Market Conditions and Price Volatility - The overall price of primary aluminum is influenced by three components: base commodity price, regional premium, and value-added product premium, which can lead to significant volatility [77]. - The company experienced a tripling of Nord Pool power prices from January 2021 to December 2021 due to low reservoir levels and natural gas inventory in Europe [82]. - The company faces risks from excess capacity and overproduction in the aluminum market, which could lead to price deterioration and adversely impact operating results [80]. - Increased energy costs represent a significant component of the cost of goods sold, impacting profitability if not aligned with aluminum prices [81]. - The alumina index price reached a high of $710 per tonne in April 2018, while the average price was $362 per tonne for 2022, indicating significant price volatility [102]. - Changes in trade laws and regulations could adversely affect the company's sales margins and profitability, particularly regarding import tariffs on primary aluminum [154]. Operational Challenges and Production Capacity - The restart of the Mt. Holly smelter is contingent on a power agreement allowing production at 75% capacity, with profitability subject to market conditions [95]. - The Hawesville smelter operations were fully curtailed in Q3 2022, with any potential restart dependent on external market conditions [96]. - Disruptions in power supply can lead to reduced production volumes and increased costs for restarting operations [84]. - The Casthouse Project at Grundartangi will have a production capacity of 150,000 tonnes and is expected to start in Q1 2024, but completion is subject to various risks [99]. - The company completed a project in Q2 2022 to restart approximately 172,000 tonnes of production capacity at Mt. Holly, achieving 75% of its maximum capacity [58]. - A multi-year project at the Grundartangi smelter aims to increase annual production capacity to approximately 325,000 tonnes [59]. - The new casthouse project at Grundartangi is expected to produce up to 150,000 tonnes of billet starting in Q1 2024, focusing on low-carbon aluminum [59]. Financial Position and Debt Management - As of December 31, 2022, the company had approximately $527.7 million in outstanding debt, including $250.0 million in 7.5% senior secured notes due 2028 and $86.3 million in convertible senior notes due 2028 [126]. - The company may face significant borrowing costs and less favorable credit terms due to a deterioration in its financial condition or credit rating, which could limit access to credit and capital markets [124]. - The company is subject to interest rate risk, as its existing debt instruments and future borrowings may be at variable interest rates, potentially increasing debt service obligations [128]. - The company relies on intercompany transfers from subsidiaries to meet debt service obligations, which depend on the subsidiaries' operating results and applicable laws [130]. - The conversion of convertible notes may dilute stockholder ownership and could adversely affect the market price of the company's common stock [132]. Customer Concentration and Supplier Risks - Approximately 72% of consolidated net sales for the year ended December 31, 2022, were derived from two major customers, highlighting customer concentration risk [107]. - The company relies on a limited number of suppliers for raw materials, which could lead to production inefficiencies or increased costs if supply agreements are not renewed on favorable terms [101]. - The company expects to sell a substantial portion of its 2023 production to Glencore, maintaining a concentrated customer base under short-term contracts [35]. - Approximately 60% of the company's consolidated sales for the year ended December 31, 2022, were derived from Glencore and approximately 12% from Southwire [34]. Labor and Operational Efficiency - Labor agreements at key facilities are set to expire in the near future, with potential for strikes or work stoppages if negotiations are unsuccessful [121]. - Increased labor costs and turnover rates were experienced in 2022, impacting operational efficiency and financial performance [123]. - Approximately 43% of the U.S. workforce is represented by labor unions, with various labor agreements in place across different facilities [54]. Risk Factors and External Influences - The company faces risks from international operations, including political and economic instability, which could adversely affect financial results [112]. - Unpredictable events, such as natural disasters, could disrupt operations and lead to significant financial losses [114]. - The ongoing impact of the COVID-19 pandemic continues to affect supply chains and operational results, with potential for future disruptions [89]. - The company faces risks from cybersecurity incidents, which could disrupt operations and adversely impact financial results [139]. - Climate change regulations may increase operating costs, particularly related to electricity, which is the company's largest operating cost [146]. - The company currently receives approximately 70% of needed emission allowances for its smelter free of charge, but changes in regulations could increase costs [147]. - The potential physical impacts of climate change on operations are uncertain and could adversely affect the company's financial position and results of operations [148]. Insurance and Risk Management - The company maintains property and business interruption insurance, but coverage may not be sufficient to cover all losses from operational disruptions [87]. - Hedging activities may not effectively reduce risk exposure, and liquidity may be impacted by collateral margin calls [120]. Strategic Initiatives and Acquisitions - The company has a history of making acquisitions and plans to continue this strategy, which may involve risks such as unidentified liabilities and integration challenges [159]. - The company benefits from duty-free access to major customer markets, including the U.S. and E.U., due to existing trade laws [61]. - The proximity of production facilities to major customer markets allows for short, reliable supply chains, enhancing competitive advantage [62]. Legal and Regulatory Environment - The company is subject to various environmental laws and regulations that may impose significant costs and liabilities, potentially affecting its financial position and operations [150]. - The company is subject to litigation and legal proceedings, which may have a material adverse effect on its financial position and results of operations [155]. - Glencore beneficially owns approximately 42.9% of the company's outstanding common stock, which may influence the company's operations and decisions [160].

