Group 1 - Veta Resources Inc. is undergoing a reverse takeover by Metaworld Corporation, resulting in a name change to "Syntheia Corp." [1] - The company is consolidating its common shares at a ratio of 2.017753 pre-consolidation shares for one post-consolidation share, reducing the outstanding shares from 22,590,750 to 11,195,987 [1] - The consolidation was approved by shareholders during the annual and special meeting held on August 1, 2024 [1] Group 2 - Letters of transmittal regarding the name change and consolidation will be sent to registered shareholders [2] - Shareholders must send their pre-consolidation share certificates along with a properly executed letter of transmittal to TSX Trust Company [2] - Shareholders holding shares through intermediaries should contact their brokers or banks for assistance with the consolidation [2]

Core Insights - Alcoa is divesting its 25.1% stake in the Saudi Arabia Mining Company (Ma'aden) to enhance long-term competitiveness [1] - The transaction will yield $1.1 billion in Ma'aden stock and cash, including approximately 86 million shares valued at about $950 million [1] - Alcoa shares experienced a rise of about 7% in morning trading and have increased approximately 20% over the past year [1] Group 1 - The joint venture with Ma'aden was established in 2009, creating the world's largest, lowest-cost fully integrated aluminum facility [1] - Alcoa's CEO stated that the divestment simplifies the company's portfolio and enhances visibility in the value of its investment in Saudi Arabia [1] - The deal is anticipated to close in the first half of the next year [1]

Alcoa Corporation (NYSE:AA) Morgan Stanley's 12th Annual Laguna Conference September 12, 2024 10:00 AM ET Company Participants Molly Beerman - Executive Vice President and Chief Financial Officer Conference Call Participants Carlos De Alba - Morgan Stanley Carlos De Alba Good morning everyone. Thank you for joining the conference. And Molly Beerman, Executive Vice President and CFO of Alcoa. Very happy to have you here with us and do this again. And so look, maybe for those folks that might not be as famili ...

Alcoa Corporation (NYSE:AA) Jefferies Global Industrial Conference Call September 5, 2024 1:20 PM ET Company Participants Molly Beerman - Executive Vice President and Chief Financial Officer Conference Call Participants Christopher LaFemina - Jefferies Christopher LaFemina All right. Thank you all for attending this session. It's my pleasure to host Molly Beerman, who is the CFO at Alcoa and it's going to be a fireside chat format between me and Molly, but we're going to give you an opportunity to ask some ...

1 | --- | --- | --- | --- | --- | |-------|-----------------------|-------|-------|-------------------------| | | | | | | | | Investor Presentation | | | | | | September 2024 | | | | | | | | | OUR VALUES | | | | | | Act with Integrity | | | | | | Operate with Excellence | | | | | | Care for People | | | | | | Lead with Courage | Cautionary Statement regarding Forward-Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking ...

