Century Aluminum Company Q3 FY2025 earnings call

• Safety: Jamalco weathered Hurricane Melissa with no injuries, production restarted and expected to resume full production in weeks. Team provided assistance to surrounding communities.
• Grundartangi: Transformer failures led to temporary production stop. Team executing restart preparations; expected 11-12 months for restart, with potential to repair failed transformers to accelerate timeline.
• Mt. Holly: Extended power agreement through 2031. Restart project progressing; production fell short in Q3 but resolved. Expected to begin producing incremental units in Q2 2026 and complete restart by end of June.
• Hawesville: Strategic review extended due to increased interest; focusing on due diligence with new and existing parties.
• New U.S. smelter project: Advanced negotiations with power providers, interest from joint venture partners; potential to triple U.S. production by end of decade.
• Market Conditions: Strong aluminum prices, global shortages. U.S. and European premiums increased. Expected ~$0.05 year-over-year increase in 2026 billet sales generating $30 million of 2026 EBITDA.

Consolidated third quarter shipments totaled approximately 162,000 tonnes, a decrease from the prior quarter due to brief operational instability at Mt. Holly and the Grundartangi transformer failure. Net sales for the quarter were $632 million, a $4 million increase primarily due to higher realized Midwest premium, partially offset by lower shipments. Net income was $15 million or $0.15 per share, and adjusted net income was $58 million or $0.56 per share. Adjusted EBITDA was $101 million for the quarter, mainly driven by the increased Midwest premium price, partially offset by lower volumes and product premiums at Mt. Holly. Sebree had another quarter of near record performance across operational and financial KPIs.

• Q4 adjusted EBITDA expected in the range of $170 million to $180 million.
• Mt. Holly restart to increase profitability starting in Q2 2026.
• Expect to reach net debt target of $300 million early in 2026, leveraging 45X tax credits.
• Q4 EBITDA impacted by Grundartangi Line 2 outage, expected insurance coverage but with potential lag in proceeds.
• Hedge and tax impacts: $10 million to $15 million headwind from realized hedge settlements and $5 million tax expense in Q4.

• Transformer failures at Grundartangi with uncertain repair timeline, potentially delaying restart.
• Insurance deductibles of $15 million on property and business interruption policies.
• Hedging uncertainties and market price risks affecting financial results.

Q: About Mt. Holly restart, can it generate over $60 million in EBITDA at spot prices, how much CapEx spent to date, and when will full run rate be achieved?

A: CapEx spent minimally, total project ~$50 million. Full run rate expected in Q3 2026, with additional ~$25 million in EBITDA per quarter at spot prices.

Q: Iceland transformer repairs, is there potential to accelerate the restart of the potline?

A: Proceeding on 2 paths. Replacement transformers have an 11-12 month timeline, but investigating repair of damaged transformers to accelerate restart.

Q: What's the timeline for the Hawesville strategic review?

A: No exact timeline, extended due to new interest to allow for due diligence; focus on proceeding as quickly as possible but no specific date.

Q: Can you lock in the Midwest premium and hedge LME metal?

A: No change to hedging policy. Mainly hedge power price risk at Sebree, with normal hedging amounts for Midwest premium and LME, focusing on mitigating market risks for Sebree.