6 unchanged sentences
We are also exposed to price risk for alumina which is one of the largest components of our cost of goods sold.
−Removed: Certain of the alumina we purchase is priced based on a published alumina index.
+Added: Certain portions of the alumina we purchase is priced based on a published alumina index.
As a result, our cost structure is exposed to market fluctuations and price volatility.
4 unchanged sentences
Hawesville and Sebree have a market-based electrical power agreement pursuant to which Kenergy purchases electrical power on the open market and passes it through at MISO energy pricing, plus transmission and other costs incurred by them.
−Removed: The agreement with EDF terminated effective May 31, 2023, and, effective June 1, 2023, we act as our own MISO Market participant (through an indirect, wholly-owned subsidiary).
Commitments and Contingencies to the consolidated financial statements included herein for additional information about these market-based power agreements.
Power is supplied to Grundartangi from hydroelectric and geothermal sources under long-term power purchase agreements.
−Removed: These power purchase agreements, which will expire on various dates from 2026 through 2036 (subject to extension), currently primarily provide power at LME-based variable rates.
−Removed: At this time, the price of approximately 20% of Grundartangi's power requirements is linked to the market price for power in the Nord Pool power market through 2023 and beginning January 1, 2024 through December 31, 2026, this agreement allows for fixed rates plus a small variable rate portion, which is predominantly hedged.
+Added: These power purchase agreements, which will expire on various dates from 2026 through 2036 (subject to extension), currently provide power at LME-based variable rates for 70% of Grundartangi's power requirements.
+Added: The remaining 30% of Grundartangi's power requirements is primarily at fixed rates plus a small variable rate portion.
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.
Electrical Power Price Sensitivity
−Removed: Given our market-based power supply agreements, we have electrical power price risk for our operations, whether due to fluctuations in the price of power available on the MISO or Nord Pool power markets or the price of natural gas.
+Added: Given our market-based power supply agreements, we have electrical power price risk for our operations, whether due to fluctuations in the price of power available on the MISO power market or the price of natural gas.
Power represents one of our largest operating costs, so changes in the price and/or availability of market power could significantly impact the profitability and viability of our operations.
16 unchanged sentences
We also have deposits denominated in ISK in Icelandic banks and our estimated payments of Icelandic income taxes and any associated refunds are denominated in ISK.
−Removed: Vlissingen's labor costs, maintenance costs and other local services are denominated in Euros, and our existing Nord Pool power price swaps described above are settled in Euros.
+Added: Vlissingen's labor costs, maintenance costs, and other local services are denominated in Euros.
Further, Jamalco's labor costs, maintenance costs, and other local services are denominated in Jamaican dollars.
3 unchanged sentences
We may manage our foreign currency 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: We have entered into financial contracts to hedge the risk of fluctuations associated with the Euro under our Nord Pool power price swaps and risk of fluctuations associated with the ISK and Euro under our casthouse currency hedges.
+Added: We have entered into financial contracts to hedge the risk of fluctuations associated with the ISK and Euro under our casthouse currency hedges.
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: Certain of our alumina contracts and a substantial portion of Grundartangi’s electrical power requirements are indexed to the LME price for primary aluminum and provide a natural hedge for a portion of our production.
+Added: Certain alumina contracts and a substantial portion of Grundartangi’s electrical power requirements are indexed to the LME price for primary aluminum and provide a natural hedge for a portion of our production.
Risk Management
2 unchanged sentences
Fair Values and Sensitivity Analysis
−Removed: The following tables present the fair value of our derivative assets and liabilities as of September 30, 2023 and the effect on the fair value of a hypothetical ten percent (10%) adverse change in the market prices in effect at September 30, 2023.
+Added: The following tables present the fair value of our derivative assets and liabilities as of March 31, 2024 and the effect on the fair value of a hypothetical ten percent (10%) adverse change in the market prices in effect at March 31, 2024.
Our risk management activities do not include any trading or speculative transactions.
1 unchanged sentence
Commodity contracts (1)
−Removed: Foreign exchange contracts (2)
−Removed: Total $ 12.4 $ 5.6
Liability Fair Value Fair Value with 10% Adverse Price Change
Commodity contracts (1)
−Removed: Foreign exchange contracts (2)
−Removed: Total $ 10.4 $ 26.2
−Removed: (1) Commodity contracts reflect our outstanding LME forward financial sales contracts, fixed for floating swaps, Nord Pool power price swaps Indiana Hub power price swaps, HFO price swaps, and NYMEX Henry Hub natural gas price swaps.
−Removed: (2) Foreign exchange contracts reflect our outstanding FX swaps and the casthouse currency hedges.
+Added: (1) Commodity contracts reflect our outstanding LME forward financial sales contracts and HFO price 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.