CENX - Earnings call 3 2023 | Century Aluminum Company

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Operator

Good afternoon, and thank you for attending today's Century Aluminum Third Quarter Earnings Call. My name is Jason, and I'll be the moderator for the call today. [Operator Instructions]

I would now like to pass the conference over to your host, Ryan.

Ryan Crawford

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

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

moment a and to the Turning contained to take Slide respect statements please shown statements forward-looking in with non-GAAP review here X, cautionary measures today's to discussion. financial

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

Jesse Gary

for with Ryan, thanks so right discuss, Thanks, was a get joining. lots to to busy quarter everyone I'll and it. It into

Lower drivers and the of LME were EBITDA adjusted X. of QX million. premiums primary $X regional to Turning reduced Slide

While the able below prices, resulted of a results a fall lower significant Mt. falling in in Holly we portion input to with costs power QX higher-than-expected prices were offset our expectations. metal bit

We a provide Holly we the entered January become I'll QX. on we in detail recently additional a for announced, return And into to expect effective to new energy power Holly that contract as contract X. Mt. will Mt. on in bit. some new normal prices

In complex. remains macro general, the environment for aluminum

X, As in the surplus small global you the with market see largely on offsetting a the Chinese rest can Page remains deficits roughly balanced, world. of

Chinese should COVID to million strong from drive has China continues building from alone demand specifically, from solar electric stimulus X.X to Turning solar recover lockdowns. as construction Chinese demand in Recent recovery announcements last with tonnes benefited demand the and vehicle and China economy up further around year. in demand, Chinese

shown due have add third production that Once low in deficit emerged this to on confirmed, schemes. the tonnes recently to reservoir straight capacity of Chinese to again Chinese cuts season smelters also around would in Slide levels hydroelectric X X. have their million curtail Chinese will Yunan Reports of

XX inventories realized updates prices these recover the of With or be curtailments. saw low disruptions days. any recovery we the historically $X,XXX to QX, positive demand to remained fell LME should while following average further in side at as announcement supply poised global on quickly LME Overall, Yunan below of seasonal inventory any levels,

of wait renewed efficiency across to macro and we company discuss in While during on minute. focus for cycle robust of we where working will improve, example implemented the strategies. management cash, without us possible. up interrupting our costs, investments lower These is have long-term One remain the Gerry increase this that the portion free this programs a with to you will cycle help the capital efforts and

have Hub Slide while Pool prices have less high Turning continued constructive, averages, and the last see X. Nord in from in helped Europe and to winter fall the coke metal to prices decline remained X-year and energy We of U.S. to the that remained towards normalized both offset above a repeat likely. levels. Natural making gas well inventories prices. also can Indiana prices both have caustic input falling

and a extensive the with beneficial to we that made last structure mutually Mt. We a initiatives the operations. XXXX. longer-term represents our teams we X-year reached Holly, on between of arrangement. progress new very work late Cooper Santee month to during quarter. Turning power significant announce to excited agreement number The through contract a were Century At Santee

including Iceland, the to below to contribute has right approximately energy fixed Holly a agreement energy increase when the realized is be continuing under smelter rate of the conditions also plant, to employees project low-carbon to completion to full us in nearing changing to continue allows economic and excellent continue to new warrant. In jobs the decide exposed the remains the should production arrangement, performance this return Mt. market first is natural built track XXXX that Mt. the rates. Holly to reflect under will the XXXX costs, XXX less contract, our sales the operational on provided our agreement surrounding community. we amount European strong, of This all-in fuel The early of team the success is for year. deliver there. invest Under and our excellent Grundartangi billet have customers casthouse to we to to preserve next

this the of details production additional with QX you provide of our on value-added expected will We benefits call.

the set the in the of recommissioning Project our be the CapEx with This efficiency the while high-efficiency of been completion, by improved first end plant's refinery's project of steam Jamaica, major the completed also boiler generation In in QX. boilers powerhouse. stability to plants' nearing one will of systems Restore driving program the has increase

are begin our coming of end high-efficiency A is expected spending in in low in recommissioned late should the Jamalco's Jamalco lowering in second programs of these QX. on expected These of for boiler to cost be Today, March. the cost beginning XXXX. CapEx projects production

