Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q4 2020 Earnings Presentation
19 slides from Century Aluminum's earnings presentation, Feb 18, 2021
Slide 1: Century Aluminum Company 4th Quarter Earnings Call
Century Aluminum Company 4th Quarter Earnings Call February 18, 2021
Slide 2: Cautionary Statement
Cautionary Statement This presentation and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21
Slide 3: Speakers
Speakers • Mike Bless – President and Chief Executive Officer • Craig Conti – Executive Vice President and Chief Financial Officer • Peter Trpkovski – Director of Financial Planning and Analysis • Shelly Harrison – Senior Vice President, Finance and Treasurer 2
Slide 4: Overview
Overview • Industry fundamentals increasingly robust • Operations stable – Hawesville recovering from December equipment issues • Mt. Holly three-year contract awaiting state approval; production increasing to 75% of capacity • Continued support for Section 232 program • First major sale of Natur-Al
Slide 5: Century Aluminum and Glencore to Supply Natur-Al to Hammerer Aluminium
“Century Aluminum and Glencore to Supply 150,000 metric tons of Natur‐Al™ to Hammerer Aluminium Industries” “Natur‐Al™ products are made with energy from 100% renewable sources” 4
Slide 6: Industry Environment
Industry Environment LME Aluminum Pricing Aluminum Supply and Demand Balance Key Raw Materials 1) Source: CRU Group, Century Aluminum Company 5
Slide 7: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q320 Q420 Income statement Shipments (tonnes) 203,022 194,940 Net sales $ 393 $ 389 Net income/(loss) (58) (36) Earnings/(loss) per share (0.65) (0.40) 1 Adjusted net income/(loss) (64) (31) 1 Adjusted earnings / (loss) per share
Slide 8: Financial Results: Q3 vs Q4 Adjusted EBITDA
Financial Results Q320 vs. Q420 Adjusted EBITDA ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 7
Slide 9: Financial Results: Q3 vs Q4 Cash Flow
Financial Results Q320 vs. Q420 Cash Flow ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 8
Slide 10: 2021 Items
2021 Items Hawesville – 195k tonnes Sebree – 220k tonnes Shipments Mt. Holly – 140k tonnes Grundartangi – 320k tonnes U.S. – LME ~50% 1 month lag and ~50% 3 month lag; Midwest Premium primarily 1 month lag Pricing1 Iceland – LME and European Duty Paid Premium primarily 3 month lag Value Added Produc
Slide 11: 2021 Items continued
2021 Items continued Book ~$45MM SG&A Cash ~$35MM Book ~$37MM Interest Cash ~$34MM Hawesville term $20MM loan paydown Sustaining ~$20MM Capex Investment (ex Mt. Holly Restart) $0MM - $5MM Mt. Holly Restart ~$50MM Depreciation $80 - $90MM U.S. – Book/Cash <$1MM Income tax Iceland – Book 20%; <$5MM ca
Slide 12: Appendix
Appendix
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income / (loss) and adjusted earnings / (loss) per share 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
Slide 14: Adjusted Net Income (Loss) Non-GAAP Reconciliation
Adjusted Net Income (Loss) Non-GAAP Reconciliation Q320 Q420 $MM EPS $MM EPS Net income (loss) as reported $ (58.2) $ (0.65) $(35.5) $ (0.40) Lower of cost or NRV inventory adjustment, net of tax (15.4) (0.17) (2.4) (0.02) Unrealized (gain) loss on forward and derivative contracts, net of tax 8.0 0.
Slide 15: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q320 Q420 Net income (loss) as reported $ (58.2) $ (35.5) Interest expense 9.1 8.7 Interest expense - term loan 0.4 0.3 Interest income (0.1) (0.2) Net (gain) loss on forward and derivative contracts 9.4 15.4 Loss on early extinguishment of debt 1.2 - Ot
Slide 16: 2021 Items – Q2-Q4 Price Assumptions
2021 Items – Q2-Q4 Price Assumptions Key Assumption Units Price Midwest Premium $/MT $ 340 European Duty Paid Premium $/MT 150 Alumina Price Index $/MT 300 MISO Indiana Hub $/MWh 28 1 Nord Pool $/MWh 34 Coke $/MT 300 1) Assumes EURUSD of 1.21 15
Slide 17: 2021 Items Gross to Net Plant Cash Cost Reconciliation
2021 Items Gross to Net Plant Cash Cost Reconciliation FY21 ($/MT) U.S. Iceland Gross plant operating cash costs ($/MT) $ 2,130 $ 2,180 $ 1,820 $ 1,870 Regional premium (340) (340) (150) (150) Other1 (50) (50) - - Net plant operating cash costs ($/MT) $ 1,740 $ 1,790 $ 1,670 $ 1,720 1) Product premi
Slide 18: 2021 Sensitivities
2021 Sensitivities ($MM) Variance Annual EBITDA6 LME +/- $100/MT $ 52 MWP1 +/- $22.04/MT 12 EDPP2 +/- $22.04/MT 7 Alumina Price Index +/- $10/MT 2 MISO Indiana Hub3 +/- $1/MWh 6 Nord Pool4 +/- $1/MWh 1 Coke5 +/- $10/MT 3 Pitch5 +/- $10/MT 1 1) Midwest Premium for all U.S. operations 4) Power market
Slide 19: For Additional Information
For Additional Information Peter Trpkovski 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 18
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