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Ferroglobe Reports Solid First Quarter 2024 Financial Results

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Ferroglobe (NASDAQ: GSM) announced solid financial results for Q1 2024, with adjusted EBITDA of $25.8 million. The company raised its annual adjusted EBITDA guidance to $130-170 million from the previous $100-170 million. Despite a net loss of $2 million, Ferroglobe became net cash positive for the first time, with a gross debt of $81 million. The company initiated a $0.013 per share cash dividend, payable on March 28, and will issue another on June 27. A stock buyback program is also planned, pending shareholder approval. Ferroglobe restarted its French operations and is applying for a permit to expand U.S. silicon metal production. A strategic partnership with Coreshell aims to advance the use of silicon in EV batteries.

Positive
  • Increased annual adjusted EBITDA guidance to $130-170 million.
  • Reported Q1 adjusted EBITDA of $25.8 million.
  • Net cash positive for the first time with gross debt at $81 million.
  • Initiated quarterly cash dividend of $0.013 per share.
  • Announced another dividend payable on June 27.
  • Successfully restarted French operations.
  • Applying for permit to expand U.S. silicon metal production.
  • Signed MOU with Coreshell and made a strategic investment post-quarter.
Negative
  • Net loss of $2 million in Q1 2024.
  • Adjusted EBITDA decreased by 57% compared to Q4 2023.
  • Silicon metal adjusted EBITDA margin decreased from 13.2% to 9.6%.
  • Silicon-based alloys revenue decreased by 17% year-over-year.
  • Manganese-based alloys adjusted EBITDA decreased by 77%.
  • Raw materials and energy consumption increased by 29%, affecting production costs.

Insights

Ferroglobe’s Q1 2024 financial results present a mixed bag of achievements and challenges. The most noteworthy aspect is the increase in annual adjusted EBITDA guidance to $130-170 million, up from $100-170 million. This revision suggests a more optimistic outlook due to improving market conditions and strategic initiatives. However, net income remains in the red with a loss of $2.0 million, albeit an improvement from the previous quarter's loss of $11.1 million.

The company’s net cash position, standing positive for the first time with $79 million, is a remarkable milestone. This implies strengthened liquidity and reduced financial risk. Moreover, the decision to initiate a quarterly cash dividend and announce a second one signifies a commitment to returning value to shareholders. The stock buyback program, pending shareholder approval, could further enhance shareholder value by reducing the number of outstanding shares, potentially boosting EPS in the long run.

However, adjusted EBITDA fell significantly from $60.3 million in Q4 2023 to $25.8 million in Q1 2024, mainly due to lower realized prices and reduced energy compensation in France. This considerable drop brings into question the sustainability of profitability amid fluctuating market conditions. Investors should monitor these metrics closely to gauge the company's ability to navigate through volatility.

Overall, while the financial improvements are promising, the underlying operational challenges and market conditions warrant cautious optimism.

Ferroglobe's strategic initiatives, including the application for permits to expand silicon metal production and the partnership with Coreshell, position the company to capitalize on strong secular trends in solar energy and EV batteries. The memorandum of understanding and subsequent investment in Coreshell is a forward-thinking move, given the considerable advantages of silicon over graphite in EV batteries, such as up to 40% increase in driving range and faster charging times. This could potentially open new revenue streams and market opportunities.

The restart of French operations and the increase in shipments of silicon metal and alloys indicate operational resilience. However, it's important to note that the average selling prices for these products have declined, pointing to market pressures and competitive pricing environments. Investors should keep an eye on global demand trends and pricing stability to assess the long-term growth potential.

While the company's initiatives in green technologies are commendable, the immediate impact on financials may be limited. The real test will be how well these ventures translate into sustainable revenue and profit growth over time.

The announcement of a stock buyback program pending shareholder approval at the June AGM is a significant move from a corporate governance perspective. This program, if authorized, indicates confidence in the company's financial health and future prospects. Stock buybacks can often lead to an increase in share prices due to reduced supply, benefiting existing shareholders.

Additionally, the company's decision to apply for permits to expand silicon metal production in the U.S. aligns with regulatory compliance and strategic growth objectives. Regulatory approvals, particularly for brownfield expansions, tend to be more straightforward and less costly compared to greenfield projects, offering a prudent approach to capacity enhancement.

