GSM Ferroglobe PLC

Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announces financial results for the third quarter of 2024.

Financial Highlights

($ in millions, except EPS)	Q3 2024				Q2 2024				%Q/Q				Q3 2023				%Y/Y				YTD 2024				YTD 2023				%Y/Y
Sales	$	433.5			$	451.0				(4	%)		$	416.8				4	%		$	1,276.4			$	1,274.1				0	%
Net income	$	18.8			$	34.9				(46	%)		$	40.9				(54	%)		$	51.7			$	93.8				(45	%)
Adjusted diluted EPS	$	0.11			$	0.13				(13	%)		$	0.27				(59	%)		$	0.25			$	0.63				(60	%)
Adj. EBITDA	$	60.4			$	57.7				5	%		$	104.5				(42	%)		$	144.0			$	254.9				(44	%)
Operating cash flow	$	11.1			$	2.0				454	%		$	(8.7	)			227	%		$	211.2			$	149.6				41	%
Capital expenditures1	$	21.2			$	21.9				(3	%)		$	19.4				9	%		$	61.2			$	60.9				1	%
Free cash flow2	$	(10.0	)		$	(19.9	)			49	%		$	(28.1	)			64	%		$	149.9			$	88.7				69	%

(1) Cash outflows for capital expenditures(2) Free cash flow is calculated as operating cash flow less capital expenditures

Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “Despite the market headwinds, third quarter results were in line with our expectations with adjusted EBITDA of $60 million, slightly higher than in the second quarter, while volumes were impacted by soft demand. We are taking appropriate actions to reduce production in response to current demand trends. We are optimistic that demand will improve in 2025 as the year progresses.

“We see significant potential in 2025 in the U.S. ferrosilicon market. The US Department of Commerce has imposed final anti-dumping and countervailing duties of 283% and 748%, respectively, on all Russian ferrosilicon imports. On November 1, the U.S. Department of Commerce announced preliminary anti-dumping duties on Brazil, Kazakhstan, and Malaysia, ranging from 1% to 22%. In addition, preliminary countervailing duties ranging from 2.4% to 61.7% were announced in September against Brazil, Kazakhstan and Malaysia.

“As part of our next ESG Report, we will announce a decarbonization objective of reducing scope 1 and 2 carbon emissions by at least 26% by 2030 from a 2020 baseline as part of our goal to enhance sustainability and transparency,” concluded Dr. Levi.

Consolidated Sales

In the third quarter of 2024, Ferroglobe reported net sales of $433.5 million, a decrease of 3.9% over the prior quarter and an increase of 4.0% from the comparable prior year period. This decrease over the prior quarter is primarily attributable to lower sales volumes in our portfolio products, partially offset by higher pricing in silicon metal and manganese-based specialty alloys. Silicon metal, silicon-based alloys and manganese-based alloys declined in sales by $10.4 million, $3.5 million and $8.4 million, respectively.

Product Category Highlights

Silicon Metal

($,000)	Q3 2024				Q2 2024				% Q/Q				Q3 2023				% Y/Y				YTD 2024				YTD 2023				% Y/Y
Shipments in metric tons:		56,910				62,872				(9.5	)%			57,031				(0.2	)%			172,965				144,624				19.6	%
Average selling price ($/MT):		3,401				3,244				4.8	%			3,481				(2.3	)%			3,268				3,834				(14.8	)%
Silicon Metal Revenue		193,551				203,957				(5.1	)%			198,525				(2.5	)%			565,250				554,488				1.9	%
Silicon Metal Adj.EBITDA		40,554				34,584				17.3	%			80,823				(49.8	)%			91,209				194,347				(53.1	)%
Silicon Metal Adj.EBITDA Margin		21.0	%			17.0	%							40.7	%							16.1	%			35.0	%

Silicon metal revenue in the third quarter was $193.6 million, a decrease of 5.1% over the prior quarter and a decrease of 2.5% from the comparable prior period. Average realized selling price increased by 4.8%, and shipments decreased due to lower volumes in EMEA and the U.S. The adjusted EBITDA for silicon metal increased 17.3% to $40.6 million during the third quarter, compared with $34.6 million for the prior quarter. The improvement in adjusted EBITDA margin in the quarter was mainly driven by higher average selling price and energy compensation in France.

