Summary of Conference Call Notes Company and Industry Involved - **Company**: Century Aluminum - **Industry**: Aluminum and Data Center Infrastructure Key Points and Arguments 1. **Sale of Aluminum Smelter**: Century Aluminum sold its idle aluminum smelter in Hawesville, Kentucky, with an annual capacity of 250,000 tons to data center developer TeraWulf, which will convert the site into a digital infrastructure park [1] 2. **Power Supply**: The smelter is associated with approximately 480 MW of power supply, indicating significant energy resources for the new development [1] 3. **Future Energy Consumption Trends**: According to IAI statistics, global electrolytic aluminum energy consumption is projected to reach 936 TWh by the end of 2024, with North America consuming 54 TWh. McKinsey forecasts that by 2030, energy consumption by data centers in the U.S. will reach 606 TWh, contributing to a global demand of 1,400 TWh for data centers [1] 4. **Electricity Pricing Power**: The transition to AI-driven infrastructure suggests that electrolytic aluminum companies may have reduced bargaining power regarding electricity pricing [1] 5. **Long-term Supply and Demand Dynamics**: The long-term supply-demand balance for electrolytic aluminum remains tight, with a global supply growth rate (CAGR) of approximately 1.5%. Short-term breakthroughs in power carriers are unlikely [2] 6. **Demand Growth**: Demand for aluminum is expected to be driven by multiple sectors, including construction, industrial materials, electricity, and transportation, as the impact of construction diminishes [2] 7. **Investment in Infrastructure**: The national grid investment under the 14th Five-Year Plan is projected to reach 4 trillion yuan, an increase of 40%, indicating strong governmental support for infrastructure development [2] 8. **Aluminum Price Outlook**: With current low inventory levels, aluminum prices are expected to break out of the previous three-year range and enter a significant upward trend [2] 9. **Risk Factors**: Potential risks include unexpected changes in production capacity and macroeconomic policy shifts [2]

Core Viewpoint - Century Aluminum Company has announced the sale of its Hawesville, Kentucky site to TeraWulf Inc., which will transform the site into a digital infrastructure campus for high-performance computing and artificial intelligence workloads, while Century retains a minority equity stake in the project [1][3]. Group 1: Transaction Details - The Hawesville site will be redeveloped by TeraWulf Inc. into a digital infrastructure campus [1]. - Century Aluminum will maintain a non-controlling minority equity stake in the site, indicating ongoing interest in its productive reuse [1]. - The transaction is expected to create substantial new jobs, including both construction and permanent skilled positions, contributing to long-term economic activity in the region [2]. Group 2: Company Background and Future Plans - Century Aluminum is the largest producer of primary aluminum in the U.S. and has announced significant investments to more than double domestic aluminum production [3]. - Recent investments include the expansion of the Mt. Holly smelter in South Carolina and a new 750,000MT smelter to be built in Inola, Oklahoma, in partnership with Emirates Global Aluminium [3]. - The company emphasizes its commitment to investing domestically to meet national security needs for critical minerals [4]. Group 3: Advisory and Legal Counsel - BofA Securities served as the exclusive financial advisor to Century Aluminum for this transaction [4]. - FBT Gibbons and Vedder provided legal counsel to Century Aluminum [4]. Group 4: Company Overview - Century Aluminum operates primary aluminum smelting facilities in the U.S. and Iceland and is the majority owner of the Jamalco alumina refinery in Jamaica [5].

Core Insights - The CEO of Century Aluminum Company, Jesse Gary, sold 150,000 shares for approximately $7.2 million, coinciding with a significant stock surge and upcoming major plans for the company [1][2] Company Overview - Century Aluminum Company is a leading producer of various metals, including primary aluminum products, operating in the U.S. and Iceland, with additional facilities in the Netherlands and Jamaica [5] - The company reported a revenue of $2.53 billion and a net income of $80.80 million for the trailing twelve months (TTM) [4] - The company has experienced a 149.34% increase in stock price over the past year [4] Recent Developments - On January 26, Century Aluminum announced a partnership with Emirates Global Aluminum to establish the first aluminum smoldering plant in the U.S. in 47 years, expected to create 1,000 jobs [8] - The U.S. administration is pushing to increase domestic aluminum production, with Century Aluminum holding a 40% stake in the new plant, which is significant given the high demand for aluminum [9] Transaction Analysis - The recent sale of 150,000 shares by Jesse Gary is larger than his previous median sell transactions, representing 20.84% of his total holdings at the time, compared to a prior median of 15.38% [7] - The shares were sold at a weighted average price of $48.19, close to the market close price of $48.71 on the transaction date, indicating the sale occurred at historically elevated price levels [7]