Investors should remain aware of potential legal challenges and environmental regulations that might arise during the expansion process. Overall, these moves are consistent with good corporate governance practices aimed at enhancing shareholder value.

Increasing annual Adj. EBITDA guidance to $130-170 million, up from $100-170 million previously

  • Posted adjusted EBITDA of $25.8 million for the first quarter of 2024
  • Net cash positive for the first time in the Company’s history; all-time low gross debt of $81 million
  • Initiated a quarterly cash dividend of $0.013 per share, paid on March 28, 2024; announcing a second quarter dividend of $0.013 per share, payable on June 27
  • Board approved stock buyback program; shareholder vote to approve buyback scheduled for June 2024 AGM
  • Successfully restarted French operations on April 1, 2024, with all furnaces running
  • Applying for permit to expand silicon metal production in the U.S. to address strong secular trends in solar and EV batteries
  • Signed a memorandum of understanding with Coreshell, followed by an investment post-quarter after strong test results in our lab

LONDON, May 14, 2024 (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 financial results for the first quarter 2024.

Financial Highlights

        %   %
($ in millions, except EPS)Q1 2024 Q4 2023 Q/Q Q1 2023 Y/Y
              
Sales$391.9  $376.0  4% $400.9  (2%)
Net (loss) income$(2.0) $(11.1) 82% $21.0  (110%)
Adjusted diluted EPS$  $0.07  82% $0.05  (110%)
Adj. EBITDA$25.8  $60.3  (57%) $44.8  (42%)
Operating cash flow$198.0  $25.1  688% $134.8  47%
Capital expenditures1$18.2  $25.5  (29%) $18.0  1%
Free cash flow2$179.8  $(0.4) (45.509%) $116.8  54%
(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, “In the first quarter, we continued to make progress in improving Ferroglobe’s financial position, ending the quarter with a positive net cash position for the first time, representing the strongest financial position in the Company’s history. We announced a dividend last quarter and are declaring another dividend of $0.013. Our board recently approved a buyback initiative, and we expect our shareholders to do the same during our annual shareholders’ meeting in June. We will continue to focus on policies that return value to our shareholders.

“As we position the Company to exploit the strong anticipated demand in silicon metal to address the solar and EV battery markets, we are in the process of applying for a permit to expand our silicon metal operations in North America. This will be in the form of a brownfield expansion, which is significantly less costly than a greenfield buildout. In March, we signed a memorandum of understanding with Coreshell, a leading US-based battery technology company, working towards building the world's first battery-grade metallurgical silicon for electric vehicles. Recently we solidified this relationship by making a strategic investment in Coreshell. This is an important opportunity for Ferroglobe to play a key role in the ongoing evolution of the electric vehicle battery market. Using silicon in EV batteries has significant advantages over graphite, including lower cost, an increase of up to 40% in driving range as well as significantly faster charging times. We believe silicon will be an important component in the innovation of EV batteries and we are positioning the company to be an integral part of it.

“The indices across all our businesses are up from the lows. While the initial improvement in prices was driven by supply-related issues, these prices have held strong and we are starting to see some signs of fundamental improvements in demand in the U.S. Accordingly, we are raising the low end of our annual adjusted EBITDA guidance, increasing the range from $100-170 million to $130-170 million,” concluded Dr. Levi.

Consolidated Sales

In the first quarter of 2024, Ferroglobe reported net sales of $391.9 million, an increase of 4% over the prior quarter and a decrease of 2% over the year-ago period. The increase in our first quarter results is primarily attributable to higher volumes across our product portfolio, partly offset by lower pricing in silicon metal and silicon-based alloys. Over the prior quarter, the sales increase was primarily driven by silicon-based alloys, which accounted for $5 million, and manganese-based alloys, which accounted for $6 million of the increase, while silicon metals sales remained stable.

