美國鋁公司 (AA) 2024 Q2 法說會逐字稿

Good afternoon and welcome to the Alcoa Corporation second quarter 2024 earnings presentation and conference call. All participants will be in a listen-only mode. (Operator Instructions) Please note this event is being recorded.

下午好，歡迎來到美鋁公司 2024 年第二季財報和電話會議。所有參與者將處於僅聽模式。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to James Dwyer, Vice President, Investor Relations & Pension Investments. Please go ahead, sir.

我現在想將會議交給投資者關係和退休金投資副總裁 James Dwyer。請繼續，先生。

Thank you and good day, everyone. I'm joined today by William Oplinger, Alcoa Corporation President and Chief Executive Officer; and Molly Beerman, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Bill and Molly.

謝謝大家，祝大家有美好的一天。今天，美國鋁業公司總裁兼執行長威廉·奧普林格 (William Oplinger) 也加入了我的行列。執行副總裁兼財務長莫莉‧比爾曼 (Molly Beerman)。我們將在比爾和莫莉發表評論後回答您的問題。

As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings.

提醒一下，今天的討論將包含與未來事件和預期相關的前瞻性陳述，這些陳述受到各種假設和警告的影響。可能導致公司實際結果與這些聲明有重大差異的因素已包含在今天的簡報和我們向 SEC 提交的文件中。

In addition, we have included some non-GAAP financial measures in this presentation. For historical non-GAAP financial measures, reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation.

此外，我們也在本簡報中納入了一些非公認會計準則財務指標。對於歷史非 GAAP 財務指標，可以在今天簡報的附錄中找到與最直接可比較的 GAAP 財務指標的調整表。

We have not presented quantitative reconciliations of certain forward-looking non-GAAP financial measures for reasons noted on this slide. Any reference in our discussion today to EBITDA means adjusted EBITDA. Finally, as previously announced, the earnings press release and slide presentation are available on our website.

由於本投影片中所述的原因，我們尚未提供某些前瞻性非公認會計原則財務指標的定量調節表。我們今天討論中提及的 EBITDA 均指調整後的 EBITDA。最後，如同先前所宣布的，收益新聞稿和幻燈片簡報可在我們的網站上取得。

With that, here's Bill.

說到這裡，比爾來了。

Thanks, Jim, and welcome, everyone, to our second quarter 2024 earnings conference call. Before we get to all the good work we have done in the quarter, I'm pleased to say that we are nearing completion of the Alumina Limited acquisition. We held the Alcoa Stockholder Meeting yesterday, and our Alcoa stockholders have voted overwhelmingly to approve issuing Alcoa shares for the transaction.

謝謝吉姆，歡迎大家參加我們的 2024 年第二季財報電話會議。在我們開始本季度所做的所有出色工作之前，我很高興地說，我們即將完成對 Alumina Limited 的收購。我們昨天召開了美鋁股東大會，美鋁股東以壓倒性多數投票通過了發行美鋁股票的交易。

The Alumina Limited shareholder meeting occurs in a few hours, and we expect a favorable result there, as well, which would lead to an expected transaction closing date of August 1. As you've heard we say before, we believe that this transaction is the right deal for both sets of shareholders, and we look forward to realizing its benefits and welcoming Alumina Limited shareholders into Alcoa.

Alumina Limited 股東大會將在幾個小時後舉行，我們預計會議也會取得有利的結果，這將導致預計交易截止日期為 8 月 1 日。對雙方股東來說都是正確的交易，我們期待實現其利益並歡迎Alumina Limited 股東加入美鋁。

Now let's move to the quarter. First, I'm pleased that our safety programs continue to drive the right behaviors and are being reflected in both leading and lagging indicators. Safety is the linchpin of our care for people value and the bedrock upon which we build operational excellence. Second, our profitability improvement programs are delivering results and remain on track. Third, operational stability is evidenced by smelter production records at the Canadian system and Mosjoen, a safe and timely curtailment of Kwinana and steadily improving stability at the Alumar smelter.

現在讓我們進入本季。首先，我很高興我們的安全計畫繼續推動正確的行為，並反映在領先和落後指標中。安全是我們關心人的價值的關鍵，也是我們實現卓越營運的基石。其次，我們的獲利能力改善計劃正在取得成果並保持在正軌上。第三，加拿大系統和Mosjoen的冶煉廠生產記錄證明了營運穩定性，Kwinana的安全和及時的削減以及Alumar冶煉廠的穩定性穩步提高。

In addition, we continue to work toward the best possible resolution at San Ciprián as we strive to find competitive energy solutions and also progress the potential sale process. Finally, while we have been actively working on many fronts to improve the company, favorable alumina and aluminum markets have also helped improve our profitability and cash flows.

此外，我們將繼續努力在聖西普蘭尋求最佳解決方案，努力尋找有競爭力的能源解決方案並推動潛在的銷售流程。最後，雖然我們一直在許多方面積極努力改善公司，但有利的氧化鋁和鋁市場也有助於提高我們的獲利能力和現金流。

With that, I will turn it over to Molly, who has the details.

這樣，我會把它交給莫莉，她有詳細資料。

Thank you, Bill. Revenue was up sequentially to $2.9 billion on higher alumina and aluminum prices. In the alumina segment, third-party revenue increased 5% due to the higher average realized third-party price, partially offset by lower shipments. In the aluminum segment, third-party revenue increased 16% on higher average realized third-party price and increased shipments. Second-quarter net income attributable to Alcoa was $20 million versus the loss in the prior quarter of $252 million with earnings per share improving by $1.52 to $0.11 per share.

謝謝你，比爾。由於氧化鋁和鋁價格上漲，營收季增至 29 億美元。在氧化鋁領域，由於第三方平均實現價格較高，第三方收入成長了 5%，但部分被出貨量下降所抵銷。在鋁業，由於第三方平均實現價格上漲和出貨量增加，第三方收入增加了 16%。第二季歸屬於美國鋁業公司的淨利潤為 2,000 萬美元，而上一季的虧損為 2.52 億美元，每股收益提高了 1.52 美元，達到每股 0.11 美元。

On an adjusted basis, the net earnings attributable to Alcoa was $30 million or $0.16 per share. Adjusted EBITDA increased $193 million to $325 million. Let's look at the key drivers of EBITDA. The second quarter adjusted EBITDA increase was primarily due to higher average realized third-party prices for alumina and aluminum, partially offset by lower volume and other costs.

調整後，美國鋁業淨利為 3,000 萬美元，即每股 0.16 美元。調整後 EBITDA 增加 1.93 億美元，達到 3.25 億美元。讓我們看看 EBITDA 的主要驅動因素。第二季調整後 EBITDA 成長主要是由於氧化鋁和鋁的第三方平均實現價格上漲，部分被銷售和其他成本下降所抵銷。

The alumina segment increased $47 million, primarily as higher alumina prices more than offset higher energy and production costs. The aluminum segment increased $183 million, primarily due to higher metal prices, partially offset by higher alumina costs. Raw material and production cost improvement more than offset volume impacts related to shipments from our restarted, Warrick and Alumar smelters.

氧化鋁部門增加了 4700 萬美元，主要是因為較高的氧化鋁價格足以抵消較高的能源和生產成本。鋁部門增加了 1.83 億美元，主要是由於金屬價格上漲，但部分被氧化鋁成本上漲所抵消。原料和生產成本的改善足以抵消與我們重新啟動的 Warrick 和 Alumar 冶煉廠出貨量相關的影響。

Outside the segments, other corporate costs increased primarily due to various labor related expenses. Intersegment eliminations were unfavorable in the quarter, which is expected as the higher average alumina price increase requires more profit elimination.

