Alcoa (AA) 19 Apr 232023 Q1 Earnings call transcript

Good afternoon, and welcome to the Alcoa Corporation First Quarter 2023 Earnings Presentation and Conference Call. [Operator Instructions] Please note, this event is being recorded.

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

Thank you, and good day, everyone.

Roy Molly Corporation and Beerman, Officer. by Executive and Chief today and Officer; Executive joined Harvey, President Alcoa Chief Financial I’m Vice President

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

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

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

presentation Finally, as are our previously website. announced, on the slide and available earnings release

here’s Roy. that, With

and everyone our for Thanks, you to joining Jim, call. thank

We by are Chief Vice Financial President Molly Executive and new Beerman. joined Officer, our today

of and February this all Officer around and is on of environment to assets. our the operating my our As team. CFO stable working he process. as is as continued now and leaders as Alcoans is since you Also, Oplinger, leadership purpose Officer, of Operations year. left her in to a executive help to President Accounting stranger been Executive financial and formal across She and globe safe working advance improvement our to I’m presentation Vice XXXX, CFO, of with former the this outlined Bill where Controller Chief have she Together, company’s a first with the this had reinforce though team slide. executive our drive to my vision production Alcoa’s was recall, our member she’s no her Principal of and leadership And results, quarterly pleased appointed is

for it the all employees as our future. our we responsibly communities. together And It ourselves real produced Alcoa, The aluminum company decisions. potential we our At as the into a importance and more for of whether corporate world investors, actions, operations, society, raw as to make in customers, matters remind in constantly progress. turn make the or work We matters. we in progress matters need will of offices

volatile with some continued operations, on of market assets three as approach means operating challenges lean continue a priorities: profitability work through complexity, cycle. cost-focused our managing commodity as all at to and faced we of phases to which drive environment well strategic of our First, a we with And actively reduce focus to portfolio the

returns That purposefully drive differentiated growth and technical social allocated working to delivery value-add a and quality, advance means our to environmental, commercial than and which sustainably, to margin-focused just to strive through championing by our more third capabilities processes. we priority excellence is And capital products. Second, governance means performance. consistently improve

value to that the work a value maintain to decarbonize balance potential developing and chain. also sheet have aluminum We strong while create breakthrough technologies the

to of $XXX continuing results commitment our In EBITDA result again will quarter, and the deeper first, we by $XXX our million. earnings values we adjusted I’d Notably, saw shortly. safety. particularly, Molly fourth increased once our more key reiterate million, posting into than quarter improvement across But from like financial to sequential metrics. to our the first Alcoa’s a dive

In No fatal remain the have visitors ensure serious matter at quarter, injuries. operate, contractors where safe we not and did to employees, strive any our or we that we first locations. our

accelerate our or However, as learning. opportunities we have we and potential monitor misses near closely continue to incidents, which use to

continuously hold of that continue will injuries safely. ourselves on arrives we and the everyone ensure identifying risks operational and must, accountable safety and work home employees. to to we work improve to environment our to that in could our eliminating We So result

levels operating in negotiated in the slide, adjustments successfully Brazil. and restart Alumar including more to restart you our we of We’ll Ciprián about agreement this that progressing our smelter Spain smelter locations. as see the in call, in of Next, the the later quarter, the full made this of on on some first discuss of we San

recently our expansion an our Finally, low-carbon of family products. introduced commercial team of Sustana

EcoSource includes grades. smelter also Our This existing brand. under grade complements now our low-carbon product alumina brand marketed EcoSource the non-metallurgical

So, go with Molly, to those please the introductory remarks, financials. let’s go ahead.

Roy. Thank you,

were with shipment. the XXXX bottom a of of $X.XX by from net fourth the share attributable Stable moving share million adjusted first were $X.XX, $X.XX flat improved special aluminum saw We Realized remained and broad to X% line. improvement for alumina XXXX. in to and lower while $XXX costs prices revenues up EBITDA, and revenues at million. quarter billion The Adjusted X% improved an on the alumina increasing quarter lower per to to $X.XX, and improved per excluding $X.XX. also aluminum loss considerably, items, both $XX up to from higher reflected improved sequentially, Alcoa from loss $X.X

of the in propelled drivers million EBITDA. closely adjusted the more was across look key increase bridge. improvement $XXX EBITDA of Let’s at most adjusted by The

to Europe, was third-party favorable of was mix non-recurrence to value-add and the transformation. especially ARO favorable to due rod higher lower especially absence And COX currency costs of quarter quarter realized million we metal in sequential spending in adjustment the ‘XX in other fourth improvement. as quarterly prices. from the While improved alumina in Price several bauxite of in the prices dollar, XX% category unfavorable due of the Alumar a and pricing or Norway. the remainder well last primarily The outside as items: quarter impact costs first made weaker the ‘XX, energy higher segments, $XXX and Lower the saw came provided due

appendix. segment been the was help provided This XXXX new the quarter foreign two costs Alumar unfavorable have the EBITDA Alumina due than refinery we combined the smelter. the segment. To previously within segments adjusted first the and higher currency, reported quarterly Other and comparisons, into Bauxite into the Portland the to have with Alumina the segment locations, production performance recast only is Alumina

to product by materials. offset quarter comparable quarter EBITDA API higher on than segments. first Currency Alumina costs, ‘XX was doubled both adjusted basis, partially fourth pricing stronger in and unfavorable more mix, raw production a on segment both ‘XX from Looking the and

For stronger the line, alumina impact, bottom the Aluminum pricing, costs unfavorable lower combined with offset energy value-add costs. while higher metal hit raw prices, costs the and costs currency other segment, outside completely lower lower material