PART I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Alcoa reported a net income of $20 million in Q2 2024, a significant turnaround from a prior-year loss, with improved cash flow from operations [Note C: Acquisitions and Divestitures](index=12&type=section&id=C.%20Acquisitions%20and%20Divestitures) Alcoa completed the $2.8 billion acquisition of Alumina Limited, simplifying its structure and assuming $385 million in debt, while managing prior divestiture commitments - Alcoa completed the acquisition of Alumina Limited on August 1, 2024, to gain full ownership of the AWAC joint venture, simplifying its corporate structure and enhancing operational flexibility[24](index=24&type=chunk) - The acquisition involved exchanging Alcoa stock/CDIs for Alumina Shares, with an aggregate purchase consideration of approximately **$2.8 billion**. Alcoa also assumed **~$385 million** of Alumina Limited's debt[26](index=26&type=chunk)[27](index=27&type=chunk) - The company recorded charges of **$4 million** in Q2 2024 and **$15 million** in H1 2024 related to site separation commitments from the 2021 Warrick Rolling Mill divestiture, with a remaining balance of **$14 million** expected to be spent in 2024[30](index=30&type=chunk)[31](index=31&type=chunk) [Note D: Restructuring and Other Charges, Net](index=12&type=section&id=D.%20Restructuring%20and%20Other%20Charges%2C%20Net) Alcoa recorded $220 million in H1 2024 restructuring charges, primarily from the Kwinana refinery curtailment, with additional costs from closed smelter contracts Restructuring and Other Charges, Net (in millions) | Period | Alumina Segment | Aluminum Segment | Corporate | Total | | :--- | :--- | :--- | :--- | :--- | | Q2 2024 | $8 | $0 | $10 | $18 | | H1 2024 | $205 | $0 | $15 | $220 | | Q2 2023 | $1 | $19 | $4 | $24 | | H1 2023 | $2 | $165 | $6 | $173 | - The full curtailment of the Kwinana refinery was completed in June 2024. Charges for the first half of 2024 totaled **$205 million**, covering water management, severance for **~580 employees**, asset retirement, and other costs. Cash outlays of **~$225 million** are expected through 2025[33](index=33&type=chunk) [Note K: Debt](index=24&type=section&id=K.%20Debt) Alcoa issued a $750 million green bond in March 2024, maintained undrawn credit facilities, and assumed $385 million of Alumina Limited's debt post-acquisition - In March 2024, a subsidiary issued **$750 million** of 7.125% Senior Notes due 2031, designated as a green bond, with net proceeds of **$737 million** to finance qualifying environmental projects and support cash needs[61](index=61&type=chunk) - The company's main **$1.25 billion** Revolving Credit Facility and its **$250 million** Japanese Yen Revolving Credit Facility had no outstanding borrowings as of June 30, 2024[66](index=66&type=chunk)[68](index=68&type=chunk) - Upon acquiring Alumina Limited on August 1, 2024, Alcoa assumed approximately **$385 million** of its outstanding debt under a **$500 million** revolving credit facility. Lenders have indicated they will delay any repayment demand until at least December 1, 2024[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Note N: Income Taxes](index=35&type=section&id=N.%20Income%20Taxes) Alcoa's 2024 effective tax rate is 105.1% due to valuation allowances on losses, offset by $20 million in tax credits and an expected $100 million deferred tax asset from the Alumina Limited acquisition - The estimated annualized effective tax rate for 2024 is **105.1%**, deviating from the **21%** U.S. statutory rate primarily due to losses in jurisdictions with full valuation allowances, resulting in no tax benefit[91](index=91&type=chunk)[92](index=92&type=chunk) - The company recorded benefits of **$10 million** in Q2 and **$20 million** in H1 2024 under the Inflation Reduction Act's Advanced Manufacturing Tax Credit for its Massena West and Warrick smelters[93](index=93&type=chunk) - Post-acquisition of Alumina Limited, Alcoa will recognize a deferred tax asset of approximately **$100 million** related to Alumina Limited's Australian net operating loss carryforwards[92](index=92&type=chunk) [Note O: Contingencies](index=36&type=section&id=O.%20Contingencies) Alcoa faces $252 million in environmental remediation reserves, a significant tax dispute with the ATO for $143 million in tax and $474 million in interest, and ongoing 'Red Dust' legal proceedings - The environmental remediation reserve was **$252 million** at June 30, 2024, with significant sites including Suriname, Massena (NY), and Point Comfort (TX)[95](index=95&type=chunk)[98](index=98&type=chunk) - AofA is in a dispute with the Australian Taxation Office (ATO) over assessments claiming **~$143 million** in tax and **~$474 million** in interest. AofA has paid **50%** of the tax amount and believes its position will be sustained. The case hearing was completed in June 2024, awaiting a decision[109](index=109&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) - In the St. Croix 'Red Dust' legal proceedings, trials for the first group of cases are scheduled to begin in November 2024. The company recorded a reserve for its estimate of probable loss in Q2 2024[120](index=120&type=chunk) [Note R: Subsequent Events](index=42&type=section&id=R.