Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's Century Aluminum Company Fourth Quarter 2022 Earnings Conference Call. My name is Megan and I will be your moderator for today's call. [Operator Instructions]

I will now like to pass the conference over to our host , Peter Trpkovski with Century Aluminum. ahead. go please Peter,

Peter Trpkovski

President Good our joined and Gary, here Executive we'll President questions. Executive and operator. Shelly your Officer; conference Senior take After Harrison, Century's to our call. Chief Vice Vice Bialek, Jerry I'm today Finance Officer; Chief afternoon, you, Financial welcome and and everyone, of the President and Treasurer. Thank by comments, Jesse prepared

a use means on available disclosing As a our website www. the website centuryaluminum.com. presentation as complying FD. about reminder, information our We for with of at material is and today's company Regulation

Turning moment measures statement forward-looking cautionary to in Please slide respect and statements one. take contained to review to with here a today's the financial non-GAAP discussion. shown

with And hand Jesse. I'll that, the call to

Jesse Gary

thanks today fourth of everyone start will XXXX. Grundartangi performance on And then and I'll then we I'll market XXXX our in you to by details full cathouse reviewing discussing seen through joining. off with the the update Before improving an Jerry quarter finish project. results. take have and conditions for Thank year you, far quickly so Pete, the

highs businesses Turning the financial a X, XXXX year year driving volatile the spring, markets. in Century's QX slide Aluminum and reached performance XX very across commodity strong prices to in was in QX.

world. deteriorated drove aluminum the levels pressuring time, resulting energy rates, in and and a resulting At to of conditions power the in was interest rising U.S. war prices unsustainable year downward. over dollar the half market the back Ukraine the inflation significant However, with as crisis high across on met global prices the same strengthening

million results. of million year an energy improved markets $XXX with finished adjusted $XX loss liquidity totaled improving million, with cutting across as cost which of million. $XX We Century benefits a $XXX improvement last In measures year. QX strong produced over the EBITDA of All EBITDA and business adjusted of our is approximately QX of the

projects last program year, which smelter term Mt. Holly, several the completed team returned at capacity. restart including long Our the of XX% to

phases increased U.S. first the by to completed which XX,XXX of also produce debottlenecking. programs, casthouse capacity our We value added tonnes. products our

the high the restart Since record Hawesville a holding decision of curtail in difficult that profitable and have energy and the conditions smelter. And approach curtailment see that the good the for for intend operation the that the be to our condition we'll to mitigate costs, reach the energy we Hawesville team assessing whether job the will assets in resurfacing LME done enable To we maintaining prices smelter would term. while of and costs to in disciplined a made allow wait levels reducing sustain for prices future. June and our long

on to and end at day. our Finally, each focus home to our of most return employees the safely important we continue priority every

we satisfied this we by While injuries levels. workplace zero reduce on achieve in to year. should improve injuries, We never be XX% XXXX to will significantly our proud hope coming team until the trend be over

as in we so Century's from to a direction emerge and continue in have for conditions Market trend significantly far winter. positive businesses improved QX

turn X, the curtailments of the exception. for the year drove in by demand driven the China, where balances can you XXXX five only last curtailments in impacted deficit low If deficit energy supply have see production last aluminum hydro This significantly provinces. COVID another now driven to in you reservoirs in global Slide most with been in several was year Global balances years year. remained

be in X term water capacity Chinese offline X.X tonnes million the with approximately at may continued of million additional increasing months. in due shortages in is due an near winter short curtailments We significant third Chinese consistently Brizo the the to country of China across be This a row energy production forward, currently risk winter as seasonality energy that to now capacity Sichuan Yunnan, suggesting energy to subject to seems in going a estimate is and XXX,XXX to year shortages. that tons

