Alcoa (AA) 16 Oct 242024 Q3 Earnings call transcript

Good afternoon and welcome to the Alcoa Corporation Third Quarter 2024 Earnings Presentation and Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Louis Langlois, Senior Vice President of Treasury and Capital Markets. Please go ahead.

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

will Bill 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 we financial in addition, non-GAAP In included measures this some presentation.

For most historical appendix measures found to non-GAAP to financial measures, the directly can reconciliations the in financial comparable GAAP today's presentation. be

EBITDA of reasons adjusted We have Any EBITDA. our disliked. reconciliation non-GAAP to financial in certain noted quantitative means and measures for not reference presented today forward-looking discussion

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

I'd Bill. to to Now over call turn like the

our had on improvement. operational call. you, safety, continuous third Underlying quarter. welcome, near earnings positive Thank and stability performance market of the excellence Louis, the term. maintained are conference pace and to our in XXXX while trends our a and progressing strong strategic quarter priorities both fast third long of Alcoa with everyone, strength We our execution

safety. with start Let's

Musin evidenced eighth year-to-date Operational trend performance. and positive with third in First fourth injuries We've both smelters. culture is straight for of the safety safety had by and believe in or that strong for records aluminum starting quarter drive our in that fatal production Canadian stability behaviors leading the quarter. our quarter, production our indicators on serious we foremost, increasing the and no XXXX the a firmly excellence. focusing by I supports continued lagging operational

Mujin its quarterly the in record. fourth fact, consecutive achieved smelter In production Norway

XX% improved steadily nearly capacity. currently We smelter at the Brazil, stability Alumar operating in also at

through Federal and Protection Myara working process. Western major the Bilateral the Agency and Australian mine with the next Holyoake for Environmental approval North Australian Assessment are process the We regions, Australia

are strategic the our transaction We several actions of from on on the deliver acquisition quarter accretive Limited to economic the the XXXX. continued with realizing have interest Alumina fronts. experiencing resulted increased net completed we elimination since third noncontrolling quarter. this was during we in Additionally, to already and date. The benefits attributable the of alumina is acquisition the X, to currently results transaction The highest on after to market, which August exposure closing pricing income

Alcoa will our to X of next with XX.X% It XX million $XXX from transaction over highlights Ma'aden the cash significant The of of approximately in the is us the months. to the quicker value our joint in for consistent also of our to the added benefited of savings cash current we of and XX move optimize and the absence half which strategy result to close noncore distributions. on The simplify our in companies ventures, decision-making consolidation related structure Ma'aden The asset. in sale tax the stake tax XXXX. expect enabled portfolio first financial flexibility ongoing a business.

our alternatives our our investment to Alcoa publicly interest calls parameters contractual shareholders the our may shares, any see of enhanced traded avoid to changing investment value and to their periods. on provides to the sale the avoid be The visibility If lockup also able explore the of capital Ma'aden's with With this within allows growth. Additionally, hedge represents financial the flexibility. we balance sheet. volatility, of will needed JV for transaction future value us

to over to it us take through turn the Molly financials. I'll Now

X% by on third-party higher you, Alumina price, Revenue revenue was Thank flat the offset shipments. realized at partially sequentially segment, third-party $X.X Bill. billion. lower In average increased

the shipments. to lower due X%, primarily Aluminum third-party segment, In revenue decreased

with $XXX versus Alcoa to million. share basis, or $XXX earnings ] attributable net an per $X.XX was to $XX million, improving net On [ $XXX the $X.XX $X.XX Alcoa by the quarter adjusted to per increased quarter Adjusted income million common million EBITDA was $XX million earnings attributable per of Third to prior share. share.

at of look the EBITDA. key Let's drivers

quarter the average primarily alumina costs. alumina, realized higher primarily Alumina costs The in decreased increased price higher increase Outside offset adjusted production Aluminum as and the prices and material, prices. and costs, due than primarily The alumina was alumina inventory metal due material raw other eliminations energy higher average prices $XXX EBITDA production which requires costs, improved offset energy metal quarter, costs, lower third lower lower and other to other higher cost the for energy million, profit by only and elimination. shipments only raw to higher partially Intersegment offset costs more segment third-party million, The corporate decreased. more raw material, segment $XX prices, unfavorable was segments, partially improvements. decreased by were expected as