Core Insights - The American aluminum industry is experiencing a resurgence due to national security concerns, supply-chain vulnerabilities, and competition from China [1] - Aluminum is increasingly recognized as a strategic material essential for defense readiness and economic security [1] Industry Overview - The importance of aluminum extends beyond consumer goods, impacting various sectors including homes, vehicles, aircraft, and military systems [4] - Aluminum is integral to national defense, with applications in tank armor, fighter jets, and missile propellant [4] Supply Chain Dynamics - The current aluminum supply chain is described as "thin," with minimal margin for disruption, indicating high vulnerability to incidents such as plant fires [5] - A disruption in the supply chain could have widespread implications, affecting production across various consumer products [5] Policy Impact - The U.S. aluminum industry has seen a significant reduction in smelters, from dozens to just a few, prior to the implementation of tariffs [5] - Trade protections initiated during President Trump's administration have contributed to a rise in aluminum production [6] Economic and Community Impact - New aluminum production capacity is expected to create long-term industrial clusters, attracting related businesses and sustaining jobs for generations [7] - Investments in aluminum production are anticipated to resonate within communities for decades, with expectations for smelters to operate for over 50 to 100 years [7]

Core Insights - Century Aluminum Company (CENX) and Emirates Global Aluminium (EGA) have entered a joint development agreement to build a primary aluminum production facility in Inola, OK, marking the first new primary aluminum plant in the U.S. since 1980 [1][7] - The facility is projected to be the largest primary aluminum production plant in the U.S., with an expected output of 750,000 tons of aluminum per year, which will more than double the current U.S. production capacity [1][7] Joint Venture Details - EGA will hold a 60% stake in the joint venture, while Century Aluminum will own the remaining 40% [2] - The project is anticipated to create approximately 4,000 construction jobs and 1,000 permanent direct jobs once operational [2] Project Timeline and Technology - Construction is targeted to begin by the end of 2026, with production expected to start by the end of the decade [2][7] - The Inola smelter will leverage EGA's expertise in aluminum smelting design and technology, along with Century Aluminum's operational experience [3] Market Impact - Currently, about 85% of U.S. aluminum demand is met through imports; the project aims to reduce this dependence by increasing domestic supply [4] - The plant's location at the Tulsa Port of Inola will enhance access to the Mississippi River system, facilitating efficient bulk freight mobility and supporting the development of a regional aluminum manufacturing hub in Oklahoma [5] Stock Performance - CENX stock has increased by 162.7% over the past year, outperforming the industry's growth of 47.2% [5]

Core Insights - Emirates Global Aluminium (EGA) and Century Aluminum (CENX) have entered into a joint development agreement to establish the first new primary aluminum production plant in the U.S. since 1980 [1] - EGA will hold a 60% stake in the joint venture, while Century will own 40% [1] - The new plant in Inola, Oklahoma is projected to produce 750,000 tonnes of aluminum annually, more than doubling current U.S. production levels [1] Project Details - The Inola plant will create 1,000 permanent direct jobs and 4,000 jobs during the construction phase [1] - The partnership leverages EGA's expertise in aluminum smelting technology and Century's operational history in the U.S. aluminum sector [1] - The project will utilize EGA's latest EX technology [1] Market Impact - The Inola plant will be the largest primary aluminum production facility in the U.S. and the first built in nearly 50 years [1] - Currently, about 85% of aluminum needs for American industries are met through imports, and this new smelter aims to enhance domestic supply [1] - Construction is expected to commence by the end of 2026, with production anticipated to start by the end of the decade [1] Current Progress - Detailed engineering work is already in progress, and negotiations for a competitive long-term power supply with Public Service Company of Oklahoma and the state of Oklahoma are advancing [1]