Now, cash to and financial let’s turn metrics other flow.

less working first of key negative million largest While in our cash NCI increased distribution. $XXX use sequentially higher $XXX quarter potential, gains. the EBITDA flow, funds million free build those flow offset adjusted capital driver and increased working was of a of typical quarter the capital net cash

capital again the working the year in to days progresses. dividend and our XX per to share at reduce quarter, net $XX billion. of We billion period adjusted as ended the Cash first $X.X $X.XX paid rose expect proportional million. debt the We $X.X totaling

look inventory. a on and materials cash For let’s flow, at more and raw capital working granularity little

Given segment. the flows. are Aluminum our of petroleum, dominant significance materials Alumina in value of our business: of are coke they for our and profitability for the raw and Caustic our tar materials cash coal inventory, driver Three pitch a both, key and segment,

all their for peaks. Looking index off three past coming are year, the at prices commodities market

coke and well X considerable quarters We prices improvements X into price in as hit we COGS materials it valuations, to shared, cash should inventory related and in the purchase or can raw material flow and said, continue, COGS to valuation with we and previously price flow. are take caustic pitch. improvements as seeing before flow for price statements. our more prices through these inventory These improvement income to be That starts recent and as improvement lower improved quoted rewarded gradual the raw flow trends expect lower cash

to to point, are either our turn expectations second the full our making updates statement cash the items. let’s comments year the and year Now, outlook on At quarter. income not or for this flow we provide for

approximately In Regarding we for Alumina bauxite million impact changes the lower Australia. from an quarter. grades the in $XX unfavorable sequential segment, second expect

we expect recovery the materials maintenance, Alumar in impacts system net addition, impact million changes and and offset by associated energy. volume higher conveyor partially In raw unfavorable are with as seasonal of $XX a improvements

changes a expect million and production of net materials, favorable raw improvement by In $XX are value-add segment, costs the offset in as Aluminum lower partially only we volume premiums.

associated million partial impacts million curtailment. $XX we the In unfavorable to expect Portland addition, $X in with

alumina expect by to $XX we in the be unfavorable cost Aluminum Finally, million. segment

the is EBITDA $XX be taken approximately of onetime a Company the line, million expects operational absence million. approximate the expected million to expense to to quarter. other $XX charge due Below Based second ‘XX $XX tax first pricing, favorable, to in the primarily expense quarter recent on

back I to turn it will Roy. Now,

few Thanks, Molly. and and aluminum alumina seeing Alcoa. we’re Then implications I’d some what with in commercial highlight the like developments specific to potential markets. global a I’ll start to

deficits slight alumina markets aluminum. rest aluminum and world a balance. level, the there a are in markets for Meanwhile, are surplus however, the and both macro alumina in In remain both both for At China, slight regional the of the in products. global

For that secondary if continue lows. of be low Aluminum demand aluminum at the are be increase and to The This With of global decarbonization to up XX% believe and will global by historic Institute the strategies. such the those expected rest require capacity. is aluminum International for demand XXXX XXXX, long global by we a will example, aluminum rise term, to significantly, that to forecasting from baseline world, demand both, will or in inventories, new China insufficient. normalizes primary supplies year, of inventories driven

this slide. the to of Now, moving right hand

of aluminum this some see supply You’ll in year. quarter the first recent changes

supply the side, we saw On restarts. than curtailments more

market flat for which analysts Foundry, may The have high costs support production in that the output they producing strong, The asked demand million is coal the for power. key aluminum, while have are could supply noted is approximately and to world in on Yunnan remains challenging and Meanwhile, generated below have curtailed construction remained demand not restart power X in of X to already tons key some China, been given operating billet slab shortages. and potentially which In in outside and/or markets it rod of and strengthen, Europe eased of province seeing significant North rates. supply market While products. for reduce dependent rolled see automotive smelters capacity soft deficit. further situation was restarts. markets continuing products switch hydroelectricity, is America. curtailments to enough is end the in capacity the of There China, move to metric a supportive in heavily into we interest places that regions, be

production tracing is a regarding a Russian and imported government The first imports. invasion origin products. move In Russian measure metal. punitive for that the implemented Russian taken were strong a on has XXX% as government The metal U.S. various tariffs warehousing tariff also Next, in country’s Ukraine. February, of U.S. the placed these metal the of with

can believe more However, be is we there that done.

continue we government While many smelters Russian advocate Russian smelters sanctions world curtailed, with full remain to Thus, our produce of aluminum. on at origin capacity. to continue rest full for

many to sanction and As customers LME Exchange metal, are Russian as being are of London aluminum aluminum. self the undermine global against warehouses reference threatening a pricing Russian the stockpiled in for reliability Metal tons unwanted

risk may market physical recall, amount the from Russian contract Alcoa prompt aluminum as you unwanted a eventually LME As that was data of concern. of receive becoming disproportionate dislocated the should stocks. would warned LME The at warehouses

increased As warehouses XX% to X% end to LME the the total of the That approximately compares inventories. the Ukraine. of of of in invasion of total stocks prior March, Russian to

which unwanted material further price for into purchase and trend LME’s reference future. We the of warehoused continues, relegated Russian occur aluminum will year will refuses the Russian of the be this consume. or expect a aluminum, the that world If to stockpiling price much to throughout

delisted developments, the to urging strongly full continue our deliverable sanctions to LME aluminum, that Russian a host governments brand. advocate be we as and apply Russian with we origin Given metal are these on

