October 25, 2011 at 16:00 PM EDT
Century Aluminum Reports Third Quarter 2011 Results

MONTEREY, CA -- (Marketwire) -- 10/25/11 -- Century Aluminum Company (NASDAQ: CENX) reported a net loss of $6.6 million ($0.07 per basic and diluted share) for the third quarter of 2011. Financial results were positively impacted by a mark-to-market gain on forward contracts of $4.2 million related primarily to aluminum put options. Cost of sales for the quarter included a $13.5 million charge for lower of cost or market inventory adjustments.

In the third quarter of 2010, the company reported a net loss of $16.8 million ($0.18 per basic and diluted share). Reported results were negatively impacted by a mark-to-market loss on forward contracts of $12.1 million related primarily to aluminum put options and positively impacted by a $1.4 million tax benefit related to the release of tax reserves no longer required. Cost of sales for the quarter included a $15.8 million charge for the portion of power costs at Hawesville payable by the previous power supplier per the terms of the power agreements and a $7.3 million benefit for lower of cost or market inventory adjustments.

Sales in the third quarter of 2011 were $345.6 million, compared with $279.2 million in the third quarter of 2010. Shipments of primary aluminum for the quarter totaled 150,832 tonnes compared with 147,216 tonnes in the year-ago quarter.

For the first nine months of 2011, the company reported net income of $42.4 million ($0.42 per basic and diluted share). These results were negatively impacted by a $7.7 million charge related to the contractual impact of the recent changes in the Company's Board of Directors and the executive management team; a charge of $2.9 million related to an insurance receivable; a loss on forward contracts of $2.3 million, related primarily to the marking to market of aluminum put options; and a charge of $0.8 million related to the early retirement of debt. Changes to the Century of West Virginia retiree medical benefits program increased nine month results by $18.3 million with an associated discrete tax benefit of $4.2 million. Cost of sales included an $8.6 million charge related to the restart of a curtailed potline at the Hawesville, KY smelter and a $13.5 million charge for lower of cost or market inventory adjustments. For the first nine months of 2010, the company reported a net loss of $5.3 million ($0.06 per basic and diluted share). Prior year results were negatively impacted by a mark-to-market loss on forward contracts of $4.8 million related primarily to aluminum put options. Cost of sales for the 2010 nine month period included a $47.3 million charge for the portion of power costs at Hawesville payable by the previous power supplier per the terms of the power agreements and a $0.3 million benefit for lower of cost or market inventory adjustments.

Sales in the first nine months of 2011 were $1,038.3 million compared with $852.4 million in the same period of 2010. Shipments of primary aluminum for the first nine months of 2011 were 446,493 tonnes compared with 436,472 tonnes for the comparable 2010 period.

"The events of the last two months, and their impact on our industry, remind us all of the volatility of the world in which we live," commented Logan W. Kruger, President and Chief Executive Officer. "Clearly, the risk remains that the significant problems facing sovereigns and financial institutions could more substantially influence economic conditions in both developed and emerging economies. That said, we continue to see reasonably good business conditions in our markets. The relative difficulty in obtaining supplies of near-term metal, driven by a number of factors, continues to support attractive premiums in most regions. While the commodity price has fallen, it is supported by the rising cost of production being experienced by all industry participants.

"During the quarter, we continued on a steady pace to return the Hawesville smelter to stable operations," added Mr. Kruger. "We expect these efforts will produce improvement in production and shipments in the fourth quarter. Grundartangi's performance has been excellent, with record production and strong safety results and operating efficiencies. All of our businesses continue to manage through the increases we are seeing in the costs of electric power and raw materials, specifically carbon. Lastly, discussions continued in several key areas of the Helguvik project, and we are awaiting a decision from the arbitration panel regarding our contractual dispute with one of the power suppliers."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Monterey, California.

Century Aluminum's quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:
Atli B. Gudmundsson, Senior Manager -- Corporate Finance, NBI hf.
Steingrimur Helgason, Director -- Corporate Finance, NBI hf.

Cautionary Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements, including, without limitation, declines in aluminum prices or increases in our operating costs; deterioration of global or local financial and economic conditions; increases in global aluminum inventories and the addition of additional global aluminum production capacity; additional delays in the completion of our Helguvik, Iceland smelter, including delays or other changes in our ability to secure a reliable power supply; and our ability to successfully manage and/or improve performance at each of our operating smelters. Forward-looking statements in this press release include, without limitation, statements regarding future market and economic conditions, including the continuance of supply and cost trends in the aluminum market, our ability to successfully remedy production issues at our Hawesville facility and improve its production and shipment levels; and the ultimate outcome of our arbitration with one of the power suppliers to our Helguvik facility. More information about the risks, uncertainties and assumptions affecting the Company can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.

