economic storm and is in excellent shape to benefit when the market recovers.
The company says that in the second half of 2009 there are signs that key markets Alcoa operates in are stabilising.
Alcoa says due to low inventories at distributors and rising shipments, regional premiums and global aluminium consumption is expected to increase 11 per cent in the second half of 2009. Alcoa posted a loss of US$74 million in 2008.
Transfield Services Ltd (ASX:TSE) U.S. oil and gas specialist company TIMEC, has renewed its long-term agreement with energy producer Chevron for a further five years.
The company says the average yearly revenue from the contract over the last three years was approximately $50 million a year.
As part of the contract TIMEC will continue to provide Chevron with routine maintenance, turnarounds and minor capital works services across its oil refineries in Pascaguola, Mississippi, El Segundo and Richmond, California, Salt Lake City, Utah and Hawaii.
Transfield Services CEO Dr Peter Goode says the company’s commitment to providing a high-level of service safely and efficiently since it started working with Chevron in 1971, has contributed to Chevron renewing its contract without going to market. Transfield Services fell into the red in 2009 after profits the four years previous.
There are reports that Australia’s Foreign Investment Review Board has asked China’s Baosteel Group to resubmit its application to acquire a 15 per cent holding in coal, iron ore and manganese explorer Aquila Resources Ltd (ASX:AQA).
On August 28 Aquila announced that it had executed two landmark agreements with Baosteel, a memorandum of strategic co-operation and a share subscription agreement.
Under the agreements Baosteel will help Aquila advance some of its important projects including its West Pilbara Iron Ore project, by assisting the company to source low cost financing from Chinese institutions.
Baosteel will also pay $285.6 million for a 15 per cent stake in the company.
The Foreign Investment Review Board has 30 days to make a ruling on the application but can extend that for a further 90 days if it needs more time.
However the Dow Jones Newswires reports that due to a large number of applications for investment in the country’s mining sector from Chinese companies the board has been asking for companies to withdraw and resubmit their applications instead of activating the 90 day extension.
Aquila Resources pulled itself out of the red in 2008 to post a profit of $97.26 million.
Producer of zinc, lead and silver CBH Resources Ltd (ASX:CBH) says it produced 15,250 tonnes of zinc concentrates, 8,400 tonnes of lead concentrates for the quarter ended September 30 at its flagship Endeavor mine.
The company is planning to ramp up production to 850,000 tonnes per annum at the mine.
CBH says the development approval process for its Rasp mine in Broken Hill has begun with approvals being sought for early stage mining of high grade remnant ore.
The miner also says the potential for an underground mine development at Panorama in Western Australia is encouraging, saying that the company will likely seek a new development partner for this project.
CBH says the outlook for the company continues to improve as a result of higher metal prices and the successful implementation of recapitalisation initiatives approved by shareholders in August.
Focus will be on a gradual and sustainable ramp up of production at Endeavor and the development of Rasp. CBH Resources posted a $96.6 million loss for 2009.
