Ferroglobe (GSM) 23 Feb 232022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Ferroglobe's Fourth Quarter and Full Year 2022 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, this conference call maybe recorded.

I would now like to turn the call over to Anis Barodawalla, Ferroglobe's Vice President of Investor Relations and Corporate Strategy.

begin. may You

morning, fourth Good thank for you Thank and everyone, full Ferroglobe's quarter call. year joining you. and XXXX conference

today our Levi, García-Cos, Officer. are Officer; me Beatriz Financial our Chief and Chief Joining Executive Marco

we read brief at to this Before I'm slide turn a started prepared statement. with remarks, get going to time. Please X some

materially statements made management ferroglobe.com. during cause forward-looking be current on based that Ferroglobe's by SEC this could are most forward-looking filings, our Statements filings exhibits expectations. results are actual from found in differ and webpage, to are on available can to conference call these which Factors recent that those the

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

like I Marco Executive our time, Chief would this At turn now to over the Levi, call Officer. to

Next slide, please.

to and Anis, good you, Thank good morning afternoon everyone. and

our flow, in through have record company. XXXX to achieve a revenue, ability favorable excellence navigate like generated hard our that clear and the of results continue testament many eyes and XXXX able confidence were turning of agility, to commercial the its indication is global challenging to we is that the a deliver business work setting best cash This and a have we and EBITDA impact discipline, Before our performance and also their of for customers in is with Ferroglobe results. Despite operational It free strength our people. results, It model. industries, times. XXX-year strong the in all through prices, our to been cost combination volatility our these resilient Through commitment recognize would history. to on I strong the to

the The plan of the market years stronger and value initiated ago solid competitive. Our sources. that the growing more company energy is by trend to us creation fundamentals driven business made onshoring greener has are the was transition and opportunity and for a couple towards

silicon inflation a As presents of markets leading the battery. movement initiatives a are US by for solidifies our in Europe such and sourcing significant Act like and on the having the silicon increased value initiatives the capitalize driven local we clear in a in This This The opportunity on renewable metal, demand of the Reduction producer It onshoring well-positioned on and criticality market. and as like for is of in unique similar high solar are the impact metal ours. company growing the focus chain. a solar indicator demand a energy production. and position to

and positioned We are of strong results. these deliver to take advantage well trends

technology. are state-of-the-art through metal competitive the We advantage industry silicon solar driving our committed in to a

and assets Our also focus risk on but customers. energy maximizing efficient efficiency for advanced to furnace project reduces technologies improves providing not only design, operations our our

the electric time. market solar, In years, current in substantial battery provides addition in standard graphite, advantages significant primarily coming also to battery including we In a from growth in reduction the the anodes, the metal opportunities in dramatic batteries used silicon in capacity battery over used the and charging increase see vehicles. driven

growth improves, to rapid is the the see adoption, metal strong technology this industry As for future. expected driving silicon foreseeable in

strong ability cost company, on that just are in but a us plan creation we our to growth. The well past reductions also transformational our positioning efficiency, future increased on we launched years, in for focused through two EBITDA. terms the Over of how not improving in effect capital XXXX operate and business we generate efficiency our as value

the on has million. the cost $XX savings end basis. in in and we an commercial of XXXX, As value excellence By XXXX, December to $XXX creation million of reach approximately our target additionally increased run million XX, generated plan of $XXX expect rate a

By continually navigate optimizing have any the may that capital arise. challenges our we that our resources we and are and capitalize ensuring we structure, need balance and opportunities to sheet on improving the flexibility

progressing capital. to We quarter the EBITDA anticipate should over commitment working released release our combined XXXX. working cash release the two fourth to net positive lead are $XX We release in next These with quarters. capital additional we million during generation and us with become

some While our long-term robust. story the in short-term, there uncertainty is is

challenges and these strong a steel which fourth their inventory We are of the for confident closures customers results our as delivering investors. in result due demand to our higher to on quarter, ability for In to aluminum in our and products sectors prices, focused caused levels. decreased European navigate remain our energy lower

signs early and to particularly construction driving seeing we levels expect sectors the automotive near the our and improvement of future for are We in normalize in products. demand inventory

