Century Aluminum Co (CENX) 2024 Q2 法說會逐字稿

Good afternoon. Thank you for attending today's Century Aluminum Company second quarter 2024 earnings conference call. My name is Forum, and I will be your moderator for today's call. (Operator Instructions)

午安.感謝您參加今天的世紀鋁業公司 2024 年第二季財報電話會議。我的名字是論壇，我將擔任今天電話會議的主持人。（操作員說明）

It's now my pleasure to pass the conference over to our host, Ryan Crawford with Century Aluminum. Mr. Crawford, you may proceed.

現在我很高興將會議交給我們的東道主、世紀鋁業的 Ryan Crawford。克勞福德先生，您可以繼續了。

Thank you, operator. Good afternoon, everyone, and welcome to the conference call. I'm joined here today by Jesse Gary, Century's President and Chief Executive Officer; Jerry Bialek, Executive Vice President and Chief Financial Officer; and Peter Trpkovski, Senior Vice President of Finance and Treasurer.

謝謝你，接線生。大家下午好，歡迎參加電話會議。今天，世紀公司總裁兼執行長傑西·加里 (Jesse Gary) 也加入了我的行列。 Jerry Bialek，執行副總裁兼財務長；財務資深副總裁兼財務長 Peter Trpkovski。

After our prepared comments, we will take your questions. As a reminder, today's presentation is available on our website at www.centuryaluminum.com. We use our website as a means of disclosing material information about the company and for complying with Regulation FD.

在我們準備好意見後，我們將回答您的問題。請注意，今天的簡報可在我們的網站 www. centuryaluminum.com 上取得。我們使用我們的網站作為揭露有關公司的重要資訊並遵守 FD 法規的一種方式。

Turning to slide 1, please take a moment to review the cautionary statements shown here with respect to forward-looking statements and non-gap financial measures contained in today's discussion.

轉向投影片 1，請花點時間回顧此處顯示的有關今天討論中包含的前瞻性陳述和非缺口財務指標的警告性陳述。

And with that, I'll hand the call to Jesse.

這樣，我就把電話轉給傑西。

Thanks, Ryan, and thanks to everyone for joining. I'll start the call today by reviewing our second quarter performance and providing some thoughts on the current market and environment, before turning it over to Jerry for the detailed financial results and then taking your questions.

謝謝瑞安，也謝謝大家的加入。我將在今天的電話會議開始時回顧我們第二季度的業績，並提供對當前市場和環境的一些想法，然後將其轉交給傑里以獲取詳細的財務業績，然後回答您的問題。

Our team produced excellent results in the second quarter with adjusted EBITDA of $34 million. Jerry will give you the full details here but we are really pleased with the continued strong operating performance across our plants.

我們的團隊在第二季度取得了出色的業績，調整後的 EBITDA 為 3,400 萬美元。傑裡（Jerry）將在這裡向您提供完整的詳細信息，但我們對我們工廠持續強勁的運營業績感到非常滿意。

Overall, improving aluminum prices, both at the LME and regional premium level, drove increased profitability in the quarter and will continue to benefit our third quarter financial performance as the strong LME prices observed in the second quarter begin to roll through our lagged contractual pricing and financial results. We also reduced our outstanding debt by nearly $50 million in the quarter driving strong liquidity of over $340 million.

總體而言，倫敦金屬交易所和區域溢價水平的鋁價上漲推動了本季盈利能力的提高，並將繼續有利於我們第三季度的財務業績，因為第二季度觀察到的強勁倫敦金屬交易所價格開始覆蓋我們滯後的合約定價和財務表現。本季我們也減少了近 5,000 萬美元的未償債務，推動了超過 3.4 億美元的強勁流動性。

Turning to slide 5, aluminum prices rose during the second quarter as stronger global demand, especially in China through both LME and regional premiums higher. Demand is strongest in areas relating to the green economy, especially in solar energy and other renewable and energy transmission applications. More recently, aluminum prices have retreated as broad macro concerns have weighed on markets.

轉向投影片 5，隨著全球需求走強，尤其是中國的 LME 和地區溢價走高，鋁價在第二季上漲。與綠色經濟相關的領域的需求最為強勁，特別是在太陽能和其他再生能源和能源傳輸應用領域。最近，由於廣泛的宏觀擔憂給市場帶來壓力，鋁價有所回落。

Over the longer term, we are confident that global trends towards electrification and light weighting will continue to drive increased demand for aluminum. When paired with inventory levels that remain near historic lows and little expected aluminum supply growth over the next several years, it is easy to see why aluminum markets remain in steep contango and we continue to believe our assets are well placed to benefit from short aluminum markets in the US and Europe.

從長遠來看，我們相信全球電氣化和輕量化趨勢將繼續推動鋁需求的成長。與仍接近歷史低點的庫存水平以及未來幾年鋁供應增長預期較小的情況相結合，很容易看出為什麼鋁市場仍處於陡峭的期貨升水狀態，並且我們仍然相信我們的資產處於有利地位，可以從空頭鋁市場中受益在美國和歐洲。

Turning to alumina, the API rose significantly during the quarter with Q2 prices averaging 19% higher than Q1 levels and reaching over $500 per ton in June. These prices reflect a continued tight market for alumina as production issues in Australia and China led to a lack of available spot cargoes during the quarter and drove prices higher. Alumina prices have remained near their high so far in the third quarter as supply remains constrained.

談到氧化鋁，API 在本季大幅上漲，第二季價格平均比第一季高 19%，6 月達到每噸 500 美元以上。這些價格反映了氧化鋁市場持續緊張，因為澳洲和中國的生產問題導致本季可用現貨貨物缺乏並推高價格。由於供應仍然有限，氧化鋁價格仍接近第三季的高點。

Given the constraint alumina market, we were very pleased with Jamalco strong operational performance during the second quarter. As previously noted, our Jamalco operations make it roughly net neutral to API pricing as the company when combined with our long-term commercial contracts that are linked to the price of aluminum. Jamalco produce its targeted 1.2 million tons per annum production rate in the second quarter.

鑑於氧化鋁市場的限制，我們對 Jamalco 第二季強勁的營運表現感到非常滿意。如前所述，與我們與鋁價掛鉤的長期商業合約相結合，我們的 Jamalco 業務使其對 API 定價大致呈淨中性。Jamalco 第二季的年產量目標為 120 萬噸。

Over the longer term while we expect global alumina prices to largely follow aluminum prices, we suspect that alumina will continue to remain exposed to supply driven volatility as refineries without a dedicated source of bauxite remain exposed to the Sebree and bauxite market and supply from difficult geopolitical locations.

從長遠來看，雖然我們預計全球氧化鋁價格將在很大程度上追隨鋁價，但我們懷疑氧化鋁將繼續面臨供應驅動的波動，因為沒有專門鋁土礦來源的煉油廠仍然面臨Sebree 和鋁土礦市場以及困難的地緣政治供應。

In addition, Chinese regulators announced earlier this year, the Chinese alumina refineries would be subject to more stringent energy and emission efficiency standards. We believe these actions will act to constrain Chinese alumina production growth over the near to medium-term.

此外，中國監管機構今年稍早宣布，中國氧化鋁精煉廠將受到更嚴格的能源和排放效率標準的約束。我們相信這些行動將在中短期內限制中國氧化鋁產量的成長。

Turning to the global trading environment, the US and EU governments each took additional actions towards nearshoring industrial and strategic mineral production during the quarter that will impact global aluminum flows and supply into our key markets in the US and Europe.

談到全球貿易環境，美國和歐盟政府在本季度各自針對近岸工業和戰略礦產採取了額外行動，這將影響全球鋁的流動和美國和歐洲主要市場的供應。

In May, I joined President Biden at the White House, where he announced an expansion of Section 301 tariffs on billions of dollars of Chinese goods including many aluminum products. Similarly in June, the EU announced additional tariffs of up to 38% on Chinese electric vehicles.

5 月，我在白宮與拜登總統會面，他宣布擴大對包括許多鋁產品在內的數十億美元中國商品徵收 301 條款關稅。同樣，6月，歐盟宣布對中國電動車加徵高達38%的關稅。

In July, the US announced a new smelted and cast requirement that ensures that aluminum that was smelted and cast in Russia, China and certain other countries cannot be transformed into downstream aluminum products in Mexico in order to avoid the 10% Section 232 duties.

今年7月，美國宣布了一項新的熔煉和鑄造要求，確保在俄羅斯、中國和某些其他國家熔煉和鑄造的鋁不能在墨西哥轉化為下游鋁產品，以避免徵收10%的232關稅。

Finally, as we anticipated on our last call, in May, the US Department of Commerce imposed significant anti-dumping duties on aluminum extrusions entering the US from 14 countries, including China, Mexico, Columbia, and Vietnam. The duties which went into effect immediately have started to support domestic extrusion demand and correspondingly domestic bill at demand.

最後，正如我們在 5 月上次電話會議中所預期的那樣，美國商務部對從中國、墨西哥、哥倫比亞和越南等 14 個國家進入美國的鋁型材徵收高額反傾銷稅。立即生效的關稅已開始支援國內擠壓需求以及相應的國內按需帳單。

As a reminder, we did hold back some second half bill at volumes for spot sales this year, in anticipation of improving US market conditions in a more constructive pricing environment. We started to see some uptick here on the demand side and continue to expect this will be positive for US bill up pricing over the balance of the year and into 2025.