Chinese in supply XX leaning towards and headwinds, to and deficit we continued restarts markets further with if in materialize additional capacity favorably prices expect global risks year remain Given LME averaging should curtailments global With inventories this should removed be to respond Yunan or production larger these continue Brizo cuts Sichuan confirmed. deficits below delayed. days,

deficits costs. supply energy energy Europe, our In in drove in due prices high curtailments to been XX% and the curtailed its where U.S. of especially markets smelter widened capacity year, has high EU last remaining

Fortunately, somewhat. winter prices prices have aluminum to EU energy and demand, EU remain forward drive well helped downstream sustain lower needed has levels restarts. a spot allowed warm energy moderate prices to above smelter relatively widespread European But while both

As have one does you slide energy of significantly hour, the Pool, EU to Nord Icelandic megawatt EU have hydro exposure. have with we Euros. near of markets the above remain energy our XXXX But Iceland the graph energy any can from energy system. XXXX not supplied at expected market EU exposure onward in reservoirs contracts X, prices return From Pool some to in remain remaining Nord well prices XX XX% on hedged levels we aesthetic with do average in the later through see or across per other $XXX year. energy contango exposure prices higher

average U.S. Hub warmer significantly QX natural this Price lower. and U.S. renewable drive energy with far paired in prices as generation year so around winter increasing Indy QX. averaging over $XX at XX% accelerated have to with production, production gas have record with recovering coal moderated significantly energy a prices declines than reduction combined

February forward January fourth are have below Indy prices for $XX month Well $XX today. Hub the back contango spot remain per and XX% levels. now $XX averaging averaging pre-crisis XX% supply approximating recently lower coal the significantly now levels sitting megawatt and gas fundamentals declined improved year utility Indy balance trip coal respectively prices for natural ago in prices hour with with Hub demand Significantly and driven have and XXXX. above us reserves stockpiles prices

into more gas natural and as attractive record continue begin spot to continued price make pressure production we downward could forwards reserves spring. hedging power levels move and to Increasing

better Turning premiums, in two both higher per increase have and $XXX returning has to with us ton. continued our This levels driven XX% spot strategy term QX to U.S. of and strong EU markets, allow about trend long demand pound, regional above the so a levels and Midwest production quarter premiums. per paid $X.XX over the this to far benefit the premium, which in premiums short our aluminum from to our premium customers focus strong serve affirmation duty these EU

Midwest hedges matured our QX. remaining As in a of premium reminder, all

will of the premiums and benefit going we cash the in quarter, Europe realize full this So both increasing U.S. and forward.

in spot demand. One in area market has the relative of billet been weakness

their annual in customers December, buffered prices did destock above markets look well levels, to November automotive in as remained decline somewhat This relative in While [HPAC] in has we a experience contract orders demand. been our historic and by spot continued and have resilience inventories. measurable billet our strength

walk The This on of is the further orders impact April in through and we've improvement January, included destocking have on impact destocking Slide bottomed our results to anticipate month-over-month appears process a QX in orders. process minute. in QX will as you in outlook We February seen our and expected March. Jerry this X both increasing in

and billet aluminum trends demand continue as constructive long substitution headwinds, in term U.S. electric near term anticipate drives these very to Europe, the we consumption. both Despite vehicle increasing

consumption. aluminum As in even the discussed increase we've than more combustion larger vehicles vehicle electric XXX an use aluminum an primary in past, pounds on internal average with

trays, base internal secondary combustion like battery As the is aluminum engine primary by systems. replaced value and [HPAC] added crash intensive components block

this and term in expect demand support trend aluminum the primary We slab and for EU significant U.S. to long expansion billet

Holly Grundartangi down to expansion and at smelters QX the Mt. our strong while tonnes cost programs. of also operations, across performance performance Seabury headcount production XXXX partial combined This [XX,XXX] from allowed our with to the completion strong us last Turning curtailment, and and exceeding on in shipments total stable significant creep amount year saw production project loss a but operating reduction we and from levels. offset of expectations programs

finished stages casthouse billet U.S., projects, our capacity XX,XXX by the deottlenecking approximately of first In and plant tons our we our increasing each.

