Alcoa (AA) 20 Apr 222022 Q1 Earnings call transcript

Good afternoon, and welcome to the Alcoa Corporation First Quarter 2022 Earnings Presentation and Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After todays' presentation, there will be an opportunity to ask questions. [Operator Instruction] Please note, this event is being recorded. I would now like to turn the conference over to James Dwyer, Vice President of Investor Relations. ahead. go Please

good Harvey, and and I'm today Financial joined Oplinger, Thank Corporation day, President Roy Officer. Chief and Alcoa Vice Officer; and by Executive you, President everyone. Chief William Executive

after questions your take will comments Roy and by Bill. We

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

means In measures the addition, financial to directly non-GAAP today presentation. we adjusted measures have included EBITDA in to GAAP appendix in the EBITDA. some financial reference comparable in Reconciliations this discussion Any presentation. found today's can be our most to

announced, slide Finally, our the available on here's and With earnings are release website. presentation that, Roy. as previously

everyone welcome joining Jim, to first you, who Thank earnings quarter is call. and our

press for net key repurchased prior had quarter. on of EBITDA, give the also income As a we we the sequential with a record special it $XXX net than items, And what than I'm in saw allocation more first and billion. detail, adjusted our X same and we results in million. solid common income $XXX net Adjusted net XX% was million today's period measures: stock Adjusted items. Xx capital EBITDA, very framework, report last We double excluding improvement the quarter. higher year. excluding XXXX. more quarter was but quarterly in Bill posted more focus you was shares in that have to of special of in had the That's This three than $X.XX will release, income, XX% million. across pleased income profitability a adjusted is quarter

focusing in these history the and Looking of on and strong remain driving record-setting volatility, and efforts continuing We're global it's priorities. mirrored across focusing values stand-alone period this eliminate operating returns complexity low teams with strengthening and our to strategic and Alcoa to our operations. back global In than our being company, a our cost, of more on our see steady, guided market at we as strong five-year margins great the sustainably by results. unnecessary

with In with to a its continuing capacity we previously work focused our occur, deliver We curtailment Alcoa and our energy is the will also The this lose and to a money a to an quarter smelter anyone due expected proactive root the improvements in contractors in continue workforce. losses prices. the outcomes. improve or incidents. interest location. allow visits reached we capacity, several we to in terms well period. important of remain cause are stronger and of online, close us use progress workplace our additional of systems Brazil, control we've MRN. prevent to year. In in had while the to two-year on Mineracao divest operate bauxite Spain, resolute to Do benefits will fronts. The signed the the exorbitant In quarter, we position Brazil lines continued top the improved the the maintaining injuries, smelting deal to investigate on an on an safety to serious solution safe during agreements Again, in for tools our this agreement the Meanwhile, once who to no that quarter, restart prices, of the we metal Rio to San January, second make do to full our to business accidents employees, in of continuously Norte to Australia. markets. This use remain capture Ciprián transaction idle the to plant energy When find continued to We'll for according and continuing in Even we casthouse time smelter curtailment and us completed future. the our to aluminum

Following own this well future allows our with believe future the divestiture, in bauxite capital two remain in system mines across we particularly positioned we our into global in transaction avoids reserves Juruti potential investments mine focus to us and high-quality costs will operate. and Brazilian business bauxite we and The in the Brazil.

$XX this restructuring Coruña. various divestiture La the to charges in resolve XXXX We related legal recorded to in to and settlement potential claims is of litigation. the million the this agreed assets, proposal. related first offer expected sale all smelters, conditions, our two accept satisfaction for those week we and former avoid the lengthy agreed Next, of Avilés and upon costly employees quarter Spanish Upon to to of unanimously

former legal against pursue and promises to our continuing these the entity failed employees. actions are its We to that to meet purchased assets

please impact than sequentially that's prices the of metric had for the remains we've detail that our ton. these And done increased adjusted saw more to several Bill $X,XXX ahead. the a and efficiently full including years to aluminum Finally, we the enabled from point for benefits quarter, go realized business EBITDA. past results, per markets. the work aluminum on strong to positive good these the average In the strong, capture Bill, has operate XX% fundamentals us over pivot and positive metal price

Roy. Thanks,

both sequentially and planned were The bauxite Coruña which would their $X.X the first the to was history slightly related income income than impairment offer and upon sale time million million the measures $XXX as million Avilés of paid first settlement made year-over-year delays. Corporation's GAAP quarter's company's All a smelters net to mine. net its and items was Adjusted XX% Revenues year-over-year up of Spain, million year of of adjusted $XXX marked the sequentially. workers up higher was collective interest year-over-year EBITDA, XXXX, million adjusted or $XXX over in $XXX better acceptance, $XX increased million Special Adjusted billion $X shipment special million and the in included was $XXX was income asset $XXX for quarter year-over-year in in XX% of million recording its higher the billion relating million income earnings of excluding $XXX be EBITDA and logistics-related and highest $XX the quarter improved and $XXX net as of well La sequentially. billion year-over-year, sequentially. prior million of to up net lower or on $XXX $XXX and MRN but $X.XX divested Alcoa items. sequentially.

stronger of the premiums aluminum realized the per positive higher for of majority translated adjusted up higher first product into quarter, adjusted the In benefit Let's to customer million look of curtailment, at contributors in drivers the well related and prices, $XXX Other and sequentially, Alumina segment, EBITDA. EBITDA. improvements were profit approximately the costs contributing San million. and and intersegment Ciprián as the as ton mix to smelter $XX Aluminum $XX other eliminations both the lower related

those demonstrated costs in days Spain, was sequentially focus. delays fewer production prices offset both of availability. partly overall segment, unfavorable as higher up improvements Australia Canada, costs in but and three the in in costs hydropower strong lower and partially due in higher due refineries, segments, lower were challenges, were As raw in the well primarily Brazil. sales railcar very Alumina in Despite at also energy and shipment little Volume material expected, as to all cost and production because to quarter, the Aluminum

over Aluminum our and cash on relationship These segments segments. our perspective costs Aluminum Alumina focus investors. costs, a view at questions third-party where last of and realized more show Alumina look raw the compared prices received areas compared the For let's we to and in strong energy of simplified the the cash to from for is prices. on margins, structures cost The the realized most our year materials sales charts the

material procurement you Looking costs use, energy that remainder the have long-term somewhat, system the at see mostly these of relatively and have the of contracts. The bauxites, and while and raw low muted global including benefits been our mines over refineries, rise of Alumina soda strategies reflects caustic cost, integrated increased costs energy both colocated time, flat. and

