Ann: Updated Corporate Governance Statement, page-33

Keep up the great articles, PIKA

here's another one, sorry link won't paste

I wonder where they will find the bauxite to feed the aluminium plant

Cameroon sorting out to recapitalize Alucam with the aid of three European financial institutions.

Thealuminium company in Cameroon is presently sorting out with a group of threeEuropean financial institutions to recapitalize Cameroon Aluminium Company(Alucam), the only primary aluminium producer in the CEMAC zone.

Cameroonsorting out to recapitalize Alucam with the aide of three European financialinstitutions

As per ourreport from the Technical Commission for the Rehabilitation of Public andPara-Public Sector Enterprises (CTR), the in support European financialinstitutions are the International Tropical Conservation Fund (ITCF), theFranco-German Financial Group BHF and Investment Bank BPI.

Provisionally, there are no details ofthe funding mechanism selected by the state of Cameroon, the exclusivestakeholder of Alucam, nor on what is anticipated from each financialinstitution.

The CTR explains, “In 2020, Alucam’s financial performanceplunged the company in bankruptcy, notwithstanding the merger with Socatral. Arecapitalization is necessary to avoid an early dissolution.”

The figures published by the commission, it says “Alucam’sequity dropped by 240.8% between 2019 and 2020, going from XAF5.9 billion in2019 to -XAF8.3 billion in 2020.”

However,since that date, the company’s equity has been below half its XAF21 billionshare capital.

Cameroon hastime until 2022 to recapitalize Alucam to bring its equity to at least half ofits share capital, which is around XAF10.5 billion, according to Article 665 ofthe Ohada Uniform Act on Commercial Companies and Economic Interest Groups. Asper Article 667 of the same act, beyond that timeline, "any interestedparty may take legal action to request the dissolution of the company.”

Alucam’srecapitalization will authorize the company to functionalize at full control,besides evading legal issues, whereas concurrently, considering the environmentin the aluminium and alumina markets due to its price taker compelled to agreeto the prevailing prices in international markets.

The CTR also added, “TheCompany’s operating loss dropped by 32% in 2020 (from XAF16 billion to 10billion) but its high operating expenses remain a concern. For instance, itspersonnel expenses represent 160% of its added value. In addition, in 2020, thecompany recorded a XAF14.393 billion net loss.”