September, Let's cash working capital expenditures uses our look and slide. cash. through within be on to continue capital third of at next movements changes Year-to-date largest the the quarter

alumina Within down quarter the outweighed impacts. working sales change, accounts the third prices price came lower sales higher aluminum receivable capital as

in both the capital to payable shipments increase the was due in curtailment. alumina. impacts to due However, rose, an quarter. compared in primarily inventories lower second Accounts Kwinana timing and of from in segments to working of Overall, this payments timing resulted

to included $XX flows primarily payments, million curtailment. restructuring related Kwinana Third quarter the approximately in cash

improvement programs. progress profitability We to continue our

We the end year-over-year the improvements bridge in actions deliver quarter. taken the as apparent the program third have $XXX Overall, by target of $XXX or of the year-to-date are approximately million to of location. savings million

$XXX implemented of to expect to target quarter's million productivity Within the quarter. $XXX raw expect our the run quarter During fourth and the to of of competitiveness rate million savings, savings end $XXX $XX program XX, we million $XXX materials quarter, the we September with in first on and and approximately we the XXXX. through actions contributing target million million expand those company third of deliver the to second in approximately added savings progress million $XXX the its overachieved year-to-date

To our target. date, We million million of have also achieved $XX $XX its has improvements. Warrick progressed portfolio

We due program, $XX could IRA which EMR XXx are clarification Materials on million. further year-to-date worth estimate days on days The U.S. to positive approximately return of still increase Treasury an and capital X.X%. working Direct financial We of the transition we from the and we of the awaiting inclusion Section be deliver and been and on shipments. targeting has other Days smelter holding million is inventory target of The but nearly $XX X due rate run improvements moving turned capacity. curtailment at days has to are savings to sequentially a still XX% its end slow to million currently operating costs, equity basis on of primarily -- the $XX key approximately $XX on to by in metrics. achieved Quintana in to restart The increased XX timing XXXX. million high

net quarter Free third $XX of less cash million $X.X flow a for was acquisition for balance dividend interest to the in nearly issued shares Alumina cash Our stockholder resulting neutral the Limited. billion. added distributions returns, capital including noncontrolling of newly quarter,

As to repositioning needed will the debt XXXX, and delevering us. where priority ahead we to be for look jurisdictions a cash is

for quarter. Turning fourth the to the outlook

outlook adjustments. year has full Our several

the where as XXX,XXX is there the tons. That tons. to increasing for margin. million remains same is of XX.X an approximately low related to most shipping for XX.X alumina We of the is The increase shipments trading are production tons increase outlook million alumina outlook to

improve expect we to corporate expect increase million million. transformation million, $XXX expense other $XX to $XX we expense to also While $XX to million

to creep to to Depreciation changing from $XXX projects and $XXX value-add with from consider expense of project product projects are ARO million production million. changing return, $XXX and due million approximately primarily $XXX payments million additional related approximately several is return-seeking capital to approximately is capital attractive capabilities. changes primarily to Environmental million, rates improving million $XXX completion from Return-seeking we in $XXX as continue to dates.

shipments Regarding sequential fourth and the $XX favorable aluminum performance changes third costs. million of the flat, to from the the we In from quarter, segment, in be lower we Alumina quarter. performance production impact approximately the strong for expect segment, maintaining expect higher

cost by increase to $XX a price the Alcoa Aluminum higher million. adjusted will segment the of While overall expected EBITDA, unfavorable alumina be is alumina in

for in sensitivity volumes. related changes an elimination, expense in $XX of fourth and to standard costs production quarter we due additional profit the inventory Beyond in the to the retained profit intersegment provided expect million higher

expect expect million. fourth we $XX and to contribution related million losses tax equity in EBITDA, week's equity operational last expenses we an Ma'aden to approximately pricing, other to on quarter to approximate $XXX increase to Below million expense LSS. Based $XXX

the As Limited will income full the acquisition, Alumina attributable first noncontrolling quarter net to X. be since interest completing

Bill. to back it turn I'll Now

Thanks, Molly.

