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Alcoa Corporation (AA) Citi's 2024 Basic Materials Conference (Transcript)
AAAlcoa(AA)2024-12-04 17:29

Key Points Company and Industry Overview * Company: Alcoa Corporation (NYSE:AA) * Industry: Basic Materials, Aluminum Production * Event: Citi's 2024 Basic Materials Conference, December 4, 2024 Core Views and Arguments * 2024 Achievements: Alcoa highlighted several key achievements in 2024, including the acquisition of Alumina Limited, resolution of the bauxite situation, and progress in rebuilding the company culture. * 2025 Priorities: The company's main focus areas for 2025 are safety, operational excellence, rebuilding the high-performance culture, and capital allocation. * Financial Performance: Alcoa expects a net unfavorable impact of 20millioninEBITDAperformanceforthequarterduetovariousfactors,includinginventorywrite−downsandcurrencyimpacts.∗∗∗MarketConditions∗∗:Thecompanydiscussedvariousmarketconditions,includingtheGuineabauxitesituation,aluminaprices,andtheimpactoftariffsandregulationsonthealuminummarket.OtherImportantPoints∗∗∗Safety∗∗:Alcoaachievednofatalitiesandnoseriousorlife−alteringinjuriesin2024andintendstomaintainthisrecordin2025.∗∗∗OperationalStability∗∗:Thecompany′soperationalstabilityimprovedsignificantlyin2024,anditexpectstomeetitsproductionandshipmenttargetsfortheyear.∗∗∗Deleveraging∗∗:Alcoarepaid20 million in EBITDA performance for the quarter due to various factors, including inventory write-downs and currency impacts. * **Market Conditions**: The company discussed various market conditions, including the Guinea bauxite situation, alumina prices, and the impact of tariffs and regulations on the aluminum market. Other Important Points * **Safety**: Alcoa achieved no fatalities and no serious or life-altering injuries in 2024 and intends to maintain this record in 2025. * **Operational Stability**: The company's operational stability improved significantly in 2024, and it expects to meet its production and shipment targets for the year. * **Deleveraging**: Alcoa repaid 385 million of debt in 2024 and plans to continue deleveraging in 2025. * Capital Allocation: The company's capital allocation framework includes returns to shareholders, transformation of the portfolio, and positioning for growth. * Growth Ambitions: Alcoa aims to grow organically and inorganically in areas where it can provide returns to shareholders that exceed its weighted average cost of capital (WACC). References * [1] * [2] * [3] * [4] * [5] * [6] * [7] * [8] * [9] * [10] * [11] * [12] * [13] * [14] * [15] * [16] * [17] * [18] * [19] * [20] * [21] * [22] * [23] * [24] * [25] * [26] * [27] * [28] * [29] * [30] * [31] * [32] * [33] * [34] * [35] * [36] * [37] * [38] * [39] * [40] * [41] * [42] * [43] * [44] * [45] * [46] * [47] * [48] * [49] * [50]