CENTURY ALUMINUM COMPANY
This Management's Discussion and Analysis ("MD&A") provides information that
management believes is relevant to an assessment and understanding of the
consolidated financial condition and results of operations of Century Aluminum
Company and should be read in conjunction with the accompanying consolidated
financial statements and related notes thereto. This MD&A contains
"forward-looking statements" - see "Forward-Looking Statements" above.
Overview
We are a global producer of primary aluminum with aluminum reduction facilities, or "smelters," inthe United States andIceland . The key determinants of our results of operations and cash flow from operations are as follows: •the price of primary aluminum, which is based on theLondon Metal Exchange ("LME") and other exchanges, plus any regional premiums and value-added product premiums;
•the cost of goods sold, the principal components of which are electrical power, alumina, carbon products and labor, which in aggregate represent more than 75% of our cost of goods sold; and
•our production volume and product mix.
Recent Developments
OnFebruary 16, 2022 , we detected a cyber incursion affecting some of the servers supporting our global operations. The Company took immediate action by shutting down all impacted information systems and activating the Company's internal response procedures and mobilizing both internal resources and third-party experts to address the situation as quickly as possible. We have since fully restored all of our information systems and rectified all impacts of the incursion. We are still quantifying the expected total financial statement impact of the cyber incursion, both with respect to costs incurred in response and impacts to production, but we do not expect the impact to be material to the financial statements. Pricing of aluminum The overall price of primary aluminum consists of three components: (i) the base commodity price, which is based on quoted prices on the LME and other exchanges; plus (ii) any regional premium (e.g., the Midwest premium for metal sold inthe United States ("MWP") and the European Duty Paid premium for metal sold intoEurope ("EDPP")); plus (iii) any value-added product premium. Each of these price components has its own drivers and variability. The aluminum price is influenced by a number of factors, including global supply-demand balance, inventory levels, speculative activities by market participants, production activities by competitors and political and economic conditions, as well as production costs in major production regions. These factors can be highly speculative and difficult to predict which can lead to significant volatility in the aluminum price. Increases or decreases in primary aluminum prices result in increases and decreases in our revenues (assuming all other factors are unchanged). From time to time, we may seek to manage our exposure to fluctuations in the LME price of primary aluminum and/or associated regional premiums through financial instruments designed to protect our downside price risk exposure. Information regarding financial contracts is included in Note 13. Derivatives and risks associated with such financial contracts are disclosed specifically in our Annual Report on Form 10-K for the fiscal year endedDecember 31, 2021 . We saw meaningful increases in the pricing of aluminum throughout 2021, which has continued through the first quarter of 2022. The average LME price for primary aluminum was$3,267 per tonne for the first quarter of 2022 compared to$2,475 per tonne in 2021, and$1,702 per tonne in 2020. The average MWP price was$794 per tonne for the first quarter of 2022, compared to$581 per tonne in 2021, and$267 per tonne in 2020. The average EDPP price was$489 per tonne for the first quarter of 2022 compared to$272 per tonne in 2021, and$126 per tonne in 2020. Results of Operations In accordance with the recently adopted amendments to Item 303 of Regulation S-K, management has revised its comparison of interim periods to compare the results of the most recent quarter against the results of the immediately preceding quarter. We believe that, due to the non-seasonal nature of our business, this sequential presentation is more useful in identifying current business trends, provides a more meaningful analysis and aligns the discussion with how management reviews the results of the Company. The Company will continue to present a comparison of the most recent year-to-date period and the corresponding year-to-date period of the preceding fiscal year. 28
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The following discussion for the three months ended