Century Aluminum Company (NASDAQ:CENX) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Peter Trpkovski - VP, Finance & IR Jesse Gary - President and Chief Executive Officer Jerry Bialek - Executive Vice President and Chief Financial Officer Shelly Harrison - Senior Vice President, Finance and Treasurer Conference Call Participants David Gagliano - BMO Capital John Tumazos - Very Independent Research Lucas Pipes - B. Riley Securities Operator Good afternoon. Thank you for a ...

Industry Environment LME Aluminum Alumina Price Index 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 LME $/MT 150 200 250 300 350 400 450 500 API $/MT Speakers • Jesse Gary – President and Chief Executive Officer • Jerry Bialek – Executive Vice President and Chief Financial Officer • Shelly Harrison – Senior Vice President, Finance and Treasurer • Peter Trpkovski – Vice President, Finance and Investor Relations 2 Company and Market Update Industry Fundamentals ◼ Continued Chinese water sh ...

Financial Data and Key Metrics Changes - In Q3 2022, the company reported an adjusted EBITDA loss of $36 million, a decrease of $123 million from the prior quarter [6][34] - Q3 shipments were down about 19% sequentially, primarily due to the curtailment of the Hawesville facility [30] - Realized prices decreased by 14% compared to the prior quarter, leading to a 26% decrease in sequential net sales [30][34] Business Line Data and Key Metrics Changes - The curtailment of the Hawesville facility significantly impacted overall shipments and financial performance [30] - The company expects to complete the first phase of its debottlenecking program by year-end, allowing for an additional 10,000 metric tons of billet to be sold in 2023 [8] Market Data and Key Metrics Changes - High energy prices have led to more than 50% of Europe's smelters curtailing operations, creating the largest aluminum deficit in European history [10][11] - Despite high energy costs reducing European demand, the contraction of Europe's aluminum supply base has kept global aluminum supply and demand roughly balanced [9] Company Strategy and Development Direction - The company is focused on lowering its cost structure and reducing exposure to spot energy prices while maintaining operational stability [7] - Long-term demand fundamentals for aluminum remain strong, with ongoing projects to expand value-added product lines [8] - The company aims to increase its renewable energy mix and reduce volatility in energy costs [76] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment is complex, with high energy prices and lower aluminum prices impacting results [6] - The company remains confident in its liquidity position and has taken measures to strengthen it, including a new $90 million credit facility [29][66] - Management anticipates that the energy crisis in Europe will persist for several years, affecting market conditions [16] Other Important Information - The company has implemented programs to reduce planned capital and operating expenditures by over $40 million in 2022 [26] - Workplace injuries have decreased by nearly 15% year-to-date, reflecting the company's focus on health and safety [27] Q&A Session Summary Question: Changes in hedges and revenue - The company confirmed an incremental 20,000 tons hedged at an average price, and it intends to continue hedging LME prices [49][51] Question: Further levers to pull in a challenging environment - Management expressed confidence in liquidity levels and mentioned various levers available for cost savings and cash generation [66][67] Question: Outlook on coke and pitch pricing - Management indicated that coke prices may have peaked, while pitch prices are expected to remain high for the near term [70] Question: Hawesville facility curtailment - The asset remains in good shape, and management will monitor market conditions before deciding on a restart [73] Question: Long-term renewable energy contracts - Management emphasized the importance of reducing energy cost volatility and increasing renewable energy in their supply mix [76] Question: Icelandic power arrangement - The company provided insights into the energy pricing structure but did not disclose specific fixed prices due to confidentiality [86][90]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Title of each class: Trading Symbol(s) Name of each exchange on which registered: Common Stock, $0.01 par value per share CENX Nasdaq Stock Market LLC (Nasdaq Global Select Market) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transit ...

