UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the Quarter ending June 30, 2022

 

Commission File Number: 001-37668

 

FERROGLOBE PLC

(Name of Registrant)

5 Fleet Place

London, EC4M7RD

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F 

Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):     

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):     

 

 



This Form 6-K consists of the following materials, which appear immediately following this page:

Press release dated August 15, 2022 announcing results for the quarter ended June 30, 2022
Second quarter 2022 earnings call presentation

This Form 6-K is being furnished for the purpose of incorporating by reference the information in this Form 6-K into (a) Registration Statement No. 333-208911 on Form S-8, (b) Registration Statement No. 333-259445 on Form F-3, (c) Registration Statement No. 333-258254 on Form F-3 and (d) Registration Statement No. 333-255973 on Form F-3 and related prospectuses, as such registration statements and prospectuses may be amended from time to time.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

Date: August 15, 2022

  

FERROGLOBE PLC

 

 

 

 

by

/s/ Marco Levi

 

 

Name: Marco Levi

 

 

Title: Chief Executive Officer (Principal Executive Officer)


Ferroglobe Reports Record Financial Performance in Second Quarter 2022

LONDON, August 15, 2022 (GLOBE NEWSWIRE) – 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 announced results for the second quarter 2022.

FINANCIAL HIGHLIGHTS

Record Q2 2022 revenue of $840.8 million, up 17.6% over the prior quarter
Record Q2 2022 Adjusted EBITDA of $303.2 million, up 25.7% over the prior quarter
Adjusted EBITDA margin improvement of 234 basis points to 36.1% in Q2 2022, up from 33.7% the prior quarter
Record net profit of $185.1 million (diluted earnings per share of $0.98), compared to net profit of $150.8 million (diluted earnings per share of $0.80) in Q1 2022
Net debt of $194 million at quarter end, significant decrease from $342 million at the end of Q1
Bolstered liquidity: total cash of $306.5 million at quarter-end, up $130.5 million from the prior quarter, and new $100 million asset based loan (undrawn)

BUSINESS HIGHLIGHTS

Stellar performance across the platform; strong pricing across all product categories
Robust volume demand in manganese alloys
Successful execution of corporate priorities: significant reduction in net debt and bolstering of liquidity
Increased run-rate cost savings targets relating to the strategic turnaround plan:
from the initial run-rate target of $180 million to the revised target of $225 million
Restart of the second furnace at the Selma, Alabama facility during the quarter; current run-rate annual silicon metal production of 22,000 tons
Achieved new industry milestones in our silicon metal powders for batteries
Signing of MOU in the United States to establish low-carbon and fully traceable solar supply chain
Published inaugural ESG report

Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “Since designing our transformation plan in 2020, our team has been resilient in pushing forward to bolster our overall competitiveness by refocusing the product portfolio towards higher value added products and continuously improving our cost position.  I am proud that for six consecutive quarters now, we have steadily improved our financial results on the back of these various initiatives, and are currently reporting a record-setting second quarter.  Our profitablity is the highest in company history, our net debt is the lowest since the formation of Ferroglobe, and our daily operations are running seamlessly.  This drastic improvement in our operational and financial results reinforce our current strategy and approach to driving change so that we can ensure that our company remains competitive for the long-term.”

“As the operating environment evolves, our business continues to evolve.  We recently published our inaugural ESG report as an initial step towards increased transparency through reporting of key performance metrics.  We continue to feel good about the near-term fundamentals in terms of overall demand and pricing, relative to historical pricing levels.  However, in the face of macro uncertainty, inflation, and the global energy crisis, we are entering the second half of the year with a degree of caution.  Our primary focus remains on driving profitability and cash generation so that we can deliver on our goals,” concluded Dr. Levi.


Second Quarter 2022 Financial Highlights

    

Quarter Ended

    

Quarter Ended

Quarter Ended

%

%

Six Months Ended

Six Months Ended

%

$,000 (unaudited)

June 30, 2022

March 31, 2022

June 30, 2021

CQ/PQ

CYQ/PYQ

June 30, 2022

June 30, 2021

CY/PY

Sales

$

840,808

$

715,265

$

418,538

18%

101%

$

1,556,073

$

779,928

100%

Raw materials and energy consumption for production

$

(369,749)

$

(340,555)

$

(267,939)

9%

38%

$

(710,304)

$

(518,104)

37%

Operating profit (loss)

