Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q3 2024 Earnings Presentation
26 slides from Century Aluminum's earnings presentation, Nov 4, 2024
Slide 1: Century Aluminum Company 3rd Quarter Earnings Call
Century Aluminum Company 3rd Quarter Earnings Call November 4, 2024
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation, and those made by Century Aluminum Company management on the quarterly conference call, relate to future events and expectations and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 19
Slide 3: Speakers
Speakers • Jesse Gary – President and Chief Executive Officer • Jerry Bialek – Executive Vice President and Chief Financial Officer • Peter Trpkovski – Senior Vice President, Finance and Treasurer 2
Slide 4: Company and Market Update
Company and Market Update • Aluminum prices rose sharply to end Q3 on central bank actions and Chinese stimulus measures Industry • Alumina supply remains tight, driving prices to multi-year highs and supporting higher aluminum prices Fundamentals • Global inventory levels continue to stay near hist
Slide 5: Industry Environment: LME, Alumina, Premiums, Power Rates
Industry Environment LME Aluminum Alumina Price Index 3,400 750 3,200 700 3,000 650 2,800 600 550 LME $/MT 2,600 API $/MT 500 2,400 450 2,200 400 2,000 350 300 1,800 250 1,600 200 1,400 150 Regional Premiums Power Rates 300 900 800 250 Regional Premiums $/MT Power Rates $/MWh 700 200 600 500 150 400
Slide 6: Industry Environment: Aluminum Supply and Demand Balance
Industry Environment Aluminum Supply and Demand Balance – FY24 Primary Aluminum Balance – US and EU 80 - 72.3 71.8 Primary Aluminum Balance (MT in (0.5) 70 Primary Aluminum (MT in MM's) (1.0) 60 (1.5) 50 44.3 (2.0) 42.8 MM's) 40 (2.5) (2.3) 29.5 27.4 (3.0) 30 (2.9) (3.0) (2.9) (3.5) (3.1) (3.1) 20 (
Slide 7: Industry Environment: Smelter and Refinery Input Prices
Industry Environment Indy Hub $/MWh Coke $/MT $70 Smelter Input Prices $701 $558 $41 $438 $33 $33 $391 $390 $32 $27 $287 $23 $242 2019 2020 2021 2022 2023 2024 Spot 2019 2020 2021 2022 2023 2024 Spot YTD YTD Caustic $/MT HFO $/bbl $824 $85 Refinery Input Prices $68 $65 $62 $57 $58 $505 $500 $384 $38
Slide 8: Final 45X rules increase CENX benefit with potential for future upside
Final 45X rules increase CENX benefit with potential for future upside Status Update • Final guidance for the Advanced Manufacturing Production Credit was published on October 24, 2024 • Final rules include carbon and other operating supplies as eligible production costs for calculating the tax cred
Slide 9: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q224 Q324 Income statement Aluminum shipments (tonnes) 167,908 168,755 Net sales $ 561 $ 539 Net income/(loss) (3) 47 Earnings/(loss) per share (0.03) 0.46 Adjusted net income/(loss)1 1 60 Adjusted earnings/(loss) per share1 0.01
Slide 10: Q2 24 to Q3 24 Adjusted EBITDA
Financial Results Q224 to Q324 Adjusted EBITDA ($MM) ( ) 1 E Energy aw 1 Ad . E A elivery rems. aterials Additional Additional Ad . E A 2 2 1) See reconciliation to comparable GAAP financial measure in appendix 2) Carbon and other supplies 9
Slide 11: Q2 24 to Q3 24 Cash Flow
Financial Results Q224 to Q324 Cash Flow ($MM) ( ) ( ) ( ) ( ) Cash Ad . CA E et C ther Cash 1 2 E A (includes orrowing eceiva le port repair) ( epayment) 1) See reconciliation to comparable GAAP financial measure in appendix 2) Includes incremental 45X credit from latest guidance and normal 45X cre
Slide 12: Q4 Outlook at Realized Prices
Q4 Outlook at Realized Prices Adjusted EBITDA1 GUIDE 2 Q3 Actual Adjusted EBITDA Attributable to Century $73 LME / Delivery Premiums $(5) – $0 LME $2,430/MT US Midwest Premium $425/MT European Duty Paid Premium $340/MT Energy $0 – $5 Indy Hub $33/MWh HFO $60/bbl Henry Hub $2.60/mmbtu Q4 Outlook @ Es
