Century Aluminum Company Q2 FY2025 earnings call

Safety: Safety performance improved across assets in the first half, with Mt. Holly as pilot for new safety program with DuPont Safety Systems. ### Financial Results: Century generated $74 million of adjusted EBITDA in Q2. Rising Midwest premiums offset lower realized LME and European premiums and higher energy prices. Section 232 tariffs impacted results, with Midwest premium improving due to tariffs. Refinanced $400 million tranche of 6.875% notes. ### Operations: Sebree had strong quarter, completed carbon plant maintenance. Iceland's Grundartangi ramping up billet casthouse production but had transformer issue. Jamalco produced targeted levels, working on major capital improvement program. Hawesville in final negotiation. Mt. Holly restart announced, to increase production to over 220,000 metric tonnes per year with $50 million investment.

On a consolidated basis, second quarter shipments increased to approximately 176,000 tonnes, a 4% sequential increase. Net sales for the quarter were $628 million, a $6 million decrease mainly due to lower third-party alumina sales, offset by higher shipments and all-in metal pricing. Adjusted EBITDA was $74 million for the quarter. Consolidated net loss was $5 million or $0.05 per share, while adjusted net income was $30 million or $0.30 per share.

Q3 Outlook: Expected adjusted EBITDA in range of $115 million to $125 million. Lagged LME and delivery premium changes expected to increase Q3 adjusted EBITDA by $50 million. Energy costs to reduce adjusted EBITDA by $5 million. Currency expected to impact by $5 million. OpEx expected to improve by $5 million to $10 million. Volume and mix expected to decrease by $0 million to $5 million. ### Forward Look: Strong price environment expected to drive earnings growth beyond Q3 into Q4, with spot LME above $2,600 per tonne and Midwest premium high.

Bauxite Market: Turbulence in Guinea with suspended/revoked operating licenses for key producers, supporting seaborne bauxite and alumina prices. ### Currency: Headwinds from foreign operations due to U.S. dollar impact on wages and local currency-denominated expenses. ### Mt. Holly/Hawesville: Incentives and power contract details not public; Hawesville strategic review still in negotiation with final terms to be concluded by end of Q3.

Q: Katja Jancic asked about Mt. Holly raw materials sourcing and 45x credit.

A: Jesse E. Gary said Mt. Holly can service additional alumina needs from existing alumina book; Peter A. Trpkovski noted 45x credit for incremental tonnes.

Q: Nicholas Giles inquired about Mt. Holly incentives and Hawesville update.

A: Jesse E. Gary said incentives not public but State of South Carolina has been a good partner; Hawesville in final negotiation with process expected to conclude by end of Q3.

Q: Katja Jancic asked about EBITDA sensitivity based on current spot prices.

A: Jesse E. Gary explained LME and Midwest premium impacts could lead to EBITDA uplift into Q4.

Q: Nicholas Giles asked about Iceland operations and Europe premiums.

A: Jesse E. Gary said castthouse in Iceland ramping up well; Europe billet premiums firming slightly.