CENTURY ALUMINUM CO

Previous wording

•the cost of goods sold, the principal components of which are electrical power, alumina, carbon products, caustic soda, natural gas, heavy fuel oil and labor, which in aggregate represent more than 81% of our cost of goods sold; and

Current wording

•the cost of goods sold, the principal components of which are electrical power, alumina, carbon products, caustic soda, natural gas, heavy fuel oil and labor, which in aggregate represent more than 75% of our cost of goods sold; and

Previous wording

On December 14, 2023, the U.S. Treasury Department’s issued proposed regulations implementing Section 45X of the Inflation Reduction Act, which provided guidance on rules taxpayers must satisfy to qualify for the tax credit. The government has incentivized the production of aluminum by offering a tax credit equal to 10% of eligible domestic production costs. Based on the proposed regulations, for the three months ended March 31, 2024, we recognized $11.9 million as a reduction in Cost of goods sold and $0.7 million as a reduction in Selling, general and administrative expenses within the Consolidated Statements of Operations, resulting in an equally offsetting receivable. As of March 31, 2024 and December 31, 2023, we recognized a Manufacturing credit receivable of $57.9 million and $59.3 million, respectively, and as of March 31, 2024, we recognized a non-current receivable of $14.0 million within Other assets on the Consolidated Balance Sheets.

Current wording

On December 14, 2023, the U.S. Treasury Department’s issued proposed regulations implementing Section 45X of the Inflation Reduction Act, which provided guidance on rules taxpayers must satisfy to qualify for the tax credit. The government has incentivized the production of aluminum by offering a tax credit equal to 10% of eligible domestic production costs. Based on the proposed regulations, for the three and six months ended June 30, 2024, we recognized $10.7 million and $22.6 million as a reduction in Cost of goods sold and $0.5 million and $1.2 million, respectively, as a reduction in Selling, general and administrative expenses within the Consolidated Statements of Operations, resulting in an equally offsetting receivable. As of June 30, 2024 and December 31, 2023, we recognized a Manufacturing credit receivable of $57.1 million and $59.3 million, respectively, and as of June 30, 2024, we recognized a Non-current Manufacturing credit receivable of $26.0 million within Other assets on the Consolidated Balance Sheets.

Previous wording

For the three months ended March 31, 2024 and 2023, we incurred curtailment charges of approximately $0.6 million and $7.0 million, respectively. These charges were partially offset by income related to scrap and materials sales of $0.5 million and $0.7 million for the March 31, 2024 and 2023 recognized in Other operating expense - net within the Consolidated Statements of Operations.

Current wording

For the three and six months ended June 30, 2024, we incurred curtailment charges of approximately $1.7 million and $2.4 million, respectively. These charges were partially offset by income related to scrap and materials sales of $0.5 million for the six months ended June 30, 2024. There were no scrap and materials sales as of the three months ended June 30, 2024.

Previous wording

On May 2, 2023, our wholly-owned subsidiary, Century Aluminum Jamaica Holdings, Inc., acquired for $1.00 a 55% interest in Jamalco, an unincorporated joint venture with Clarendon Alumina Production Limited ("CAP"), which is owned by the Government of Jamaica. Jamalco is engaged in bauxite mining and alumina refining in Jamaica. The Company's wholly-owned subsidiary, General Alumina Jamaica Limited, is the manager of the Jamalco joint venture. Jamalco has alumina production capacity of approximately 1.4 million tonnes. We finalized the purchase accounting and recognized a bargain purchase gain of $245.9 million within the Consolidated Statements of Operations for the three months ended March 31, 2024. Our historical financial statements for periods prior to May 2, 2023 do not include the results of Jamalco. Refer to Note 2. Acquisition of Jamalco for further information.

Current wording

On May 2, 2023, our wholly-owned subsidiary, CAJH, acquired for $1.00 all of the outstanding share capital of GAHL, the indirect holder of a 55% interest in Jamalco, an unincorporated joint venture with CAP, which is owned by the Government of Jamaica. Jamalco is engaged in bauxite mining and alumina refining in Jamaica. The Company's indirect wholly-owned subsidiary, GAJL, is the manager of Jamalco. Jamalco has alumina production capacity of approximately 1.4 million tonnes. We finalized the purchase accounting and recognized a bargain purchase gain of $245.9 million within the Consolidated Statements of Operations for the six months ended June 30, 2024. Our historical financial statements for periods prior to May 2, 2023 do not include the results of Jamalco. Refer to Note 2. Acquisition of Jamalco for further information.

