Q1 2024 Century Aluminum Co Earnings Call Transcript
Key Points
- Century Aluminum Co (CENX) reported strong operational performance and declining costs, leading to an adjusted EBITDA of $25 million in Q1.
- The Jamalco acquisition has provided Century Aluminum Co (CENX) with a captive supply of high-quality alumina and bauxite, making the company roughly net neutral to API pricing.
- Recent sanctions on Russian aluminum and other metals are expected to support US delivery and value-added product premiums, benefiting Century Aluminum Co (CENX).
- Century Aluminum Co (CENX) has initiated exciting growth projects, including a new US greenfield smelter and a secondary joint venture with MX Holdings for secondary aluminum production.
- The company has maintained strong liquidity with $302 million at the end of the quarter, consisting of $93 million in cash and $209 million available on credit facilities.
- Despite strong operational performance, Century Aluminum Co (CENX) experienced a sequential decrease in adjusted EBITDA by $32 million, primarily due to the timing of recognizing the Section 45X benefit.
- The power curtailments in Iceland led to reduced production volumes from the Grundartangi facility, impacting overall output.
- Century Aluminum Co (CENX) faces ongoing challenges with the global trading environment, particularly with the majority of available metal being comprised of Russian stocks.
- The company reported a net sales decrease of 4% sequentially to $490 million, influenced by lower value-added and regional delivery premiums.
- There are significant capital and operational challenges associated with the new growth projects, including the greenfield smelter and secondary aluminum production, which require careful management and strategic planning.
Ladies and gentlemen, thank you for standing by. Welcome to the Century Aluminum Company first-quarter 2024 earnings conference call. (Operator Instructions) I would now like to turn the conference call over to our host, Ryan Crawford. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to the conference call. I'm joined here today by Jesse E. Gary, Century's, President and Chief Executive Officer; Jerry Bialek, Executive Vice President and Chief Financial Officer; and Peter Trpkovski, Senior Vice President of Finance and Treasurer. After our prepared comments, we will take your questions.
As a reminder, today's presentation is available on our website at www.centuryaluminum.com. We use our website as a means of disclosing material information about the company and for complying with Regulation FD. Turning to slide 1, please take a moment to review the
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