Ferroglobe (GSM) 2 Mar 212020 Q4 Earnings call transcript

Good morning, everyone and thank you for joining Ferroglobe's Fourth Quarter and Full Year 2020 Conference Call.

Joining me today are Marco Levi, our Chief Executive Officer; Gaurav Mehta, our Transformation Director and EVP of Strategy and Investor Relations; and Jorge Lavin, Group Controller.

Before we get started with some prepared remarks, I'm going to read a brief statement. Please turn to Slide 2 at this time. Statements made by management during this conference call that are forward-looking are based on current expectations. those cause can to most be filings exhibits could these materially recent that available and statements are forward-looking found to factors actual webpage, differ results from SEC on Risk our which www.ferroglobe.com. filings, in Ferroglobe's

discussion Reconciliation this EBITDA, to measures in be of debt these reference debt, share, which our adjusted earnings found SEC adjusted non-IFRS diluted includes per gross filings. most are net addition, In EBITDA, and non-IFRS recent measures. may

Next slide, please.

At first will now and our we our -- finally, drivers results. provide this Chief During the as highlights to an as quarter like we call, today's details and financial I And update will Officer. would our the Marco I fourth the review Levi, key Then provide to full like call transformation well Executive on for and some over additional would behind I XXXX year performance will time, operating turn our business plan. environment. on the

slide, Next please.

Thank extraordinary you, defining and good Ferroglobe afternoon year ways. for and was an or everyone. XXXX to in a many good one Beatriz morning

our And On our forced to from swift new This end, pandemic. the Management on challenges it expand required It changed cost processes efforts making. accelerate the decision the operated the and resulting assets. global us the we world fighting team change decisions our make one support cutting drastic Senior side. internal relatively for to and way the to

many in early a are area accountability. a lowered while without XXXX, significant multi-year the encountering, forward business made the do robust clear decline And strides least around not parts EBITDA agenda refinanced turbulent the cash. drive to potential deliver. were performance XXXX turning a in navigating positive in the sales well operate we've This cash, our asset XX% company. And in trapped particularly for Despite company at to of returned and a account a turning the emphasize our to to testament design highlighted disruptions have focus gaps we levels, operating a around to this as of reinforces On costs. managing this this the and any the redesigning environment. management have business base. financing to This but opportunities unprecedented we now drive during successfully changes the make also our the our we the operating we our align areas. versus previously challenges was to the have our other XXXX. lastly, at push ability has for what to strategy program, and view of while assumable defined to adjusted or business we We securitization which end, and operate organization during roadmap But many the in of continued Furthermore, pandemic year In in some the an critical is strategy period. which days All was per We company. been we the ways, success all, initiative, various and we and for change. with started would team financial results and liked

further to our recent we discussed create we details value. have or have recently projections going and provide We turnaround published plan now on calls are

critical progress the the steadily only also But we months. year environment pivotal will priorities. few as the substantial operating over on not we making be XXXX As ahead, look are improved past

the new underlying process, turnaround financing, in the business validation relating unsecured we plan. capital milestone the our steps a our the certainly financing recognized it injection by Furthermore, plan and value have So strategy the to notes execute we on Year starting maturity proposed to are is this informed addresses our which addresses New then ensuring senior partners. company. are back on progress a our positive we path note. A of the financing taking we the weeks few reaching are into market is that the toward illustrates resources that In clear recovery towards a of

phase plan of into creation the we the we turnaround get On more I presentation. in itself, preparation work XXXX. the new this time, in most are today's At areas. completed in the will this all execution later across

please. X Moving ahead to Slide

volumes billion, is of we return plant to compared a million $XX.X $XXX to XXXX all for And the during the on than XX% XXXX. of related generated $X.XX The impact which attributable XXXX year $XXX a Niagara lower pricing an charge of million. full sales including is which goodwill unforeseen the of year, For products. million, is in across our full to sales $X.XX loss This impairment adjusted loss of full lastly, and were to COVID-XX billion an includes primarily net net year $XXX impairment EBITDA. million charge positive

For the adjusted of the the year, EBITDA, costs. million drastic Once this Likewise, XXXX, positive year full highlight compares we EBITDA XXXX. $XXX to variance $XX.X cash $XX.X negative changes generated we of year. which again, the have we for had flow returned during [indiscernible] million million to operating throughout adjusted made

