Related Party Transactions

3 Months Ended

Mar. 31, 2020

The significant related party transactions occurring during the three months ended March 31, 2020 and 2019 are described below. We believe all of our transactions with Glencore and BHH are at prices that approximate market.

Glencore ownership

As of March 31, 2020, Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9% of Century’s outstanding common stock (46.8% on a fully-diluted basis assuming the conversion of all of the Series A Convertible Preferred Stock) and all of our outstanding Series A Convertible Preferred Stock. See Note 6. Shareholders' Equity for a description of our outstanding Series A Convertible Preferred Stock. From time to time, Century and Glencore enter into various transactions for the purchase and sale of primary aluminum, purchase and sale of alumina, tolling agreements, certain forward financial contracts and loan agreements.

Sales to Glencore

For the three months ended March 31, 2020 and 2019, approximately 64% of our consolidated net sales were made to Glencore.

Glencore purchases aluminum produced at our U.S smelters at prices based on the London Metal Exchange (the "LME") plus the Midwest regional delivery premium plus any additional market-based product premiums. Glencore purchases aluminum produced at our Grundartangi, Iceland smelter at prices based on the LME plus the European Duty Paid premium plus any additional market-based product premiums.

We have also entered into agreements with Glencore pursuant to which we sell certain amounts of alumina at prices that approximate market. For the three months ended March 31, 2020, we recorded $0.3 million of revenue related to alumina sales to Glencore.

Purchases from Glencore

We purchase a portion of our alumina requirements from Glencore. Alumina purchases from Glencore during the three months ended March 31, 2020 were priced based on published alumina and aluminum indices, respectively.

Financial contracts with Glencore

We have certain financial contracts with Glencore. See Note 13. Derivatives regarding these forward financial sales contracts.

Hawesville Term Loan

On April 29, 2019, we entered into a loan agreement with Glencore Ltd. pursuant to which the Company borrowed $40.0 million (the "Hawesville Term Loan”). See Note 9. Debt for additional information. Borrowings under the Hawesville Term Loan were used to partially finance the second phase of the Hawesville restart project.

Summary

A summary of the aforementioned significant related party transactions is as follows:



	Three months ended March 31,
	2020		2019
Net sales to Glencore	$	271.0	$	311.3
Purchases from Glencore	40.2		90.7
Purchases from BHH ⁽¹⁾	—		6.1

⁽¹⁾ We previously owned a 40% interest in Baise Haohai Carbon Co. Ltd. ("BHH") and purchased carbon anodes from them for use in our operations. Purchases represented herein were prior to the divestiture of our interest in BHH on May 22, 2019.