$

265,298

$

211,130

$

8,421

26%

3,050%

$

476,428

$

(35,762)

1,432%

Operating margin

31.6%

29.5%

2%

30.6%

(5%)

Adjusted net income (loss)
attributable to the parent

$

213,170

$

165,303

$

2,964

29%

7,092%

$

378,472

$

(15,208)

2,589%

Adjusted diluted EPS

$

1.14

$

0.88

$

0.02

$

2.02

$

(0.10)

Adjusted EBITDA

$

303,159

$

241,119

$

34,088

26%

789%

$

544,277

$

56,157

869%

Adjusted EBITDA margin

36.1%

33.7%

8.1%

35.0%

7.2%

Operating cash flow

$

164,818

$

65,908

$

(3,164)

150%

5,309%

$

230,726

$

11,627

1,884%

Free cash flow1

$

151,109

$

56,783

$

(5,738)

166%

2,733%

$

207,892

$

3,405

6,005%

Working Capital

$

687,345

$

613,187

$

334,291

12%

106%

$

687,345

$

334,291

106%

Working Capital as % of Sales2

20.4%

21.4%

20.0%

22.1%

21.4%

Cash and Restricted Cash

$

306,511

$

176,022

$

106,089

74%

189%

$

306,511

$

106,089

189%

Adjusted Gross Debt3

$

500,472

$

518,093

$

464,078

(3%)

8%

$

500,472

$

464,078

8%

Equity

$

637,710

$

475,477

$

299,469

34%

113%

$

637,710

$

299,469

113%

(1)

Free cash flow is calculated as operating cash flow plus investing cash flow

(2)

Working capital based on annualized quarterly sales respectively

(3)

Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 at June 30, 2022 Mar 31, 2022 & June 30, 2021

Sales

In the second quarter of 2022, Ferroglobe reported net sales of $840.8 million, up 18% over the prior quarter and up 101% over Q2 2021.  The improvement in our second quarter results is primarily attributable to higher volumes across our product portfolio, and higher pricing primarily in silicon based alloys and manganese based alloys. The $126 million increase in sales over the prior quarter was primarily driven by silicon metal, which accounted for $43 million, and manganese-based alloys, which accounted for $48 million.

Raw materials and energy consumption for production

Raw materials and energy consumption for production was $369.8 million in Q2 2022 versus $340.6 million in the prior quarter, an increase of 9%. As a percentage of sales, raw materials and energy consumption for production was 44% in the second quarter of 2022 versus 47.6% in the prior quarter.  Costs of several key inputs such as electrodes, paste and coal were adversely impacted by inflationary pressures.  Partially offsetting this was a $31.2 milion energy cost benefit in France, which will continue to benefit our costs for the remainder of 2022.


Net Income (Loss) Attributable to the Parent

In Q2 2022, net profit attributable to the Parent was $185.3 million, or $0.98 per diluted share, compared to a net profit attributable to the Parent of $151.2 million, or $0.80 per diluted share in Q1 2022.  

Adjusted EBITDA

In Q2 2022, Adjusted EBITDA was $303.2 million, or 36.1% of sales, an increase of 25.7% compared to adjusted EBITDA of $241.1 million, or 33.7% of sales in Q1 2022. The increase in the Q2 2022 Adjusted EBITDA is primarily attributable to volume products increase across all the products. Overall, the positive impact from pricing was $13.4 million and the impact from higher volumes was $49.6 million.  During the quarter, the impact of higher costs was $3.9 million, primarily due to the raw material price inflation, partially offset by improved energy costs in Spain and France.

Total Cash

The total cash balance was $306.5 million as of June 30, 2022, up $130.5 million from $176.0 million as of March 31, 2022.

During Q2 2022, we generated positive operating cash flow of $164.8 million, had negative cash flow from investing activities of $13.7 million, and $14.8 million in cash flow from financing activities.  

Total Working Capital

Total working capital was $687.3 million in the second quarter of 2022, increasing from $613.2 million at March 31, 2022.  The $74.1 million increase in working capital was due primarily to a $40.7 million increase in inventories as a result of higher sales, and a $34.8 million decrease in accounts payables. On a relative basis, we successfully kept working capital as a percentage of sales flat during the second quarter at 20.4%, compared to 21.4% during the prior quarter.  This is largely attributable to the financial discipline introduced to our operations over the past year.

