A DISPENSER of dividends from its passive share of the global AWAC joint venture with Alcoa, Alumina is poised to receive a handy cheque itself from AWAC’s sale of its share in a substandard Jamaica refinery and bauxite mine.

After flagging a sale in June, AWAC has divested its 55 per cent stake in Jamalco to Noble Group for $US140 million, and for a book loss of $US210m-$US260m.

Alumina (AWC, $1.57) reports a proportionate book loss, presumably $US84m — $US104m give or take some accounting differences.

Still, Alumina receives about $US56m in cash and the board is still pondering how to use the funds.

The obvious option is a debt demolition, although Alumina’s gearing (currently a net $113m) is declining anyway, as the venture enjoys improved cash flows from better pricing and lower costs.

Alumina also has light forward capex requirements, the main item being around $US11m of start-up costs for the venture’s Ma’aden refinery in Saudi Arabia.

While AWAC recently closed the Point Henry refinery for a loss of $US35m, Jamalco is the first refinery divestment since the venture was formed.

Jamalco, 45 per cent owned by the country’s government, was in need of substantial capex to get it to the needed level of efficient operation.

The sale comes in the context of an improving climate for alumina and aluminium pricing, reflected in Alcoa’s third-quarter statement this week.

The docco cited average spot aluminium prices of $US2031 a tonne for August-September, compared with $US1880/t in the third quarter and $US1782/t in the second quarter.

Still no-one’s getting too excited about anything commodity related in another ugly day on the market, with Alumina shares down 6.5c a share (4 per cent) at noon.

This suggests long-term value in the stock, although there have been plenty of false calls re an imminent recovery in demand for the lightweight (but energy hungry) metal of the future.