%20Subsequent%20Events) Post-quarter, Alcoa completed the Alumina Limited acquisition, declared a $0.10 per share dividend, and settled a $5 million Clean Air Act violation fine for its Intalco smelter - On August 1, 2024, the Company completed the acquisition of Alumina Limited[127](index=127&type=chunk) - On July 31, 2024, the Board declared a quarterly cash dividend of **$0.10 per share** on common and preferred stock, payable on August 29, 2024[128](index=128&type=chunk) - The company agreed to a stipulated settlement with the U.S. Department of Justice to pay a **$5 million** civil fine for alleged Clean Air Act violations at the Intalco smelter[129](index=129&type=chunk) Consolidated Statement of Operations Highlights (unaudited, in millions) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Sales | $2,906 | $2,684 | $5,505 | $5,354 | | Income (Loss) Before Taxes | $92 | $(99) | $(233) | $(279) | | Net Income (Loss) Attributable to Alcoa | $20 | $(102) | $(232) | $(333) | | Diluted EPS | $0.11 | $(0.57) | $(1.29) | $(1.87) | Consolidated Balance Sheet Highlights (unaudited, in millions) | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,396 | $944 | | Total Current Assets | $4,903 | $4,405 | | Total Assets | $14,307 | $14,155 | | Long-term debt, less current portion | $2,469 | $1,732 | | Total Liabilities | $8,891 | $8,310 | | Total Equity | $5,416 | $5,845 | Consolidated Cash Flow Highlights (unaudited, in millions) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Cash Provided From (Used For) Operations | $64 | $(176) | | Cash Provided From Financing Activities | $679 | $16 | | Cash Used For Investing Activities | $(281) | $(222) | | Net Change in Cash | $446 | $(377) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported improved Q2 2024 net income driven by higher prices and lower restructuring, with the Alumina Limited acquisition completed and liquidity enhanced by a green bond issuance [Business Update](index=43&type=section&id=Business%20Update) Alcoa completed the Alumina Limited acquisition, fully curtailed the Kwinana refinery, progressed the Alumar smelter restart, and faces funding exhaustion at the San Ciprián complex - The acquisition of Alumina Limited was completed on August 1, 2024, simplifying governance and enhancing Alcoa's vertical integration[131](index=131&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk) - The full curtailment of the Kwinana refinery was completed in June 2024, based on factors including its age, costs, and bauxite grades[138](index=138&type=chunk) - The San Ciprián complex remains unviable due to high energy costs and is projected to run out of funding by the end of 2024, at which point Alcoa will not provide additional funding[143](index=143&type=chunk)[144](index=144&type=chunk) - In March 2024, Alcoa issued its first green bond, raising **$750 million** to fund decarbonization, water management, and other sustainability-focused projects[146](index=146&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q2 2024 net income of $20 million reflects a $272 million sequential improvement driven by higher prices and lower restructuring, narrowing the year-to-date net loss Selected Financial Metrics | Metric | Q2 2024 | Q1 2024 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Sales | $2,906M | $2,599M | $5,505M | $5,354M | | Net Income (Loss) Attributable to Alcoa | $20M | $(252)M | $(232)M | $(333)M | | Diluted EPS | $0.11 | $(1.41) | $(1.29) | $(1.87) | | Avg. Realized Alumina Price ($/mt) | $399 | $372 | $385 | $367 | | Avg. Realized Aluminum Price ($/mt) | $2,858 | $2,620 | $2,743 | $3,000 | - The sequential improvement from Q1 to Q2 2024 was primarily due to higher aluminum and alumina prices, lower restructuring charges (Q2 charge of **$18 million** vs Q1 charge of **$202 million**), and favorable derivative results[151](index=151&type=chunk)[160](index=160&type=chunk) - The year-over-year improvement for the first six months was mainly due to favorable raw material and energy costs and lower equity losses, which partially offset the negative impact of a lower average realized price for aluminum[152](index=152&type=chunk) [Segment Information](index=51&type=section&id=Segment%20Information) Alumina and Aluminum segments showed significant Q2 2024 Adjusted EBITDA improvements driven by higher prices, with shipment guidance maintained for 2024 Alumina Segment Performance (Q2 2024 vs Q1 2024) | Metric | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Segment Adjusted