Closing of Asset-Based Revolving Credit Facility

The Company closed a new, five-year $100 million North American asset-based revolving credit facility (the “ABL Revolver”), involving Ferroglobe’s subsidiary, Globe Specialty Metals, Inc. (“Globe”), and its wholly owned North American subsidiaries, as borrowers, and Bank of Montreal (“BMO”), as lender and agent, on June 30, 2022.

At closing, there was no drawing under the ABL Revolver. Going forward, potential drawings under the ABL Revolver will be used for general corporate purposes.

The ABL Revolver is subject to a borrowing base comprising North American inventory and accounts receivable of Globe (and certain of its subsidiaries) and bears interest of SOFR plus a spread of 150-175 basis points depending on the level of utilization.

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “During the second quarter we successfully executed a number of initiatives, in addition to delivering record setting results. We strengthened our balance sheet by increasing liquidity with a new $100 million asset based loan which offers significantly lower cost of capital relative to our existing debt instruments.  Furthermore, we are delivering on our key priority which is significant deleveraging of the balance sheet, with a gross debt target of $200 million.  We opportunistically repurchased senior notes in the open market and we successfully redeemed the full $60 million of 9% senior notes in July. The recent upgrades to our credit rating is a further testament to the strengthening of our credit profile.”


“While we have been performing well in a market with strong prices and healthy demand, a significant part of our outperformance has been the result of our transformation initiatives, which should enable us to ensure positive cash generation through the cycle.  Since initiating this plan, we have increased our target cost savings from $180 million to $225 million as we identify new areas for further cost reduction, improve efficiencies within our organization, and optimize our working capital in a collective effort to drive cash generation,” added Mrs. García-Cos.

.

Product Category Highlights

Silicon Metal

    

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

June 30, 2022

March 31, 2022

Change

June 30, 2021

Change

June 30, 2022

June 30, 2021

Change

Shipments in metric tons:

62,988

56,349

11.8%

67,322

(6.4)%

119,337

128,597

(7.2)%

Average selling price ($/MT):

5,649

5,552

1.7%

2,347

140.7%

5,603

2,317

141.8%

Silicon Metal Revenue ($,000)

355,819

312,850

13.7%

158,005

125.2%

668,669

297,959

124.4%

Silicon Metal Adj.EBITDA ($,000)

175,108

151,661

15.5%

13,655

1182.4%

326,769

28,417

1049.9%

Silicon Metal Adj.EBITDA Mgns

49.2%

48.5%

8.6%

48.9%

9.5%

Silicon metal revenue in the second quarter was $355.8 million, an increase of 13.7% over the prior quarter.  Total shipments of silicon metal increased 11.8% due to continued demand strength in the chemical and aluminum end markets, the restart of our Selma, Alabama facility, some carry over from Q1´22 due to logistical challenges. Costs were adversely impacted by inflationary pressure on raw materials and general operating costs ($10.4 million), increases across several other areas ($2.2 million), and positively offset by the current quarter’s net impact on the energy price adjustment in France ($12.2 million). Adjusted EBITDA for silicon metal increased to $175.1 million during the second quarter, up 15.5% from $151.7 million the prior quarter.

Silicon-Based Alloys

    

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

June 30, 2022

March 31, 2022

Change

June 30, 2021

Change

June 30, 2022

June 30, 2021

Change

Shipments in metric tons:

57,658

57,594

0.1%

65,222

(11.6)%

115,252

126,826

(9.1)%

Average selling price ($/MT):

4,097

3,680

11.3%

1,830

123.9%

3,889

1,750

122.2%

Silicon-based Alloys Revenue ($,000)

236,225

211,946

11.5%

119,356

97.9%

448,171

221,946

101.9%

Silicon-based Alloys Adj.EBITDA ($,000)

97,141

78,411

23.9%

11,380

753.6%

175,552

21,474

717.5%

Silicon-based Alloys Adj.EBITDA Mgns

41.1%

37.0%

9.5%

39.2%

9.7%


Silicon-based alloy revenue in the second quarter was $236.2 million, an increase of 11.5% over the prior quarter. The average realized selling price improve by 11.3%, due to product mix, with a greater weighting towards specialty grades and higher priced foundry products.  Total shipments were in-line over the prior quarter. Costs were adversely impacted by inflationary pressures across raw materials and general operating costs ($6.6 million), and expenses related to the Chateau Feulliet facility in France ($4.1 million).  This part of our business benefited from the positive energy price adjustment in Frnace ($2.9 million).  Adjusted EBITDA for the silicon- based alloys portfolio increased to $97.1 million, up 23.9% from $78.4 million the prior quarter.