提醒一下，我們確實推遲了今年下半年的部分現貨銷售量，預計美國市場狀況將在更具建設性的定價環境中得到改善。我們開始看到需求方面出現一些上升，並繼續預計這將對今年剩餘時間和 2025 年美國的帳單定價產生積極影響。

These trade actions, especially when viewed together with the substantial trade measures already in place in the US and EU markets, including the Section 232 tariffs and the EU carbon border adjusted mechanism and other existing aluminum tariffs, show the significant value of Century US and EU based production footprint. This allows us to provide short supply chains and better service to our customers, but to also benefit from better pricing environments in these markets.

這些貿易行動，特別是與美國和歐盟市場已經實施的實質貿易措施（包括232條款關稅和歐盟碳邊境調整機制以及其他現有鋁關稅）一起來看，顯示了世紀美國和歐盟的重要價值基於生產足跡。這使我們能夠為客戶提供較短的供應鏈和更好的服務，同時也受益於這些市場更好的定價環境。

Turning to operations, we saw strong and stable performance across our operating locations in the second quarter. In Iceland, as expected, the previously announced 20 megawatt energy curtailment was lifted during the second quarter and Grundartangi returned to full production by quarter end. Our team did an excellent job restoring production quickly and efficiently once the power of curtailment ended.

談到運營，我們在第二季度看到我們各個運營地點的表現強勁且穩定。在冰島，正如預期的那樣，先前宣布的 20 兆瓦限電措施在第二季度取消，Grundartangi 在季度末恢復全面生產。限電結束後，我們的團隊出色地快速有效地恢復了生產。

As we have seen that many smelters around the world, restoring production following a curtailment is not easy. I'd like to congratulate the Grundartangi team on a job well done. We expect normal production levels from Grundartangi in Q3.

正如我們所見，世界各地的許多冶煉廠在減產後恢復生產並不容易。我要祝賀 Grundartangi 團隊所做的出色工作。我們預計第三季 Grundartangi 的生產水準將保持正常。

At the Grundartangi cast house, we continue to produce trials and to qualify our new natural green billets with our key customers over Q2 and Q3. We remain very excited to begin supplying this much needed natural low carbon billet into the European market.

在 Grundartangi 鑄造廠，我們在第二季和第三季繼續與我們的主要客戶進行試驗並驗證我們的新型天然綠色坯料的品質。我們仍然非常高興開始向歐洲市場供應這種急需的天然低碳方坯。

In the US, energy prices continue to be constructive, driven by natural gas prices near $2. Operations at Sebree and Mt. Holly remain stable, which is a testament to our operating teams during the very hot summer months.

在美國，受天然氣價格接近 2 美元的推動，能源價格持續保持樂觀。Sebree 和 Mt. Holly 的營運保持穩定，這證明了我們的營運團隊在炎熱的夏季的表現。

At Jamalco, as previously announced, we were unfortunately impacted by Hurricane Beryl when the Category four storm made landfall near our port facilities at Rocky Point and Clarendon Parish in early July. The hurricane brought heavy storm surge, significant rain and high winds to both our operations and surrounding communities, and we are working with local officials and other parishes to assist those in need.

正如之前所宣布的，在 Jamalco，我們不幸受到颶風 Beryl 的影響，當時四級風暴於 7 月初在我們位於 Rocky Point 和 Clarendon Parish 的港口設施附近登陸。颶風為我們的業務和周邊社區帶來了嚴重的風暴潮、大雨和強風，我們正在與當地官員和其他教區合作，為有需要的人提供幫助。

While we were fortunate to not suffer any significant injuries or damage to the refinery operations, we did temporarily curtail operations of the refinery as part of our standard hurricane preparation procedures. So Jamalco team did a remarkable job restoring operations once the storm had passed and the refinery had returned to full production levels.

雖然我們很幸運沒有遭受任何重大傷害或煉油廠運作受損，但作為我們標準颶風準備程序的一部分，我們確實暫時減少了煉油廠的運作。因此，一旦風暴過去，煉油廠恢復到全面生產水平，Jamalco 團隊就恢復營運做出了出色的工作。

In addition, while Jamalco's production facilities escaped significant damage, the port facility was impacted by the storm, where a portion of the Alumina conveyor was damaged and its undergoing repair. While those repairs were being completed, Jamalco has secured alternative port arrangements to ensure continued Alumina shipments to its customers.

此外，雖然 Jamalco 的生產設施沒有遭受重大損壞，但港口設施受到了風暴的影響，部分氧化鋁輸送機遭到損壞，目前正在維修中。在這些維修工作完成的同時，Jamalco 已獲得替代港口安排，以確保繼續向客戶運送氧化鋁。

Finally, we made good progress on our growth projects during the second quarter. While we don't have any significant updates at this time, we continue to work diligently on evaluating each and would expect to be able to provide a further update on our third quarter call.