The sales the coupled QX significantly which are the EBITDA prices some costs third to margin of of the later in million, sales prior loss was marked third million quarter. higher quarter. quarter part higher the of sales the with for during in loss During increase not million million $XXX compares of Adjusted million, which quarter net $XX.X generated quarter of quarter, fourth an the market the a fourth to compared recurring resulting erosion quarter. higher XX% the quarter. for demand, $X.X during million, volumes the [third] $XX.X and of for by net The $XX.X higher a reflecting positive for was Overall volume levels proving particularly during reported the slightly and shift company $XXX quarter. decrease of fourth

with The million to million levels. $XX of of end. at million the was We gross debt at effort net to continued $XXX gross debt debt $XXX and the reducing cash accrual. by year increased coupon the debt The balance $XXX also year bond during million. primarily due quarter ended We our

With when cash cash of the previously securitization our refinancing structure. a the was the release trapped there prior SPV in program,

So end. cash while year the total following cash is balance quarter-over-quarter, available $XX financing, increased from million to the actually $XXX in down improving QX unrestricted at their million

Next slide please.

and market On volume each will key of earning three contributions and discuss slides, products. observations the pricing next trends, for our we

for average in increase first metal costs. The the Turning with period. to metal flat pricing $X,XXX of saw from driven during late with price inventories both some increase in on selling previous pressure. by increased the X.X% chain in was the Slide the value seen while the the upward metal the deterioration over the in all was trend recoveries was along quarter-over-quarter, to top silicon Europe X% $X,XXX The strong of per chart the ton business quarter. the as supported European pricing coupled in demand relatively by gradually We volume X pricing XX,XXX silicon X, approximately tons. quarter that an in Ferroglobe U.S. U.S. primarily silicon which increased from the quarter and metric the our low realized EBITDA shows approximately same index during in tons the metal shipments index previous X.X% silicon Much Slide QX on quarter, per

Our silicon few electricity as cost France, as production consumption adversely of unit by at was winter greater metal impacted locations. in higher specific well energy

value production due driven XXXX into finally, there markets absorption. seeing has been COVID, chemical our aluminum across the production and the sales of had most the that a in for the in profile. And activity And U.S. production steady beginning we're lower industrial into pickup in of trend we in end picture sector. drove improvement. are and curtailments end the our that from costs by anticipated our one-off low our to XXXX comes and increased a throughout the weak with and healthier planned when fixed barriers Additionally, has U.S. Overall energy at COVID-XX logistical carried This European resulting to both a relative time related at domestic [tension] improvement into and indices penalties, a over inputs a of After Asian inventory reduction demand Europe. chain rather commitments some the limited market demand markets. levels the XXXX showing consumption and

lag our moment the the there we from benefit. index Overall in a is beginning As that is favorable at momentum of the a the business. realized when reminder, the year to

XX. trade We metal to to The U.S. imposed ongoing of our Bosnia, will Commerce all February silicon of Department final up Kazakhstan. Iceland and on imports on XXX% case from duties get silicon

March [indiscernible] that XX. to will the whether vote Next, preliminary inputs is scheduled vote Trade on The to Commission these industry. ITC USA are decision affirm International the

Regarding January. duties is scheduled increase the XX. X.XX% on of This rate for to-date Malaysia, is June of the which at has investigation commerce a in preliminary proceeding announcement may end final determination, imposed

slide Next please.

to on X. based Turning silicon alloys Slide

During which higher the $X,XXX average price ton due specialty realized are per Ferroglobe’s products, is alloys the in accounted third decreased U.S. Despite the down based for half silicon marginally fourth metric weighting shipments the by during and the of ferroalloys of to quarter. price the approximately the quarter, quarter metric per X.X% decline above margin of selling to the our from This European indexes. $X,XXX ton, for XXXX.

also in absorption. previously was volumes both and $X France cost cost contribution in during in from the tons volumes million which of quarter. production attributable lower market. based this in from positively segment from of previous global third and realized $X.X about benefited in capacity, the our silicon-based our furnaces factors has QX, primarily benefit sales demand of for is sales recovery improvement the foundry following QX prices, the automotive an to $X.X on from alloys ferrosilicon, sales slowdown of we in to that of EBITDA $XX,XXX the realized Europe than cost these by suffered gradual the improvement Spain, Collectively, third fixed quarter. was quarters start improvement of in negative which business in Sales million approximately quarter, the up of alloys resulted Europe. During in XXXX. This back that were million $XX,XXX the quarter. especially the end the increase XX% across impacted volumes. steel blast to in silicon We steel EBITDA and higher This Furthermore, second improved due realized improved

you in half the see, As benefiting is recovering value of trend ferrosilicon steel steadily as rebounded pricing of Overall rebuild demand. the pricing in the can from XXXX. well pricing Europe as U.S. along graphs, and in inventory second chain, the