Now, turn developments. own let’s our to commercial

and no We that seen require their increased alternatives customers should look Russian exists as customers Within new some to States. their of have material. Russian result the substantial several to Europe, within aluminum supply United in exported as continue to suppliers’ already materials large be volumes for tariffs contracts could it guarantees products

EcoLum, Last in aluminum fivefold EcoDura commodity-grade sales purity about news a which of foundry, comprised increase is family that manufactured want is better an low-carbon on including range and than recycled I the X content. we our billets, alumina, it alloy in times of products wire, for the with saw nearly products, year, EcoSource rod, EcoLum aluminum industry to We slab, of with highlight offer volumes PXXXX. intensity a and Finally, high emissions average. Sustana

small of last portion in sales a on While these year’s annual are volumes still year, growth our volume, overall of good XX% increased an with Europe. sales expected building in this we’re particularly addition

product I as alumina more as with customers to the well targets. at our mentioned call, our decarbonization continue non-metallurgical EcoSource aggressive line smelter-grade also trend now committing product include this or NMA expect products a dioxide of to industry and SGA to brand we the We EcoSource And as of we top expanded leverage launched low carbon intensity. by competitors. and producer our our with as across The expansion advantages in are are NMA XXXX. These unique our EcoSource a unmatched helps of our

product from is an has calculations a third that greenhouse by industry average deliver party, emissions the half EcoSource can its intensity portfolio verified and has we Our gas that global refinery average. a

Now, I’d of production attention to we’ve turn as ramped to capacity like made quarter up We in reductions in operations. our the our others. several

and Baie they Deschambault, include together, in are facilities operate smelters Canadian near levels. by at Our hydroelectricity, all Bécancour and Quebec, operating three powered that currently we Comeau, are peak

the operating operational we various evaluating our who XXXX had made including site of permanently potential strategic for working fully on the opportunities. close Also stability have a after has decision is development potlines. a idle Warrick in we the been that the for economic two the smelter to and States, options United smelter asset, States, land It new now United owner, sale. transferred March since In the Intalco to at the in improved

Our job which a curtailed manages has closed uses. good transformation and new position for sites, site this group, done productive to

which continuing of to XX% are Alumar accelerate is the the refinery. conveyance restart flow temporarily Ship-to-Shore a the bauxite smelter, halting On and we co-located includes to a Alumar producing system alumina also refinery. Brazil, approximately with at In XXth, of collapsed production. of March the capacity continues now

restore to and did While investigating great activities to refinery a our to and flow, critical root completing enabling These teams job the the the operate. safely repairs failure the were repairs to swiftly. cause, thus teams them in executed continue time-sensitive safely important

building is Now production. gradually back are on-site to that again inventory refinery, delivered being ramping we and bauxite the the up

reach production levels to is of month. by end full expectation Our this the

have period. from refinery the alumina to We shipments this continued of make all through customer

Now moving production refinery, the rate the Spain. the Ciprián and natural to high cost mitigate year includes the fully help At gas which refinery Europe complex, our in reduced and curtailed smelter. of our last San we to

approximately capacity most tons of and rate We the annual X.X the to now are at conditions. operating run refinery’s of continue given million advantageous XX% market analyze

For commence phases, purchase the have support we in two sourced pending January workers’ the restart the in reached agreement a portion process of XXXX. wind in representatives permitting, San power to can agreements successfully the farms. smelter, smelter’s an currently Ciprián construction of February, beginning with the that We need, long-term development and wind

agreement forward with this As workforce, competitiveness we future our help also facility. projects part are support this the restart and of capital the with moving will of that

the Norway, In potlines continue at Lista X operate to smelter. of X we the

prices. X was line to recall will spot curtailed year energy last You due exorbitant

as pot for our other is have Meanwhile, near during stably Lista’s We our fixed stability energy markets. provides now costs XXXX, X in complement Iceland. and Mosjøen, through our full operating potlines facility is volatile Norwegian which energy short-term smelter, highly Fjardaál

venture aluminum share annual per Finally, discuss is its capacity metric of slide, let’s total tons Australia. of Portland capacity. the approximately production on reduced its Alcoa’s year. XX% the joint to March, In this XXX,XXX

statewide We shortage challenges curtailed. have stability first gas. production curtailed of site, to to experienced to had digesters restored decision of made X related anodes. of this due the we At It keep which our a at X Kwinana rodded was refinery, natural the

extend extracting the Western commented keep extended us Australia, curtailed. second this quarter’s we bauxite Given beginning year, prompted Western presentation. mine approved in our have bauxite has for an during we previously also approvals areas this Delays approvals digester Australia in lower-grade earnings of in quarter process process to mining our last as mine in by in to decided

to a like we for little Western our particularly where about to more Australia, approach in mining responsible operations I’d mining globally and our talk Next, have about years. XX bauxite region operated a

core Sustainability to First, differentiate appreciate has expectations that I one understand company. mining priority that operations. helps been have at we overriding the stress our to that Alcoa, want and and focus for increasing our it’s stakeholders

expectations the engagement our strive fact, mining. safe strategic a commitment to our advance we forward. and We our In success it’s bauxite moving that key including to and on after during our communities with stakeholders’ why believe have maintain operations, sustainably. proactive is before, delivering We to priority responsible to

We practices evolving, world our also improving we continually to and is committed know modernized and the expectations. are meeting

aluminum aluminum in aluminum-intensive world other in in the As we aluminum the world host decarbonization be address the mining, future industry, ambitious that to can are the a on that vehicles, of will fact mine must the our Producing lose to way. is work evolving create future intend we the are help for on mining those way renewable We critical because and that it’s the but to will for challenges and the and It’s used that and facing improvement energy be sight and and a important cannot they needs numerous products meet more electric responsible expectations sustainable now is communities, how implementing focused right bauxite a protects mining goals. needed. delivering now whenever we done require environment value future.

