PALM BEACH, Fla., June 18, 2024 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - The scrap metal markets are projected to continue to grow in the coming years. Scrap metals collected from various sources are raw materials used in metal recycling. Scrap metals are separated and processed several times to yield recycled metals. A report from Precision Reports said that the global Metal Recycling market was valued at US$ 292860 million in 2023 and is anticipated to reach US$ 386740 million by 2030, witness ...

Market Overview - The global vehicle armour materials market was valued at US$6.20 billion in 2023 and is projected to grow at a CAGR of 6.7% during the forecast period 2024-2034 [1] Key Drivers - The focus on weight reduction and mobility is a significant driver for the vehicle armour materials market, with military and law enforcement agencies seeking lightweight armour solutions that enhance fuel efficiency and mobility [2] - Advanced materials such as high-strength alloys, composites, and ceramics are being utilized to achieve weight reduction while maintaining high levels of protection [3] - The application of vehicle armour materials is expanding into civilian markets, with increasing demand in sectors like banking and VIP transportation [8] - Defence modernisation programs initiated by various countries are driving demand for advanced vehicle armour materials, focusing on upgrading military capabilities [9][10] - The expanding global military presence and operations are contributing to market growth, necessitating robust armoured vehicles for personnel safety in hostile environments [10][11] Innovations and Developments - Modern armoured vehicles require protection against a wide range of threats, leading to the development of hybrid armour systems and active protection systems [12][13] - Major players in the market are adopting strategies such as mergers and acquisitions, R&D investments, and new product launches to enhance their competitive position [14] Recent Developments - On March 11, 2024, Alumina Limited and Alcoa signed an agreement for an all-stock transaction [15] - On January 22, 2024, DuPont signed an exclusive agreement to supply body armour made with Kevlar® EXOTM aramid fibre to North American law enforcement departments [15]

VANCOUVER, British Columbia, June 10, 2024 (GLOBE NEWSWIRE) -- Great Quest Fertilizer Ltd. (TSX-V: GQ) (“Great Quest” or the “Company”) announces its intention to change its name to “Great Quest Gold Ltd.” (the “Name Change”). The Company’s ticker symbol will remain “GQ”. The Company will seek shareholder approval for the Name Change at its upcoming annual and general meeting of common shareholders scheduled for July 17, 2024 (the “AGM”). For further details regarding the AGM and/or other matters to be pres ...

The Copper Trade Is Done. Buy These 8 ‘Greenflation’ Stocks Instead. ...

BALTIMORE, May 23, 2024 (GLOBE NEWSWIRE) -- Lawsuits have been filed alleging that a number of large corporate employers have offloaded billions of dollars in pension obligations to Athene Annuity and Life Company and/or Athene Annuity & Life Assurance Company of New York, subsidiaries of Athene Holding Ltd. (collectively, "Athene") in violation of ERISA. In addition to AT&T Inc. (NYSE:T), Lockheed Martin Corporation (NYSE:LMT), and Alcoa Corporation (NYSE:AA), against which lawsuits have already been filed ...

Alcoa Corporation Conference Call Summary Company Overview - Alcoa Corporation is a global pure play upstream aluminum company with operations in 27 locations across six continents, focusing on two business segments: alumina and aluminum [2][3] Key Developments - Alcoa announced a proposed acquisition of Alumina Limited, aiming for 100% ownership of the AWAC joint venture, with an equity value of approximately $2.2 billion and a premium of 13.1% to Alumina Limited's share price [4][5] - The acquisition is expected to enhance Alcoa's vertical integration across the aluminum value chain, providing stability throughout commodity cycles [5][10] Financial Metrics - In 2023, Alcoa reported production of 41 million metric tons of bauxite, 10.9 million metric tons of alumina, and 2.1 million metric tons of aluminum [5] - The transaction will simplify governance and operational flexibility, increasing Alcoa's economic interest in core Tier 1 assets [10][11] Strategic Priorities - Alcoa's strategic priorities include reducing complexity, driving returns for stockholders, and advancing sustainability [3] - The company maintains a strong balance sheet with investment-grade metrics, allowing for self-funding of capital requirements and technology development projects [6] Market Outlook - The near-term outlook for alumina prices is positive, reaching a two-year high of $423 per ton, driven by steady demand and supply concerns [17] - Aluminum prices have recently hit their highest level in a year, with strong demand in automotive and electrical sectors, although building construction remains challenged [18] Risks and Challenges - The Alumar restart has faced delays due to equipment reliability and personnel experience issues, while the San Ciprián site is under review for long-term viability or potential sale [15][16] - Political risks and trade uncertainties are increasing, impacting supply chains, but Alcoa has managed to navigate these challenges due to its global diversity [22][23] Sustainability Initiatives - Alcoa is focused on developing low-carbon and recycled content products, with ongoing R&D projects aimed at reducing carbon emissions and improving efficiency [6][9] - The company recognizes the growing importance of secondary aluminum demand and is exploring ways to participate in this market [30] Conclusion - The acquisition of Alumina Limited is seen as a strategic move to enhance Alcoa's position in the aluminum market, providing immediate value for shareholders and aligning interests [12][11] - Alcoa remains committed to long-term growth and sustainability, with a positive outlook for both alumina and aluminum markets [20][21]

The materials sector, which encompasses companies producing raw materials and basic resources, has recently been on a rollercoaster ride. While the sector benefited from the post-pandemic economic recovery and increased demand for commodities, the tides have started to turn for these materials stocks to sell.As we traverse through May, several warning signs are flashing red for materials stocks. Firstly, interest rates have reached record highs, with the Federal Reserve not backing down on lowering rates fo ...

Alcoa Corp (NYSE:AA) stock is down 3.1% to trade at $36.41 at last check, looking to snap a four-day win streak as it pulls back from an April 29, 52-week high of $38.20. The 40-day moving average and $34 region contained this recent pullback, however, and the shares now look ready to bounce, according to a historically bullish signal.Specifically, the equity's recent peak comes amid historically low implied volatility (IV), which has been a bullish combination for Alcoa stock in the past. According to data ...

