XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

Alcoa Corp

Announcement: AA 8-K Special Filing

Performance Analysis:

During the first quarter of 2023, Alcoa faced multiple operational and market challenges that impacted its production levels and profitability. The Intalco aluminum smelter, which had already been fully curtailed since 2020, was announced to have been permanently closed, reducing the company's overall production capacity. The Portland smelter also faced instability and challenges related to the production of rodded anodes, leading to a reduction in production levels. On the positive side, the San Ciprián aluminum smelter has signed an updated agreement for restarting the production process, including increased investments in the facility and workforce protections.

The COVID-19 pandemic and natural gas shortage have negatively impacted Alcoa's operations in certain regions, resulting in temporary production curtailments and a reduction in production levels at the Kwinana refinery. Furthermore, the prolonged annual mine plan approvals process in Western Australia has been causing delays for Alcoa's bauxite mining operations, and the change in mining lower-grade bauxite has affected the refineries by increasing caustic, energy, and bauxite usage and decreasing alumina output.

Forward-Looking Analysis:

Alcoa expects market conditions and operational challenges to continue to impact its business in the near term, including delays in the annual mine plan approvals process. As a result, the company has been taking steps to increase operational stability, maintain consistent improvement, and lower production costs, including optimizing alumina refining operations and investing in new technologies to improve efficiency.

Alcoa aims to achieve operational improvements through a focus on product differentiation, customer relationships, and innovation, prioritizing sustainability and lowering environmental impact through sustainable practices. The company also plans to focus on financial metrics such as cost reductions and cash generation to strengthen its financial position.

In conclusion, despite the challenges, Alcoa remains committed to managing its operations efficiently while pursuing growth opportunities and enhancing shareholder value.

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Alcoa struggles with operational challenges and market conditions in Q1 2023.

Form 8-K - Current report - Item 2.02 Item 9.01

Form 8-K - Current report - Item 8.01 Item 9.01

Analyst Summary: Alcoa Corporation (NYSE: AA) has announced the permanent closure of its Intalco aluminum smelter in Washington State, which has been fully idle since 2020. The closure is due to declining market conditions and high input costs, and the site will be prepared for new economic development opportunities. As part of this, AltaGas (TSX: ALA) has acquired the rights to develop and own approximately 1,600 acres at the Intalco site, which includes transportation and utility infrastructure. Alcoa will record restructuring and related charges in the first quarter of 2023 of approximately $120 million (pre- and after-tax), or $0.67 per share, related to the permanent closure. 

In a statement, Alcoa President and CEO Roy Harvey said that the facility cannot be competitive for the long-term and that the company will continue to engage with stakeholders as it makes this transition. Randy Toone, President Midstream at AltaGas, stated that AltaGas is currently exploring potential development that would align with Washington state and Whatcom County's climate ambitions and provide long-term, sustainable benefits to the community and the local economy.

Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.

Form 8-K - Current report - Item 2.05 Item 9.01

Announcement: AA 8-K Special Filing

Announcement: AA 8-K Special Filing

Alcoa struggles with operational challenges and market conditions in Q1 2023.

Alcoa struggles with operational challenges and market conditions in Q1 2023.

Announcement: AA 8-K Special Filing

Announcement: AA 8-K Special Filing

Announcement: AA 8-K Special Filing

Announcement: AA 8-K Special Filing

Announcement: AA 8-K Special Filing

Announcement: AA 8-K Special Filing

$AA reports Intalco smelter closure, AltaGas acquires site for new economic development.

$AA reports Intalco smelter closure, AltaGas acquires site for new economic development.