Silicon-Based Alloys

($,000)	Q3 2024				Q2 2024				% Q/Q				Q3 2023				% Y/Y				YTD 2024				YTD 2023				% Y/Y
Shipments in metric tons:		45,489				46,953				(3.1	)%			46,427				(2.0	)%			143,613				144,984				(0.9	)%
Average selling price ($/MT):		2,237				2,241				(0.2	)%			2,475				(9.6	)%			2,221				2,645				(16.0	)%
Silicon-based Alloys Revenue		101,759				105,222				(3.3	)%			114,907				(11.4	)%			318,964				383,483				(16.8	)%
Silicon-based Alloys Adj.EBITDA		2,356				10,199				(76.9	)%			25,402				(90.7	)%			26,967				79,138				(65.9	)%
Silicon-based Alloys Adj.EBITDA Margin		2.3	%			9.7	%							22.1	%							8.5	%			20.6	%

Silicon-based alloy revenue in the third quarter was $101.8 million, a decrease of 3.3% over the prior quarter and a decrease of 11.4% from the comparable prior period. Shipments decreased by 3.1%, which was attributable to demand weakness. Adjusted EBITDA for the silicon-based alloys decreased to $2.4 million in the third quarter of 2024, a decrease of 76.9% compared with $10.2 million for the prior quarter. Adjusted EBITDA margin decreased mainly due to cost deterioration attributed to volume declines, lower fixed cost absorption and decreasing efficiency.

Manganese-Based Alloys

($,000)	Q3 2024				Q2 2024				% Q/Q				Q3 2023				% Y/Y				YTD 2024				YTD 2023				% Y/Y
Shipments in metric tons:		64,495				81,464				(20.8	)%			56,399				14.4	%			208,279				165,839				25.6	%
Average selling price ($/MT):		1,391				1,204				15.5	%			1,046				33.0	%			1,221				1,198				1.9	%
Manganese-based Alloys Revenue		89,713				98,083				(8.5	)%			58,993				52.1	%			254,309				198,675				28.0	%
Manganese-based Alloys Adj.EBITDA		27,854				13,832				101.4	%			11,000				153.2	%			47,206				14,107				234.6	%
Manganese-based Alloys Adj.EBITDA Margin		31.0	%			14.1	%							18.6	%							18.6	%			7.1	%

Manganese-based alloy revenue in the third quarter was $89.7 million, a decrease of 8.5% over the prior quarter and an increase of 52.1% from the comparable prior period. The average realized selling price increased by 15.5% and total shipments decreased by 20.8%. Adjusted EBITDA for the manganese-based alloys portfolio increased to $27.9 million in the third quarter of 2024, an increase of 101.4% compared with $13.8 million for the prior quarter. The increase in adjusted EBITDA margin was mainly driven by higher sales prices and the energy compensation in France in the third quarter of 2024.

Raw materials and energy consumption for production

Raw materials and energy consumption for production was $256.2 million in the third quarter of 2024 versus $264.3 million in the prior quarter, a decrease of 3.1%. As a percentage of sales, raw materials and energy consumption for production was 59% in the third quarter of 2024, equivalent to the prior quarter. Cost improvement compared to the previous quarter was driven by a decrease in energy costs in France and Spain and lower raw material prices, primarily manganese ore.

Net Income Attributable to the Parent

In the third quarter of 2024, net income attributable to the parent was $18.8 million, or $0.10 per diluted share, compared to a net income attributable to the parent of $34.9 million, or $0.18 per diluted share in the second quarter. The Company reported adjusted diluted earnings per share of $0.11 for the third quarter, compared with adjusted earnings per share of $0.13 per share in the prior quarter.

Adjusted EBITDA

In the third quarter of 2024, adjusted EBITDA was $60.4 million, or 13.9% of sales, an increase of 1% compared to adjusted EBITDA of $57.7 million, or 12.8% of sales, from the second quarter of 2024. This was mainly driven by stronger pricing.

Total Cash, Adjusted Gross Debt and Working Capital

($ in millions)	Q3 2024				Q2 2024				$				%				Q3 2023				$			%Y/Y
Total Cash1	$	120.8			$	144.5				(23.7	)			(16	%)		$	166.0				(45.2	)			(27	%)
Adjusted Gross Debt2	$	89.0			$	80.7				8.3				10	%		$	237.1				(148.0	)			(62	%)
Net (Cash)/Debt	$	(31.8	)		$	(63.7	)			31.9				50	%		$	71.1				(102.9	)			(145	%)
Total Working Capital	$	528.6			$	499.1				29.5				6	%		$	510.1				18.6				4	%

(1) Total cash is comprised of restricted cash, cash and cash equivalents(2) Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 for each of the periods presented

The Company’s cash and cash equivalents was $120.8 million as of September 30, 2024, down $23.7 million from $144.5 million as of June 30, 2024.