最後，我們的成長項目在第二季度取得了良好進展。雖然我們目前沒有任何重大更新，但我們將繼續努力評估每項更新，並期望能夠在第三季電話會議上提供進一步的更新。

Gerry will now walk you through the quarter and our Q3 outlook.

格里現在將向您介紹本季和我們對第三季的展望。

Thank you, Jesse. Let's turn to slide 7 to review second quarter results. On a consolidated basis, second quarter global shipments were approximately 168,000 tons, slightly lower than last quarter due to typical finding fluctuations. Realized prices increased versus prior quarter, driven by higher metal prices and regional delivery premiums resulting in net sales of five $61 million, a 15% increase sequentially.

謝謝你，傑西。讓我們翻到投影片 7 回顧第二季的業績。綜合來看，第二季全球出貨量約為 168,000 噸，由於典型的波動，略低於上季。受金屬價格上漲和區域交付溢價的推動，實際價格較上一季上漲，導致淨銷售額達到 5 6,100 萬美元，環比增長 15%。

Looking at Q2 operating results, adjusted EBITDA attributable to Century was $34 million. This was a sequential increase of $9 million, mainly driven by higher realized metal prices and regional premiums. Adjusted net income was $1 million or $0.01 per share. The main adjusting items were add-backs of $4 million for share based compensation and $2 million for the unrealized impact of forward contracts. Partially offset by a $2 million deduction per lower of cost or net realizable value on inventory.

從第二季的經營業績來看，世紀公司調整後的 EBITDA 為 3,400 萬美元。環比增加了 900 萬美元，主要是由於實現金屬價格和地區溢價上漲。調整後淨利為 100 萬美元，即每股 0.01 美元。主要調整項目是 400 萬美元的股票薪酬回補和 200 萬美元的遠期合約未實現影響回補。存貨成本或變動現淨值每降低 200 萬美元，則部分抵銷。

We improved liquidity to $343 million by the end of the quarter. This is the strongest liquidity position in nearly a decade and consists of $41 million in cash and $302 million available on our credit facility.

到本季末，我們將流動性提高至 3.43 億美元。這是近十年來最強勁的流動性狀況，包括 4,100 萬美元現金和 3.02 億美元可用信貸安排。

Turning to Slide 8 to explain second quarter sequential improvement in adjusted EBITDA. In total adjusted EBITDA for the second quarter was $34 million. Realized LME of $2,288 per ton was up $98 versus prior quarter, while realized US Midwest premium of $416 per ton was up $7 and European delivery premium of $284 per ton was up $61. Together higher metal prices and regional premiums contributed an incremental $22 million compared with the prior quarter.

轉投投影片 8，解釋第二季調整後 EBITDA 的環比改善。第二季調整後 EBITDA 總額為 3,400 萬美元。LME 實現每噸 2,288 美元的交割溢價較上一季上漲 98 美元，美國中西部實現的溢價為每噸 416 美元，上漲 7 美元，歐洲交割溢價為每噸 284 美元，上漲 61 美元。與上一季相比，較高的金屬價格和地區溢價合計貢獻了 2,200 萬美元的增量。

Aluminum production costs were mixed as higher LME market prices increased power costs for our Iceland smelter by $4 million. As a reminder, the power expense for our Iceland smelter is mostly linked to LME prices. Realized coke prices decreased $31 per ton and realized pitch prices decreased $35 per ton, together other raw material prices improved by $3 million helping offset the power headwind. The lower shipment volume was a $7 million headwind to adjusted EBITDA.

鋁生產成本參差不齊，因為 LME 市場價格上漲使我們冰島冶煉廠的電力成本增加了 400 萬美元。提醒一下，我們冰島冶煉廠的電力費用主要與 LME 價格掛鉤。焦炭實際價格下降 31 美元/噸，瀝青實際價格下降 35 美元/噸，其他原料價格上漲 300 萬美元，幫助抵消了電力阻力。出貨量下降對調整後的 EBITDA 造成 700 萬美元的不利影響。

The decreased volume was due to normal fluctuations in shipment timing. We expect these shipments in Q3 and therefore no change to our full year buying expectations. As discussed last quarter, we completed the deferred potlining activities related to the ice and power curtailment. These activities drove an incremental $5 million of expense in Q2 that will not repeat.

數量減少是由於發貨時間的正常波動造成的。我們預計第三季會有這些出貨量，因此我們全年的購買預期不會改變。如上季所討論的，我們完成了與冰和限電相關的延期罐襯活動。這些活動在第二季增加了 500 萬美元的支出，這種情況不會重複。

With that, let's turn to slide 9 for a look at cash flow. We began the quarter with $93 million in cash. Adjusted EBITDA contributed $34 million. Capital expenditures totaled $16 million, $11 million of which relates to the completion of the Grundartangi Casthouse project. We reduced short term borrowings on our revolving credit facilities with both our US and Iceland Revolvers paid down to zero balance at quarter end and we experienced normal working capital flows. At the end of Q2, we had $41 million in cash.