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA and net debt are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results
Slide 15: Adjusted Net (Loss) Income Non-GAAP Reconciliation
Adjusted Net (Loss) Income Attributable to Century Non-GAAP Reconciliation Q224 Q324 $MM EPS $MM EPS Net (loss) income attributable to Century stockholders $ (2.5) $ (0.03) $ 47.3 $ 0.51 Less: net (loss) income allocated to participating securities - - 2.5 0.03 Net income (loss) allocated to common
Slide 16: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation $MM Q224 Q324 Net (loss) income attributable to Century stockholders $ (2.5) $ 47.3 Add: Net (loss) attributable to noncontrolling interests (4.2) (5.0) Net (loss) income (6.7) 42.3 Interest expense 10.3 11.9 Interest income (0.6) (0.4) Net loss (gain) on forw
Slide 17: Financial Hedge Landscape
Financial Hedge Landscape Volume (unit) / % Hedged / Price/unit1 Commodity (unit) FY25 FY26 Volume % Hedged Price Volume % Hedged Price LME (MT) 25,000 4% $ 2,625 2,500 <1% $ 2,625 MWP (MT) 25,000 6% $ 480 2,500 1% $ 485 Indiana Hub (MWh) 455,000 13% $ 44 46,000 1% $ 43 HFO (bbls)2 265,000 34% $ 63
Slide 18: 2024 Financial Assumptions
2024 Financial Assumptions Income Statement ($MM) YTD FY24 Cash Flow ($MM) YTD FY24 Aluminum shipments (kMT) 511 685 Sustaining Capex $13 $10-15 Jamalco Capex1 $11 $10-15 D&A $65 $85-90 Iceland Casthouse $34 $30-35 SGA $33 $40-45 SGA $33 $35-40 Interest Expense $32 $40-45 Interest $20 $35-40 Varies
Slide 19: 2024 Financial Information
2024 Financial Information Sensitivities ($MM) Variance Annual EBITDA7 Annual Cash8 Pricing Convention LME +/- $100/MT $ 46 $ 43 U.S.:50% ~1 month lag / 50% ~3 month lag LME MWP 1 +/- $22.04/MT 9 9 Iceland: primarily ~3 month lag MWP ~1 month lag EDPP2 +/- $22.04/MT 7 7 EDPP ~3 month lag Alumina Pri
Slide 20: Capacity and Production Information
Capacity and Production Information Aluminum facilities (kMT) Plant Country Capacity % Operating Sebree U.S. 220 100 Hawesville U.S. 250 0 Mt. Holly U.S. 230 75 Grundartangi Iceland 320 100 Total 1,020 70 Carbon anode facility (kMT) Plant Country Capacity % Operating Vlissingen Netherlands 150 100 T
Slide 21: Value-Added Products
Value-Added Products Value-added products capacity (kMT) FY24 FY25 Sebree – Billet/Slab 175 175 Mt. Holly – Billet/Slab 120 120 Grundartangi – Natur-Al TM Foundry Alloy 120 120 Grundartangi – Natur-Al TM Billet 150 150 Total 565 565 20
Slide 22: Capital Allocation
Capital Allocation Capital Allocation Framework Current Status Update • $250-$300MM liquidity Q324 Target Maintain Liquidity Through the target Investment Cycle Capital Liquidity $279 $250-300 • $300MM net debt target Projects Net Debt $453 $300 Sustaining Capital • $30-35MM in historical Projects s
Slide 23: Green Aluminum Smelter Project
Green Aluminum Smelter Project Investing in the future of the U.S. aluminum industry with first primary smelter in 45 years, nearly doubling the size of the current footprint • The U.S primary aluminum market is • Selected by the US Department of • Multi-phase planning/construction short ~4.1 millio
Slide 24: Century Well Positioned for 2024 and Beyond
Century Well Positioned for 2024 and Beyond • Duty free access for U.S. and EU regional delivery premiums • Reliable supply to customers in short markets • Balanced operational footprint Aluminum Smelter Corporate Norðurál Headquarters Grundartangi Chicago, IL Iceland Carbon Anode United States Plan
Slide 25: Natur-Al products are made with energy from 100% renewable sources
“Natur‐Al products are made with energy from 100% renewable sources” 24
Slide 26: For Additional Information
For Additional Information Ryan Crawford investorrelations@centuryaluminum.com 312-696-3132 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 25
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