Ferroglobe (GSM) 3 Mar 222021 Q4 Earnings call transcript

Good morning, everyone, and thank you for joining Ferroglobe’s Fourth Quarter and Full Year 2021 Conference Call.

Joining us today are Marco Levi, our Chief Executive Officer; Beatriz García-Cos, our Chief Financial Officer; and Benoist Ollivier, our Chief Operating Officer and Deputy CEO.

Before we get started with some prepared remarks, I’m going to read 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. to cause can to most page, be filings the could those materially recent www.ferroglobe.com. that are and statements which forward-looking found exhibits factors actual our differ results from SEC available Risk on filings, web those in Ferroglobe’s

debt, our per of In gross in share, be recent all measures. today Reconciliations which non-IFRS EBITDA, discussion earnings measures found adjusted the references to are debt, addition, adjusted SEC filings. – these may EBITDA, most includes adjusted net diluted earnings non-IFRS

slide, the please. fourth full On first Next today’s call, business quarter will we year. review the highlights for and

to to an will and like on and performance And drivers our you provide before time, We of the our line a results. environment behind on key At update our turn for you we’re to the I status the operating Then Levi, give update also opening finally, an plan. this our a financial perspective update then Q&A. over transformation our some on CEO. provide we’ll Marco up would trading provide going call

Moreover, in the declining our in coupled across result fundamentals tightness demand, pricing supply increase you, XXXX. present performance strong all Thank the and which by is year quarterly morning, and primarily the been unprecedented have silicon the in a fuel everyone. QX supported good which marketplace which three that an Ferroglobe. off anticipating for demonstrate as categories, to ferrosilicon. the potential products, in we our acceleration from earnings results, for our Overall, in further in product excited flat performance really and Gaurav, with I robust am important in afternoon, index caps resulting will good to and an acceleration

a from of to metal partial nature During and run-up only fixed prices, particularly we silicon the most these the full this contracts. due in in benefit the price realized quarter year, of

revenues. have will the XXXX, contracts increase support is resulting In silicon-based much index-based quicker at benefit we increased contracts driving given with our contracts, the steel of is top and we the in end the in expiring with portfolio, lags. higher from margins exposure alloys industry, However, levels an of And holding pricing of alloys, recovering spread towards very production. in the at nature to healthy pre-COVID which manganese the still and levels shorter realized these

While backdrop, exciting marked This year plan. turnaround the XXXX we areas control. focused of our of first provides which the of broader execution an to value the identified related the are market, in primarily on the remain part areas our creation our market is as plan. phase

balance surpassed maturities. XXXX. our turbulent plan. We In time of and have by turnaround Ferroglobe, de-risked and marked refinanced with an several our deal capital year fund navigate We We debt in a to continuing and have momentum successfully raised important great for accomplishments. XXXX aggregate, our our critical extending to targets sheet a

processes In we reductions. started business, the cost in addressing and improved addition, drove gaps

goal All more stronger through making results cycle. company this with with competitive done the the was of of the

of XX% XXX% quarterly to were high shipments in resulted categories. over Despite driven with positive on and $XX.X to cost-cutting inflationary of optimize prices core by sales And had raw growth in which of to efforts. materials, three. level; quarter which at selling XX% continued from our quarter, during continued free product top-line relative growth, EBITDA of in million. average the we the our margins million, and During $XXX Spain higher operational categories. impact is product XX% a This to across realized also asset flow increase a adjusted tons performance coupled furnace highest quarter, our generating energy Furthermore, million, we utilization increased a economics; This stronger reallocation core orders in three And record-setting cash $XX returned improved X.X% top-line base; the finally, since we combination of four. quarter to EBITDA in XXXX. is our QX our our improved XX.X% was XXX,XXX costs to just

full year, adjusted For our were just the billion. sales million. $XXX $X.X under of EBITDA We’ve

had contracts of show While benefit a beginning considerable and nonrecurring to at improvement adverse full reflecting expenses, one-off the continued the flow. furthermore, which cash a year, on year see XXXX the of over pricing. financials the And acceleration, of prior significant we year, expect a reset we number had impact our our higher have