Manganese-Based Alloys

    

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

June 30, 2022

March 31, 2022

Change

June 30, 2021

Change

June 30, 2022

June 30, 2021

Change

Shipments in metric tons:

97,007

75,082

29.2%

68,323

42.0%

172,089

140,932

22.1%

Average selling price ($/MT):

1,986

1,925

3.2%

1,414

40.5%

1,959

1,290

51.9%

Manganese-based Alloys Revenue ($,000)

192,656

144,533

33.3%

96,609

99.4%

337,189

181,802

85.5%

Manganese-based Alloys Adj.EBITDA ($,000)

32,871

20,371

61.4%

15,662

109.9%

53,242

25,836

106.1%

Manganese-based Alloys Adj.EBITDA Mgns

17.1%

14.1%

16.2%

15.8%

14.2%

Manganese-based alloy revenue in the second quarter was $192.7 million, an increase of 33.3% over the prior quarter. Total shipments of manganese-based alloys increased 29.2%.  Averaged realized selling prices were positively impacted by the increase in index pricing which continued in Q2 2022.  During the quarter, Adjusted EBITDA from our manganese-based alloys portfolio was $32.9 million, up 61.4% over the prior quarter as a result of higher volumes. Costs were adversely impacted by the mark-to-market accounting treatment relating to the earn-out provision ($6.7 million), an increase in raw material costs ($0.5 million), and positively offset by improved energy costs in Spain and France ($6.1 million).

Russia – Ukraine War

The recent outbreak of war between Russia and Ukraine has disrupted supply chains and caused instability in the global economy, while the United States and the European Union, among other countries, announced sanctions against Russia. The ongoing conflict could result in the imposition of further economic sanctions against Russia. Sanctions imposed on coal & assimilated products such as anthracite and metallurgical coke have obliged Ferroglobe to redirect its sourcing of such products to other origins at a moment of strong market demand. The uncertain supply and logistical conditions in Russia have also led Ferroglobe to diversify its sourcing of carbon electrodes. New sourcing were put in place during the course of Q2 2022 allowing Ferroglobe to ensure supply continuity to its operations worldwide. Although Ferroglobe managed successfully to ensure supply continuity at its operations, it was impacted by the short-term increase of raw materials prices linked to the conflict.


Subsequent events

Redemption of 9.0% Senior Secured Notes due 2025

On July 11, the Company announce the giving of a notice of redemption of all of the 9.0% Senior Secured Notes due 2025 issued by the Issuer (the “Notes”) at 100% of the principal amount thereof plus accrued interest.  On the date hereof, $60 million in aggregate principal amount was outstanding.  The redemption has been carried out on July 21, 2022.

Conference Call

Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, U.S. Eastern Daylight Time on August 16, 2022. Please dial-in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast.

To join via phone:                                                                 
Conference call participants should pre-register using this link:
https://register.vevent.com/register/BIff8f07e860f54efe8cf0e341348f49d0 
Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call.

To join via webcast:        
A simultaneous audio webcast, and replay will be accessible here:
https://edge.media-server.com/mmc/p/rvdq3dxw 

About Ferroglobe

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon- and manganese-based specialty alloys, and other ferroalloys serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, 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 margin, adjusted net profit, adjusted profit per share, working capital and net 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:

Gaurav Mehta
Executive Vice President – Investor Relations 
Email:   investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu Roig

Executive Director – Communications & Public Affairs

Email:   corporate.comms@ferroglobe.com


Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Income Statement

(in thousands of U.S. dollars, except per share amounts)

Quarter Ended

Quarter Ended

    

Quarter Ended

    

Six Months Ended

Six Months Ended

    

June 30, 2022

    

March 31, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Sales

  

$

840,808

  

$

715,265

$

418,538

$

1,556,073

$

779,928

Raw materials and energy consumption for production

  

(369,749)

  

(340,555)

(267,939)

(710,304)

(518,104)

Other operating income

  

26,223

  

23,008

37,105

49,231

39,018

Staff costs

  

(80,704)

  

(81,986)

(63,197)

(162,690)

(158,464)

Other operating expense

  

(130,992)

  

(83,176)

(93,171)

(214,168)

(130,006)