                          Century Aluminum Company
                   Consolidated Statements of Operations
                  (in Thousands, Except Per Share Amounts)
                                (Unaudited)

                            Three months ended         Nine months ended
                               September 30,             September 30,
                         ------------------------  ------------------------
                             2011         2010         2011         2010
                         -----------  -----------  -----------  -----------
NET SALES:
 Third-party customers   $   202,598  $   174,339  $   598,001  $   550,316
 Related parties             143,048      104,839      440,259      302,104
                         -----------  -----------  -----------  -----------
                             345,646      279,178    1,038,260      852,420

COST OF GOODS SOLD           334,322      263,409      935,106      781,159
                         -----------  -----------  -----------  -----------

GROSS PROFIT                  11,324       15,769      103,154       71,261

OTHER OPERATING EXPENSES
 (INCOME) - NET                2,659        3,096       (8,430)      12,205
SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES       7,950       12,486       37,116       35,701
                         -----------  -----------  -----------  -----------

OPERATING INCOME                 715          187       74,468       23,355

INTEREST EXPENSE - THIRD
 PARTY - NET                  (5,914)      (6,287)     (18,857)     (18,839)
INTEREST INCOME - RELATED
 PARTY                            59          113          242          333
NET GAIN (LOSS) ON
 FORWARD CONTRACTS             4,163      (12,136)      (2,263)      (4,814)
OTHER INCOME (EXPENSE) -
 NET                          (1,143)        (417)      (1,598)         221
                         -----------  -----------  -----------  -----------


INCOME (LOSS) BEFORE
 INCOME TAXES AND EQUITY
 IN EARNINGS OF JOINT
 VENTURES                     (2,120)     (18,540)      51,992          256

INCOME TAX EXPENSE
 (BENEFIT)                    (5,387)         570      (12,146)      (8,330)
                         -----------  -----------  -----------  -----------

INCOME (LOSS) BEFORE
 EQUITY IN EARNINGS OF
 JOINT VENTURES               (7,507)     (17,970)      39,846       (8,074)

EQUITY IN EARNINGS OF
 JOINT VENTURES                  907        1,183        2,586        2,765
                         -----------  -----------  -----------  -----------

NET INCOME (LOSS)        $    (6,600) $   (16,787) $    42,432  $    (5,309)
                         ===========  ===========  ===========  ===========

Net Income (Loss)
 Allocated to Common
 Shareholders            $    (6,600) $   (16,787) $    39,003  $    (5,309)

EARNINGS (LOSS) PER
 COMMON SHARE
 Basic and Diluted       $     (0.07) $     (0.18) $      0.42  $     (0.06)

WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING
 Basic                        92,032       92,738       92,697       92,654
 Diluted                      92,032       92,738       93,097       92,654




                          Century Aluminum Company
                        Consolidated Balance Sheets
                           (Dollars in Thousands)
                                (Unaudited)


                                            September 30,     December 31,
ASSETS                                           2011             2010
                                           ---------------  ---------------
Current Assets:
  Cash and cash equivalents                $       216,395  $       304,296
  Restricted cash                                        -            3,673
  Accounts receivable - net                         52,067           43,903
  Due from affiliates                               47,352           51,006
  Inventories                                      165,714          155,908
  Prepaid and other current assets                  56,991           18,292
                                           ---------------  ---------------
    Total current assets                           538,519          577,078
Property, plant and equipment - net              1,224,319        1,256,970
Due from affiliates - less current portion               -            6,054
Other assets                                       100,832           82,954
                                           ---------------  ---------------
    Total                                  $     1,863,670  $     1,923,056
                                           ===============  ===============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable, trade                  $        84,850  $        88,004
  Due to affiliates                                 44,905           45,381
  Accrued and other current liabilities             58,704           41,495
  Accrued employee benefits costs - current
   portion                                          16,731           26,682
  Convertible senior notes                               -           45,483
  Industrial revenue bonds                           7,815            7,815
                                           ---------------  ---------------
    Total current liabilities                      213,005          254,860
                                           ---------------  ---------------

Senior notes payable                               249,256          248,530
Accrued pension benefits costs - less
 current portion                                    35,963           37,795
Accrued postretirement benefits costs -
 less current portion                              105,767          103,744
Other liabilities                                   40,739           37,612
Deferred taxes                                      85,971           85,999
                                           ---------------  ---------------
    Total noncurrent liabilities                   517,696          513,680
                                           ---------------  ---------------