market. markets. start since highest the as the a an the increased supply continued in third quarter on in disruptions further update The alumina Let's with to XXXX tight price

the there low and strong further continued gas contributing to Australia. disruptions year, in even Demand to to in So with the we types year, impacts been curtailment is reserves. Queensland, market, majeure refinery seen . Meanwhile, at alumina also production in of depletion Kwinana and Jamaica bauxite inventory smelter safety have in in continued inspections our there tightness the have Northern China, related this growth whether the yet. environmental hurricane majeure Recent no faced raised relatively also due after in be and impacts along alumina confirmed from remained smelters, have but have could far force supply, force questions of events India this in buyers Australia ore which in levels of market. China

to continued year. seaborne result, bauxite a grow As there this imports

year for the to in be to the the of ahead both aluminum balance, projects of needed. scheduled Looking and next come ramp-up market recent resolution market for into the India disruptions will and the back Indonesia

In at aluminum, global record is levels. demand

market been automotive steady Europe, and transportation slowing America North within in packaging Specifically has growth segment recovering. with overall sector. is The some the the of

million capacity making provide year, are a have the supply in China production of to unlikely has Global some will in supply for and building meeting the come net the growing, XX been instead it likely growth with to limited cuts growth metric approaching future. China construction, in aluminum its projects challenging significant ton but China. Europe supply rate and is and any in outside from pipeline. but support recovery a U.S. new from For is cap,

national aluminum is national its In addition, which pricing. carbon now China in that scheme, announced sets trading emissions including

While be increasing carbon development, over primary aluminum to we future. Chinese half does send of up will costs it industry, don't global makes pricing, this that that the in impacts the emissions expect which primary production from immediate message to subject there aluminum see is likely a

the metric supply of that metric first Alba. In summary, from to a tons for third-party that in tons quartile across portfolio bauxite XX to used starting of near- market that Post market agreement the in through tons smelter-grade alumina portfolio, bauxite but of of of million exposure largest alumina our production being the Alcoa very up Limited, environment, positive million longer-term fundamentals approximately of the several well is significant metric had our approximately contract economic provides believe We Alumina pricing of sales. like production. aluminum The and through producers this Alba. take to Limited economic of extension in are the X alumina positioned sales and total to acquisition. alumina exposure metric but of experiencing more market advantage to world's we products for growth. of The long-term Prior and as has X gained to exposure XX.X relation tons are only one used remains Alcoa metric third-party and tons With to exposure produced million the and are our alumina economic alumina acquisition, offering markets million million recently the XX% not only acquisition become XX-year benefits aluminum. to to from apparent, additional our end smelters. to strategic aluminum Alumina had announced as positioned benefit with supply environment opportunities Alcoa the diversified of X well available strong

to well our manage operations all. enhances the Our our our strengthens also and long as supplier ability in positioned position. contract portable serve This Australia position to are alumina alumina

also while year, solutions the a of launch Turning of of challenging to complex. sale for approach to we announced dual-path address operations. economics Spain the the to this operations. working a our viability identify the long-term Earlier process The

sale emerged. XX included robust a viable Following process potential investors, that no offer

both coat the could Together, through through doubt process, alternative through in no which party dealings emerged their market. sale one the developed expertise. Spain's energy an Group individual However, IGNIS and prior IGNIS Alcoa organizations leverage which was

market global access managing in leveraging to management capabilities Our services. Ignis via create expertise in operations market energy energy and value their aluminum and

EUR investments We strategic XX XX million, agreement. million of owner are of owners working the terms would Under our and XXX [ EUR become agreement, from make Spanish Alcoa toward initial cooperation the entering into would EUR a IGNIS ] operations. a The in Ignis. million XX% from

both up returns. additional by be funding position to IGNIS. Alcoa million future XXX XX% it and and cash by is required, must funded will EUR in with Alcoa, required, would by priority XX% shared by be partners if a Additionally, If agreed be

However, upon delivery key local council materially this support and by proposed partnership compensation, capital to to the COX such signed works meet ability higher permitting under is [indiscernible] for governments, flexibility viability employees. developed restricted generation power is of agreement and as of conditional power items residue These project provided approval the a national and cash include the within operating the use needs tentative and PPAs. smelter projects,

critical key We partnership are with the support now success a focusing on the making from stakeholders.

