Century Aluminum (CENX) 8-K Century Aluminum Reports Second Quarter 2009 Results

Exhibit 99.1

Century Aluminum Reports Second Quarter 2009 Results

MONTEREY, CA.  July 23, 2009 -- Century Aluminum Company (NASDAQ:CENX) reported a net loss of $33.9 million ($0.46 per basic and diluted share) for the second quarter of 2009. Reported second quarter results were negatively impacted by a charge of $9.2 million ($0.12 per basic and diluted share) related to ongoing costs associated with the production curtailments at the Ravenswood, WV and Hawesville, KY primary aluminum smelters.  Lower of cost or market inventory adjustments of $26.9 million ($0.36 per basic and diluted share) favorably impacted the quarterly results.

In the second quarter of 2008, the company reported a net loss (as adjusted to reflect the implementation of FASB Staff Position APB 14-1 – Accounting for Convertible Debt Instruments) of $3.5 million ($0.08 per basic and diluted share), which included an after-tax charge of $129.9 million ($3.16 per basic share) for mark-to-market adjustments on forward contracts that did not qualify for cash flow hedge accounting and a non-cash after-tax benefit of $15.5 million ($0.38 per basic share) resulting principally from a reduction in non-U.S. corporate tax rates. The dilutive effect of the convertible notes, options and service-based awards would have reduced basic EPS by $0.21. Cash used to settle forward contracts that did not qualify for cash flow hedge accounting was $62.8 million.

Recent highlights included:

 · Approximately 28 percent of Century's global (or 42 percent of its U.S.) primary aluminum capacity remains curtailed.  The Gramercy alumina refinery continues to produce at approximately 50 percent of its capacity for smelter grade alumina.

  · The Grundartangi smelter shipped at an annual rate of approximately 276,000 metric tons during the quarter.

  · The company finalized a new, long-term, cost-based, power contract for the Hawesville, KY smelter.

  · Nordural maintained modest activity levels at its greenfield project site near Helguvik, Iceland, and is progressing plans for a possible restart of major construction activities.

  · Cash totaled $230 million on June 30, 2009.

Sales in the second quarter of 2009 were $189.2 million, compared with $545.2 million in the second quarter of 2008.  Shipments of primary aluminum for the quarter totaled 145,693 tonnes compared with 198,172 tonnes in the year-ago quarter.

For the first half of 2009, the company reported a net loss of $148.5 million ($2.14 per basic and diluted share).  Included in these results is a charge of $33.5 million ($0.48 per basic and diluted share) for costs associated with production curtailments at the Ravenswood, WV and Hawesville, KY primary aluminum smelters and a favorable inventory market value adjustment of $24.6 million ($0.35 per basic and diluted share).  This result compares with a net loss (as adjusted for FASB Staff Position APB 14-1) of $237.4 million ($5.78 per basic and diluted share) in the year-ago period, which included an after-tax charge of $415.8 million ($10.12 per basic share) for mark-to-market adjustments on forward contracts that did not qualify for cash flow hedge accounting. The dilutive effect of the convertible notes, options and service-based awards would have reduced basic EPS for the first half of 2008 by $0.30 per share. During the first half of 2008, cash used to settle forward contracts that did not qualify for cash flow hedge accounting was $115.0 million.

Sales in the first six months of 2009 were $413.7 million compared with $1,016.3 million in the same period of 2008. Shipments of primary aluminum for the first six months of 2009 were 311,181 tonnes compared with 397,894 tonnes for the comparable 2008 period.

"We made steady progress toward our goals of liquidity enhancement and operational restructuring during the quarter," said president and chief executive officer Logan W. Kruger.  "Our teams at Hawesville and Grundartangi have done outstanding jobs in reducing the cost of their operations.  The new power contract for Hawesville protects the Company in the short term and enhances the smelter's longer-term prospects.  These efforts, coupled with the capacity curtailment actions earlier in the year, have strengthened Century's liquidity.