Willowdale. X mines, we for attention Currently, our areas Australian have of Huntly significant and Western

that do can additional and we negatively drinking water plans. environmental, and operations, biodiversity. impaired to The are record. intend why that forest the mining long economic first measures In That’s of restoration detailed history and in the protection supply working our currently is assessment second protection its a Australia, water of technical and on of our compromise is the included we not the we the drinking public Western have through of in be never

of biodiversity Northern the protecting Jarrah also We committed the are to Forest.

back successes land, have done and we the first company mining are companies rehabilitated we and been our rehabilitation are significant Today, to Among to have evolve continue area taken Australia to early of long plantings in hand rehabilitated areas. pride at of in and XX% about our mining was intend ever Western this. have accelerating different for be one all areas many to including we to forest. officially mining the few of from developed stages improve in efforts. a rehabilitation have again, But in cleared growth Australia open to We

work point Willowdale water modernizing supplies approvals restoration cooperatively government framework focal Huntly and on our we and our for as regulators Protecting are with mines.

this reduce through can also considering process. social impacts We we how are potential

Now, let mines on The minutes subject basis. are a Willowdale annually that with current our rolling and is me approvals spend conducted currently a to few situation Huntly permitting. mine explaining bespoke a process X-year

we last permitted to approvals process In framework. and said using means under taking increased expectations lower As prior in areas is this extending response caustic these delays, with than already iterations modernized That less approvals. towards quarter, or aluminum. to longer mining bauxite quality a mining are a existing we producing more in due grade

this of for quarter first plans Australian year, the a Environmental to our party Authority Huntly and third Protection current assessment. for during Also, and mine Willowdale future Western referred the

referral the of we initiated operations our mine. North as IV This regions trade. continue the with state first Western the delays result that had bauxite Holyoake planning we an here Australia in EPA to note bauxite to extension future of which quarter in it projection grade the in at is these will Remember until It’s and expected to commonly to likely the Myara Huntly important of included least future our known areas, that assessment development and further own new of XXXX. EPA bauxite prior have process for impact third-party process assessment. The Part the proactively this to reach requires of considerable referrals,

and this enhanced statutory current be transition operations. applied regions, the can protections and current adapted provide our mining successfully future Huntly process believe process be for we to environmental to As to for we Willowdale

with these to continue we government noted, relevant bodies support approvals processes. annual As to work

benefits is evolving whether require Australia information committed our We complex that the maintain we vital for from of fully operations are EPA Western and a referrals protect are also the expectations economic and and agreement to responding government collaborative state are support the stakeholder to to meet requests the assessment. authority’s the valid third-party environment, reaching situation, provide. This to a the with consideration and

want In to our from three I summarize closing, key quickly elements today. presentation

quarter. First, we our earnings and debt. with billion to grew $XXX strong metrics EBITDA the $X.X also sheet adjusted during and saw key improvement in we a cash first net low in maintained balance We our proportional million,

operations. to our in We improvement and drive continue financials our further

their While need in perspective, priorities operational we we on we into solve, reality. we help direction, to continuing year work it than by proud every minute, they look to it have laser-focused have globe challenges the and leadership improvement, the XX,XXX continuously but set of improve. ground make stability and that every progress. these we improvements shift I more on and day. seeing the across teams as what They and our on turn do forward the every are a the the progresses. employees are to consistent report From we I’m to commitment

across fundamentals and our grow is strong, future long-term a suited is remain the seek materials carbon of to including ideally supply vehicles highly energy strong. applications, for making the our infrastructure. Finally, Demand Aluminum recyclable, electric raw conductive wide customers lightweight, it and expected metal of in chain. renewable range as for lower industry the

production of more a under the and advance future. technologies in support are to industry through recycling aluminum deliver development aluminum working to our decarbonize we We to sustainable have reinvent technologies solutions sustainable for vision

that, we do and Molly ready Operator, to questions. today? your I have first And accept for the in with question are who our line

comes Research. with question ahead. Dudas from Michael [Operator Instructions] first our go And Please Vertical

stay somewhat, First world and on in energy downwards still capacity even the prices view? restarts, it energy in corrected outlook low, though uncertainty the and even demand more capacity restarts difficult for marketing outlook power if the rest question of is and given prices make is your observations lack of geopolitics, your have the

that one. let Yes, Michael, handle me

Europe. pricing and foremost, and that particularly we say what is seen down in first So have I’d come

to prior So it it is priced significantly in better, still the but Ukraine. was invasion significantly than higher

to in isn’t we’re in relief seeing drive aluminum shift ability really but in to fundamental the perspective, my enough a so, Europe. still smelt relief, it And

I the essentially you second our in number set the a demand coming speaking, side, of volumes interest it we’ve own against there. as Europe. still it their at And side Russian The of is in means metal, got realistically sanctions out on particularly putting look demand of think of that more companies

And are tight. pretty so, there’s margins available. demand It’s that the just

you margins fact that the take across So, are aluminum tight down. are industry the They coming still costs when high. because are

next we look these we’re thin. raw Margins to to are materials when So continue going out quarters, still see relief.

the from justifying energy So average are when incentivizing the high or around prices margins are and thin significant world, not it’s just restarts.