Product Category Highlights

Silicon Metal

($,000)Q1 2024 Q4 2023 % Q/Q Q1 2023 % Y/Y
Shipments in metric tons: 53,183   49,761  6.9%  36,942  44.0%
Average selling price ($/MT): 3,155   3,371  (6.4)%  4,351  (27.5)%
             
Silicon Metal Revenue   167,792    167,744  0.0%   160,735  4.4%
Silicon Metal Adj.EBITDA   16,071    22,188  (27.6)%   31,120  (48.4)%
Silicon Metal Adj.EBITDA Margin 9.6%  13.2%    19.4%  


Silicon metal revenue in the first quarter was $167.8 million, in line with the prior quarter. The average realized selling price decreased by 6.4%, primarily due to a price decline of 10% in the U.S. Total shipments increased due to higher volumes in EMEA. Adjusted EBITDA for silicon metal decreased to $16.1 million during the first quarter, a decrease of 27.6% compared with $22.2 million for the prior quarter. The Adjusted EBITDA margin in the quarter decreased mainly driven by reduced energy compensation in France in the first quarter of 2024.

Silicon-Based Alloys

($,000)Q1 2024 Q4 2023 % Q/Q Q1 2023 % Y/Y
Shipments in metric tons: 51,171   46,446  10.2%  49,100  4.2%
Average selling price ($/MT): 2,188   2,300  (4.9)%  2,756  (20.6)%
             
Silicon-based Alloys Revenue   111,962    106,826  4.8%   135,320  (17.3)%
Silicon-based Alloys Adj.EBITDA   14,412    34,973  (58.8)%   21,924  (34.3)%
Silicon-based Alloys Adj.EBITDA Margin 12.9%  32.7%    16.2%  


Silicon-based alloy revenue in the first quarter was $112.0 million, an increase of 4.8% over the prior quarter. The shipment increase of 10.2% is attributable to stronger volumes in the U.S. Adjusted EBITDA for the silicon-based alloys decreased to $14.4 million in the first quarter of 2024, a decrease of 58.8% compared with $35.0 million for the prior quarter. The Adjusted EBITDA margin decreased in the quarter mainly due to the decrease in average realized price during the first quarter of 2024.

Manganese-Based Alloys

($,000)Q1 2024 Q4 2023 % Q/Q Q1 2023 % Y/Y
Shipments in metric tons: 62,320   61,404  1.5%  46,867  33.0%
Average selling price ($/MT): 1,066   985  8.2%  1,316  (19.0)%
             
Manganese-based Alloys Revenue   66,433    60,483  9.8%   61,677  7.7%
Manganese-based Alloys Adj.EBITDA   5,520    23,886  (76.9)%   2,043  170.2%
Manganese-based Alloys Adj.EBITDA Margin 8.3%  39.5%    3.3%  


Manganese-based alloy revenue in the first quarter was $66.4 million, an increase of 9.8% over the prior quarter. The average realized selling price increased by 8.2% and total shipments increased 1.5%. Adjusted EBITDA for the manganese-based alloys portfolio decreased to $5.5 million in the first quarter of 2024, a decrease of 76.9% compared with $23.9 million for the prior quarter. The Adjusted EBITDA margin decrease was mainly driven by reduced energy compensation in France.

Raw materials and energy consumption for production

Raw materials and energy consumption for production was $257.4 million in the first quarter of 2024 versus $199.9 million in the prior quarter, an increase of 29%. As a percentage of sales, raw materials and energy consumption for production was 66% in the first quarter of 2024 versus 53% in the prior quarter. This variance was mainly due to higher production costs in Europe related to the idling of operations in France during the first quarter of 2024 compared to the fourth quarter of 2023.

Net (Loss) Income Attributable to the Parent

In the first quarter of 2024, net loss attributable to the parent was $2.0 million, or ($0.01) per diluted share, compared to a net loss attributable to the parent of $11.1 million, or ($0.06) per diluted share in the fourth quarter.

Adjusted EBITDA

In the first quarter of 2024, adjusted EBITDA was $25.8 million, or 6.6% of sales, a decrease of 57.2% compared to adjusted EBITDA of $60.3 million, or 16% of sales in the fourth quarter of 2023. The decrease in the first quarter of 2024 adjusted EBITDA as a percentage of sales is primarily attributable to lower realized prices and lower indirect CO2 and energy compensation in France.