"Despite recently improving metal prices, we believe the balance of risk remains on the downside," continued Mr. Kruger.  "The demand outlook has improved somewhat in certain regions and sectors.  However, we remain convinced the industry must take additional supply side actions for a global balance to be achieved.  We continue to plan for a challenging industry environment over the near- and medium-term.

"The future of the Helguvik project remains a key focus," Mr. Kruger concluded.  "This project is world class in every facet and will pay attractive returns to Century's shareholders over the long-term.  We are making progress in our efforts to restart major construction activities as soon as practical, consistent with our requirement of protecting the Company's financial position."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an interest in alumina and bauxite assets in the United States and Jamaica. Century's corporate offices are located in Monterey, California.

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Century Aluminum’s quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.

Contacts:

Mike Dildine (media)	831-642-9364
Shelly Lair (investors)	831-642-9357

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:

Helga Gunnarsdottir, Director-Corporate Finance, NBI hf.

Astros Vidarsdottir, Senior Manager-Corporate Finance, NBI hf.

Cautionary Statement

This press release may contain "forward-looking statements" within the meaning of U.S. federal securities laws. The company has based its forward-looking statements on current expectations and projections about the future; however, these statements are subject to risks, uncertainties and assumptions, any of which could cause the company's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in the company's Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. The company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made.

Century Aluminum Company

Consolidated Statements of Operations

(in Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended June 30,						Six Months ended June 30,
	2009			2008			2009			2008
				As Adjusted						As Adjusted
NET SALES:
Third-party customers	$	140,097		$	420,032		$	310,511		$	776,925
Related parties		49,056			125,165			103,229			239,414
		189,153			545,197			413,740			1,016,339
COST OF GOODS SOLD		194,380			388,973			491,328			764,120
GROSS PROFIT (LOSS)		(5,227	)		156,224			(77,588	)		252,219
OTHER OPERATING EXPENSES – CURTAILMENT COSTS		9,166			-			33,498			-
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		11,271			13,851			21,391			32,717
OPERATING INCOME (LOSS)		(25,664	)		142,373			(132,477	)		219,502
INTEREST EXPENSE – Net		(7,625	)		(5,699	)		(14,943	)		(11,208	)
INTEREST INCOME – AFFILIATES		144			-			286			-
NET LOSS ON FORWARD CONTRACTS		(3,268	)		(203,784	)		(6,870	)		(652,092	)
OTHER INCOME (EXPENSE) – Net		586			306			344			(227	)
LOSS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		(35,827	)		(66,804	)		(153,660	)		(440,025	)
INCOME TAX BENEFIT (EXPENSE)		(2,573	)		57,744			1,523			196,635
LOSS BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		(38,400	)		(9,060	)		(152,137	)		(247,390	)
EQUITY IN EARNINGS OF JOINT VENTURES		4,488			5,566			3,601			9,959
NET LOSS	$	(33,912	)	$	(3,494	)	$	(148,536	)	$	(237,431	)
LOSS PER COMMON SHARE
Basic and Diluted	$	(0.46	)	$	(0.08	)	$	(2.14	)	$	(5.78	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted		74,143			41,143			69,402			41,092