During the third quarter, the Company generated $11.1 million in cash flow from operations, used $20.4 million in cash flow from investing activities and used $16.4 million in cash flows from financing activities, mainly due to loan repayments of $6.6 million, payments for lease liabilities of $5.8 million and dividend payments of $2.4 million

Total working capital was $528.6 million on September 30, 2024, up from $499.1 million on June 30, 2024. The $29.5 million increase in working capital balance during the quarter was mainly due to a $12.3 million increase in trade and other receivables, $10.3 million increase in inventories and $6.9 million decrease in trade and other payables .

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “We posted a strong adjusted EBITDA of $60 million in the third quarter and are reiterating our annual adjusted EBITDA guidance of $150 million to $170 million. Our working capital increased during the quarter as we are preparing for earlier idling of certain operations in the fourth quarter to manage inventory and preserve cash.”

Capital Returns

During the third quarter, Ferroglobe repurchased approximately 117,000 shares at an average price of $4.22 per share and paid a quarterly cash dividend of $0.013 per share on September 27, 2024. Our next cash dividend of $0.013 per share will be paid on December 27, 2024, to shareholders of record as of December 20, 2024.

Conference Call

Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on November 7, 2024. The call may also be accessed via an audio webcast.

To join via phone:Conference call participants should dial 800-715-9871 (US toll-free) or 646-307-1963 (international) approximately 15 minutes prior to start time.

To join via webcast:A simultaneous audio webcast, and replay will be accessible here:https://edge.media-server.com/mmc/p/ej52hvj2

About Ferroglobe

Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, automotive, consumer products, construction, and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.

Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Non-IFRS Measures

This document may contain summarized, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, working capital,adjusted net profit, adjusted profit per share, adjusted gross debt and net cash(debt), are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

INVESTOR CONTACT:

Alex Rotonen, CFAVice President, Investor Relations Email: investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu RoigVice President, Communications & Public AffairsEmail: corporate.comms@ferroglobe.com

Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Income Statement(in thousands of U.S. dollars, except per share amounts)

	For the Three MonthsEnded				For the Three MonthsEnded				For the Three MonthsEnded				For the Nine MonthsEnded				For the Nine MonthsEnded
	September 30, 2024				June 30, 2024					September 30, 2023				September 30, 2024			September 30, 2023
Sales	$	433,533			$	451,048			$	416,810			$	1,276,434			$	1,274,083
Raw materials and energy consumption for production		(256,224	)			(264,285	)			(195,600	)			(777,528	)			(679,714	)
Energy consumption for production (PPA impact)		1,162				2,270				—				1,162				—
Other operating income		27,202				27,448				23,546				65,485				66,049
Staff costs		(71,885	)			(67,220	)			(83,582	)			(209,624	)			(226,097	)
Other operating expense		(74,475	)			(86,071	)			(65,708	)			(212,893	)			(197,020	)
Depreciation and amortization charges		(18,899	)			(18,875	)			(19,000	)			(56,443	)			(53,442	)
Impairment (loss)		—				—				(1,035	)			—				(1,676	)
Other gain (loss)		189				238				(12	)			1,125				533
Operating profit		40,603				44,553				75,419				87,718				182,716
Net finance income (expense)		(2,154	)			(5,315	)			(9,165	)			(15,138	)			(21,041	)
Exchange differences		(6,576	)			3,591				1,258				(1,602	)			(2,654	)
Profit (loss) profit before tax		31,873				42,829				67,512				70,978				159,021
Income tax (expense)		(13,301	)			(8,481	)			(23,399	)			(20,627	)			(53,380	)
Total profit for the period		18,572				34,348				44,113				50,351				105,641
Profit attributable to the parent	$	18,814			$	34,880			$	40,884			$	51,671			$	93,779
(Profit) loss profit attributable to non-controlling interest		242				532				(3,229	)			1,320				(11,862	)
EBITDA	$	52,926			$	67,019			$	95,677			$	142,559			$	233,504
Adjusted EBITDA	$	60,410			$	57,739			$	104,496			$	143,953			$	254,937
Weighted average shares outstanding
Basic		188,325				189,298				187,872				188,168				187,872
Diluted		190,393				191,006				190,531				190,176				190,242
Profit per ordinary share
Basic	$	0.10			$	0.18			$	0.22			$	0.27			$	0.50
Diluted	$	0.10			$	0.18			$	0.21			$	0.27			$	0.49

Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Statement of Financial Position(in thousands of U.S. dollars)
	As of September 30,				As of June 30,				As of December 31,
	2024				2024				2023
ASSETS
Non-current assets
Goodwill	$	29,702			$	29,702			$	29,702
Intangible assets		131,183				192,127				138,345
Property, plant and equipment		523,091				502,610				501,396
Other financial assets		16,492				15,744				19,792
Deferred tax assets		8,256				9,501				8,760
Receivables from related parties		1,679				1,606				1,658
Other non-current assets		24,288				22,003				22,156
Total non-current assets		734,691				773,293				721,809
Current assets
Inventories		407,782				397,436				383,841
Trade and other receivables		309,276				296,980				310,243
Receivables from related parties		2,808				2,685				2,772
Current income tax assets		7,890				8,901				15,977
Other financial assets		3,209				275				2
Other current assets		52,468				46,528				186,477
Restricted cash and cash equivalents		306				301				1,179
Cash and cash equivalents		120,504				144,186				136,470
Total current assets		904,243				897,292				1,036,961
Total assets	$	1,638,934			$	1,670,585			$	1,758,770
EQUITY AND LIABILITIES
Equity	$	915,707			$	876,006			$	869,886
Non-current liabilities
Deferred income		34,619				59,267				26,980
Provisions		25,964				23,434				19,970
Provision for pensions		31,213				29,760				29,805
Bank borrowings		14,207				14,397				14,913
Lease liabilities		57,864				54,463				20,304
Debt instruments		—				—				149,015
Other financial liabilities		27,280				28,116				65,231
Other obligations		6,116				5,444				35,883
Other non-current liabilities		243				194				199
Deferred tax liabilities		31,197				30,265				32,582
Total non-current liabilities		228,703				245,340				394,882
Current liabilities
Provisions		88,986				137,094				122,757
Provision for pensions		166				163				169
Bank borrowings		61,474				57,573				31,635
Lease liabilities		12,182				11,229				8,083
Debt instruments		—				—				5,765
Other financial liabilities		45,942				49,338				16,052
Payables to related parties		2,759				4,537				2,429
Trade and other payables		188,443				195,275				183,375
Current income tax liabilities		7,795				5,632				8,351
Other obligations		12,975				11,608				14,183
Other current liabilities		73,802				76,790				101,203
Total current liabilities		494,524				549,239				494,002
Total equity and liabilities	$	1,638,934			$	1,670,585			$	1,758,770

Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Statement of Cash Flows
	For the Three Months Ended				For the Three Months Ended				For the Three Months Ended				For the Nine Months Ended				For the Nine Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023				September 30, 2024				September 30, 2023
Cash flows from operating activities:
Profit for the period	$	18,572			$	34,348			$	44,113			$	50,351			$	105,641
Adjustments to reconcile net profit to net cash provided by operating activities:
Income tax expense		13,301				8,481				23,399				20,627				53,380
Depreciation and amortization charges		18,899				18,875				19,000				56,443				53,442
Net finance expense		2,154				5,315				9,165				15,138				21,041
Exchange differences		6,576				(3,591	)			(1,258	)			1,602				2,654
Impairment loss		—				—				1,035				—				1,676
Net loss (gain) due to changes in the value of asset		(193	)			—				4				(301	)			(365	)
Loss (gain) on disposal of non-current assets		4				—				—				(42	)			(183	)
Share-based compensation		1,496				913				2,773				3,337				6,719
Other loss (gain)		—				(238	)			8				(782	)			14
Changes in operating assets and liabilities
Decrease (increase) in inventories		(5,414	)			(36,696	)			(12,482	)			(23,099	)			103,925
Decrease (increase) in trade receivables		(1,638	)			5,982				(16,183	)			4,664				131,857
(Decrease) increase in trade payables		(13,678	)			17,387				(22,361	)			1,784				(77,056	)
Other changes in operating assets and liabilities		(22,118	)			(40,014	)			(46,796	)			92,465				(152,510	)
Income taxes (paid)		(6,847	)			(8,756	)			(9,144	)			(11,023	)			(100,607	)
Net cash provided by (used in ) operating activities:		11,114				2,006				(8,727	)			211,164				149,628
Cash flows from investing activities:
Interest and finance income received		766				600				739				2,107				2,376
Payments due to investments:
Intangible assets		(850	)			(735	)			(516	)			(2,169	)			(1,456	)
Property, plant and equipment		(20,302	)			(21,132	)			(18,853	)			(59,075	)			(59,475	)
Other financial assets		—				(3,000	)			—				(3,000	)			—
Net cash used in by investing activities		(20,386	)			(24,267	)			(18,630	)			(62,137	)			(58,555	)
Cash flows from financing activities:
Dividends paid		(2,441	)			(2,443	)			—				(7,322	)			—
Repayment of debt instruments		—				—				(150,000	)			(147,624	)			(178,025	)
Increase/(decrease) in bank borrowings:
Borrowings		145,804				145,962				131,063				386,377				393,035
Payments		(144,292	)			(130,772	)			(129,714	)			(358,076	)			(398,454	)
Payments for lease liabilities		(5,834	)			(2,883	)			(2,956	)			(11,690	)			(8,054	)
Other (payments) receipts from financing activities		(2,176	)			(289	)			—				(2,657	)			(17,377	)
Payments to acquire or redeem own shares		(492	)			—				—				(492	)			—
Interest paid		(6,955	)			(2,574	)			(19,371	)			(24,163	)			(39,284	)
Net cash (used in) provided by financing activities		(16,386	)			7,001				(170,978	)			(165,647	)			(248,159	)
Total net (decrease) in cash and cash equivalents		(25,658	)			(15,260	)			(198,335	)			(16,620	)			(157,086	)
Beginning balance of cash and cash equivalents		144,487				159,768				363,181				137,649				322,943
Exchange differences on cash and cash equivalents in foreign currencies		1,981				(21	)			1,127				(219	)			116
Ending balance of cash and cash equivalents	$	120,810			$	144,487			$	165,973			$	120,810			$	165,973
Restricted cash and cash equivalents		306				301				4,525				306				4,525
Cash and cash equivalents		120,504				144,186				161,448				120,504				161,448
Ending balance of cash and cash equivalents	$	120,810			$	144,487			$	165,973			$	120,810			$	165,973