Our net sales are impacted primarily by the LME price for aluminum, regional and value-added premiums, and the volume and product mix of aluminum we ship during the period. In general, our results reflect the LME and regional premium pricing on an approximately one to three month lag basis reflecting contractual terms with our customers. Electrical power, alumina, carbon products and labor are the principal components of our cost of goods sold. Power costs can be volatile as a result of a number of factors beyond our control. See "Item 1A. Risk Factors - Increases in energy costs adversely affect our business, financial position, results of operations and liquidity" in our Annual Report on Form 10-K for the year endedDecember 31, 2021 . Our power costs at ourKentucky plants are impacted by capacity demand charges, which are determined based on available power generating capacity in MISO, from which we purchase our energy. The price of such capacity is set by auction in April. Because the clearing price of the 2022-23 auction was higher than in the prior period, capacity demand charges with respect to power usage for ourHawesville andSebree facilities will be increased during the twelve month period commencingJune 1, 2022 . The expected combined capacity demand costs for these two facilities are expected to be approximately$11.5 million per quarter afterJune 1, 2022 , as compared to average combined capacity demand costs for these two facilities of$0.4 million per quarter for the four quarters endedMarch 31, 2022 . In general, our results reflect the market cost of alumina on an approximately three-month lag reflecting the terms of our alumina contracts and inventory levels. Quarter ended Three months ended Sequential Year-to-date December 31, March 31, 2022 2021 March 31, 2022 March 31, 2021 (in millions, except per share data)NET SALES : Related parties$ 433.1 $ 411.7 $ 433.1 $ 268.3 Other customers 320.5 247.4 320.5 175.7 Total net sales 753.6 659.1 753.6 444.0 Gross profit (loss) 93.2 69.4 93.2 (20.7) Net income (loss) 17.7 60.4 17.7 (140.0) INCOME (LOSS) PER COMMON SHARE: Basic $ 0.18$ 0.62 $ 0.18 $ (1.55) Diluted $ 0.18$ 0.59 $ 0.18 $ (1.55)
SHIPMENTS - PRIMARY ALUMINUM(1)
United States Iceland Total
Sales $ Sales $ Sales $
Tonnes (in millions) Tonnes (in millions) Tonnes (in millions)
2022
1st Quarter 134,953 $ 494.8 76,458 $ 247.5 211,411 $ 742.3
2021
4th Quarter 121,549 $ 411.8 79,412 $ 238.9 200,961 $ 650.7
1st Quarter 116,437 $ 275.6 79,260 $ 164.2 195,697 $ 439.8 (1) Excludes scrap aluminum and alumina sales.
Quarter ended Three months ended
Sequential Year-to-date
(in millions) March 31, 2022 December 31, 2021 March 31, 2022 March 31, 2021 Net sales$ 753.6 $ 659.1$ 753.6 $ 444.0 29
-------------------------------------------------------------------------------- Net sales (excluding alumina sales) increased by$100.7 million for the three months endedMarch 31, 2022 , compared to the three months endedDecember 31, 2021 , primarily driven by favorable volume and sales mix of$64.7 million as well as favorable LME price realizations of$36.8 million .
Net sales (excluding alumina sales) increased by
Quarter ended Three months ended
Sequential Year-to-date
(in millions)
69.4 $ 93.2 $ (20.7)
Gross profit increased by $23.8 million for the three months ended March 31,
2022 , compared to the three months ended December 31, 2021 , primarily driven by
favorable LME and regional premium price realizations of $36.0 million as well
as favorable volume and sales mix of $33.1 million , partially offset by
unfavorable raw material price realizations of $43.7 million , and increased
operating costs.
Gross profit increased by $113.9 million for the three months ended March 31,
2022 , compared to the same period in 2021, primarily driven by favorable LME and
regional premium price realizations of $246.0 million and favorable volume and
sales mix impacts of $14.2 million , partially offset by unfavorable raw material
price realizations of $81.3 million , unfavorable power price realizations of
$63.2 million , and increased operating costs.
Quarter ended Three months ended
Sequential Year-to-date
December 31,
(in millions) March 31, 2022 2021 March 31, 2022 March 31, 2021
Selling, general and administrative
expenses $ 11.7 $ 18.6 $ 11.7 $ 16.1
Selling, general and administrative expenses decreased by $6.9 million for the
three months ended March 31, 2022 compared to the three months ended
December 31, 2021 , primarily driven by a reduction in share-based compensation
costs following retirements and other departures amongst our executive team
during the current period.
Selling, general and administrative expenses decreased by $4.4 million for the
three months ended March 31, 2022 compared to the same period in 2021, primarily
driven by a reduction in share-based compensation costs following retirements
and other departures amongst our executive team during the current period.
Quarter ended Three months ended
Sequential Year-to-date
December 31,
(in millions) March 31, 2022 2021 March 31, 2022 March 31, 2021
Net gain (loss) on forward and
derivative contracts $ (56.7) $ 26.8 $ (56.7) $ (98.1)
Net gain (loss) on forward and derivative contracts decreased by $83.5 million
from a gain of $26.8 million for the three months ended December 31, 2021 to a
loss of $56.7 million for the three months ended March 31, 2022 , primarily
driven by increases in LME and MWP forward prices, partially offset by gains on
Nord Pool derivative contracts due to Nord Pool power price increases.