are aluminum main price currently the Alumina also in market cost effect reflecting price. our Our index energy in more outpaced the increase offsetting Aluminum see significant spot the integrated are than And is Aluminum. Spain, exposure up. industry broader An in XQ linked is limited fixed the load. Key company. in while revenues. their alumina substantially, a have of and higher, self-generated similar energy And costs realized pressures, are our that aluminum compared of our Aluminum our seen higher is message is smelter exposure our And cost may seen are Approximately alumina, XX% the minimal global spot XX% earnings, our modest prices. only Roughly of than smelter and in remember, to costs impact spot to here Norway long our most alumina price for segment too, procurement prices system, to we prices are pronounced of energy spot net the energy our increased Again, that position and our XX% and the San increases. less refinery a is is materials elements more segment to prices. Ciprián has positive even given other cost realized at increases raw but conditions or power, average. exposure portion by impact benefits structure capabilities and to

metrics. When looking at earlier. equity quarter, return profitability was the quarter discussed the levels financial Let's on excellent yet the move other our reflects and to XX% strongest

interest including debt. dividends taxes quarter were expanded totaled working days Our use and year. cash balance cash Cash declined, however, $XXX increasing capital million taxes dividends for to million, XX days and prior the income returns our cash related $XXX million. capital, of Working million. uses at $XXX in and to Major capital returns. capital the stockholders to non-controlling Net was $XXX income largest to net and

working of caustic expect deeper carbon goods, inventory, a of were take for days days goods. inventory, availability In increase capital added happened in There of inventory accounted primarily and capital what with days America. challenges two for day days change two prices finished XX primarily transportation the with higher Let's of and of and higher multiple and the shipments of payables. products days more XX alumina and days working increasing Logistics raw outbound in future. Brazil in to Australia for of material quarter. missed we five receivables of less more consisted limited both what factors values seven The North in finished one look this and related at

of of be Finally, to especially restart, two we that more are sales levels higher late IMR added and with expected, and will days. the capital. supply and anticipate met five To due that shipping Receivables the hand. working as prices, assuming progresses lower to Brazil elevated on remain the in inventories for we days maintain higher Alumar year, prices contracts serve quarter in annual through improve, we up schedules account purchased reduction customer We realize inventory. extent, after metal do will the mostly some restart the

one Our full year outlook shipments only change. has

tons million shipments alumina million Russia, million Ukraine Russian million the tons. to We customers our of XX two as shipments be expect related changes not remains The of to to approximately our XXXX market. in bauxite a result outlook range the as sell to tons, bauxite down for million XX.X XX to decision XXXX XX.X Atlantic to well

aluminum by for due restart material, complete are full of expect the For but year-end outlook outlook Alumar unavailability and still unchanged. suitable have about estimates the All we to pause process restart to year the month is be unchanged. other aluminum, one shipments path we

costs of factors. quarter than second offset third both expect by and benefit be we alumina higher material Higher costs. approximately that the million first realized aluminum expected to on higher other prices, the to additional than of maintenance offset quarter, For party shipments prices are part with today's more energy raw based $XXX and and

in recur the be Looking segments, second quarter currency we expect one-time production prices to excluding to not in impacts rates costs. index for Alumina, $XX benefits two-thirds $XX at we ceasing million businesses. response or quarter, expect we and do sales first higher EBITDA in costs, in bauxite refinery being in energy material approximately with the Juruti energy Russian Ciprián approximately and raw the to supply to slowed as million San In related

benefit, other high segment, expect approximately of a expect the million to $XX maintenance offsetting In cost We million $XX raw volumes as increase more alumina and also improved shipment to higher expect maintenance materials fully higher and Aluminum shipments as and we $XX costs to than provide $XX of impacts energy offset prices million. well costs. million

to Roy. over turn back it Let me

Thanks, Bill.

seeing we're in overview like give markets. I'd of after our the Next, from Last price XXXX saw impact pandemic. an we general the to a what year, recovery

Nikolaev Australian prices experiencing is of suspended in disrupted to saw In the are market Australia's increased cuts. we market, last then, Chinese Ukraine, higher the alumina to market are some Since suppliers due of today's sell prompted the and between shipments Russia supply decision invasion some with when to not. tightness refinery remain Ukraine. reduced XXXX from has month notably China to smelter the alumina aluminum seen Russia's global and Now, levels it has This exports reemerge. pricing, have those a to the averages. from Russia exports and Russia. outside but both at pressured Western who most ban than volatility, willing XXXX markets to demand competitor separation atypical We a in

positive The to continues Aluminum our metal. role segment and in to now play overall large results. a Turning

Russia demand primary this somewhat due aluminum aluminum positive particularly commercial approximately high remains our are remain smelter remains pricing continues From the to of slower central On transportation with we driving automotive, reflecting year demand With supported in pricing cuts growth In increase resulted physical pace to favorable negotiations and also aluminum to global costs. globally tightness to value-add slightly much the inventory produce, capacity in and and logistics in QX. output interruptions government's expectations region. lower Europe. X% levels annual XXXX. recognized limit for growth China, primary costs. aluminum we disruptions, despite contracts, customers this government supply some expect also supply annual in prices demand relative High permitting Alcoa's through system. lower Eastern side, low in chain, perspective, in Europe in energy positive the and but Growth in growth, to we which by in premiums quarter-on-quarter, sold high are markets Regional and products where underlying a

sustainable seeing Sustana products our for growth of family. line are Additionally, year-on-year we in our

and brand, We the which expect volatility like alumina markets, year Notwithstanding in product aluminum with low-carbon including towards aluminum continue we drive Alcoa. expect total EcoLum, EcoDura, is fundamentals at is volume XX% recycled to changes, to solutions. provide in which and the increases positive a the least sales more content. in threefold shifts due should operator advantages current this for low-carbon aluminum of our These structural sustainable a made favorable our for

is stronger said we've several the cycles. strong ensure doing success to of been This top an years outcome to has of I vital including work sheet. at call, steady, and Alcoa all As the this an through even a healthy been that foundation, market balance last over these work build

have and Importantly, a ensure that to we've lean operating we worked structure. efficient

have working usual, been as with Alcolans, diligence. Our

our in through us materials As raw been an important current this material example, use operations, in teamwork we're especially has In procurement the efficiently. to also helping raw group in and environment. vital manage costs work our working logistics our our challenges, various very

decided we of or have to new that the maintaining something we to to use materials while of caustic our quickly businesses. as average and soda materials. selling are of is raw key a refining efficiently. we we in for in is than cease procedures variety well This Russian of And primarily when our We caustic buying month soda react caustic integrated raw example refineries, a overall this process. good tuned example, fact due They our and less global situation, from this factors, context. to important positioned most refineries last stability. bauxite from Regardless is keep the on adjust the use quality the mines the our A high products fine as processes an competitors. Our less when arises, ingredient

the we in not While multi-disciplined and act mitigate we've financial worked operations do have a impact. decisively, helped us Russia, team to