our on at momentum the we look step, strengthen to improve to core service best by Step value we is by us, trends ES&G. product QX. forward particularly continue competitiveness short-term The the the emerging backdrop to exciting the platform our and influenced focus and behind factors and against of customers. from on these chains our unique as such portfolio customer company building supply With the of behaviors overall

further book, drive is to and in improvements a business. that an margins plan the order are Ferroglobe we approach strong operate a that is with confident positioned XXXX. accelerated to XXXX drive and improved entering turnaround and are efficiency to integrated Overall, well cost We expected growth

to X, please. Slide ahead Moving

price over strength, year during in for the of curtailments quarter. served close coupled representing A peaked in expectations capacity quarter, the index months of ended chemicals, XXX%, ending the pricing to And ton. just significant U.S. a quarter final year with at above €X,XXX, a increasing with particularly exhibited continued the During United year, per increases of and in €X,XXX China for and reference price catalyst States in the meaningful market by metal combination silicon the end intra intention. XX% the Europe, the as Europe in $XX,XXX prices approximately increase

material which factors as production increasing energy environmental higher silicon. such financial and reforms, for labor Beyond the and are logistical costs cutbacks, and raw are costs, higher issues into there other feeding Chinese costs,

ton. price As for increased position selling effect increases, to metric average silicon European a by will indexes. – the floor Ferroglobe’s effect it a on within metal XX% China realized price have $X,XXX per U.S. and positive

quarter cost that end XX,XXX joint limited XXXX. to furnace of some a such Spain issues throughout XX% was to November, were improved the sell constrained stopping average volumes improved high the facility market the well has on greater business. Overall from loss prices Sabon by the the in production Increases approximately at our silicon Spain impact one shipments negative the facility, prices temporary energy of realized alone, our during idling $X.X weeks Ohio collapsed metal ability as crane business EBITDA the had at and XX,XXX the sold volumes negative temporary the XXX% At improvement. million. quarter. where the upside furnaces production In rising at venture, fixed costs. a Excluding The during The net the was $X.X Shipments annual which there quarter-over-quarter our announced as we $XX.X by tons. operational To over as in increased of energy X% the the further total $X.X approximately million tons. impact the million. due silicon to quarter. of to curtailments price few costs Beverly, during reiterate was towards million weighting to address volumes an in greatest two to for impact capacity impact adverse contracts

reference. both cost for and details additional negative press around and presentation our in positive release drivers, the provided have everyone’s We slides

demand continues caution lingering the such result some furnaces to which semiconductor of of of signs sector operating We in have Europe. increasing have aluminum restarted recently due is end in a our in in to XXXX, in one lot be there been rather impacted an restarted the We by two impacts auto Selma through reverse about. be chips, Alabama can attractive will end increasing and temporary quickly. Furthermore, stronger idle Spain, the second energy healthy in And strong prices of XXXX. to the excited shortage ahead at silicon With markets – end in the finally, capacity to level There in demand. alloys. a growth. costs business pricing we as during applications the which of the as of market for Looking turn may half of facility and be containing a market recovery to at goods support, see solar the remaining the consumer as remain sector, continue market signs year. see we chemical medical which offers for side aluminum continue believe the drive strong This

the the the The remaining Specifically on in energy fixed approximately with the our forecasted Western generation subject is At at index-based committed approximately contracted. world. of XX% to the have volumes Of this of been renewed pricing. volume is XX% XX% pricing. moment, focus non-JV business portion, of

there remaining And on contracted of volumes, approximately we pricing XX% all has is where commitments, the volumes. Beyond volumes have our the overall finally, XX% spot not is been business. set but these the

freely in to flexibility favorable company. formula. will cost-plus Overall, enter a using priced a half into negotiated of and is the their the of the used future. have our the which are protection and have multiyear volumes Also venture be customers joint part for our soon important part needs discussions entered reminder, material noting to deliveries key a XXXX. that we for the of As seems And the QX we worth provides book. for better development Overall, first into company procured we’ve this contracts, very for

