Century Aluminum (CENX) risk factors, FY2024 10-K

Risk Related to our Industry and Business

1. 01Declines in overall aluminum prices could have a material adverse effect on our business, financial condition, results of operations and cash flows
2. 02Excess capacity and overproduction of aluminum may materially disrupt global aluminum markets causing price deterioration which, in turn, could adversely impact our operating results, sales, margins and profitability
3. 03Electrical power represents one of the largest components of our cost of goods sold. As a result, the availability of electricity at competitive prices is critical to the profitability of our operations
4. 04Loss or disruptions in our supply of power and other power-related events could adversely affect our business, financial condition or results of operations
5. 05We may be unable to continue to compete successfully in the markets in which we operate
6. 06Curtailment of aluminum production at our facilities could have a material adverse effect on our business, financial position, results of operations and liquidity
7. 07The restart of curtailed capacity at our Mt. Holly smelter is subject to certain risks and uncertainties
8. 08Future options with respect to our Hawesville smelter remain subject to strategic review
9. 09Increases in our raw material costs and disruptions in our supply of raw materials could adversely affect our business
10. 10We may be unable to realize expected benefits of our capital projects
11. 11Certain of our raw material and services contracts contain "take-or-pay" obligations
12. 12We have historically derived substantially all of our revenue from a small number of customers, and we could be adversely affected by the loss of a major customer or changes in the business or financial condition of our major customers
13. 13We require substantial resources to pay our operating expenses and fund our capital expenditures
14. 14International operations expose us to political, economic, regulatory, currency and other related risks which may materially adversely impact our business
15. 15Unpredictable events may interrupt our operations, which may adversely affect our business
16. 16We engage in hedging transactions which involve risks that could have a material adverse effect on our business, financial position and liquidity
17. 17Our acquisition of a 55% interest in Jamalco in May 2023 substantially expanded the scope and size of our business by adding Jamalco’s bauxite mining and alumina refining operations to our existing primary aluminum production
18. 18Jamalco is operated as an unincorporated joint venture, which may pose unique risks to its operations
19. 19If we fail to maintain proper and effective internal controls over financial reporting, our financial results may not be accurately reported

Risks Related to Labor and Employees

1. 20Our failure to maintain satisfactory labor relations could adversely affect our business

Risks Related to Indebtedness and Financing

1. 21We may be unable to generate sufficient cash flow to meet our debt service requirements which may have a material adverse effect on our business, financial position, results of operations and liquidity
2. 22Our substantial indebtedness or any future additional indebtedness could adversely affect our business, results of operations or financial condition
3. 23We are subject to interest rate risk, which could adversely affect our borrowing costs, financial condition and results of operations
4. 24Our debt instruments subject us to covenants and restrictions
5. 25We depend upon intercompany transfers from our subsidiaries to meet our debt service obligations
6. 26Conversion of the Convertible Notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock
7. 27The accounting method for convertible debt securities that may be settled in cash, such as the Convertible Notes, could have a material effect on our reported financial results
8. 28The capped call transactions may affect the value of the notes and our common stock
9. 29We are subject to counterparty risk with respect to the capped call transactions

Risks Related to Cybersecurity

1. 30The failure of our information technology systems, network disruptions, cyber-attacks or other breaches in data security could have a material adverse effect on our business, results of operations and financial position

Risks Related to Legal, Regulatory and Compliance Matters

1. 31Climate change, climate change legislation or environmental regulations may adversely impact our operations
2. 32We are subject to a variety of environmental laws and regulations that may have a material adverse effect on our business, financial position, results of operations and liquidity
3. 33Application of existing and new environmental laws and regulations to us may have a material adverse effect on our business, financial position, results of operations and liquidity
4. 34Changes in trade laws or regulations may have an adverse effect on our sales margins and profitability
5. 35We are subject to litigation and legal proceedings and may be subject to additional litigation, arbitration or legal proceedings in the future
6. 36Our $500 million funding from the U.S. Department of Energy (“DOE”) is subject to review and will be subject to negotiation of specific terms and contingent on our compliance with the requirements negotiated with the DOE
7. 37Our ability to utilize certain net operating loss carryforwards to offset future taxable income may be significantly limited if we experience an "ownership change" under the Internal Revenue Code

Risks Related to Acquisitions

1. 38Acquisitions could disrupt our operations and harm our operating results

Risks Related to Stock Ownership in the Company

1. 39Glencore may exercise substantial influence over us, and they may have interests that differ from those of our other stockholders