接下來，讓我們轉到投影片 9 來看看現金流。本季初我們擁有 9,300 萬美元現金。調整後 EBITDA 貢獻 3,400 萬美元。資本支出總計 1600 萬美元，其中 1100 萬美元用於完成 Grundartangi Casthouse 專案。我們減少了循環信貸安排的短期借款，我們的美國和冰島左輪手槍在季度末都清償至零餘額，我們經歷了正常的營運資本流動。第二季末，我們擁有 4,100 萬美元現金。

Let's turn to slide 10 and I'll give you some insight into our expectations for the third quarter. For Q3, the lagged LME of $2440 per ton is expected to be up about $153 versus Q2 realized prices. The Q3 lagged US Midwest Premium is forecast to be $425 per ton, up $10. The European Delivery premium is expected at $320 per ton or of about $35 per ton versus the second quarter.

讓我們轉向投影片 10，我將向您介紹我們對第三季的預期。第三季度，滯後的 LME 價格為每噸 2,440 美元，預計比第二季的實際價格上漲約 153 美元。第三季落後的美國中西部升水預計為每噸 425 美元，上漲 10 美元。歐洲交割溢價預計為每噸 320 美元，較第二季每噸上漲約 35 美元。

Taken together, the LME and delivery premium changes are expected to increase Q3 EBITDA by approximately $30 to $40 million versus Q2 levels. We expect power prices to be a $5 million headwind. Collectively, we expect our key raw materials to be about flat. The previously discussed timing of shipment volume will be a quarter over quarter tailwind of approximately $10 million.

總的來說，LME 和交割溢價的變化預計將使第三季 EBITDA 較第二季增加約 3,000 至 4,000 萬美元。我們預計電價將帶來 500 萬美元的阻力。總的來說，我們預計我們的主要原材料將基本持平。先前討論的出貨量時間將比上一季增加約 1000 萬美元。

Finally, we expect a headwind of about $5 million related to a summer seasonality and administrative expenses, as we continue to progress on our growth projects. All factors considered, our outlook for Q3 adjusted EBITDA is expected to be in a range of between $65 million to $75 million. The financial impact of Hurricane Beryl will be adjusted in results and is reflected as such in our Q3 outlook.

最後，隨著我們繼續推進成長項目，我們預計與夏季季節性和管理費用相關的阻力約為 500 萬美元。考慮到所有因素，我們對第三季調整後 EBITDA 的展望預計將在 6,500 萬美元至 7,500 萬美元之間。颶風貝裡爾的財務影響將在結果中進行調整，並反映在我們的第三季展望中。

We look forward to your questions today and we'll now turn the call over to the operator.

我們期待您今天​​提出問題，現在我們將把電話轉給接線員。

(Operator Instructions)

（操作員說明）

Lucas Pipes, B. Riley Securities.

盧卡斯‧派普斯 (Lucas Pipes)，B. 萊利證券 (Riley Securities)。

Thank you very much, operator. Good afternoon, everyone. Jesse, I wanted to get your perspective on the power markets. There's been a lot of excitement out there on the need for power in AI. We saw very constructive PJM auction last week. You are long power at hospital with about 500 megawatts and so, I wondered how you think about the optionality around that power infrastructure today and if there has been any interest from third parties. Thank you very much.

非常感謝您，接線生。大家下午好。傑西，我想了解您對電力市場的看法。人們對人工智慧的強大需求感到非常興奮。上週我們看到了非常有建設性的 PJM 拍賣。您在醫院擁有約 500 兆瓦的長期電力，因此，我想知道您如何看待當今電力基礎設施的可選性以及第三方是否有任何興趣。非常感謝。

Yes, hi Lucas. Thanks for the question. Obviously, we as you know, we're constantly looking at the power markets, both here in the US and Europe and really around the world, watching for trends and what's going on out there. Obviously, we are aware of a lot of the storyline around the AI build out and really quite substantial estimates of energy required to power all of that.

是的，嗨盧卡斯。謝謝你的提問。顯然，如您所知，我們一直在關注美國和歐洲以及世界各地的電力市場，並關注趨勢和正在發生的事情。顯然，我們知道許多圍繞著人工智慧構建的故事情節，並且對驅動所有這些所需的能量進行了相當大的估計。

With our own assets of course, we're always looking at all alternatives and especially with our curtailed assets in order to figure out how we maximize value. And so I guess what I would just say with Hawesville, we continue to think it's a great adoption on higher aluminum prices in the future. But in the end, we'll maximize value of that asset and whatever form that may come in is what we'll pursue.