As for continue employees to and I we letter we in on our values, Russian hope to to crisis. in our decision explained alignment this our following end businesses, with acted an a

the slide. of Now the of on let discuss right-hand side items some this me

unease continue situation well a closed and cost the Ukraine, lean best shape future. to We to first now we remain from the been emphasize and ever, we from that the our it's financial positioned pandemic we in turbulent through XXXX and for focused. have As manage remain what in times, important

have and at pension billion quarter. We $X.X cash at low stood the that obligations of well-funded a debt, the first balance end

We have tomorrow. top-tier to assets needs the the developing technologies breakthrough now, materials that supply are strategically including for world located with it

where modest cost restarting Portland an Aluminum Alumar and makes is building that capacity economic are to Australia. We sense efficient, at some operating do portfolio such capacity in so it as

a the create to the sustainable technology We a has value to differentiate future processes, have that for clear potential reinvent map by decarbonize Alcoa aluminum stockholders. for our industry production vision road a supported and

commercial Our to on to R&D month, is SE. the use we the work to of the that within truly progress. any see is Apple It's to available technology Alcoa we excited two metal fruition gases instead ELYSIS scale for and technology. licenses were Pittsburgh XXXX, Last process announced from at breakthrough without are greenhouse exciting first come a running at ELYSIS Technical be that they'll see continues venture ELYSIS the Once technology revolutionary, years. of a This full-scale byproduct. could via very application producing that this joint iPhone outside first producing oxygen direct developed produced the as Center metal being

another the both to governments Australia reinventing to to to produced in the renewable the use output calcination, will fuels, and bauxite recompression, calling initiative, what's would of agreed what and is proprietary are combined decarbonize of national of from were known The will have cost announce When conventional process use there refinery, a in provide has our a development we're mechanical potential a has we that electric purity alumina power minimize funding new goal smelter. week last for new the lower to refinery last scrap, Australia, In freshwater eliminate eventually at to a stage funding alumina deposits that of constructing fuel and These to aluminum. aluminum process unlock technologies refining, of that into the that vapor this fossil which also two through quality proud the working impurities regional technology future also we're built addition low-value In process usage, reduce which technology refining. smelting, residue. surpass removing will of recycling refining. high a with as eliminate produce the

it leave to summing I from Finally, points the up. want all results we issued key with you few a today.

despite First, we volatile markets, delivered.

continue strategies to return XX% We a providing our including quarter. on to on the solid equity in deliver execute results,

Second, are on and our restarting or and process. We've economic review working. our including divestitures strategies curtailments portfolio, necessary, to company when it strengthened sense, portfolio when operating executing makes our capacity our according

first cash finally, of the we and second our accordance tranche Third, are reflect the paid actions future. These repurchase dividend. another our positive our are quarter, framework. our our of In executed about again Also, we our future. rewarding allocation with And we share view we our investors. in strength consecutive capital authorization excited

our continue the comes to products aluminum back to should future, drive toward expect have we production will consumers and we the value Looking delivered and to chain. that to on aluminum potential when purpose sustainable it real progress. And turn clear into what we as raw it redefine value is to across history, our look

please ahead. questions. Now Operator, I ready for your are go and Bill

begin now ahead. will question-and-answer Instructions] the session. [Operator from Hacking will question Alex And Please go our We Citi. first with come

Bill. Roy Thanks and Yes.

side. caustic good Obviously, pet all on just So, job, the you've cost first the stuff. coke, question pretty soda, a that done on

it increase, lag. quarters' on tends several to prices As be

cost pressure So comfortable be or to should year you're with Thanks. the through we expecting the building position? up be

I'll Hi, Alex, that it's Bill. one. take

the are to we've vast and take couple the in of with to we've can in materials everyone remarks. and costs the higher, reason provided majority I say out back the So of coming in strong if second million just prepared guidance quarter about that factors. step And moment some a guided in Energy make materials about the But $XX I Spain. be costs. The the a higher quarter. second in why -- Spain energy that $XX higher understands to that quarter. refinery second guiding We're raw million a would raw the is sure of

than and First, at second on the today's prices both quarter today, basis, quarter alumina first prices the lagged are a prices for aluminum. higher actually

and look provided, if say energy the Alex. will I we that more outlined, we so higher And the you that that offset materials at than guidance benefit just costs raw

small second a quarter significantly maintenance offset than we better that of will the a volume shipment the quarter signals that -- quarter. the items shipment is the The first the anticipating better higher strong in one-time non-recurrence are quarter. second volume piece in that second more some costs And in guidance second couple of and of

for we're So understand raw a strong you seeing we material are important overall, that to guiding higher costs, while it's and to some energy quarter. second

from Okay. then of Like changed question additional Russia of directly I getting you looking Ukraine. And that been small how guess, with, have. have with moved been customers Alcoa impacts a for guess concerns Alcoa? general the And seeing amount around. with Any kind inbound have you that? supply chains? just Thanks, what's follow guess, offtake? mean on that? Metals have you are stopped from I a of Bill. But for up regarding I prices Thanks. lot What you transactions a the I Russia,

you the you for let Russia from broad want quarter, impact gave more in the from overall, address obviously shipments the our The it the It's turn first Roy Russia. to $XX address of to to massive perspective? was that about but not I that for to broader full second million do I'm a shipments stopping impact. financial quarter. Alex, projecting the a into year. a side, impact piece me into And over and a then a of is guide built We're answer. for going just stopping minimal Roy,

a Ukraine complicated was chain. already Yes. supply sort And the think in of exacerbates what situation I

different is, we supply a perspective, have an on to think that working And materials and procuring fact across so, team really dedicated from chains, on to that's that leveraging or or we possibly to best world the materials ability the the the we can I that coke is working Alcoa different of these can. in parts our buy, cost all world, structure whether so caustic it's have

the think Ukraine, seeing was we I getting needed -- that already we make a it what sure creativity in we war needed, So it. were we it lot took were of to prior when to

think I the we're that, even it's complex. becoming is now more what -- seeing

doesn't complexity would that managing we we need, talented a that I mean Now can't very find good very the materials we that and getting these that team have is that at argue issues.

