Alcoa backs 2023 alumina, aluminum shipment guidance

The Company "expects 2023 total alumina and aluminum shipments to remain unchanged between 12.7 and 12.9 million metric tons, and between 2.5 and 2.6 million metric tons, respectively. As a result of a prolonged annual mine plan approvals process at its Huntly mine, which supplies the Kwinana and Pinjarra refineries, Alcoa began mining lower bauxite grades in April 2023 from areas already permitted under existing approvals. The reduction in grade will extend the ore supply and provide more time to work through the approvals process. The Company expects lower sequential Alumina Segment Adjusted EBITDA of approximately $55 million in the second quarter related to operating the Kwinana and Pinjarra refineries at the lower bauxite grade, which impacts the refineries with higher usages of caustic, energy, and bauxite and results in lower alumina output. Additionally, the Company expects net unfavorable $10 million impacts as seasonal maintenance and costs associated with the Alumar refinery conveyance system recovery are partially offset by improvements in raw materials and energy prices. For the second quarter 2023, the Aluminum Segment Adjusted EBITDA is expected to improve by $30 million on favorable raw materials, volume and lower production costs, partially offset by changes in value added premiums. In addition, the Company expects $5 million to $10 million in unfavorable impacts associated with the Portland smelter partial curtailment. Other expense is expected to be favorable by approximately $30 million sequentially primarily due to the absence of a one-time charge recorded in the first quarter."