the Europe by Turning in In recovery ferrosilicon States, low in tight a price continued ferrosilicon and North pricing remained QX increased levels on driven run contained The United XX%. silicon approximately index approximately for had alloys the the to production chain. Europe market index while silicon-based value strong increased America as Slide in X. inventory XX%, XX% the price and of very throughout steel

weighting being This silicon-based lag. a During specialty calcium ferrosilicon per products our the basis, portion of with by consists higher-margin attributable of our well is of silicon, increased reset as even of partially selling average On which increase $X,XXX foundry was to realized contracts XX% by a the relative quarter, alloys for portfolio, ton. our grades the price one ferrosilicon, as higher. month and

by XX,XXX also foundry steady automotive We the sales slightly across sales back on from silicon-based volumes in X,XXX volumes global of tons market. During the quarter. at metric prior the the Furthermore, X%. were than our Sales in increased tons Europe. improved about and higher the gradual customers of saw recovery demand QX, U.S. alloys quarter, our end

Our quarter prices, to a and silicon-based by EBITDA the positively in alloys extent, during lesser a impacted business saw jump volumes. significant

accompanying silicon. from underlining ferrosilicon, slides. our silicon-based to XX% the to we and in calcium can When is and perspective discuss approximately details negative volumes for XX% alloys XXXX, X% Some found impact of ascribed the release million foundry expected net of be to $X.X

For subject ferrosilicon, index contracted. volumes XXXX these fixed XX% approximately to for are of of prices. expected XX% prices Approximately volumes at XX% our are remaining with now

the through committed XX% feel the On remaining and the Once and again, sales. spot volumes, first to visibility good of the total subject have, half approximately the about has volumes is expected pricing we with currently been XX% we year.

slide, Next please.

Turning manganese-based alloys. now to

the an increase the had quarter – XX%, in basis the Of The while increased tons higher. XX% still quarter prices, selling of X% ton During realized price a previous XX,XXX by the up split over from approximately on silicon $X,XXX a XXXX. ferromanganese pricing metric realized ferromanganese up quarter, was business manganese. third the the average even blended Shipments per $X,XXX to fourth increase quarter. which manganese an silicon sold, X% was tons in realized were ton there between during and XX,XXX per

As in QX demand summer some delayed this of steel building for alloys up you pick was the recall, anticipation as months. company manganese during the shipments producers inventory in

high those the the Norway versus quarterly $XX.X from France. million EBITDA million we results to quarter, alloys reallocated $XX.X positively curtailed third in contribution to and impacted capacity and $XX.X Volumes pricing the facilities our costs by in the in positive $X.X million temporarily respectively. During was segment and million energy due sales The quarter. and QX manganese-based some our in Spain

from cost side, continues for million. quarter of continue Approximately portfolio into there expect the spreads, volumes Overall, $XX adverse are this XX% contracted. On net benefit and the an we XXXX. XXXX half favorable the the of of our first manganese impact was to expected

navigate we process as company. The driver company our the a to the turnaround turnaround was the It plan to confidence generate ability in savings, in in financial Next stretch, derisk designed has the which are it critical success cornerstone XXXX. that a of the gave the slide, and was sized cost underwent this our Furthermore, the us stakeholders’ cycle. refinancing means to through XXXX plan various gave been difficult to targets to the please.

the of will $XX million pipeline EBITDA, of working $XX [ph] Our first excellence a million benefit XXXX million the and the improvement, cost and target cost $XX we contribution capital the for year capturing look of from and execution from build significantly initiatives. go-forward capital of this savings target. with million commercial to momentum working continue to commercial benefits. and plan excellence was of ended We our new a on savings On feed linear $XX outperforming basis, and