And we were sure kind making Russia. of we sell make we we Russia, because created effort made sales that that Russia, few we -- particularly so the took to from it able any decision but which Bill without were it when from buy replace, that issue, drag our to that into bauxite could to some also neither really do materials buy the we to that did of about, talked financials on or

so the things, the sure it us. job think a And doing we're good of making that very -- on cost doesn't I impact side, those

ready see team playing On inside things and continued we're ready of issues manage this. macroeconomic And need out. for just as that keep to of of uncertainty need the given par well we our react and the to different to some we of we we're as go disruptions the continue seeing COVID I chain, China, volatility, other the the the supply think to to seeing some it's course, that as again, because

our have operations keep and focused a our on our set think us that of job to I able et maintenance, I needed been make sure keep focused that procurement our things. very the team on on stable right think has operations, materials However, our could the keep we we really focused team, drive people And is to safety, people cetera. that logistics

everything. luck good and navigating Thanks

Alex. Thanks,

will Our Capital next Gagliano go from come with Please question ahead. BMO Markets. David

the the taking My to buybacks. question, about ask Hi. questions. I Thanks for first of want pace my

repurchased you million X So shares.

think working of a balance, shares total of about flow cash once go Obviously, headwinds plenty I free first X/X away. that's the the those outstanding of X% got cash potential in you've quarter. large generation still capital

expect these question. in That's first we of should the So coming the to my pace buybacks quarters? accelerate

price as So, question, average approximately was X.XX be stock. -- for share. Dave. shares worth million a to of at the of clear, said, $XX around $XX we million bought just To thanks back we That an

paid the dividend quarter. in We the also

the level the we saw you balance in as -- the and decline capital the buybacks are quarter. And cash Given little a markets. a quarter, the know, quarter in bit think that -- capital we'll first right increase million the capital that working was in that did we the and $XX that, fact of future the factors, of to current variety Dave, including returns on based future expected be expected first

year. course So, more to the of come during in the future progress as we the

view, that there's working you think And those that your that large the magnitude draws. buybacks the the just making -- of a buybacks it quarter? prepared or or, the remarks in the capital capital point did is in so said Okay. I of that huge magnitude just first the working or you're understood clarify, to remarks in the draw, impact And those

Yes.

build quarter. accentuated that as as was working is was. particular typically capital right? pricing high the it as being the fact quarter clear, working In build So, the during first in it be not the buybacks in a surprise we're a capital the we conservative the to saw by on And us, build first first see case, this capital just the was working quarter. to We

working So, we as tempering build the quarter. returns quarter, we first in in the were first capital to the shareholders

XQ before. on the once release elimination was decline. second for I one just also one-timer now $XX the and million quarterly of try press EBITDA bauxite the of out I kind new business. Russia quarter. million the that then, right moving $XX my Okay, understood. called forward? rate Obviously, run thought sales asked question the expected first a to EBITDA the $XX And for guide in Is bauxite is this million. I the The for

the segment for don't earnings. run We provide rate Yes. kind of a

then the quarter. Let there of the a me second some on sell first bauxite that expected tell to we royalties third first the and have what's in you for quarter the go to in quarter, we In on going of what's true-up party. a

first And so around And refer that normally and first little higher real that occurred item in I when a in was a one-time bauxite the the one-time that in to business. that's I was the quarter. and is, it believe item, the that than million $X was bit quarter,

quarter. MRN the sale that projecting we're second closes in the Secondly,

the So, to region. we seeing there and thirdly, of MRN decision decline of the in in of Russia, because lack of market the won't sell have not long bauxite to the really because bauxite the we sales And with earnings then Atlantic are the the pickup. business

And the so, that out of earnings Brazil. negatively is impacting

right. helpful. Thanks. That’s All

Thanks, Dave.

Dave. you, Thank

Our from Please next ahead. with Vertical go Research. question Michael Dudas will come

Good evening, Bill, Jim, Roy.

Michael. Hey,

Hi, Mike.

pressed a of And sooner is to to going little over could then, other relative looked keep look done standpoint? there the industry How from impact premium last hope, of you're sense to is you've to Russia, Ukraine? how six disruptions like question some viewing get forward So, better things on than it comfortable I be will settle, opportunities? this that away the scarcity it's How has the a on that -- the buyers work you're market a material? it of because for to working period structural market more time but -- the do through you is the bit going -- Russia later, issues -- right it do won't from a weeks because through, a word, is invasion. getting And the Russia you're think procurement from sounds on issues or we there think getting and how issues it say if the you of get rather is

I'll one. Mike, Yeah. take that

So, actually a like as things it end. of and imagine sanctions about And this, can be you some the whether in would to situation the when to comes there's an even some if situation always end, other unpredictability, were lifted.

to have smelting inside really, their from particularly of operation. can material We a sufficient the and to look very things. from maintaining are two to to let of the being China, And presence about that on to do predict alumina there get the people it China I'll things. whether they we Because cost-competitive that So into they're of visibility set significant of very standpoint, and or know an alumina from elsewhere continue challenges able of really From certainly Russia, is logistical aluminum those whether question get alumina aluminum important operate. we'll don't side, important lot get we rates other basis. of Russia at a

any actually side who and leave be question, the Even inside players before Russia that specific been are been et answer one in LME might material. away they've metal cetera. stored to think The other Russian produced whether would it. purchasing that Russia I market you shying able Russian of is from is, buy had in To produced the most very materials warehouses,

think And so market this I that in into world not Western to there that is material a expectation is markets. the going come real very

some Russia, whether would never to those China, you how to for question when into some ask and into of which complicated that efficient alumina up be ingenuity getting smart can of additional China more problems. go the of I question find the innovative becomes Chinese solutions able material the about can tons be and it However,

And what so all have the worried immediately, to into still because see would And where you market. from there think the of in And everybody then down you immediate again. come inside back the is not prices alumina market Australian Australian prices in saw was alumina essentially with And ban Russia, of Nikolayev sudden, the saw start a think that selling a sufficient the be the -- very trying specifically to you down. you spike I digest I almost impacts saw are. come market that

