Century Aluminum CFO Details Mount Holly Restart, $300M EBITDA Run-Rate and Oklahoma Smelter Plan

Core Viewpoint - Century Aluminum is set to restart operations at its Mount Holly facility, increasing its annual production capacity and positioning itself for significant profitability in the near term [1][6][7]. Production Capacity and Expansion - The Mount Holly expansion is scheduled to begin in April, with a planned restart of 50,000 tons of idled capacity, bringing total annual production to approximately 220,000 tons by the end of June [1]. - Once Mount Holly is operational, Century will have a total capacity of 450,000 tons in the U.S., moving towards a nameplate capacity of 1.4 million tons [2]. - The company operates two smelters in the U.S. and one in Iceland, with the Iceland smelter producing 300,000 tons for the European market [3]. Financial Performance and Projections - Current spot prices suggest a quarterly run-rate adjusted EBITDA of approximately $300 million, which is about $80 million above the company's previous guidance of $225 million [6][10]. - The Mount Holly restart is expected to be highly profitable, with payback anticipated before year-end due to favorable aluminum prices [7][10]. Market Environment and Tariffs - Demand for aluminum in the U.S. is described as "really strong," with tariffs in place since 2018 contributing to price stability [11]. - Century has noted that there is no excess supply entering the U.S. market, and the current tariff regime is expected to remain in place [12]. Strategic Initiatives - Century has partnered with Emirates Global Aluminium to develop a new smelter in Oklahoma, which will be the largest in the Western world at 750,000 tons [13]. - The company is pursuing a $500 million grant from the U.S. Department of Energy and is exploring additional funding opportunities [14]. Asset Management and Capital Allocation - Century sold its idled Hawesville site for $200 million while retaining a 6.8% interest in the new data center being developed on the site [5][15]. - The company is prioritizing organic investments, including the Mount Holly expansion and projects at Jamalco, to enhance operational efficiency [16].