Our XXXX. goal is reaching to $XXX drive change of I’m these million by of all proud a the really have end at targets. rate to run in levels organization our of

first We optimizing year to turn Financial results a review down to the certainly García-Cos, to motivates Beatriz ground There and our from in but lot of keep up the of done, be knocking aim walls work results more now platform. business to Chief to detail. would is Officer to call I us the are rebuilding over the going. to like left maximizing the our the financial

XXXX improvement top-line the million in prior the increase XX. QX both the $XXX of ended $X.X of billion, up result the million realized income reviewing $XXX Thank portfolio. Sales our quarter. XX% the year. were Marco. the our than We higher you, prior over in average approximately an by in will sales approximately of XX% during with price I statement sales across shipments of was begin and Slide on The

corporate prior facility headwinds quarter, percentage higher and cost-cutting a from in of combination costs, materials, down of inflationary sales Spain raw the of XX% our in the of a impact particularly our was at as and our sales growth The the were During energy by lingering top-line offset efforts and XX% levels. cost quarter.

approximately then to credits. a the percentage of attributable sales $X of Operating approximately to of of Staff QX. to plan. had adjustment as our in million accrual figure is mark-to-market a a restructuring our in XX%. related we in costs a cost value offsetting million sales XX% was by QX. and line and million bonus by Operating There The the adjustment reflects For expense of the fair – as ongoing up QX the the of during long-term have the from asset keep million, partial XX% the well increased the COX XXX% the increased related income in $X mind of the $XX.X $XX.X quarter. we in release accrual. COX QX QX, decrease realized operating bank-to-market adjustment in year, Please of that The is full profit in Europe. in increase an accrual to incentive

million operating operating compared $XX.X during you more positive quarter-over-quarter, compare our an The higher it fourth normalized million to loss the net refinancing, XXXX, million profit of levels. that year compared full to XXXX. which profit million full net the the QX of was the the The $XXX.X quarter, expense in During effect accounting of QX reverting a keep was number. a yield mind the year $XX.X $XX.X to loss QX. net in significantly When $XX.X in had financial was back million during expense

loss XXXX. of For a net the we which million, of million loss $XXX a to year, compares net full $XXX had in

adjusted EBITDA Quarter-over-quarter, to with a of to the significant doubling margin million please. had our $XX.X slide, XXX% in XX%. increase adjusted EBITDA we nearly Next

we As Marco which positive combined pricing, had contributed shipments $XX.X and contributions from million. discussed earlier, both a realized

pension was and corporate an the adverse is staff positive in a $X.X manganese impact, alloys impact has offices offset of Staff million the million increased $X on slide, prior impact On America by over in was side, positive of of contribution in metal energy costs of The cost accrual Africa. adverse by approximately impact sorry. million. an with materials in – which raw increase is at in Spain silicon-based the a million, The from energy COX $XX.X $XX.X had impact alloys. to while annual partially silicon our partially accounting had $X.X our North $XX impact of of million million attributable from impact South by and described in QX this offset France million. plans cost an General an improvements $X.X the having alone increase

of Additionally, a million for there approximately bid-related costs. accrual $X is

Slide please, slide, Next XX.

significant million impacts million price evenly is that of full energy of XX.X% Costs were site swing adjusted The average $XXX.X Spain. products. EBITDA million in increase in factor higher was price most across year, this from the impacted For XXXX. core to million, which in selling improved $XX.X $XXX.X $XX.X by to XXXX a

cost higher out resulting material, Additionally, of and million, $XX.X million cost prices fixed of material which cost adverse material and $XX.X increased raw a higher in an had $XX.X byproducts to of production in impact of by logistics, and higher million. expect impact due

We are site million to million both audit and $X $X accrual bonus is nondiscretionary Approximately our and the extremely focused focusing corporate costs. incremental on of spend. on to discretionary related expenses,

XXXX, accruals year-over-year this impact nonrecurring items, including and of number EBITDA the provisions. adjusted by several we a of million. had the During release $XX Collectively,

slide, Next please.