I the that's, me, happen. indicative to and the that one what's exactly knows market to the uncertainty because volatility think sits going in no today,

fundamentals to think for aluminum uncertain in just a continue to isn't demand look you drive the fact of we not to it's of that's in the there then what's coming I or And capacity lot a it course, alumina, the to while in I and these of situation importance underlying when times. of in volatile new on board see market. growth drawing there's helps importance and, forward continued in even the that decarbonization, aluminum see The growth. market, me, additionally, lot whether projects happening terrible in on at it that the of the simply -- Russia the Ukraine, going sort demand

sort at not you in you story a and step what is what think, to then looking for volatility yes, there's And going strong that the you impacting so say, of is very me, I say, the immediate long-term. to medium situation, aluminum be back but to volatility,

very helpful very much. you Thank those Well,

Thanks, Mike.

will go come LaFemina Our next ahead. from Jefferies. with question Chris Please

my about the taking have for and build Thanks about or capital question costs. I another working questions. guys. margins a Hi, question

up So as said big lot I there quarter, Bill, Obviously, the first, the prices working you and you that a expected. was on well, two factors think, a impact first the in going there. capital seasonal which build,

saw if are mean Is first course forward, I flat that I reverse Is a that that year? build it reverse. the it's assume across question driven, price if quarter would assume we over board driven going of the fair So all that in -- all much prices just is how of seasonally working we conclusion? and that would the capital the first would that the

it on over of -- will on on large a pricing depend year, will It really portion both It products the goods what Chris. reverse materials. does and finished raw will

inventory restart nine nine payables. sorry, price, of were Alumar But to receivables and and that issues. it days, difficult is XX So day -- over levels will time. -- the up a to the days that come that is up the is days number of and the the XX of give of XX out that one is days, that lower of to two just of due down were to it's inventory, around much inventory, due it to of really The is five related is we I'm you two perspective, in put logistics days how

course depend that a of through, years piece independent seen bring working there's year you've how So five but the worked down logistics get we're capital the over the of issues last typically the on that it every an year. will company as during we will naturally that down come

Got it.

Do reason something else structurally no believe going higher. to anywhere in you there's have or capital on the in is working So Russia world? that

prices for It's higher high, point. And stay structurally us. that's are if prices a Not thing good because at higher. this

And just -- then sorry.

The with income second question is related to through kind of statement the lag. flow the costs as the they

if of to cost are the in then? again see year of now impact some of half through year? the So margins of back flat prices that expect inflation margins we the starting the kind are over we we progress the course assume half Well the contract will year, will of to second that

timing you we through yes, and can cost know, deck, the in look -- as caustic of So you cost the being each drivers, it major the of a you the the backup soda. walks take big for one

that buying toward end this caustic will we're typically point. So through the at today the third of quarter flow

all lags are there. So those of

Again, seen the than I think average. quarter. I'm than what we've given aluminum what that hoping with sit today actually that first thing -- stronger is and the saw lagged. actually alumina on in where it's critical people we understand stronger the we It's pricing,

at energy materials though even should in are we be higher second pricing there stays today. assuming and seeing the So it's that expansion, margin raw quarter, prices where some

That’s very Thank very you helpful. much.

Thank you.

Thanks, Chris.

Our America ahead. question of Bank Winder come with Please from Lawson next go Securities. will

factor to cost done from Thank Bill. your for it on first you energy cash involve goal you, still achieve to become Thank Maybe any closures? XXXX? mean does quartile. Roy What today cash alley And And be then Good quartile update. linkage asking there? I Bill. cost you, Very LME evening, to how operator. and does nice costs to to by and in first remains just hear the

Yeah.

want in and chime So well. Bill me let to as one start to might on that

as a what are more different projects, ongoing plants making stay bread that creeping is on are of in sure I those in even good tend competitive butter the always things the always. can we sort be And and the at think of pretty improvements working number be competitive, competitive and creep to There's assets. we're of our which future.

products our total order lower to are what call sort And so operating do we or total put and our -- that of in cost. there capital in place are there capital we return-seeking

So that's -- to understand. I think that's easy

operations our site-by-site that ongoing that curve. We on get are of upper the facilities of a part also focus step-change in and review, improvements those the cost can have how we becomes

energy. Portland and energy Aluminum towards where examine slide that a down. expectation just energy, of is set get a price. place recently affordable end time, we on again, at really helps to good some creep. energy on, our down costs also contracts that that for to of curve is was have the example some an that is back cost can renewable another doing and that get that overall that And of so that spot-based that's we're curtailed, both the can we had the able a smelter San period bring that's significantly unsustainable parts going then they the we that bringing is left, great example additional Ciprián look we're more as the but same an to we power contract -- That need power to of When bring

going to And that means blocking quartile. of of to to those price some to our things improved contracts, the first means we're then getting to a comes we're illustrate sort energy margins. and so to When underlying that are do can it's it in points LME end, down cetera. you and drive et cost, it And actually the but the that actually better trying meant to the the significantly these that's getting that problem mix increase just of It is in embedded because we're pretty have where in that order have. types aluminum the of to of -- change to costs, we're margin linkage good tackling structure pivot a those a might

worried well. of over linkages a to that's a curve similar contracts have the think -- -- a LME high that so less cost where high. become little LME of in sitting in that But problem there's as on world QX. I the a about plants I is type lot LME-linked situation they to that are is in my end are bit getting that also So there's the If

and So we that highest that low-cost can. all that driving has margin, bit driving a possibly portfolio have that very gets to -- say, very complicated, a the we're margins but we're has little it to for

would to up, And suppliers. to to LME We an that benefit that LME clear, linkage about of our energy of it. on to that the to on the The only XX% be thing pass benefit goes add we the all power a I as power only portion pass just Roy, that, has is mean doesn't of supplier.

to make So challenge little to were it will a quartile true. that problem as Roy that if be bit said, first great come may that more a have may difficult, -- while be

versus a excellent And bit update on maybe expectations next That's over Okay. how more nine the at months? Understood. then could little you is the Just sort an year and performance next provide your perspective. milestones of and this ELYSIS? of point,

Lawson. Absolutely, Yeah.

more So is development than we're careful in about fact and to that this now continue to talk research probably the development, active research.

it greenfields continue do conventional have and you up. to only said, of we read be that succeed, solid belief that that think and that not the it it's so continue And on. the project we're the very any for the brownfields technology, we a because should in That clear going scaling future. say but I will work to succeed to fact will that into technology not of a or will it ELYSIS we midst We're

in right which right have technology facility. then big operating start large hey, technology step this sort our and And to of really size that next is of now. a not And the we works pop, but that can work industrial to this that's order engineer that sort we construction is really attractive of now, amperes, that next cost so the XXX-kilo scale says, point only up work, at need does under very at

want in in. move to direction set are track. the we of the ongoing them that So programs are moving They on

We making the we we before. have faith is we've of statements successful, made of already the a lot on a which that lot but made also have why technology, focus them in

much. very Thanks

Thank Lawson. you,

Our Pipes next ahead. Securities. B. with Riley go from Lucas question come Please will

If you what on concerned Are to markets prices are wanted you Thank everyone. strong. obviously, afternoon signs good you most very I and touch Thank of very you seeing about? And destruction? the end so, much. much demand very are demand side.