Century Aluminum Company 2 nd Quarter Earnings Call August 9, 2022 Cautionary Statement This presentation and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements about future events and are based on our current expectations ...

Century Aluminum Co (NASDAQ:CENX) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET Company Participants Peter Trpkovski - VP, Finance & IR Jesse Gary - President, CEO & Director Michelle Harrison - Interim Principal Financial Officer, SVP of Finance & Treasurer Shelly Lair - IR Conference Call Participants David Gagliano - BMO Capital Markets Lucas Pipes - B. Riley Securities John Tumazos - John Tumazos Very Independent Research Timna Tanners - Wolfe Research Operator Good afternoon. My name is Sa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Title of each class: Trading Symbol(s) Name of each exchange on which registered: Common Stock, $0.01 par value per share CENX Nasdaq Stock Market LLC (Nasdaq Global Select Market) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition p ...

PART I - FINANCIAL INFORMATION This part presents unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition [Item 1. Financial Statements.](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and detailed notes Consolidated Statements of Operations (Unaudited) | Metric | Three months ended March 31, 2022 ($ millions) | Three months ended March 31, 2021 ($ millions) | | :--------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total net sales | 753.6 | 444.0 | | Cost of goods sold | 660.4 | 464.7 | | Gross profit (loss) | 93.2 | (20.7) | | Operating income (loss) | 81.3 | (36.9) | | Income (loss) before income taxes | 19.4 | (142.3) | | Net income (loss) allocated to common stockholders | 16.6 | (140.0) | | Basic EPS | 0.18 | (1.55) | | Diluted EPS | 0.18 | (1.55) | Consolidated Balance Sheets (Unaudited) | Metric | March 31, 2022 ($ millions) | December 31, 2021 ($ millions) | | :--------------------------------- | :-------------------------- | :----------------------------- | | Total current assets | 728.5 | 618.2 | | Total assets | 1,688.7 | 1,569.9 | | Total current liabilities | 574.0 | 547.4 | | Total noncurrent liabilities | 674.9 | 601.5 | | Total shareholders' equity | 439.8 | 421.0 | Consolidated Statements of Cash Flows (Unaudited) | Metric | Three Months Ended March 31, 2022 ($ millions) | Three Months Ended March 31, 2021 ($ millions) | | :----------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by (used in) operating activities | 37.4 | (49.8) | | Net cash used in investing activities | (26.0) | (7.4) | | Net cash provided by (used in) financing activities | (3.9) | 0.4 | | Change in cash, cash equivalents and restricted cash | 7.5 | (56.8) | | Cash, cash equivalents and restricted cash, end of period | 48.2 | 27.5 | [Note 1. General](index=10&type=section&id=Note%201.%20General) This note clarifies interim financial statements are unaudited, reflect normal adjustments, and are not indicative of full-year results - The interim financial statements are unaudited and reflect normal, recurring adjustments. Operating results for Q1 2022 are not necessarily indicative of the full year[23](index=23&type=chunk) [Note 2. Related Party Transactions](index=10&type=section&id=Note%202.%20Related%20Party%20Transactions) This note details significant transactions with Glencore, a **42.9%** beneficial owner, including sales and purchases of aluminum and raw materials - Glencore beneficially owned **42.9%** of Century's outstanding common stock as of March 31, 2022[25](index=25&type=chunk) - Sales to Glencore accounted for approximately **57%** of consolidated net sales for the three months ended March 31, 2022, down from **60%** in the prior year period[26](index=26&type=chunk) Summary of Related Party Transactions | Transaction | Three Months Ended March 31, 2022 ($ millions) | Three Months Ended March 31, 2021 ($ millions) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net sales to Glencore | 433.1 | 268.3 | | Purchases from Glencore | 54.5 | 72.3 | [Note 3. Revenue](index=11&type=section&id=Note%203.%20Revenue) This note disaggregates net sales by geographical region, highlighting the United States and Iceland as primary revenue sources Net Sales by Geographical Region | Region | Three Months Ended March 31, 2022 ($ millions) | Three Months Ended March 31, 2021 ($ millions) | | :------------- | :--------------------------------------------- | :--------------------------------------------- | | United States | 506.1 | 276.2 | | Iceland | 247.5 | 167.8 | | Total | 753.6 | 444.0 | [Note 4. Fair Value Measurements](index=11&type=section&id=Note%204.