expect at additional end total of tons we of an XXXX. capacity XX,XXX the billet and plan the programs by expand We which these will by next our each start phase XXXX, will

with we should or Paired year, sell approximately of production, expected XXXX carbon its enter in this low natural completion the foundry casthouse by the alloys Grundartangi of end the value product with billet aluminum. the to Century's slab, of ability total form of added Villa XX%

year as COVID to On the increase raw remain U.S. expect side, coke supply in prices following expected the to the is QX elevated slowly in relaxation both while decreases over coke of see in do and protocols. prices we this We prices the of continue moderate course pitch Europe. stubbornly to slow Chinese material

Jerry will through and the quarter now you walk QX our outlook.

Jerry Bialek

Thank you, Jesse.

decrease and walk down project. offset X% due LME Mt in slide I'll you shipments premiums to for sales. and lower primarily XX% net substantially basis partially quarter, the restart quarter-over-quarter, . Let's the curtailment lagged were turn through a resulting the to completed On the sequential global driven a prior Holly by decreased fourth prices quarter. Realized about in significantly prices versus by delivery QX and Hawesville consolidated X results

charges share. smelter, loss impacts of credit with operating at of $XXX million in to liquidity based was loss million, Adjusted million unrealized the an quarter. improvement at $X.XX consisting of $XX excess of the contracts. the major million for per of and million was $X.X $XX million quarter, were related items cash power share In available million forward QX Hawesville results, at adjusting our per $XX.X the the compared and Looking adjusted on million had with EBITDA the net $XX or $X.X $XX.X compensation. end strong QX third facilities. We the $XXX associated capacity million

the quarter Now of European LME realized anticipated tonne prior to LME $XXX were were adjusted were Realized ton our outlet during per per fourth in to slightly down quarter than versus Midwest Fourth of sequential delivery better lagged of premiums and $XX while million down prices per turning $XX. $XXX tonne improvement realized explain last X in call. provided $XXX Slide EBITDA. premiums $X,XXX quarter down us was the $XXX

million EBITDA. amounted alumina line per $XX $XX tonne, a lower in the $XXX expectations. in million power with million cost contributing costs $XX Realized factors quarter. a on was basis, sequential these added Together, to $XX Moderating headwinds

expected. off initiatives in headcount a was incremental benefit efficiencies, as volume million savings and action, bit $XX including in our contributed global procurement but the Finally, Hawesville other reductions cost

which We quarter million, benefit was again expect the speak these a a adjusted total, outlook efficiency assumptions those for results fourth to EBITDA In XXXX also our will $XX QX $XX moment. sequentially. I million in of reflected a in programs to loss and have improvements

$XX net with ended quarter interest for Let's turn X the million, million were cash million. and totaled $XX million, spending respectively. Grundartangi flow. a casthouse with We the in CapEx million. Slide million borrowing project. cash $XX Hedge have to at settlements, million contributed capital and $X million to $XX $XX working Semiannual relates $XX and look started $XX payments which December

X insight the give I'll Now you Slide quarter. let's and turn some expectations first our for to into

QX about pricing per fourth alumina per of premium $XX at taken the and lagged is to per delivery levels. expected lagged versus tonne realized are versus QX $XXX be expected to U.S. to QX up LME tonne changes expected $X,XXX slightly expected be versus QX European to $X be quarter. per is is are $XX $XXX together approximately and million per EBITDA forecast down the is about QX alumina tonne For Lagged LME, the ton ton realized up the $XXX Midwest The $XXX premium delivery premium by decrease down prices.

fourth we the from during substantially Our decreased prices what quarter. have experienced