detail. will million to as on by XXXX. of Slide now balance our sheet to review Total in million increased $XX XX. I Turning cash greater approximately December XX, $XXX

cash increased balance higher year-end $X.X assets from approximately million Our was up gross XXXX, debt figures Total balance our while were quarter. mainly are the than was $XXX to Adjusted net loan recently include prior of announced marginally year-end at that SEPI quarterly the quarter million. because debt million Please balance profit. year a balance our million approximately which with in $XX billion approximately prior million unrestricted year-end these not in do the $XXX and Spain. decreased $XXX $XXX note of

our to top-line ratios the increase to Ferroglobe’s fourth increase during focused cash account line generation improve, $XX begins the in with an While accelerate. in capital continue million This deleveraging on growth. are quarter. as attributable sheet our we the from leverage relative working receivables primarily business to is balance approximately by

Next slide, please.

let your attention to the quarterly details on provided XXXX While figures. QX this we me on bring XXXX slide, for first have the

million. territory returned activities flow from $XX.X Our operating contributing positive to cash

And positive in flow from cash an was for $X.X a $X.X factoring the negative quarter activities financing for activity quarter, increase in receivable enabled to in which in us So is invoices flow planned the was million, million despite from cash Europe. overall capital. in Cash facility was working the expense. sell to The investing the into $XX.X increase quarter. accounts more attributable increase flow million. CapEx activities Free lastly,

activities investing capital our million. XXXX, investment to $XXX of And activities year $XX.X for year was negative Despite XXXX, our financing year. $XX operations cash cash was full comprehensive financing plans. impact relates from from primarily associated the million on flow million. cash $X.X the to the of the $XX.X negative For due debt to from for reflect in in capital was cash flow working and million interest the flow the fees financings. negative million, in finally, with Free The expenditures and equity the completed cost incurred cash the

On part that of per carries the additional payable year result year, XX, million June taxes announced The spread for annum. positive. supporting important the X% QX. third this of companies assistance and back fund the in €XX.XX of and loan the as funded intended second sectors Interest a slide. X.X% around a a using beneficiary Plus XXXX. time, strategy be plus funded are IBOR has to year. of if X.X% is of turn These the to call X% in dual the financial before in no million in end within million the fourth and SEPI Spain €XX.X an a of fixed wake February At are Next Spanish loan. first Marco. in tranche the I’ll calculated remaining is €XX.XX loans we matures the €XX.X the X% the interest loans operating expected on to pandemic. companies the provide €XX.X are million rate and to fund February XXXX approved the structure strategically in of matures in

the you, Referring Giving does doing and metal to there it unique to have environment comment the we are to our number nor financials. and silicon future? XX. unprecedented to implication on regularly In a on of Thank onetime take this some dynamics on flash or contract, on circumstances, the so been clarity particularly we around the Slide guidance, Beatriz. encountering annual this plan want few now provide pricing not our trading currently opportunity given update for reset the provide the Ferroglobe provide in quarterly does questions January. order

at January of estimated million is EBITDA the month approximately adjusted unaudited XXXX. Our $XX for

the in During QX, impacts January, in the largely product top-line QX. portfolio index-based pricing the to robust across contracts environment all benefit is our which attributable

to As pricing. quarterly average a contracts reminder, our basis quarter’s index-based metal are reset on silicon the tied a prior are and index

the line of annual For ferrosilicon are ferrosilicon, contracts our index-based. share

we on with month impact quarterly our finally, January the portfolio, While And margin for continue some And quarterly challenged lag. plus industry. lag a the of we selected evolve Overall, basis. relative top-line, expansion inflationary of most be cost and energy basis, a a to market our repriced of majority inherent of will are these recalculated in our business Hence, inputs. during we the manganese on gets month on alloys by on costs side, the had levels. higher QX to the

from energy we January, continue to face pressures beyond and inflation. Looking

Additionally, of for region closely business new regulatory to monitored conflict to already The developments over business week driving in impact in the risks This has as silicon, events. prices and the ferroalloys being inherently manganese and and implication an continued industry. have energy The broader are higher. are has alloys oil heartbreaking immediate exposure to our tied Ukraine Russia, important had and past geopolitical, very important in us Spain. the Ukraine we CIS the the natural global exposes our nature and