Next slide please.

to now alloys. manganese-based Turning

from increased XXXX. ton metric the quarter, up During average by the per $X,XXX quarter in selling X.X% metric of third to per $X,XXX price ton, the

in had ferromanganese the business quarter, X.X% the a During increase realized prices.

an XX% over increase higher. manganese approximately X.X% realized quarter. While the XX,XXX previous fourth Shipments quarter tons of up pricing silicon in was during were the

was As business up. demand is with contribution the the chain million levels of million and products, third million metric manganese [$X.X] value positively versus in negative quarter. was of by inventory impacted $XX.X for at EBITDA results time the $X.X of per other this the million picking quarterly pricing some Volumes and alloy low reflected in also ton positive QX $X.X when respectively. a

$XX.X France. an side, the amount was net for in of the million plants this million. On $XX there alloy our approximately Norway On impact manganese payment in relating adverse attributable to potential earn-out to cost the is quarter

results face fixed adversely the financial and costs. Beatriz to now in call higher over more I plant consumption efficiency would review turn like we to to details. by the Additionally, lower impacted cost

offset Slide a decrease with in increase Beginning This portfolio. in sales QX higher of $X,XXX XX% quarter. million by price were selling million a Marco. of increase across XX% the you, the sales the sales which driven prior was shipments, in during XX, than $XXX than X.X Thank realized average more in our

shipments cost is the During quarter. attributable variable by to costs the the of sales This in the directly quarter, during primarily increased to related XX%. our increase

it France. from end an can $XX of same realized million this by approximately be the dollar million, resulting not the includes project of manganese for The QX, expenses or also the approximately for of in million in Additionally, factors. That other we quarter. getting key so R&D are three XX% assets. operating the liability charge impact $XX mark-to-market $X this was one-time we In explained benefit benefit the increase

$X current had for accrual potential on purchase we COX emissions based the Additionally, million pricing. rights of

Adjusted and $XX.X noted EBITDA loss million up. million results to offset quarter. Superior led but presented to the quarter. and activity freight the is of November should The plants de activity, quarter during volume of balance broader adjustments mainly declined our logistics auditors Dumbria the this FerroAtlántica’s improvement accounting in picked decision the resulting negative from higher is higher remaining On The higher are change. partially external accounting attributable related was that from rates costs, costs results. impact discussion and by QX be transportation prior $XX.X was to which a of higher of Justicia an in of the in also This Tribunal to from the impact has for un-audited. petition operating to hydroelectric the could Cee our XXXX, It sales as industrial million higher metallurgical power been the net compared negative positive dismissed has before third $XX.X Finally, plants. claim million the impact with separate considered XX, the Galicia $X.X at

behind There in decline and [indiscernible] few items when in elements you a in adjusted should at considered our look please. million EBITDA will which be a key I our are nature and stress specifically QX. slide, million QX Next from EBITDA this few $XX.X in normalized thresholds. $X.X to are non-recurring Quarter-over-quarter,

During million to from curtailments also portfolio. than in unplanned attributable to volume to of was $X.X adverse This million Furthermore, penalty costs. incurred the pickup quarter, there will energy we late $X.X due across impact less in an year, a pricing the production also we consume relates from specifically contracted energy and the the Europe. improved France, some benefit in benefit we

off-ticks. hand, on being from quarter, energy energy $X a providers other we energy the On to million of result secure benefit minimum as levels last unable compensation a

dollar potential a tied some a quarter-over-quarter liability to mark-to-market As impact million a approximately [$X.X] The QX per was in significant to million we had hence, relating $X.X manganese positive assets. and earn-out the $XX QX, P&L negative adjustments previous quarter, in variance million. implied of

liability, underlying their we in lastly, the impact we And of quarterly benefit must negative a on tied the the to into of could one Hence, to evaluating performance. some have project bridge fourth assessment a from fluidity an realized this Similarly, benefits for that R&D office liability reduction. create a manganese quarter-to-quarter one-off quarter. the on alloys, $X these the elimination we move Given France. continue and head market this noise. In of factor progress make had when million cost last back

which contributes Slide quarter, million. XX the During $X please.

