Alcoa CEO on Gallium Project, Earnings, and Aluminum Market

Alcoa's Financial Performance

• 💡 Despite a revenue miss due to shipments in transit, Alcoa achieved a solid quarter with production records and met earnings estimates through tight cost control.
• ✅ Strategic initiatives were executed, including a significant gallium announcement and securing a long-term power contract in Massena, New York.

Gallium Project and Critical Minerals

• 🚀 Alcoa is investing in a Western Australia facility to extract approximately 10% of the world's gallium, aiming to establish a new supply chain outside of China.
• 🤝 This project strengthens relationships with the US, Japanese, and Australian governments, with metal production expected by the end of 2026.
• 🌎 The initiative aims to provide gallium to the global market, reducing reliance on China, which currently dominates over 90% of extraction and processing.

Aluminum and Alumina Market Dynamics

• 📊 Alumina prices have fallen sharply in the last 90 days, with about 40% of the Chinese market currently operating at a loss.
• ⚙️ Alcoa's refineries are in the first quartile of the cost curve, allowing them to continue operating efficiently even in a low-price environment, negating the need to shut down refining capacity.