%20Fair%20Value%20Measurements) This note details fair value measurements for assets and liabilities, categorizing them by input observability (Level 1, 2, 3) Recurring Fair Value Measurements (Assets) as of March 31, 2022 | Asset | Level 1 ($ millions) | Level 2 ($ millions) | Level 3 ($ millions) | Total ($ millions) | | :----------------------- | :------------------- | :------------------- | :------------------- | :----------------- | | Cash equivalents | 10.9 | — | — | 10.9 | | Trust assets | 1.5 | — | — | 1.5 | | Derivative instruments | — | 84.7 | — | 84.7 | | TOTAL | 12.4 | 84.7 | — | 97.1 | Recurring Fair Value Measurements (Liabilities) as of March 31, 2022 | Liability | Level 1 ($ millions) | Level 2 ($ millions) | Level 3 ($ millions) | Total ($ millions) | | :----------------------- | :------------------- | :------------------- | :------------------- | :----------------- | | Contingent obligation – net | — | — | — | — | | Derivative instruments | — | 206.8 | 16.7 | 223.5 | | TOTAL | — | 206.8 | 16.7 | 223.5 | - Level 3 fair value measurements for LME forward financial sales contracts and FX Swaps use a significant unobservable input of an **8.58%** discount rate. The contingent obligation uses expected monthly Hawesville production levels (**14,000 - 16,000 MT/month**) as a significant unobservable input[45](index=45&type=chunk) [Note 5. Earnings (Loss) per Share](index=15&type=section&id=Note%205.%20Earnings%20(Loss)%20per%20Share) This note details basic and diluted earnings per share calculations, showing a significant improvement to positive EPS in Q1 2022 Basic and Diluted Earnings (Loss) Per Share | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) allocated to common stockholders ($ millions) | 16.6 | (140.0) | | Weighted average common shares outstanding (millions) | 91.2 | 90.1 | | Basic EPS | $0.18 | $(1.55) | | Diluted EPS | $0.18 | $(1.55) | | Dilutive securities (millions of shares) | 5.9 (Convertible preferred shares) | 6.4 (Convertible preferred shares) | | | 0.7 (Share-based compensation) | 2.2 (Share-based compensation) | | | 4.8 (Convertible senior notes) | — | - In periods of net loss, share-based compensation awards, convertible preferred shares, and convertible senior notes are excluded from diluted EPS calculation due to their anti-dilutive effect[54](index=54&type=chunk) [Note 6. Shareholders' Equity](index=16&type=section&id=Note%206.%20Shareholders%27%20Equity) This note details common and preferred stock, Glencore's ownership of Series A Convertible Preferred Stock, and the stock repurchase program - As of March 31, 2022, **91,231,611** shares of common stock were outstanding, and **58,542** shares of Series A Convertible Preferred Stock were outstanding, all held by Glencore[56](index=56&type=chunk)[59](index=59&type=chunk) - The stock repurchase program has **$43.7 million** remaining under authorization as of March 31, 2022, with no repurchases made since April 2015[67](index=67&type=chunk) Common and Preferred Stock Activity (in shares) | Metric | Series A Convertible | Treasury | Outstanding | | :------------------------------------ | :------------------- | :------- | :---------- | | Balance, December 31, 2021 | 58,542 | 7,186,521 | 91,231,611 | | Balance, March 31, 2022 | 58,542 | 7,186,521 | 91,231,611 | | Balance, December 31, 2020 | 63,589 | 7,186,521 | 90,055,797 | | Conversion of convertible preferred stock | (137) | — | 13,697 | | Issuance for share-based compensation plans | — | — | 18,220 | | Balance, March 31, 2021 | 63,452 | 7,186,521 | 90,087,714 | [Note 7. Income Taxes](index=17&type=section&id=Note%207.%20Income%20Taxes) This note reports a **$1.7 million** income tax expense for Q1 2022, a shift from a prior-year benefit due to improved operational results - Income tax expense was **$1.7 million** for Q1 2022, compared to a **$2.3 million** benefit in Q1 2021, driven by improved operational results[68](index=68&type=chunk) - All U.S. and certain foreign deferred tax assets, net of deferred tax liabilities, are subject to a valuation allowance as of March 31, 2022[70](index=70&type=chunk) [Note 8. Inventories](index=17&type=section&id=Note%208.%20Inventories) This note breaks down inventory components, valued at the lower of cost or Net Realizable Value using FIFO or weighted average methods Inventories Composition | Inventory Component | March 31, 2022 ($ millions) | December 31, 2021 ($ millions) | | :------------------------ | :-------------------------- | :----------------------------- | | Raw materials | 133.8 | 132.9 | | Work-in-process | 76.0 | 76.1 | | Finished goods | 44.0 | 43.9 | | Operating and other supplies | 172.7 | 172.7 | | Total inventories | 426.5 | 425.6 | [Note 9. Debt](index=18&type=section&id=Note%209.