September, caused In for September to suffered generation in all disruption partial production at portion operate the the same responsible for equipment refinery an power and the in a from disruption levels failure power a October. Jamalco of unit of resulting QX. This

these aluminum returned at have now the in spot stable We would at believe prices. and the breakeven Jamalco full operated Without refinery disruptions, to roughly quarter third has operations.

our policies. these proceeds more magnitude to of with in our we the will the to submitted practice, losses remarks. this of outage adjust will insurance results. disruptions, and out our and past those his impact we future recover Gerry these have insurers In the claims of Gerry? the our line under cover insurance both from expect Given recovery

Gerald Bialek

Thank you, Jesse.

the were I'll tonnes, and the X% Consolidated XXX,XXX through Realized sales third quarter. shipments $XXX walk global million, with X, metal down were Slide to sequentially. QX the about quarter, turn sequentially. down results you for X% X% Let's down nearly for at net prices

the losses The of add-backs were a million with of million Looking was quarter. by at deduction offset QX, was per cost compensation. results, a third $XX in equipment for with value million in compared lower loss realizable Jamalco million quarter of decrease unrealized operating $XX forward on $XX $X adjusted prior for inventory. $X.XX share. costs items adjusting These net or or This million major on contracts $X and partially the associated failure net share-based for

which on of XX% credit to cash Liquidity cash, quarter compared attributable million, million prior $XX the decrease share quarter. $XX JV million Century, million, of facilities. EBITDA includes Jamalco million million the $XX of was in our prior Adjusted our $XXX and million available in with Jamaica in consisting $XX to $XXX a restricted $X improved by from

from $XXX XX September on $XX prior debt Net was million, quarter. million down

year cash focused on capital talk to more this beginning working Century, significant moment we've optimizing and liquidity and about see improving first when a During have flow. at my I are I'll progress. in

of These X- in Slide EBITDA realized million and metal delivery X-month prior down to premium was the premium these realized prices. realized the EBITDA U.S. resulted to third lags Midwest versus European factors in Together, of quarter. reflecting Turning was $XX ton per in $X,XXX sequential decrease $XXX ton $XX. quarter quarter. our $XX $XXX in Realized to per X up adjusted down was while bridge. per the explain $XXX LME ton, a

offset XX% a down $X QX Power being in netting cost EBITDA. Indy $X ton, sequential increase prior reduction at rates exposure market benefit to Mt. MISO by and realized of $XXX higher lower service costs Holly, quarter, a Pool that on were million partially Hub in with X% slightly per to cost alumina from prices Nord a was basis.

improvement and million Remember, for XX% million Overall, third EBITDA material was was Realized and EBITDA. pitch $X a in realized million. Unfavorable costs EBITDA X- alumina million for $X through X%. OpEx coke statement. decreased improved prices our sales headwind. quarter. by $X decreased in there's resulted to income a together, Volume mix alumina raw the X-month a lag $X work cost adjusted to prices other

his Note less Jesse covered the be at as and losses, an that the remarks, and been estimated insurance downtime under that has policies. from here its of deductibles, adjusted in results output production claim presented opening has Jamalco will Century expect insurance filed lost impact mentioned

XX. to appendix see can GAAP the in the full on You reconciliation Slide

a X quarter cash $XX look flow. to started Slide turn We in let's million Now at with cash. for the

sell million. During $XX land the our used cash the of Iceland, construction to generating Mt. the site, transaction Holly in for completed certain million. $XX primarily of quarter, casthouse excess our CapEx, new we at

working million. In over our $XX efforts, an we you System, target. not of line the case cap in aimed EU's time capital climate part decreasing optimization excess As monetize emissions with additional at generate to the European a with ETS familiar and allowances Emissions system are Trading emissions trade the is Union European

they become surrendered smelter. offset have emission our must Each EUAs or emissions we year, the allowances Iceland. Century allowances the in units in Grundartangi These held these until smelter free Historically, be year to following receives from due. for

ongoing excess year, an to repurchase to when EUA monetization the and units settle an due. price EUA obligation implemented program fixed liquidity, of As at this EUAs source to the sell a future we