Yes.

war then So on make little about And a to just I concerns that we get Ukraine, pieces, in could the supply we chain break your a all I sure but them. into me cover we war has get different but few talked to that bit one. prior would that when the off, started let They end. it of Start disruptions. existed exacerbated

bit last I to the also this creating some be around economy think that's the of chip And we or continues difficult. IMF just grow, over hours did. growth sort this expectations made day. knock-on little a of down course more It's the economic automotive in happening whether as saw impacts just shortage it that are these for last bring their

have would some where automotive clear Europe of we're place say disruptions elsewhere is bit a supply so of ties a cycle. the economic those And that that the that seeing erode and I the tied to general is tends and And little think to see, so start to chain I we aluminum very because really world. you some where around happen demand in

You're an also market. seeing inflationary

in well. tends of that And break the it's happen example, what some the to situation, as very on for U.S. more much Again, demand the a seeing Fed, it how edges. as at see put reacts a we so inflation we're to very we as see bit of

change X%. X% quarter. expectations last And by from at aluminum going grow were so saying to to We're saying our X% last quarter, this is for to in demand now quarter about we we look when

tells are starting see And so some you, to yes, impacts. you that

also However, grow, it's that that's quick market aluminum not that I deep, caveat a make an very to growing. and aluminum see would disruptions. supply we seeing we're just reminder to continues and continue significant and

can and commodity, in get gets because impact they energy. produced is how alumina a of down financials, actually seen uncertain the need being there. to look you're metal We're actually the metal. actually is we've favorability having So smelters Europe, can price much And at pretty the when of of or that aluminum that significant Russia, whether of they export trouble because operating fact the a we the inside as it

ability aluminum at little And you a and bit supply, inside erosion actually produce so from erosion same supply the of time. to demand, of perspective, are more aluminum an of seeing seeing the but you're the inside

any sort For and on out this one will we ask Alcoa can next you move specifically, clarifying round my the then and of answer where questions. can to

strong. very book is order our Alcoa, For

very our sort items And replaced. so the we not we one-off environment current have book seen of of we order haven't forward, of suffer We seen be impacts because simply when can quickly look that find. that outside

premiums -- seeing our not growth impacts our that just demand premiums. orders. growth significant our asking regional you product certainly in that come our seeing on you And And saw growth we're in seeing simply product in have we're our premiums, would capacity So more QX we remind in I results. are don't there. out. We because customers put which for we are out maxed everything the can We're out

our and I in seen disturbance being Europe. we certainly significant but not is So, really for demand, there North have it's think in America the markets sales, is where which potential the

the really I programs spend R&D touch helpful. then monetization final you you questions, for to you kind do And specifically love XXXX. that spend? In appreciate programs of us, much. on And quarter, very conditional to Can I ask the on but Thank will want you, more on very That's various when the I well. prior what's a to that remind technology? as showed path make in XXXX, decision ELYSIS, it.

gates a as We've different of case business at a not me whether we individual make for of public we spend. guess, those and Lucas, had, back 'XX 'XX 'XX. along have projects on listed of this So that point. Each -- the around each number in November, deviated We those spend will the 'XX, R&D out one way, that the address the I let projects of and based decision one projected guidance the off solves gates. at stage spend stage for

pots is in Quebec. ELYSIS Alma said, well. Roy constructing moving As We're along in

XXXX. continuing the We're pots is a stage more Australia in and classify I actual on part early Australia. as stage a progress that would gate make research High-purity year. to development, very of those development. will be in operational middle than this to expect alumina in have We

high-purity plant be really of this of we'll building during will a the be middle the the forward reevaluating to the we pilot case move refinery alumina, in development future that We and evaluating part then And are longer-term business projects, whether for year. stage.

in electric funding Australian probably Australia. getting we're and the You some support saw governments for the from governments That's calcination. local from huge about the step getting news a that forward federal the both

pretty with pleased are on So, breakthrough technologies. we the where

Lucas, venture think two that in-house that that that's the pathway that for We'll I'll keep very our the it Tinto, I we're and more the grow with keeping also and monetization ELYSIS, ability we makes the on our partners, statement or see And license Rio that open. we the that there's ability green a short a lucrative for if answer simple partners have options that premium that, the for a to term. we'll if have to Alcoa keep sense between facilities to in us see

for what alumina and a that that's the what make to that don't is markets as be the develop can low-carbon aluminum we allow when greenest combined truly with to aluminum decision so need yet And and we green well. will

at at Bill look back said, But our of long good we have, -- can stage. different And not successful, very and I looking how successful but we're is that we strong only that pipeline a so, coming markets each in it make the very and one at create step how need, Alcoa the it's -- those, I also for like decarbonization well, financially solutions into future. businesses we can

continue Thank best of luck. and you. appreciated Really

Thanks, Lucas.

Thank you.

Carlos will Stanley. Alba question with go Please from De ahead. Our Morgan come next

much. very Roy you Thank and Yes. Hello, Bill.

Hi, Carlos.