Australian approvals. our last update related Our is mine strategic to

the the Western Australian focused XXXX. process. mining process, through regions, WA key for expect the then, WA and currently process that earlier progressing approval ministerial the the comment receiving XXXX. are on in anticipate recently North assessment bauxite for early XXXX, bilateral approvals Holyoake next XXXX. and public for time grades. said time the commence we we indicative started early EPA period major EPA We line new recent Federal will its in next in are by than no will The to and regions similar mine Myara shown We line Until the remain step quality along

with We to indicative working are line. WA achieve committed and to other stakeholders time the the EPA

future our Our and a engage with continues current been Board has and of range stakeholders to regarding operations.

X-way that the discussion the community for mine near recently which Alcoa and engagement dwelling for provide opportunity forum place is in have Holyoake includes community forms the host between an This members. established We community, region. future

approval the of operating plan closely examining our future by their well conditions by as we the peers for our in As from operations are of operations, experience what we assessing learning region. process as

biodiversity the be all include factors reservoirs, a forest drinking operations. certainty recommended and and accelerating these for Throughout and incorporating avoidance XXXX, new that current for these we in long-term be bauxite stakeholders. Alcoa's may our is environmental the assessment. rehabilitation. By mind modernizing goal our maintain conditions right and responsible increased foundation provide believe focused we areas as they miner approvals We're engagements, recognized protections a of incorporated operations enhanced of securing accepted all and In addressing the for water mining to key key framework from what to distances for mining into conditions and operations, on WA for in strong

of we quarter As fronts. the a third company, are in proud the progress we multiple made on

maintain and an is will positive on operations action-packed and Looking on capitalize be we ahead, deliver fundamentals initiatives, productivity up value pace our fast of shaping to improved to strategic our market stockholders to across execution year. a stability

let's session. Operator, question-and-answer start the

Wolfe comes [Operator Instructions] from with Research. And question Timna first Tanners our

Yes. progress. the ask And guess I just congrats on all I'll Spain. questions about

up What spot? What's production do they approvals profitability or ramp you level And to you government? table? . So would just or optimize your response trying to understand, of the either bring got have initial at the from union assumedly, the to profitability?

Yes.

of partnership, first Let me a address the partnership. a those. we're of few trying all, to just What achieve

yet, finalized knowledge but on We combined to around haven't knowledge expertise the in and are the our the Ignis partnership partnership efforts our aluminum. meant energy and bring with markets, expertise achieving

plant announcement the that to talked to reason that and question, understand specifically, that around your We in so sure have us talked -- the projects viable. will the for stakeholders today viable. we stakeholders, COX specifically it's and on conditional makes of But things, to announcement, the is power the permitting with allow discussion need forward launch access about to a they if we a the cooperations that the to cooperation. chart number cash And is restricted that path getting partnership that make conditional, the those of compensation, that of some

And be so over of we'll months. what working next couple that's the on

Okay.

more to to it So I be would of approval at B questions, the be utilization, those? run don't or plan I I their be, guess and suppose, on that get but on the if asked I could you on what flavor know a your achieve plans a comment confidence -- full might great, helpful I just if you maybe too. And lot would

the back of address we going down a trying were I to And we you we expertise. will combine a a expertise sell trying million time, process site, the we as will same so immerse We partner with the XX our Yes. path step In know a of got went be we end if the they contribution essentially the for viable potential that the work would at site, their entirety support the that viable how asset asset. to up to us they make asset. EUR hope making and In it potential here, the owning was the IGNIS there stakeholders a for were process, XX and not for to XX% where able dual out the can we and get and and that asset, to partnership, buyers to be offer to need.

my made confident far. confident interaction far -- it this the we're had we very that can we're as with that have confidence, IGNIS, and get As we partnership. We good

the be will looking the viability and sure need support the site. ensure that question of the that for the for sitting we're stakeholders the the Now understand to down solvency making and

with And our from next Jefferies. comes question Chris LaFemina

Ciprian Just situation. question a on follow-up San the

it's than additional the So it sort correct, the this And what that? possible EUR for have how where to Alcoa. I will go? place that then asset, is getting what committing But understanding is out like within But you'll far what at to price it of there? lower how more of What we that's the limit go Or if in if as well, environment, it you're is the a I'm a is you? play are mean, viable really if investment fund does back to endgame? up is million of my kind XXX obviously, business. before, significantly guess I was options you that could

of is game to compensation support government of viable and be end get that end the in And The putting the looking million for have million. EUR consider COX support the that to be asset. that is the a you unions XX from we USD XXX game would here way it make that will Alcoa approximately we government when only try we to

to cash we'd site, a to million, is which looking XX addition restricted in to about that, that is In the USD access the there and be operations. fund

least of the survivable need So get operation. that's at we to order X things get to in the