Similar also I'm cash optimization capital our driving of to excited the efforts, to in interim conversion effectively, Century leverage. credits across cycle allows other value about this we're utilize lowering the working the liquidity progress program improving making, sites. and optimization all more the

coming totaling from at savings smelters. and $X vendor the Jamalco with During actions more our payment working million terms balance at realized our quarter, we moving million, from $XX to various the capital refinery favorable

these forward inventory working targets other We $XX going expect capital million retain optimizations. aggressive and $XX to of working million to capital through benefits

were savings we to related of these which expect the of timing flows, reverse remainder to The QX. in material

improvement QX pay $XX $XX used actions million revolvers. quarter. These down in cash compared million and ending we Finally, resulted $XX the to second million, our of a restricted to cash

XX quarter. expectations Slide our to for insight into fourth for move let's Now the

$XX realized QX compared $XXX expected about For quarter. per European premium of $XXX be to premium QX, be And the QX ton, forecast prices. $XX. $X,XXX down per to down be ton third is is $XX or Midwest delivery is down U.S. the lagged The to lagged the with per expected ton LME versus

prices million delivery expected QX premiums EBITDA together, QX approximately realized decrease higher about $XXX to the $XX than LME yesterday our are expected to LME levels. Taken and prices million $XX Note, compared with QX. closed for by

spot sensitivities XX, this these should can see change million around alone would you $XX our As per to $XX increase by we from to Slide expect hold, quarter. levels EBITDA million on

alumina be $XXX per ton, Looking materials, raw expected realized to is slightly. lagged down our at cost key other

All as we expect for it most million compared to $XX down costs soda between X with benefit But QX be X will We to impact from pitch. spot this takes to were expect in material raw through quarter. $XX flow months contribute our a million lower to P&L, also prices in, of third caustic coke realized lower favorable to Caustic XXXX. EBITDA slightly. and prices

range a improvements our quarter. All EBITDA add between for fourth million EBITDA the million. gains expected to and to be considered, We expect in about adjusted operating factors in outlook volume of cost to million $X QX $X $XX and is

gain to fourth And in expect about activity finally, million a of $X and tax we expense between realized million. $XX the hedging from quarter $X of

adjusted of income. fall both EBITDA reminder, net below these a As and items impact

An for update on the purchase our acquisition. accounting Jamalco

in assets and quarter acquired current through discussed XX-Q, the accounting, which of of liabilities value to date. at the to purchase Note fair the as As work X recorded acquisition we requires our continue be

We value. sheet to fair the the months as on a date have necessary September fair balance from finalize preliminary to acquisition the on perform XX. as up estimates, liability a deferred our XX And we've the gain recorded based value of work current to

over back to now And Jesse. you,

Jesse Gary

Thanks, Gerry.

on third find quarter, portion possible. the LME with lows cycle and the of we premiums reaching X.X-year ourselves efficiently focused delivery we a in the challenging business as remain as in commodity operating While

made We completion of the Jamalco the of our Grundartangi extension Holly our at during long-term on progress Mt. investment year. we are first and casthouse next contract, the power early quarter, major initiatives the including completion proud nearing the of of capital

unlock to macro our a in and positive long-term portion balance additional well completion us pleased program, of and environment, to cash. sale business also All are to We significant positioned optimization our Mt. of continued sheet, Holly and working are optimization despite this during EBITDA liquidity all, progressing provide with the continue with the continue liquidity of we capital the the land investments cycle. challenging managing including leaving

to macro stronger grow government beginning and Reduction Inflation towards Long-term Act to funds stimulus be out and and are play are trends decarbonization distributed. in beginning funds electrification the in as China U.S.

improves. are commodity as today. plants us levels, Operator? at benefit to cycle and questions forward well plant look well to Our production running the your positioned We leaving

Operator

Our Instructions] Lucas Pipes from question with [Operator Riley Securities. B. first is