both more balance or some bit power is seeing propensity primary or little That’s of some slight prepared on alumina just some to markets there deficits you’re China the closer one versa, given market be challenges for observation. and where your be the to in would and follow-up And the relative the given oversupplied or some of or of remarks side? deficits demand my a a dynamics you or alumina in having aluminum. actually vice the to challenges discuss of Can of

power the Michael, Yes, not thinly provinces. balanced in enough the really on example, in But demand really there’s at could think the answer right? it’s a southwestern I think look move the are either supply has markets And good, to that got aluminum, just in and I for -- You strong both China, be direction, good increase. side, question.

deficit, bigger ends likelihood with in whole so world example. curtailments, an further seeing as a And for even more which it up which an then into the we’re drives deficit the means them

they’re with all necessarily better available. different not it’s natural of gas again, perspective, side, and it’s from energy different the significantly -- In where other but they’re a gas On are prices were natural still they sources were, that alumina the than they -- right? Europe, increased

and in and this more loss why see likely a running So our really extremely margined it’s we’re is San in we or refining it refinery, maker. means that is either Ciprián thinly Europe, XX% at difficult

So markets are finally my both point really markets balanced. -- is, both

short which going when just so, hard we it’s they’re And go. to at way to look the term, call

the either. I the look be sources aluminum term. when energy bridge convinced as demand in at there about coming vehicles, capacity and to on infrastructure, able aluminum enough term to at that’s realistically new going need electric able seeing look line enthusiastic to going isn’t for demand am are somehow longer and to a just long in and or renewable to demand order real of the And you come where to because answer Now, on expectations the we’re you part to that answer the be that alumina new

so to a And long-term all is finely and sort of to say very that future. some at going together of get balanced that in sort much point, positive have medium- balanced where today, this to comes to market finely we’re we a more

The from Riley B. Pipes Securities. with ahead. Lucas next question comes go Please

would aluminum in that. Thank industry think even your And really on of what And kind that I Would where higher prices world, aluminum of the pound. are in perspective the $XX-plus things aluminum sort in off. you per question this see today just answered level Roy, and up of kick $XX, enough prices. $X, question market of a is would there And appreciate that pull also a also you sort have substitution? to there lot I there commentators out applications calling copper you. $X, discipline? for that

and time, you an Yes. pretty it at Lucas, look be tells real you when through in I it see it I’m it can give answer. the there We all that not at least us you sure history is started. will but bases, if closely that gets people the variations and that. two tend fact, in connected play although aluminum. prices a do some comes to to arbitrage And copper cover

course watching think some positives happily us. in also the I has was to a we’re makes it difference up, As that seeing jack certainly -- as copper aluminum well. and big today, prices of to a I big start over price the

we the stay production. fact to right? price the into back inventories ramp and available, to have I versatile. copper the is recyclable, It is be fact is The ability think the and because that tends aluminum you’re aluminum going have runs, up connected. we more very the more they’ll tend it’s But substitution be infinitely to to that available

At key There’s new time, to is point other come to I really your is -- that’s quite going a lot production online. future. the understanding very think of the not same just

that smelters can some got You’ve restart.

potential just the Asia of East, got example, for for Middle You’ve some that, but not of in lot growth projects. happening and Southeast there’s outside a the

place demand working And we’re come not as the that technology an just will Part going is a to post-consumer grows, recycling of I clear new in. that’s as recycling. of to that a that so, that manage breakthrough clear, solution be think on there’s to demand be some happens, substitution better able got And scrap. a area with where we’ve

is but that also going there’s enough be supportive, not metal. So just to

You’re it’s come metal, going to to have primary need going to and somewhere. from

that’s designed out my be the But we’re to figured medium- And what needs in to our that. me stuff be very all to to on leads able long-term so, that’s going how on address industry. to and positive that view

And you I on of restart second the smelter really of utilization wondered reminder -- should that topics, a the appreciate the is update there much question, a that. San on side. And switching think very minimum color I kind Ciprián as we for Thank and for your XXXX? on just color. I plans appreciated on that

permit towards rather then we’ve a on it more do match to be is it the farms, we’ve that takes pointed of lot coming to of new to is And actually with means energy Yes. new XXXX progress contracts the those than and capacity going time construct new because the restart the XXXX. capacity that wind tried What signed, line.

of started get XXXX if to commitment -- the output. January a have Xst. in It’s and it’s I we remember, X% by So, total

at coming of low-priced piece can we glad up That If it’s by get levels. those aluminum and be operational small because on smelting to wind that firm we’d that we in, relatively and of a we it. to capacity have our be up a to it’s new start be end. That’s gets energy, started. ramp commitment really, But fully need we us XXXX. So very October

smelter long energy the into And effort we’ve been to for what able quite lot putting we’re a a matches competitive to of the it think honest, I making Ciprián San the on build side. term. smelter be

Timna ahead. with from Please Wolfe Tanners comes question The Research. next go

shipments the I guidance surprising talking wanted off, a given about kick the it to and just We disruptions. the alumina. was unchanged some thought -- on of aluminum on little I if for guidance could,

So, and other the matter. small I smaller, maybe Alumar brief to I year the understood like is keep or make same. Maybe progresses want were expecting just just refinery you’re to at sure to understood. the volumes I I a improvement but maybe as perhaps they that some was impact, seems doesn’t fully sure want It make

take Hi, Timna, one. I’ll this

bauxite in good on situation. guidance, had alumina to regard WA the So a we the outlook

do tracking the built the Alumar still for that interruption the the we’re the to catch well in And into on So and is year. like expect for to The year. was aluminum, we be target refinery, guidance guidance. up