當然，對於我們自己的資產，我們總是在尋找所有替代方案，特別是對於我們縮減的資產，以便找出如何最大化價值。所以我想我要對霍斯維爾說的是，我們仍然認為這是未來鋁價上漲的一個很好的採用。但最終，我們將最大化該資產的價值，無論何種形式都是我們所追求的。

Jesse, I appreciate that color. That's helpful. Thank you. I'll follow up on 45X. It's been pretty quiet in terms of kind of incremental guidance from treasury. One, anything that you might be able to share at this point in terms of a timeline for additional guidance? And then two, there has been increased attention to the new smelter development and are you able to move forward with that development in the absence of kind of full clarification from treasury on what is going to be included in 45X? Thank you very much.

傑西，我很喜歡那個顏色。這很有幫助。謝謝。我會跟進45X。就財政部的增量指導而言，情況相當安靜。第一，您目前可以在時間表方面分享什麼以獲得更多指導嗎？第二，人們對新冶煉廠的開發越來越關注，在財政部沒有就 45X 中將包含哪些內容進行全面澄清的情況下，您是否能夠推進該開發？非常感謝。

Sure. Thanks, Lucas. Yes as you might imagine, we continued to engage with the administration on 45X and in many of the same ways that we talked about on previous calls. You know we think both the timing of the ultimate final regulations as well as the inclusion of raw materials and the ultimate calculations are very important for the US industry.

當然。謝謝，盧卡斯。是的，正如您可能想像的那樣，我們繼續與 45X 的管理部門進行接觸，其方式與我們在之前的電話中討論過的許多方式相同。你知道，我們認為最終法規的推出時間以及原材料的納入和最終計算對於美國工業來說都非常重要。

And so we've continued to have those discussions. I don't really have an updated timeline for you at this time. But I would just say we continue to be very engaged and we're very thankful from the administration for their continued engagement on this matter. I think everyone recognizes the importance of the aluminum industry in the United States and moving forward with that in mind.

所以我們繼續進行這些討論。目前我還沒有為您提供更新的時間表。但我只想說，我們繼續積極參與，我們非常感謝政府對此事的持續參與。我認為每個人都認識到美國鋁業的重要性，並牢記這一點向前邁進。

All right. We'll stay tuned. Jesse, I'll try to squeeze one last one in with the with the Mt. Holly restart of the last 25%. Can you speak a little bit to the margin profile of those incremental volumes? Would those be kind of above below in line with your current EBITDA margin profile? Thank you very much.

好的。我們將繼續關注。傑西，我會盡力在最後 25% 的 Mt. Holly 重新啟動時爭取最後一搏。您能談談這些增量的利潤概況嗎？上面的這些是否符合您目前的 EBITDA 利潤率狀況？非常感謝。

Sure. Good question, Lucas. And as I mentioned in my prepared remarks, we continue to do work on that project and we continue to monitor macro conditions as well and put all of those things together in terms of looking at the timing of that restart.

當然。好問題，盧卡斯。正如我在準備好的演講中提到的，我們將繼續進行該專案的工作，並繼續監測宏觀狀況，並將所有這些因素放在一起，以考慮重啟的時間。

But to your specific question on margins as we probably talked about in the past those last tons those incremental tons out of smelter are always the most profitable tons. If you continue to spread what are really compared to other industries pretty large fixed costs over those incremental tons and get the benefit from a margin perspective. So as I said in the past it's really a project we would like to do. And it's one that we continue to get ready for and when the time is right we remain confident in our ability to execute that.

但對於你關於利潤率的具體問題，正如我們過去可能談到的那樣，從冶煉廠出來的最後噸數總是最賺錢的噸數。如果你繼續將與其他行業相比真正的固定成本分攤到這些增量噸上，並從利潤角度獲得收益。正如我過去所說，這確實是我們想做的一個專案。我們將繼續為此做好準備，當時機成熟時，我們對執行這一目標的能力仍然充滿信心。

Jesse, I appreciate the call. I'll turn it over for now. All the best of luck.

傑西，我很感激你的來電。我暫時把它翻過來。祝一切順利。

Thanks, Lucas.

謝謝，盧卡斯。

Thank you for your question.

謝謝你的提問。

Katja Jancic, BMO. Katja.

Katja Jancic，BMO。卡佳。

Hi, thank you for taking my questions. Maybe starting on Jamalco there were some reports that the refinery declared force majeure. Can you talk a bit more if that is correct and why would that be if the volumes or the shipments are normal?

你好，謝謝你回答我的問題。也許從 Jamalco 開始，有一些報導稱煉油廠宣布遭遇不可抗力。如果這是正確的，您能多談談嗎？

Yes, that is correct Katja. And of course you declare force majeure for a variety of reasons. As we said our main port of export which is Rocky Point is out of commission right now and we are running through an alternative port right now. And so the force majeure really related to that setup going forward. But as I said the plant is back to full production and we continue to have those alternative port solutions in place and to export Alumina off island.