Lucas Pipes

primary -- it benefits mentioned in final the your also remarks, you for the IRA there In aluminum are But mentioned provisions comments your you for prepared I correctly, if the then specifically there production. demand. in I and IR think understand

to a on relates pretty Section material. this and of cost. I surface, XXX, credit production obviously, XX% think And it's it appears of the the

that if speak you maybe could currently that stands. to wondered I and where So

Jesse Gary

good thanks. question. Very Lucas,

is listed up, of the things, is correct critical you're provision under here to Act. just mineral other U.S. domestically. Maybe that to back amongst a critical Inflation So minerals XXX aluminum of Section as that, incentivize is XXX intended Reduction a Section production

We're quantify what guidance we to to Section might Century. Treasury and obviously issue before that a of that point the Department the expect bit for benefits might very this potential come given issued excited receive about said Department it's guidance the difficult out be the U.S. XXX, that But the the has end benefits potential for but year. that publicly yet they has provision, at not Treasury the under

be plan we and more guidance so we might for we to a So guidance Century. is call And quantify a to been further what it's to discuss hold follow-up released, provide that much benefits what now. do intend to hard too until those have to once information has

Lucas Pipes

at 'XX. but guess, I potentially, Jan would started accrual, haven't this -- given think X, there at -- been would point, And be credit essentially, I it this any, that an

benefit be for right? would there said a year, You this

Jesse Gary

apply and it did that. guidance, we January Yes. itself XXXX. await X, passed. it's But effective XXXX. really the have has the the -- Obviously, to until law guidance, that become you're But become -- tough mention the law January we that effective. on that than version say provision X, did The correct more does would But beginning while the

Lucas Pipes

that. appreciate you're for? the elaborate specifically, can guidance, waiting but of can you're this could for? maybe you what And comment be or terms really I Yes. guidance exactly in needed, And clarification know waiting on you Really, what on technical,

Jesse Gary

is what that I'll it tax applies summary done. It's Sure. that should cost production guidance. your of calls guidance. critical relatively for really on do the since the of in the And keep any as does But will does to guidance provide said, minerals. credit law cost how to production calculated. to high was comment law hard a be have -- level for we Section be the tax production. to What what production XXX that try not provide well credit until

imagine of that you not can in be included may provisions production. included So a bunch or different of cost

cost of be depreciation might is For instance, X included whether example in production.

it on advisers, our Department, statements was guidance record with it our the early team, further we after financial from to the benefits with might without So again, Treasury to too any thought talking anything outside discussing our quantum of guidance do, advisers, those what internally be. on and difficult without

year, the that's Department And we which, where intend expect once that a we that detail. the out, what they of follow-up before more to comes for So do now, do discuss to guidance stand. end can again, hold Treasury where the we'll is, we says in call

Lucas Pipes

appreciate I been and that billet look XXXX, to for discussion. have really I they of maybe in a XXXX? to premium products but theme. you I comment move you And those the this color. value-add started? negotiations questions, really kind in appreciate I do on the now for And different terms I'll further expect completed? premium have current of would billet what could on environment that Have when

Jesse Gary

Sure, Lucas. Thanks.

question. good Another

that started it market season past we think, which, than next early Grundartangi So online and, general a come year U.S. as both and probably begin has The of just started sales. casthouse the producing a reflects we XXXX really the year. later of discussed, bit see. I this in new discuss years, our has will maybe billet bit to also for course, dynamic We've

in of really definitely As in hard far macro our drivers predict QX premiums you we'll rest very reaching include to call been sort those might XXXX our we when those discussions, both of mentioned, and premiums have LME we that lows. resulted delivery until a bunch guidance. XXXX what X.X-year it's give be. on But the of have course, regional But of obviously there I get

for premiums would would I U.S., definitely, the have expect, those we And set. definitely

quarterly Europe, that market for more forward Going market. is the

basis So can on from the reflect you'll it more and U.S. market. of to is an Philippines quarter-to-quarter, quarterly see change us a annual because more Europe start whereas