Great. Okay. questions... more I so have many

made decisions have that I restart. haven’t yet Portland we added on should the

So again, not a one huge that’s XX% volume there, down, aluminum. we’re but on provision the

small. you. that’s somewhat And Got

I So not that how move see the might can needle.

another want the it expect to situation, unfavorable through Okay. to bauxite continue could extended that I I to year. ask, move secured plan beyond exposure Is quarter. assumptions? to And in what’s first benefits to And the in, expecting just lot to well embedded that? I the in a could guess side, you’ll if be clarify, you’re energy lower for the I wanted on questions you’re the pretty expected but sneak But able sneak circumstances mining there? I believe your your of on mine prices, getting I to then, if in about baked one what’s

on as could if Thanks. in the prices. well, one might the that to comment power how year sneaking of through have you just you exposure end So much

Western Molly answer then let question. Let energy I’ll and the me Australia answer

we’re I Western key Australia of government. -- the Australian in midst the in with discussions the still our with is that here think Western

we’re so, endpoint. at yet not And an

-- my in be XX essentially plan working that that takes I’m that and to said I are able to quarter of months reach into built to change the new As change assumption X comments, confident solution. first What it typically mining plan to we’ve XXXX going be is to we that to to then into around develop areas. able on to deploy the collaboratively to to

sort to moving to how it of understanding us be then permitting that we’re we takes that long so, to when process of you our to going be about And to mining detailed going and helps the your do to to build and able surety way quarter have going planning adapt be takes to from next. to and where we’re the of the one mining. we’re It one when move be think grade

that that need able backwards So government. quicker said, we the -- be quicker take one we where can have changing that moving much we that ongoing then like how and takes done, we’ll measures do we away available the the in an to the areas Western to having can bauxite get to it’s finalize grade. clear that we discussion about amount to quarter and that bauxite can extra the of or discussions can we can be that effort be on we’re and of The be infrastructure will reach and from counting surety with what have And that next. government, the -- quicker that quicker Australian very ore the we I we’ll it start when we’ll the

So I sort you impacts, for of can best the And inside as progress. to But turn last of sit I’ll our of XXXX we is it over look Molly, of as XQ that keep estimate today, we at lot think you calculations those we when that. energy. see but it a realize we’ll updated we for that’s

in We $XX list further to running we that small quarter. that Norway. on except the couple everything in do one your actually million had quarters call you’re more piece I question, And with a out profitability site. We we’re of highlighted energy want have right. that quarter smelter back of improvements, of some to the say breakeven. secured get Yes. And pleased ago, could premium Timna, ‘XX do now, that exposure lost third at in is Norway. out for now the near of site

end turnaround So, the Lista of secured through we’ve year. a for the the power where great

next ahead. Very go Independent comes with Research. John The Please Tumazos question Tumazos from

I expect June Aluminum and and something different the tar cost fall we energy? in put increase bits or together pitch in a metal pieces, the quarter? the like to from benefit guess, should $X.XX Trying the $X.XX something like And more which ton segment, and a Alumina segment in a $XX

didn’t I for that. certainly you to out right the ton do John, handy it level. can now. work that we don’t We have

De Alba from with Morgan go Stanley. The comes next question Please ahead. Carlos

question to is coming So, Australia. the back first bauxite situation in Western

for -- guidance unfavorable the So bauxite in for guidance lower-grade on is $XX country. sequential the million impact

be second in a there that my you my Europe segment? situation negative cost million to comment the That between the important $XX if Given are more U.S. into premiums be first at is, of quarter potentially us there you to if the Is this the differentiation you this us on XXXX, until first higher maybe situation little taking level impact first -- we the any to could going should throughout or look quarter will basically where And value-added going question getting, that Alumina provide the detail and are were is how the that first quarter account? extends bit or could and forward? the question. be take until on XXXX, for

work for is volume unfavorable applying $XX million going on to to applying guidance, grade. and caustic, includes of million we’ll at for our impact on reduce Carlos, second now, cost But first, give $XX this look, bauxite about updates million million Okay. bauxite future for you And right the about $XX we the quarter, and and usages to do that energy that see opportunities forward. that. the is $XX

mean, And I comments before. we’re Carlos, Western next forward we essentially Molly’s look the there, too. grades to at to to just lower Australian the tie have running quarters, refineries as we than on

that certain go. to And a doing amount as be there’s we’re learning going so, we of

improve every we that upon operating can we can promises make and until to guarantees And the show can But efficiencies is we so, like learn quarter. that. be that want expectation certain the don’t Molly on that we said, and we can

So as hope for some look to quarter we into we coming you news report next good towards quarters. this future

premiums, but we’re this to year-on-year, with The Coming skies look we is, year, second value-added into the we see when bit strength. came nothing On pretty it crazy and blue half half to into what year continuing see was cloudy. continue a with strength. at more first a we fact the

We’re self seeing the part situation is honestly, more than also is was it it energy sanctioning Part strength, is in lot of better Europe. that a because the of expected.

premiums year, the in impact the that the better we I the negotiate on quarterly into volumes coming and think a end, strength in basis. seeing the we’re So that volumes

to bunch the for a were least situation. of questions lot that, of what successfully North of pass because We now. to be know In a America, do might at uncertainty I there I seem banking there that demand. think was

than in bit particularly on were moving little as billet seen which we’ve the better we’re also times. certainly side, building coming isn’t just of seeing We’re from in quickly But a some seeing and that’s we premiums weakness last construction, other as year. really what

of a sort it’s So, mixed picture.