In to fact, markets XX% down QX Nord Indiana QX. hub and in XX% compared and are Pool respectively

compared better tonne, high coke life per or than this real about prices $XXX and Realized pitch We Coke at $XX total million prices historical stubbornly be to averages QX. above about pitch remained to QX EBITDA improvement with to but we remain expect contribute costs expect energy at in tonne. $XXX in in approximately higher improvement $X,XXX of prices $XXX sequential QX. reduction per

contribute we Together, about and $X to million pitch compared coke to the fourth improvement with expect quarter. EBITDA

million, expect considered a for in $XX outlook Jesse mainly the mentioned expect to term near and earlier. weakness All a range for million we QX a impact other Finally, mix $XX of a to sales between the about million. first factors be driven that of in EBITDA to hedge factors quarter. between headwind our billet by we gain adjusted million of $X in expected From million $XX standpoint, is realized $X

EBITDA and reminder, a of these items fall expense as adjusted net and tax $X impact million expect both We approximately below of income.

full Now Slide XX XXXX assumptions. to year for referring some financial

XX,XXX primarily standpoint of versus to down partially Hawesville, about to million to X% nearly by million three XXXX, our offset to smelters. $XX curtailment shipments about at tonnes XXXX. of we $XX in other due growth the From expect cash expect sustaining We CapEx by a decrease invest

anticipating on for on in XXXX. hedged page midwest hedges premium basis, $XX Pool, the In financial have to reviewed market addition, The and with throughout the these to casthouse hedge $XX forward we book appendix. are million updated in we previously in million financed found landscape, impacts other approximately expect in $XX the year. Iceland our to effect of to invest conditions million CapEx. which go But have we $X a hedged remaining XX% fully vary XX and will can we our assist be with million No, Nord no

to I'll that, the Jesse. over With back call turn

Jesse Gary

Jerry. Thanks,

If our Grundartangi billet. tonnes. of update low increase of to project when will The slide to XXX,XXX by XX,XXX to project allied XXX,XXX will like XX, a on which, total tonnes produce turn a you foundry capacity capacity carbon I'd total also Casthouse finished quick give tons natural our

natural have and this per emissions the footprints the cast four less times two one, industry brand, be has total amongst of which carbon production will aluminum than aluminum CoX its of low scope to three carbon than of world, our All and capability less lowest XX% in the average. tonne of as

sales its complete XXXX. expected year to the first by expect end We January in casthouse commercial with

of Europe capacity project on curtailed through and track done on tonnes job million months. is the environment stationary short billet keeping XXX,XXX budget has with production, in Our over the tons XX difficult last this the over European an domestic today team of X past two billet excellent over years.

the the customers otherwise will shortage, that for well Middle the higher be would East or carbon to products Casthouse supply left timed to import Given Grundartangi billet be European India.

green of placing European base have and an qualification and in billet that already quality customers customers back interest year our billet seen in We to billet Grundartangi strong market we purchase receive in the and existing sales host that additional Iceland from customer products. to premium the We will have of finalize from believe our issue half expect the to in natural marketplace. no high this will the to

operator. the We call look over forward to we'll And now your to the questions turn today.

Operator

Gagliano Thank David first the question comes you. from [Operator Instructions] of Our line with BMO.

open. now Your line is

David Gagliano

the generation, and Hello, annualized thanks million now what's spot annualized million maybe spot or use adjusting available. are progresses? EBITDA appreciate I'm to Slide questions. on questions million guidance for $XX I I prices, to quarter. I a you we're million is, X, expect the generation on the math what quarterly taking from outlook going Slide I rate usual to world the restarting million we for annualized, the as $XXX additional I XX, the sort ask that always based my about to for in if some the the think $XXX $XX aside and of pricing for that of in are if sensitivities, run to run rate $XX that first $XXX EBITDA compare should the we're to the what is use and do million the goes to conclusion EBITDA $XX as coming on reasonable year is million spot million And $XXX then boosters

Jesse Gary

thanks. David, Thanks question. the for hey, Yes,

about back going quarter we'll As out general in to you Obviously, sensitivities the a modeling purposes, talk provide your we've one a about reference. we've month, for QX. now in and the as we're with said in past, month expectations just only provided be for

start some fronts. some a to on we see if discussed already, continue trends we've you of improvement number of can the But

already First, crew inventories mentioned customer starting our destocking the see missing sales we're of from to you earlier.