to adverse the were managing pressure. tracks can The and electrodes. will Ukraine which Beyond near also Russia additional And the turn disclosures Ukraine energy, obligations, are filings our annual material on the reports I on of our such and nation the headwinds our to will and and for the expect business the Russian market. Hence, the and on will depend metcoke, inherent to that development to our open can by business, inputs operations conflict materials line factors all the an Management the other operations. Form magnesium other to operator inability Ukraine committed difficulty questions. Commission. tightness term, to their procure not and against a consider with U.S. no already impact is response impact lead have deliveries. call comply assurance we Ukraine and financial of continue posed from certain chains, in on content monitoring the implications producers can and lastly, have over the actively our continue should by to potential With the XX-F market. the risk with In region global on in update, to international as in [indiscernible] entities results. export impact link continually distributions direct this the specific some Broadly, Ferroglobe under sanctions investors conflict Russia we we abroad. source there are is in we a that products to obstacles supply to to and and other provide should ability meet anthracite, conflict and to producers the Russia ongoing in are the or monitoring on Exchange Securities be relating but

Thank Seaport from Research. from of line the your you. question. Martin The comes question ask Instructions] Englert first Please [Operator

afternoon Hi, good everyone.

Martin. Hi,

conflict? and longer-term France other well, maybe And update potential Spain as to prospects Norway. a costs those move broader across provide some just Europe, Or an a of electricity the countries that On regarding agreement? and the feel do ongoing you you the maybe across update have diminished PPA given can

we’ll start qualitative Yes, first. some providing comments

of energy Looking has at been Spain, volatile. the extremely cost

evolution megawatt readjusted to €XXX per of the If bumped ballpark. due at the the price you of €XXX unfortunate megawatts. Then moved recent the last €XX €XX, up in megawatt market look of and in per you the year, from half if second the events, touching a down, it per level north

small extremely are market, of There plan. we second live available how opportunities. small. to at looking on been PPAs, need has keep on they operate for active our addressing in and terms opportunities an – the Concerning XXXX we to have issue half, the been definitely we volatile but market, are in this In

opportunities broader there While are on. for XXXX

the situation. much pretty is this So

Looking we the at energy the operate Africa. where in like covered all all United by we contract on South France, major – countries, for and other States geographies are other

is in sorry. which stressed this So France the have in I Spain, situation my why – –

Thank Okay. for that you detail there.

alloys fourth what had least account in manganese, the Looking business XXXX, there how taking we segments some quarter into across here? there. across capacity at I your silicon metals, But augmented were modeled positive and silicon think volumes, volumes regional surprises should in the versus about

Yes.

going silicon-related. various XXXX, in looking Overall, centers. four, rather should incident at the in that make Selma, across I the Spain, that the all, value think which be for in is than exception of more four been to quarter produce reliable adjustments assets The that you the volume we’re would to in projections to quarter are – the excluding well, they capacity and flat want only comment I is first related in our have the volumes Beverley additional

orders quarter been might noticed observation quarter heavily quarter the alloys from have in of I been Another said, you – four. more that XX,XXX be that manganese three four. to of stream shifted But tons has useful volumes versus by – history like than impacted, this

– consider tons of can volumes you So alloys sorry, manganese the per quantities around quarterly of manganese XX,XXX quarter. alloys

quarter Thank the XXXX? per forward you basis capacity something capacity augmented of takes move for some we through in here a XX,XXX, on net-net. as XX,XXX then that. And with the that maybe and like Selma more looks and on but Spain, in puts like specifically, Does is metal ramping silicon

correct. You are

on the right spot. You’re

you Got if it. could. Thank one, Okay. other that. One I for

there about that and prices? more the detail implications takes in some can on know is covering supply, bit I you risks this Given the of any Thank situation Ukraine, more in some of remarks prepared Russia, the helpful. the but the details can in you. talk puts release, provide upstream little the a alloy potential and you input the covered and you