communication compensation the I to highlight work in costs. proactive have to would like to moment take we a advantage with to agreement opportunities successfully customers, and energy regulators, revenues management been in provider with an energy energy governments, generate exceptional a QX. providers Through of of optimizing our able through take our team France in

favorable In coming providing for for low-cost extremely France secured assets our have energy addition, the energy contract, years. in we an

to on ways results, curve. finding ahead remain We on delivering our a management that innovative and not have but team strong is improve operations the focused of only also

please. Next slide,

metal. Adjusted $XXX million million $XXX $XX QX, silicon down in from QX in down this Revenue XX%. declined million for million on EBITDA focus from in QX, $XXX of to Let's decline segment a was XX%.

historical demonstrates We demand strong respond preserving to have margins. margins and market to compared ability This declining over costs XX%, control successfully while prices and production of achieved our and to improvement despite notable levels.

declined tons. environment and due and business metal approximately silicon XX% price a was XX,XXX impacting challenging both Our Volume volume. to to market in sequentially QX down metric

XX% on primarily by the COX price due in resulting impact million. of to to Our sales negative compensation. energy relative average the compensation prior quarter France year realized silicon in $XX $XX previous compared Costs to and the for decreased a metal EBITDA quarter, improved million agreement

offset was costs energy the However, materials. and by partially in increase this raw

demand the fourth silicon for shut quarter, aluminum down in in During high resulting metal. Europe various to decreased energy due manufacturers prices,

encouraging we signs seeing low for Concerns outlook aluminum to around for chemical led automotive sector. the from However, the customers economic sector. some demand demand in in are QX of the

this the persist until or QX. late QX expect weakness to early We

However, a electronics we anticipate due rebound silicones cosmetics goods. consumer in metal medical, for demand increased for silicon and to

Slide X, please.

XX% XX% by million, Revenue for while Sales $XX EBITDA third alloys. silicon-based EBITDA million the the impacting to volumes the average million, over negatively EBITDA negatively quarter. down the declined realized period same pricing from previous prior by Adjusted XX% Moving $X was was down XX% $XXX QX down impacting $XX over quarter. over million. quarter, was

$X Cost to prior million. which and in France offset energy relative of by price quarter, in the was favorable to million coal compensation mainly of $X to COX was partially million, higher Europe, due which $X compensation amounted

markets, our has in in ongoing to steel the particularly, Silicon-based alloys for due construction. weakness decreased demand The used

rise material price significant Europe among ferrosilicon in being and Additionally, to lot down energy We market. impacting capacity China has change has a from Russia the coming see steel and shutdowns Europe the supply Kazakhstan being in the in grades. out continued the of a prices producers. resulted of non-specialty of of in of due negatively Slovakia

improve specialty products us focus enabled to Our and strategy has higher margin to on foundry compared silicon commodity margins to alloys. grade

quarter. adjusting million million manganese after indicating over revenue the third quarter was was QX momentum EBITDA previous in move margins positive showed QX X, slide Manganese-based let's improvement Moving EBITDA XX% from from the quarter. alloys down X% fourth the alloys. $XX the for Adjusted up provisions. Adjusted to to $XX in earn-out and

$X adjusted on over influenced Sales The EBITDA was the the negligible volumes COX pricing by in while the positively prior million. down compensation which realized which compensation were slightly up having agreement impact energy was EBITDA, period, negatively over impacted cost the and a France, $XX amounted average million same to $XX million. impact quarter by X% of

up losses result The disruption The these Ukrainian of a demand as a prices. X.X made since and for Ukraine to tons pressure to the million in market but upward remains steel. caused on outlook and costs between Russia in has partial leading source weakness had conflict energy placed of ongoing decrease materials, cautious

metric landslide prices between ton. current metric manganese could of a per in potentially rise spread around tons is historical The Gabon to to which and $XXX increase. cause alloy per led above prices, $XXX alloy has ore The average ore