Key PointsDespite recent disappointing economic data, the metals sector is quickly becoming a breakout story. Regarding stock selection, investors should keep double-digit EPS growth front and center. Three stocks stand out with their bullish price action and EPS projections justifying their premium valuations.5 stocks we like better than AlcoaThe U.S. economy is pivoting into a new path for the year. After briefly jumping into its first expansionary reading in more than a year and a half, the ISM manufactu ...

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Alcoa Corporation's unaudited consolidated financial statements for Q1 2024, including operations, comprehensive income, balance sheet, cash flows, and equity changes, along with detailed explanatory notes [Statement of Consolidated Operations (unaudited)](index=5&type=section&id=Statement%20of%20Consolidated%20Operations%20%28unaudited%29) This statement details Alcoa Corporation's unaudited consolidated operational results for Q1 2024, showing sales, costs, and net loss Consolidated Operations (First Quarter Ended March 31) | Metric (in millions, except per-share) | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Sales | $2,599 | $2,670 | | Cost of goods sold | 2,404 | 2,404 | | Selling, general administrative, and other expenses | 60 | 54 | | Research and development expenses | 11 | 10 | | Provision for depreciation, depletion, and amortization | 161 | 153 | | Restructuring and other charges, net | 202 | 149 | | Interest expense | 27 | 26 | | Other expenses, net | 59 | 54 | | Total costs and expenses | 2,924 | 2,850 | | Loss before income taxes | (325) | (180) | | (Benefit from) provision for income taxes | (18) | 52 | | Net loss | (307) | (232) | | Less: Net loss attributable to noncontrolling interest | (55) | (1) | | NET LOSS ATTRIBUTABLE TO ALCOA CORPORATION | $(252) | $(231) | | Basic EPS | $(1.41) | $(1.30) | | Diluted EPS | $(1.41) | $(1.30) | [Statement of Consolidated Comprehensive Income (unaudited)](index=6&type=section&id=Statement%20of%20Consolidated%20Comprehensive%20Income%20%28unaudited%29) This statement presents Alcoa Corporation's unaudited consolidated comprehensive income for Q1 2024, including net loss and other comprehensive income components Consolidated Comprehensive Income (First Quarter Ended March 31) | Metric (in millions) | Alcoa Corporation (2024) | Alcoa Corporation (2023) | Noncontrolling interest (2024) | Noncontrolling interest (2023) | Total (2024) | Total (2023) | | :------------------- | :----------------------- | :----------------------- | :----------------------------- | :----------------------------- | :----------- | :----------- | | Net loss | $(252) | $(231) | $(55) | $(1) | $(307) | $(232) | | Other comprehensive income (loss), net of tax: | | | | | | | | Pension and other postretirement benefits | 9 | 4 | 1 | — | 10 | 4 | | Foreign currency translation adjustments | (122) | 2 | (54) | 15 | (176) | 17 | | Net change in unrecognized gains/losses on cash flow hedges | 130 | (122) | — | — | 130 | (122) | | Total Other comprehensive income (loss), net of tax | 17 | (116) | (53) | 15 | (36) | (101) | | Comprehensive (loss) income | $(235) | $(347) | $(108) | $14 | $(343) | $(333) | [Consolidated Balance Sheet (unaudited)](index=7&type=section&id=Consolidated%20Balance%20Sheet%20%28unaudited%29) This balance sheet provides Alcoa Corporation's unaudited consolidated financial position as of March 31, 2024, detailing assets, liabilities, and equity Consolidated Balance Sheet (as of March 31, 2024 and December 31, 2023) | Metric (in millions) | March 31, 2024 | December 31, 2023 | | :------------------- | :------------- | :---------------- | | **ASSETS** | | | | Current assets: | | | | Cash and cash equivalents | $1,358 | $944 | | Receivables from customers | 869 | 656 | | Inventories | 2,048 | 2,158 | | Total current assets | 4,881 | 4,405 | | Properties, plants, and equipment, net | 6,577 | 6,785 | | Total assets | $14,328 | $14,155 | | **LIABILITIES** | | | | Current liabilities: | | | | Accounts payable, trade | $1,586 | $1,714 | | Total current liabilities | 3,041 | 3,030 | | Long-term debt, less amount due within one year | 2,469 | 1,732 | | Total liabilities | 8,794 | 8,310 | | **EQUITY** | | | | Total Alcoa Corporation shareholders' equity | 3,994 | 4,251 | | Noncontrolling interest | 1,540 | 1,594 | | Total equity | 5,534 | 5,845 | | Total liabilities and equity | $14,328 | $14,155 | [Statement of Consolidated Cash Flows (unaudited)](index=9&type=section&id=Statement%20of%20Consolidated%20Cash%20Flows%20%28unaudited%29) This statement outlines Alcoa Corporation's unaudited consolidated cash flows for Q1 2024, categorized by operating, financing, and investing activities Consolidated Cash Flows (Three Months Ended March 31) | Metric (in millions) | 2024 | 2023 | | :------------------- | :--- | :--- | | CASH FROM OPERATIONS | | | | Net loss | $(307) | $(232) | | Depreciation, depletion, and amortization | 161 | 153 | | Restructuring and other charges, net | 202 | 149 | | Changes in assets and liabilities: | | | | (Increase) decrease in receivables | (212) | 40 | | Decrease in inventories | 71 | 17 | | Decrease in accounts payable, trade | (98) | (273) | | CASH USED FOR OPERATIONS | $(223) | $(163) | | FINANCING ACTIVITIES | | | | Additions to debt | 965 | 25 | | Payments on debt | (221) | (1) | | Dividends paid on Alcoa common stock | (19) | (18) | | CASH PROVIDED FROM FINANCING ACTIVITIES | $754 | $40 | | INVESTING ACTIVITIES | | | | Capital expenditures | (101) | (83) | | CASH USED FOR INVESTING ACTIVITIES | $(117) | $(102) | | Net change in cash and cash equivalents and restricted cash | 408 | (223) | | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $1,455 | $1,251 | [Statement of Changes in Consolidated Equity (unaudited)](index=11&type=section&id=Statement%20of%20Changes%20in%20Consolidated%20Equity%20%28unaudited%29) This statement presents Alcoa Corporation's unaudited consolidated equity changes for Q1 2024, detailing movements in common stock, capital, and accumulated loss Changes in