在分部之外，其他企業成本的增加主要是由於各種與勞動力相關的費用。本季的部門間抵銷不利，這是預期的，因為平均氧化鋁價格上漲較高，需要更多的利潤抵銷。

Let's look at cash movements within the second quarter on the next slide. Year to date through June, capital expenditures and working capital changes were our largest uses of cash. The first half of 2024 capital expenditures includes an investment of $38 million, which is a portion of our commitment to purchase two vessels to provide bauxite transportation in Brazil. Two additional vessels will be leased.

讓我們在下一張投影片上看看第二季的現金變動。今年迄今截至六月，資本支出和營運資金變動是我們最大的現金用途。 2024年上半年的資本支出包括3,800萬美元的投資，這是我們承諾購買兩艘船以在巴西提供鋁土礦運輸的一部分。將另外租賃兩艘船。

We have an opportunity for a significant reductions in bauxite freight cost between our Juruti mine and Alumar refinery. We estimate savings to be $14 to $16 per ton of alumina. The first vessel arrived in Brazil this week with an additional three ships to be received later this year. We hired a contract operator with considerable expertise in the region to manage the technical operations on our behalf.

我們有機會大幅降低 Juruti 礦和 Alumar 煉油廠之間的鋁土礦運輸成本。我們估計每噸氧化鋁可節省 14 至 16 美元。第一艘船本週抵達巴西，另外三艘船將於今年稍後接收。我們聘請了一位在該地區擁有豐富專業知識的合約營運商來代表我們管理技術營運。

Through the first six months of 2024, working capital is a use of cash. While we normally start to reduce working capital after the first quarter, higher alumina and aluminum prices in the second quarter raised accounts receivable more than the decrease in inventories, leaving the working capital balance close to flat between quarters. We still expect to continue to reduce the working capital balance throughout the remainder of the year.

2024 年前六個月，營運資金均為現金使用。雖然我們通常在第一季後開始減少營運資金，但第二季氧化鋁和鋁價上漲導致的應收帳款增加量超過了庫存減少量，使得季度之間的營運資金餘額接近持平。我們仍預計今年剩餘時間內將繼續減少營運資金餘額。

Moving on to the other key financial metrics. While improving, the year to date return on equity was negative 5.8%. Days working capital decreased 6 days to 41 days sequentially, primarily due to a decrease in inventory days, partially offset by a decrease in accounts payable days, both on higher sales in the second quarter and favorable changes in the balances.

接下來討論其他關鍵財務指標。雖然有所改善，但今年迄今的股本回報率為負 5.8%。營運資金天數比上一季減少 6 天至 41 天，主要是由於庫存天數減少，部分被應付帳款天數減少所抵消，這兩者都是由於第二季度銷售額增加和餘額的有利變化。

Our second quarter dividend added $18 million to stockholder capital return. Free cash flow less net noncontrolling interest distributions was positive for the quarter at $101 million, improving sequentially by $370 million. The cash balance was maintained at $1.4 billion. In connection with the Alumina Limited acquisition, Alcoa will assume approximately $390 million of the debt drawn on their revolver. We are looking at delevering options and expect to reduce debt levels as we continue to focus on maintaining a strong balance sheet and improving operations.

我們第二季的股息為股東資本回報增加了 1800 萬美元。本季自由現金流減去淨非控股權益分配為 1.01 億美元，較上一季增加 3.7 億美元。現金餘額維持在14億美元。透過收購 Alumina Limited，美鋁將承擔其左輪手槍債務中約 3.9 億美元的債務。我們正在考慮去槓桿化方案，並期望在繼續專注於維持強勁的資產負債表和改善營運的同時降低債務水準。

On the outlook for the third quarter, other corporate cost is changing from approximately $120 million to approximately $140 million due to the previously mentioned additional labor related expenses. Interest expense is changing from approximately $145 million to approximately $160 million related to the Alumina Limited debt assumed at acquisition closing.

展望第三季度，由於前面提到的額外勞動力相關費用，其他企業成本將從約 1.2 億美元變為約 1.4 億美元。與收購結束時承擔的 Alumina Limited 債務相關的利息支出從約 1.45 億美元變為約 1.6 億美元。

Return-seeking capital is changing problem approximately $90 million to approximately $110 million as we are considering several return-seeking projects with attractive rates of return, primarily enhancements to our value add product capabilities and small creek projects.

尋求回報的資本正在將大約 9000 萬美元的問題改變為大約 1.1 億美元，因為我們正在考慮幾個回報率有吸引力的尋求回報的項目，主要是增強我們的增值產品能力和小溪項目。

Regarding sequential changes for the third quarter, in the alumina segment, we expect unfavorable impacts of approximately $10 million related to Australia bauxite grade. In the aluminum segment, we expect favorable raw material prices of approximately $10 million. While the higher price of alumina will increase overall Alcoa adjusted EBITDA, alumina costs in the Aluminum segment are expected to be unfavorable by $60 million.

關於第三季氧化鋁領域的連續變化，我們預計與澳洲鋁土礦品位相關的不利影響約為 1,000 萬美元。在鋁業，我們預計有利的原材料價格約為 1000 萬美元。雖然氧化鋁價格上漲將增加美鋁調整後的 EBITDA 整體水平，但鋁部門的氧化鋁成本預計將減少 6,000 萬美元。

Below EBITDA, we expect third quarter interest expense to increase by $5 million. Based on last week's pricing, we expect third quarter 2024 operational tax expense to approximate $60 million to $70 million. Net income attributable to noncontrolling interest will be reported through acquisition closing and is expected to approximate $20 million.

低於 EBITDA，我們預計第三季利息支出將增加 500 萬美元。根據上週的定價，我們預計 2024 年第三季營運稅費用約為 6,000 萬至 7,000 萬美元。歸屬於非控制權益的淨利潤將在收購完成時報告，預計約 2000 萬美元。

In relation to our expected closing of the Alumina Limited acquisition on August 1, you'll see certain changes to our financial statements. In the appendix, we have included June 30, financials with notations on the changes to the made in the third quarter.

鑑於我們預計將於 8 月 1 日完成 Alumina Limited 收購，您將看到我們的財務報表發生了某些變化。在附錄中，我們納入了 6 月 30 日的財務數據，並附有第三季變更的註釋。

As expected, the income statement will no longer reflect the portion of net income attributable to noncontrolling interest and the balance sheet will reflect the debt assumed and collapse the non-controlling interest equity into additional capital. On the cash flow statement, the distributions to non-controlling interests will end. Please see the appendix for additional details.

如預期的那樣，損益表將不再反映歸屬於非控股權益的淨利潤部分，資產負債表將反映所承擔的債務，並將非控制權益納入額外資本。在現金流量表中，對少數股東權益的分配將結束。請參閱附錄以了解更多詳細資訊。

Now I'll turn it back to Bill.

現在我會把它轉回給比爾。

Thanks, Molly. Let's start with the markets. In alumina, prices are up versus the first quarter, supplies currently tight, and there's a limited supply of low-carbon projects in the pipeline. The alumina price surged in the second quarter driven by several supply side disruptions and continued strong demand from smelters.

謝謝，莫莉。讓我們從市場開始。氧化鋁方面，價格較第一季上漲，目前供應緊張，而且正在籌建的低碳項目供應有限。在幾次供應方面的中斷和冶煉廠持續強勁的需求的推動下，第二季氧化鋁價格飆升。

Supply issues occurred in both China and the rest of the world. Chinese refineries curtailed capacity due to shortages of domestic bauxite amid continued environmental and safety inspections. In response, the volume and price of seaborne bauxite imports into China has increased this year.