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	June 30, 2009			December 31, 2008
ASSETS				As Adjusted
Current Assets:
Cash	$	230,031		$	129,400
Restricted cash		865			865
Short-term investments		-			13,686
Accounts receivable – net		34,609			60,859
Due from affiliates		14,063			39,062
Inventories		126,832			138,111
Prepaid and other current assets		19,901			99,861
Deferred taxes - current portion		-			32,290
Total current assets		426,301			514,134
Property, plant and equipment – net		1,319,899			1,340,037
Intangible asset - net		24,453			32,527
Due from affiliates – less current portion		7,599			7,599
Other assets		164,688			141,061
Total	$	1,942,940		$	2,035,358
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	66,344		$	102,143
Due to affiliates		64,023			70,957
Accrued and other current liabilities		61,262			58,777
Accrued employee benefits costs - current portion		12,070			12,070
Convertible senior notes		156,704			152,700
Industrial revenue bonds		7,815			7,815
Total current liabilities		368,218			404,462
Senior unsecured notes payable		250,000			250,000
Revolving credit facility		-			25,000
Accrued pension benefit costs - less current portion		45,307			50,008
Accrued postretirement benefits costs - less current portion		161,803			219,539
Other liabilities		41,757			33,464
Deferred taxes		65,252			71,805
Total noncurrent liabilities		564,119			649,816
Shareholders’ Equity:
Preferred stock (one cent par value, 5,000,000 shares authorized; 153,491 shares outstanding at June 30, 2009 and 155,787 at December 31, 2008)		2			2
Common stock (one cent par value, 195,000,000 shares authorized; 74,158,900 shares outstanding at June 30, 2009 and 49,052,692 at December 31, 2008)		742			491
Additional paid-in capital		2,378,436			2,272,128
Accumulated other comprehensive loss		(65,708	)		(137,208	)
Accumulated deficit		(1,302,869	)		(1,154,333	)
Total shareholders’ equity		1,010,603			981,080
Total	$	1,942,940		$	2,035,358

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Six months ended June 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:				As Adjusted
Net loss	$	(148,536	)	$	(237,431	)
Adjustments to reconcile net loss  to net cash provided by operating activities:
Unrealized net loss on forward contracts		2,514			536,650
Accrued plant curtailment costs		21,051			-
Depreciation and amortization		40,063			41,860
Lower of cost or market inventory adjustment		(38,187	)		-
Deferred income taxes		25,030			(195,874	)
Pension and other post retirement benefits		7,495			8,513
Stock-based compensation		1,269			11,658
Excess tax benefits from share based compensation		-			(657	)
Undistributed earnings of joint ventures		(3,601	)		(9,959	)
Change in operating assets and liabilities:
Accounts receivable - net		26,250			(1,042	)
Purchase of short-term trading securities		-			(97,532	)
Sale of short-term trading securities		13,686			345,764
Due from affiliates		24,999			(6,595	)
Inventories		31,140			(30,212	)
Prepaid and other current assets		77,891			(20,821	)
Accounts payable, trade		(24,768	)		16,693
Due to affiliates		(11,435	)		7,726
Accrued and other current liabilities		(7,109	)		(5,544	)
Other - net		8,920			1,616
Net cash provided by operating activities		46,672			364,813
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(11,927	)		(14,956	)
Nordural expansion		(12,132	)		(32,648	)
Investments in and advances to joint ventures		(1,023	)		(27,621	)
Restricted and other cash deposits		-			(1,898	)
Net cash used in investing activities		(25,082	)		(77,123	)
CASH FLOWS FROM FINANCIING ACTIVITIES:
Repayment under revolving credit facility		(25,000	)		-
Excess tax benefits from share based compensation		-			657
Issuance of common stock - net		104,041			2,335
Net cash provided by financing activities		79,041			2,992
NET CHANGE IN CASH		100,631			290,682
CASH, BEGINNING OF THE PERIOD		129,400			60,962
CASH, END OF THE PERIOD	$	230,031		$	351,644

Century Aluminum Company

Selected Operating Data

(Unaudited)

	SHIPMENTS - PRIMARY ALUMINUM
	Direct (1)						Toll
	Metric Tons		(000) Pounds		$/Pound		Metric Tons		(000) Pounds		(000) Revenue
2009
2nd Quarter		76,817		169,353	$	0.69		68,876		151,846	$	72,136
1st Quarter		97,392		214,712	$	0.72		68,096		150,126	$	71,048
2008
2nd Quarter		131,639		290,214	$	1.37		66,533		146,681	$	147,128
1st Quarter		133,004		293,223	$	1.17		66,717		147,086	$	127,177

(1)  Does not include Toll shipments from Nordural