Depreciation and amortization charges, operating allowances and write-downs

  

(20,185)

  

(21,109)

(23,523)

(41,294)

(48,808)

Other gain (loss)

(103)

(317)

608

(420)

674

Operating profit (loss)

265,298

211,130

8,421

476,428

(35,762)

Net finance expense

  

(12,829)

  

(12,455)

(11,178)

(25,284)

(27,042)

Exchange differences

  

(7,882)

  

(4,393)

3,237

(12,275)

(6,077)

Profit (loss) before tax

  

244,587

  

194,282

480

438,869

(68,881)

Income tax benefit (loss)

  

(59,529)

  

(43,495)

250

(103,024)

1,094

Profit (loss) for the period

185,058

150,787

730

335,845

(67,787)

Loss attributable to non-controlling interest

  

265

  

376

1,180

641

2,315

Profit (loss) attributable to the parent

  

$

185,323

  

$

151,163

$

1,910

$

336,486

$

(65,472)

  

  

EBITDA

$

285,483

$

232,239

$

31,944

$

517,722

$

13,046

Adjusted EBITDA

$

303,159

$

241,119

$

34,088

$

544,277

$

56,157

Weighted average shares outstanding

Basic

187,441

187,408

169,298

187,424

169,295

Diluted

188,538

188,583

169,298

188,567

169,295

Profit (loss) per ordinary share

Basic

$

0.99

$

0.81

$

0.01

$

1.80

$

(0.39)

Diluted

$

0.98

$

0.80

$

0.01

$

1.78

$

(0.39)


Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

June 30,

March 31,

December 31,

    

2022

    

2022

    

2021

ASSETS

Non-current assets

Goodwill

$

29,702

$

29,702

$

29,702

Other intangible assets

94,866

188,407

100,642

Property, plant and equipment

528,198

548,862

554,914

Other non-current financial assets

3,920

3,977

4,091

Deferred tax assets

124

246

7,010

Non-current receivables from related parties

1,558

1,665

1,699

Other non-current assets

17,818

18,819

18,734

Non-current restricted cash and cash equivalents

2,077

2,220

2,272

Total non-current assets

678,263

793,898

719,064

Current assets

Inventories

403,004

362,298

289,797

Trade and other receivables

498,619

499,953

381,073

Current receivables from related parties

2,605

2,784

2,841

Current income tax assets

2,314

408

7,660

Other current financial assets

203

203

104

Other current assets

15,518

11,838

8,408

Current restricted cash and cash equivalents

Cash and cash equivalents

304,434

173,802

114,391

Total current assets

1,226,697

1,051,286

804,274

Total assets

$

1,904,960

$

1,845,184

$

1,523,338

EQUITY AND LIABILITIES

Equity

$

637,710

$

475,477

$

320,031

Non-current liabilities

Deferred income

48,961

70,699

895

Provisions

55,771

57,858

60,958

Bank borrowings

2,922

3,360

3,670

Lease liabilities

9,514

10,636

9,968

Debt instruments

385,911

404,954

404,938

Other financial liabilities (1)

37,020

38,674

4,549

Other Obligations (2)

43,232

37,241

38,082

Other non-current liabilities (2)

1,476

Deferred tax liabilities

41,228

35,423

25,145

Total non-current liabilities

624,559

658,845

549,681

Current liabilities

Provisions

95,300

159,386

137,625

Bank borrowings

96,412

95,359

95,297

Lease liabilities

7,342

7,869

8,390

Debt instruments

15,075

6,382

35,359

Other financial liabilities (1)

57,653

62,141

62,464

Payables to related parties

9,605

8,685

9,545

Trade and other payables

214,278

249,064

206,000

Current income tax liabilities

43,193

21,208

1,775

Other Obligations (2)

16,469

18,369

22,843

Other current liabilities (2)

87,364

82,399

74,328

Total current liabilities

642,691

710,862

653,626

Total equity and liabilities

$

1,904,960

$

1,845,184

$

1,523,338

(1)On January 25, 2022, the Ministry opened a hearing to decide on reimbursement of the loan. The company presented its allegations on February 15, 2022. Based on those allegations, the reimbursement procedure has been suspended and a new final report is expected to be made by the Ministry by the end of 2022 ending the administrative procedure and establishing the definitive amount of the partial reimbursement to be made. However, for accounting purposes the entire loan was considered short-term
(2)In 2021 we disaggregated “Other liabilities” into an additional line to the balance sheet “Other obligations“ to separately present certain contractual obligations whose nature and function differs from other items presented in the “Other liabilities line”, so as to allow a better understanding of the Company´s financial position.


Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Cash Flows

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

    

June 30, 2022

March 31, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Cash flows from operating activities:

Profit (loss) for the period

$

185,058

$

150,787

$

730

$

335,845

$

(67,787)

Adjustments to reconcile net (loss) profit
to net cash used by operating activities:

Income tax (benefit) expense

59,529

43,495

(250)

103,024

(1,094)

Depreciation and amortization charges,
operating allowances and write-downs

20,185

21,109

23,523

41,294

48,808

Net finance expense

12,829

12,455

11,178

25,284

27,042

Exchange differences

7,882

4,393

(3,237)

12,275

6,077

Net loss (gain) due to changes in the value of asset

(10)

(6)

(243)

(16)

(264)

Gain on disposal of non-current assets

302

302

(43)

Share-based compensation

970

1,807

673

2,777

886

Other adjustments (1)

112

21

(366)

133

(368)

Changes in operating assets and liabilities

(Increase) decrease in inventories

(59,568)

(73,611)

(8,770)

(133,179)

2,676

(Increase) decrease in trade receivables

(25,963)

(121,767)

(8,625)

(147,730)

(50,317)

Increase (decrease) in trade payables

(10,959)

40,073

16,184

29,114

42,336

Other

5,654

(12,463)

(32,783)

(6,809)

4,910

Income taxes paid

(30,901)

(687)

(1,178)

(31,588)

(1,235)

Net cash provided (used) by operating activities

164,818

65,908

(3,164)

230,726

11,627

Cash flows from investing activities:

Interest and finance income received

140

68

128

208

163

Payments due to investments:

Other intangible assets (1)

Property, plant and equipment

(13,855)

(9,193)

(3,245)

(23,048)

(8,928)

Other

6

6

Disposals:

Other non-current assets

543

543

Net cash (used) provided by investing activities

(13,709)

(9,125)

(2,574)

(22,834)

(8,222)

Cash flows from financing activities:

Payment for debt and equity issuance costs

(100)

(11,093)

(100)

(17,691)

Proceeds from debt issuance

(4,943)

40,000

(4,943)

40,000

Increase/(decrease) in bank borrowings:

Borrowings

301,360

244,164

149,945

545,524

277,635

Payments

(292,253)

(237,627)

(144,983)

(529,880)

(302,447)

Amounts paid due to leases

(2,277)

(2,518)

(3,157)

(4,795)

(6,013)

Other amounts received/(paid) due to financing activities

(19,119)

38,298

19,179

Interest paid

(2,376)

(34,799)

(3,333)

(37,175)

(20,348)

Net cash (used) provided by financing activities

(14,765)

2,575

27,379

(12,190)

(28,864)

Total net cash flows for the period

136,344

59,358

21,641

195,702

(25,459)

Beginning balance of cash and cash equivalents

176,022

116,663

84,367

116,663

131,557

Exchange differences on cash and
cash equivalents in foreign currencies

(5,855)

1

81

(5,854)

(9)

Ending balance of cash and cash equivalents

$

306,511

$

176,022

$

106,089

$

306,511

$

106,089

Cash from continuing operations

304,434

173,802

99,940

304,434

99,940

Current/Non-current restricted cash and cash equivalents

2,077

2,220

6,149

2,077

6,149

Cash and restricted cash in the statement of financial position

$

306,511

$

176,022

$

106,089

$

306,511

$

106,089


Adjusted EBITDA ($,000):

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

    

June 30, 2022

March 31, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Profit (loss) attributable to the parent

$

185,323

$

151,163

$

1,910

$

336,486

$

(65,472)

Profit (loss) attributable to non-controlling interest

(265)

(376)

(1,180)

(641)

(2,315)

Income tax (benefit) expense

59,529

43,495

(250)

103,024

(1,094)

Net finance expense

12,829

12,455

11,178

25,284

27,042

Exchange differences

7,882

4,393

(3,237)

12,275

6,077

Depreciation and amortization charges, operating allowances and write-downs

20,185

21,109

23,523

41,294

48,808

EBITDA

285,483

232,239

31,944

517,722

13,046

Restructuring and termination costs

3,406

5,909

2,144

9,315

43,111

New strategy implementation

14,270

2,971

17,240

Adjusted EBITDA

$

303,159

$

241,119

$

34,088

$

544,277

$

56,157

Adjusted profit attributable to Ferroglobe ($,000):