中國和世界其他地區都出現了供應問題。由於持續的環境和安全檢查，國內鋁土礦短缺，中國煉油廠削減了產能。因此，今年中國海運鋁土礦進口量和價格均增加。

Outside of China, supply issues due to the Queensland force majeure in Eastern Australia reduced Indian aluminum exports and the Kwinana curtailment in Western Australia reduced supply. Demand increased the seasonally curtailed capacity in Yunnan province and China restarted, as well as some capacity in Europe that is still ramping up. All these factors contributed to making the spot market tight.

在中國之外，東澳大利亞昆士蘭州不可抗力造成的供應問題減少了印度鋁出口，西澳大利亞奎納納限電也減少了供應。需求增加了雲南省季節性削減的產能和中國的重啟，以及歐洲的一些產能仍在增加。所有這些因素都導致現貨市場緊張。

In the longer term, we expect the demand for alumina to continue to grow in line with primary aluminum supply growth. However, there are supply challenges from both bauxite supply and refinery carbon footprint. Refining in China is likely to become more expensive over time.

從長遠來看，我們預計氧化鋁的需求將繼續隨著原鋁供應的成長而成長。然而，鋁土礦供應和煉油廠碳足跡都存在供應挑戰。隨著時間的推移，中國的煉油成本可能會變得更加昂貴。

Chinese refineries are expected to increasingly rely on seaborne bauxite as their domestic resources deplete. In addition, a new policy was put in place this year to add energy efficiency standards for new domestic refineries requiring additional investor in time to ensure they meet the standards.

隨著國內資源的枯竭，中國煉油廠預計將越來越依賴海運鋁土礦。此外，今年也推出了一項新政策，對國內新建煉油廠增加能源效率標準，需要及時追加投資以確保其符合標準。

Another potential supply challenge is the carbon footprint of the refinery projects in pipeline. For primary aluminum to be truly low carbon, it needs to be low carbon from mine to metal. We offer our low carbon EcoLum primary aluminum, which is produced with less than 4 tons of carbon dioxide equivalents per ton of aluminum produced, including Scope 1 and 2 emissions for mining, refining, smelting and casting.

另一個潛在的供應挑戰是正在建造的煉油廠項目的碳足跡。原鋁要真正做到低碳，從礦場到金屬都必須是低碳的。我們提供低碳 EcoLum 原鋁，每生產一噸鋁的二氧化碳當量低於 4 噸，包括採礦、精煉、冶煉和鑄造的範圍 1 和 2 排放。

And the world's only low-carbon aluminum brand, EcoSource, which has a carbon footprint under 0.6 tons of CO2 per ton of alumina, including Scope 1 and 2 emissions from mining and refining. However, when considering likely alumina refinery projects, there are a few low carbon aluminum projects in the global pipeline and none that we expect to come online before 2030.

還有全球唯一的低碳鋁品牌EcoSource，每噸氧化鋁的碳足跡低於0.6噸二氧化碳，其中包括採礦和精煉的範圍1和範圍2排放。然而，在考慮可能的氧化鋁精煉項目時，全球正在醞釀一些低碳鋁項目，但我們預計沒有一個項目會在 2030 年之前上線。

Let's move to the aluminum market. In aluminum, prices have moved higher versus the first quarter, reflecting current market dynamics. On the supply side, there are limited new smelting projects in the near term, and China continues to hold through its 45 million ton annualized capacity cap.

讓我們轉向鋁市場。鋁的價格較第一季上漲，反映了當前的市場動態。供給方面，短期內新建冶煉工程有限，中國持續維持4,500萬噸年化產能上限。

Some Chinese smelters have relocated to different provinces within China to fully utilize their capacity quotas. And as a direct result of the cap, some Chinese affiliated smelter projects have advanced outside of China in Indonesia and Angola. While supply growth has remained limited, global demand continues to increase year on year. This has kept global inventories at historically low levels.

一些中國冶煉廠已搬遷至中國不同省份，以充分利用其產能配額。作為上限的直接結果，一些中國附屬冶煉廠項目已在中國境外的印尼和安哥拉推進。儘管供應成長仍然有限，但全球需求仍持續逐年成長。這使得全球庫存保持在歷史低點。

Digging deeper on demand. This year, several trade defense actions in North America and Europe have been implemented, which are likely to support demand in those regions. Overall, there is a strong recovery in the packaging segment. Electrical and transportation remains solid too, even the growth in the automotive segment has slowed in recent months, particularly in Europe.

根據需求進行更深入的挖掘。今年，北美和歐洲實施了多項貿易防禦行動，這可能會支撐這些地區的需求。整體而言，包裝領域出現強勁復甦。電力和交通運輸也依然強勁，儘管汽車領域的成長近幾個月有所放緩，尤其是在歐洲。

Building and construction remains the most challenged sector. However, the start of interest rate cutting in Europe and anticipated rate cuts in the US later this year could provide uplift for this sector.

建築業仍然是面臨最大挑戰的行業。然而，歐洲開始降息以及美國預計今年稍後降息可能會提振該產業。

On the pricing side, regional premiums in the second quarter were up sequentially across North America, Europe and Asia likely driven by a combination of the US and UK sanctions against Russia metal in April and continued supply chain disruptions in the Red Sea.

在定價方面，北美、歐洲和亞洲第二季度的區域溢價連續上漲，這可能是由於美國和英國四月份對俄羅斯金屬的製裁以及紅海供應鏈持續中斷的共同推動。

On the green aluminum front, we are excited to note that there are now low-carbon aluminum premium pricing indices available in Europe, North America and Asia, representing 90% of all aluminum demand outside of China. As a leading supplier of low-carbon aluminum, we believe these premium support our view that the demand for low-carbon products is rising.

在綠色鋁方面，我們很高興地註意到，目前歐洲、北美和亞洲都有低碳鋁溢價定價指數，佔中國以外鋁需求的 90%。作為低碳鋁的領導供應商，我們相信這些溢價支持了我們對低碳產品的需求正在上升的觀點。

In the longer term, we see a bright future for aluminum. We remain convinced that the healthy long-term demand fixture with growth driven by society's transition towards a low carbon future, demand for low-carbon primary aluminum should grow steadily as aluminum users focus on meeting their decarbonization targets and minimizing their exposure to carbon emissions based import duties.

從長遠來看，我們看到鋁的光明未來。我們仍然相信，隨著社會向低碳未來轉型所推動的健康的長期需求增長，隨著鋁用戶專注於實現其脫碳目標並最大限度地減少碳排放，對低碳原鋁的需求將穩步增長。

While both overall and low-carbon aluminum demand are expected to grow, there is a shortlist of likely smelting projects coming online in the next 5 to 10 years with less than 25% of the projects in the next 5 years using renewable power. So in summary, both the alumina and aluminum markets are showing strength and our long-term outlook remains positive.

雖然整體鋁需求和低碳鋁需求預計都會成長，但未來 5 至 10 年內可能上線的冶煉項目有一系列候選名單，其中不到 25% 的項目在未來 5 年內使用再生能源。總而言之，氧化鋁和鋁市場都表現強勁，我們的長期前景仍然樂觀。

Let's move to Alcoa specific topics, including our current operating performance and an exciting announcement for future operations related to ELYSIS. Whenever I visit our operating locations, we discuss three things: safety; stability and continuous improvement.

讓我們轉向美鋁的特定主題，包括我們目前的營運表現以及與 ELYSIS 相關的未來營運的令人興奮的公告。每當我造訪我們的營運地點時，我們都會討論三件事：安全；穩定性和持續改進。

Safety is a core Alcoa value. It is an indicator of process stability and a perfect place to focus on continuous improvement. We continue to evolve our safety programs and we judge performance based on leading indicators such as the roughly 8,300 critical control field verifications that we perform every month.

安全是美鋁的核心價值。它是流程穩定性的指標，也是專注於持續改善的完美場所。我們不斷發展我們的安全計劃，並根據領先指標來判斷績效，例如我們每月執行的大約 8,300 次關鍵控制現場驗證。

Evidence of our improvement is also clear in our lagging safety indicators such as the DART and the recordables rates, which are both improving substantially year on year. It's no coincidence that many of our plants are setting production records.