Hey.

was that you mean, capital see or So more dividend continued on quarter, a we do buybacks high your flow bumping go cash my the a improve. I respected elaborated. share compression step with we to reasons, possibility and and rather would cash good up this doing to the forward to than as first working for special focusing But question your Is up be an dividend? return as has you you potentially dividend, shareholders. issue there should prices, clearly,

We cash remind allocation typically a but this just you've framework, capital times, $X sheet. I on Carlos, and maintain it's balance to know heard about a probably on want everyone. probably to the of billion reminder few the good

our you maintain As we balance are And maintain would were we sheet. balance our to to strong that I this also a quarter. sheet saw, able sheet more while proportional -- this say than quarter, grew in was for balance pretty leaves pleased of where -- I little the sits uses That net bit going debt with today. cash three the future. a forward trying

these The spending returns portfolio. not -- rank but the in are and first necessarily on order, shareholders to repositioning

of for then notice probably La You did Avilés third $XX Coruña positioning we that accrued spending the million and for have Spain in plants. the And growth. for is

the and a our before, the is dividend dividend. the we launch we first heard the company that probably say versus position As in a a And we strong dividend as balance course And that your to step better about We get second position initiated the weather quarter. to huge think paid says It in in between year, the is in first that’s a question to both. quarter. portfolio of dividends, the look the we'll that forward buybacks through and we'll the it We how was downturn. you've me buybacks. much for evaluate dividends at balance fourth sheet

allocation. view forward the that's of So, capital

smelters terms And most couple light you expected? that for about in about of thinking be of Roy, works might just a investment. can one Yes. too retrofitting the plays you are few but the out thinking this or as ELYSIS maybe early, a you your build big potentially if future technology ELYSIS Bill details. are this or shed or with smelter Thanks, -- how if maybe, Is some out

very for the similar of successful cell meet and -- way sized answer of plant. and Probably cost per Yes, and when of can we above, also it our less as with right? find reductions ELYSIS than cost commitments ton far size when to all all with the as our operating So, a a productivity Carlos. -- capital is then do

them. have make So of has all I'll work things a assumption that that the out. worked go in There's lot to those

cetera, you building XXXX support for the that et comparison a That's retrofitting and have a greenfield. confidence. We your becomes plants. governments and retrofit, based start the of question want look simple, to forward, a with Then that, existing and becomes we these whether compare in course, a a emissions which we're lot bit it the doing and, place, existing of When why this need all more to that carbon way projects. of of gets -- net essentially off carbon I production is next have go answer to up plant whether different the zero versus in financials the because and aluminum of zero where have commitment to zero little we already alumina, production find

you're green our at facilities. same And that types those brand smelters power perhaps so the new or it have green use that building stranded of smelters answer becomes, some yes, -- of we you either retrofit

of a investments, those retrofit next on and in of one technology, five start greenfield a or scale we're And -- to But going years, over so have. works, our or XX to then we that's problem it's more a show out course as a next sort confidence. that brownfield whether it to of nice more new prove pretty to up that facilities the need a to gain these and

you Excellent. everything. with good luck All guys. right. Well, Thank

Thank you, Carlos.

next question with Please go Timna from will come Research. Tanners ahead. Our Wolfe

in. for squeezing Hey, guys. Thanks me

Hi, Timna.

Hi, Timna.

lot are some we've there's I but seen, concerns want did I little restarting and ask about, think been questions a China Hey, has response, Russia I conducive about so talked But there. really to over of I've my demand. I smelters quick a either to apologize. don't know bit and Ukraine, a

just about was any I had risk disciplined? on indeed my And is from if or wondering So if being portfolio. you your updated China greater on thoughts question they're thoughts updated of exports second

a there moving We're also in here some think Everything little an starting the agree some because curtailments what occurred. from as So source to that of COVID chain let with of back. to talk in in some issues, they -- been controls, bit you coming little economy restarts and certainly from go the dual friendliness come to the see to that energy is of a that that and sure slowdown slower were there's want issues see we have that supply short-term, some and can coal the a We're idle that operations had economy as see bit the make that more then bit comments starting me we're your start first, that China, work growth first a of seeing China use about those we'd faster. portfolio. I on those

start those growth aluminum you are in chain you the slow down economy general. little in specifically demand so some Chinese to some and seeing bit, short-term, seeing of disruptions supply And with a happen the are here

So the I is short-term, in there think some pressures.

everything they doing medium that are of confidence growth bit gives on in while a However, be pro and at the it to you online same in. are discipline in they've they continue coming capacity bit what when decarbonization Chinese the new be been for towards you their and way dual the that more more on plans saying control they're show points and they more more that cap to maintain long-term. a their thing, which track five-year to And running what saying clear continue in long-term, the system, the to to might that short-term, all the this and very going continuing going look the they're

two to not operating continue you plants be And slightly at online to the the that come we've are would evidence see been continue permits production that one fact available. of have operating the increases don't point think surprising, on don't permits, piece seen so submitted have back again. And there not think being issued. would they idle. new I we some knew that number I facilities And permits limited I these real that because just There's,

be fact that they reinforce limit. continues maintaining so ton capacity year to And to XX per the seem million that this

energy about green this say they so serious to towards part the of so XX% capacity. And sources trying seem are smelters that off can power. about seem to of that total They decarbonization. also run their serious very renewable very that issue And of they also limiting is The be seem revolution. serious is coal-fired more very all that they they new run have of

But deficit sort But into got So a that. longer out. the blips course, not seems that they seeing need turn we'll anything policy term. to of figure keep short-term of that we're pretty those to be some on big they our eyes of

first now answers I've Timna. give I'll like let since of sort Bill it that for So been a answer, while. and jump a portfolio, seems I'll talking then in China, On

actively to across We portfolio. continue look our

for was sort in and drive to first look smelting business. look curtailment operating about And the or incumbent In operate or those that of have I have. a spot talking as better us for to decision we for world exposures slowdowns or that operations continue to to types the and to in costs our all what make like that single the whether it's look of every or in it's the changes today, particularly look our one at quartile different on step the live we

of well work which probably be we the even we had would continue is gotten if to done. as to have end continue needs have each sure And it still there's our portfolio portfolio so we still as review cycle. to successful And review all that tons, every And points will know, to operation outstanding program, that in be. to be make can to and it we strong as a the at you

I looking I to And we well. from sure of that fits add a that bit need work think at perspective, But portfolio don't answer. if a so know very and to and being be making it want the the an of that's Bill. analyze aluminum anything, always company general my you

hit the on you key Roy. points, think I

of the at. front me, tons Just metric to timeframe. We million smelting we smelters have continue in capacity we're I to the XXXX, active Those don't that of in probably back numbers X.X today. prices the that review given have portfolio announced have an pretty that's review that ongoing. we still still summarize, good, look but XXXX we

smelters, are However, as higher-cost smelters carbon you know, typically Timna, our too. higher our

closed action look doesn't that carbon-constrained we a have those world, always we And smelters. of will as forward to on some to mean So curtail. take

years. know, close record even repower, can the over seen and mean years. smelters you over last track As five you've also the our repowered we've mean be can It sell. can It curtailed. It

to on that. continue So work

still X energy that the in refining. Europe Spain And under metric refinery the on million shouldn't a side, On anyone surprise puts capacity of broadly the and it have situation in tons more a refining pressure we lot Spain. around of in few on

there we can competitive. So make needs Europe that industry need -- solution energy an the

it there. guys. Thanks leave I great. Okay,

Thanks, Timna.