Previous wording

Starting in June 2023, we experienced power disruptions due to damage to the Jamalco power generation unit. The equipment returned to full capacity as of the end of October 2023, but we continued to experience some inefficiencies into the three months ended March 31, 2024. These inefficiencies led to higher production costs of alumina capitalized into inventory, some of which was shipped in the period. The cumulative impact of the equipment failure from the second quarter of 2023 through March 31, 2024 was approximately $38.8 million. We are actively engaged with our insurance carriers in connection with this equipment failure to determine the specific amount of coverage available to us, including any applicable deductibles.

Current wording

Starting in June 2023, we experienced power disruptions due to damage to the Jamalco power generation unit. The equipment returned to full capacity as of the end of October 2023, but we continued to experience some inefficiencies into the six months ended June 30, 2024. These inefficiencies led to higher production costs of alumina capitalized into inventory, some of which was shipped in the period. The cumulative impact of the equipment failure from the second quarter of 2023 through June 30, 2024 was approximately $38.8 million. We are actively engaged with our insurance carriers in connection with this equipment failure to determine the specific amount of coverage available to us, including any applicable deductibles.

Previous wording

We saw continued declines in the pricing of aluminum through the first quarter of 2024, which was a continuation of Western demand challenges despite global LME inventory levels near all-time lows in 2023. The following table summarizes the average price for primary aluminum per tonne for the three months ended March 31, 2024 and 2023.

Current wording

We saw continued increases in the pricing of aluminum through the second quarter of 2024, which is driven by limited supply growth and year over year global demand increases keeping inventory levels near historic lows. The following table summarizes the average price for primary aluminum per tonne for the three months ended June 30, 2024 and March 31, 2024 compared to the average price for primary aluminum per tonne for the six months ended June 30, 2024 and 2023 .

Previous wording

The following discussion for the three months ended March 31, 2024 reflects no change in production capacities, other than the continued curtailment of the Hawesville smelter, at our operating facilities.

Current wording

The following discussion for the three and six months ended June 30, 2024 reflects no change in production capacities.

Previous wording

Electrical power, alumina, carbon products, caustic soda, natural gas, heavy fuel oil 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 may adversely affect our business, financial position, results of operations and liquidity” in our Annual Report on Form 10-K for the year ended December 31, 2023. Power costs at our Kentucky plants are impacted by capacity demand charges, which are determined based on available power generating capacity in MISO, from which we purchase energy. The price of such capacity is set by auction annually in April, with the April 2023 auction resulting in capacity prices returning towards normalized levels which has reduced our capacity costs significantly from the prior year. Our expected capacity demand costs for power were approximately$1.5 million for the twelve months ending May 31, 2024, in addition to the market price of power used. We anticipate the capacity demand power costs resulting from the April 2024 auction for the twelve months ending May 31, 2025 to be approximately $3.1 million.

Current wording

Factors — Increases in energy costs may adversely affect our business, financial position, results of operations and liquidity” in our Annual Report on Form 10-K for the year ended December 31, 2023. Power costs at our Kentucky plants are impacted by capacity demand charges, which are determined based on available power generating capacity in MISO, from which we purchase energy. The price of such capacity is set by auction annually in April. Our expected capacity demand costs for power were approximately$2 million for the twelve months ending May 31, 2024, in addition to the market price of power used. We anticipate the capacity demand power costs resulting from the April 2024 auction for the twelve months ending May 31, 2025 to be approximately $3 million.

Previous wording

Net sales decreased by $62.9 million for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily driven by unfavorable volume and sales mix of $53.4 million and unfavorable LME and regional premium price realizations of $49.4 million. The change in net sales of aluminum was offset by $40.1 million attributable to alumina sales by Jamalco, whose operations were not reflected in our results of operations for the three months ended March 31, 2023.

Current wording

Net sales increased by $71.3 million for the three months ended June 30, 2024, compared to the three months ended March 31, 2024, primarily driven by favorable realized LME and regional price premiums of $21.8 million and alumina sales of $65.8 million. The change in net sales was offset by an unfavorable volume and sales mix of $15.7 million.