in We should QX. ramp hit sometime QX up full that to and our expect rate early run late

seen you up U.S. both that. and And the so EU. come respect spot revenue update you Second, to premiums as with mentioned to lag the sensitivities convention we've pricing the use can prices, retail in

So the yet for to that's results.

expect cost pressure further also We moderation.

raw to to So should had coke we like signs price and below in prices QX, their other as materials, energy continue now well. alleviate start what

look then for price if you still EBITDA obviously exposure. the our reflects full And it just at remaining market our

factor prices Euro further shouldn't improvement as to to see the show contango. you hedging guide megawatt once So in you continue from our hedge, per hour XX those

asking And a to Then you're then, as I drive to think in footprint with little a and the there, amongst We'll business. from and if that we on will because think be start think CoX the think will which to demand, China we in lowest see impact have have start that positive Casthouse will European as you bit to forward casthouse broader remarks, see prepared especially billet curtailments, going my you impact all be going in Grundartangi when some margins side, on will world question. couldn't is well pair material high I amongst think cost producers lowest a response being market. we the Obviously, discussed LME billet in results. the the we very that in the the the with in very it nice at world Grundartangi a

as we future U.S. really redirect some and you in there's nice see these But opportunities me very nice we some maybe So further. we as look can a move and forward EU thoughts forward. markets two

David Gagliano

quantified some that's math those of a the of have I But helpful weren't. went in them list that Okay, just number actually qualitative and been through. a

the quantify EBITDA get you beyond quarter? magnitude Can and two not maybe coke volume that and seems things mentioned other of maybe order first line asking that are the on you pitch, are quantified. potential So that It like the just for that those in and list ones mix maybe again on upside we that uplift potential more near as term. have of

Jesse Gary

really where can't don't speculate change XX fundamental prices And been and want reason start will to go long months. but obviously we some much in historically. no [indiscernible] those more the historical for real as to those no prices going to it's of reason, why relax, past We levels. pricing have coke are to And been there's approach term where

run start model out model think could you you can in bit, there. that the a So to I rates

a over for side year. said, side, the volume annual for mix different billet contracts destocking year than so mainly impact we're on the an last as On the pricing been we this not the quarter. It's

So get year, you a business. saw the the to Grundartangi I its excited But us. the volume for the of I look again, we where bit in that term, give little if sense closer the next be material last and that towards that's on could talk to said, levels long business And of upside more about on profitability terms the come the the think back will Casthouse of project upside you we year, then we're start a And as of there. and impact about. really one as we'll

David Gagliano

somebody Great. Thanks. I will turn Thanks. else. over

Operator

Thank you, David.

question next B. Pipes line Riley. with comes Our Lucas from of the

open. is now line Your

Lucas Pipes

everyone. Thank afternoon, you much, very operator. Good

be what more for attractive Or you is that I your that the well? corrected? deem on perspective just power that the locking very I this. as in I in remarks prices prepared to the properly, for that prices much it is strategy have hedging related way energy for you wanted energy think to you there any now and opportunistic mentioned thank potential Hawesville in Thanks, to understand make sure might

Jesse Gary

where prices and they because come immediately little point. I are down. most quite hub mentioned precede Sure, a those Well, have And as at we stubborn our bit Indy just the it's largest down exposure Lucas lies forwards thanks. significantly, more come market that's seen relevant as this

going a continue into production gas obviously now. we fairly as much prices utilities stronger look and in that, [for and risk significantly some year, off better to this storage and right these country, this has little end natural when believe expensive it] at new of with at short look you this built the a we to the gas start hit premium you past coal year, back increasing bit But winter renewable situated remember, projects see pair into and as country, are this coal especially if So on and high. look you that in we're they quite production as this come generation, natural

