CENTURY ALUMINUM CO Q1 FY2025 earnings call

• Safety: Q1 safety performance improved at all locations, with a focus on culture improvement.
• Financials: Adjusted EBITDA $78M, net debt reduced by $55M, liquidity up $94M. Working capital improved.
• Market conditions: LME prices, Midwest, and European premiums moved; Section 232 tariffs impacted Midwest premium.
• Operational updates: Grundartangi resumed full production, extended power agreement; Mt. Holly recovering from instability; Jamalco ongoing capital for steam turbine; Hawesville evaluation ongoing; Sebree brought forward carbon plant maintenance with $10M one-time spend in Q2.

Century generated $78 million of adjusted EBITDA in the first quarter. Net sales were $634 million, up $3 million due to higher metal volume and pricing. Adjusted EBITDA was down modestly from Q4 due to polar vortex-linked energy costs and alumina headwinds, but higher realized LME prices ($2,553 avg), Midwest premium ($602 avg), and European premium ($336 avg) contributed. Grundartangi returned to full production in March but had lower European billet orders. Sebree had strong Q1 with operational improvements. Jamalco is executing a capital program to boost capacity. Mt. Holly recovered from Q4 operational instability.

• Q2 adjusted EBITDA expected $80M to $90M. Lagged LME price down vs Q1, Midwest premium up, European premium down.
• Energy: U.S. energy prices easing, HFO prices at Jamalco benefiting from lower oil.
• Raw materials: Coke, pitch, caustic headwinds $5M-$10M.
• One-time OpEx: $10M-$15M for Sebree maintenance (one-time in Q2).
• Volume/mix: $5M benefit.
• Hedge/tax: $5M headwind each.

• Polar vortex led to higher energy prices at U.S. operations in Q1.
• Alumina price volatility due to supplier force majeure and lagged accounting.
• European billet market demand weakness and different pricing dynamics vs U.S.
• Operational instability at Mt. Holly impacting efficiencies in Q4, still a focus.

Q: Clarify on second quarter incremental OpEx costs being one-time.

A: Jesse Gary confirms it's one-time in Q2.

Q: Manufacturing credit receivable timing.

A: Pete Trpkovski says $60M of FY 2023 credit expected in Q2, remaining $20M later.

Q: Exchange inventories and demand inflection point.

A: Jesse Gary notes strong U.S. demand, small uptick in Europe, expects small deficit in 2025.

Q: Alumina surplus and refinery closures.

A: Jesse Gary expects alumina refinery closures if prices fall enough.

Q: Second quarter raw material hit clarification.

A: Pete Trpkovski explains coke, pitch, caustic price headwinds contributing $5M-$7M in Q2.

Q: New aluminum smelter milestones.

A: Jesse Gary says finalize power negotiations, site selection, then engineering in 2026 before significant CapEx.