For the three months ended March 31, 2022 , net loss on forward and derivative
contracts decreased by $41.4 million compared to the same period in 2021
primarily due to a decrease in total volume hedged as well as gains on Nord Pool
derivative contracts due to Nord Pool power price increases. See Note 13.
Derivatives to the consolidated financial statements included herein for
additional information.
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Quarter ended Three months ended
Sequential Year-to-date
December 31,
(in millions) March 31, 2022 2021 March 31, 2022 March 31, 2021
Income tax benefit (expense) $ (1.7) $ (13.2) $ (1.7) $ 2.3
For the three months ended March 31, 2022 , income tax expense decreased by $11.5
million compared to the three months ended December 31, 2021 , primarily driven
by net losses from our consolidated U.S. results, which were driven by net loss
on forward and derivative contracts recognized during the current quarter.
We recognized a $1.7 million income tax expense for the three months ended
March 31, 2022 as compared to income tax benefit of $2.3 million in the same
period in 2021 primarily driven by improved operational results from both U.S.
and foreign operations during the current quarter. See Note 7. Income Taxes
to the consolidated financial statements included herein for additional
information.
Liquidity and Capital Resources
Liquidity
Our principal sources of liquidity are available cash and cash flow from operations. We also have access to our existingU.S. andIceland revolving credit facilities (collectively, the "revolving credit facilities") and have raised capital in the past through public equity and debt markets. We regularly explore various other financing alternatives. Our principal uses of cash include the funding of operating costs (including post-retirement benefits), debt service requirements, capital expenditures, investments in our growth activities and in related businesses, working capital and other general corporate requirements. We believe that cash provided from operations and financing activities will be adequate to cover our operations and business needs over the next twelve months. As ofMarch 31, 2022 , we had cash and cash equivalents of approximately$26.6 million and unused availability under our revolving credit facilities of$127.7 million , resulting in a total liquidity position of approximately$154.3 million .
Available Cash
Our available cash and cash equivalents balance at
Sources and Uses of Cash
Our statements of cash flows are summarized below:
Three months ended March 31,
2022 2021
(in millions)
Net cash provided by (used in) operating activities $ 37.4 $ (49.8)
Net cash used in investing activities (26.0) (7.4)
Net cash provided by (used in) financing activities (3.9) 0.4
Change in cash, cash equivalents and restricted
cash $ 7.5 $ (56.8)
The change from net cash used in operating activities during the three months
ended March 31, 2021 to net cash provided by operating activities during the
three months ended March 31, 2022 was primarily driven by net income during the
current quarter, partially offset by changes in working capital. The changes in
working capital are primarily attributable to timing of receivable collections,
timing of raw material receipts, and pricing increases.
The increase in net cash used in investing activities was primarily due to
higher spending on capital projects during the three months ended
31
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The change from net cash provided by financing activities to net cash used in
financing activities was primarily due to increased repayments on the revolving
credit facilities.
Availability Under Our Credit Facilities
The
We have also entered into, through our wholly-owned subsidiary Nordural
Grundartangi ehf ("Grundartangi"), a $50.0 million revolving credit facility,
dated November 2013 , as amended (the "Iceland revolving credit facility"). On
February 4, 2022 , we further amended this Iceland revolving credit facility and
increased the facility amount to $80.0 million in the aggregate. The Iceland
revolving credit facility matures in November 2024 .
The availability of funds under our credit facilities is limited by a specified
borrowing base consisting of certain accounts receivable, inventory and
qualified cash deposits which meet the lenders' eligibility criteria. Increases
in the price of aluminum and/or restarts of previously curtailed operations, for
example, increase our borrowing base by increasing our accounts receivable and
inventory balances; decreases in the price of aluminum and/or curtailments of
production capacity would decrease our borrowing base by reducing our accounts
receivable and inventory balances. As of March 31, 2022 , our U.S. revolving
credit facility had a borrowing base of $220.0 million , $35.3 million in
borrowings and $102.1 million in letters of credit outstanding. Of the
outstanding letters of credit, $12.3 million are related to our power
commitments, $71.2 million are related to hedging collateral, and the remainder
are primarily for the purpose of securing certain debt and workers' compensation
commitments. As of March 31, 2022 , our Iceland revolving credit facility had a
borrowing base of $80.0 million and $35.0 million in outstanding borrowings.