[indiscernible] collapse continue we some collapse closer risk that us. and or spot, may a provide think So little to come for premium opportunities which that to bit could

we going forward, So to most we for there. also that that look can something [indiscernible], relevant as look is Hawesville at

better on sustain Hawesville decision operation So to that the I the said reach term. to enable side, metal for like But see curtail. levels profitable definitely the as and than both prices the market and made energy are would then we the long conditions

Lucas Pipes

get at, but later. could what of I M&A And Okay, you opportunities for come that's In back that the to helpful. share I may you noted you comment presentation, you if very sense. be highlight been Hawesville the looking make opportunistic could course, sort you've or sense much. to Thank it'd expect wouldn't I rather. maybe appreciate you I that. specifics, a and wondered on transactions to of helpful of type

Jerry Bialek

Yes.

at you're that the page think allocation And the length the we look cash we've how capital this targets we past, some the comment some obviously, hit like that at at look to forward. referencing capital use appendix. we we've about and allocation, before in flow I talked got we'd as in on going

going talk immediate go from But balance and is as step on approach I and sheet those here. flow as we sheet this more. improve into next put focus improve come be the and we improves, cash and the definitely back to to balance think you we as hit year, to those, the that our as to once we'll start targets,

and become to These that are bolt going smaller general assets fit out. transactions available and your To we've on M&A past probably you've we question our out we the strategies going term see opportunistic at from M&A that returns minutes have the long laid first We've footprint laid seen on what looking within are we'll past. to be as the [indiscernible] of usually how attractive look on our capital use specific forward. sort view

there, think transaction, past, So act term But to more is the when long it the from than us those ready exciting nothing really offer seen opportunity you've we're they in that. returns. I and complete

Lucas Pipes

Okay. I'll XX. I you. one find on Thank appreciate that. to have And Slide

there quantifying translate You with you. how appreciate in would products, add revenue the on to ’XX out the good product kind volumes a lay revenue. into this of of increase good, your would to value value approach add titling Thank is color

Jesse Gary

Sure.

I think this, look you generally, gain if online. at coming Casthouse bigger as the comes obviously, Grundartangi is

of I that think you sort going on billet most count of can into the European market.

can premiums And years. that at tons European a take months. of past seen over million tonnes in coming offline the billet so over couple you XX past look on shorter, billet about the markets market that much today the short Notably, with become we've XXX,XXX capacity the and of a has

market project for gotten has actually our more we've started since that with opportunities attractive. to it So customers

alloy XX,XXX And can tonnes revenue, coming additional being and when Grundartangi of the count at out well. the as additional foundry so big you of looking other on XXX,XXX tons at increment Grundartangi that capacity metric

built think, new a can perspective, [indiscernible] this I I of from brand being being low cost should as able be And Obviously, to casthouse modern XXXX. opportunities. that sort sense lowest you the again, I fluctuate, they revenue prices. the market additional I'm us will there look in going a on But speculate not So, give be think a where cost should to count good amongst at earlier, said margin European on you in producers. asset

may can the think use about to how margin you look. So that

Lucas Pipes

and the I'll I over on sharpen best turn call. appreciate will my pencil luck. for I of that. it now

Jesse Gary

Lucas. Thanks

Operator

Thank you, Lucas.

Independent from Our question line Research a of next John Tumazos LLC. with comes Very

is line Your open. now

John Tumazos

Thank you.

that the it looking your any Is pound that cost improvement mix the that the to that half influencing $XX.X effects have other not improve Just there alloy from much? and September goods at product? a power but or value reasonable shipped, it per quarter depreciation cost March added quarter. costs less $XX.X excluding a might been is at sold maybe in would of And expectation decline calculates least

Jesse Gary

good a thanks. It's John, Yes, question.

energy, to majority energy point to to the I impact think be right of that on you're going side. is the

mentioned. better through mix As the And you price Jerry as reading also alumina much went we coke through lower saw marginally results. of that cost

that We course, expect off mentioned. reducing to magnitude ever We coke incremental consumers and improvements -- have continued a are flat and roughly the not you little far so bit natural should gas Henry improvements of probably see we then really Hub