Previous wording

Net sales decreased by $22.8 million for the three months ended March 31, 2024, compared to the three months ended December 31, 2023, primarily driven by unfavorable volume and sales mix of $16.0 million and unfavorable LME and regional premium price realizations of $4.5 million.

Current wording

Net sales decreased by $77.6 million for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, primarily driven by unfavorable realized LME and regional price premiums of $78.3 million.

Previous wording

Gross profit decreased by $31.6 million for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily driven by unfavorable LME and regional price realization of $49.4 million and unfavorable volume and sales mix of $36.9 million. These factors were partially offset by favorable raw material price realization of $32.3 million and power price realization of $22.4 million, and $11.9 million attributable to the IRA Section 45X credit.

Current wording

Gross profit decreased by $27.1 million for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, driven by unfavorable realized LME and regional price premiums of $78.3 million, partially offset by favorable power price realization of $25.6 million and $23.8 million attributable to the IRA Section 45X credit.

Previous wording

Selling, general and administrative expenses increased by $0.7 million for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily driven by an increase in share-based compensation costs resulting from the increase of the Company's stock price between periods. and partially offset by $0.7 million reduction for Section 45X tax credit.

Current wording

Selling, general and administrative expenses increased by $1.0 million for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, primarily driven by an increase in share-based compensation costs resulting from the increase of the Company's stock price between periods.

Previous wording

Net gain on forward and derivative contracts was $7.4 million for the three months ended March 31, 2024, a decrease of $4.5 million as compared to the three months ended December 31, 2023. The change was primarily driven by decreased losses on LME and heavy fuel oil forward contracts, attributable to favorable fluctuations in the forward prices and volume of contracts settled.

Current wording

Net loss on forward and derivative contracts was $4.0 million for the three months ended June 30, 2024, a difference of $11.4 million as compared to the three months ended March 31, 2024. The change was primarily driven by increased losses on LME and heavy fuel oil forward contracts, attributable to unfavorable fluctuations in the forward prices and volume of contracts settled.

Previous wording

Net gain on forward and derivative contracts was $7.4 million for the three months ended March 31, 2024, a change of $65.0 million as compared to the three months ended March 31, 2023. The transition from loss to gain was primarily driven by reduced losses on Nord Pool derivative contracts which were settled in December 2023.

Current wording

Net gain on forward and derivative contracts was $3.4 million for the six months ended June 30, 2024, a difference of $51.9 million as compared to the six months ended June 30, 2023. The transition from loss to gain was primarily driven by reduced losses on Nord Pool derivative contracts which were settled in December 2023.

Previous wording

We finalized the purchase accounting related to the acquisition of 55% interest in Jamalco, which was acquired on May 2, 2023, and recognized a bargain purchase gain of $245.9 million for the three months ended March 31, 2024.

Current wording

We finalized the purchase accounting related to the acquisition of General Alumina Holdings Limited and subsidiaries, which was acquired on May 2, 2023, and recognized no bargain purchase gain for the three months ended June 30, 2024 and recognized $245.9 million for the six months ended June 30, 2024.

Previous wording

Income tax changed to expense of $0.5 million for the three months ended March 31, 2024, compared to a benefit of $0.2 million for the three months ended March 31, 2023, primarily driven by changes in the jurisdictional mix of earnings on a year-over-year basis. See Note 9. Income Taxes to the consolidated financial statements included herein for additional information.

Current wording

Income tax changed to expense of $1.0 million for the six months ended June 30, 2024, compared to a benefit of $10.2 million for the six months ended June 30, 2023, primarily driven by changes in the jurisdictional mix of earnings on a year-over-year basis. See Note 9. Income Taxes to the consolidated financial statements included herein for additional information.

Previous wording

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 of March 31, 2024, we had cash and cash equivalents of approximately$93.5 million and unused availability under our revolving credit facilities of $208.5 million (including $80.0 million under the Vlissingen Facility Agreement referred to below). Our cash and cash equivalents and unused availability under our revolving credit facilities comprise our liquidity position, which was $302.0 million as of March 31, 2024.