I think we’re year-over-year improvement. seeing

seeing are much prices the going improvements Europe going energy that what natural look more some seeing going in and China, around out how happen the resolution of to a is hope that look uncertainty sort amount next about what of surety the of some demand We’re -- to at gas some particularly like and with when forward. quarter the in we of continued of we’re

which our more starts market, a in bit into resilience has impacts products. that then think value-added little build to knock the its on I back

So, any interpret we your Infrastructure seen U.S.? from by should on impact meaningful construction we in the last comments the that approved still Bill haven’t year

transferred I Carlos, start money dispersed obviously, we’ve orders governments probably -- and Again, use I’m of in our the can actual to the orders. expectations. it’s seen pretty a announcements a not for be be That’s little to IRA, ideas to breakthrough we’ve But still would that into people to able say around turning interaction bit promote yet. we bunch for through early that into ways and had technologies. a with concepts on-the-ground that of lot help and

meetings very a group, lot that you -- have U.S. table a of there’s to when of enthusiastic be lot up had, a I’ve people the about that got of capacity. some you’ve around Just in are and there the investing the building in tends

us. still bullish, specific see I probably for have but a so, little translate that I’m orders into And to early say, very to it’s

ahead. Emily from Please comes question Sachs. with The Goldman Chieng next go

the around back Alumar that thought smelter I My capacity. a going to to in was be full smelter. first process is X-month just ramping the this

back the environment? the what’s given operational, driving some there pricing Is intentional volumes or of curious there? throttling delay is So it

have get one. were when more, kind the fact the that and a nature. we of expected. quality Logistical we raw it of Emily, Alumar, getting restarting there, take harder materials to Yes. started the operational and that know was I’ll It’s to that needed first used to I that guess, I work I had we just well, from logistical in plant restart

So a started. getting of was we’re disadvantage when bit that

qualities and those smelter It we on have raw honest, operating. I good restart a iron means pots. portion metal the have out the that we needed, be think we’ve already the able been the to because of now we that materials that in of need set issues Europe you next and have of bath hand hot generate you to that some to to

a as relined as them was we keep expected. got have have we started other The been simply Alumar lot -- had been pots but just have that we we stated at failures than expected way, operating to We restart that surprise others with is had for started the them process. them, And as of the get as during relined. to we another those didn’t more we ability not we had long

portion think fact good the idled that that to of number I down time, of for a was it comes years. a

got expected last now back of we of we’re road, restart essentially time sort we the where reported end we’ve the to at on that the the QX. So, on be in

we and that management about of I’m super for that operations. long And real great people right term we’re the the because working and progress. the this, team operators strength of facility think the on and the that contract power have We steady the right enthusiastic have and about making and right I

and the about -- I there. refinery what the maybe rather of Understood. there gas to That today, bring the at wanted makes of environment are is capacity a San I any Ciprián, given where sense. the talk gas pot, refining back the prices the for gears gas Ciprián lot or believe And consideration or San to price to point, contracts shifting there?

she Molly So, I’ll as and if can well. one jump in take quantitative has comments some that

in a I focus a Ciprián. market, They does when pleased done. XX% because that that put again. XX% that on on a you restarting point. really, much refinery And non-metallurgical we’re of to those levels not we’ve great specialized I’ll contracts grade is as They’re what the have create so at things see workforce natural can what very really running can capacity. can you with they’ve bring selling promise back alumina also more a price long And market to very business that for is I’m We’re analyze time, that we they’ve in at and for SGA of almost point advertisement try been up environment have when a great to San it connect short targeting we’re case that essentially never at continuously in running online then, the at capacity tend but more well. we refinery running make the look higher-priced ideal And at And gas and to capacity. some We see prices smelter for alumina operations, be top the price run with down. of that and well. we as gas come natural really what

site there improvement this sequential about did just we million a I’ll that add see $XX for quarter. that

progress. great So

The with go next from question ahead. Alex Citi. Please comes Hacking

do make a decision decide they your next? ability to operate mine practical what is Sort EPA WA. the have what or in a if referral? will of implication that? accept And to accept happens and the referral, state about that plans? third-party whether of on Does quick new just to the not develop any When constrain I that way follow-up

Alex, that take Yes. I’ll one.

another the collection does data specific medium impacts -- are referral. and referral of then into of actually valid, fulfill the means having assessed, for it’s are i.e., which environmental be things. that in and it whether, really EPA -- should to process the should is it assuming Number fact, all sort two midst the valid, we’re environmental deciding be And is there considering phase what So, then project. going the that then in the it determine of requirements where long-term current what the one

So, have estimate take is a that that request. don’t really process will also they data time it’s time. because specific We line reset every some another time have at

And so take to a it’s bit little going of time.

happens give XXXX that first pretty The we essentially add said jump then that structured situations the out by way should feel reason -- next. what hypothetical our to fact the not you standard grade can’t going what the we for out it’s is going mean. what a into for good process is it plays to there’s we’ve really come extending think about is I clear quarter The bauxite we about to and and that should. it process, it assuming what into a that this impact really of does what

EPA operating process the Australian think state at the I go permits and the I all managed around would back as is say to Western referrals discussions the well really as level. the current

biodiversity water ensuring the that we’re accelerate work impacting and the of order rehabilitation best quality that and solve in we to quality, that sure our to and have great efforts. Western and try these is quality all we’re we can that So, place the protecting of sure Australia also has mitigations the making not we doing have that that water sheds the the in of make problems

