Century Aluminum has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the year ended December 31, 2024. The company, founded in 1995 and headquartered in Chicago, Illinois, is a global producer of alumina and primary aluminum, with production facilities in the United States, Iceland, and Jamaica. Its primary aluminum smelters are concentrated in the U.S. and Iceland, with a 55% joint venture interest in the Jamalco alumina refinery in Jamaica.
The report's Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) highlighted the key determinants of Century Aluminum's results, including the price of primary aluminum, cost of goods sold, production volume, and product mix. The company also discussed the impact of Section 45X of the Inflation Reduction Act, which provides a tax credit for eligible domestic production costs, and the acquisition of a 55% interest in Jamalco in 2023.
The report also detailed significant events affecting the company, such as the equipment failure at Jamalco in 2023, resulting in a loss of production and gross margin impact, as well as the temporary impact of Hurricane Beryl on operations in Jamaica in 2024. Additionally, it provided insight into the curtailment charges incurred at the Hawesville facility and the Mt. Holly Power Contract with the South Carolina Public Service Authority.
Furthermore, the report delved into the pricing of aluminum, highlighting the components of the overall price of primary aluminum and the factors influencing its price, including global supply-demand balance, inventory levels, and geopolitical and economic conditions. It also discussed the impact of energy, key supplies, and raw materials on operating costs, particularly the prices of alumina, electrical power, and carbon products.
The report concluded with a detailed analysis of the company's results of operations for the year ended December 31, 2024, compared to the same period in 2023. It outlined the net sales, gross profit, selling, general and administrative expenses, and the net gain (loss) on forward and derivative contracts. The report provided specific figures and explanations for the changes in these financial metrics, offering investors and stakeholders a comprehensive understanding of Century Aluminum's financial performance and operational challenges. Today the company's shares have moved -4.5% to a price of $17.21. For more information, read the company's full 10-K submission here.