Consolidated Equity (Three Months Ended March 31) | Metric (in millions) | Balance at Jan 1, 2024 | Net loss | Other comprehensive income (loss) | Stock-based compensation | Tax withholding/stock options | Dividends paid | Contributions | Distributions | Other | Balance at Mar 31, 2024 | | :------------------- | :--------------------- | :------- | :------------------------------ | :----------------------- | :---------------------------- | :------------- | :------------ | :------------ | :---- | :---------------------- | | Common stock | $2 | — | — | — | — | — | — | — | — | $2 | | Additional capital | 9,187 | — | — | 10 | (15) | — | — | — | 2 | 9,184 | | Accumulated deficit | (1,293) | (252) | — | — | — | (19) | — | — | — | (1,564) | | Accumulated other comprehensive loss | (3,645) | — | 17 | — | — | — | — | — | — | (3,628) | | Noncontrolling interest | 1,594 | (55) | (53) | — | — | — | 61 | (6) | (1) | 1,540 | | Total equity | $5,845 | $(307) | $(36) | $10 | $(15) | $(19) | $61 | $(6) | $1 | $5,534 | [Notes to the Consolidated Financial Statements (unaudited)](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section provides detailed notes to the unaudited consolidated financial statements, covering accounting policies, acquisitions, restructuring, segment data, and other financial details [A. Basis of Presentation](index=12&type=section&id=A.%20Basis%20of%20Presentation) This note explains the unaudited interim financial statements' basis, management's estimates, and consolidation policies, including the AWAC joint venture - Alcoa Corporation's interim Consolidated Financial Statements are unaudited and include normal recurring adjustments. Management's estimates are based on historical experience and available information, which may affect reported financial amounts[17](index=17&type=chunk)[18](index=18&type=chunk) - The Consolidated Financial Statements include accounts of Alcoa Corporation and companies with a controlling interest, such as the AWAC joint venture (**60% Alcoa, 40% Alumina Limited**), which is consolidated for financial reporting. Equity method accounting is used for investments with significant influence but not effective control[19](index=19&type=chunk)[20](index=20&type=chunk) [B. Recently Adopted and Recently Issued Accounting Guidance](index=12&type=section&id=B.%20Recently%20Adopted%20and%20Recently%20Issued%20Accounting%20Guidance) This note discusses new FASB ASUs (2023-09 on income tax and 2023-07 on segment expenses), effective in 2024/2025, with no expected material financial impact - ASU No. 2023-09 (December 2023) changes income tax disclosures, requiring greater disaggregation of information in rate reconciliation and disclosure of taxes paid by jurisdiction. Effective for annual periods beginning after December 15, 2024, with early adoption permitted. No material impact on financial statements expected[21](index=21&type=chunk) - ASU 2023-07 (November 2023) requires disclosure of significant segment expenses, other segment items, CODM title/position, and explanation of CODM's use of segment profit/loss measure. Effective for annual reports beginning after December 31, 2024. No material impact on financial statements expected[22](index=22&type=chunk) [C. Acquisitions and Divestitures](index=13&type=section&id=C.%20Acquisitions%20and%20Divestitures) Alcoa agreed to acquire Alumina Limited to strengthen its upstream aluminum position, involving share exchange and site separation costs from a prior divestiture - Alcoa entered a Scheme Implementation Deed on March 11, 2024, to acquire Alumina Limited, which holds a **40% interest in the AWAC joint venture**. The acquisition aims to enhance Alcoa's position as a pure-play upstream aluminum company and simplify its corporate structure[23](index=23&type=chunk) - Alumina Limited shareholders will receive **0.02854 Alcoa common shares** for each Alumina Limited share. Post-transaction, Alumina Limited shareholders will own **31.25%** and Alcoa shareholders **68.75%** of the combined company[24](index=24&type=chunk) - Alcoa recorded an additional charge of **$11 million** in Q1 2024 (vs. **$17 million** in Q1 2023) in Other expenses, net, related to site separation commitments from the Warrick Rolling Mill divestiture. Related cash outlays were **$7 million** in Q1 2024 (vs. **$14 million** in Q1 2023)[26](index=26&type=chunk) [D. Restructuring and Other Charges, Net](index=13&type=section&id=D.%20Restructuring%20and%20Other%20Charges%2C%20Net) Alcoa recorded **$202 million** in Q1 2024 restructuring charges, mainly for the Kwinana refinery curtailment, up from **$149 million** in Q1 2023 - In Q1 2024, Alcoa recorded **$202 million** in Restructuring and other charges, net, primarily a **$197 million** charge for the curtailment of the Kwinana (Australia) alumina refinery[27](index=27&type=chunk) - The Kwinana refinery curtailment charge includes **$123 million** for water management, **$41 million** for severance, **$15 million** for asset retirement obligations, **$13 million** for take-or-pay contracts, and **$5 million** for asset impairments. Total cash outlays of approximately **$215 million** are expected through 2025, with **$140 million** in 2024[28](index=28&type=chunk) - In Q1 2023, Alcoa recorded **$149 million** in Restructuring and other charges, net, primarily for the permanent closure of the Intalco aluminum smelter (**$101 million**) and increased reserves for employee obligations at the San Ciprián smelter (**$47 million**)[29](index=29&type=chunk) Restructuring and Other Charges, Net by Segment (First Quarter Ended March 31) | Segment | 2024 (in millions) | 2023 (in millions) | | :-------- | :----------------- | :----------------- | | Alumina | $197 | $1 | | Aluminum | — | 146 | | Corporate | 5 | 2 | | Total | $202 | $149 | [E. Segment Information](index=16&type=section&id=E.