Core Viewpoint - Emirates Global Aluminium (EGA) is partnering with Century Aluminum to build the first new lightweight aluminum production plant in the U.S. since 1980, located in Oklahoma, with an expected annual production of 750,000 metric tons of aluminum [1] Group 1: Company Collaboration - EGA will hold a 60% stake in the joint venture, while Century Aluminum will own the remaining shares [1] - Construction is expected to begin by the end of this year, with production planned to start before 2030 [1] Group 2: Market Impact - The new plant will help reduce U.S. dependence on aluminum imports, which are projected to account for about half of U.S. consumption in 2024 according to the U.S. Geological Survey [1] - The collaboration comes at a time of rising aluminum prices in the U.S., influenced by tariffs imposed by President Trump on imported metals, which have increased costs for domestic consumers [1] Group 3: Financial Considerations - The estimated cost of the plant is expected to exceed $5 billion [1] - Analysts believe that the expenditure is feasible under the current pricing environment, but there are concerns regarding the cyclical nature of the aluminum business and ongoing tariff uncertainties, which may lead the company to consider alternative financing options, including equity financing [1]

Core Viewpoint - Century Aluminum is set to acquire a 40% stake in a new U.S. smelter being developed by Emirates Global Aluminium, marking the first primary aluminum plant in the U.S. in nearly 50 years [1] Group 1 - The planned smelter represents a significant development in the U.S. aluminum industry, which has not seen new primary production facilities for almost five decades [1] - This partnership indicates a strategic move by Century Aluminum to expand its footprint in the North American market [1] - Emirates Global Aluminium is leading the initiative, highlighting its commitment to investing in U.S. manufacturing capabilities [1]

Core Viewpoint - Emirates Global Aluminium (EGA) and Century Aluminum Company have formed a joint development agreement to construct the first new primary aluminum production plant in the U.S. since 1980, which will significantly increase domestic aluminum production and create thousands of jobs [1][3]. Group 1: Project Overview - The new aluminum plant will be located in Inola, Oklahoma, and is expected to produce 750,000 tonnes of aluminum annually, more than doubling current U.S. production levels [1][3]. - EGA will hold a 60% stake in the joint venture, while Century Aluminum will own the remaining 40% [1]. - The construction of the plant is anticipated to create 1,000 permanent jobs and 4,000 jobs during the construction phase [1]. Group 2: Technological and Operational Aspects - The project will utilize EGA's state-of-the-art EX technology, which is the most advanced aluminum smelting technology ever installed in the U.S. [2]. - The partnership combines EGA's expertise in aluminum smelting design and technology with Century's operational experience in the U.S. [2]. Group 3: Economic Impact - The Inola plant will be the largest primary aluminum production facility in the U.S. and aims to reduce the current reliance on aluminum imports, which currently meet about 85% of American industries' needs [3]. - The establishment of the plant is expected to drive the development of a regional aluminum-focused industrial hub in Oklahoma, creating additional jobs and economic opportunities in both upstream and downstream aluminum manufacturing [5]. Group 4: Leadership Statements - EGA's CEO emphasized the importance of this project for the future of American industry and the revitalization of U.S. aluminum production [4]. - Century Aluminum's CEO highlighted the project's alignment with national interests, particularly in key industries such as automotive, aerospace, and national defense, which will benefit from increased domestic aluminum production [4].

Company Overview - Century Aluminum Company is a leading producer of primary aluminum with significant manufacturing operations in the United States and Iceland, focusing on operational efficiency and product quality to maintain a competitive edge in the global aluminum industry [9][10] - The company generates revenue primarily through the manufacture and sale of aluminum products to industrial and commercial customers, with a total revenue of $2.53 billion over the trailing twelve months (TTM) [5][9] Recent Developments - On January 22, Glencore disclosed a purchase of 13,454,538 shares of Century Aluminum, with an estimated transaction value of $420.38 million based on quarterly average pricing [2][3] - Following this acquisition, Glencore's position in Century Aluminum rose to 53,511,894 shares valued at $2.10 billion, accounting for 48.39% of Glencore's reportable assets under management [4][7] Financial Performance - Century Aluminum reported $632.2 million in revenue for its latest quarter, returning to profitability with a net income of $14.9 million compared to a loss of $4.6 million in the previous quarter [12] - The company's adjusted EBITDA increased to $101.1 million, driven by higher Midwest aluminum premiums and improved power economics, with management guiding for fourth-quarter adjusted EBITDA of $170 million to $180 million [12] Market Position - As of January 21, Century Aluminum shares were priced at $47.75, reflecting a 133.7% increase over the past year, significantly outperforming the S&P 500 by 120 percentage points [4] - The market capitalization of Century Aluminum stands at $4.46 billion, indicating a strong market presence [5]