Current wording

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 of June 30, 2024, we had cash and cash equivalents of approximately $41.3 million and unused availability under our revolving credit facilities of $301.3 million (including $80 million under the Vlissingen Facility Agreement referred to below, which expires in December 2024). Our cash and cash equivalents and unused availability under our revolving credit facilities comprise our liquidity position, which was $342.6 million as of June 30, 2024.

Previous wording

Our available cash and cash equivalents balance at March 31, 2024 was $93.5 million compared to $88.8 million at December 31, 2023.

Current wording

Our available cash and cash equivalents balance at June 30, 2024 was $41.3 million compared to $88.8 million at December 31, 2023.

Previous wording

The increase in net cash used in operating activities during the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily driven by timing of payments and receipts.

Current wording

The increase in net cash used in operating activities during the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily driven by timing of payments and receipts.

Previous wording

The increase in net cash used in investing activities during the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to higher cash spend on the purchase of property, plant and equipment in the current year attributable to the Grundartangi casthouse project and Jamalco, which was not acquired until the second quarter of 2023.

Current wording

The increase in net cash used in investing activities during the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily due to higher cash spend on the purchase of property, plant and equipment in the current year attributable to the Grundartangi casthouse project. Additionally, in the six months ended June 30, 2023, the Company received cash inflows of $19.4 million from the acquisition of subsidiary, net of cash acquired.

Previous wording

The change in net cash used in financing activities to net cash provided by financing activities during the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to net borrowings on our revolving credit facilities and Grundartangi Casthouse Facility.

Current wording

The change in net cash provided by financing activities during the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily due to reduction in net borrowings on our revolving credit facilities and Grundartangi Casthouse Facility.

Previous wording

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, 2024, our U.S. revolving credit facility had a borrowing availability of$141.2 million, outstanding borrowings of$17.0 million, and$58.0 million of outstanding letters of credit with total availability of $66.2 million. Of the outstanding letters of credit, $13.7 million are related to our power commitments, $17.3 million are related to raw material security, and the remaining $27.1 are primarily for the purpose of securing certain debt and workers’ compensation commitments. As of March 31, 2024, our Iceland revolving credit facility had a borrowing base of$94.3 million and$32.0 million outstanding borrowings, with total availability of$62.3 million.

Current wording

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 June 30, 2024, our U.S. revolving credit facility had a borrowing availability of$162.1 million, outstanding borrowings of$0.0 million, and$40.8 million of outstanding letters of credit with total availability of$121.3 million. Of the outstanding letters of credit,$13.7 million are related to our power commitments and the remaining $27.1 million are primarily for the purpose of securing certain debt and workers’ compensation commitments. As of June 30, 2024, our Iceland revolving credit facility had a borrowing base of$100.0 million and no outstanding borrowings, with total availability of$100.0 million.

Previous wording

As of March 31, 2024, our credit facilities (including the Vlissingen Facility Agreement referred to below) had $208.5 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.

Current wording

As of June 30, 2024, our credit facilities (including the Vlissingen Facility Agreement referred to below, which facility expires in December 2024) had$301.3 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.

Previous wording

On November 2, 2021, Grundartangi entered into an eight-year Term Facility Agreement with Arion Bank hf, to provide for borrowings up to $130.0 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 in July 2024, with the remaining 60% of the principal amount to be paid no later than the termination date. The Casthouse Facility will mature in December 2029. The Casthouse Facility bears interest at a rate plus applicable margin as defined within the agreement. As of March 31, 2024 there were $130.0 million in outstanding borrowings under the Casthouse Facility.

Current wording

On November 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 in July 2024, with the remaining 60% of the principal amount to be paid no later than the termination date. The Casthouse Facility will mature in December 2029. The Casthouse Facility bears interest at a rate plus applicable margin as defined within the agreement. As of June 30, 2024 there were$130.0 million in outstanding borrowings under the Casthouse Facility.