Total Cash, Adjusted Gross Debt and Working Capital

                %
($ in millions)Q1 2024 Q4 2023 $ % Q1 2023 $ Y/Y
                  
Total Cash$159.8  $137.6  22 16% $344.2  (184) (54%)
Adjusted Gross Debt1 80.8   238.5  (158) (66%)  399.7  (319) (80%)
Net (Cash)/Debt$(79.0) $(100.9) 22 22% $55.5  (134) (242%)
Total Working Capital$487.5  $510.7  (23) (5%) $582.3  (95) (16%)
(1)  Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 for each of the periods presented


The total cash balance was $159.8 million as of March 31, 2024, up $22.1 million from $137.6 million as of December 31, 2023.

During the first quarter of 2024, we generated $198.0 million of operating cash flow and had a negative cash flow from investing activities of $17.5 million. Cash flow from financing activities was negative $156.3 million as we paid the remaining senior secured notes of approximately $150 million.

Total working capital was $487.5 million on March 31, 2024, improving from $510.7 million as of December 31, 2023. The $23.2 million decrease in working capital balance during the quarter was mainly due to a $22.2 million decrease in inventories and a $6.3 million decrease in trade and other receivables, partially offset by a $5.3 million decrease in trade and other payables.

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “This quarter Ferroglobe turned net cash positive for the first time in its history, a significant milestone for the Company. We achieved a net cash balance of $79 million at quarter end, representing a total cash of $160 million and adjusted gross debt of $81 million. Our operating cash flow in the quarter was strong, driven by a payment of $154 million from our French energy agreement. Also, for the first time in the Company’s history, we declared a dividend last quarter of $0.013, which was paid on March 28th and are announcing another dividend this quarter of $0.013, which will be payable on June 27th. With a strong financial position, we are working on various strategies to return value to shareholders. Our board has approved a share buyback program and once approved by our shareholders at our annual general meeting we will implement the buyback strategy.”

Enhanced Capital Return Policy

Ferroglobe's board of directors approved a share buyback program, which requires a shareholder vote as a UK company listed on Nasdaq. As part of the annual general meeting in June, we are seeking authorization of $200 million for a share repurchase program over a 5-year period.

The company paid a quarterly cash dividend of $0.013 per share on March 28, 2024, to shareholders of record as of the close of business on March 22, 2024. A cash dividend of $0.013 per share will be paid on June 27, 2024, to shareholders of record as of June 17, 2024.

Conference Call

Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on May 15, 2024. 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/BI3710d5099e3c4756b47a1496c71ce9ab
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/ur2yewsw

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, CFA
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)

         
 For the Three Months Ended For the Three Months Ended  For the Three Months Ended
 March 31, 2024    December 31, 2023  March 31, 2023
Sales$391,854   $375,951  $400,868 
Raw materials and energy consumption for production (257,357)   (199,911)  (255,036)
Energy consumption for production (PPA impact) (1,932)  339   23,193 
Other operating income 10,836    34,944   14,814 
Staff costs (70,519)   (79,761)  (67,543)
Other operating expense (52,348)   (73,071)  (54,145)
Depreciation and amortization charges (18,669)   (20,090)  (17,990)
Impairment (loss) gain    (23,614)  246 
Other gain (loss) 696   (563)  47 
Operating profit  2,561    14,224    44,454 
Net finance income (expense) (7,669)   (12,331)  (10,980)
Exchange differences 1,383    (4,897)  1,455 
(Loss) profit before tax  (3,725)    (3,004)   34,929 
Income tax (expense) benefit 1,155    (4,160)  (9,461)
Total (Loss) profit for the period  (2,570)   (7,164)   25,468 
         
(Loss) profit attributable to the parent$(2,024)  $(11,118) $20,991 
(Loss) profit attributable to non-controlling interest (546)   3,954   4,477 
         
EBITDA$22,613  $29,417  $63,899 
Adjusted EBITDA$25,803  $60,262  $44,767 
         
         
Weighted average shares outstanding        
Basic 187,927   187,872   187,873 
Diluted 187,927   187,872   189,629 
         
Profit (loss) per ordinary share        
Basic$(0.01) $(0.06) $0.11 
Diluted$(0.01) $(0.06) $0.11 