the The West For production XXXX improved full costs. in from negative factor significant the positive $XX.X resulting adjusted in Cost million most year, million XXXX. improved to impacting EBITDA $XX.X [string] from

The initiatives focused prior First non-discretionary spend. at us obtaining and Furthermore, due core a other lower savings aimed costs. as and extremely million our material activity, without on further and discretionary across from $XX.X of benefit raw running our of XXXX. in to foremost, and in to net been impact the pricing corporate generate higher on we some compromising on our continue we critical inputs. materials raw both to assets, competitive our And all slower pricing quality Significant drive focusing result declines industrial finished products adversely production benefit end at the utilization, year-over-year. we mix for And expenses our overall we goods. gain the a capacity have by was the lastly, most benefits mentioned curtailing slide,

Next slide, please.

compared without available which $XXX the there total is approximately restrictions. decrease is $XXX million can critical the what business. now XX, Cash amount, With market XXXX Turning in our totaled critical made and improvement prior company the our end quarter review be available is to detail, environment to at and working cash any will of a for in balance our cash we is balance where challenging while cash greater cash the capital. improvements I Slide this to accessed the restricted million sheet a total have to

of was the release from account our the unrestricted of $XX During the refinancing special cash $XX once debt XXXX. related away SPV Net lower at consolidated. this $XX longer for payments. debt quarter, In by trapped $XXX is cash -- in accrual semi-annual increased as the same million which cash the by facility securitization Gross by increased third the the over million quarter facility million coupon instructor increase purpose to prior increase primarily to end of fell $XX by over no previously the available end driven the is million the the This cash. million quarter receivable Europe, restricted the period, bond a supporting the financial approximately vehicle is some some refinanced. at accounting

earlier. QX. a materials as the a inventory Total the mentioned improved prior quarter, emphasis end working raw billion and in As portfolio. the decrease $XX.X primarily the across were or by $X.X assets over at XXXX, fourth approximately result of lowering $XX capital of at Ferroglobe’s million of year-end balance finished-goods our million slight

Well, XXXX With was negative figures. begin let me operating provide offset all The please. on the have QX cash flow the a flow million activities $X.X our cash working net $X.X mainly as released the during negative XXXX $X.X bring months first this of Europe. -- during your inflows, the quarter. some cash Cash for yield for million lastly, $XX.X slide flow winter we investing capital inflows which $XX.X cash being we to was negative planned in reported biggest details in EBITDA the Next from by quarterly quarter million. was from was pickup attention the from inventory contributor. of million, the financing million slide, activities activities expenditure had outages, capital And from during

approximately cash refinance replace closing. it in quarter, account a During receivable This at the and facility Europe. our factoring facility $XX.X of year, released prior with we new securitization million

$XX.X free had with cash are considered and summary. the Additionally, in negative borrowings bank In the payments during QX. relating flow cash movements flow being we as million are refinancing of aggregate, cash

million. cash positive and year, full cash was free was positive operations $X.X million flow the $XXX our For from

Next slide, please.

by working is the Slide $XX relative during offset euro of payable. receivable from This strengthening was inventory the million] We in inventory XX. million accounts capital [$X.XX and was reduction by partially reduced by turning to $XX million a increase was by offset accounts of to driven an increase $XX fourth in a in effect quarter. down million and dollar. the impact U.S. positive The Now

year-end prior and Turning compared balance cash I mentioned, the please. in was our the right million million XX on the at $XXX to chart quarter. Slide $XXX to as

semi-annual to the is the the both gross our impacted movement existing the quarter, by adversely debt senior debt Likewise, During the debt net notes. the The net and cost of payments decline in total interest. debt. attributed in accrual under gross increase quarter-over-quarter coupon

In to Next program the slide account securitization The a previously as and This rates different is regard program, improve new please. with than facility eliminates it Europe, close on facility. our a on slightly facility October in prior structure receivable securitization we factoring X. prior the had. advance is SPV helps structured and new we

at As within which able a were million closing the release cash previously we result, SPV of was $XX.X structure. to restricted

are able the further the would soon. to we of like plan. our announcement make we financing call I to Finally, will about a update who to this the proposed turn At hope and discussions on announcement over an to in previous Marco those time, refer continuing be February Levi, X, provide to strategic

you, Beatriz. Thank

critical provide our XX. plan. minutes creation take have stage, turning would all into At the our planning this strategic plan a areas. I of on phase time, value assumptions like we financial preparation to phase across bottom-up formally to to this during Now in slide analysis At an from execution strategic conducted the transitioned phase update few preparation validating and was the targets. the we The and

also to is turnaround and of what centers effort a in them address are of organization only deeper more business, plan our change We're in improvements organization. to also our for As to make internal the engagement execution deeper areas. how drive to such understanding undertaking we the and full the with as sound we going achieve the workforce training we're that the the empowering detrimental into we're throughout to their the gaps impacts communication. of The phase, that. aiming ensure Not required involving respective it organization. company Equally, workforce into get as