我們的改進證據也體現在我們落後的安全指標上，例如 DART 和可記錄率，這些指標均逐年大幅改善。我們的許多工廠都創下了生產記錄，這並非巧合。

Our Canadian smelting system set a half year production record and the motion smelter in Norway set both a quarterly and half year production record. In fact, Alcoa's total aluminum production has increased for seven straight quarters starting in the fourth quarter of 2022. That's a sign of both stability and continuous improvement.

我們的加拿大冶煉系統創下了半年產量記錄，挪威的運動冶煉廠則創下了季度和半年產量記錄。事實上，從 2022 年第四季開始，美國鋁業的鋁總產量已連續七季成長。

Turning to a longer-term project, we recently announced further progress on the ELYSIS technology program. Our ELYSIS partner will build tons of production cells in Quebec using ELYSIS technology. Alcoa have offtake rights for up to 40% of the metal and Alcoa will produce and supply the anodes for the demonstration cells at its technology center near Pittsburgh.

談到長期項目，我們最近宣布了 ELYSIS 技術計劃的進一步進展。我們的 ELYSIS 合作夥伴將使用 ELYSIS 技術在魁北克建造大量生產單位。美鋁公司擁有高達 40% 的金屬的承購權，美鋁公司將在其位於匹茲堡附近的技術中心為示範電池生產和供應陽極。

Alcoa will also benefit from the technology development that occurs in the project. We're excited for this first large-scale technology demonstration project to get underway and look forward to its successful startup by 2027.

美國鋁業公司也將受益於該項目的技術開發。我們對第一個大規模技術示範計畫的啟動感到興奮，並期待其在 2027 年成功啟動。

Finally, let me provide an update on two key areas of ongoing focus. Our profitability improvement programs and our San Ciprián improvements in sales processes. Six months ago, we provided a list of targeted actions to improve adjusted EBITDA by approximately $645 million by the end of 2025 compared to a 2023 baseline. To date, our year on year improvement has already met more than half the target and just under $300 million remains to be captured over the next 18 months.

最後，讓我介紹一下當前關注的兩個關鍵領域的最新情況。我們的獲利能力改善計劃和聖西普里安銷售流程的改進。六個月前，我們提供了一系列有針對性的行動，旨在到 2025 年底將調整後 EBITDA 較 2023 年基準提高約 6.45 億美元。迄今為止，我們的同比改進已達到目標的一半以上，並且在未來 18 個月內仍需實現近 3 億美元的目標。

A large piece of the program, almost half, was raw materials cost savings, which includes materials such as caustic, coke and pitch. Thanks to our procurement team's good work and favorable markets, we are ahead of our raw material savings target. While the path is harder from here, we have already achieved three quarters of the raw materials target and expect to exceed it by year end.

該計劃的很大一部分（幾乎一半）是節省原料成本，其中包括苛性鹼、焦炭和瀝青等材料。由於我們採購團隊的出色工作和有利的市場，我們提前實現了原材料節約目標。雖然今後的道路更加艱難，但我們已經實現了原材料目標的四分之三，並預計到年底將超過這一目標。

Progress is also being made on the other elements in the program. The productivity improvement program has captured $30 million in the year on year savings, about a third of its target. Warrick, thanks to its successful potline restart, has captured half of its $60 million internal target with another $30 million of its $90 million total dependent upon increased IRA funding. The Alumar smelter restart has captured a third of its target, and we are pleased with its increased operational stability.

該計劃的其他內容也正在取得進展。生產力改進計劃比去年同期節省了 3000 萬美元，約為其目標的三分之一。 Warrick 憑藉其成功的罐線重啟，已經實現了 6000 萬美元內部目標的一半，而 9000 萬美元總額中的另外 3000 萬美元則依賴於 IRA 資金的增加。 Alumar 冶煉廠重啟已實現其目標的三分之一，我們對其運作穩定性的提高感到滿意。

Finally, we are starting to see financial benefit of the full curtailment of the Kwinana refinery, although the full benefits are likely to be realized in 2025. So in total, we are pleased with our progress to date on our profitability improvement programs.

最後，我們開始看到奎納納煉油廠全面停產的經濟效益，儘管全部效益可能會在 2025 年實現。

The final near term improvement lever we outlined was finding a solution for San Ciprián. Our two-pronged approach has focused on improving the location's competitiveness and on pursuing a potential sale. Both the sale process and competitiveness improvement initiative rely on finding competitive energy for both the smelter and refinery.

我們概述的最後一個近期改進手段是為聖西普里安找到解決方案。我們採取雙管齊下的方法，重點是提高該地區的競爭力和尋求潛在的銷售。銷售流程和競爭力提升措施都依賴為冶煉廠和精煉廠尋找有競爭力的能源。

While electricity and gas prices are lower than the recent extreme highs, they're still not back in a row range that could be considered competitive. The Spanish government entities could be helpful on multiple fronts. On electricity costs, they could provide material CO2 compensation and eliminate the permitting denials and delays that have precluded availability of low-cost renewable power generation. Even with these challenges, we continue to work the sale process and aim to bring it to conclusion this year. But as noted earlier, a successful sale will depend on government and union support.

儘管電力和天然氣價格低於近期的最高點，但仍沒有回到可以被視為具有競爭力的區間。西班牙政府實體可以在多個方面提供協助。在電力成本方面，他們可以提供實質的二氧化碳補償，並消除阻礙低成本再生能源發電的許可拒絕和延誤。儘管面臨這些挑戰，我們仍繼續進行銷售流程，並計劃在今年完成。但如前所述，成功出售將取決於政府和工會的支持。

Summing it up, we are close to finalizing the Alumina Limited acquisition. We are excited to welcome the Alumina Limited shareholders to Alcoa and firmly believe that this transaction will enhance our Alcoa's position as a leading pure-play upstream global aluminum company. It will provide Alumina Limited shareholders ASX listed global aluminum exposure and result in greater operational and financial flexibility and strategic optionality.

總而言之，我們即將完成對 Alumina Limited 的收購。我們很高興歡迎 Alumina Limited 股東加入美鋁公司，並堅信此交易將增強美鋁公司作為全球領先的純上游鋁公司的地位。它將為 Alumina Limited 股東提供在澳洲證券交易所上市的全球鋁業務，並帶來更大的營運和財務靈活性以及策略選擇性。

Our safety and operational metrics are continuing to advance as we diligently progress our various improvement initiative. We have accomplished a lot, and we are targeting even more recent alone seminar in aluminum markets have been favorable. And we believe the mid and long term outlook for the aluminum industry is bright. It's a great time to be at Alcoa.

隨著我們努力推動各種改進舉措，我們的安全和營運指標不斷進步。我們已經取得了許多成就，我們的目標是最近在鋁市場上舉辦的研討會取得了有利的結果。我們相信鋁業的中長期前景是光明的。現在是在美鋁的美好時光。

With that, let's start the question and answer session.

那麼，讓我們開始問答環節。

(Operator Instructions) Carlos De Alba, Morgan Stanley.

（操作員指示）Carlos De Alba，摩根士丹利。

Thank you very much and congratulations on the progress that you guys have made, Bill and Molly. So one question is on the pace of synergies, assuming that everything goes as expected in the transaction closes in early August, the synergies that you have laid out, how quickly can you realize what you expect to see that the pace of those new synergies once again the deal is closed?