 
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)

            
 As of March 31, As of December 31, As of March 31,
 2024    2023    2023
ASSETS
Non-current assets           
Goodwill$29,702  $29,702  $29,702 
Intangible assets 193,592   138,345   223,447 
Property, plant and equipment 500,940   501,396   497,557 
Other financial assets 13,944   19,792   14,702 
Deferred tax assets 10,636   8,760   7,123 
Receivables from related parties 1,622   1,658   2,915 
Other non-current assets 21,770   22,156   19,297 
Restricted cash and cash equivalents       2,175 
Total non-current assets  772,206    721,809    796,918 
Current assets           
Inventories 361,602   383,841   417,042 
Trade and other receivables 303,942   310,243   312,452 
Receivables from related parties 2,712   2,772   2,728 
Current income tax assets 10,740   15,977   7,652 
Other financial assets 2   2   2 
Other current assets 27,894   186,477   26,914 
Assets and disposal groups classified as held for sale       1,088 
Restricted cash and cash equivalents 298   1,179   2,411 
Cash and cash equivalents 159,470   136,470   339,611 
Total current assets  866,660    1,036,961    1,109,900 
Total assets$ 1,638,866  $ 1,758,770  $ 1,906,818 
            
EQUITY AND LIABILITIES
Equity$ 843,702  $ 869,886  $ 658,490 
Non-current liabilities           
Deferred income 77,185   26,980   128,125 
Provisions 22,102   19,970   25,027 
Provision for pensions 29,293   29,805   25,910 
Bank borrowings 14,643   14,913   15,590 
Lease liabilities 54,361   20,304   11,744 
Debt instruments    149,015   304,621 
Other financial liabilities 68,186   65,231   39,276 
Other obligations 1,536   35,883   36,310 
Other non-current liabilities 224   199   22 
Deferred tax liabilities 30,253   32,582   35,272 
Total non-current liabilities  297,783    394,882    621,897 
Current liabilities           
Provisions 127,533   122,757   146,308 
Provision for pensions 165   169   193 
Bank borrowings 42,762   31,635   31,462 
Lease liabilities 12,297   8,083   7,492 
Debt instruments    5,765   4,688 
Other financial liabilities 15,190   16,052   123,281 
Payables to related parties 3,527   2,429   2,377 
Trade and other payables 178,038   183,375   147,150 
Current income tax liabilities 6,262   8,351   48,326 
Other obligations 11,999   14,183   18,790 
Other current liabilities 99,608   101,203   96,364 
Total current liabilities  497,381    494,002    626,431 
Total equity and liabilities$ 1,638,866  $ 1,758,770  $ 1,906,818 


 
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows

         
 For the Three Months Ended For the Three Months Ended For the Three Months Ended
 March 31, 2024 December 31, 2023 March 31, 2023
Cash flows from operating activities:        
(Loss) profit for the period$ (2,570) $ (7,164) $ 25,468 
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:        
Income tax (benefit) expense (1,155)  4,160   9,461 
Depreciation and amortization charges 18,669   20,090   17,990 
Net finance expense 7,669   12,331   10,980 
Exchange differences (1,383)  4,897   (1,455)
Impairment loss (gain)    23,614   (246)
Share-based compensation 928   683   1,905 
Other loss (gain) (696)  562   (47)
Changes in operating assets and liabilities        
Decrease (increase) in inventories 19,011   (1,746)  86,275 
Decrease (increase) in trade receivables 320   (5,399)  118,714 
(Decrease) increase in trade payables (1,925)  2,879   (73,864)
Other changes in operating assets and liabilities 154,596   (17,067)  (44,100)
Income taxes (paid) received 4,580   (12,701)  (16,298)
Net cash provided by (used in ) operating activities:  198,044    25,139    134,783 
Cash flows from investing activities:        
Interest and finance income received 741   1,349   668 
Payments due to investments:        
Intangible assets (584)  (1,331)   
Property, plant and equipment (17,641)  (24,204)  (17,960)
Disposals:        
Other non-current assets    935    
Net cash used in by investing activities  (17,484)   (23,251)   (17,292)
Cash flows from financing activities:        
Dividends paid (2,438)      
Proceeds from debt issuance (147,624)      
Repayment of debt instruments    (1,050)  (26,283)
Increase/(decrease) in bank borrowings:        
Borrowings 94,611   39,239   109,762 
Payments (83,012)  (58,052)  (141,900)
Payments for lease liabilities (2,973)  (3,309)  (2,247)
Other (payments) receipts from financing activities (192)  (4,289)  (17,377)
Interest paid (14,634)  (2,923)  (18,192)
Net cash (used in) provided by financing activities  (156,262)   (30,384)   (96,237)
Total net (decrease) increase in cash and cash equivalents  24,298    (28,496)   21,254 
Beginning balance of cash and cash equivalents 137,649   165,973   322,943 
Exchange differences on cash and cash equivalents in foreign currencies (2,179)  172    
Ending balance of cash and cash equivalents$ 159,768  $ 137,649  $ 344,197 
Restricted cash and cash equivalents 298   1,179   4,586 
Cash and cash equivalents 159,470   136,470   339,611 
Ending balance of cash and cash equivalents$ 159,768  $ 137,649  $ 344,197 