%20Segment%20Information) Alcoa's two segments, Alumina and Aluminum, are evaluated by Adjusted EBITDA; Q1 2024 saw Alumina EBITDA rise to **$139 million**, while Aluminum EBITDA fell to **$50 million** - Alcoa Corporation has two operating and reportable segments: Alumina and Aluminum. Segment performance is primarily evaluated based on Adjusted EBITDA[34](index=34&type=chunk) Segment Performance (First Quarter Ended March 31) | Metric (in millions) | Alumina (2024) | Aluminum (2024) | Total (2024) | Alumina (2023) | Aluminum (2023) | Total (2023) | | :------------------- | :------------- | :-------------- | :----------- | :------------- | :-------------- | :----------- | | Third-party sales | $961 | $1,638 | $2,599 | $857 | $1,810 | $2,667 | | Intersegment sales | 395 | 4 | 399 | 421 | 3 | 424 | | Total sales | $1,356 | $1,642 | $2,998 | $1,278 | $1,813 | $3,091 | | Segment Adjusted EBITDA | $139 | $50 | $189 | $103 | $184 | $287 | Sales by Product Division (First Quarter Ended March 31) | Product Division | 2024 (in millions) | 2023 (in millions) | | :--------------- | :----------------- | :----------------- | | Aluminum | $1,661 | $1,846 | | Alumina | 890 | 714 | | Energy | 33 | 28 | | Bauxite | 61 | 127 | | Other | (46) | (45) | | Total | $2,599 | $2,670 | [F. Earnings Per Share](index=18&type=section&id=F.%20Earnings%20Per%20Share) Basic and diluted EPS for Q1 2024 were **$(1.41)**, and **$(1.30)** for Q1 2023, with potential dilutive securities being anti-dilutive due to net losses Earnings Per Share (First Quarter Ended March 31) | Metric (in millions, except per-share) | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | Net loss attributable to Alcoa Corporation | $(252) | $(231) | | Average shares outstanding – basic | 179 | 178 | | Average shares outstanding – diluted | 179 | 178 | | Basic EPS | $(1.41) | $(1.30) | | Diluted EPS | $(1.41) | $(1.30) | - Basic and diluted average shares outstanding were the same in Q1 2024 and Q1 2023 because the effect of potential common shares was anti-dilutive due to net losses[37](index=37&type=chunk) [G. Accumulated Other Comprehensive Loss](index=19&type=section&id=G.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss for Alcoa shareholders was **$(3,628) million** at March 31, 2024, driven by cash flow hedge gains and foreign currency translation losses Accumulated Other Comprehensive Loss (First Quarter Ended March 31) | Component (in millions) | Alcoa Corporation (2024) | Alcoa Corporation (2023) | Noncontrolling interest (2024) | Noncontrolling interest (2023) | | :---------------------- | :----------------------- | :----------------------- | :----------------------------- | :----------------------------- | | Pension and other postretirement benefits (Balance at end of period) | $9 | $66 | $(14) | $(5) | | Foreign currency translation (Balance at end of period) | $(2,715) | $(2,683) | $(1,037) | $(1,025) | | Cash flow hedges (Balance at end of period) | $(922) | $(1,038) | — | $1 | | Total Accumulated other comprehensive loss | $(3,628) | $(3,655) | $(1,051) | $(1,029) | - For Alcoa Corporation shareholders, total other comprehensive income was **$17 million** in Q1 2024, a significant improvement from a loss of **$(116) million** in Q1 2023. This was mainly due to a **$130 million** gain from cash flow hedges in 2024, compared to a **$(122) million** loss in 2023[11](index=11&type=chunk)[39](index=39&type=chunk) - Foreign currency translation adjustments resulted in a loss of **$(122) million** for Alcoa Corporation shareholders in Q1 2024, compared to a gain of **$2 million** in Q1 2023[11](index=11&type=chunk)[39](index=39&type=chunk) [H. Investments](index=21&type=section&id=H.%20Investments) Alcoa's equity investments include a Saudi Arabia joint venture, which reported an improved net loss of **$(8) million** in Q1 2024, and the ELYSIS partnership basis is now zero Equity Investments Financial Information (First Quarter Ended March 31) | Metric (in millions) | Saudi Arabia Joint Venture (2024) | Mining (2024) | Energy (2024) | Other (2024) | Saudi Arabia Joint Venture (2023) | Mining (2023) | Energy (2023) | Other (2023) | | :------------------- | :-------------------------------- | :------------ | :------------ | :----------- | :-------------------------------- | :------------ | :------------ | :----------- | | Sales | $711 | $115 | $63 | $115 | $600 | $187 | $58 | $121 | | Net (loss) income | $(8) | $(5) | $31 | $(16) | $(252) | $24 | $24 | $(16) | | Alcoa Corporation's equity in net (loss) income | $(10) | $(2) | $11 | $(13) | $(75) | $11 | $9 | $(15) | - The Saudi Arabia joint venture's Q1 2023 results included a **$41 million** adjustment for a utility dispute settlement, which was not present in Q1 2024, contributing to the improved net loss[42](index=42&type=chunk) - Alcoa's basis in the ELYSIS Limited Partnership has been reduced to zero due to incurred losses, with **$54 million** in unrecognized losses as of March 31, 2024[41](index=41&type=chunk) [I. Receivables](index=21&type=section&id=I.%20Receivables) Alcoa uses a receivables purchase facility to sell up to **$130 million** of customer receivables, generating **$16 million** net cash proceeds in Q1 2024 - Alcoa has an agreement to sell up to **$130 million** of customer receivables without recourse on a revolving basis through a special purpose entity (SPE). The SPE held **$181 million** in unsold customer receivables as collateral at March 31, 2024[43](index=43&type=chunk)[44](index=44&type=chunk) - In Q1 2024, Alcoa sold **$307 million** in gross customer receivables and reinvested **$291 million**, resulting in net cash proceeds of **$16 million**. This compares to Q1 2023, where **$76 million** was sold, **$23 million** reinvested, and **$53 million** in net cash proceeds[46](index=46&type=chunk) [J. Inventories](index=22&type=section&id=J.%20Inventories) Alcoa's total inventories decreased to **$2,048 million** at March 31, 2024, a reduction across all categories from December 31, 2023 Inventories (as of March 31, 2024 and December 31, 2023) | Inventory Type (in millions) | March 31, 2024 | December 31, 2023 | | :--------------------------- | :------------- | :---------------- | | Finished goods | $326 | $355 | | Work-in-process | 281 | 287 | | Bauxite and alumina | 563 | 586 | | Purchased raw materials | 648 | 700 | | Operating supplies | 230 | 230 | | Total | $2,048 | $2,158 | [K. Debt](index=22&type=section&id=K.