Century Aluminum Company earnings

Management highlights

- Discussed dynamic global aluminum market, opportunities for Sentry, and support for US aluminum supply chain. - Reviewed first quarter operational performance including Mount Holly expansion progress and restart of Hotline 2 at Grundertage. - Jamalco refinery recovery from Hurricane Melissa, global Illumina market impact, and Seabury's performance. - Pete walked through Q1 results and Q2 outlook, including spending on projects and insurance recovery. - Jesse discussed market dynamics, operational projects, and Oklahoma smelter project with EGA.

Guidance

- Q2 expected realized LME $3,175 per ton, US Midwest premium $2,450 per ton, European duty paid premium $485 per ton, expected 85 - $95 million increase to Q2 adjusted EBITDA vs Q1. - US energy prices expected to improve $15 million from prior quarter but offset by heavy fuel oil and other raw material price increases. - Operating expenses expected to increase $15 - $20 million in Q2, with headwinds from lower bauxite quality at Jamalco. - Volume and sales mix expected to improve by 15 - 20 million dollars in Q2, full run rate volume impact from Mount Holly expansion and Grundertangi restart in Q3.

Segment performance

Q1 shipments totaled ~123,000 tons. Net sales reached $649 million. Net income was $338 million or $3.23 per share, adjusted net income excluding exceptional items was $171 million or $1.63 per share. Adjusted EBITDA was $231 million. Realized LME was $2,900 per ton, US Midwest premium $2,200 per ton, European premium ~$310 per ton. Cash balance stood at $332 million, net debt declined to $220 million. Q2 expected adjusted EBITDA range $315 - $335 million with various price and cost expectations.

Risks & headwinds

- Global Illumina market impacted by Middle East smelter closures, temporarily decreased demand and weighed on prices. - Closure of Strait of Hormuz impacted Cossack soda and heavy fuel oil prices. - Jamalco experiencing lower quality bauxite than expected from certain mining areas. - Higher energy prices for Seabury due to winter storm fern.

Analyst Q&A

• Q: Opportunities to take market share while Middle East tons out of market and dialogue with EGA on Oklahoma project.

  A: Focused on filling existing customer needs with Mount Holly tons, conversations with EGA around Oklahoma smelter are full go. -

• Q: 2Q guide, OPEC seasonality, incremental potential in current spot environment.

  A: Seasonality in operating expenses, Q2 not fully priced yet from spot market, potential additional $400 million+ in revenue if spot prices roll through. -

• Q: Capital allocation and potential capital returns, $500 million DOE grant for Oklahoma smelter.

  A: Priority on high return organic investments, will look at capital returns, DOE grant will reduce project costs. -

• Q: Power agreement for Oklahoma smelter.

  A: Good progress in negotiations with PSO, excited to bring project to Oklahoma. -

• Q: Use of capital in second half.

  A: Landscape will become simpler, more color on use of capital on next call