will Chieng Please Sachs. from ahead. question with come Goldman next Emily Our go

Bill. my thanks and the think Alumar taking restart, for little it's today, perhaps previously you a and was around expected. Roy was afternoon, Good mentioned got slower And than I've one question. I but progressing just that what

from some would more peers? be what interested the challenges you of restarting we are why So haven't to seen perspective, from your and hear with assets? And your

Yes. That's...

can the and take me piece, second take first you let the So piece.

we is energizing it purchased piece isn't ago, run that not we quickly We've ago. to as first to. want pots to where bath probably into a what able up we restart issues had the The and about that snuff, weeks technical there we as we're announced some X.X the are week

that thing year. fully that, we're important projecting know is operational still to the that end be by Emily, the The there, plant of will

month while about of we So that year. during we setback, up catch the have will the course a

able it to want a issue? Do So started. address we're temporary restart. pause you to confident broader just is the that This get on we'll be the

worked Yes. them down ingenious in And I on very I the because directly and move there teams quick we One was most that they're off know comment team Alumar of well one specifically. have. we before when I Brazil. with the innovative

it quickly, More they're So overcome to why catching operational difficulty going the is I'm very, generally, is very we be reaffirm Emily, no think the illustrate to up the it fully be by issues the they'd end I that time, sure to fact we'll facility. and does able be that a restart that pretty in these which of year.

that been issues material. can't get specific it chain we've the where good lot representative having, the are think can to had worked time. you it's has want get how talking in the Alumar, But the a from making that that having takes away where probably lots now there's up years, hard more We of step it lightly. supply good heating to in the a issues at you that staff material, people which for probably work. but right sure it need the Alumar some generally, contract and much energy if which It's is that we're restart given for you to So you facility made at place hard of very And get times. that before, knowledgeable I operators find you we the we're good, a necessarily get of economy then about looking -- can can't decision couple of people been of the facility

You have to secure the energy.

You you have workforce. have to make the sure that

cost the fact going more bring reason in very value the pretty that It's order really, you're that of the to really -- hard. the it's need at at is top And that of of but a is artifact restarts restarting real really just energy not have not us but the difficult find very why a about can an because money competitive, significant announcements consistent through lot of pots. it's There's restoring cycle, and technical then you know-how to be seeing And You costs. very also those cycle. to restart up. actually

have to cycle. going at you it the top can be So very successful but of that not work just actually to through cycle, believe it's the that the

of barriers maintained creates these put what right to think making sure effort good, more we Alumar fact that next the And into lot to was was and some a be mention so the because was, refinery. going might to our other I ready that that's considered number lot really a us a and plant don't restartable. Not of world seeing as teams Alumar technical occur. And to are places of not good restarts they the sure the a months. restart. maintained case around if I it in took that's it as to the they're I'm of it restart. know They shape be

very you. helpful. Thank That’s Right.

Thanks, Emily.

Thanks, Emily.

Our next from with Please Tumazos question will John come John Very go Research. ahead. Tumazos Independent

question. Thank my you for taking

John. Hi,

their curious drop at if of flavor Russia, smelters? a as alumina on more of hand X,XXX first morning, many Hi. a or Europe us Russians IAI tons data made their March can had or how much reported this X.X% give than Eastern weeks right. where the the in output enough various I'm store Could quarter your months inventory was of least world that IAI in number alumina the for January smelter you is you smelters

custom rain, blows so curious I'm for and alumina So away the outdoors. what's away industry don't wind site? -- it It in in know keep what easy on the pretty washes we I

it John. get but can inventory. the outdoors, have of the that typically a month, keep you'll two typically on capacity smelters. we keep We have months dip lower don't than that of definitely And our months capacity based inventory to We see schedules around ship to in of couple down a keep of each

The the place in had alumina is water. on ships inventory can other be that

for down, fact the inventory alumina prices the fundamentally that's been, market I you the versus That's you know, spiked when as well as alumina stored. alumina. in prices fact of Nikolaev Australia as into then of the alumina because, the Hope helps. tons being simply cutoff having the ban that was market inventory went is of that and But And Russia into and not only aluminum in to the alluded taken out fell metric quickly that put went the million because rest place, the essentially, Roy the going So back that there's is market, as industry of why, X.X really into it alumina places world. long back down different. a have lot think been two that aluminum

Thank you.

John. Thanks,

Markets. And Please last Capital ahead. BMO with come go question our will from Gagliano David

just and curve on potential I Hi. technology, sit global in given Thanks my the future ask to if for all ELYSIS wonder where a want taking portfolio Alcoa's with were there by there. would Alcoa retrofitted follow-up. smelters the today? and the question conversation I cost the the ELYSIS theoretically,

portfolio than the would of we Well, The fact we lower our that would what a be technologies. for operating say costs be run XX% technology. technology is typical ELYSIS

it be least would at savings likely be So XX% you'd that seeing.

would I to you tendency have So a that the curve. push down think

adjustments that over when piece pricing of renewable has content, occurring. you're now energy, carbon that no also that's any the producing is would be to should or I kind matched other carbon because might that able avoid The mention and you carbon that border be aluminum

potential of leverage also So that be another standpoint. source cost a should from

So down of And longer answer it'd I'm anode I think I really can you we've curve facility be an think don't is that it the the answering over the using way if because your correctly, been plant the developing fact be anodes pushing these changed that that you no you'll that your because frequently. need project. -- on very the question get

Okay. that right? a XX% type cash of And CX is That's apples-to-apples. decline, a cost

Yes.

Yes.

Okay. Thank you.

Dave. Thanks,

conference the This to to our session. like any Harvey would question-and-answer Roy for closing concludes over back remarks. I turn

continued thank in for call interest Thanks, joining once again for And and, today your questions and to of you everybody course, Matt. our Alcoa.

July each the execute to you. strategies of continue Bill we everyone be progress safe, other. our to on yourselves In second talking our I please throughout in and Both again will We take the for care quarter year. results. forward look Thank as meantime, to and

presentation. The conference concluded. now today's Thank attending you for has

disconnect. now You may