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

    

June 30, 2022

March 31, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Profit (loss) attributable to the parent

$

185,323

$

151,163

$

1,910

$

336,486

$

(65,472)

Tax rate adjustment

13,498

6,931

(404)

20,429

20,948

Restructuring and termination costs

2,765

4,797

1,458

7,562

29,315

New strategy implementation

11,584

2,412

13,995

Adjusted profit (loss) attributable to the parent

$

213,170

$

165,303

$

2,964

$

378,472

$

(15,208)

Adjusted diluted profit per share:

Quarter Ended

    

Quarter Ended

    

Quarter Ended

Six Months Ended

Six Months Ended

    

June 30, 2022

March 31, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Diluted profit (loss) per ordinary share

$

0.98

$

0.80

$

0.01

$

1.78

$

(0.39)

Tax rate adjustment

0.08

0.04

(0.00)

0.12

0.12

Restructuring and termination costs

0.02

0.03

0.01

0.04

0.17

New strategy implementation

0.06

0.01

0.08

Adjusted diluted profit (loss) per ordinary share

$

1.14

$

0.88

$

0.02

$

2.02

$

(0.10)


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Advancing Materials Innovation

NASDAQ: GSM

Second Quarter 2022

Results

August 16th, 2022


Text

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Forward-Looking Statements and

non-IFRS Financial Metrics

2

This presentation contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934,

as amended. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe our future plans, strategies and expectations. Forward-looking statements can

generally be identified by the use of forward-looking terminology, including, but not limited to, "may," “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” "believe," "will," "expect," "anticipate," "estimate,"

"plan," "intend," "forecast," “aim,” “target,” or variations of these terms and similar expressions, or the negative of these terms or similar expressions.

Forward-looking statements contained in this presentation are based on information presently available to Ferroglobe PLC (“we,” “us,” “Ferroglobe,” the “Company” or the “Parent”) and assumptions that we believe

to be reasonable, but are inherently uncertain. As a result, our 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 our control.

You are cautioned that all such statements involve risks and uncertainties, including without limitation, risks that Ferroglobe will not successfully integrate the businesses of Globe Specialty Metals, Inc. and Grupo

FerroAtlántica SAU, that we will not realize estimated cost savings, value of certain tax assets, synergies and growth, and/or that such benefits may take longer to realize than expected. Important factors that may

cause actual results to differ include, but are not limited to: (i) risks relating to unanticipated costs of integration, including operating costs, customer loss and business disruption being greater than expected; (ii) our

organizational and governance structure; (iii) the ability to hire and retain key personnel; (iv) regional, national or global political, economic, business, competitive, market and regulatory conditions including, among

others, changes in metals prices; (v) increases in the cost of raw materials or energy; (vi) competition in the metals and foundry industries; (vii) environmental and regulatory risks; (viii) ability to identify liabilities

associated with acquired properties prior to their acquisition; (ix) ability to manage price and operational risks including industrial accidents and natural disasters; (x) ability to manage foreign operations; (xi) changes

in technology; (xii) ability to acquire or renew permits and approvals; (xiii) changes in legislation or governmental regulations affecting Ferroglobe; (xiv) conditions in the credit markets; (xv) risks associated with

assumptions made in connection with critical accounting estimates and legal proceedings; (xvi) Ferroglobe's international operations, which are subject to the risks of currency fluctuations and foreign exchange

controls; and (xvii) the potential of international unrest, economic downturn or effects of currencies, tax assessments, tax adjustments, anticipated tax rates, raw material costs or availability or other regulatory

compliance costs. The foregoing list is not exhaustive.

You should carefully consider the foregoing factors and the other risks and uncertainties that affect our business, including those described in the “Risk Factors” section of our Registration Statement on Form F-1,

Annual Reports on Form 20-F, Current Reports on Form 6-K and other documents we file from time to time with the United States Securities and Exchange Commission. We do not give any assurance (1) that we will

achieve our expectations or (2) concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters,

consent decree, cost reductions, business strategies, earnings or revenue trends or future financial results. Forward- looking financial information and other metrics presented herein represent our key goals and are not

intended as guidance or projections for the periods presented herein or any future periods.