%20Debt) Alcoa's long-term debt increased to **$2,469 million** due to a **$750 million** green bond issuance, while revolving credit facilities remain undrawn and compliant - In March 2024, Alcoa Nederland Holding B.V. (ANHBV) completed a **$750 million** debt issuance of **7.125% Senior Notes due 2031**, designated as green bonds. Net proceeds of **$737 million** will finance/refinance qualifying projects under its Green Finance Framework and support cash position[51](index=51&type=chunk) - Alcoa has a **$1,250 million** Revolving Credit Facility maturing in June 2027 and a **$250 million** Japanese Yen Revolving Credit Facility maturing in April 2025 (extended in April 2024). Both facilities had no outstanding borrowings at March 31, 2024, and the Company was in compliance with all financial covenants[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - Short-term borrowings related to inventory repurchase agreements were **$52 million** at March 31, 2024. In Q1 2024, the Company recorded **$21 million** in borrowings and repurchased **$25 million** of inventory under these agreements[49](index=49&type=chunk)[50](index=50&type=chunk) [L. Pension and Other Postretirement Benefits](index=24&type=section&id=L.%20Pension%20and%20Other%20Postretirement%20Benefits) Net periodic benefit cost for pensions was **$3 million** in Q1 2024, with a **$1 million** curtailment loss from Kwinana refinery, and **$17 million** expected contributions in 2024 Net Periodic Benefit Cost (First Quarter Ended March 31) | Component (in millions) | Pension benefits (2024) | Pension benefits (2023) | Other postretirement benefits (2024) | Other postretirement benefits (2023) | | :---------------------- | :---------------------- | :---------------------- | :----------------------------------- | :----------------------------------- | | Service cost | $2 | $2 | $1 | $1 | | Interest cost | 27 | 31 | 6 | 6 | | Expected return on plan assets | (35) | (39) | — | — | | Recognized net actuarial loss | 8 | 7 | 1 | 1 | | Amortization of prior service benefit | — | — | (3) | (3) | | Curtailments | 1 | — | — | — | | Net periodic benefit cost | $3 | $1 | $5 | $5 | - The full curtailment of the Kwinana refinery in January 2024 triggered curtailment accounting in Alcoa's Australian pension plan, resulting in a **$1 million** curtailment loss recognized in Restructuring and other charges, net[59](index=59&type=chunk) - Alcoa's estimated minimum required contribution to defined benefit pension plans in 2024 is approximately **$17 million**, with **$6 million** contributed to non-U.S. plans during Q1 2024[62](index=62&type=chunk) [M. Derivatives and Other Financial Instruments](index=26&type=section&id=M.%20Derivatives%20and%20Other%20Financial%20Instruments) Alcoa uses derivatives to mitigate market risks, with **$23 million** in assets and **$1,130 million** in liabilities at March 31, 2024, and details fair values of other financial instruments - Alcoa uses derivative instruments (aluminum, energy, foreign exchange, and interest rate contracts) to mitigate risks from changing commodity prices, foreign currency exchange rates, and interest rates, primarily for hedging purposes[64](index=64&type=chunk) Derivative Instruments Fair Value (as of March 31, 2024 and December 31, 2023) | Metric (in millions) | March 31, 2024 Assets | March 31, 2024 Liabilities | December 31, 2023 Assets | December 31, 2023 Liabilities | | :------------------- | :-------------------- | :------------------------- | :----------------------- | :---------------------------- | | Level 1 derivatives | $11 | $10 | $16 | $9 | | Level 3 derivatives | 12 | 1,120 | 16 | 1,297 | | Total | $23 | $1,130 | $32 | $1,306 | | Less: Current | 22 | 205 | 29 | 214 | | Noncurrent | $1 | $925 | $3 | $1,092 | Other Financial Instruments Fair Value (as of March 31, 2024 and December 31, 2023) | Metric (in millions) | March 31, 2024 Carrying Value | March 31, 2024 Fair Value | December 31, 2023 Carrying Value | December 31, 2023 Fair Value | | :------------------- | :---------------------------- | :------------------------ | :------------------------------- | :--------------------------- | | Cash and cash equivalents | $1,358 | $1,358 | $944 | $944 | | Restricted cash | 97 | 97 | 103 | 103 | | Short-term borrowings | 52 | 52 | 56 | 56 | | Long-term debt due within one year | 79 | 79 | 79 | 79 | | Long-term debt, less amount due within one year | 2,469 | 2,473 | 1,732 | 1,702 | [N. Income Taxes](index=31&type=section&id=N.%20Income%20Taxes) Alcoa's Q1 2024 AETR was **(8.9)%** on a **$(325) million** loss before taxes, influenced by valuation allowances and **$9 million** in Section 45X tax credits Income Tax Information (First Quarter Ended March 31) | Metric (in millions) | 2024 | 2023 | | :------------------- | :--- | :--- | | Loss before income taxes | $(325) | $(180) | | Estimated annualized effective tax rate | (8.9)% | 141.4% | | Income tax expense (benefit) | $29 | $(255) | | (Favorable) unfavorable tax impact related to losses in jurisdictions with no tax benefit | (47) | 305 | | Discrete tax expense | — | 2 | | (Benefit from) provision for income taxes | $(18) | $52 | - The AETR for 2024 differs from the U.S. federal statutory rate of **21%** primarily due to losses in certain jurisdictions with full valuation allowances and losses in foreign jurisdictions with higher statutory tax rates[75](index=75&type=chunk) - In Q1 2024, Alcoa recorded **$9 million** in benefits in Cost of goods sold related to the Section 45X Advanced Manufacturing Tax Credit from the Inflation Reduction Act of 2022, for its Massena West and Warrick smelters[76](index=76&type=chunk) [O. Contingencies](index=31&type=section&id=O.