As of March 31, 2022 , our credit facilities had $127.7 million of net
availability after consideration of our outstanding borrowings and letters of
credit. We may borrow and make repayments under our credit facilities in the
ordinary course based on a number of factors, including the timing of payments
from our customers and payments to our suppliers.
Our credit facilities contain customary covenants, including restrictions on
mergers and acquisitions, indebtedness, affiliate transactions, liens, dividends
and distributions, dispositions of collateral, investments and prepayments of
indebtedness, including in the U.S. revolving credit facility, a springing
financial covenant that requires us to maintain a fixed charge coverage ratio of
at least 1.0 to 1.0 as of any date of determination on which availability under
the U.S. revolving credit facility is less than or equal to $22.0 million , or
10% of the borrowing base but not less than $12.5 million . We intend to maintain
availability to comply with these levels any time we would not meet the ratio,
which could limit our ability to access the full amount of our availability
under our U.S revolving credit facility. Our Iceland revolving credit facility
contains a covenant that requires Grundartangi to maintain a minimum equity
ratio. As of March 31, 2022 , we were in compliance with all such covenants or
maintained availability above such covenant triggers.
Grundartangi Casthouse Facility
OnNovember 2, 2021 , Grundartangi entered into an eight-year Term Facility Agreement with Arion Bank hf, to provide for borrowings up to$130 million in connection with the casthouse project at Grundartangi (the "Casthouse Facility"). Under the Casthouse Facility, repayments of principal amounts will be made in equal quarterly installments equal to 1.739% of the principal amount, the first payment occurring inJuly 2024 , with the remaining 60% of the principal amount to be paid no later than the termination date. The Casthouse Facility shall mature inDecember 2029 . The Casthouse Facility bears interest at a rate equal to USD LIBOR 3 month plus an applicable margin. As ofMarch 31, 2022 there were$40.0 million in borrowings outstanding under the Casthouse Facility. The Casthouse Facility also contains customary covenants, including restrictions on mergers and acquisitions, indebtedness, preservation of assets, and dispositions of assets and contains a covenant that requires Grundartangi to maintain a minimum equity ratio. As ofMarch 31, 2022 , we were in compliance with all such covenants.
Senior Notes and Convertible Senior Notes
InApril 2021 , we issued$250.0 million principal of senior secured notes that will mature onApril 1, 2028 (the "2028 Notes"), unless earlier refinanced in accordance with their terms. Interest on the 2028 Notes is payable semi-annually onApril 1 andOctober 1 of each year, at a rate of 7.5% per year. The indenture governing the 2028 Notes contains customary covenants which may limit our ability, and the ability of certain of our subsidiaries, to: (i) incur additional debt; (ii) incur additional liens; 32 -------------------------------------------------------------------------------- (iii) pay dividends or make distributions in respect of capital stock; (iv) purchase or redeem capital stock; (v) make investments or certain other restricted payments; (vi) sell assets; (vii) issue or sell stock of certain subsidiaries; (viii) enter into transactions with shareholders or affiliates; and (ix) effect a consolidation or merger. InApril 2021 , we issued$86.3 million in aggregate principal amount of Convertible Notes (the "Convertible Notes"), that will mature onMay 1, 2028 , unless earlier converted, repurchased or redeemed. The principal included the full exercise of the option by the initial purchasers of the Convertible Notes to purchase$11.3 million of additional principal amount. The Convertible Notes bear interest semi-annually in arrears onMay 1 andNovember 1 of each year, at a rate of 2.75% per annum in cash.
