What changed in this filing

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Item 1A. Risk Factors

2020-11-05 compared with 2020-08-06 · 31 added, 2 removed, 3 unchanged (92% of the section changed)

There have been no material changes to the risk factors previously disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, except for the changes disclosed in the subsequent quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020.

You should carefully consider those risk factors contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our other filings made with the Securities and Exchange Commission.

The following is an update to the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

Other than the following update, there have been no material changes to the risk factors previously disclosed under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

You should carefully consider the risk factors set forth below and those contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our other filings made with the Securities and Exchange Commission.

You should be aware that these risk factors and other information may not describe every risk facing our Company.

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

If we are unable to enter into a long term, market-based, power arrangement for Mt.

Holly, we may choose, or be forced, to further curtail operations at the Mt.

Holly purchases power pursuant to a power purchase agreement (the "Santee Cooper Agreement") with the South Carolina Public Service Authority ("Santee Cooper").

The term of the Santee Cooper Agreement expires on December 31, 2020.

Under the Santee Cooper Agreement, Mt.

Holly is required to purchase 25% of its power requirements from Santee Cooper's generation at a standard cost-based industrial rate, which is substantially higher than the market-based rate Mt.

Holly pays for the remaining 75% of its power.

Holly's inability to access the open market for 100% of its power requirements significantly impacts its ability to be competitive in the aluminum industry.

As a result of such uncompetitive power prices, in 2015 Mt.

Holly curtailed approximately 50% of its production capacity.

We continue to seek the ability to access the open market for 100% of our power requirements at Mt.

Holly and to pursue every reasonable alternative available to us to achieve this objective.

There can be no assurance, however, that we will be successful in these efforts before the Santee Cooper Agreement expires on December 31, 2020.

If we are unable to secure a long term power arrangement for 100% of Mt.

Holly's power requirements on competitive terms before December 31, 2020, we may choose, or be forced, to further curtail operations at the plant.

On October 20, 2020, we issued a notice to Mt.

Holly employees of our intent to curtail 100% of the Mt.

Holly smelter operations by no later than December 31, 2020 if a competitively priced power arrangement has not been secured.

Closure of the Mt.

Holly facility would impose various costs on us that could have a material adverse effect on our business, financial condition, results of operations and liquidity and could cause us to write down the book value of the Mt.

Holly facility.

In addition, the ongoing uncertainty regarding the future operation of Mt.

Holly may damage our relationships with our customers, suppliers, employees and other stakeholders, whether or not Mt.

Holly is ultimately closed.

We may need to take actions to terminate certain customer and supply contracts or curtail additional production in advance of any plant closure.

Customers and suppliers may also become unwilling to renew existing contracts or enter into new contracts with us.

It may also become more difficult to attract and retain employees.

Such actions and events could have a material adverse effect on our business, financial condition, results of operations and liquidity.

Unregistered Sales of Equity Securities and Use of Proceeds

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors