Related Party Transactions

6 Months Ended

Jun. 30, 2021

The significant related party transactions occurring during the six months ended June 30, 2021 and 2020 are described below. We believe all of our transactions with related parties are at prices that approximate market.

Glencore ownership

As of June 30, 2021, Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9% of Century’s outstanding common stock (46.7% 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. Century and Glencore enter into various transactions from time to time such as the purchase and sale of primary aluminum, purchase and sale of alumina and other raw materials, tolling agreements as well as forward financial contracts and debt transactions.

Sales to Glencore

For the three months ended June 30, 2021 and 2020, approximately 58.0% and 71.0%, respectively, of our consolidated net sales were made to Glencore, while for the six months ended June 30, 2021 and 2020, we derived approximately 59.1% and 67.6%, respectively, of our consolidated net sales from Glencore.

Glencore purchases aluminum produced at our U.S. smelters at prices primarily 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 primarily 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 market-based prices. For the three months and six months ended June 30, 2021, we recorded $11.4 million and $11.4 million of revenue related to alumina sales to Glencore, respectively. For the three and six months ended June 30, 2020, we recorded $0.9 million and $1.2 million of revenue related to alumina sales to Glencore, respectively.

Purchases from Glencore

We purchase a portion of our alumina and certain other raw material requirements from Glencore. Alumina purchases from Glencore during the six months ended June 30, 2021 were priced based on published alumina and aluminum indices.

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.

Summary

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


	Three months ended June 30,				Six months ended June 30,
	2021		2020			2021		2020
Net sales to Glencore	$	306.4	$	285.6		$	574.7	$	556.6
Purchases from Glencore	79.5		33.4			151.8		73.6