Rana the Now, adjustments our that the I optimization, is have goal restart footprint on where across Today, action quickly to Niagara our decision this and so specifically our areas. capacity. world creation been uncompetitive across doing Rana of of cost taken to can various smaller update capacity second excess eliminating value optionality we I so particularly has we completed furnace. our installed consider will and by furnaces. the two make while facility in in By On facility facility Mo preserving the effectively the we restructuring I we to in Norway, is either near-term, Mo are States. the the fixed to the one United a structure, correct to have the the costs,

since Niagara Our idled of facility been has end the XXXX.

installed and shedding for capacity on the Several on with are plans, focus property this competitive what site. decided broader our currently have permanently we we focusing the Given options close review. to most do under

area have further begin updates technical other For our to we continuous creation efficiency we an metrics take. is will XXXX, And of value program. The key as provide some execution extension areas. we plant actions in

As we improvement of part reduction plan, focusing specific in general the and energy efficiency backlog strategic on long consumption. a initiatives have materials, raw of

to competitive. and KTM the the past remain planning we preparation a way leading centered project excellence in and we combination the France. have at up and on-site different create This successful these two training Some ahead facilities we on and seeks done engagement at our program have facility a globally a to aimed the pilot operational Most is recently, week and pilot Furthermore, makes process implemented of What culture having year. initiatives the the first test ways rollout. was workforce to [indiscernible] launched be our move to global completed learn [indiscernible]. this of employee will constantly a that from a forward in to

At essentially between and of it realizing world. centralized a an efficiencies. are been rolled-out where level their different the head to a reduction and and this is there making work While a and we is to set areas efforts increased of infrastructure in our being [indiscernible].We resources historical all plan extension we of plants we targets has and most new structure. one fully track disrupted the this creating, the from reduction and group, Today, teams point, involves that and taking the collaboration this beyond spending of discretionary specific quite new measures up the of workers facilities cost internal our of time. under of plan. corporate area and particularly It Improvement benefits noticeable the aiming since The in are efficiency, our and and with ensure specific direct around overhead running, setting procurement this In is operating is offices. progress. way initiatives different procurement aim have good over in and training cost success centralized the up in organization working strategic decision our the is SG&A have recognized people creep approach this very savings at in driving to processes cost engagement is time plant participation of

the we our priorities the vast key expenses to offset consumables, of systematic those of for approach and focus to and capture to materials, across as logistics, Given savings methodical year. in areas current raw cost we be identify the have opportunities and incur,

on organized this the initiatives commercial expand will organization going our following the be number in the systematic new tenders one portfolio experiencing we business working will and we And time. capabilities while analytics across of significant This developing to movements. our positive being of this production growing of done alignment effort. in to potentially and maximizing customers are area our logistics. environment capitalize improving achieving value to side In the excellence market the drive will confident market initiative. finally, improving of existing potential by this seeing maximizing are through new of demand, data key the and with strategic are now, the that our process that leveraging market processes some results more moment, first to we on the launched like a commercial and aiming this on between revamping bolstering roll-over We our At to is commercial seek potential. already of a in processes we support organization are freight feel critical the round forward, our We planning and and intelligence

capital distinct receivable, separate Beyond the a three EBITDA to To-date, themes we working drivers, [capture inventory work improvement. and stream focusing account created on payable. dedicated we accounts have through management, have leads]

As we journey last midst benefit through of challenging this against inventory pandemic We backdrop. the Beatriz I all on embarked the highlighted, in our are Overall, seeing the the side. of some a and proud very on effort am organization levels. coming the of year, global and

in intuition good While year have it momentum early very the realized these have difficult we and launching initiative we in fees is that’s some very tasks ahead.