比爾和莫莉，非常感謝你們並祝賀你們所取得的進步。因此，一個問題是協同效應的速度，假設交易在八月初結束時一切都按預期進行，那麼您所製定的協同效應，一旦這些新的協同效應的速度達到預期，您能多快實現您所期望看到的效果？

And my second question is related to the decision of Alcoa to not participate in the funding of the ELYSIS first plant -- industrial plant. I understand that you have the 40% right to -- the right to purchase 40% of the material. But what was the thought process fir not participating in investment?

我的第二個問題與美國鋁業決定不參與ELYSIS第一座工廠——工業工廠的資助有關。我了解您有 40% 的權利—購買 40% 材料的權利。但不參與投資的思路是怎麼樣的呢？

Hi, Carlos. It's Molly. I'll take the first question and then Bill can take the second. On the synergies with Alumina Limited, we outlined that we would have overhead savings of $12 million, and that will start immediately. The other thing that we outlined is the capital allocation framework improvements that we expect to get, by able to place debt closer to the operations that need them, so within the jurisdictions where we can have a tax advantage. Now that will take time and we'll move our debt over a period of time, not immediately.

嗨，卡洛斯。是莫莉。我先回答第一個問題，然後比爾回答第二個問題。關於與 Alumina Limited 的協同效應，我們概述了我們將節省 1200 萬美元的管理費用，並且這將立即開始。我們概述的另一件事是我們期望獲得的資本配置框架的改進，透過能夠將債務放置在更接近需要它們的業務的地方，因此在我們可以擁有稅收優勢的管轄範圍內。現在這需要時間，我們將在一段時間內轉移債務，而不是立即轉移。

On the second question, Carlos. We believe the construct of the solution that we have on this first implementation of ELYSIS is a really smart construct. And the reason being is that they're implementing the 10 ELYSIS smelting pots at 100 KA at our vita. So it's a good testing ground for that size of the pod. At the same time, we will be building the anodes and cathodes at the technical center. So it's a good balance between the two partners.

關於第二個問題，卡洛斯.我們相信，我們在 ELYSIS 的首次實施中所擁有的解決方案的構造是一個非常聰明的構造。原因是他們在我們的 vita 實施了 10 個 100 KA 的 ELYSIS 熔煉爐。因此，對於這種尺寸的吊艙來說，這是一個很好的試驗場。同時，我們將在技術中心建造陽極和陰極。所以這兩個合作夥伴之間達到了很好的平衡。

I really like the solution also because we have the option of taking 40% of the offtake. And so we will have access to the lowest carbon metal in the world once this is up and running. So very pleased with the way we structured this deal and looking forward to the success of this first implementation.

我真的很喜歡這個解決方案，因為我們可以選擇承擔 40% 的承購量。因此，一旦該項目啟動並運行，我們將能夠獲得世界上碳含量最低的金屬。我們對這筆交易的建構方式非常滿意，並期待首次實施取得成功。

Great. Thanks very much. Good luck.

偉大的。非常感謝。祝你好運。

Thanks, Carlos,

謝謝，卡洛斯，

Katja Jancic, BMO Capital Markets.

Katja Jancic，BMO 資本市場。

Hi, thank you for taking my question. Maybe near term Molly, you mentioned in the alumina segment, you will have an unfavorable impact from bauxite grade in Australia. Can you provide a little more color on that? I would assume that with Kwinana being shut down that could be less of an impact.

你好，謝謝你回答我的問題。莫莉，您在氧化鋁領域提到，也許近期您將受到澳洲鋁土礦品位的不利影響。你能提供更多的顏色嗎？我認為隨著奎納納被關閉，影響可能會更小。

Katja, thanks for your question. What we are indicating with $10 million additional unfavorable cost related to the bauxite quality, we are seeing additional maintenance costs. We actually had been operating favorably in comparison to our original estimates on the bauxite quality impacts, higher caustic, higher energy, higher bauxite usage. But now we are starting to face some maintenance and so we are sorting the maintenance level that's going to be needed to run at a lower bauxite quality.

卡佳，謝謝你的提問。我們指出與鋁土礦品質相關的 1000 萬美元額外不利成本，我們看到了額外的維護成本。與我們最初估計的鋁土礦品質影響、更高的腐蝕性、更高的能源、更高的鋁土礦使用量相比，我們實際上一直在順利運作。但現在我們開始面臨一些維護，因此我們正在對以較低鋁土礦品質運作所需的維護水準進行排序。

And maybe how should we think moving forward? Is this something that will continue, could there be incremental pressures?

也許我們該如何思考前進？這種情況會持續下去嗎？

We will give you additional guidance. Honestly, the teams are sorting that now. So between the maintenance teams and our center of excellence by working hard to determine what the proper spend level is.

我們將為您提供額外的指導。老實說，團隊現在正在對此進行排序。因此，維護團隊和我們的卓越中心之間要努力確定適當的支出水準。

Okay, thanks. I'll hop back into the queue.

好的謝謝。我會跳回隊列。

Michael Dudas, Vertical Research.

邁克爾·杜達斯，垂直研究。

Good morning, gentlemen, Molly. Bill, maybe can you share your thoughts on the aluminum market? You're obviously we've all the dynamics that's occurring, how does this environment compared to other environments you witnessed with spiking in capacity issues, is this something that a little bit more sustainability? Is there a price level cost pressure there could be impacted and how you're planning for those dynamics in your alumina business, especially as you bring on the folks from Australia?

早安，先生們，莫莉。比爾，也許您能分享一下您對鋁市場的看法嗎？顯然，我們已經掌握了正在發生的所有動態，與您目睹的容量問題激增的其他環境相比，這個環境如何，這是否更具可持續性？價格水平成本壓力是否會受到影響？

So the aluminum -- the aluminum industry today is in a fairly unique situation. We exited the second quarter in a deficit to the tune of around globally for the industry, about a 3 million metric ton deficit. And for the full year, we're anticipating that alumina will be in deficit.

因此，鋁——當今的鋁業正處於一個相當獨特的境地。第二季結束時，該產業在全球範圍內出現了約 300 萬噸的赤字。我們預計全年氧化鋁將出現短缺。

So it's a situation that is very tight and we're seeing it around the world. The only way that deficit get solved, obviously is either smelters curtail or we get ramp-ups in alumina. There's really two things that drove that deficit in the near term. One was supply issues from some of our competitors, specifically in Northern Australia and China. So as we look forward that market only comes back in the balance if those supply issues are solved.

因此，這種情況非常緊張，我們在世界各地都看到了這種情況。解決赤字的唯一方法顯然是要么削減冶煉廠產量，要么增加氧化鋁產量。短期內確實有兩件事導致了赤字。一是我們的一些競爭對手的供應問題，特別是澳洲北部和中國的供應問題。因此，我們預計，只有這些供應問題得到解決，市場才會恢復平衡。

As far as the second question is when we bring on the Alumina shareholders and whether this has any impact on our running of our operations, you can understand at these prices, we're pushing to get every ton out the door and trying to make sure that we gain the benefit of these higher prices. We will not have any significant operational changes associated with the acquisition since Alumina Limited was a 40% minority partner, but no operational changes there. Hope that answers your question, Michael?

至於第二個問題是，當我們引入氧化鋁股東時，這是否會對我們的營運產生任何影響，你可以按照這些價格理解，我們正在努力將每一噸產品運出大門，並努力確保我們從這些更高的價格中受益。由於 Alumina Limited 是持有 40% 股份的少數合作夥伴，因此我們不會因收購而發生任何重大營運變化，但營運方面不會發生任何變化。希望這能回答你的問題，麥可？

It does Bill. And just quick follow-up. To regarding -- so with pricing, alumina spiking and some of the others issues you've talked about, is given where prices are, is there any suggestion that some smelters could curtail, especially since energy price kind of worked positive on the other ways, is any impact that could alleviate the market a bit you think?