%20Debt) This note details the Company's debt structure, including revolving credit facilities, senior secured notes, and convertible senior notes Debt Balances | Debt Type | March 31, 2022 ($ millions) | December 31, 2021 ($ millions) | | :----------------------------------------- | :-------------------------- | :----------------------------- | | Hancock County industrial revenue bonds | 7.8 | 7.8 | | U.S. Revolving Credit Facility | 35.3 | 63.6 | | Iceland Revolving Credit Facility | 35.0 | 50.0 | | Grundartangi casthouse facility | 39.4 | — | | 7.5% senior secured notes due 2028 | 246.0 | 245.8 | | 2.75% convertible senior notes due 2028 | 84.1 | 84.0 | | Total Debt | 447.6 | 451.2 | - The U.S. revolving credit facility has **$35.3 million** in outstanding borrowings and **$102.1 million** in outstanding letters of credit as of March 31, 2022, with a maturity of May 2023[83](index=83&type=chunk) - The Grundartangi casthouse debt facility, with **$40.0 million** outstanding as of March 31, 2022, will fund the new billet casthouse project and matures in December 2029[87](index=87&type=chunk) [Note 10. Commitments and Contingencies](index=20&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) This note outlines commitments and contingencies, including legal, environmental, power supply, labor agreements, and a contingent obligation - The Ravenswood Retiree Medical Benefits settlement requires annual payments of **$2.0 million** for nine years, with **$2.0 million** in current liabilities and **$6.3 million** in other liabilities as of March 31, 2022[91](index=91&type=chunk) - The PBGC Settlement Agreement was amended in October 2021, committing the Company to contribute approximately **$2.4 million** per year to defined benefit pension plans for four years, starting November 2022[92](index=92&type=chunk) - Grundartangi's power purchase agreements expire from 2026 through 2036, with a significant portion of power priced at LME-based variable rates and an extended contract with Landsvirkjun providing fixed rates from January 2024[97](index=97&type=chunk) - A contingent obligation of **$28.4 million** (principal and accrued interest) related to a power contract unwind is fully offset by a derivative asset. Payments are contingent on LME prices and Hawesville's operations, and currently, no payments are expected through 2028[102](index=102&type=chunk) [Note 11. Components of Accumulated Other Comprehensive Loss](index=22&type=section&id=Note%2011.%20Components%20of%20Accumulated%20Other%20Comprehensive%20Loss) This note details components of Accumulated Other Comprehensive Loss (AOCL), including defined benefit plan liabilities and financial instrument gains/losses Components of AOCL | Component | March 31, 2022 ($ millions) | December 31, 2021 ($ millions) | | :----------------------------------------- | :-------------------------- | :----------------------------- | | Defined benefit plan liabilities | (86.0) | (86.7) | | Unrealized gain (loss) on financial instruments | 1.9 | 1.9 | | Other comprehensive loss before income tax effect | (84.1) | (84.8) | | Income tax effect | 2.4 | 2.5 | | Accumulated other comprehensive loss | (81.7) | (82.3) | Changes in AOCL Balances | Metric | Defined benefit plan and other postretirement liabilities ($ millions) | Unrealized gain (loss) on financial instruments ($ millions) | Total, net of tax ($ millions) | | :--------------------------------- | :--------------------------------------------------- | :------------------------------------------- | :----------------------------- | | Balance, January 1, 2022 | (84.0) | 1.7 | (82.3) | | Net amount reclassified to net income (loss) | 0.6 | 0.0 | 0.6 | | Balance, March 31, 2022 | (83.4) | 1.7 | (81.7) | [Note 12. Components of Net Periodic Benefit Cost](index=24&type=section&id=Note%2012.%20Components%20of%20Net%20Periodic%20Benefit%20Cost) This note details net periodic benefit cost components for defined benefit pension and postretirement plans, reporting a **$(1.5) million** cost in Q1 2022 Components of Net Periodic Benefit Cost | Component | Three months ended March 31, 2022 ($ millions) | Three months ended March 31, 2021 ($ millions) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Service cost | 1.1 | 1.4 | | Interest cost | 2.5 | 2.4 | | Expected return on plan assets | (5.8) | (5.5) | | Amortization of prior service costs | 0.0 | 0.0 | | Amortization of net loss | 0.7 | 1.5 | | Net periodic benefit cost | (1.5) | (0.2) | [Note 13. Derivatives](index=24&type=section&id=Note%2013.