Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter 2007 Earnings Conference Call. At this time all participants are in a listen-only mode, later we will conduct a question-and-answer session with instructions being given at that time. [Operator Instructions]. As a reminder this conference is being recorded. I would now like to turn the conference over to our host, Ms. Shelly Lair. Please go ahead.

Thanks Michele. Good afternoon and welcome to the conference call. For those of you joining us by telephone, this presentation is being webcast on the Century Aluminum website at www.centuryaluminum.com. Please note that website participants have the ability to [Indiscernible]. The following presentation accompanying press release and comments include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Century's actual results or actions may differ materially from those projected in these forward-looking statements. These forward-looking statements are based on our current expectations and we assume no obligation to update these statements. Investors are cautioned not to place undue reliance on these forward-looking statements. For risks related to these forward-looking statements, phrase or view, NSA and periodic SEC filings, including the risk factors and managements discussions, and analysis sections of our latest Annual Report and Quarterly Report. In addition throughout this conference call we will use non-GAAP financial measures, please refer the appendix which contains the reconciliation to the most directly comparable GAAP measures. This presentation including in the appendix is available on our website. I would now like to introduce Logan Kruger, Century's President and Chief Executive Officer.

Thank you, Shelly. Welcome all of you to the fourth quarter conference call. Joining me today is Wayne Hale and Mike Bless. I will also have here in Monterey, Bob Nielsen and Steve Schneider. We would like to turn to slide four, we will get on with the program for the day. 2007 has been a successful year. We have managed through some obstacles as you all know the cost pressures particularly on raw materials and part has been a challenge for the whole of the industry. Setup for the currently detected losses on what we see a favorable mid to long-term environment. The aluminum products market is robust and we believe this will continue. The LME average $2,640 per ton for 2007, approximately 2.7% of 2006. Increases due to ongoing rollout demand in the Far East mainly China, but this ongoing growing demand in other BRIC countries and particular of interest is India. All the plants are operating well. Production has been at or above capacity at all the primary facilities. We made significant progress in our projects in Iceland and we will talk about that in a moment. We have also advanced our projects in Jamaica, The Republic of the Congo and China. And particularly in Jamaica, we secured Bauxite resources to progress to Jamaican refinery project to pre-feasibility study. Our financial results are strong, cost pressures remain and we have to deal with it. Record shipments and record free cash flow of $250 million is for the year. Our role was strong 2007 and we had a good start to 2008. We move on to slide five. The Grundartangi expansion has been a whole lot of success. We have nearly tripled our capacity over the last three years and this is being done a long time and…

Thanks, Logan. Let's turn to slide 13. US smelter operations had an excellent year in 2007. Not only do they improve in overall operations, but they also established several safety production purity records. In particular, Hawesville continues to produce more high-purity metal than any domestic smelter providing for additional premium on this metal sold. Looking at Ravenswood with increased interest and focus, the injury reduction during 2007 set a new standard of performance for the plant, and in fact with continued operational improvement, stabilities, some of the best metal purity in the past 50 years of its history, were produced last year. Mt. Holly, in addition to its several operational records that they established, they also were awarded the North American Maintenance Excellence Award which recognizes a plant for outstanding maintenance and reliability implementation. Focus continues with the Big Rivers on line to secure long-term power for the Hawesville plant. Essentially, Big Rivers will serve 100% of the current load of the plant until 2023. This transaction is on track to be approved by the Kentucky Public Service Commission, during the first half of this year, and I'll talk to more detail later on that. And Grundartangi, with the completion of phase V, the plan continues to improve and we work to continue to fine tune the performance to extract additional value and metal. Let's move on to slide 14. And I'll talk little bit about bauxite, alumina and sales. At St. Ann's, they had a good safety performance in 2007. All areas of the mine were impacted by heavy rains during the fourth quarter. However, despite this ship tonnage for the year was the highest in the history of the plant. A Gramercy, the performance in all areas improved throughout the year with the fourth quarter performance being above…

