Alcoa(US:AA)2023-02-22 16:00Production and Capacity - Alcoa's bauxite production in 2022 totaled 42.1 million dry metric tons (mdmt), with 36.7 mdmt produced by Alcoa-operated mines and 5.4 mdmt from partnerships[44]. - Alcoa's total consolidated alumina capacity is 13,843,000 mtpy, with a total worldwide alumina capacity of 15,619,000 mtpy[51]. - As of December 31, 2022, Alcoa had approximately 1,014,000 mtpy of idle capacity, including 800,000 mtpy at the San Ciprián refinery due to partial curtailment[53]. - In 2022, production at the San Ciprián refinery was reduced to approximately 50% of its 1,600,000 mtpy capacity due to high natural gas costs[55]. - Alcoa's primary aluminum facilities have a total consolidated capacity of 2,968,000 mtpy, with 868,000 mtpy of idle smelting capacity as of December 31, 2022[62]. - The company plans to restart the San Ciprián smelter's 228,000 mtpy capacity in phases beginning January 2024, aiming for 75% production by October 2025[65]. Sales and Revenue - Alcoa's alumina sales in 2022 were primarily to its own aluminum smelters, accounting for approximately 30% of total alumina shipments[49]. - In 2022, 96% of Alcoa's smelter grade alumina shipments to third parties were sold on a fixed price spot basis or adjusted API price basis[50]. - In 2022, approximately 8% of Alcoa's bauxite shipments were sold to third-party customers[83]. Joint Ventures and Partnerships - The joint venture with Ma'aden includes a bauxite mine with an estimated capacity of 5 million dry metric tons per year and an alumina refinery with a capacity of 1.8 million metric tons per year[28]. - Alcoa's joint venture interests include a 25.1% stake in the Ma'aden Aluminium Company, which holds the smelter in Saudi Arabia[29]. - Alcoa completed the sale of its investment in MRN for proceeds of $10 million, with potential additional cash of $30 million contingent on future mine development[37]. Environmental Initiatives - Alcoa's joint venture ELYSIS aims to commercialize technology that produces oxygen and eliminates greenhouse gas emissions from aluminum smelting, with industrial scale production planned to begin in 2024[32]. - Capital expenditures for new or expanded facilities for environmental control were approximately $136 million in 2022, with an expected $162 million in 2023[96]. - Approximately 86% of the aluminum smelting portfolio operated by the company was powered by renewable energy sources in 2022[91]. Financial Management - AWAC is required to distribute at least 50% of the prior calendar quarter's net income, with certain entities also required to pay distributions every three months[26]. - Alcoa's debt for AWAC is limited to 30% of total capital, which includes debt, minority interest, and shareholder equity[27]. - The company plans to report financial results in two segments: Alumina and Aluminum, starting January 2023[47]. Energy Management - Alcoa's energy costs account for approximately 30% of total alumina refining production costs and 25% of primary aluminum production costs[68]. - In 2022, Alcoa generated approximately 11% of the power used at its smelters worldwide, with the remainder purchased under long-term arrangements[70]. - The company has secured gas supplies covering over 95% of its refineries' requirements through 2023, with plans to cover approximately 80% through 2027[75]. - Approximately 75% of the smelter's future power needs have been secured under long-term agreements with renewable energy providers[76]. - In 2022, approximately 25% of the necessary power at the Mosjøen smelter was purchased at spot rates[76]. Workforce and Diversity - As of December 31, 2022, Alcoa had approximately 13,100 employees across 17 countries, with about 9,600 covered by collective bargaining agreements[101]. - In 2022, Alcoa hired approximately 420 additional employees for the restart of the Alumar smelter in Brazil[102]. - Women comprised approximately 18% of Alcoa's global workforce as of December 31, 2022, with 50% of the executive team being women[107]. - Alcoa's inclusion and diversity efforts are supported by three inclusion groups, with plans to expand to four groups in 2023[108]. - Alcoa's executive team includes a diverse range of backgrounds, with 12% being racially/ethnically diverse[107]. Safety and Compliance - The company emphasizes a culture of safety, aiming to prevent loss of life and serious injury through rigorous safety standards and controls[104]. - Alcoa's Chief Financial Officer, Molly S. Beerman, has been in her role since February 1, 2023, bringing extensive experience in finance and administration[113]. - The company has included a safety metric focused on reducing fatalities and serious injuries in its annual incentive program for several years[105]. Transparency and Communication - Alcoa's website provides access to its Annual Reports, Quarterly Reports, and other filings with the SEC, ensuring transparency in financial performance[109]. - Future announcements regarding company developments and financial performance will be made through the company's website and other communication channels[110].