-- Alex. then where we’re buys this which need can what have government mine of what’s us playing things, to as I appreciate with we the right about hear to bauxite normal to keep think sit an the we the able like question, of of have you those in process you next, indicates is happens Western when next had with order on And soon to out of continue that round and to question we that a I means that as come updated questions grades hear as then to of to is a be now. lot lot tons, of to as there’s So, in sort doing next next. can back what-ifs a will it we and that we we then both set Australian that happening is soon can again. answer our permit the what come Again, agreement -- certain earlier, protect the there,

and dynamic that It’s it’s a do appreciate And a I complex. Thanks. helpful answer. situation

color. for the So, thank you

Then Bank of ahead. next question with Please from comes go America Lawson Securities. Winder

for questions quick Two me.

you First expect be level, XXXX. for ‘XX expectations be quarter you ramp the would for where do would Which be QX in of your expect the to terms QX? heaviest CapEx directionally do and versus

million So Lawson, the CapEx number our and We and the don’t before. sustaining our fourth million at seeking. for have for always quarters $XXX quarter heaviest the still $XXX between handy is period, looking return we’re

be past? it gradual up in Would it ramp the been like has So... a

the up. It’ll gradual Yes. past, follow ramp

to concerns? then, third I’m who EPA, not it, And is case but what key that you the mention referred sure the their and I the party are heard

what regulators. mention approached the water protecting satisfy but to we concerns did reduction we that first sure local provide mining watershed is this. The for mitigating didn’t protect all even have more water The that we are they we Perth, how these make But in can always within that that we so in were, it’s third -- quality. are the concerns our to the applying we’ve really the specifically I to and foremost, a measures Because which erosion always are need we’re sure controlling mention make think to order risk are party, I -- NGO. we need areas that

piece, ask rehabilitating biodiversity, The Forest. are other that they and in Jarrah is course, the about around of how we

forests. on of to plantations, so new restoration been our planet. The what on is that’s at from of we’ve and science side, it’s mine new to habitat I’m as years what immense and proud And develop to XX Jarrah that is way the all the places long very well us Australia. pragmatic side Western able privilege back been the be advanced all to look actually I Forest is way the see to one restore practical an our accomplish. of able on live operating the the there. And seeing most as and in beautiful because relatively for of It

you improved As have our year. year can after imagine, practices

not we’ve after very We to that start all there but the last we’re on cool we decade that forest, using focused are really finished we some biodiversity making sure able rehabilitation. that we we’re super this only was that been have technologies making sure particularly, over developing and preserve

over one in has measure Western were things certificate state. been the -- in of has to companies we of along those for and that, number hand received lines. returned few and So sort the completed of species the And rehabilitation back fact, of that the we completions and then fact, Australian

a we’ve able stuff need So, that places quickly where rehabilitating obviously we we’re That’s legacy been these possibly that but to areas to we can. and to to as accelerate, rehabilitating we better, great we of as sensitive also make always to do. that very need need sure quickly, and we in good, particularly do are be need

be that discussing two So, same really all the that really to are we’re the it’s say regulators. those aligned that our they’ve with happen They to thing questions -- issues about. made with

We we is doing. and that discussions which just consensual need we what again, been to make answer sure that So the we’re between that here need make and very we’ve I I’m collaboration we’re Alcoa. government requested, delivering on those the that think confident to sure have

And question Securities. a go Please is Lucas from Riley with Pipes our B. ahead. follow-up last

throughout call. great this follow-up. Thanks very the detail taking much of And for lots

Roy, for mind have the line of for you for metal that. much breaking the Russian on perspective. given So, very Do London? situation, time potential mentioned Thank in follow-up you kind in is your thank inflows you of a The that you earlier. point LME

of predict hard when think about linear that in out But questions. there last this exactly. Yes. get were too these fashion. to Lucas, inventories it’s rushing. hate X% I started time It’s And always good was to year, to we

We’re left in more distorted. that some can’t now a starts to non-western But when by LME is consumed metal at get be you of I group and only at will the market point, XX%. producers. more small only tell thing warehouses And the

they that fashioned. their are our on to of of way seeing that tariffs because content, go the if because U.S., We’re more significant sensitive then and them more tariffs extremely have could customers to these placed were very products any Russian the

sensible wants. a And get where that’s is so be XX%, metal I a point curtailments the me, And metal world It’s rest me, Russia to not place we that based has clear like price think number we Russian want which That’s just immediately. just a already why no we’re at going LME nobody two, the off seeing in the to answer, not these the just to very warning inventories aluminum that tried very quickly continues metal we capacity. be. are point to best number should the to remarks It believe we’re to going sanctions that sense be that significant to the of to full while my of one. to LME delist based operate is there’s off is

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

in also call want for Alcoa. and that joined everyone relieved a know joining continued questions thank pleasure our it’s side. I’ve have a today. also and it’s just interest here for she’ll over. and first again Vaishnavi, But to I you, at I for be call. the And thanks Thank Molly appreciated earnings privilege once who her me her my to

That’s includes years how today that our the the even on abilities. industry why here. the across have XX future the part doing challenges face will resolving ready building bring running we’ve forward. I As presentation as to the problems. We in strategies and aluminum work truly in and an that stronger the our we day been value This the teams to continued to with know decarbonize. solve long-term products our company focused every today, sacrificing making great breakthrough world and Australia their on on while on outlined not vision for have and to been we work we accordance chain to our example. do, in resilient our confidence technologies, and our of and as We aim That’s even remain we in more values. continuing intend we’re We Western know been for so improvement everything that purpose, we’re importance progress and works aluminum a

be our And for your in when talk once July we’ll to forward look again you everyone. quarter night, today. share Good thanks second meantime, to I time the please results. In again, safe.

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

disconnect. You may all now