EBITDA | $186M | $139M | | Avg. Realized Price/mt | $399 | $372 | | Alumina Production (kmt) | 2,539 | 2,670 | | Total Shipments (kmt) | 3,292 | 3,340 | Aluminum Segment Performance (Q2 2024 vs Q1 2024) | Metric | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Segment Adjusted EBITDA | $233M | $50M | | Avg. Realized Price/mt | $2,858 | $2,620 | | Production (kmt) | 543 | 542 | | Total Shipments (kmt) | 677 | 634 | - The Alumina segment's sequential EBITDA increase was driven by higher prices, partially offset by higher production costs from the Kwinana curtailment. Production decreased **5%** due to the curtailment[176](index=176&type=chunk)[178](index=178&type=chunk) - The Aluminum segment's sequential EBITDA increase was primarily due to higher average realized prices. This was partially offset by unfavorable raw material costs from higher alumina input prices[191](index=191&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) Alcoa's liquidity is adequate with improved H1 2024 cash from operations and a $737 million bond issuance, despite recent credit rating downgrades and assumed acquisition debt - Cash provided from operations was **$64 million** in H1 2024, a **$240 million** positive swing from the **$176 million** used in H1 2023, driven by better underlying earnings and lower tax payments[202](index=202&type=chunk) - Financing activities provided **$679 million** in cash in H1 2024, primarily from the **$737 million** net proceeds of the March 2024 senior notes issuance[205](index=205&type=chunk)[208](index=208&type=chunk) - In March 2024, Moody's, Fitch, and S&P all downgraded Alcoa's long-term debt ratings, citing market conditions and operational challenges[219](index=219&type=chunk)[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Alcoa's market risk exposure remains materially unchanged since fiscal year-end 2023, with further details available in the 2023 Form 10-K and Note M - Alcoa's exposure to market risk has not changed materially since December 31, 2023[224](index=224&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Alcoa's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during Q2 2024 - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2024[225](index=225&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2024 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[226](index=226&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Alcoa faces ongoing 'Red Dust' legal proceedings with trials starting November 2024 and settled a $5 million Clean Air Act violation fine for its Intalco smelter - In the St. Croix 'Red Dust' proceedings, trials for the first group of lead cases are scheduled to begin in November 2024 and continue through July 2025, with court-ordered mediation to occur by August 31, 2024[230](index=230&type=chunk) - The company settled a Notice of Violation from the EPA regarding the Intalco smelter, agreeing to pay a civil fine of **$5 million** for alleged Clean Air Act violations[232](index=232&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) New risks from the Alumina Limited acquisition include shareholder dilution, potential stock price pressure, dual listing complexities, increased currency exposure, and assumed liabilities - The issuance of new shares for the Alumina Limited acquisition has diluted existing Alcoa stockholders, who now own a smaller proportion of the company, and may depress the market price of Alcoa's stock[235](index=235&type=chunk)[236](index=236&type=chunk) - The secondary listing of Alcoa's stock as CDIs on the Australian Stock Exchange (ASX) could lead to price variations between the NYSE and ASX due to currency differences and other factors[237](index=237&type=chunk)[238](index=238&type=chunk) - The integration of Alumina Limited subjects Alcoa to all of Alumina's existing and potential liabilities, including those related to its revolving credit facility and potential tax issues[240](index=240&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Alcoa did not repurchase common stock in Q2 2024, with the full $500 million share repurchase authorization remaining available Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased | Weighted Avg. Price Paid | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | April 2024 | 0 | N/A | $500,000,000 | | May 2024 | 0 | N/A | $500,000,000 | | June 2024 | 0 | N/A | $500,000,000 | [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2024 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2024[244](index=244&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including documents related to the Alumina Limited acquisition, new stock, bylaws, and officer certifications - Exhibits filed include documents related to the Alumina Limited acquisition, new preferred stock designation, amended bylaws, and required officer certifications (31.1, 31.2, 32.1, 32.2)[248](index=248&type=chunk)