Clearly, we Europe. forward, fairly things got As look markets CBM in Energy change coming are in. changing you've can quickly.

be do try to to in have we what to is So that Molly? that's to and a would get looking site Anything those make order you support viable. investments want add, to

the COX our of Just receive we on compensation, the were through the relates the that for compensation actually running past. smelter. $XX We million not XXXX did when to XXXX

had have all paid we claims million to to government. ran like listed the the and have against since And of those We'd and so access $XX that we've employees.

And we just together, towards the it be that of it tie million million, $XXX using to would make contribution $XXX to million. all clear $XX the

That's helpful.

as tracking of we Did conservative? just million some outcome? you improvement on being imply most of might second, likely with of the that that, Or that target sorry, ultimately are And $XXX And program. be that kind reductions the does Molly, there? ahead that the cost sticking say profitability you're

pros target, off we a to are of the ahead we're the going close year-over-year materials, and accomplish Chris, piece to try as that it. on each we raw was so

setting that have person aggressive diligently an a at We to and plan, recognize used time special savings bit identified We are now these toward aggressive and a take Alcoans plan. any very energy lot of of working every of are really working on delivery. productivity programs XXXX by

into we with we move we're will off budget. this And aggressive XXXX program work then really to as So piece. close a on going and each forward it accomplish

to units within on the the I change in are And entirety across if comment, that folks and company so both the tag highly We're of could plants that focused company, our trying competitiveness. on culture to very resource our the Molly.

So a each you've had, program comparison is overall the about plants heard some the world. sure that not that of plant unit where and around competitiveness of and us increasing to we've in is competitiveness make each plant, that one-off advancing the culture this part to the focused of we're resource talk this becomes targets on the trying

Our next from B. Pipes comes question Riley Securities. Lucas with

many And on fronts. I congratulations more to my want san add on one have progress across the I Ciprian. question

As the potential could partnership component always previous extent would And there. you the point. challenge what if power elaborate to wondered maybe alleviate a choke that I was

in is Thanks, And Spain question. power Lucas. a because a France, That's why it's a in great When in is is Spain you power still reason Spain great question the problem. fundamentally compare uncompetitive. versus

some where get that's France maximum get we ensure in us We trying compensation look far type really transmission costs COX least through France, like be so of Europe term, to get of level some in the and situation, costs, we available at smelter as as they need the highest at transmission that the like underlying like areas a COX compensation and in is which power try in to with can markets they need there. issues the of allows us And credit, assistance the of you places help Spain. us in submission with get to smelter competitive competitive. to same assistance we thing [indiscernible] get the those When power all for what while Ignis to near the things of instance, help and can understanding maximum costs. And situation energy us and works a

on share opinion that, they alumina maybe the points from be quickly discrete medium pricing also lots on maybe disruptions. term? could I strong Very to of the resolved? you markets, side And wondered obviously, a dynamics, separate and supply of might how if your on go through I'd helpful. you Bill, some see else like might constraints bit about pressure where alumina And ask very the you

Alumina Yes. currently. acutely tight is

chart, the alumina is reached our prices $XXX, disruptions, I there today, think and showed top in one off through the list of alumina on of market. that we close I'm sure go $XXX like to liquidity Kwinana refinery, in happen There year. issue. made complexity strategic my cost, we pipeline high in head, the had of that that, earlier good high and Australia one the first facility the Subsequent the our very we currently. shipping Northern for probably something I'll it rationale to miss curtail competitors for of curtailing I was the think little if half year. I in a with

look are at year-over-year, still their that, you XXX% at but If numbers back they not recovering are from capacity.

a in They through. One was our competitors force declared no first of impact, Jamaica roll had storm said there majeure. subsequently

just I anything market. around about in there so believe more that disruption impact further the in than We largely heard probably saw know some the you're this Bloomberg was bauxite on that week, an And but what article And remedy. about discussion that's press, Guinea. stress puts been a probably you don't there. reading

some on within forward we XXXX view XXXX, to point balance our at look would As alumina. that into come

in to and things recur. and of secondly, one speaking to that order disruptions guess growth need to missed. And occur. a to Those up cleared the couple was see India. not India, And in However, Indonesia be I have need of to we're come going I into balance,

storage competitors, may on one impact pond runoff You probably saw water the that an have at had that of their collapse a all production.

