Century Aluminum Co. Files 2023 Annual Report

Ticker: CENX · Form: 10-K · Filed: Mar 15, 2024 · CIK: 949157

Sentiment: neutral

Topics: annual-report, financials, aluminum

Related Tickers: CENX

TL;DR

CENX 2023 10-K is in. Full financials and biz details for the year ending Dec 31, 2023.

AI Summary

Century Aluminum Co. filed its 2023 10-K on March 15, 2024, detailing its financial performance for the fiscal year ending December 31, 2023. The company, headquartered in Chicago, IL, operates in the primary production of aluminum. The filing provides a comprehensive overview of its business, financial condition, and results of operations for the year.

Why It Matters

This 10-K filing provides investors and stakeholders with a detailed look into Century Aluminum's financial health and operational performance for the past fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: medium — As a producer of a commodity, Century Aluminum is subject to market price volatility and operational risks inherent in the manufacturing sector.

Key Numbers

Key Players & Entities

FAQ

What were Century Aluminum's total revenues for the fiscal year 2023?

The provided snippet does not contain the total revenue figure for fiscal year 2023. It focuses on asset values and derivative instrument results.

What is Century Aluminum's primary business activity?

Century Aluminum Co.'s primary business activity is the 'PRIMARY PRODUCTION OF ALUMINUM' as indicated by its SIC code [3334].

When was the 10-K filing submitted to the SEC?

The 10-K filing was submitted to the SEC on March 15, 2024.

What is the company's fiscal year end?

The company's fiscal year ends on December 31st.

Does the filing mention any specific acquisitions or divestitures in 2023?

The provided snippet does not contain information about specific acquisitions or divestitures in 2023.

Filing Stats: 4,453 words · 18 min read · ~15 pages · Grade level 15.2 · Accepted 2024-03-15 16:04:07

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 24 Item 1C. C ybersecurity 24 Item 2.

Properties

Properties 26 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 27 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] 30 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 43 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 46 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 96 Item 9A.

Controls and Procedures

Controls and Procedures 96 Item 9B. Other Information 97 PART III Item 10. Directors, Executive Officers and Corporate Governance 99 Item 11.

Executive Compensation

Executive Compensation 99 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99 Item 13. Certain Relationships and Related Transactions and Director Independence 99 Item 14. Principal Accountant Fees and Services 99 PART IV Item 15. Exhibits and Financial Statement Schedules 100

Signatures

Signatures 105 Explanatory Note On February 21, 2024 we issued our earnings release for the three months and full year ended December 31, 2023 (the "Q4 2023 Earnings Release"). Subsequent to publishing the Q4 2023 Earnings Release, and upon review of the opening balance sheet purchase accounting adjustments included in the final audited financial statements for the year ended December 31, 2023 of General Alumina Holdings Limited, the holder of a 55% interest in Jamalco JV ("Jamalco"), we determined that certain balances required adjustment from those set forth in the Q4 2023 Earnings Release. The adjustments were for the valuation of certain assets and liabilities acquired as well as the related deferred bargain purchase gain and noncontrolling interest impact, which are disclosed as preliminary in Note 2 to our consolidated financial statements. The balances in the Q4 2023 Earnings Release that were adjusted include: an approximately $1.3 million decrease in Property, plant and equipment – net; an approximately $4.5 million decrease in other assets, and a corresponding decrease in total assets; an approximately $92.2 million increase in Deferred credit - preliminary bargain purchase gain and a corresponding increase in total current liabilities; an approximately $12.8 million reduction in asset retirement obligations – less current portion and corresponding reduction in total noncurrent liabilities; and an approximately $85.8 million reduction in noncontrolling interest and a corresponding reduction in shareholders' equity, in each case at December 31, 2023. No changes were made to balances at any date other than December 31, 2023. The net result of the adjustments is that total liabilities and shareholders' equity at December 31, 2023, was adjusted downward by approximately $6.4 million. The foregoing adjustments are reflected in the audited balance sheet contained in Item 8 of this Annual Report on Form 10-K for the year ended December 31, 2023.

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled," "forecast" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may." Forward-looking statements in this Annual Report on Form 10-K and in our other reports filed with the Securities and Exchange Commission (the "SEC"), for example, may include statements regarding: Our assessment of global and local financial and economic conditions; Our assessment of the alum inum market and aluminum prices (including premiums); Our assessment of alumina pricing, energy prices, both in the United States and Europe, costs associated with our other key raw materials and supply and availability of those key raw materials, including power (and related natural gas and coal), and the likelihood and extent of any power curtailments; Our assessment of power prices and availability for our U.S. and European operations; The impact of the wars in Ukraine and in the Middle East, including any related impacts on g lobal energy markets and/or any sanctions and export controls targeting Russia and businesses tied to Russia and to sanctioned entities and individuals, including any possible impact on our business, operations, financial condition, results of operations, and global supply chains; The future financial and operating performance of the Compa

Business

Item 1. Business Overview Century Aluminum Company is a global producer of primary aluminum and operates aluminum reduction facilities, or "smelters," in the United States and Iceland. Aluminum is an internationally traded commodity, and its price is effectively determined on the London Metal Exchange (the "LME"), plus applicable regional and value-added product premiums. Our primary aluminum reduction facilities produce standard-grade and value-added primary aluminum products. Our current annual production capacity is approximately 1,016,000 tonnes per year ("tpy"), of which approximately 307,000 tpy was curtailed as of December 31, 2023. We produced approximately 690,000 tonnes of primary aluminum in 2023. In addition to our primary aluminum assets, we have a 55% joint venture interest in the Jamalco bauxite mining operation and alumina refinery in Jamaica ("Jamalco"). The remaining 45% interest in Jamalco is indirectly owned by the Government of Jamaica. Century's share of Jamalco's production capacity is approximately 770,000 tpy. The Jamalco refinery supplies a substantial amount of the alumina used for production of primary aluminum at our aluminum smelter in Grundartangi, Iceland. We also own 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 our aluminum smelter in Grundartangi, Iceland. Each of our aluminum smelters in the United States produces anodes at on-site facilities. At Century, we aim to provide innovative and reliable aluminum products to our customers, a safe and sustainable workplace for our people and the communities in which we operate, and a compelling value proposition for our stockholders. We seek to operate our businesses in a responsible manner by balancing the twin priorities of (i) maintaining a strong balance sheet across commodity cycles and (ii) making investments to lower our cost structure, expand ou

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