%20Derivatives) This note describes derivative activities, including open positions for commodity and power swaps, fair values, and net gains/losses - As of March 31, 2022, the Company had open positions of **118,341 tonnes** for LME forward financial sales contracts, **152,250 tonnes** for MWP forward financial sales contracts, and **1,755,100 MWh** for Nord Pool power price swaps[109](index=109&type=chunk)[110](index=110&type=chunk) Derivative Assets and Liabilities (Fair Value) | Category | March 31, 2022 ($ millions) | December 31, 2021 ($ millions) | | :----------------------- | :-------------------------- | :----------------------------- | | **Assets:** | | | | Commodity contracts | 84.7 | 42.9 | | Foreign exchange contracts | — | — | | Total Assets | 84.7 | 42.9 | | **Liabilities:** | | | | Commodity contracts | 220.0 | 143.3 | | Foreign exchange contracts | 3.5 | 2.9 | | Total Liabilities | 223.5 | 146.2 | Net (Loss) Gain on Forward and Derivative Contracts | Category | Three months ended March 31, 2022 ($ millions) | Three months ended March 31, 2021 ($ millions) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Commodity contracts | (56.0) | (96.0) | | Foreign exchange contracts | (1.0) | (2.1) | | Total | (57.0) | (98.1) | | Net losses with Glencore | 58.9 | 20.3 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's analysis of financial condition and results, covering aluminum pricing, costs, liquidity, and operational developments - The Company is a global producer of primary aluminum, with key determinants of results being primary aluminum price (LME + premiums), cost of goods sold (power, alumina, carbon, labor), and production volume/product mix[121](index=121&type=chunk) - A cyber incursion in February 2022 affected global operations but all systems have been restored, and the financial impact is not expected to be material[122](index=122&type=chunk) Average Aluminum Prices | Price Component | Q1 2022 ($/tonne) | Q1 2021 ($/tonne) | Q1 2020 ($/tonne) | | :---------------- | :---------------- | :---------------- | :---------------- | | Average LME price | 3,267 | 2,475 | 1,702 | | Average MWP price | 794 | 581 | 267 | | Average EDPP price | 489 | 272 | 126 | [Overview](index=28&type=section&id=Overview) Century Aluminum is a global primary aluminum producer, with financial results driven by aluminum prices, cost of goods sold, and production volume - Century Aluminum is a global producer of primary aluminum with smelters in the U.S. and Iceland[121](index=121&type=chunk) - Key determinants of financial results are primary aluminum price (LME, regional, and value-added premiums), cost of goods sold (electrical power, alumina, carbon products, labor), and production volume/product mix[121](index=121&type=chunk) [Recent Developments](index=28&type=section&id=Recent%20Developments) A cyber incursion on February 16, 2022, affected global operations, but systems are restored with no material financial impact expected - A cyber incursion was detected on February 16, 2022, affecting some global operations servers[122](index=122&type=chunk) - All impacted information systems have been fully restored, and the financial impact is not expected to be material[122](index=122&type=chunk) [Pricing of aluminum](index=28&type=section&id=Pricing%20of%20aluminum) Primary aluminum prices, including LME and regional premiums, are volatile and increased significantly in Q1 2022 due to market dynamics - The overall price of primary aluminum consists of the LME base commodity price, regional premiums (MWP, EDPP), and value-added product premiums[123](index=123&type=chunk) - Aluminum prices increased significantly in Q1 2022 compared to Q1 2021 and Q1 2020[124](index=124&type=chunk) Average Aluminum Prices (Q1 Comparison) | Price Component | Q1 2022 ($/tonne) | Q1 2021 ($/tonne) | Q1 2020 ($/tonne) | | :---------------- | :---------------- | :---------------- | :---------------- | | Average LME price | 3,267 | 2,475 | 1,702 | | Average MWP price | 794 | 581 | 267 | | Average EDPP price | 489 | 272 | 126 | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net sales and gross profit increased significantly year-over-year due to favorable pricing and volume, despite higher raw material and power costs Key Financial Results (Sequential and Year-to-Date) | Metric | Q1 2022 ($ millions) | Q4 2021 ($ millions) | Q1 2021 ($ millions) | | :------------------------------------ | :------------------- | :------------------- | :------------------- | | Total net sales | 753.6 | 659.1 | 444.0 | | Gross profit (loss) | 93.2 | 69.4 | (20.7) | | Net income (loss) | 17.7 | 60.4 | (140.0) | | Basic EPS | $0.18 | $0.62 | $(1.55) | | Diluted EPS | $0.18 | $0.59 | $(1.55) | - Net sales increased by **$100.7 million** sequentially (QoQ) and **$315.9 million** year-over-year (YoY), primarily due to favorable volume, sales mix, and LME/regional premium price realizations[133](index=133&type=chunk)[134](index=134&type=chunk) - Gross profit increased by **$23.8 