and alumina next through view the need tight we that growth see in balance, order would the year. areas, stay will to is first come to those the in So half for our market of back in aluminum

next . Peterson JPMorgan. from comes Our question with Bill

A a to finer nice point. to job I Ciprian back come execution. little want bit the just on San maybe quarterly and

guess inform for? tie today, this provide you potential refinery and the on projects, how PA? side, local does And those? where what So restart? your renewable unions? with in maybe I color how you about any negotiations this Is can the guess government commitments of sort the are on And to the this guess does Just I looking I the alumina governments.

will first, and the answer that the forget to me part let part. get So second first you

million, is a to would release, for On part, and second the we're RDA for there San in the expenses top The so past looking get RDA for, about and Molly Ciprian. as looking permit we the We press cash to what need forward. like that's meters, we COX laid cash, as $XX of of essentially, that, looking that for operating access That's the to out to we the are said, compensation, missing. at we to production. uplift I'm fund the restricted the we're from be XXX uplift Molly, to the that. go unions, able that and

do talking Just the all government development the also not suppliers we're under I -- about within have discussions, our say the develop. our permits have permits. We the the or permits should don't to PPAs all

in San And tracking as do our And the far meters Good point. Ciprian. to up permits the that uplift we'll as come be around to really thinking as ramping XXX they those the in. refinery, we permits need to get

that, the on we'll then at production have San determination make We increase Ciprian. to whether

And Molly. maybe for the next one

I on from coming million up balance the remaining with XX cadence as to in are I year? the XX% can savings sales outlined, But next, $XXX of the sounds come you're plan. you where savings next elaborate months, it and guess, On guess, through XX the well going the to like as a the remaining of over the

third add So and actually through materials we there. run the through overachieved raw million were the that's more a quarter $XX the that's we're on of end to the and rate, about are by of fourth achieved 'XX. quarter. and $XXX of million actions, over we'll and the -- program, first little competitiveness $XX I productivity going Work, quarter get million our mentioned after We've bit that XX. already on in

Kwinana operating fee. And the bit that. of a that into smelter, We XX then have we're waiting $XX rest the We're to X where I captured probably keeping behind decision. the think, go that XX one target. and is only And will through on then [ million are, We've year we the the ] of get the of a on IRA Alumar target.

after will the more go will end that, We of come towards XXXX. but that

next our Dudas from Mike Vertical comes Research. And with question

supply Bill, it's the how there how the see some smelters back a would change on 'XX, the think demand? some bit front is, higher-cost even I maybe Alumina mark, market what you for certainly converse the current balance do to that do talked about and tighten things little on that that could see you decisions for about you near but further? given and a where aluminum on Will be of aluminum side prices

side, we're the seeing as has demand strong. So pretty been demand today, aluminum has actually on

restarts some Europe drive in seen demand. to that the You've continue

As weather only demand alumina our us. stick be can levels how And be whether in profitable and speak smelters determine higher far as around. of aluminum, will it try continue long all we costs drive those alumina will prices cuts at and to at can they these looking would for really to

that you of review and So of of our we cadence -- the regular be. have we a marginal need pretty if a through on profitability smelters, go regular and take basis, action we'll

Markets. Jancic comes question with Capital next from Our BMO Katja

more -- you're very environment you now, remind potentially your about thinking capital the especially how healthy can shareholders? right Maybe to is given starting returning on us allocation

cash. to as need delever to our of XXXX the as to Katja, that for debt reposition early some well is jurisdictions

$XXX priority we Our gone of so about the million higher 'XX. at as will acquisition, a added billion. We net debt with that quarter early completion approach be adjusted Limited has $X.X this bit Alumina our the

company years, release is ago. think equity debt alumina I release a the our still that way today We're value. profitable back Katja, ways one We're of in the action. a down last a year for the than pay over best to is to I than were we company were if value the a more year bigger debt. term near bringing to greatest us you X after down But the equity we limits levels today believe ago look

And be comfortable what you're at? looking you or would to would level the reach be

at we're not looking We're guide options, on to several but Katja, yet. that ready

I more. if just And may, one Okay.

besides durability fact in and there there to Given increased in opportunities the you expected debottleneck seems the could side? the any that strength some market on your alumina the where Are production or in prices. be

in to tons but Brazil, outs creep we debottlenecking opportunities to higher some our constantly execute sites we prices. that's I really largely mean upon additional are try time. taking is We could and quickly large of answer Short working to generate advantage take to no but look that on at the no.