是的，這是正確的卡佳。當然，您出於各種原因宣布不可抗力。正如我們所說，我們的主要出口港口洛基角目前已停止運行，我們現在正在通過另一個港口運行。因此，不可抗力確實與未來的設定有關。但正如我所說，該工廠已恢復全面生產，我們將繼續採用替代港口解決方案，並將氧化鋁出口到島外。

So shipments are going as normal right now?

那麼現在出貨情況正常嗎？

Yes, we don't expect a material impact to our results or to not with results going forward. You can't say they're exactly as normal when they're running out of an alternative port but we're continuing to make exports from the island.

是的，我們預計不會對我們的業績產生重大影響，或不會對未來的業績產生重大影響。當它們耗盡替代港口時，你不能說它們完全正常，但我們仍在繼續從島嶼進行出口。

Okay. And then as a follow up to Lucas' question about hospital. There's obviously there's a lot of questions about the power and have you looked at if that would be an option from a perspective? Would the utility or your agreement with the utility allow that?

好的。然後作為盧卡斯關於醫院問題的後續行動。顯然，關於權力存在著許多問題，您是否從某個角度考慮過這是否是一個選擇？公用事業公司或您與公用事業公司的協議是否允許這樣做？

Yes, I do might recall Katja both Kentucky plants have fairly unique energy arrangements where through a variety of contractual ranges we have access to what is essentially the wholesale markets in MISO. And so that's been a very advantageous arrangement for us and sporades with a lot of flexibility over time. And so if we look at both the future of possible from a variety perspectives we continue to think that flexibility will be advantage for us no matter what the outcome ultimately is.

是的，我可能記得 Katja 肯塔基州的兩家工廠都有相當獨特的能源安排，透過各種合約範圍，我們可以進入 MISO 的批發市場。因此，這對我們和零散的人來說是一個非常有利的安排，隨著時間的推移，具有很大的靈活性。因此，如果我們從不同的角度看待未來的可能性，我們仍然認為，無論最終結果如何，靈活性對我們來說都是優勢。

Okay. Thank you very much.

好的。非常感謝。

Thanks, Katja.

謝謝，卡佳。

Thank you for your question.

謝謝你的提問。

Timna Tanners, Wolf Research.

蒂姆納·坦納斯，沃爾夫研究中心。

Yeah. Thank you, and good afternoon. Why don't you ask a little bit more about the situation at Jamalco? Is it entirely benign, like doesn’t have impact on Q3, and is there any insurance collectible on an issue like this? I’m just wondering a little more color.

是的。謝謝你，下午好。為什麼不多問一下 Jamalco 的情況呢？它是否完全是良性的，例如對第三季度沒有影響，對於這樣的問題是否有任何保險可收回？我只是想多一點顏色。

Sure, yeah. I mean, we were definitely impacted, right? That's what we said in the press release and that's what we've said on this phone call. As we said, a portion of the alumina conveyed at the port was blown away. At the plant itself, we really haven’t had any impact other than sort of taking the plant down as part of our hurricane preparations and then bringing it back up. But, like I said, we're back at full production today.

當然，是的。我的意思是，我們肯定受到了影響，對吧？這就是我們在新聞稿中所說的，也是我們在這次電話中所說的。正如我們所說，港口輸送的一部分氧化鋁被吹走了。對於工廠本身來說，除了作為颶風準備工作的一部分而將工廠拆除然後又恢復起來之外，我們確實沒有產生任何影響。但是，正如我所說，我們今天已恢復全面生產。

So, while we, of course, would've preferred that the hurricane skirted the island to the south more than it did, I think the team has really done a good job making it work while we get the repairs done at our port at Rocky Point and sort of making these alternative shipping arrangements work. There is, of course, some impact. We lost some volume while we took the plant down for a few days and while we brought it back up. But it’s really not material overall to our financial results.

因此，雖然我們當然更希望颶風更多地繞過島嶼南部，但我認為，在我們在洛基港口進行維修工作時，團隊確實做得很好，使其發揮作用使這些替代運輸安排發揮作用的要點和種類。當然，有一些影響。當我們將工廠關閉幾天並恢復生產時，我們損失了一些產量。但總體而言，這對我們的財務表現並不重要。

Okay. Thank you for that. Back to Mt. Holly, is it fair to say that if we're here past the middle of the year and you're still mulling it over, that you probably wouldn’t see a restart imminently? Or can you give us a little bit more color about what you're looking for to make that decision?