questions. we year. At the I to are for the will quarters. please We open are advance strategically for on execute over updated new the excited line this operationally, look this forward I journey to financially. And keeping for to coming certainly operator to proud company this and stakeholders on XXXX our achievements of the time, ask the our target

[Operator line ask Thank Nick Please Stifel. of first comes today of from Jarmoszuk question. And Instructions] question you. your your

questions. Thanks the good Hi, taking morning. for

is one recent is and with pricing First metal that think statement? we silicon strengthen the price income the flow ferrosilicon. when going about to can improve through that in How

speaking. Levi on part The price quarter also agreements there large that Marco when where is question, lag which business you the yearly for pricing. our consider is a we through -- fixed of you have metal, Thank are indexed, silicone

effect our rise So of index the doesn't price all silicone net cover an sales.

three Our is alloys between business is still months. two far And more the lag indexed.

Okay.

what's metal, and With the between the mix annual the silicon contract? index the

not then is for price but all contract, the annual fixed XX% XX% year. approximately Well, the is

can very different still where your flat year, in how it up about then of ago. talk year-over-year this on basis environment a environment was it your obviously was And you the contracting -- was is the year time down or pricing Yes. a that was

So if you is? environment how talk that just about can

a in of but with a year, Yes, we, third start from seen I the demand year quite know, second as Silicon lot this you about at price a and -- started company me as well, Maybe low short quarter then I to And reference. have on silicon pricing. due level. and tenure year let index volatility extremely of the a have have last I one gone lack levels. to down has of good price

€X,XXX seen to has the have you went per impacted didn't started the course, because a of prices and down the metric recover only -- even and the recovery in €X,XXX the then just -- price below for negotiations of level all from ton We this And within the Year, in to indexes €X,XXX QX. in Europe for recovery clarify. New QX least in market give at

the point that were nature committed business or XXXX lower allocate volumes contracts negotiate been has prices either for equal a to by So metallurgical or more is than which lower silicon, at XXXX volumes, spot with business.

trying the commit So the been, possible price the not for full eventually negotiate for have to year best to and the dynamics volume.

then for emissions so question that amount you COX of what you're And XXXX have covered going have credits And Okay. XXXX? dollar to COX projected you do on for of credits, your covered? to European you what your on portion the emissions are expand, COX

Beatriz for question. Yes, thank speaking. you, is Nick, This the

the wise, to new as was allocation If part the what planning as today. to is as the driving COX we to of need at to need that moment, trying are amount much this purchases this to a certain we the new we this of question, with that As COX of that -- planning today, do we already we allocations sheet. balance what Time a of And try can your we put in offset need challenging our have but answered are rise for. a looks accomplish. we to is we're what

And much are of going done? all to for? credits your to you have then get production so do how emissions, XXXX So have spend European you much how you can the that

value. Yes, of end mentioned, disclose in allocation by April, a again, June can the issue new of maybe that I need have in our And by XXXX. right. something -- that's already so going is percentage to getting in part basis, the as COX because we're the dollar to sheet the not If we April I balance [dem] timing about the [indiscernible] we in be

today, I less our part as we balance that additional it of can we more already sheet. or But need that [indiscernible] amount. true it's have to found say So of in an

I the that terms second What for? at of end percentage believe the beginning quarter that your you of that account $XX -- of about the monetized, million is How emissions in the third. to XXXX of

two -- the put me it's let this. Well, but processes, it like relation said two they between

one in on part were related XXXX, in that going allocated ones it be realization was right. the would brands. that of to the we on So future the sell XXXX it right, our consumptions The XXXX, based the in be of -- we was allocation future

XXXX, this can question. answering we to you say XXXX, So think don't I connect if your to I'm

accounted for there's disclosure Okay, $X you a of that a COX but accrual million.

So the they're accrual the million is fact that expensive $X for more now.

However, you're in more $X you have, amounts. spending some million be would to than to additional going addition

value that that is is should million $XX Is it? be now So year you we now, spending, last you if think COX of about credit the how million? $XX could sold

to your Well, on the XX see -- answer COX to look way is to you best the evolution question the months. I prices last to need of the think

I to increasing that been prices been would it's -- has up say even So and from up to going the has €XX true €XX.