比爾確實如此。並且只是快速跟進。考慮到定價、氧化鋁飆升以及您所討論的其他一些問題，考慮到價格在哪裡，是否有任何建議表明一些冶煉廠可能會減少產量，特別是因為能源價格在其他方面發揮了積極作用，您認為有什麼影響可以稍微緩解市場嗎？

It will depend on how long these prices persist. But clearly at $480 a ton, it will depend on what metal prices and ForEx, but it puts a lot of pressure on marginal smelters. So as I look around the world at the smelters that could be exposed to these higher prices and pressures associated with that, it would be in Southeast Asia and potentially the Middle East.

這將取決於這些價格持續多久。但顯然每噸 480 美元，這將取決於金屬價格和外匯，但這給邊緣冶煉廠帶來了巨大的壓力。因此，當我環顧世界各地可能面臨價格上漲和相關壓力的冶煉廠時，我發現這些冶煉廠可能位於東南亞，也可能位於中東。

Thank you, Bill.

謝謝你，比爾。

John Tumazos, John Tumazos Very Independent Research.

約翰‧圖馬佐斯，約翰‧圖馬佐斯非常獨立的研究。

Thank you very much. With the Kwinana outage and the Queensland gas curtailments and world aluminum metal output up 3.4% in the first five months. Are there smelters that can't operate because they don't have alumina or are somehow work in process inventories or alumina and transit inventories getting used up?

非常感謝。隨著奎納納停電和昆士蘭天然氣削減，前五個月世界鋁金屬產量增加了 3.4%。是否有冶煉廠因為沒有氧化鋁而無法運營，或者由於某種原因正在處理庫存或氧化鋁和運輸庫存耗盡？

So John, on the -- I think you're right in the near term on that question, we are seeing very tight inventories of alumina. The deficit that we saw in the second quarter of roughly 800,000 tons in a quarter, which for a full year basis is around 3 million metric tons, it really put a stress on inventory levels around the world.

所以約翰，關於這個問題，我認為你在短期內是正確的，我們看到氧化鋁庫存非常緊張。我們在第二季度看到的季度缺口約為 80 萬噸，全年缺口約為 300 萬噸，這確實給全球庫存水準帶來了壓力。

And to similar advance of the question similarly to what I answered with Michael, the areas of exposure for smelters and I should have also listed India, but it's really India, Southeast Asia and the Middle East that may be exposed to inability to get alumina. But at this point, we didn't see that in the second quarter. And it will depend on how long this deficit persists and whether there's a ramp-up associated with refining capacity.

與我回答麥可的問題類似，我也應該在冶煉廠的暴露區域列出印度，但實際上印度、東南亞和中東可能面臨無法取得氧化鋁的問題。但在這一點上，我們在第二季度並沒有看到這一點。這將取決於這種赤字持續多久以及煉油能力是否會增加。

With the second, possible questions. Thank you. If San Ciprián smelter and aluminum, were both off of your books, not the one-time charge or the severance, but how much would your alumina -- EBITDA improve every year with [spaying] off your books?

對於第二個可能的問題。謝謝。如果聖西普里安冶煉廠和鋁廠都從您的帳簿中扣除，不是一次性費用或遣散費，而是您的氧化鋁－EBITDA（息稅折舊及攤銷前利潤）每年會提高多少？

I think the closest that we've probably guided on that was the losses that we saw in 2023, which I will say them and then Molly will correct me, but I think it was approximately $150 million of EBITDA losses associated with the with the Spanish assets in 2023.

我認為我們可能最接近的指導是我們在 2023 年看到的損失，我會說出來，然後莫莉會糾正我，但我認為與西班牙相關的 EBITDA 損失約為 1.5 億美元2023年的資產。

Thank you and congratulations on being profitable again.

謝謝並祝賀您再次盈利。

Thanks, John.

謝謝，約翰。

Timna Tanners, Wolfe Research.

蒂姆納坦納斯，沃爾夫研究。

Great, thanks and good afternoon. Wanted to ask if you have any insights into or any updates on the latest regarding the remaining amount that you've been looking into for [45X] and any insights on to possible repeal, dial-back of the broader law, it's currently starting to get to be a hot topic and would be curious to any insights you have there?

太好了，謝謝，下午好。我想詢問您是否對您一直在調查的 [45X] 剩餘金額有任何見解或任何更新，以及對可能廢除、撤銷更廣泛法律的任何見解，目前正在開始成為熱門話題，並想知道您在那裡有什麼見解嗎？

So no insights on 45X at this point, we've clearly had dialogue with the administration. They understand how critically important 45X is to the US assets. I would reiterate and I've reiterated before, we're very appreciative of what they did around 45X on the first tranche, but including the second tranche would be important for the competitiveness of Massena and Warrick. What was your second question, Timna?

所以目前還沒有關於 45X 的見解，我們顯然已經與政府進行了對話。他們了解 45X 對美國資產的重要性。我要重申，我之前也重申過，我們非常讚賞他們在第一批中大約 45 倍的表現，但包括第二批對於馬塞納和沃里克的競爭力非常重要。你的第二個問題是什麼，提姆納？

There's also some discussion of our broader repeal of IRA. So I don't know if that's on the same vein of what you were just addressing, but like 45X in particular in broader IRA.

還有一些關於我們更廣泛地廢除 IRA 的討論。所以我不知道這是否與您剛才提到的內容相同，但就像 45X，特別是在更廣泛的 IRA 中。

Yeah. As far as a repeal of IRA, I've not heard anything with this current administration. Clearly, there's been some discussion in the Trump potential administration that they made repeal IRA, but we first have to see who will win the election in November and then what actions they'll take.

是的。至於廢除愛爾蘭共和軍，我還沒有聽到本屆政府的任何消息。顯然，川普潛在政府內部已經就廢除 IRA 進行了一些討論，但我們首先必須看看誰將贏得 11 月的選舉，然後他們會採取什麼行動。

Totally fair. And then if I could, on the Spanish situation, if you were in our seat, how do you think about any exit costs? Is there a range of potential outcomes are how do think about budgeting or, you know, modeling for that by the end of the year when there will be a decision made?

完全公平。那麼如果我可以的話，關於西班牙的情況，如果你坐在我們的座位上，你如何看待任何退出成本？是否有一系列潛在的結果是如何考慮預算，或者，你知道，在年底做出決定時對此進行建模？

Unfortunately, I can't give you a great answer, Timna. We are working down two work streams. The first is try to make the plan as competitive as we can. And as you well know, competitiveness for refinery and a smelter comes down largely to energy costs and energy solutions. So we're going down that path.

不幸的是，我不能給你一個很好的答案，提姆納。我們正在進行兩個工作流程。首先是盡量使計劃具有競爭力。眾所周知，煉油廠和冶煉廠的競爭力很大程度上取決於能源成本和能源解決方案。所以我們就沿著這條路走下去。

The second path that we're going down is the sale process to give you a little color on the sale process. We had around six companies that showed an expression of interest. We'd narrowed that down to a subset of those companies, got a second round and are now in the process of going through a final round with a subset of those bidders. So we will see whether we can, come out with a successful solution on the sale process.

我們要走的第二條路是銷售流程，讓您對銷售流程有一些了解。我們有大約六家公司表達了興趣。我們已將範圍縮小到這些公司的子集，進行了第二輪，現在正在與這些投標人的子集進行最後一輪。因此，我們將看看是否能夠在銷售流程中提出一個成功的解決方案。

If both of those work streams were to fail, the cash we believe will run out towards the end of the year. Obviously, that is dependent on what the market environment looks like, and we'll have to make some pretty hard decisions. I've made it clear since the beginning of the year, we're not willing to put cash into the entity. So some real hard decisions will have to be made there.