Supplemental Guarantor Financial Information
The Company has filed a Registration Statement on Form S-3 (the "Universal Shelf Registration Statement") with theSEC pursuant to which the Company may, from time to time, offer an indeterminate amount of securities, which may include securities that are guaranteed by certain of the Company's subsidiaries. As ofMarch 31, 2022 , we have not issued any debt securities pursuant to the Universal Shelf Registration Statement. However, any securities that we may issue in the future may limit our ability, and the ability of certain of our subsidiaries, to pay dividends or make distributions in respect of capital stock. "Guarantor Subsidiaries" refers to all of our material domestic subsidiaries except forNordural US LLC ,Century Aluminum Development LLC andCentury Aluminum of West Virginia, Inc. The Guarantor Subsidiaries are 100% owned by Century. All guarantees will be full and unconditional; all guarantees will be joint and several. Our foreign subsidiaries, together withNordural US LLC ,Century Aluminum Development LLC andCentury Aluminum of West Virginia, Inc. , are collectively referred to as the "Non-Guarantor Subsidiaries". We allocate corporate expenses or income to our subsidiaries and charge interest on certain intercompany balances. The following summarized financial information of both the Company and the Guarantor Subsidiaries ("Guarantors") is presented on a combined basis. Intercompany balances and transactions between the Company and the Guarantors have been eliminated and the summarized financial information does not reflect investments of the Company or the Guarantors in the Non-Guarantor Subsidiaries ("Non-Guarantors"). The Company's or Guarantors' amounts due from, amounts due to, and transactions with the Non-Guarantors are disclosed below: March 31, 2022 December 31, 2021 Current assets$ 455.9 $ 395.3 Non-current assets 882.1 935.3 Current liabilities 409.9 375.1 Non-current liabilities 550.4 556.1 Three Months Ended March 31, 2022 Net sales $ 506.1 Gross profit (loss) 72.0 Income (loss) before income taxes (22.9) Net income (loss) 17.7 As ofMarch 31, 2022 andDecember 31, 2021 , an intercompany receivable due to the Company and Guarantors from the Non-Guarantors totaled$10.2 million and$15.1 million , respectively, and an intercompany non-current loan due to the Company from the Non-Guarantors totaled$485.0 million and$544.2 million , respectively.
Contingent Commitments
We have a contingent obligation in connection with the "unwind" of a contractual arrangement betweenCentury Aluminum of Kentucky ("CAKY"),Big Rivers Electric Corporation and a third party and the execution inJuly 2009 of a long-term cost-based power contract withKenergy , a member of a cooperative of Big Rivers. This contingent obligation consists of the aggregate payments made to Big Rivers by the third party on CAKY's behalf in excess of the agreed upon base amount under the long-term cost-based power contract withKenergy . As ofMarch 31, 2022 , the principal and accrued interest for the contingent obligation was$28.4 million , which was fully offset by a derivative asset. We may be required to make installment 33 -------------------------------------------------------------------------------- payments for the contingent obligation in the future. These payments are contingent based on the LME price of primary aluminum and the level ofHawesville's operations. As ofMarch 31, 2022 , the LME forward market prices exceeded the threshold for payment, however, based on the current level ofHawesville's operations, we believe that we will not be required to make payments on the contingent obligation during the term of the agreement, which expires in 2028. There can be no assurance that circumstances will not change thus accelerating the timing of such payments.
Employee Benefit Plan Contributions
In 2013, we entered into a settlement agreement with thePension Benefit Guarantee Corporation (the "PBGC") regarding an alleged "cessation of operations" at ourRavenswood facility (the "PBGC Settlement Agreement"). Pursuant to the terms of the PBGC Settlement Agreement, we agreed to make additional contributions (above any minimum required contributions) to our defined benefit pension plans totaling approximately$17.4 million . Under certain circumstances, in periods of lower primary aluminum prices relative to our cost of operations, we were able to defer one or more of these payments, provided that we provide the PBGC with acceptable security for such deferred payments. We did not make any contributions for the three months endedMarch 31, 2022 , and 2021. We historically elected to defer certain payments under the PBGC Settlement Agreement and provided the PBGC with the appropriate security. InOctober 2021 , we amended the PBGC Settlement Agreement such that we removed the deferral mechanism and agreed to contribute approximately$2.4 million per year to our defined benefit pension plans for a total of approximately$9.6 million , over the next four years beginning onNovember 30, 2022 and ending onNovember 30, 2025 , subject to acceleration if certain terms and conditions are met in such amendment. Section 232 Aluminum Tariff OnMarch 23, 2018 , theU.S. implemented a 10% tariff on imported primary aluminum products into theU.S. These tariffs are intended to protectU.S. national security and incentivize the restart of primary aluminum production in theU.S. , reducing reliance on imports and ensuring that domestic producers, like Century, can supply all the aluminum necessary for critical industries and national defense. In addition to primary aluminum products, the tariffs also cover certain other semi-finished products. All imports that directly compete with