Century Aluminum Faces $10M Cost Impact from Jamalco Bauxite Quality Decline
Century Aluminum anticipates a $10 million sequential cost headwind due to declining bauxite quality at Jamalco and rising raw material prices linked to Middle East conflicts. This situation could affect the company's profitability in the upcoming quarter.
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Century Aluminum, the majority owner of Jamalco, reported strong earnings but warned of a $10 million cost impact due to lower bauxite quality and rising energy-related expenses. The company noted that the refinery is adjusting its mining plan to address quality issues and reported a $5.9 million expense from Hurricane Melissa's disruption.
A new steam generation turbine at Jamalco, completed in Q1, aims to reduce electricity costs by generating power on-site. Century's first-quarter adjusted EBITDA was $231 million, with expectations for Q2 EBITDA between $315 to $335 million, supported by favorable demand conditions and tariff policies. The reliance on Jamaica Public Service is set to decrease with this new turbine, enhancing operational efficiency.
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