%20Contingencies) Alcoa holds **$261 million** in environmental remediation reserves and is disputing a **$139 million** Australian tax assessment on historic alumina sales Environmental Remediation Reserve Activity (in millions) | Metric | Balance at Dec 31, 2022 | Liabilities incurred | Cash payments | Reversals and other | Balance at Dec 31, 2023 | Liabilities incurred | Cash payments | Foreign currency translation and other | Balance at Mar 31, 2024 | | :----- | :---------------------- | :------------------- | :------------ | :------------------ | :---------------------- | :------------------- | :------------ | :------------------------------------- | :---------------------- | | Reserve | $284 | $39 | $(55) | $(1) | $268 | $1 | $(6) | $(2) | $261 | - Alcoa's environmental remediation reserve balance was **$261 million** at March 31, 2024, with **$64 million** classified as current. Cash payments for remediation expenses were **$6 million** in Q1 2024[78](index=78&type=chunk)[79](index=79&type=chunk) - AofA is contesting an Australian Taxation Office (ATO) assessment of approximately **$139 million** in additional income tax and **$460 million** in compounded interest related to historic alumina sales. AofA paid **50%** of the assessed income tax (**$74 million**) and filed proceedings in the Australian Administrative Appeals Tribunal[91](index=91&type=chunk)[96](index=96&type=chunk)[98](index=98&type=chunk) [P. Other Financial Information](index=35&type=section&id=P.%20Other%20Financial%20Information) Q1 2024 'Other Expenses, Net' totaled **$59 million**, driven by equity and foreign currency losses, while 'Other Noncurrent Assets' were **$1,605 million** Other Expenses, Net (First Quarter Ended March 31) | Component (in millions) | 2024 | 2023 | | :---------------------- | :--- | :--- | | Equity loss | $27 | $95 | | Foreign currency losses (gains), net | 24 | (16) | | Net loss from asset sales | 11 | 14 | | Net loss (gain) on mark-to-market derivative instruments | 5 | (26) | | Non-service costs – pension and other postretirement benefits | 4 | 3 | | Other, net | (12) | (16) | | Total | $59 | $54 | Other Noncurrent Assets (as of March 31, 2024 and December 31, 2023) | Asset (in millions) | March 31, 2024 | December 31, 2023 | | :------------------ | :------------- | :---------------- | | Value added tax credits | $324 | $336 | | Prepaid gas transmission contract | 285 | 297 | | Gas supply prepayment | 262 | 283 | | Deferred mining costs, net | 179 | 187 | | Goodwill | 146 | 146 | | Prepaid pension benefit | 127 | 125 | | Noncurrent prepaid tax asset | 69 | 73 | | Noncurrent restricted cash | 66 | 71 | | Intangibles, net | 36 | 37 | | Other | 111 | 95 | | Total | $1,605 | $1,650 | Cash and Cash Equivalents and Restricted Cash (as of March 31, 2024 and December 31, 2023) | Metric (in millions) | March 31, 2024 | December 31, 2023 | | :------------------- | :------------- | :---------------- | | Cash and cash equivalents | $1,358 | $944 | | Current restricted cash | 31 | 32 | | Noncurrent restricted cash | 66 | 71 | | Total | $1,455 | $1,047 | [Q. Supplier Finance Programs](index=36&type=section&id=Q.%20Supplier%20Finance%20Programs) Alcoa participates in supplier finance programs, with **$100 million** in outstanding invoices at March 31, 2024, allowing early supplier payments without affecting Alcoa's obligations - Alcoa has supplier finance programs with third-party financial institutions, enabling suppliers to receive early payments for qualifying invoices. Alcoa's obligations and payment terms to suppliers are not impacted[107](index=107&type=chunk) - As of March 31, 2024, **$100 million** in qualifying supplier invoices were outstanding under these programs (vs. **$104 million** at December 31, 2023), with payment terms ranging from **45 to 110 days**. These obligations are included in Accounts payable, trade[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Alcoa's Q1 2024 financial condition and operations, covering business updates, net loss, sales, segment performance, and liquidity, including the Alumina Limited acquisition [Business Update](index=37&type=section&id=Business%20Update) Q1 2024 saw Alcoa agree to acquire Alumina Limited, restart smelter pots, curtail Kwinana refinery, launch a **$100 million** productivity program, and issue **$750 million** in green bonds - Alcoa entered a binding agreement on March 11, 2024, to acquire Alumina Limited, aiming to enhance its position as a leading pure-play, upstream aluminum company and simplify its corporate structure[108](index=108&type=chunk)[109](index=109&type=chunk) - In Q1 2024, Alcoa completed the restart of one potline (**54,000 mtpy**) at Warrick Operations and approximately **6%** of pots at the San Ciprián smelter, in compliance with viability agreements[114](index=114&type=chunk)[116](index=116&type=chunk) - Alcoa announced the full curtailment of the Kwinana refinery in January 2024, to be completed in Q2 2024, due to factors including age, scale, operating costs, bauxite grades, and market conditions[117](index=117&type=chunk) - The Company completed a **$750 million** green bond issuance in March 2024 under its new Green Finance Framework, with net proceeds supporting decarbonization, water management, R&D, renewable energy, and low-carbon product projects[118](index=118&type=chunk) - Alcoa initiated a global productivity and competitiveness program in Q1 2024, targeting approximately **$100 million** in operating cost savings (excluding raw materials, energy, and transportation) by Q1 2025[119](index=119&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Alcoa's Q1 2024 net loss was **$252 million**, with sales decreasing to **$2,599 million** due to lower aluminum prices, and restructuring charges rising to **$202 million** Selected Financial Data (Quarter Ended March 31, 2024 vs. Dec 31, 2023 & March 31, 2023) | Metric (in millions, except per-share) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | | :------------------------------------ | :----------- | :----------- | :----------- | | Sales | $2,599 | $2,595 | $2,670 | | Cost of goods sold | 2,404 | 2,425 | 2,404 | | Restructuring and other charges, net | 202 | (11) | 149 | | Net loss attributable to Alcoa Corporation | $(252) | $(150) | $(231) | | Diluted loss per share | $(1.41) | $(0.84) | $(1.30) | | Third-party shipments of alumina (kmt) | 