Thanks very much, Wayne, and if everybody can please turnover to slide 16. As I normally do in addition to the slide that themselves that will be going through. I'm going to refer to both the appendences in the slide that itself that's the reconciliation charts and we talk about adjusted earnings and cash flow and such measures. In addition, I'm going to be referring to the financial statements which come right after the earning release in the press release itself. So, if could have all those things in front you it might make following a lot of my comments a bit easier. So again, page 16; this is the sequential comparison Q3 to Q4 and just starting at the top of the income statement. As you can see revenues Q3 and Q4 down about 5% or $22 million, breaking that 5% decline out our realized price was down about 6%, volume was up 1% and just sticking to that volume with a little bit more detail. Total volume again up 1% in shipments, direct volume i.e., U.S. smelters, shipments down 1% as Wayne said the smelters are all producing above the rated capacity, the slight decline quarter-to-quarter is simply a matter of timing of shipments and no indication as to production. Total shipments up 7%, obviously due to the continued expansion of Grundartangi plant where the 40,000 tonne expansion capacity came online in the fourth quarter. So again, putting those two together, revenues down 5% sequentially or $22 million. More than, all of that decline in revenues came from decline in price. So 27 if you will of that $22 million, was due to decline in unrealized prices and continuing on income statement, obviously that $27 million ran right to the gross profit line obviously, pricing falls right to…

Thanks Mike that's great. For the 2007 year, another strong year even with the challenges. We've achieved all of our major growth objectives and our plans continue to perform well. A special mention is obviously Grundartangi three years is 93 times the capacity and once we finish the first phase or Phase II of Helguvik 50% of our production will coming out of Hawesville [ph]. Looking forward to 2008, we see sound market conditions on the inventory side we see a balance to modest surplus. Continued for cost pressures and we are working on those as Wayne and Mike have pointed out. We are doing some a modest capital investment program in the U.S in our plants. We believe that perfect we have been studying for the last two years and the time we believe is correct. On Helguvik ground breaking and start-up project execution is at or about the end of this first quarter and I must make note that we've taken the additional time to make sure that we got our engineering along these on items at all the other conditions, including a very experienced project team in place before we make the jump off. We continue to build our global products pipeline in Congo, Jamaica and China. Thanks very much for listening and we'll like to invite your question. Michele? Question And Answer

Are you ready for questions?

Thank you.

Okay. [Operator Instructions]. First question comes from the line of Brett Levy of Jefferies & Company. Please go ahead. Brett Levy - Jefferies & Co.: Hey, guys. On behalf of the East Coast guys, actually you not do conference calls this late on Valentines Day in the future?

Give us your home address, please and we'll send the flowers. Brett Levy - Jefferies & Co.: Okay. Thank you, that's very kind. As you guys kind of go through the numbers and I have gotten most of the deltas, but if look at 3Q and I look at this quarter on an EBITDA basis, you guys are down almost $30 million. As I look forward into the first and second quarter, can you talk a little bit to why or why not I should expect the quarters of 2008 to rebound a little bit from the fourth quarter number?

It's, Mike. We don't obviously give guidance on earnings or cash flow or certainly EBITDA. So I'm going to touch year '08, other than to just reiterate the discreet items that we gave to try to help people with the modeling. I mean the only thing I would point out is what I tried to stress on Q4 versus Q3, is that the major difference there of course was just the LME prices that impacted our shipment volume and you have your own estimates for the other major items. You've detailed the power and the alumina contract rates. So you should be able to come to your own estimates. Again, we'd rather not comment on sort of forward-looking earnings. Brett Levy - Jefferies & Co.: Alright. And again, I know it depends based on your hedges and that sort of thing, but given kind of how you are currently set up for 2008, one penny movement in LME is worth per pound is worth what per I don't know quarter or a year in EBITDA?

On an EBITDA basis I don't have that handy. I can give you on a reported EPS basis, it's just shy of $0.20, because at $0.18, $0.19. And I can... if you give me a calculator here, and give me a minute I could translate that into EBITDA for you. Brett Levy - Jefferies & Co.: I can work my way from that.

Alright, it's fair enough.

Thanks for asking the question. Brett Levy - Jefferies & Co.: Beg your pardon?

I said thank you very much. Is there any additional questions you've got? Brett Levy - Jefferies & Co.: No, I will get back in the queue. Thanks guys.

Okay, thank you.

Okay, thank you.

The next question comes from the line of David Silverstein of Merrill Lynch. Please go ahead.

Good evening. Just I had a quick question. I know we had to ask these silly questions last time the question was how much of your short-term investments were sub-prime there? The great thing to hear was that nothing was there, the next question now is, what's the nature of the short-term investments, just any auction preferred at all that are in there?