John Tumazos

least a good maybe much $X.XX but So is the guess quarter? March not at that for half

Jerry Bialek

Yes.

that's a good ahead John. – I go think

John Tumazos

been the we could the crude price to other it's Why don't whether a or ago, position and half or Sometimes falling sell. years seem and did pretty a a we know price. It of because bit it's the rises three to had gas fluctuations. in capacity, fall $X million investment Hub storage It oil almost go like falls a to quarter in negative, bottom. but proportional like decent power hasn't business, a It $X.X a would Maybe roughly Henry a buy little no pretty gas with sell there's time. position fallen at below a hour? incrementally probably close kilowatt the

Jesse Gary

John you, Yes, we with on agree this.

we've [boarding] embedded prices in that a than it So premium the seen higher years past. does there's risk appear higher in

just the if well. you as And mentioned, you mentioned gas utilities. mark also I and can following coal coal price, As the prices you to stockpiles references look to in

You that can't a And with in energy you significantly. can marginal energy like of spot in that cost down course, start has gone product production, of the stored, to be prices. see see reflected quite actuality which

Indy and sub to the Henry so like coal reflect starts lower lower about energy Hub for $XX February, and you Hub discussed. look told those we prices, that thermal And as you

probably a But have what premium, lot due XXXX year. increase. to we about probably the the move past think And and year. we continues mostly So like. as more a little that's we the looks seen certainty on volatility in collapse into to to balance, continues to forward risk storage we think start we've And that

So on statement. agreement, we're balanced, in I your think probably with

John Tumazos

So is quarter use hedge at the this a a good enough power price [indiscernible]? to of you maybe

Jesse Gary

go and we bit something premium remarks, summer, think little -- collapse. watch that my these Yes, bit risk of in prices, into to to we forward I mentioned going a to as I exit that's prepared they start definitely of as at a And we're little move hopefully we as and look starts

John Tumazos

one are comes Now is getting possible would only seem selling part certainly And [indiscernible] of that like back as But long built. the Hawesville equation. pretty houses and power are Hawesville it's as low.

Jesse Gary

going like disciplined an Hawesville sure exited make said I volatile to I environmental on past the we've what's earlier, think that XX extremely and for we're months. Yes, here been be

that and that that be that see and we'll mentioned certainly that favorable relatively as trends what if and over LME are Hawesville take levels to work, relatively the energy the we So see we us. at same long constructive can towards profitable run metal have returns to effort and prices And it'll reached restart levels. and energy the remains be return prices we'll the both costs started you for the But normal. as sure

John Tumazos

of you're one the always better earlier be selling about whether So a the imagine way for out I going power like you supplier out and a actually your from company balance energy volatility off better another things; M&A financing credit project would sheet. the to Century M&A? and do with a about your that purchase them. of balance think buying, Or buying you is buy was and entity questions stronger to selling Is renewable the contract sheet thinking

been little a have earnings volatile. Your

shopping for I our imagined hadn't acquisitions? that So you'd be

Jerry Bialek

got we imagine, Holly. term we of the a that as setup, But potential the remaining enable opportunities Century and you very conditions long see we of capacity I'm number this already on John, for current market our might forward. think as We've mentioned the punt term in for restart both also there to Grundartangi are Casthouse. there's long restart Mt. positive go opportunities mostly Yes, we Hawesville. We've at think Hopefully business going question. to

we So about we're business for excited this be and plan good time. a long to here

Operator

Thank no further you, currently [Operator questions John. Instructions] are There registered.