Well, talking of everybody gas Europe. critical about absolutely the knows plays first all, an of in role Yes. supply to inputs, the that Russia

Russia electrodes, materials, some the for immediate are you magnesium raw to and the – materials of a products market raw this industry to this well, some for the about – is reaction and metcoke So critical of as war. so product. anthracite, seeing big supplier Talking other

key uncertainty And the around we carbon have most actions. plants mitigation based supply States from so our of one, identified on Since – day run is United imported to raw our these electrodes some In the materials particular, Russia. mitigation But in initiatives. of we the have there industry. are

we electrodes produced integrated are China. in know, you As back with

the China specific increasing of in are we electrodes So, mitigate – this of to our production issue electrodes.

France the Maurice address particularly on the to ordered and advance in materials Another electrodes, trying short-term by – the to of we making on we plant which the time is and some solutions arriving all electrodes that of in possible Maurice. have the are in the in purchasing get and electrodes creative plant and impacted issue

the raw due raw to the place been I one plans at place situation day all to the before, and in mentioned materials putting materials the have in some mitigation For to have buy in in plan stock. look alternative also since we supply cash advance we put company, that before, and build have of improved

when guess XX%, tightness, there with consumables U.S. around Russia dominant but Manganese there. right? puts alloys across is Ukraine, into these and also further of Thanks risks regional Can I ferrosilicon materials think some you and downstream detail. two traded for I ferrosilicon of you I it’s market of And Ukraine, for the with in alloys and/or the input think segments, the regions may I XX%. weigh pretty key the selling takes manganese producers some around and talk some the of the of exporter the capability. guess, in your be the of a prices the at over they’re region there. the maybe some Russia, in looking ferrosilicon, about regional alloys XX%

depending is particularly growth. absolutely produce is is banking of like supply Ukraine, there uncertainty of what’s also products, of of and happen on supply, overall system. Russia, definition, but raw these materials with they you’re out of the clearly, Absolutely, By out you of on on Yes. production to going overall Well, major the there a right. in Russia center uncertainty manganese producer And ferrosilicon ferrosilicon. silicon. Ukraine, the quite a powerful alloys, have also

the to cut plus supply procure So of will not is end assessment our the quantities cost point – cost the be have forget is a to situation evolution the energy to of of the that make the going is all impression are our market. raw to be fresh point, our markets let’s materials minuses. the opportunities the we is of able sustainability going be able and to in to what energy. the we too and absorb to to to it The But these and weighted

the incremental on record and all your for on Congratulations thoughts color. the dynamic results Thanks the environment. navigating there

you, Martin. Thank

next Phill Thank question you. the [Operator from Please The comes from Street Capital. Instructions] line your Mill question. Larson ask of

color quarter just a situation. quick question of of all and us million. new on the that’s appreciate Hi a had I congrats Yes, on share everyone. with the use planned great for on loan $XX Russian-Ukraine the that? kind the Could Spanish proceeds you

the Thank Beatriz Yes. for speaking. you question.

that strategic loan Spain. And the boost from call, a spend in as during fund Spain this that government to the companies the get fund and in to that we called the the we SEPI is mentioned our Spanish to expect for a the operations country. such, government So, use funds and from is is managing tries funds Spanish as I

on it Or do you to could costs? what more Are with do the energy have you specific mean offset I detail that any do you Okay. you share money? that? using

maybe effect, to of linked directly, in to Well, part yes, if of that. funds course, the not capital would Spain, may put the working our electricity say needs used be I but

Okay, you. thank

You’re welcome.