our products are covered by the tariff, with the exception of imports fromAustralia ,Canada andMexico . Additionally, primary aluminum imports fromArgentina are allowed up to an annual quota limit of 169,000 metric tonnes, the first 18,000 metric tonnes of imports from theEuropean Union and the first 900 metric tonnes of imports from theUnited Kingdom are also allowed duty free. Imports that receive a product exclusion from theDepartment of Commerce may also enter the US duty free. Other Items We implemented a multi-year project that began in 2018 to restartHawesville's previously curtailed capacity and return the plant to a production level of approximately 200,000 MT per annum (80% of capacity). We finished these efforts in late 2021 and are producing at approximately 80% ofHawesville's capacity. The rebuild of the fifth and final potline is expected to be completed over the next several years subject to market conditions. During 2021, we initiated efforts to restart the curtailed capacity at our Mt. Holly facility, resulting in total production of 75% of Mt. Holly's full capacity once the restart project is completed. Restart work at the Mt. Holly smelter is progressing and is expected to be completed in the second quarter of 2022, subject to market conditions. During 2021, we announced plans for construction of a new billet casthouse at Grundartangi. The Grundartangi casthouse project began in late 2021 and is expected to continue through the second half of 2023. The Grundartangi casthouse project will be fully funded through the Casthouse Facility. The project is progressing and is expected to be completed on-time, subject to market conditions. In 2011, our Board of Directors approved a$60.0 million common stock repurchase program and subsequently increased this program by$70.0 million in the first quarter of 2015. Under the program, Century is authorized to repurchase up to$130.0 million of our outstanding shares of common stock, from time to time, on the open market at prevailing market prices, in block trades or otherwise. The timing and amount of any shares repurchased will be determined by our management based on its evaluation of market conditions, the trading price of our common stock and other factors. We made no repurchases during the years ended 2018, 2019, and 2020. As ofMarch 31, 2022 , we had$43.7 million remaining under the repurchase program authorization. The repurchase program may be expanded, suspended or discontinued by our Board, in its sole discretion, at any time. InNovember 2009 ,Century Aluminum of West Virginia, Inc. ("CAWV") filed a class action complaint for declaratory judgment against the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial andService Workers International Union ("USW"), the USW's local and certain CAWV retirees, individually and as class representatives ("CAWV Retirees"), seeking a declaration of CAWV's rights to modify/terminate retiree medical benefits. Later inNovember 2009 , the 34 -------------------------------------------------------------------------------- USW and representatives of a retiree class filed a separate suit against CAWV,Century Aluminum Company , Century Aluminum Master Welfare Benefit Plan, and various John Does with respect to the foregoing. OnAugust 18, 2017 , theDistrict Court for the Southern District of West Virginia approved a settlement agreement in respect of these actions, pursuant to which, CAWV agreed to make payments into a trust for the benefit of the CAWV Retirees in the aggregate amount of$23.0 million over the course of ten years. Upon approval of the settlement, we paid$5.0 million to the aforementioned trust inSeptember 2017 and agreed to pay the remaining amounts under the settlement agreement in annual increments of$2.0 million for nine years. AtMarch 31, 2022 , we had$2.0 million in other current liabilities and$6.3 million in other liabilities related to this agreement. We are a defendant in several actions relating to various aspects of our business. While it is impossible to predict the ultimate disposition of any litigation, we do not believe that any of these lawsuits, either individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or liquidity. See Note 10. Commitments and Contingencies to the consolidated financial statements included herein for additional information. Capital Resources We intend to finance our future capital expenditures from available cash, cash flow from operations and if necessary, borrowing under our existing revolving credit facilities. For major investment projects we would likely seek financing from various capital and loan markets and may potentially pursue the formation of strategic alliances. We may be unable, however, to issue additional debt or equity securities, or enter into other financing arrangements on attractive terms, or at all, due to a number of factors including a lack of demand, unfavorable pricing, poor economic conditions, unfavorable interest rates, or our financial condition or credit rating at the time. Future uncertainty in theU.S. and international markets and economies may adversely affect our liquidity, our ability to access the debt or capital markets and our financial condition. Capital expenditures incurred for the three months endedMarch 31, 2022 were$5.4 million , excluding expenditures of$10.2 million associated with the restart project at Mt. Holly and$3.3 million associated with the Grundartangi casthouse project. We estimate our total capital spending in 2022, excluding the Mt. Holly restart project and the Grundartangi casthouse project, will be approximately$40.0 million related to our ongoing investment and sustainability projects at our plants. 35
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