如果這兩個工作流程都失敗，我們相信現金將在年底耗盡。顯然，這取決於市場環境，我們必須做出一些非常困難的決定。我從今年年初就明確表示，我們不願意向該實體投入現金。因此，必須在那裡做出一些真正艱難的決定。

Okay, fair. I appreciate the color. Thanks again.

好吧，公平。我很欣賞它的顏色。再次感謝。

Thanks, Timna.

謝謝，蒂姆納。

Alex Hacking, Citi.

亞歷克斯哈金，花旗銀行。

Yeah, thanks. I guess two questions. First question would be for Molly. In your prepared remarks, you talked about options for de-leveraging, could you maybe lay out what's on the table there? And then secondly, just following up on San Ciprián, it's the fate of the smelter and the refinery tied together? Is there a world where you sell one and not the other? Is there a world where you close one or not the other? Just anything there would be helpful. Thanks.

是的，謝謝。我猜有兩個問題。第一個問題是問莫莉的。在您準備好的發言中，您談到了去槓桿化的選擇，您能否列出目前正在討論的內容？其次，就聖西普蘭事件而言，冶煉廠和精煉廠的命運是綁在一起的嗎？有沒有一個世界，你只賣一個而不賣另一個？是否有一個世界，你可以關閉一個或另一個不關閉？只要有任何東西都會有幫助。謝謝。

So, Alex, on the first question on our delevering, we no longer have an externally stated net debt target, however, right now are at $1.9 billion, and that is higher than the levels that we were able to achieve in 2021 and 2022, right around $1.1 billion. So we do expect to delever. It will take us some time. We've done this in the past, but we expect to really to focus on getting back to the strong balance sheet. And that puts us in the best position for acting on future growth options.

因此，Alex，關於我們去槓桿化的第一個問題，我們不再有外部規定的淨債務目標，但是，目前的淨債務目標為19 億美元，這高於我們在2021 年和2022 年能夠實現的水平，大約11億美元。所以我們確實期望去槓桿化。我們需要一些時間。我們過去曾這樣做過，但我們希望真正專注於恢復強勁的資產負債表。這使我們處於採取未來成長選擇的最佳位置。

As far as San Ciprián goes, I would not rule out any options, Alex. It is difficult to sell part of the plant because the plant is connected between the two and there would need to be incremental capital put in place to operate the two independently. So I think that makes it difficult to sell separately. But as far as your second questions about potential curtailment, I hate to speculate on where we could get to, but I wouldn't rule out any options at this point.

就聖西普里安而言，我不會排除任何選擇，亞歷克斯。出售部分工廠很困難，因為該工廠連接在兩者之間，並且需要增量資本來獨立運作這兩個工廠。所以我認為這使得單獨銷售變得困難。但就你關於潛在削減的第二個問題而言，我不想猜測我們可以達到什麼目標，但目前我不會排除任何選擇。

Okay. Thanks. Just a follow-up for Molly, if I could. Is that okay?

好的。謝謝。如果可以的話，只是莫莉的後續行動。可以嗎？

Yes.

是的。

I mean, in terms of delevering, I assume, free cash flow generation is option number one, right? But what else is potentially on the table? Asset sales or other things? I guess in your prepared remarks, you just said you're looking at options. So just curious what the options are?

我的意思是，就去槓桿化而言，我認為自由現金流的產生是第一選擇，對吧？但還有什麼可能擺在桌面上呢？資產出售還是其他？我想在你準備好的發言中，你剛剛說過你正在考慮選擇。所以只是好奇有哪些選項？

Yeah, we have a number of things we're looking at. We do again, we are assuming a $390 million debt in Australia. So we have options, we want to look at placing debt there. We also are looking at options to delever elsewhere and our debt. What we want to do, Alex, to get a look at the cash flows through the end of the year and evaluate all our options based on the strength of those flows over the next quarter or two.

是的，我們正在考慮很多事情。我們再次承擔了澳洲 3.9 億美元的債務。所以我們有選擇，我們想考慮在那裡放債。我們還在尋找去槓桿化其他地方和我們的債務的選擇。亞歷克斯，我們想要做的是了解年底的現金流，並根據未來一兩個季度這些現金流的實力評估我們所有的選擇。

And if I could just add to that, when she referred to options, it's real the options of what debt to pay down where to have debt. It's not necessarily she wasn't signaling to you that there are options of vast asset sales is really looking at today's market prices and the fact that we typically take working capital down in the second half of the year, what our options she strategically looking at the options for where do we do delever, how do we delever, not necessarily the source of cash for delevering.

如果我可以補充一點，當她提到選擇時，這確實是在哪裡償還債務的選擇。這並不一定是她沒有向你發出信號，表示有大量資產出售的選擇，她確實在考慮今天的市場價格，以及我們通常在下半年減少營運資本的事實，她戰略性地考慮了我們的選擇我們在哪裡去槓桿化、如何去槓桿化的選項，不一定是去槓桿化的現金來源。

I got you. That's helpful clarification. Thank you so much.

我接到你了。這是很有幫助的澄清。太感謝了。

Bill Peterson, JPMorgan.

比爾彼得森，摩根大通。

Hi, Bill and Molly, this is Bennett on for Bill Peterson. San Ciprián being are able to give any context, you said the very-high level to the types of parties that have indicated interest so far?

嗨，比爾和莫莉，我是比爾彼得森的貝內特。聖西普里安能夠提供任何背景信息，您說到目前為止表示興趣的政黨類型非常高嗎？

It spans the gamut of financial and strategics and non-traditional. So the expressions of interest were really from a variety of different types of parties. We cast a very wide net when we started this process. We wanted to make sure that there was -- that we really look at every opportunity to ensure the viability of this site. So when we looked at selling of the asset, I think we send out memorandums information, memorandums to 60 I was going to say over 50, thanks, 60 or so parties, and the half a dozen that produce an expression of interest were across those three areas.

它涵蓋了金融、戰略和非傳統的各個領域。因此，表達興趣的人確實來自各種不同類型的團體。當我們開始這個過程時，我們撒下了一張非常廣泛的網。我們希望確保我們真正抓住每一個機會來確保這個網站的生存能力。因此，當我們考慮出售資產時，我認為我們向60 個各方發出了備忘錄信息，我想說的是，超過50 個，謝謝，大約60 個各方，而產生興趣表達的六個各方都在這些方面。

Great. Thanks for that. And then one quick one on alumina. Wanted to get your thoughts on marginal cost support from Chinese refineries and whether this could be impacted over time, giving your points out potentially having to import more bauxite going forward?

偉大的。感謝那。然後快速進行一項關於氧化鋁的操作。想了解您對中國煉油廠邊際成本支援的看法，以及這是否會隨著時間的推移而受到影響，並提出您的觀點，未來可能需要進口更多鋁土礦？

So it's very -- it's obviously a very fluid situation. And my view in our latest thinking is that marginal cost, whether that's in China or outside of China, probably approximate close to $400 a ton. Now that will depend on where it is, and what the caustic prices assumptions is and the currencies, but it's probably close to that.

所以這顯然是一個非常不穩定的情況。在我們最新的想法中，我認為邊際成本，無論是在中國還是中國以外，可能接近每噸 400 美元。現在這將取決於它在哪裡，以及苛性價格假設是什麼和貨幣，但它可能接近這個值。

Understood. Thank you very much.

明白了。非常感謝。

Lucas Pipes, B. Riley.

派普斯 (Lucas Pipes)，B. 萊利 (B. Riley)。

Thank you very much, operator, good afternoon, everyone. My first question is on the cost side. So first on the vessel purchase in Brazil, the right way to think about it that it's about a $30 million annual cost saving. And then secondly, on slide 17, going back to the profitability improvement program and the [295], I think in your prepared remarks, you mentioned timing of when you went through the different buckets, it has been achieved kind of what percentage of achieved. But I wondered if you could maybe just speak to the [295] and what's the major components are that you're looking to realize? Thank you very much.