But it has investors a prices months the in happened are of we per volatile what this has that's is into appetite why there €XX market market. today, lot and of the this been As a increased. last And at been EUA, two right. of

had that been softening looks it Now, back.

we the a in price levels. So lower are

our So evolution of the the we the are monitoring ones repurchase market. watching carefully to remaining strategy and planning

depends credits allowed to new footprint amount we and of our location XXXX. the this on am to the also I year for add, repurchase operating that need If

So two right? moving these are parts,

question the be? exiting that are the cash then And you're any sense facility, liabilities remediation Yes. are going on asset there given any exit costs environmental what to and are the when closures then triggered Niagara the

of nothing completely Yes, at million Niagara, we facility. do dollars the more. But a shutdown estimates couple we case this in expect not do have -- to we we to the had stage not -- shutdown of already

that some considering. have options alternative We are we

passes then the metal you about And costs. early if ferrosilicon seeing inflationary question the talk and pressures Are side? you where? Okay. final manganese, across cost And a production on silicon any

little moving year. slightly manganese and the between Well, raw we move Quarter market my some up top for two last main moving QX versus -- up a wise of year. of up -- or QX materials mind. can of bit the Coal sure X see Beatriz. is last the moved is has up at are These ones the

agree nothing with to I Yes, add.

you. Okay. That’s I all Thank had.

you. Thank

you. Thank

you. Thank

Baird. today De your [Brian from Rubio] question. ask Please Your of of comes line next question

is Brian. now line open Your

you spend Good afternoon. starting much with expenditures, how just to XXXX? in do Maybe capital intend

level year in I In well -- our we to don't of up to increasing been expands go above business XXXX. be our morning. spending good compare figures, I the this can would million have year going with in XXXX, Hi, But our we're say $XX XXXX, XXXX. be tell CapEx expenditures above In you CapEx we in going that but provide this CapEx will -- we're and XXXX going XXXX. as In in

$XX Beatriz. you is of maintenance on trying how what magnitude spend gauge just way, under to the capital your did level that, would expenditures thank just Maybe do million Okay, I'm another or be? much

Now, number related to $XX to allows or way. number growth in for and footprint improvement. nothing $XX million, CapEx process is safe of around operate the to a that spent row, years CapEx this two us we this the almost there asset have nothing our -- a in In current million is

I CapEx specific KTM to speech, initiative technologies some that implement need the mentioned the to related during assets. to we new my will spend While

but on what And on on headwinds I'm logistics? shipping, hearing [gems] Then freight? inflation sense us helpful. some a with just not actually seeing That's cost you're even large of or shipping you can there's inflation, give availability?

raw in cost we due Well, ancillary we you This some have we need that Asia. limited yes, from see Yes. for that as materials we the business mainly to buy some main is Asia. And know, foundry buy inflationary our see. inflation business that to we

purchase, So at this massive something be magnesium not smooth really refer and significant. is this we but to to I -- this stage really or

benefits with should group Okay. created, start year? then And real we that centralized those when -- procurement the the from this seeing you

because we Yes. are for working the agreements so or QX most impact on supply focus the for year year. going on for of last services capturing purchase certain But negotiated some example, -- I first to this plants. were lower the the have is be values of centralized we as in QX, we Yes, on -- in purchase but organization, now of spare the parts it

would year, significant benefits expect I in start seeing XXXX. this impact we but So

think or in the just for a are up you prices about, lag, maybe more a me, think a that when will that final start rebound start meaningful volumes we on be the indexes said little occurring in as of ? then first and should going is moving -- I quarter there's Okay, and to bit seeing we

have in Quarter seen X, right. already rebounding volume You

If level. you not were the for major at close substantially or in look we higher in same than value we the have three all kept at QX, same and the centers destocking pretty out level the been part volumes volumes QX our commercial the the price have to

point in X. QX. operation trend is are The Quarter that we running poked our expectations, And at in the been confirmed is So this have certain surprise and by rate. a we

So went but went and up inventory has down substantially. our the demand

keeps inventories. now demand, we we started being low because extremely on So low demand And the started inventories. to up the robust, with we year with keep that struggled

helpful. much. you so That's Thank

Thank you.

Thank you.

There Please you. further no Thank time. questions continue. at this

Yes.

and other call. concludes our are quarter no year So questions, that full XXXX there earnings Martin if fourth

at and significant of We around developments year gaps what to progress pandemic. returning call, forward again have the critical a the trends next to day. to but monitor. despite we results This the your positive Thanks a meaningful As back participation. great some and the in of return we the you I see market to beginning set not of past out for positive look to Have beginning achieve from impact made a to unforeseen us to EBITDA number hearing and We profitability. on company address turn call. mentioned, this