Tumazos Very from next Independent with John Our Research. Tumazos comes question

million. my with if out transfer in and a EBITDA playing towards fourth maybe $XX the for for that Excel $XXX the $XXX segment, was and aluminum spreadsheet, cost fall unit Alumina segment the happen, popped something quarter Alumina the like plugged metal $XXX was million I and on I Bill, would price for price and lower

quarter, the So million we is EBITDA in might the attorneys that answer ballpark let in see the if question? $XXX it fourth you that gain in will

of quarter of at But the and take much better sensitivities -- sensitivities you start a essentially, I'll And take with guidance fourth that put quarter. swing strength in is our the around apply last and this our your during John, the price items. then a this. third fourth Molly we qualitative think at our quarter, will give estimate

fourth flat that. We third good run-up said quarter. aluminum XXXX. quarter -- about So like in what qualitatively. of a about I'm happy I Aluminum Alumina And to relatively rapid elimination. would very better to is it's million to of million an we're say by $XX in profit a the think I better of intercompany a will then fourth see did $XX get the quarter guided on that be prices -- with really Molly little seeing. even in we But bit start. impact basis. change

work sensitivities model. sure try see can your you we build perfectly. our that to always into And don't when make that, it we Sometimes then

it you've think realistic. whether and determination make that, a you once you spits level, it's done So an EBITDA we'll out all let

ask I can second one? a Bill,

Sure.

I've gold period sell of holding tongue [indiscernible] million the $XXX phosphate, the gold or Nubian where actually, area something expires? Barrick and the in market, exploration you that and a Arabian of think Peninsula in a the for copper, their bit seminars very about sat little a play it's copper little long-term Shield there. view serious, in cheek equity for Shield as the do Nubian phosphate as And might a for majority and soon bit considered Basin, are Sea profits geology. or exploring is the modern we the gold how Red ology and you and hot the copper X Saudi is Should on

time let background. opportunity of transaction to to was to for X-year, modern the you $X.X That's take a will on stock. a in $XXX X-year $X.X bit question, period. stock, up That is being billion that a billion. that's staggered give Ma'aden the billion. the that X-year And goes selling the that over be since locked me million of little We a announcement million consideration from the just the great XX.X% lockup worth were period of stock and $X.X John. announced run-up we transaction The $XXX lockup cash

and days. not pretty transaction far, we're of able the XX.X% and but so probably we we that One, we so. highlight to gave us happy, then to that early you wanted did secondly, simplify reasons. And value organizational something think a on the basis the on it's can struck. wanted rightfully that to screen how Street see much much there. own how ownership X your did be we the for crystallize We on see -- daily for to We So, value that

supportive and Kingdom, X we we'll them successful as and copper will super far relationship in personally whether a of phosphate, shares meantime, that I a many years with with see in folks As on In relationship X, then. make aluminum. have have determination gold we and we're being great Ma'aden. X, the great the

going Ma'aden because add the sold is deduct forward, you should your piece. then for XXX,XXX XXX,XXX Spanish reported and production Whenever we restart tons tons for for metal the XXXX

give until what and I to get like. would able ramp-up more guidance we So be in partnership wait John, structure restart will the our we'll on look place,

have I of don't offtake but terms In tons. I handy, volume margin Ma'aden, the have the of

have $X production, give quarter. offtake, on we transaction, is completion January It's we point adjust guidance our again, we us. it. huge taking of the not remove when to in will to stop at with been that the a million per the But So about that and will margin that and XXXX shipments

production Do or you count not? is

Just I believe, yes, shipments, shipments.

with on gets offtake the that Yes. production. onwards. joint count because We sold an shipments venture We don't have count we a

not number. So but production number it's in our our shipments

Carlos with Alba Morgan Stanley. De from comes Question

you is the to agreement Bill you complete the timetable and and with the new for union order that Ciprian, close. ahead a government trying for this you to to Molly, a in go discussions there on are determine with San or timetable whether you

