Investor Presentaiton
Steeper cost curve, low-carbon demand and robust
position drive margin potential
Bauxite & Alumina
Alumina Business Operating Cost curve (2022)
750
Alunorte back in 1st
quartile after fuel switch
500
~200 USD/mt,
~245 USD/mt
250
post fuel switch
Distance 90th percentile
Aluminium Metal
Smelter Business Operating Cost curve¹) (2022)
5000
4000
3000
~2300
USD/t
~115 USD/t,
2000
~140 USD/t
post fuel switch
Hydro B&A post fuel switch
1000
Hydro B&A
90th percentile
Global CO2 price 100 USD/t CO2e
Status quo
Competitively positioned on the global cost curve at the 30th percentile
Fuel switch & electrical boilers project reduce carbon emissions by 30%
by 2025
Global carbon price would improve relative competitive position in Hydro
B&A
1) Assumptions: LME 3m 2,458 USD/t, Alumina 293 USD/t, SHFE cash 2,909 USD/t, NOK/USD 8.79
Source: CRU cost model
Distance 90th percentile
0
Hydro
~1000
USD/t
Hydro AM
90th percentile
Status quo
Global CO2 price 100 USD/t CO2e
•
Competitive relative position on the global cost curve at the 17th percentile
•
Strong portfolio of low-carbon smelters
Global carbon price would improve relative competitive position in
Aluminium Metal
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