2,397 | 2,259 | 1,929 | | Third-party shipments of aluminum (kmt) | 634 | 638 | 600 | | Average realized price per metric ton of alumina | $372 | $344 | $371 | | Average realized price per metric ton of aluminum | $2,620 | $2,678 | $3,079 | - Net loss attributable to Alcoa Corporation was **$252 million** in Q1 2024, an unfavorable change of **$102 million** sequentially (from **$150 million** in Q4 2023) and **$21 million** year-over-year (from **$231 million** in Q1 2023)[125](index=125&type=chunk) - Sales decreased **$71 million** year-over-year, primarily due to lower average realized aluminum prices and lower volumes and price from bauxite offtake and supply agreements, partially offset by higher alumina shipments[126](index=126&type=chunk)[127](index=127&type=chunk) - Cost of goods sold as a percentage of sales increased **2%** year-over-year, mainly due to higher production costs in the Alumina segment and lower average realized aluminum prices, partially offset by favorable raw material and energy costs[128](index=128&type=chunk)[133](index=133&type=chunk) - Restructuring and other charges, net, increased to **$202 million** in Q1 2024 (from **$(11) million** in Q4 2023 and **$149 million** in Q1 2023), primarily due to the Kwinana alumina refinery curtailment[135](index=135&type=chunk)[136](index=136&type=chunk) [Segment Information](index=45&type=section&id=Segment%20Information) Alumina segment Adjusted EBITDA rose to **$139 million** in Q1 2024, while Aluminum segment Adjusted EBITDA fell to **$50 million**, impacted by prices and production costs - Alumina Segment Adjusted EBITDA increased to **$139 million** in Q1 2024, up from **$84 million** in Q4 2023 and **$103 million** in Q1 2023. This was driven by a higher average realized price (**$28/ton** sequentially) and lower energy and raw material costs[159](index=159&type=chunk)[163](index=163&type=chunk) - Alumina production decreased **4%** sequentially and **3%** year-over-year, primarily due to reduced production at Australian refineries from lower bauxite grade, partially offset by increased production at the San Ciprián refinery[153](index=153&type=chunk)[154](index=154&type=chunk) - Aluminum Segment Adjusted EBITDA decreased to **$50 million** in Q1 2024, down from **$88 million** in Q4 2023 and **$184 million** in Q1 2023. This decline was primarily due to lower average realized prices (**$58/ton** sequentially, **$459/ton** year-over-year) and higher production costs[173](index=173&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk) - Aluminum production increased **5%** year-over-year in Q1 2024, driven by restarts at the Warrick and Alumar smelters. However, the Alumar smelter experienced operational instability[166](index=166&type=chunk)[172](index=172&type=chunk) Alumina Segment Key Metrics (Quarter Ended March 31) | Metric (kmt or millions) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | | :----------------------- | :----------- | :----------- | :----------- | | Bauxite production (mdmt) | 10.1 | 10.4 | 9.9 | | Alumina production (kmt) | 2,670 | 2,789 | 2,755 | | Third-party alumina shipments (kmt) | 2,397 | 2,259 | 1,929 | | Total sales | $1,356 | $1,354 | $1,278 | | Segment Adjusted EBITDA | $139 | $84 | $103 | | Average realized third-party price per metric ton of alumina | $372 | $344 | $371 | Aluminum Segment Key Metrics (Quarter Ended March 31) | Metric (kmt or millions) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | | :----------------------- | :----------- | :----------- | :----------- | | Production (kmt) | 542 | 541 | 518 | | Total shipments (kmt) | 634 | 638 | 600 | | Total segment third-party sales | $1,638 | $1,683 | $1,810 | | Segment Adjusted EBITDA | $50 | $88 | $184 | | Average realized third-party price per metric ton | $2,620 | $2,678 | $3,079 | | Average cost per metric ton of aluminum shipped | $2,474 | $2,483 | $2,695 | [Environmental Matters](index=52&type=section&id=Environmental%20Matters) This section refers to Note O for detailed environmental matters, including Alcoa's participation in site assessments, cleanups, and remediation reserves - For detailed information on environmental matters, refer to the Environmental Matters section of Note O to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q[183](index=183&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Alcoa's liquidity is deemed adequate; Q1 2024 cash used for operations increased to **$223 million**, while financing cash flow surged to **$754 million** from green bond issuance - Management believes Alcoa's cash on hand, projected cash flows, and liquidity options are adequate to fund short-term and long-term operating and investing needs, with no significant debt maturities until 2027[184](index=184&type=chunk) - Cash used for operations was **$223 million** in Q1 2024, compared to **$163 million** in Q1 2023. This unfavorable change was primarily due to a **$22 million** increase in net loss (excluding restructuring) and a **$23 million** increase in working capital accounts, mainly receivables[187](index=187&type=chunk)[189](index=189&type=chunk) - Cash provided from financing activities was **$754 million** in Q1 2024, a significant increase from **$40 million** in Q1 2023. This was primarily driven by **$737 million** net proceeds from the 2031 green bond issuance and **$55 million** in net contributions from noncontrolling interest[190](index=190&type=chunk)[193](index=193&type=chunk) - Cash used for investing activities was **$117 million** in Q1 2024 (vs. **$102 million** in Q1 2023), primarily for **$101 million** in capital expenditures and **$17 million** in cash contributions to the ELYSIS partnership[201](index=201&type=chunk) - Credit ratings for Alcoa Corporation and ANHBV's long-term debt were downgraded by Moody's, Fitch, and Standard and Poor's in March 2024, with outlooks revised to stable[199](index=199&type=chunk)[200](index=200&type=chunk) [Recently Adopted and Recently Issued Accounting Guidance](index=56&type=section&id=Recently%20Adopted%20and%20Recently%20Issued%20Accounting%20Guidance) This