Shareholders' Equity:
  Series A preferred stock (one cent par
   value, 5,000,000 shares authorized;
   80,730 and 82,515 shares issued and
   outstanding at September 30, 2011 and
   December 31, 2010, respectively)                      1                1
  Common stock (one cent par value,
   195,000,000 shares authorized;
   93,228,026 shares issued and 89,602,808
   outstanding as of September 30, 2011;
   92,771,864 shares issued and outstanding
   as of December 31, 2010)                            932              928
  Additional paid-in capital                     2,506,655        2,503,907
  Treasury stock, at cost                          (38,806)               -
  Accumulated other comprehensive loss             (77,901)         (49,976)
  Accumulated deficit                           (1,257,912)      (1,300,344)
                                           ---------------  ---------------
    Total shareholders' equity                   1,132,969        1,154,516
                                           ---------------  ---------------
    Total                                  $     1,863,670  $     1,923,056
                                           ===============  ===============


                          Century Aluminum Company
                   Consolidated Statements of Cash Flows
                           (Dollars in Thousands)
                                (Unaudited)


                                                     Nine months ended
                                                       September 30,
                                               ----------------------------
                                                    2011           2010
                                               -------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                            $      42,432  $      (5,309)
  Adjustments to reconcile net income (loss) to
   net cash provided by
  operating activities:

    Unrealized net loss on forward contracts           1,643          4,456
    Realized benefit of contractual receivable             -         47,323
    Accrued and other plant curtailment costs -
     net                                             (15,023)        (3,305)
    Lower of cost or market inventory
     adjustment                                       13,463           (301)
    Depreciation and amortization                     46,579         47,313
    Debt discount amortization                         1,601          2,339
    Deferred income taxes                                  -          9,949
    Pension and other postretirement benefits        (30,768)        11,918
    Stock-based compensation                           2,670          3,092
    Loss (gain) on disposal of assets                    763           (503)
    Non-cash loss on early extinguishment and
     modification of debt                                763              -
    Undistributed earnings of joint ventures          (2,586)        (2,765)
    Change in operating assets and liabilities:
      Accounts receivable - net                       (8,164)        (1,273)
      Due from affiliates                              6,602        (20,334)
      Inventories                                    (23,269)        (7,748)
      Prepaid and other current assets               (37,905)        16,556
      Accounts payable, trade                         (2,783)        (1,306)
      Due to affiliates                                 (476)         4,880
      Accrued and other current liabilities           17,071          2,818
      Other - net                                     (1,519)        (7,468)
                                               -------------  -------------
    Net cash provided by operating activities         11,094        100,332
                                               -------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment          (10,868)        (5,378)
  Nordural expansion                                 (10,335)       (15,099)
  Investments in and advances to joint ventures          (13)           (32)
  Payment received on advances from joint
   ventures                                            3,056              -
  Proceeds from sale of property, plant and
   equipment                                           1,471            808
  Restricted and other cash deposits                   3,673        (13,645)
                                               -------------  -------------
    Net cash used in investing activities            (13,016)       (33,346)
                                               -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayment of debt                                  (47,067)             -
  Repayment of contingent obligation                    (189)             -
  Borrowing under revolving credit facility           15,900              -
  Repayment under revolving credit facility          (15,900)             -
  Repurchase of common stock                         (38,806)             -
  Issuance of common stock - net                          83             23
                                               -------------  -------------
    Net cash provided by (used in) financing
     activities                                      (85,979)            23
                                               -------------  -------------

CHANGE IN CASH AND CASH EQUIVALENTS                  (87,901)        67,009

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD       304,296        198,234
                                               -------------  -------------

CASH AND CASH EQUIVALENTS, END OF PERIOD       $     216,395  $     265,243
                                               =============  =============


                          Century Aluminum Company
                           Selected Operating Data
                                 (Unaudited)

                        SHIPMENTS - PRIMARY ALUMINUM

                         Direct (1)                        Toll
               ------------------------------ ------------------------------
                           (000)                          (000)      (000)
                 Metric                         Metric
                  Tons     Pounds    $/Pound     Tons     Pounds    Revenue
               --------- --------- ---------- --------- --------- ----------
2011
3rd Quarter       82,236   181,299 $     1.19    68,596   151,229 $  129,369
2nd Quarter       84,509   186,310       1.26    66,974   147,652    132,113
1st Quarter       80,479   177,426       1.17    63,699   140,432    117,658
               --------- --------- ---------- --------- --------- ----------
Year to Date     247,224   545,035 $     1.21   199,269   439,313 $  379,140
               --------- --------- ---------- --------- --------- ----------

2010
3rd Quarter       81,693   180,102 $     0.99    65,523   144,454 $  100,231
2nd Quarter       76,521   168,700       1.04    68,058   150,043    112,523
1st Quarter       76,653   168,990       1.04    68,024   149,968    109,659
               --------- --------- ---------- --------- --------- ----------
Year to Date     234,867   517,792 $     1.02   201,605   444,465 $  322,413
               --------- --------- ---------- --------- --------- ----------

(1) Does not include Toll shipments from Nordural Grundartangi

Contacts:
Mike Dildine (media)
831-642-9364

Shelly Harrison (investors)
831-642-9357

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