We do not undertake or assume any obligation to update publicly any of the forward-looking statements in this presentation to reflect actual results, new information or future events, changes in assumptions or

changes in other factors affecting forward-looking statements. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other

forward-looking statements. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this presentation.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital, adjusted gross debt and net debt, are non-IFRS financial metrics that, we believe, are pertinent measures of

Ferroglobe’s success. The Company has included these financial metrics to provide supplemental measures of its performance. We believe these metrics are important 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.

For additional information, including a reconciliation of the differences between such non-IFRS financial measures and the comparable IFRS financial measures, refer to the press release dated August 15, 2022

accompanying this presentation, which is incorporated by reference herein.


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Q2 Business Review


Table

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OPENING REMARKS

4

BUSINESS HIGHLIGHTS

Record setting sales, Adj. EBITDA, net income,

earnings, and cash flow generation

$841 million

SALES

18% QoQ increase

$303 million

ADJ. EBITDA

26% QoQ growth

36%

ADJ. EBITDA MARGIN

234 bps increase QoQ

$185 million

NET INCOME

$0.98 EPS (diluted)

23% increase QoQ

$194 million

NET DEBT (6/30/22)

$342 million (3/31/22)

Q2 FINANCIAL HIGHLIGHTS

$136 million

NET CASH FLOW

130% increase QoQ

Stellar performance across the platform in Q2

Strong pricing across all product categories

Higher demand for manganese alloys volumes

Cost cutting/improved efficiencies offsetting inflationary pressures

Successful execution of strategy

Sixth consecutive quarter of improvement (sales, Adj. EBITDA)

Increased run-rate cost savings target ($225m up from $180m)

Note:

1 Excludes subsequent redemptions of $60m of super senior notes in July 2022

Strong increase in cash generation

Top line growth coupled with cost management

Continued improvement in management of working capital

Strengthened balance sheet

Bolstered liquidity: cash generation & low rate, asset based loan

Significant debt reduction1


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PRODUCT CATEGORY SNAPSHOT

Silicon Metal

5

Volume trends

Index pricing trends ($/mt) Sequential quarters EBITDA evolution ($m)

• Avg. realized price up 1.7% QoQ (excl. JV shipments, avg. realized price

down -1.4% QoQ) outperforming the broader market

• Volumes increased 11.8%: end market demand strength, 2nd furnace

restart at Selma facility, and improved operational efficiency

• Inflationary pressure on raw materials and general operating costs

(-$10.4m), other items (-$2.2m), partially offset by current quarter net

impact on energy price adjustment in France (+$12.2m)

• Strong Q2 pricing environment positively impacts index-based

contracts in Q3

1,500

3,500

5,500

7,500

9,500

11,500

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

US CRU spot - import EU CRU spot (5.5.3)

51,215 54,912

61,275

67,322

61,713 63,681

56,349

62,988

Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22


Chart

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PRODUCT CATEGORY SNAPSHOT

Silicon-Based Alloys

6

Volume trends

Index pricing trends ($/mt) Sequential quarters EBITDA evolution ($m)

42,449

57,351 61,604 65,222

55,863 60,078 57,594 57,658

Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

• Avg. realized selling price up 11.3% primarily due to product mix: higher

weighting towards specialty grades and sales into higher priced foundry

products

• Inflationary pressure on raw materials and general operating costs

(-$6.6m), Chateau Feuillet related costs (-$4.1m), other (-$0.3m), partially

offset by current quarter net impact on energy price

adjustment in France (+$2.9m)

• Cautious outlook given steel capacity curtailments in Europe

500

1,500

2,500

3,500

4,500

5,500

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

FeSi US CRU spot - import FeSi EU CRU spot


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PRODUCT CATEGORY SNAPSHOT

Manganese-Based Alloys

7

Volume trends

Index pricing trends ($/mt) Sequential quarters EBITDA evolution ($m)

53,980

78,611 72,609 68,323 76,454

97,053

75,082

97,007

Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

• Avg. realized selling price up 3.2% QoQ

• Volumes increased 29.2% QoQ; ramp-up in production to meet higher

demand

• Costs adversely impacted by mark-to-market impact on future earnout

provision (-$6.7m), increase in raw material costs (-$.0.5m), partially

offset by improved energy costs in Spain (+$2.0m) and current quarter

impact on energy price adjustment in France (+$4.1m)

• Shipment levels expected to revert to historical levels

800

1,300

1,800

2,300

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22