section refers to Note B for details on recently adopted and issued accounting guidance, including ASUs on income tax and segment expense disclosures - For information on recently adopted and issued accounting guidance, refer to Note B to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q[202](index=202&type=chunk) [Dissemination of Company Information](index=56&type=section&id=Dissemination%20of%20Company%20Information) Alcoa Corporation will disseminate future company developments and financial performance via its website, press releases, SEC filings, and webcasts - Alcoa Corporation will disseminate future company developments and financial performance through its website (www.alcoa.com), press releases, SEC filings, conference calls, and webcasts[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Alcoa's market risk exposure remains materially unchanged since December 31, 2023, with further details available in the Annual Report and Note M - Alcoa Corporation's exposure to market risk has not materially changed since December 31, 2023[204](index=204&type=chunk) - For additional information on market risk, refer to Part II Item 7A of Alcoa Corporation's Annual Report on Form 10-K for the year ended December 31, 2023, and Note M to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Alcoa's CEO and CFO affirmed the effectiveness of disclosure controls and procedures as of March 31, 2024, with no material changes in internal control - Alcoa Corporation's CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[205](index=205&type=chunk) - There have been no changes in internal control over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[206](index=206&type=chunk) [PART II – OTHER INFORMATION](index=58&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) Alcoa is involved in various legal proceedings, including environmental and tax matters, but management expects no material adverse effect on financial position - Alcoa is involved in various lawsuits and claims, including environmental, safety and health, commercial, tax, product liability, intellectual property infringement, employment, and employee and retiree benefit matters[207](index=207&type=chunk) - Management believes that the disposition of these pending or asserted matters will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company[207](index=207&type=chunk) - For additional information regarding legal proceedings, refer to Part I Item 1 of this Form 10-Q in Note O to the Consolidated Financial Statements[209](index=209&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section outlines risks associated with the proposed Alumina Limited acquisition, including significant costs, potential delays from approvals, and adverse impacts if the transaction fails - Alcoa expects to incur significant costs associated with the proposed acquisition of Alumina Limited, including financial advisor, filing, legal, accounting, and regulatory fees, some of which are payable regardless of transaction completion[211](index=211&type=chunk) - Completion of the Alumina Limited acquisition is subject to various conditions, including shareholder and court approvals, regulatory clearances (antitrust, foreign investment in Australia and Brazil), and NYSE listing approval for Alcoa shares. Delays or failure to obtain these approvals could prevent completion[212](index=212&type=chunk)[213](index=213&type=chunk)[216](index=216&type=chunk) - If the transaction is not completed, Alcoa's business and operations could be adversely affected, potentially leading to negative financial market reactions, litigation, and termination fees (e.g., **$20 million** if Alumina Limited terminates due to Alcoa's failure to obtain stockholder approval, or **$50 million** in other circumstances)[214](index=214&type=chunk)[215](index=215&type=chunk)[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Alcoa did not repurchase common stock in Q1 2024, with **$500 million** remaining available under its ongoing share repurchase program Issuer Purchases of Equity Securities (First Quarter Ended March 31, 2024) | Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | | :---------------------- | :------------------------------- | :------------------------------------ | :--------------------------------------------------------------------- | :----------------------------------------------------------------------------- | | January 1 to January 31 | — | — | — | $500,000,000 | | February 1 to February 29 | — | — | — | $500,000,000 | | March 1 to March 31 | — | — | — | $500,000,000 | | Total | — | — | — | | - As of March 31, 2024, Alcoa Corporation did not repurchase any shares of its common stock[218](index=218&type=chunk) - Alcoa has a common stock repurchase program, approved in July 2022, authorizing up to **$500 million** in repurchases. The full **$500 million** remains available for repurchase as of the report date[218](index=218&type=chunk) [Item 5. Other Information](index=61&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 in Q1 2024 - None of Alcoa's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended March 31, 2024[219](index=219&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including Alumina Limited acquisition agreements, Senior Notes indenture, and executive certifications - Exhibits include the Scheme Implementation Deed for the Alumina Limited acquisition, the Indenture for the **7.125% Senior Notes due 2031**, and certifications of principal executive and financial officers[221](index=221&type=chunk) - Certain schedules, exhibits, and appendices have been omitted in accordance with Item 601(a)(5) of Regulation S-K, with the Company undertaking to furnish copies upon request[221](index=221&type=chunk) [SIGNATURES](index=62&type=section&id=SIGNATURES) The report was signed on May 2, 2024, by Molly S. Beerman, EVP and CFO, and Renee R. Henry, SVP and Controller - The report was signed on May 2, 2024, by Molly S. Beerman, Executive Vice President and Chief Financial Officer, and Renee R. Henry, Senior Vice President and Controller[224](index=224&type=chunk)