Group 1 - Alcoa (AA) has experienced an 8.5% decline over the past four weeks, indicating significant selling pressure, but it is now in oversold territory, suggesting a potential trend reversal [1] - Wall Street analysts have strong consensus that Alcoa will report better earnings than previously predicted, with a notable increase in earnings estimates [1][3] - The Relative Strength Index (RSI) for Alcoa is at 29.93, indicating that the heavy selling may be exhausting, which could lead to a price rebound [2][3] Group 2 - There has been a 521.2% increase in the consensus EPS estimate for Alcoa over the last 30 days, driven by a strong agreement among sell-side analysts [3] - Alcoa holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [3]

Quite a few stocks stand out after exceeding Q2 earnings expectations this week with several sporting a Zacks Rank #2 (Buy) following their favorable quarterly reports.Furthermore, here’s a look at two of these buy-rated stocks that investors shouldn’t overlook after beating EPS estimates on Wednesday.Alcoa (AA) Integrated aluminum producer and bauxite miner Alcoa is appealing among the industrial products sector after Q2 EPS of $0.16 comfortably topped estimates of $0.11 per share. More importantly, this c ...

Core Insights - Alcoa Corporation is focused on completing the acquisition of Alumina Limited by the target date of August 1, indicating a strategic move to enhance its operational capabilities [1] - The company has achieved a $350 million run-rate in its profitability improvement program, with $295 million remaining to be achieved over the second half of the year and into 2025 [1][2] - Investors are keen on the potential through-cycle earnings driven by operational improvements, with a focus on the upcoming decision regarding the lossmaking San Ciprian complex [3] Financial Performance - The third-quarter adjusted EBITDA estimate has been revised down from $437 million to $427 million [2] - The profitability program has yielded $350 million in improvements, with $250 million attributed to raw materials savings and $30 million each from productivity initiatives and the Warrick optimization [2] - Approximately 55% of Alcoa's cost-saving initiatives, targeting a $645 million run-rate by 2025, have already been achieved, indicating effective execution of the strategy [2] Market Reaction - Alcoa shares have experienced a decline of 1.98%, trading at $36.08 [3]

Financial Data and Key Metrics Changes - Revenue increased sequentially to $2.9 billion, driven by higher alumina and aluminum prices [9] - Net income attributable to Alcoa was $20 million, a significant improvement from a loss of $252 million in the prior quarter, with earnings per share rising to $0.11 [9] - Adjusted EBITDA increased by $193 million to $325 million, primarily due to higher average realized prices for alumina and aluminum [10] - Free cash flow was positive at $101 million, improving sequentially by $370 million [13] Business Line Data and Key Metrics Changes - In the Alumina segment, third-party revenue increased by 5% due to higher average realized prices, despite lower shipments [9] - In the Aluminum segment, third-party revenue rose by 16% on higher average realized prices and increased shipments [9] - Adjusted EBITDA for the Alumina segment increased by $47 million, while the Aluminum segment saw an increase of $183 million [10] Market Data and Key Metrics Changes - Alumina prices surged in the second quarter due to supply-side disruptions and strong demand from smelters, with a global alumina deficit of approximately 3 million metric tons anticipated for the full year [17][41] - Aluminum prices also increased, supported by limited new smelting projects and strong global demand, particularly in the packaging and electrical sectors [20][22] - Regional premiums for aluminum rose sequentially across North America, Europe, and Asia, driven by sanctions against Russian metal and supply chain disruptions [21] Company Strategy and Development Direction - The company is nearing completion of the Alumina Limited acquisition, expected to close on August 1, which is anticipated to enhance operational and financial flexibility [7][29] - Focus on safety, operational stability, and continuous improvement is emphasized, with production records set at various smelting locations [24] - The company is pursuing profitability improvement programs aimed at capturing approximately $645 million in adjusted EBITDA improvements by the end of 2025 [25] Management Comments on Operating Environment and Future Outlook - Management noted that favorable alumina and aluminum markets have contributed to improved profitability and cash flows [8] - The long-term outlook for both alumina and aluminum markets remains positive, driven by a transition towards low-carbon products [22] - Challenges in the supply chain and energy costs are acknowledged, particularly regarding the San Ciprian facility, with ongoing efforts to find competitive energy solutions [28] Other Important Information - The company is investing in two vessels for bauxite transportation in Brazil, expected to save $14 to $16 per tonne of alumina [12] - The company plans to reduce debt levels and maintain a strong balance sheet while exploring various deleveraging options [14][60] Q&A Session Summary Question: Synergies from the Alumina Limited acquisition - Management expects to realize overhead savings of $12 million immediately post-acquisition, with capital allocation improvements taking longer [32] Question: Impact of bauxite grade in Australia - Unfavorable costs of approximately $10 million are anticipated due to maintenance needs related to lower bauxite quality [36][37] Question: Sustainability of the alumina market dynamics - The alumina market is currently in a deficit, and sustainability will depend on resolving supply issues and potential smelter curtailments [41] Question: Interest in the San Ciprian facility - Six companies have expressed interest in the sale process, which is ongoing [56][68] Question: Deleveraging options - The company is exploring various options for deleveraging, including managing debt placement and evaluating cash flows [60][64]