No, no, not at all. We... Logan asked Shelly and me the exact same question long ago and happy to report the answer was and is no.

Okay, for auction rates. I mean what's the nature of the short-term investments that you have?

There is nothing municipal at August [ph] with Blackrock manages it for us. But no auction rates, no sub-prime.

Excellent, thank you guys. I apologize for asking the question.

No, don't apologize. It's a very appropriate question.

Thanks, David. That's great.

Okay, thank you. And the next question comes from the line of Lloyd O'Carroll of Davenport & Company. Please go ahead. Lloyd O'Carroll - Davenport & Company: Good afternoon or good morning with you guys. Several things; were there any unusual costs in the quarter? I am thinking about start-up costs of Nordural?

I think, Lloyd its Logan, and Wayne can also comment. I think in Nordural the operations were stable and there weren't any unusual startup costs. A good question, but we had of lot of practice as we started up the various phase. So the last phase has gone particularly well.

Yes, in fact, just to add to that. Just to emphasize this is startup was the best we have seen on record and that's a good standard for us going forward. Lloyd O'Carroll - Davenport & Company: Was the profit for Nordural up or down sequentially?

We don't comment, Lloyd, wait for the K. You can read on the back as everybody likes doing it again to our statements. Lloyd O'Carroll - Davenport & Company: Okay. And one of the cost pressures is carbon, linked to oil. Can you talk a little bit about what that's done over the last year and going into anode and cathode lining?

I think Lloyd our exposure is two-fold. One, we make our anodes in our U.S facilities. So it's the raw materials and I think if you just track the price of oil, you get a good idea of what's happening with carbon and you can look up coke prices as well. And so, off the top here, I think double the long. Wayne, any comments?

Yes, I mean just on this point, we have seen year-on-year increase in coke and pitched that are used to producing alum and just for an example in the alchemic anodes which... or excuse me, the Grundartangi and which we would buy. We are seeing obviously significant increases as well.

I think Lloyd that's related to another subject because one of the reasons why we are looking strategically for the sourcing of particularly anodes and you are aware that, as they were analysis we've been talking for a while. Because that exponential growth in Iceland because we don't have anode facilities as you know.

And Lloyd lastly kind of tapping all three of us here just to restate the statistic I gave about '07 versus '06. Total raw material costs were up $15 million and of that, carbon anodes for Grundartangi and petroleum coke for the domestic smelters, constituted about three-quarters of that. The rest was largely fluoride and other stuffs. Lloyd O'Carroll - Davenport & Company: Good. Your purchase anodes are produced in Europe?

Some in Europe, some out of China. Lloyd O'Carroll - Davenport & Company: Okay, fine. Thank you.

Sure, thanks Lloyd.

Okay, thank you. [Operator Instructions] And you have question from line of Mark Lenima of Morgan Stanley. Please go ahead.

Good evening guys.

Hi Mark.

More of a big picture question, one of the concerns that some people have when they think about aluminum industry is over capitalization in the so called areas of low-cost power. Clearly the energy picture is changing rapidly. Are you seeing any change in regional governments would have the willingness to give low-cost long-term power contracts that would make some of these very expensive smelters buyable?

I think the answer is the pressure on energy worldwide continues to be on the upfront. And as specifically to your question, I am not seeing to much willingness to reduce the ongoing power cost. So, I think it's by nature become more competitive anyway and I think you know that's what we have seen. So you have got the pressures two-fold and then I'll ask Mike to comment as well. One you got the capital profitable the CapEx... the capital investment that you are looking at and on Helguvik because we spoke earlier, we've taken our next two months or so just to make sure we've got this right, because the number we are looking at for the full per tonne [ph] is about $5000 a tonnes without the manual plot. Obviously because we did that in phases as we take the 25% to 30% higher for the first two phases. But as you look around what is reported on other capital projects in relatively competitive power markets elsewhere in the world, they have pretty much higher than that. So I think the challenge the remains. There are some examples perhaps, I saw a note today and someone suggesting what power has been offered in South Africa for Cuckoo project. But with what's going on with power in Southern Africa in the last six months, you wonder how that project is going to get going in the time frame ahead and what perspective for that may well be. Short answer I don't see easy, Mike may have a comment.

