8 unchanged sentences
As a result, our cost structure is exposed to market fluctuations and price volatility.
−Removed: Because we sell our products based principally on the LME price for primary aluminum, regional premiums and value-added product premiums, we are not able to directly pass on increased production costs to our
+Added: Because we sell our products based principally on the LME price for primary aluminum, regional premiums and value-added product premiums, we are not able to directly pass on increased production costs to our customers.
From time to time, we may manage our exposure to fluctuations in our alumina costs by purchasing certain of our alumina requirements under supply contracts with prices tied to the same indices as our aluminum sales contracts (the LME price of primary aluminum).
2 unchanged sentences
Hawesville and Sebree have market-based electrical power agreements pursuant to which EDF and Kenergy purchase electrical power on the open market and pass it through at MISO energy pricing, plus transmission and other costs incurred by them.
−Removed: Seventy-five percent (75%) of Mt.
−Removed: Holly's electric power requirements were supplied at rates based on natural gas prices.
+Added: Through March 31, 2021, 75% of Mt.
+Added: Holly's electrical power requirements are supplied at rates based on natural gas prices.
Business - Key Production Costs - Electrical Power Supply Agreements for additional information about these market-based power agreements.
1 unchanged sentence
These power purchase agreements, which will expire on various dates from 2023 through 2036 (subject to extension), primarily provide power at LME-based variable rates.
−Removed: However, the price of approximately thirty percent (30%) of Grundartangi's power requirements is linked to the market price for power in the Nord Pool power market.
+Added: Since November 2019, the price of approximately 30% of Grundartangi's power requirements has been linked to the market price for power in the Nord Pool power market.
From time to time, we may manage our exposure to fluctuations in the market price of power through financial instruments designed to protect our downside risk exposure.
6 unchanged sentences
Electrical power price sensitivity by location:
+Added: Hawesville Sebree Mt.
+Added: Holly Grundartangi Total
Expected average load (in megawatts ("MW"))
+Added: 482 385 400 537 1,804
Annual expected electrical power usage (in megawatt hours ("MWh")) 4,222,320 3,372,600 3,504,000 4,704,120 15,803,040
9 unchanged sentences
We may manage our exposure by entering into foreign currency forward contracts or option contracts for forecasted transactions and projected cash flows for foreign currencies in future periods.
−Removed: In 2018, we entered into financial contracts to hedge the risk of fluctuations associated with the euro under our power price swaps described above (the "FX swaps").
+Added: We have entered into financial contracts to hedge the risk of fluctuations associated with the Euro under our power price swaps described above (the "FX swaps").
Natural Economic Hedges
Any analysis of our exposure to the commodity price of aluminum should consider the impact of natural hedges provided by certain contracts that contain pricing indexed to the LME price for primary aluminum.
−Removed: In 2019 , certain of our alumina contracts and a substantial portion of Grundartangi’s electrical power requirements were indexed to the LME price for primary aluminum and provide a natural hedge for a portion of our production.
+Added: Certain of our alumina contracts and a substantial portion of Grundartangi’s electrical power requirements were indexed to the LME price for primary aluminum and provide a natural hedge for a portion of our production.
Risk Management
4 unchanged sentences
Our risk management activities do not include any trading or speculative transactions.
−Removed: Asset Fair Value
−Removed: Fair Value with 10% Adverse Price Change
+Added: Asset Fair Value Fair Value with 10% Adverse Price Change
+Added: 2020 2019 2020 2019
Commodity contracts (1)
+Added: $ 12.8 $ 19.7 $ 4.0 $ (2.7)
Foreign exchange contracts (2)
−Removed: Liability Fair Value
−Removed: Liability Fair Value with 10% Adverse Price Change
+Added: 2.4 — (2.5) —
+Added: Total $ 15.2 $ 19.7 $ 1.5 $ (2.7)
+Added: Liability Fair Value Liability Fair Value with 10% Adverse Price Change
+Added: 2020 2019 2020 2019
Commodity contracts (1)
+Added: $ 16.7 $ 3.6 $ 59.1 $ 7.1
Foreign exchange contracts (2)
−Removed: (1) Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, contracts relating to the restart of Hawesville's Line 4 ("Hawesville L4 power price swaps"), fixed for floating swaps, and Nord Pool power price swaps.
+Added: Total $ 16.7 $ 4.2 $ 59.1 $ 8.3
+Added: (1) Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, fixed for floating swaps, NYMEX Henry Hub natural gas price swaps, and Nord Pool power price swaps.
(2) Foreign exchange contracts reflect our outstanding FX swaps.
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.