Lucas Pipes

That's helpful. I running quickly If utilization. Have Mt. of Holly come it. Good Holly. contract run on recall discussions been that this plant can at XX% to power through. Really cost XXX%? correctly, the is Mt. service Got that about Holly see there allocation Mt. to increasing so at

Jesse Gary

this Yes. call XX% at additional negotiated the And do restart have contract actually, is to the we the right as pots. that's something part order of necessary that power would Mt. the remaining Holly that in be to we

that market power. option with restart would the a we monitor to -- period notice conditions, a we on that that have work as call So within

roadblock So pots power securing the to in restarting won't Mt. be Holly. those a

Lucas Pipes

And same the there service sorts? rate? power, cost be a would Or of different of the at would it tariff be

Jesse Gary

Yes. is actually those But a that the Mt. is power take rest of we option tariff power was there that contract linked Cooper package. contract. on The will rates option linked the to was the contract, under from few in the Santee Holly schedules of in different to -- that's one

Lucas Pipes

All color right. of appreciate team I best really all you to the luck. and and the

Jesse Gary

Thanks, Lucas.

Operator

with is Timna question Wolfe next Our Research. Tanners from

Timna Tanners

me hear hope everyone I can okay.

Jesse Gary

great, sound Timna. Thanks. You

Timna Tanners

Okay. Super.

Just had All check. right. to

a would I hone I questions situation I in thought Jamalco. the So on in of had couple

I to bit might release have file far incident. interesting, -- for more wanted about missed know the to about little As material announcement didn't as or an it And but press insurance the I there a was enough recovery, I it.

Do has addressed recur? feel You sufficiently so like won't that said it was the that, you've this second the you situation time happened.

Jesse Gary

Yes.

it feel we So confident can control. Maybe I more and we've great why that detail little got now just question. under a provide

refinery, also steam-powered plant to regulate the generation pressure going that electrical have -- into you'll So the within the general, generation in and units steam some supply steam energy refinery. our

this May-June our one addressed, it time in units suffered steam And but recurred the failure thought period. a had we we in time late period. back case, generation it of September the then And originally in

And have normal who now helped machine we engineers manufacturer dug a that us it We've went little status. through back brought the and from in operating with us its bring further. to

So we as is from that, the issue feel steps, manufacturer confident engineers us. with well, given again, now the behind that those

Timna Tanners

deductible also think timing when record from so to recovery And company? you might Okay. what do the a might you and like like? be your insurance then And able what look

Jesse Gary

Sure. on small a the relatively portion of although deductible, give -- the guidance claim. overall We it's just small won't specific

So a one standpoint that should claim, not just we be material the losses we've matching it. from that cash incurred. to made But

we really So about need payment. engage for the to insurer timing with talk to

XXXX in You for might being outage in some year a resulted That our we get claim think, Sebree took I lost. power an about stopped the had door. to some recovery, look plant, back when the to to deliveries that the cash actually production

some as at may you say So it what here, guidance this point. that although give might it's to hard be

Timna Tanners

sustained those $XX intended of comments. Okay. I a to That's be just I or want by today's just I And that and I was back I that just I my the additional that I to the if if would quarter. guidance through think an helpful. what I to price say was rest have the comments assume -- the to to EBITDA mean, paid EBITDA. understood that those LME then clarify Is you're there through million to notes, levels, go recent mention, to know at price was $XX were going wanted the there But was correctly. it make million sure of say extra that

Jesse Gary

Yes.

were. prices that almost just are higher LME Basically, You saying our what about than correct, QX realized we're got it $XXX exactly prices Timna. cash today

you back should $XX our so on sustain if if go to of that sensitivities it EBITDA million sort impact see quarterly were going to deck, going a have about million forward, our you'll And in to $XX forward.

the green hopeful in globally. and have on started the side what of to supply see So we're we demand both other words, is shoots some

in to the that are things the renewable talked demand EV of of strong of really China, extrapolate the Some China, both we've rest in should seen I things strong demand world. about, which

rebounds. situation As the macro picks,

And we've in outage also additional supply China. the side, seen, then on

So start LME a that lot improve. drove what of those are prices to

we're of business that do, if And a hopeful there's so as previous power obviously, trends this earnings they lot quarters. we've in those shown in continue. And

Timna Tanners

if And could. then I wrapping up, Okay. just

on On you material through fully guidance, flow has and with price a the coke alumina But if you? in then the pitch? know raw lot breakeven do is to your at And remind further what could, just Jamalco, looking I side, numbers. for see us, caustic downside yet you

Jesse Gary

Sure.

So of pitch stuck years for given what of saw and the it's ever on materially hard coke we course your to are previous we've really coke than set what because that years, past X it's with are and the the pitch yes, couple almost now, been in -- any side, period. expectations just higher prices

they've come well mean, are where above they're still from but I where So as almost prices coke height down their down, are. XX% was, levels historical

see a energy obviously, oil we down them to and of will reason towards have frankly. and shouldn't. back lot with to level. markets really continue normalized markets, the coming So markets a There's they why no steel do this But globally

to we'd than expect faster coming we just the So wish continue would quarters, happen it although past. over that

caustic to that substantially, our and come that last stand-on have Caustic, haven't started to off more takes flow trends recently. X really really because prices it really as come see we we months, happened said, results benefit of through. about longer The through the

see start significantly in we'll more that So starting to QX.

breakevens it for in the prepared any of did at Jamalco in the And the side, disruption then refinery that what my for had But remarks not the quarter, absent on the would been we're power cash giving assets. about on quarter. we have I breakeven -- the say was,

So that you give sense. could some

to on just ongoing of maybe CapEx we've for programs then got Jamalco. lot there. add Obviously, And a Timna. Thanks,

but course that's expect to the to continue we where today. of would So stand we that over improve XXXX,

Operator

Our with Research. Very Tumazos is next John Tumazos Independent from question John

John Tumazos

as European the weaker Nord some prices shed light increase to opposed electricity Pool in Could you due more slowing power price? economy it the big or supply? demand on any to European dip Is in

Jesse Gary

Yes.

the Thanks. in is So probably common prices. when obviously, you're Europe, power If gas to at -- very European question, factor prices, And TTF. looking referencing John. easiest natural look good at that's

at if winter. history the from obviously And historically definitely had crisis the late in really has take energy last that. improved a look had it over TTF very, high levels, multiples of been hit time, that situation So early over you they where fall, very

European So natural storage today. relatively LNG is gas And capacity near strong. is availability

come And so TTF in you've down seen saw from record that it States, the where last above United And said, than significantly year. the it's where say, XXx. multiples Henry stood historically. we here Hub back still That more levels obviously, multiples above, is

at look XXx you that multiple, when is Hub where but above isn't from it's maybe So standpoint, today. it the right Henry multiples

European gotten when it thankfully it standpoint, better. you well, stay to that high, energy are that dynamic look remains. So going prices while at from And

that are you where And I think seen there subdued then in industrial relatively we've challenges. see economy. still can demand, European

John Tumazos

decline output tonnes in In and Europe? less China, in ex X.X almost Or million out of it world? broadly of million that your demand more demand than demand-supply spread U.S., balance, developing Europe demand tonnes excess X you China mostly in is had is

Jesse Gary

Yes.

return to. levels it most John, although has which, really, right, challenged at could that not of period. it definitely the we you honest, would in see it's the think U.S., like be and most would to over to Much globally, been I all I obviously better in think got it that Europe, say, we regions about this significantly

gotten several and remain the situation both both see on markets go given because much are over for years. the frankly, short very turn the shorter markets, eager aluminum to side, last over cycle economic the -- we and So ahead frankly

UAW forward. an the interesting should So I of the as Obviously, we certainly end automotive see the in demand sort help going to one here green said, U.S. of some strikes predict. It's shoots.