Adjusted EBITDA ($,000):

	Q3´24				Q2´24				Q3´23				YTD´24				YTD´23
Profit attributable to the parent	$	18,814			$	34,880			$	40,884			$	51,671			$	93,779
Profit (loss) attributable to non-controlling interest		(242	)			(532	)			3,229				(1,320	)			11,862
Income tax expense		13,301				8,481				23,399				20,627				53,380
Net finance expense		2,154				5,315				9,165				15,138				21,041
Depreciation and amortization charges		18,899				18,875				19,000				56,443				53,442
EBITDA		52,926				67,019				95,677				142,559				233,504
Exchange differences		6,576				(3,591	)			(1,258	)			1,602				2,654
Impairment		—				—				1,035				—				1,676
Restructuring and termination costs		—				(4,540	)			5,535				(4,540	)			5,535
New strategy implementation		1,413				1,012				—				3,786				1,973
Subactivity		657				109				3,507				1,708				9,595
PPA Energy		(1,162	)			(2,270	)			—				(1,162	)			—
Adjusted EBITDA	$	60,410			$	57,739			$	104,496			$	143,953			$	254,937

Adjusted profit attributable to Ferroglobe ($,000):

	Q3´24				Q2´24				Q3´23				YTD´24				YTD´23
Profit attributable to the parent	$	18,814			$	34,880			$	40,884			$	51,671			$	93,779
Tax rate adjustment		3,271				(4,997	)			5,441				(1,710	)			11,080
Impairment		—				—				760				—				1,230
Restructuring and termination costs		—				(3,111	)			4,063				(3,111	)			4,063
New strategy implementation		968				694				—				2,595				1,448
Subactivity		450				75				2,574				1,170				7,043
PPA Energy		(796	)			(1,556	)			—				(796	)			—
Adjusted profit attributable to the parent	$	22,707			$	25,984			$	53,722			$	49,819			$	118,642

Adjusted diluted profit per share:

	Q3´24				Q2´24				Q3´23				YTD´24				YTD´23
Diluted profit per ordinary share	$	0.10			$	0.18			$	0.21			$	0.27			$	0.49
Tax rate adjustment		0.02				(0.03	)			0.03				(0.01	)			0.06
Impairment		—				—				0.00				—				0.01
Restructuring and termination costs		—				(0.02	)			0.02				(0.02	)			0.02
New strategy implementation		0.01				0.00				—				0.01				0.01
Subactivity		0.00				0.00				0.01				0.01				0.04
PPA Energy		(0.00	)			(0.01	)			—				(0.00	)			—
Adjusted diluted profit per ordinary share	$	0.11			$	0.13			$	0.27			$	0.25			$	0.63