Jesse Gary

thank ahead. the -- Go we well, Okay, ahead. it. for We'll you take sorry. Go time everyone

Operator

apologize. I

of the question Our next line Pipes Riley. Lucas from is B. with

open. is line Your

Lucas Pipes

Thank my I you last minute. up know was follow it. for appreciate question. I that taking

be considered bolt can for things. mean mentioned few it's side M&A the and bolt to and On you on on a smelter hard sometimes example. Would that

Jesse Gary

I before. seen that's type Yes, from the us transactions think of you've

was or entire operating in a And be an footprint we've whether each area added Mt. Grundartangi one casthouse can where at at think have So one Seabury or at could every and casthouse value That's we at billet we some smelter transaction, we so then expertise point the an actually, that of on at and bolt value. Grundartangi another expansion or we add Holly. our smelters. that billet and

transaction in such So to I mean, opportunities that's on if type were that the think of up. come transaction bolt I

Lucas Pipes

Hawesville. appreciate then circling I on that. back And

than a trying better I'm wider greater for the restart margin the facility? facility? like sense just to and you Thank economics a what to a for of noted idling when you are looking you Or Is a clarity looking clarity on were for get to just much they very made And looks decision. error you're margin? really the it little margins? better additional could trigger So a more margin today color. you on bit for decision the restart

Jesse Gary

sure. Yes,

key the period of to sustainability also profitability there I looking it's from levels standpoint. both those But we see work thing is need levels. some at reached really a that think for probably you're

we prices we like conditions energy So ago, obviously, some It months going to sure you make really, quite we something look be you time market U.S. has quite should six keep wasn't client at that to we thought that's are levels confirm those that here for do lower the see here. storage might understand, prices. period energy And here prudent in longer that and significant. of for are confident we'd energy that while the energy saw that when high price been

levels we be So really, decision. those period can make we time confident levels, of a importantly that that those for and before sustain reach both then

Lucas Pipes

And That's return remind a can helpful. be you. Hawesville utilization? costs for restart Thank you of level capacity us would kind near what of full to to reasonable

Jesse Gary

all have And as brought pot in back around, a would a we those on reminder, This We'll to instance, time is, number recently basically that rely you back we but XXXX. on in to start of lines we lines not you've some closer that. making I to give the just Yes. do had Hawesville seen get as what we in when of decision, that that we direct as would guidance up. pots them say

get you guidance decision. than what for making in to we closer saw So it But as time would around give this more be XXXX. cheaper materially that us direct we'll

Lucas Pipes

outlook. and to That's in then helpful. Thank the X you turning Slide

your You noticed that that? looking volume other million which could mix positively? and QX headwind with negative the remainder $XX million of What turn on magnitude $X to out this color year, would to of the appreciate order direction

Jesse Gary

sure. Yes,

this There about already we to stopping to mixed of have again see orders that month month with are has event we that XX over Jerry in our is really a would and a the April. really the customers February ability majority and And both then that earlier. calendar has same in And number started March mentioned, deal expect think March. improve spoke year. I actually have is we up of in

forward them the So we're market April. to looking reentering in

the see think we soon improvement most the to middle see the and back have it's into of probably as one we the year. as improve improve materially could head that's to so or get And but already as that really, half started QX you into going

Lucas Pipes

right. the All appreciate you. luck. best Thank again, Okay. and of I color

Operator

There Thank time. no questions Lucas. additional are this at waiting you,

for remarks. pass any back I'll the the to management over So team conference closing

Peter Trpkovski

your you Thank you And be today. everyone we'll for very to again talking questions soon.

Operator

Company Century concludes hope you Aluminum day. a the quarter XXXX call. participation. That have Thank your I earnings fourth you for wonderful

Peter Trpkovski	VP, Finance & IR
Jesse Gary	President and Chief Executive Officer
Jerry Bialek	Executive Vice President and Chief Financial Officer
Shelly Harrison	Senior Vice President, Finance and Treasurer
David Gagliano	BMO Capital
John Tumazos	Very Independent Research
Lucas Pipes	B. Riley Securities

Century Aluminum (CENX) 23 Feb 232022 Q4 Earnings call transcript