I Officer to Now Financial detail. to would the review Chief like turn over to results the our García-Cos, Beatriz financial more in call

our combined on from with value historic Marco. of history adjusted year. company's with result to the you, $XXX announce statement market strongest improvements record Thank revenue billion us annual I creation Ferroglobe. plan will $X.X by the EBITDA slide the reviewing income in generate and to structural record X. pleased the of for the million enabled strong The year for begin I'm a

was the pricing $XXX was sequential quarter fourth third volumes by driven XX% the and lower in the down for quarter decline portfolio. the The from Revenue million quarter. fourth across

remained and increasing XX% consumption raw in of a the materials percentage consumption up materials sales third as energy raw XX% quarter. energy flat from quarter the QX, to During from third in and resulting

hold in significant and we France. footprint our fourth energy effectively the in during flexible shift costs temporarily increase use energy We To regions saw lower operations production cost this, to a quarter. asset manage to

compensation energy We therefore, profitability. will and, our optimizing receive

This impairment fiscal plants high In agreement prices. million, to chart two of XXXX year manganese but of and related the impairment Cee-Dumbría energy $XX for result charge a we in our fourth was recognized recognized Spain. governing in tolling our an QX. This quarter, which was was plants

energy XX% sales asset weak year XX% improvement material cost to EBITDA operational and On to Adjusted XX%, leverage this due down margins and a -- slightly improved percentage The from was consumption of XX%, pricing a improvement QX, of strong strong our market despite basis, compared XXXX. in as base. to the conditions. flexible remained in at full raw from

the Net in profit compared prior a million loss the of was $XXX an million. extraordinary for $XXX net full to year year

$XX $XX For to the net quarter. the profit was million compared quarter, in fourth third million

profit quarter $X.XX $X.XX diluted adjusted versus four per in to three. share in quarter decreased Our

please. Next slide,

a in EBITDA price period from price with XX%. $XXX quarter, roughly fourth of margins Average in line EBITDA at million million. XX%, the was of the $XXX a adjusted prior $XX the the during by Our decline our resulting selling Adjusted XX%, impact in solid portfolio across QX. representing negative million, quarter in declined remained down

This had by negative EBITDA impact due a of energy $XX declined to quarter, of compensation prior over million. which the had XX% volumes was received the Cost positive impact Overall, $XX France. in to million. a adjusted

EBITDA resulting in adjusted the in in was $X $XXX XX% selling to of a billion. price please. margins driven $XXX EBITDA, by impact million our Slide in on Average XXXX. EBITDA XX% XXXX. XXXX portfolio the improved versus approximately biggest XX, Adjusted XXXX full of increase among year XX% versus an million the benefit Adjusted for had

material raw prices, the adversely higher offset $XX compensation by EBITDA Higher of year energy adjusted by driven costs energy prices partially million, France higher impact million. $XXX Spain in in for by and

Next $XX to an balance the company's a at third driven $XXX million generation. We prior debt in ended $XXX release up increase from history. Net in level quarter million year-end, EBITDA capital with $XXX million million slide, by declined of and working please. in QX cash of million lowest from quarter, the $XXX the the

in quarter, net the underpinned reduction cash working by the result the primarily was during debt Our generated of release. capital

to our on positive to We XXXX. be and continuing reduce during are net cash expect leverage focused

Next slide please.

up operating operating and was cash capital. in we cash from was of quarter XXXX, XXXX million million. cash flow cash $X in release free of generated working quarter, of $XX negative $XX flow flow million $XX operating a where In million, over million $XX million record million versus was we flows $XXX Free flow significant negative of represents with in million. improvement $XX third free $XXX During This the a cash the million QX $XXX and flow QX. fourth generated cash

our and was is million activities and was from in from our spend and in driven XXXX. flow in Cash core flow our higher attributable in $XX for XXXX plan ESG. program achieved beyond expand plan investment increased growth or CapEx invest investing CapEx million maintenance The business negative increase CapEx to plan. by We XXXX CapEx our to versus negative which in activities cash in $XX investing

from lastly, includes This repayment flow million. coupon negative and the flow prior And was payment. in $X was our of financing $XXX $XXX versus financing debt for negative cash cash negative quarter. from activities the XXXX In million activities fourth super million the senior quarter,

please. slide Next

one strategy of government from million part overall As February to debt, reduce loans XXXX. Spanish $XX in repaid we of our our

secured senior our We different to overall to are the capital exploring actively options objective structure. our related notes with optimize