million** sequentially and **$113.9 million** year-over-year, driven by favorable LME and regional premium price realizations, partially offset by unfavorable raw material and power price realizations and increased operating costs[134](index=134&type=chunk)[135](index=135&type=chunk) - Selling, general and administrative expenses decreased by **$6.9 million** sequentially and **$4.4 million** year-over-year, mainly due to reduced share-based compensation costs[136](index=136&type=chunk)[137](index=137&type=chunk) - Net loss on forward and derivative contracts was **$56.7 million** in Q1 2022, a decrease of **$83.5 million** from a gain in Q4 2021, but an improvement of **$41.4 million** compared to Q1 2021, influenced by LME/MWP forward prices and Nord Pool derivative gains[138](index=138&type=chunk) - Income tax expense was **$1.7 million** in Q1 2022, a decrease of **$11.5 million** from Q4 2021 expense and a shift from a **$2.3 million** benefit in Q1 2021, primarily due to improved operational results[140](index=140&type=chunk)[141](index=141&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was **$154.3 million** as of March 31, 2022, with operating activities providing **$37.4 million** in cash, and debt covenants maintained - Total liquidity as of March 31, 2022, was approximately **$154.3 million**, comprising **$26.6 million** in cash and **$127.7 million** in unused revolving credit facility availability[143](index=143&type=chunk) Summary of Cash Flows | Cash Flow Activity | 2022 ($ millions) | 2021 ($ millions) | | :----------------------------------------- | :---------------- | :---------------- | | Net cash provided by (used in) operating activities | 37.4 | (49.8) | | Net cash used in investing activities | (26.0) | (7.4) | | Net cash provided by (used in) financing activities | (3.9) | 0.4 | | Change in cash, cash equivalents and restricted cash | 7.5 | (56.8) | - The U.S. revolving credit facility has **$82.7 million** net availability, and the Iceland revolving credit facility has **$45.0 million** net availability as of March 31, 2022[84](index=84&type=chunk)[86](index=86&type=chunk) - The Company was in compliance with all debt covenants as of March 31, 2022[153](index=153&type=chunk)[155](index=155&type=chunk) [Other Items](index=34&type=section&id=Other%20Items) Operational updates include Hawesville and Mt. Holly restarts, Grundartangi casthouse construction, and an outstanding stock repurchase authorization - Hawesville's curtailed capacity restart to **80%** production was completed in late 2021, with the final potline rebuild planned over several years[168](index=168&type=chunk) - The Mt. Holly restart project, aiming for **75%** of full capacity, is progressing and expected to be completed in Q2 2022[169](index=169&type=chunk) - The Grundartangi casthouse project, fully funded by the Casthouse Facility, began in late 2021 and is expected to be completed in H2 2023[170](index=170&type=chunk) - The common stock repurchase program has **$43.7 million** remaining under authorization, with no repurchases made since April 2015[171](index=171&type=chunk) [Capital Resources](index=35&type=section&id=Capital%20Resources) Future capital expenditures will be financed by available cash, operating cash flow, and credit facilities, with **$40.0 million** estimated for 2022 - Future capital expenditures will be financed from available cash, cash flow from operations, and existing revolving credit facilities[176](index=176&type=chunk) - Estimated total capital spending in 2022, excluding Mt. Holly restart and Grundartangi casthouse projects, is approximately **$40.0 million** for ongoing investment and sustainability projects[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk.](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) This section details market risks, including commodity price risk for aluminum and raw materials, power price risk, and foreign currency risk - The Company is exposed to commodity price risk for aluminum (LME, regional, product premiums) and raw materials (alumina), with certain alumina purchases tied to LME prices[179](index=179&type=chunk) - Power costs are a major operating expense, with Hawesville and Sebree exposed to MISO pricing, and Grundartangi exposed to LME-based variable rates and Nord Pool power market prices for approximately **30%** of its power[180](index=180&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) Estimated Electrical Power Usage and Cost Impact (at 100% capacity) | Metric | Hawesville | Sebree | Mt. Holly | Grundartangi | Total | | :------------------------------------------------ | :--------- | :------- | :-------- | :----------- | :------ | | Expected average load (MW) | 482 | 385 | 400 | 537 | 1,804 | | Quarterly estimated electrical power usage (MWh) | 1,055,580 | 843,150 | 876,000 | 1,176,030 | 3,950,760 | | Quarterly cost impact of $1/MWh change ($ millions) | 1.1 | 0.8 | 0.9 | 1.2 | 4.0 | | Annual expected electrical power usage (MWh) | 4,222,320 | 3,372,600 | 3,504,000 | 4,704,120 | 15,803,040 | | Annual cost impact of $1/MWh change ($ millions) | 4.2 | 3.4 | 3.5 | 4.7 | 15.8 | - The Company is exposed to foreign currency risk from fluctuations in the U.S. dollar against the Icelandic krona and Euro, affecting labor and maintenance costs at Grundartangi and Vlissingen[187](index=187&type=chunk) Fair Value of Derivatives and Sensitivity to 10% Adverse Price Change (March 31, 2022) | Category | Asset Fair Value ($ millions) | Asset Fair Value with 10% Adverse Change ($ millions) | | :----------------------- | :---------------------------- | :---------------------------------------------------- | | Commodity contracts | 84.7 | 72.4 | | Total Assets | 84.7 | 72.4 | | | Liability Fair Value ($ millions) | Liability Fair Value with 10% Adverse Price Change ($ millions) | | Commodity contracts | 220.0 | 273.4 | | Foreign exchange contracts | 3.5 | 8.9 | | Total Liabilities | 223.5 | 282.3 | [Item 4. Controls and Procedures.](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes in internal control - Disclosure controls and procedures were evaluated and concluded to be effective as of March 31, 2022[196](index=196&type=chunk) - There were no material changes in internal control over financial reporting during the three months ended March 31, 2022[197](index=197&type=chunk) PART II - OTHER INFORMATION This part addresses legal proceedings, risk factors, equity sales, related party transactions, and required exhibits [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are not expected to materially adversely affect the Company's financial condition, results of operations, or liquidity - Legal proceedings are not expected to result in a material adverse effect on the Company's financial condition, results of operations, or liquidity[199](index=199&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the current period - No unregistered sales of equity securities and use of proceeds to report[200](index=200&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section discloses Glencore's non-U.S. affiliates' agricultural sales to Iranian entities, complying with sanctions and not involving the Company - Non-U.S. affiliates of the largest stockholder (Glencore) engaged in sales contracts for agricultural products with Iranian entities controlled by the Government of Iran during Q1 2022[203](index=203&type=chunk) - Gross revenue from these transactions did not exceed **$178 million** for Q1 2022, and the estimated net profit would be a small fraction of this amount[204](index=204&type=chunk)[205](index=205&type=chunk) - These contracts complied with applicable sanctions laws and are not subject to enforcement action. The Company itself was not involved in these transactions[206](index=206&type=chunk)[207](index=207&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements, CEO/CFO certifications, and XBRL documents - The report includes exhibits such as the Term Facility Amendment Agreement, CEO and Principal Financial Officer certifications (Rule 13a-14(a)/15d-14(a) and Section 1350), and XBRL instance and taxonomy documents[209](index=209&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) This section contains the signatures of the Company's authorized financial and accounting officers, certifying the report on May 2, 2022 - The report is signed by Michelle M. Harrison, Senior Vice President, Finance and Treasurer (Principal Financial Officer), and Robert Hoffman, Vice President and Chief Accounting Officer (Principal Accounting Officer), on May 2, 2022[213](index=213&type=chunk)

Financial Performance - The company reported a quarterly adjusted EBITDA of $105.5 million[4] - Net sales increased by 14% sequentially[4] - Total liquidity increased by $54 million[4] Market Fundamentals - LME price was approximately $3,100/MT[4] - U.S Midwest Premium was approximately $870/MT[4] - European Duty Paid Premium was approximately $610/MT[4] - The global aluminum market faces an approximate 1.0 million tonnes supply deficit[4] Operational Updates - Restart projects at Hawesville and Mt Holly are substantially complete, reaching 80% and 75% of capacity respectively[4] - Total shipments increased by 5% sequentially, despite power curtailments in Iceland[4] Hedging - Nord Pool prices are approximately 60% hedged for the balance of 2022 and approximately 80% hedged for FY23 at significantly lower prices[4] Outlook - Q2 Outlook @ Estimated Lagged Prices is $120-130 million[25]