Century Aluminum Stock

Century Aluminum Company is a global producer of primary aluminum and operates aluminum reduction facilities, or smelters, in the United States and Iceland.

The company’s primary aluminum reduction facilities produce standard-grade and value-added primary aluminum products. The company’s annual production capacity is approximately 1,016,000 tonnes per year (tpy), of which approximately 307,000 tpy was curtailed as of December 31, 2022. The company produced approximately 771,000 tonnes of primary aluminum in 2022.

In addition to its primary aluminum assets, the company owns a carbon anode production facility located in the Netherlands (Vlissingen). Carbon anodes are consumed in the production of primary aluminum. Vlissingen supplies carbon anodes to the company’s aluminum smelter in Grundartangi, Iceland. Each of the company’s aluminum smelters in the United States produces anodes at on-site facilities.

The company conducts its business with a focus on sustainability, including the health and safety of its people and the communities in which it operates. Through its Natur-Al product line, the company is able to provide its customers with world-class, low-carbon aluminum products that demonstrate its commitment to sustainability.

Primary Aluminum Facilities

Overview of Facilities

The company operates three U.S. aluminum smelters, in Hawesville, Kentucky (Hawesville), curtailed, Robards, Kentucky (Sebree) and Goose Creek, South Carolina (Mt. Holly), and one aluminum smelter in Grundartangi, Iceland (Grundartangi).

Grundartangi

The Grundartangi facility, located in Grundartangi, Iceland, is a primary aluminum reduction facility owned and operated by the company’s wholly-owned subsidiary, Nordural Grundartangi ehf, and is its most modern facility. Grundartangi is in the process of a multi-year expansion project to raise its production capacity. The production capacity at Grundartangi is approximately 317,000 tonnes and is expected ultimately to increase to approximately 325,000 tonnes. Grundartangi produces standard-grade aluminum ingot and a value-added product called primary foundry alloy, which is sold at a premium to standard-grade aluminum.

In late 2021 Century began construction of a new billet casthouse at Grundartangi (the Casthouse Project). The new value-added casthouse will have a capacity of 150,000 tonnes of billet production and is expected to start production in the first quarter of 2024. The Casthouse Project will also increase Grundartangi’s annual capacity to produce primary foundry alloys from its current 60,000 tonnes of capacity to 120,000 tonnes of capacity. This incremental billet and primary foundry alloy capacity displaces standard-grade ingot production, raising expected total value-added product premiums for Grundartangi products. The billet produced at the Grundartangi casthouse is expected to be low-carbon aluminum or Natur-Al.

Hawesville

Hawesville, located adjacent to the Ohio River near Hawesville, Kentucky, is a primary aluminum reduction facility owned and operated by the company’s wholly-owned subsidiary, Century Kentucky, Inc. (CAKY). Hawesville has an annual production capacity of approximately 250,000 tonnes of primary aluminum. In the third quarter of 2022, the company curtailed 100% of production at Hawesville.

Sebree

Sebree, located adjacent to the Green River near Robards, Kentucky, is a primary aluminum reduction facility owned and operated by the company’s wholly-owned subsidiary, Century Aluminum Sebree LLC (Century Sebree). Sebree has an annual production capacity of approximately 220,000 tonnes of primary aluminum. Sebree produces standard-grade aluminum that can be cast into sow and value-added products, including billet, that are sold at a premium to standard-grade aluminum or delivered directly to nearby customers as molten metal.

Mt. Holly

Mt. Holly, located in Goose Creek, South Carolina, is a primary aluminum reduction facility owned and operated by its wholly-owned subsidiary, Century Aluminum of South Carolina, Inc. (CASC). Mt. Holly has an annual production capacity of approximately 229,000 tonnes of primary aluminum. In December 2020, the company began a multi-year project to restore previously curtailed capacity at Mt. Holly. The initial phase was completed in the second quarter of 2022 and returned annual production capacity to approximately 172,000 MT per annum (75% of capacity). See Item 1. Business - Key Production Costs - Electrical Power Supply Agreements below for further discussion of its power arrangements at Mt. Holly.

Mt. Holly produces standard-grade aluminum that is cast into sow as well as several value-added products, including billet and foundry products. These value-added primary aluminum products are sold at a premium to standard-grade aluminum.

Customers

For the year ended December 31, 2022, the company derived approximately 60% of its consolidated sales from Glencore plc and its affiliates (together, Glencore) and approximately 12% of its consolidated sales from Southwire Company (Southwire).

Suppliers

The company has alumina supply agreements with Concord Resources Ltd. and Glencore. Its long-term power supply agreements include Landsvirkjun; Orkuveita Reykjavíkur (OR); HS Orka hf (HS); Kenergy Corporation (Kenergy); and Santee Cooper.

History

Century Aluminum Company was founded in 1995.