question Asset your Management. question. line Thank Aegon Please you. The David the ask McFadyen from from of comes next

have the et about business you’re thanks materials you talked raw in Do your on the to business? materials for raw I enough more you of how bit recently? And as real you’d be of go plan expect place to your supply you lines you’ve causes along lack terms far, plans of issue to in able in with so head long how planning ask for a to just dynamics? before this the a a Ukraine-Russia that access run on buying obviously call. Hi, cetera. pain that put time? for of advance, mitigants go the have put the the in to You out in little the long place mitigation as it business got Russian should a on Can But could situation

ferrosilicon asked have current or a metal everybody in the direct have geographies. in is how hope going business I more talking manganese this – you alloys situation mean think kind quick – to sales, resolution question, Overall, to knows nobody very should no situation. of difficult silicon possible it’s we bit little But or I the about a Yes. going we detail. our Hopefully, as the evolve. because for as of

We have only. business minor foundry sales of

metcoke. Talking So revenue there the is manganese mainly we big from buy production. no on impact. Russia. We materials, for buy raw used They’re that side, the about

our to mainly So carbon used and approximately particularly, Magnesium, – I electrodes paste of goes well is the to the facilities raw production we’re supply talking We and assets in electrodes, for are Rana. from you that buy electrodes buy large mentioned anthracite said, these comes some assets graphite we States. that our like U.S. Russia. of about I manganese about Talking We Russia, alloys. materials, mainly, for well. talk when A before, our Ferroglobe from buy Dunkirk impacted Mo part manganese of like metcoke I the XX% as United as needs the electrode

lack could Beverley And is impacted. facility that is impacts about plants. so our electrode and Dunkirk in Bécancour I Ohio. Montricher, plants based issue Beverly, of manganese facility when mainly our of European The be the in alloy, and France, talk Magnesium in main Selma alloys, Bridgeport,

the this – is the So situation.

we contingency possible that some to these Trying ordered our as soon plans stock. have the get a try build at following each have one, we do plants. one the plan developed for of to materials things: as to Now,

Second, alternative suppliers. we have

moving volumes have we across course, two of critical all are, we are that So the materials. raw this main to and suppliers alternative initiatives these

lasted implement our of from to mitigation in we need supply supplied sure that make the couldn’t course, for from the we we time geographies. and with long and time, situation get Russia, a case we possible increase Now as plans alternative fast as

And if still it you Thanks. That’s your the from able run suppliers, that be alternative volume you run in XXXX? level would business useful. to

because Yes. is this not I about this do assessment but is this situation about, of nine our days final situation a old objective. have

you it it situation credit put quickly I puts urban pan tough just would thing exactly costs, – might the obviously has have might outlook for impact the thanks. do year? the and a through have takes moved this you elevated out on parse you that – year? on other rest credit to Obviously, much the next how are how on costs. an for but to take and continue No, as this long how has everyone impact outlook you’ve I an around out prices is, to only I those of the do for going ask to How business and bit, understand had you be whether business No, saw. little

credit, you are referring Sorry, a right? to COX

Yes. Yes.

Your question is around that.

Yes.

Sorry.

on understand sorry, credits, sorry, COX on properly So – didn’t question. I your

the how how outlook pricing exactly business the that of credits this view for potentially on potential Just and the COX to works segment. costs on for this impact year,

COX very, €XX of prices. few COX around a few COX XX. before, displaying to current the it’s the XX. ton today, our trading weeks last is credits volatility per also we’re or months by One A high also a were at credits and expect more ago year. Then to – And ago, month COX. is this very We said, being impacted than value meet cover we

very difficult there’s fairly which which volatility, to – your very, is makes So answer. a question strong

makes it a It’s all No, these costs. tricky with Yes. environment sense.

Okay, thanks. much. very Thanks

you. Thank

Thank you.

are go Levi, you. the to ahead. hand closing over further questions. like I Thank There remarks. conference no your Marco for Please speaker, would to

Year This you. Quarter Fourth concludes Call. Thank our and Earnings Full XXXX

this and there expect I company’s build unlock. We strategy to to on our create were from. again next to hearing and Have value aim more pleased, all performance momentum in am look improvement that we participation. coming call. great we look to We to company performance a is stakeholders. on recognize execute tremendous XXXX the significant accomplishments the your given I is a in current While value the in for you Thanks day. on as continue from and our near-term forward for XXXX particularly