Just a you're turn before longer much the time really negotiation would take sense like to page to the get operating Ciprian continue as ready or how can little bit of of this to asset.

significant entities year. around end the on to a change depending bit Not conditions could of are. that of little a will out what run out we've timetable that XXXX, further the lined go the The believe before. we somewhere cash, into potentially market

we're as to we we get consummated. from essentially can get as hard pushing as partnership So as ensure of can that quickly stakeholders the the right various and the cooperation we level

happen? that you And shop? Okay. of run the just basically out what companies if file or will bankruptcy close Is for point cash, at in time, that

technically Carlos. sure to that, point. on that entity really happen, at doesn't But We're insolvent trying that make the focused is essentially,

that. we're made. is as And will be to What do we've hard some decisions said before, have avoid so -- trying some to

row as EBITDA to Any going this CapEx, increases. second or incremental additional from All how project, details can amounts, And go Okay. CapEx but not any projects? in either a up these much quarter volumes huge return-seeking increases. Any just to is is right. or the CapEx on expect anyway, we that or color

approving have don't we notable series though Carlos, projects from this you'll to be I we're find current don't set. handy. smaller it of that those These are think now. figures Yes a

question with UBS. from Shaw And comes our next Lachlan

thanks Bill time. and for Molly, your

Just one question from me.

sort you process the just scenarios that think the minor ahead -- on the approvals more I'm of whole interested, process and mean might authorities peer like there. potentially Australia pushing the stringent given WA what that for your context of So through and do experience think you just and of I about of you look came pride there scenarios in the I suppose, them. those conditional conditions. how generally how in environmental about that for what the

At started mine early advance annual the approvals the XXXX. that regions for comment approvals the thanks state work the major step our for the set earlier in period and process we're question. public Lachlan, WA the occur We're anticipating the quarter WA Recently, same receiving to XXXX. than on will commence the new in from the we're we mining that's X-year the by next time, in the and to that for Holyoake approval time no continue government first line EPA approvals rolling for So XXXX, continuing North our Myara will process, plan. that on and And XXXX. of in both focused mine our

I EPA stakeholders. committed good we say that collaboratively to So we're committed We're that continue make -- work to WA progress. making very other we with collaboratively sure and can't the the

we're really we making So think good there. progress

question review process. a some of some think good the we through And process. will that the actually the conditions, looked work X that pretty we to As in your we're and WA things have far neighbors around a lot there learn continue we But of between through their as we think at And we companies. acknowledge shape. we their are activities that SouthXX, our in between

to know anything want that, add don't I you there's if Molly. So to

remember, requirements. approval year, new going that, mining add our mine for last we a the process just plan, we of whole adopted through I'd were annual when series

many the So done you that being see conditions to added already now, that. of we've SouthXX

had go new we're different mining looked diferecause them some of So their mine We our into we current built incorporated the them in in through that and those were list. plans did areas. we whole or either majority our plans already mine at had

increases recognize to are carbon cost of of management. some SouthXX, their their related Some other the important to that it's

you we industry of the best. cost We on Pinjara the based industry are gas, at is do we're for the in And running not look that the Australia our running be natural at if change kind will face already refinery, so standard. mechanism same safeguard example,

there So profile have well. as a different we cost

Research. And our Tanners is of Timna follow-up question from a next Wolfe

prices back some of continue to just wanted value-add generation into else or paying great on get have higher because follow the the is debt I regard envelope, of the just anything greater some prepared is I allocation And on that additional to year? projects. in next know in opportunities questions cash, of ability to if can these indeed the up you perhaps pursue down elaborate obviously, capital But alumina and it. prices commodity remarks Molly use line I noted cash cash you there

put certainly Timna, and will will we allocation capital at it cash, we framework. excess look through our

also will we look actions. at returns shareholders. and opportunities, look growth So at at We'll we'll additional to portfolio look other

this delevering rest We will I plans in the through of cash mentioned. coming the is how year to that year along wait to those next see with early

million beginning we issued And important it's year, of the remember $XXX at debt. of the that to

also Alumina took $XXX the roughly in additional transaction. on an debt million We

of As company. earlier, We we be -- But by should there's delevering. I term, in company. bigger are a a near value lot said a value better equity we the think created

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

when our Thank we and speak you call. I in Molly for progress again to sharing joining January. forward further look

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

disconnect. now may You