Mark, may be where you might going with the question and help me out if I am going in the wrong direction, some of the regions let's take the present Gulf for example, where the power is being offered at 'advantageous' that's a subjective word of course but advantageous long-term prices. As Logan correctly stated, the capital costs are going way up there but if you look at the root of those projects and why they are occurring, those governments have made sort of sovereign decision to try to diversify their economies and so, I wouldn't think that the changes that you are correctly alluding to would effect their desire to... they are taking sort of 50 of year views of their economies. Is that really where you were kind of heading?

I have a view that I think it's not going to be as bad as some people think. Because --

I think we would probably agree. I think bottom line we think those gets done, but boy the capital costs are going to make them tricky to pull off on an economic basis.

I think, Mark, if I sit back and I just look at the forward screen, you got to say that the market in some way is trying to indicate what the cost push be at capital part... operating costs is going to due what is an expectation of pricing for the commodity going forward.

And just quickly on your supply-demand summary. You are calling for a balance market without any impact of the 10% curtailments in South Africa?

What we have done is, we looked at all of the industry information and we came up with an average around about a 400,000 tonnes surplus. But with the like storms and delays and impacts in China that basically -- that's 1.5 million tonnes for a quarter, knocks that number also. Again we will still leaving a balance to a modest surplus and we haven't taken into account any other impact in Southern Africa or Tajikistan or Brazil where else they have been impacts.

So it would be... based on your analysis within the realm of possibilities that we have a deficit market in 2008?

We are not calling that Mark, we are just saying balanced and modest surplus, I think this is the game that was played last year if you remember in the beginning of the year and we just took a middle road position on the information available and said, here are some thoughts, lets see how the year progresses. We're actually only a month or two, so it's a bit of a game that's going on and we will see how it develops. Let's see what happens in China in the next two to three months. Let's see what happens in Southern Africa.

Well, thanks and good luck with all the projects this year.

Great, thanks. Nice to speak to you.

Okay, thank you. And the next question comes from the line of David Rosenberg of Oaktree Capital Management. Please go ahead.

Hi guys.

Hi, David.

My question is you guys did a good job comparing I guess sequentially Q3 to Q4. But if you look year-over-year Q4 to Q4, it looks like it's more of cost issues it's kind of driving your EBITDA down. I see that... it looks you yes the earning is down but volumes up and revenue is still up. And I was wondering if you can kindly do the same breakout you did sequentially as hard what are the major cost drivers? It looks like costs were up about $40 million?

Sure, absolutely David. Good question, I am happy to do it. If you look Q4 '07 versus Q4 '06 gross profit, which is what we look at principally obviously the SG&A is separate announces but the gross indicative but the operations are down little over but $33 bucks. Of that price constituted 26, so just to fall on LME average or I should say all realized prices right way to say it quarter-over-quarter, Q4 '07 over '06 was $26 million. In addition, on this picking out some larger items here; alumina again the same impact that I talked about year-over-year the new contract rate where we are in '07 versus '06 hit us for another $10 million '07, '06 in the fourth quarter. And then other items here I will just -- I am getting down small items here domestic power was up unfavorable by three, raw material on favorable by four. Going the other way as Wayne said in response to a question that was asked earlier, Nordural operations costs were actually favorable by $4 million as Wayne detailed. Gramercy was favorable by $2 million. So that gives a next but you can see it's really again the LME that our realized price based on the market and the alumina contract right drove most to that gross profit decline.

Okay. Thanks.

Thanks, David. No problem.

Okay, thank you. And the next question comes from the line of David Lipschitz of Merrill Lynch. Please go ahead.

Hi everyone.

Hi, David.

Hi, David.

Just a quick question, what do you say the tax rate was going to be for 2008?

27% to 28% David on the same basis. So we came in at 26% in '07 if you strip out the after-tax loss on forward contracts mark-to-market charges we call it for shorthand, and you strip out that $8.3 million tax benefits from the West Virginia State law change and on that same basis comp play apples-to-apples were on adjusted earnings as determine we are looking for 27% to 28%.

Okay, great. Thank you.

It's very... just add more thing and I should have said before, it's really heavily dependent on the mix of pretax income between Iceland and the U.S. obviously, a step story rates in the U.S. federal part of the state are something above 35 obviously in 36 to 37 kind of range, and Iceland is 18. So in any given quarter, depending on the metal price obviously the mix of those two items can really drive it up or down.

Okay, thanks.

