NORANDA Aluminum Holding Corporation recorded US$64.8 million ($5.8 billion) in net income for its December quarter reversing the US$72.3-million ($6.5-billion) loss in the corresponding quarter of 2008 as the company benefited from full ownership of Gramercy Alumina and its Jamaican-based St Ann Bauxite operations.

The company’s revenues are down year on year but activity at its subsidiaries including gains at St Ann and Gramercy allowed the company to post higher profit, according to financials released last week.

For fourth quarter 2009, the Company reported revenues of US$229.4 million compared to US$261.5 million in the fourth quarter of 2008. Some US$52 million of the revenues during the fourth quarter 2009 related to alumina and bauxite shipped from Gramercy and St Ann to external customers.

Also during the quarter, Noranda recognised a US$120.3-million gain as a result of becoming the sole owner of the Gramercy Alumina business and the St Ann Bauxite mining business. The fourth-quarter 2009 operating results reflect US$15.9 million of improvements in sales margin (sales minus cost of sales) on a consolidated basis compared to third quarter 2009.

“This improvement resulted primarily from improved LME (London Metal Exchange) pricing, the benefits of owning 100 per cent of the former joint venture entities at Gramercy and St Ann, and off-peak power rates at New Madrid, offset somewhat by the usual seasonality experienced in the last month of the fourth quarter,” stated the company.

The company also reported a US$72.9-million operating loss, compared to a US$4.4-million operating loss in third quarter 2009, and a US$64.6-million operating loss in fourth quarter 2008.

Noranda completed its acquisition of full ownership of Gramercy and St Ann on August 31, 2009. Prior to the “consummation of the Joint Venture Transaction”, Noranda’s net income from those entities accounted for 50 per cent of the earnings before interest, tax, depreciation, and amortisation.

The cash cost of primary aluminum production was US$0.78 per pound in fourth quarter 2009, compared to US$0.76 per pound in third quarter 2009, and US$0.88 per pound in fourth quarter 2008, the company stated.

Selling, general and administrative costs increased US$5.1 million in fourth quarter 2009 compared to third quarter 2009, due primarily to the full-quarter effects of the operations of Gramercy and St Ann, and slightly higher payroll related expenses in fourth quarter 2009.

Fourth-quarter 2009 operating results also include a US$65-million impairment write-down for downstream goodwill.