Previous wording

On December 9, 2022, Vlissingen entered into a Facility Agreement with Glencore International AG pursuant to which Vlissingen may borrow from time to time up to $90.0 million in one or more loans at a fixed interest rate equal to 8.75% per annum and payable on December 2, 2024 (the Vlissingen Facility Agreement"). The obligations under the Vlissingen Facility Agreement are secured by liens on the ground lease on which Vlissingen's facilities are located. Vlissingen's moveable assets, financial assets, receivables and other assets, and Vlissingen's shares. The Vlissingen Facility Agreement contains customary covenants, including with respect to mergers, guarantees and preservation and dispositions of assets. The availability period for borrowings under the Vlissingen Facility Agreement ends December 2, 2024. Amounts drawn, if any, under the Vlissingen Facility Agreement are expected to be used for general corporate and working capital purposes of Century and its subsidiaries. As of March 31, 2024, there were $10.0 million in outstanding borrowings under the Vlissingen Facility Agreement.

Current wording

On December 9, 2022, Vlissingen entered into a Facility Agreement with Glencore International AG pursuant to which Vlissingen may borrow from time to time up to $90.0 million in one or more loans at a fixed interest rate equal to 8.75% per annum and payable on December 2, 2024 (the Vlissingen Facility Agreement"). The obligations under the Vlissingen Facility Agreement are secured by liens on the ground lease on which Vlissingen's facilities are located. Vlissingen's moveable assets, financial assets, receivables and other assets, and Vlissingen's shares. The Vlissingen Facility Agreement contains customary covenants, including with respect to mergers, guarantees and preservation and dispositions of assets. The availability period for borrowings under the Vlissingen Facility Agreement ends December 2, 2024. Amounts drawn, if any, under the Vlissingen Facility Agreement are expected to be used for general corporate and working capital purposes of Century and its subsidiaries. As of June 30, 2024, there were$10.0 million in outstanding borrowings under the Vlissingen Facility Agreement.

Previous wording

As of March 31, 2024 and December 31, 2023, an intercompany receivable due to the Company and Guarantors from the Non-Guarantors totaled$40.7 million and $48.7 million, respectively, and an intercompany non-current loan due to the Company from the Non-Guarantors totaled$392.6 million and $384.9 million, respectively. As of March 31, 2024 and December 31, 2023, an intercompany current loan due to the Company from the Non-Guarantors totaled$3.0 million and $2.9 million, respectively. As of March 31, 2024, an intercompany current loan due from the Non-Guarantors to the Company totaled $50.3 million. There was no intercompany current loan due from the Non-Guarantors to the Company as of December 31, 2023.

Current wording

As of June 30, 2024 and December 31, 2023, an intercompany receivable due to the Company and Guarantors from the Non-Guarantors totaled$48.6 million and $48.7 million, respectively, and an intercompany non-current loan due to the Company from the Non-Guarantors totaled$344.1 million and $384.9 million, respectively. An intercompany current loan due to the Company from the Non-Guarantors totaled $2.9 million as of December 31, 2023, and as of June 30, 2024 there was no outstanding balance on this loan.

Previous wording

We have a contingent obligation in connection with the "unwind" of a contractual arrangement between Century Aluminum of Kentucky ("CAKY"), Big Rivers Electric Corporation and a third party and the execution in July 2009 of a long-term cost-based power contract with Kenergy, 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 with Kenergy. As of March 31, 2024, the principal and accrued interest for the contingent obligation was $31.2 million, which was fully offset by a derivative asset. We may be required to make installment payments for the contingent obligation in the future. These payments are contingent based on the LME price of primary aluminum and the level of Hawesville’s operations. As of March 31, 2024, based on the LME forward market prices and our expected level of Hawesville 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.

Current wording

We have a contingent obligation in connection with the "unwind" of a contractual arrangement between Century Aluminum of Kentucky ("CAKY"), Big Rivers Electric Corporation and a third party and the execution in July 2009 of a long-term cost-based power contract with Kenergy, 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 with Kenergy. As of June 30, 2024, the principal and accrued interest for the contingent obligation was $31.6 million, which was fully offset by a derivative asset. We may be required to make installment payments for the contingent obligation in the future. These payments are contingent based on the LME price of primary aluminum and the level of Hawesville’s operations. As of June 30, 2024, based on the LME forward market prices and our expected level of Hawesville 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.