好的。謝謝你。回到 Mt. Holly，可以公平地說，如果我們已經過了年中而你還在考慮這個問題，你可能不會立即看到重啟嗎？或者您能否提供我們更多關於您做出決定所需的資訊？

Yeah. So, as with any restart anywhere in the world, we look at a variety of factors, whether the market has come to that volume at the time, what the return profile is on the CapEx that would go in to enable the restart, what global aluminum prices are, what the Midwest premium is, what value-added premiums are. And so it's really a multivariable analysis. And what we've been focused on is just bringing down the time to restart once we do make that decision.

是的。因此，與世界任何地方的重啟一樣，我們會考慮多種因素，包括當時市場是否達到了這個交易量、用於重啟的資本支出的回報率、全球範圍內的情況等。西部溢價是多少，增值溢價是多少。所以這其實是一個多變量分析。我們一直關注的只是在做出決定後縮短重新啟動的時間。

And so, we talked on previous calls about shortening supply chains for things we need, making sure we can get the materials, making sure we have the people, and making sure we have all of those things that we've been working on over the past few months. And then, when the time's right, we'll be ready to act. But I think, as I said on the last call, no matter what the decision is, I don’t think you’ll see a lot of CapEx requirements from us on that project in 2024.

因此，我們在之前的電話會議中談到了縮短我們所需物品的供應鏈，確保我們能夠獲得材料，確保我們擁有人員，並確保我們擁有我們一直在努力的所有這些事情。然後，當時機成熟時，我們將準備採取行動。但我認為，正如我在上次電話會議上所說，無論決定是什麼，我認為您不會在 2024 年看到我們對該專案的大量資本支出要求。

Got it. Thanks. And if I could just ask one high-level question, I’m just curious about your thinking on the broader aluminum markets. I know you had some prepared remarks on this, but it’s been really baffling that aluminum goes up and straight back down, while aluminum continues to march forward.

知道了。謝謝。如果我可以問一個高層次的問題，我只是好奇您對更廣泛的鋁市場的看法。我知道您對此有一些準備好的評論，但令人困惑的是，鋁價上漲然後直線下跌，而鋁價卻繼續前進。

And it’s a great thing that you have the Jamalco as a hedge now, but I mean, how sustainable is this or what have we seen in the past about how long this lasts? If I recall, it’s not usually that long, but I’m just wondering if there could be any action to see a change in the dynamic here that’s so unusual.

現在有 Jamalco 作為對沖是件好事，但我的意思是，這種情況的可持續性如何，或者我們過去看到這種情況會持續多久？如果我沒記錯的話，通常不會那麼長，但我只是想知道是否可以採取任何行動來改變這裡如此不尋常的動態。

Yeah. It’s a good point. We haven’t seen this relatively high alumina price to aluminum price, which is somewhere in the mid-20% today on what we call an LME percentage basis. And so, we do think that should be supportive of the aluminum price from here. And the shortage in the aluminum market is quite real today.

是的。這是一個很好的觀點。我們還沒有看到如此相對較高的氧化鋁價格與鋁價的比值，以我們所謂的 LME 百分比計算，目前的鋁價約為 20% 左右。因此，我們確實認為這應該會支撐鋁價。如今鋁市場的短缺是相當真實的。

It is quite tight out there, and that’s really what’s been driving up the price, and that’s for some structural reasons. We’ve seen shutdowns in Australia. We’ve seen increasing regulation of alumina production in China. And so, the market is relatively tight for alumina.

市場供應非常緊張，而這正是推高價格的真正原因，而且這是出於某些結構性原因。我們已經看到澳大利亞關閉了。我們看到中國對氧化鋁生產的監管日益加強。因此，氧化鋁市場相對緊張。

And over time, as I said, we’re in the mid-20% now in the relationship of alumina to aluminum. Traditionally, that’s more in the mid-teens. So, it really is quite a high relationship and really should be supportive of the aluminum price from here.

正如我所說，隨著時間的推移，我們現在的氧化鋁與鋁的關係處於 20% 的中間位置。傳統上，這種情況發生在十幾歲左右。因此，這確實是一個相當高的關係，並且確實應該從這裡支撐鋁價。

Okay. That’s it for me. Thanks for the thoughts.

好的。我就是這樣。謝謝你的想法。

Great.

偉大的。

Thanks, Timna.

謝謝，蒂姆納。

Thank you for your question. There are no questions waiting at this time, so I will pass back for any closing remarks. Thank you.

謝謝你的提問。目前沒有問題，所以我將回覆大家發表結束語。謝謝。

Thanks, everybody, for joining the call.

謝謝大家加入通話。

This concludes today's Century Aluminum Company's second quarter 2024 earnings conference call. Thank you for your participation. You may now disconnect your lines.

世紀鋁業公司今天的 2024 年第二季財報電話會議到此結束。感謝您的參與。現在您可以斷開線路。