But obviously, saw UAW strikes those coming. people

rates up. started they're bit pick to demand think we started. in So even should see we here us. of the interest there. certainty now Aerospace demand also a some see been should very strike that But help We tailwind in going is building well. has before down, little as come as a impact nice And to U.S., recovery strong which real construction then the in for

John Tumazos

If X ask apologize. I more, and I could

try credits the studying disgusting. them. Sometimes government I tax a explain ignore or so little maybe again because strategic been I these is as to Washington you Could hadn't more

when an magnitude. Century With Just $X accrued year on a to would range be or the us million or more? benefit $XXX they're of million or basis full million closer codified, order to or give $XX it

Jesse Gary

Thanks, Yes. John.

those it's production said before, very you can until these production be out, I that production. it credit back what we cost But the come to tax -- included critical cost see a lays quantify of to of of As itself have what exactly credit of regulations difficult is out to in and law will go minerals. tax equal XX%

we're that. what a take until regulations, to can we going you So could the have But look not at estimate that credit be.

John Tumazos

in your your U.S. don't mean words So sorry. I'm mouth, to that could pound Jesse, output? be XX%, could a put for I be $X.XX

Jesse Gary

John. Thanks, problem. No

Operator

next question from is BMO. with Jancic Our Katja

Katja Jancic

Can preliminary next how any with Jamalco. views Maybe about we starting CapEx provide year? for on you think should

Jesse Gary

guidance Well, in until to we'll wait line normal QX Katja, think call. cadence, our XXXX I with give any our

with we'll back yes, that to February. So in come you

Katja Jancic

you can what say CapEx And maintenance just would -- be? typically be would Okay. the what

Jesse Gary

Sorry, that? you could repeat

Katja Jancic

Sorry.

maybe typical what maintenance? the Jamalco could maintenance If the would you for be, provide CapEx

Jesse Gary

high-efficiency on Again, $XX Yes. go million to refinery expected, those QX of ahead second the of be that did to million year. mentioned. range. That of includes CapEx low the said boiler I range prepared we coming for investment and down that both in be end time half talk we'll and I the give some we our to call. for rest about the XXXX in the CapEx last numbers What the on expect we $XX remarks, maintenance that the restoration basically, was the my CapEx, What including

general although So until gives if again some a you're provisions that call. guide QX that way looking to just for XXXX you for sense,

Katja Jancic

on European monetize? can how Or this Okay. that? Is about we should maybe credits. the you think credits further I And missed there

Gerald Bialek

Hi, Katja. the agreement monetized that XXXX. before with for What the repurchase us due allocated had to that we did them been have we they're is to free, we excess credits in

available us are what or monetized So to that we've hurts.

Jesse Gary

think think working to way our I that capital forward relate to going of best is overall sort it optimization to programs. But the about

-- granted do basis we So part as we ETS have the credits to scheme. of will regulatory on those an annual continue

what our to EUA so liquidity. additional over capital, of And intention credits, to as would continuously the be working source optimize continue namely an time that

Katja Jancic

decide just it would were if be? X do you how CapEx capacity, full -- more, may. take did operations the to And would required On Okay. increase if And you if what to long I Holly, Mt. maybe you that? to

Gerald Bialek

Thanks, Katja, that's a very good question.

ago a we the timing, and XX spots. years do In of restart couple additional to of line through that just terms of continuously the went to took that. from somewhere a now, those XX% months an XX of And obviously, operating

sense if years. that couple that So a were Holly the the will From we frame, as Mt. the cost predict -- based given we're you to past environment work restart bit hard over undertaking give side, in at to cost a well. the we it's pots past on of the experience, time that remaining now. ourselves found but Obviously,

or some through would actually should work, So that give working what be. QX. better we to And the a figures in in be better cost QX undertaking think you we're I position

Operator

Our with next Securities. question from B. Pipes is Lucas Riley

Lucas Pipes

credit. a of taking more. education credit, this for continuing it's all credits tax goals right? X questions. a it's I is get not my of U.S. income to And you evening federal deduction So U.S. a appreciate law. I One really on tax, these have is It

amount operating the of is this your cash is, whatever a correct? costs, reduction So

Jesse Gary

a you a I wasn't I used to be lawyer. tax know lawyer. think I Lucas, Well,

all preliminary, That and have And that, sure. and guidance, this any you have So again, law. I plenty for we of might read is that can't around I directly. continuing say said, disclaimers credits we can't very the until give imagine