Previous wording

In August 2022, President Biden signed the IRA into law. The IRA provides for substantial tax credits and incentives for the development of critical minerals (including aluminum), renewable energy, clean fuels, electric vehicles, and supporting infrastructure, among other provisions. Section 45X of the IRA contains a production tax credit equal to 10% of certain eligible production costs, including, without limitation, labor, energy, depreciation and amortization and overhead expenses. On December 14, 2023, the U.S. Department of the Treasury and the Internal Revenue Service released proposed rules to provide guidance on the production tax credit requirements under Internal Revenue Code Section 45X (the “Proposed Regulations”). The Proposed Regulations provide guidance on rules that taxpayers must satisfy to qualify for the Section 45X tax credit. For the quarter ended March 31, 2024, we recognized $11.9 million as a reduction in Cost of goods sold and $0.7 million as a reduction in Selling, general and administrative expenses within the Consolidated Statements of Operations, resulting in an equally offsetting receivable. As of March 31, 2024 and December 31, 2023, we recognized a Manufacturing credit receivable of $57.9 million and $59.3 million, respectively, and as of March 31, 2024, we recognized a noncurrent receivable of $14.0 million within Other assets on the Consolidated Balance Sheets.

Current wording

In August 2022, President Biden signed the IRA into law. The IRA provides for substantial tax credits and incentives for the development of critical minerals (including aluminum), renewable energy, clean fuels, electric vehicles, and supporting infrastructure, among other provisions. Section 45X of the IRA contains a production tax credit equal to 10% of certain eligible production costs, including, without limitation, labor, energy, depreciation and amortization and overhead expenses. On December 14, 2023, the U.S. Department of the Treasury and the Internal Revenue Service released proposed rules to provide guidance on the production tax credit requirements under Internal Revenue Code Section 45X (the “Proposed Regulations”). The Proposed Regulations provide guidance on rules that taxpayers must satisfy to qualify for the Section 45X tax credit. For the three and six months ended June 30, 2024, we recognized $10.7 million and $22.6 million as a reduction in Cost of goods sold and $0.5 million and $1.2 million, respectively, as a reduction in Selling, general and administrative expenses within the Consolidated Statements of Operations, resulting in an equally offsetting receivable. As of June 30, 2024 and December 31, 2023, we recognized a Manufacturing credit receivable of $57.1 million and $59.3 million, respectively, and as of June 30, 2024, we recognized a Non-current Manufacturing credit receivable of $26.0 million within Other assets on the Consolidated Balance Sheets.

Previous wording

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 first half of 2024. The Grundartangi casthouse project will be fully funded through the Casthouse Facility. The project is progressing and is expected to ship first billets out of the casthouse during the second half of 2024, subject to market conditions.

Current wording

During 2021, we announced plans for construction of a new billet casthouse at Grundartangi. The Grundartangi casthouse project began in late 2021 and was completed during the second quarter of 2024. The Grundartangi casthouse project was fully funded through the Casthouse Facility. The project is expected to ship first billets out of the casthouse during the second half of 2024, subject to market conditions.

Previous wording

Aluminum Master Welfare Benefit Plan, and various John Does with respect to the foregoing. On August 18, 2017, the District 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 in September 2017 and agreed to pay the remaining amounts under the settlement agreement in annual increments of $2.0 million for nine years. At March 31, 2024, we had $2.0 million in other current liabilities and $3.4 million in other liabilities related to this agreement.

Current wording

In November 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 and Service 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 in November 2009, the 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. On August 18, 2017, the District 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 in September 2017 and agreed to pay the remaining amounts under the settlement agreement in annual increments of $2.0 million for nine years. At June 30, 2024, we had $2.0 million in other current liabilities and $3.5 million in other liabilities related to this agreement.

Previous wording

Capital expenditures incurred for the three months ended March 31, 2024 were $12.8 million, excluding expenditures of $16.8 million associated with the Grundartangi casthouse project. We estimate our total capital spending in 2024, excluding the Grundartangi casthouse project, will be approximately $20 to $30 million, related to our ongoing investment and sustainability projects at our aluminum smelters and alumina refinery.

Current wording

Capital expenditures incurred for the six months ended June 30, 2024 were $17.7 million, excluding expenditures of $27.8 million associated with the Grundartangi casthouse project. We estimate our total capital spending in 2024, excluding the Grundartangi casthouse project, will be approximately $20 to $30 million, related to our ongoing investment and sustainability projects at our aluminum smelters and alumina refinery.