非常感謝接線員，大家下午好。我的第一個問題是關於成本方面的。首先，關於在巴西購買船舶，正確的思考方式是，每年可節省約 3,000 萬美元的成本。其次，在投影片 17 上，回到獲利能力改善計畫和 [295]，我認為在您準備好的發言中，您提到了當您經歷不同的階段時，已經實現了多少百分比。但我想知道您是否可以只談談 [295]，您希望了解的主要組成部分是什麼？非常感謝。

So first, the question on -- sorry I want to say (multiple speakers)

首先，問題是──對不起，我想說（多個發言者）

Anything certainly we call it Project Condor. It's on the vessels in Brazil.

我們當然稱之為「禿鷹計畫」。它在巴西的船上。

Yeah. So on the ship purchases in Brazil, you're right. It's just over $30 million a year and savings for that effort.

是的。所以關於巴西的船舶採購，你是對的。每年只需花費超過 3000 萬美元即可節省費用。

And before you go onto the next part of the question, I want to make sure that people understand we're not going into the global shipping business. This was an opportunity where our cost structure was just fundamentally too high due to the market situation down in Brazil. While we tried to address that through market negotiations, we weren't able to get there. And that's why we've made this this strategic investment in these four vessels. I don't want our investors, or sell side analysts thinking that we are more broadly going into the shipping business. We are not, this is, as I've described internally, this is almost like having a conveyor belt, but it just happens to be on the water. All right, so go ahead Molly.

在您繼續問題的下一部分之前，我想確保人們明白我們不會進入全球航運業務。這是一個機會，由於巴西市場情況低迷，我們的成本結構從根本上來說太高了。雖然我們試圖透過市場談判來解決這個問題，但我們未能做到這一點。這就是我們對這四艘船進行戰略投資的原因。我不希望我們的投資者或賣方分析師認為我們正在更廣泛地涉足航運業務。我們不是，正如我在內部描述的那樣，這幾乎就像有一條傳送帶，但它恰好在水面上。好吧，莫莉，繼續吧。

So on the improvement programs, a couple more points on the raw materials they aren't necessarily additional actions that we have to take. We are negotiating now and our purchase prices that we're seeing now are going to deliver the year-over-year improvement. Recall were on those lags and inventory. So the six months, in caustic and the three months on coke and pitch, so good line of sight to realize that with the contracts that we have in place now.

因此，在改進計劃中，關於原材料的更多要點並不一定是我們必須採取的額外行動。我們現在正在談判，我們現在看到的採購價格將實現同比改善。召回是關於那些滯後和庫存。因此，六個月的腐蝕劑和三個月的焦炭和瀝青，透過我們現在簽訂的合同，我們可以很好地認識到這一點。

As far as the productivity and competitiveness program, we have already identified list of hundreds of initiatives. They are being executed now. Internally we're tracking that against revised budget. Everyone across the company, all the budget managers have lost about 6% of our budgets. So they are adhering to those. And so that's how we are monitoring the $100 million our program there.

就生產力和競爭力計劃而言，我們已經確定了數百項措施的清單。他們現在正在被處決。在內部，我們正在根據修訂後的預算進行追蹤。公司的每個人、所有預算經理都損失了大約 6% 的預算。所以他們遵守這些。這就是我們監控 1 億美元項目的方式。

As far as Warrick, they hit about half of their run rate already, and that's with improved cost absorption after their restart. And they do still have a series of initiatives to implement their for additional productivity. And then remember with Warrick, we also had the $30 million of IRA funding that we are waiting a word on there.

就沃里克而言，他們的運轉率已經達到了一半左右，而且在重新啟動後成本吸收有所改善。他們仍然有一系列措施來實施以提高生產力。然後請記住，與 Warrick 一起，我們還擁有 3000 萬美元的 IRA 資金，我們正在等待消息。

On Alumar smelter, a similar story to work with them increasing their production, there cost absorption has already gotten about a third of their target, also improvement on the higher tons coming through. They are operating at just above 70% now. So we believe they're on track for the full year by the end of '25.

在 Alumar 冶煉廠，與他們合作增加產量的情況類似，成本吸收已經達到了目標的三分之一左右，而且產量也有所提高。他們現在的營運率略高於 70%。因此，我們相信到 25 年底，他們的全年業績將步入正軌。

And then Kwinana they are obviously completely down now. We are seeing -- some higher ramp down costs as well as higher initial holding costs. So for them they will -- they will get the full cost reduction, but it won't be until 2025. You'll see some minimal savings coming there in the second half of '24, but we won't hit that full run rate till '25.

然後奎納納（Kwinana）他們現在顯然已經完全崩潰了。我們看到—一些更高的下降成本以及更高的初始持有成本。因此，對他們來說，他們將獲得全面的成本削減，但要到 2025 年才能實現。 25。

Thank you very much for this. My second question is a clarification on the additional business considerations. You citing the unfavorable impact of higher alumina costs in the aluminum segment to the tune of $60 million. Is that over and above the usual sensitivity? Or how should we think about that $60 million? Thank you very much.

非常感謝您。我的第二個問題是對其他業務考量的澄清。您提到鋁業氧化鋁成本上漲的不利影響高達 6,000 萬美元。這是否超出了通常的敏感度？或者我們應該如何看待這 6000 萬美元？非常感謝。

So that $60 million is not within your sensitivities that's why we give that to you separately. So obviously, the higher alumina prices going to benefit us overall dramatically. But then we call out for you how much of that will show up in the aluminum segment as an additional cost.

因此，這 6000 萬美元不在您的敏感範圍內，因此我們將其單獨提供給您。顯然，較高的氧化鋁價格將使我們整體受益匪淺。但隨後我們會為您指出其中有多少將作為額外成本出現在鋁業。

But there's nothing operationally that would drive those at higher costs. It's really just the price sensitivity.

但營運上沒有什麼會導致成本上升。這實際上只是價格敏感度。

Just the price. Correct, just the price.

只是價格。沒錯，就是價格。

Just the flow through. And we only provide that for you because some people struggle with the modeling. And so it allows you to clearly understand what the alumina cost is in the aluminum business. In effect, Lucas that's a number that would show up on the quarterly bridge in effect for the segment.

只是流經而已。我們只為您提供這些，因為有些人在建模方面遇到困難。因此，它可以讓您清楚地了解鋁業務中的氧化鋁成本是多少。實際上，盧卡斯，這個數字將顯示在該細分市場的季度橋樑上。

Very good. I appreciate that clarification. Thank you and best of luck.

非常好。我很欣賞這項澄清。謝謝你，好運。

And this concludes our question and answer session. I would like to turn the conference back over to Mr. Oplinger for any closing remarks.

我們的問答環節到此結束。我想將會議轉回奧林格先生發表閉幕詞。

Thank you. Just a couple of closing remarks. As you can see from the results, we made a lot of progress in the quarter. We improved both the safety and the operational -- operations across the company. We're about to close on the Alumina Limited transaction on August 1, and we've already captured over half of the improvement from the improvement programs that we're anticipating for 2025. So overall, it was a busy quarter and we made a lot of progress. I'd like to thank you for joining our call. Molly, and I look forward to sharing further progress when we speak again in October.

謝謝。只是幾句結束語。從結果中可以看出，我們在本季取得了很大進展。我們改善了整個公司的安全和營運。我們即將於 8 月 1 日完成 Alumina Limited 交易，並且我們已經從我們預計 2025 年的改進計劃中獲得了一半以上的改進。了很多進展。我要感謝您加入我們的通話。莫莉和我期待著 10 月我們再次交談時分享進一步的進展。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

會議現已結束。感謝您參加今天的演講。此時您可以斷開線路。