Q3 2024 Century Aluminum Co Earnings Call Transcript
Key Points
- Century Aluminum Co (CENX) reported strong third-quarter performance with an adjusted EBITDA of $104 million, benefiting from improved aluminum prices and updated 45X guidance.
- The company anticipates continued profitability in the fourth quarter due to favorable aluminum market conditions and falling carbon prices.
- Global aluminum demand is at record levels, driven by trends towards electrification and lightweighting, with expectations for further growth in 2025.
- Century Aluminum Co (CENX) benefits from a stable alumina supply through its acquisition of Jamalco, reducing exposure to volatile spot alumina prices.
- The company has received significant interest in its Hawesville facility for potential redevelopment, indicating potential future value realization.
- A safety incident at the Mt. Holly smelter resulted in a fatality, highlighting ongoing safety challenges within the company.
- The company faces potential power curtailments at its Icelandic operations due to low reservoir levels, impacting production volumes.
- Liquidity decreased in the third quarter, primarily due to inventory builds and timing of alumina shipments, although this is expected to reverse in Q4.
- The company is exposed to potential geopolitical risks in the bauxite and alumina markets, particularly with supply disruptions in Guinea.
- Despite strong market conditions, Century Aluminum Co (CENX) is cautious about restarting capacity due to potential exposure to high spot alumina prices for new volumes.
Hello, everyone. Thank you for attending today's Century Aluminum Company third-quarter 2024 earnings conference call. My name is Sarah and I'll be your moderator for today. (Operator Instructions)
I would like to pass the conference over to Ryan Crawford.
Thank you, operator. Good afternoon, everyone, and welcome to the conference call.
I'm joined here today by Jesse 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
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