But credit a the U.S. or After and credits that would elect taxable that's don't that that -- tax out, if phased provide via for X U.S. to be you're income provision, during the have years, U.S. enough taxpayer, direct not tradable. become tax you the pay first period. a otherwise the cash what otherwise you're X is that be years credit, the credit first direct it does law a cash would to so going have credit, realized, pay, a or

Lucas Pipes

those Very I'll helpful. continuing helpful. Very really credits that. for appreciate education. take I

Jesse Gary

Lucas. Thanks, right. All

Operator

from Our Tanners. next is Timna question

Timna Tanners

of team on to October. my about Two most quick the closed, from sounds that we weren't impact being Jamalco confused. was it follow-ups. think of were clear XXX% and Actually, I One like, kind how

was equipment going of amount just but be assuming calculations. failure, into going fourth then our EBITDA, quarter? the to part So it September for increased million And your if adjusted in is not an own be $XX.X to that's

Jesse Gary

Good guide Timna. the impact for question. in what be. It expect Thanks, QX we to is

included it's guide. that So in

Timna Tanners

equipment third quarter guidance. Wait, the but from you failure excluded Jamalco EBITDA

for the didn't think So you we quarter. it fourth include would that

Jesse Gary

results, is the Yes, sort as we of it is -- correct. But out. run it through but calculated those excluded. That's impact adjusted

we even it's will But As at you we be. that haven't have closed any before do bit we a so well what difficult of deductibles, books kind the yet for through October say might that. imagine, point, frankly, that, will to expect exactly fully that in

makes that test is So sense? out. all it dollars, that of decided to should recoverable Does we be why which

Timna Tanners

it the But Okay. include fourth not Is to aren't but you for saying? going what quarter, that it? exclude you'll you're and --

Jesse Gary

dollar What is, insurance we'll already been guess well what no, saying -- included should it I'm that. Sorry, under I out. dollar, before for have the it deductibles be no, policies, adjust

Timna Tanners

quarter you fourth that clear given But quarter, you the similar, if in expect longer Just third what to out a know? know that larger you I'm October. for smaller? sorry saying? time Okay. at relative period Or of would the dynamics I'm not do on not it's --

Jesse Gary

I understand.

It's question bit a understand there's your sort understand few the things previous running on some -- hard I different compare outage hard it's impact so to there. Sorry, And back the of to number I had from bit QX your a because going the through it. June to sorry, it I'm a period relate question. now.

I just out be So total again, think the be. turned fully what it But the to We'll exact policy. it's the probably easier QX to you give covered wait until insurance under should call. it

So...

Timna Tanners

Got it.

thing, Okay. One last if I could.

is the Ravenswood likely out doesn't make to more becoming total I So there? moving to longer return? makes wonder less Holly ask the So discussion Ravenswood Mt. to any restart? is capacity difficult updated that thoughts about wanted And just it if that also me

Jesse Gary

in in covered Virginia, Century showing and permanently you're which it Ravenswood, XXXX. yes, back you because referencing -- long Timna, was curtailed West how you're was

Timna Tanners

Sorry.

sorry, Yes, I'm Hawesville. it's You know not I Ravenswood. sorry, Hawesville, I'm meant

Jesse Gary

But I know mean. I know you mean. Yes, you what what know. I

at take much Mt. all. a like an curtailed Obviously, it's no real no, Holly smelter on to easier is operating to comment at Hawesville. So action restart it Hawesville smelter than like

so really at option we be production, of first a us add prospects to options but Mt. about on the at the you'll look And see is future when consistent talk Hawesville pretty not going it's comment think forward, I Holly will all. it that

Operator

the questions, over more for team pass no management are to remarks. so call closing the There I'll back

Jesse Gary

We appreciate February you forward talking we the look call. to and really Thanks. for everyone. Thanks, questions, our to QX in

Operator

conference participation. the call. Thank for That your concludes you

may now You your lines. disconnect

Century Aluminum (CENX) 8 Nov 232023 Q3 Earnings call transcript