Sure, thanks David.

Okay, thank you. And the next question comes from the line of Sam Martini of Cobalt Capital. Please go ahead.

Hi, guys.

Hi, Sam.

Just two quick questions not simple way for this, but Mike you said $15 million was raw material that was year-over-year, that's total '07, correct?

You got it Sam, year-over-year total '07 over total '06.

And I mean there has been a dramatic... can you guys just briefly to the anode move in the back half of '07, I mean can you help me just put some numbers around it. We have gone from $300 a tonne to $600 a tonne, what are we looking for anode in the market to... just on Grundartangi right now, what do we have to pay right now?

Well, I think Sam, I will give some range to talk about, and Wayne may want to comment. But I think if you just look at the oil price, you've probably seen 30% or low and I think looking at us going in for anode prices, you're looking in the range somewhere around $700 a tonne, and the pressure is still on the up side. [Multiple Speakers].

August-September type levels were 350?

No, not as low as that.

Just to make it out, Sam you may not have heard because we were both talking at the same time, Sam. That's 700 is delivered not FOB. I think you are quoting pretty much probably you sort of plant we see the FOB type prices. So the time on where majority is come from, you add to FOB. If it comes from China of 150 plus, if it comes come from Europe, the Iceland, may be as little as 50. So let's make sure we get our apples-to-apples. I guess the spot prices Wayne have probably been up at least 50% year-over-year.

Absolutely, yes. I think we've seen spot prices at 800.

Okay

And above that not preferred to deliver across because that gives you the mix of vast sources I think that.

Okay, and just secondly Logan, back to the aluminum balance charts, the first bar the 41.4, I know it's industry analysts estimate. But do you have breakdown just your own opinion of that supply? What's the company is best guess of the mix of that incremental, I mean that's modeling north of 3 million tonnes coming on. Where do you that is coming from for 2008?

I think most of that coming, probably 80% of that is coming out of China. I think there is lot of installed capacity that's coming on stream in China, although there is less being bolt now for the reasons we spoke about earlier. So, I would say 80%, unless I go project by project and you never know these are being completed particularly in China. But I would say 85%. You then grew out some increase coming out of us in Iceland, you have got the Fjardaal project in East Iceland from Alcoa, and plus something out of Russia. So that gives you some idea of what we are seeing some marginal increases out of other producers. So the majority of that is driven out of China, but out of India we know one or two smelters that have come on stream in India. I've got Shelly, she may want to comment, Shelly.

Yes, I want to tell you a significant portion of that is coming out in China and as we all know that the data there is not as detailed as it is in rest of the world. So you have to make some prior assumption as to what is coming in on the smaller more unknown smelters. So there is lot of estimation that goes in the China capacity.

I think Sam, China about 12.5 million tonnes of production in 2007, 12.7 depends on those numbers you accept. You could add somewhere between 2.5 and 3 depending again from China. So you get about 15 million. As I said earlier to markets, it's a bit early to start calling all these things, so I think we'll develop a better picture in the next couple of months.

But it's your assumption that a big chunk of this growth and supply is coming from China throughout 2008?

Absolutely.

Okay. Thanks so much guys.

And they are the only people that can bring those projects on time, in the next 12 months. Thanks Sam.

Thank you. And the next question comes from the line of Matthew Miller of Seneca Capital [ph]. Please go ahead.

Hi guys.

Hi Matthew.

Hi Matt.

I just wanted to make sure I was thinking about the change in hedge accounting correctly. So, it looks like on page 20 you've had 120,000 tonnes hedged with cash flow hedges in '07 and only 9,000 tonnes were hedges in '08?

That's right.

So, just to walk through a quick example, if we were using let's say 2007 average LME at $2,700 a tonne and estimated the hedge price on those cash flow hedges was about 1,700 a tonne, based on the time when you send them out. That would be a $1,000 tonne difference on about $1,011 tonnes. So $1,011 million of additional revenue and rate, is that right?

Yes, 100, based on your 1,000, just doing your math. You got it.

Goy you. Okay, great. Thanks.

Sure thanks, Matt.

Okay thank you. And there are no further questions in queue. Please continue.

Well, we would like to thank everyone for listening to our fourth quarter call today, and we look forward to having the next call with you and thank you very much for listening. Thanks Michelle.

Thank you. And that does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference Service. You may now disconnect.