Adjusted EBITDA ($,000):

 Q1´24 Q4´23 Q1´23
Profit (loss) attributable to the parent$ (2,024) $ (11,118) $ 20,991 
Profit (loss) attributable to non-controlling interest (546)  3,954   4,477 
Income tax (benefit) expense (1,155)  4,160   9,461 
Net finance expense 7,669   12,331   10,980 
Depreciation and amortization charges 18,669   20,090   17,990 
EBITDA  22,613    29,417    63,899 
Exchange differences (1,383)  4,897   (1,455)
Impairment    23,614   (246)
New strategy implementation 1,361   (1,000)  2,049 
Subactivity 942   2,995   3,713 
PPA Energy 2,270   339   (23,193)
Adjusted EBITDA$ 25,803  $ 60,262  $ 44,767 


Adjusted profit attributable to Ferroglobe ($,000):

 Q1´24 Q4´23 Q1´23
(Loss) profit attributable to the parent$ (2,024) $ (11,118) $ 20,991 
Tax rate adjustment 17   4,959   (599)
Impairment    17,333   (175)
New strategy implementation 933   (734)  1,459 
Subactivity 646   2,198   2,644 
PPA Energy 1,556   249   (16,513)
Adjusted profit attributable to the parent$ 1,168  $ 12,887  $ 7,807 


Adjusted diluted profit per share:

 Q1´24 Q4´23 Q1´23
Diluted (loss) profit per ordinary share$ (0.01) $ (0.06) $ 0.11 
Tax rate adjustment 0.00   0.03   (0.00)
Impairment    0.09   (0.00)
New strategy implementation 0.00      0.01 
Subactivity 0.00   0.01   0.01 
PPA Energy 0.01   0.00   (0.09)
Adjusted diluted (loss) profit per ordinary share$  $ 0.07  $ 0.05 

FAQ

What was Ferroglobe's adjusted EBITDA for Q1 2024?

Ferroglobe's adjusted EBITDA for Q1 2024 was $25.8 million.

What is Ferroglobe's updated annual adjusted EBITDA guidance for 2024?

Ferroglobe updated its annual adjusted EBITDA guidance to $130-170 million.

When is Ferroglobe's next dividend payout date?

Ferroglobe's next dividend payout date is June 27, 2024.

Has Ferroglobe become net cash positive?

Yes, Ferroglobe became net cash positive for the first time in Q1 2024.

What is Ferroglobe's gross debt as of Q1 2024?

Ferroglobe's gross debt as of Q1 2024 is $81 million.

Is Ferroglobe planning a stock buyback program?

Yes, Ferroglobe's board has approved a stock buyback program pending shareholder approval.

What are Ferroglobe's plans for expanding silicon metal production?

Ferroglobe is applying for a permit to expand silicon metal production in the U.S. due to strong demand in solar and EV batteries.

What is Ferroglobe's partnership with Coreshell focused on?

Ferroglobe's partnership with Coreshell is focused on developing battery-grade metallurgical silicon for electric vehicles.

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