this I'll the back At over turn Marco. time call to

now Thank update you, on XX. the Beatriz. Referring to Slide corporate

years. growth most growing drive is that develop high the market solar modules. solar used primarily common purity semiconductor Our provides ability material The large which company to metal silicon, and approximately coming purity in will solar the is XX% market representing high the in for numerous of a comprised that silicon cells, of the opportunities is

the part significant advantages rapid silicon vehicles, for replacing High of in technology graphite electric anode the purity also technology increase plays silicon the This batteries perfected. to to mix as an technology provide of with adoption X% advancement enables in by XX% important years. that graphite over silicon. be the replaced of is drive dramatically next to Current will is expected five the battery

made to partnering are significant developers refine have We progress. with technology battery this and

We in of commercialization. are the production we have and stages started early

provider. technology is expect leading this We to adopted. be as a

and opportunity growth this expect for about strong future. the excited are We we high generate to margins foreseeable as it

to for increasing with closer On an shoring home. critical be trends materials provide growth, to for produced driver additional demand

puts position this benefit Our us unique to trend. a from footprint global in

growing our capital capacity by enhancing global silicon We minimal capitalizing investment. on are our expanding the with metal demand and footprint for

successfully XX,XXX our In Alabama tons capacity of XXXX, Selma, we at added Plant.

Polokwane in States, in facilities shift January. footprint. November, strategically in and have in currently South restart the XX,XXX successfully Their us furnace the markets address Africa. experienced metal are efforts process demonstrate the East to We in global They important furnace in meeting and to first volatility in restarted for increased sustainable in of serving production our the locally we enable low-cost are We the part are customers to These plant adding Middle the plants asset and energy completed and matter. of at demand silicon Europe, These the are low-cost second Europe. a Polokwane our of Asia. commitment an and in tons an located as our the United additional

In improving that achieving ESG global transition. to XXXX, contributing we demonstrates our to milestone green a commitment environmental published significant performance and our report the our first

key several initiatives. includes plan Our

our focused and increase are our operational We efficiency. on reduce to waste, reduce our energy efficacy improving carbon footprint,

increasing energy create believe on a to focused we to also future. work are we of transition to We and essential which renewable our clean energy, sustainable usage is

For the We business $XXX into our approximately $XXX to investors in guidance EBITDA project annual to generate first additional of time, we providing performance. give adjusted to million insight are million XXXX.

the cycle. Projections the in order by activity volume acceleration expect customers of bottom be current anticipate to and the our in a and XXXX an X% volume we $X the end flat Given from with down to lower approximately first overall current the quarter markets, from We QX million. quarter. change show beginning slightly in represent's EBITDA second affecting

turn operator for the With that, will open line the update call over the and I to questions.

Thank take from first Englert of comes question Martin Research Instructions] We Partners. will it Seaport from line you. the [Operator now the

good everyone. Hello, afternoon,

Martin afternoon, Good

costs or some guide the assumption million you $XXX For EBITDA that? price million. assumption the of to guidance, maybe discuss EBITDA $XXX Could of the average annual price are and underlying volume that

lower the our volumes fact that indications the X% in first about are volumes weaker running these XXXX, that the we related plants I in mainly not France, are quarter. Martin, we you. give Yes, expect I in mean, can to

terms rather year. In silicon stable pricing, we see across the of

much than previous the know, you in the previous of silicon As -- this is level -- in years the cycle, price the higher previous in in sorry. quarter graph,

While speak. for price some alloys we we as see already recovery,

up in are Gabon. particular assume in going of pricing, with Manganese recovery -- we event mentioned exceptions. our becoming my the year alloy raw to be related appreciation the is to to the linked that Europe. in ore, the demand some affordable most So mainly as in costs, during there some pitch, will of I materials Concerning more

that the our volatile we wash is extremely Coal, least, buy for coal, furnaces. at

And in you country. see price. But coal term of affordable have depending at the restarted varies, as picture we is in the Spain. energy But price energy on So, for significant a everywhere more reduction at we know, furnaces. contracted except short some are now, fordable don't we production our cost, and Spain

dial-in was call of your some because energy some And helpful. and in it -- apologiz,e I of benefit million rebates. quickly what little $XX breaking for a and the impact recap XQ? a that. that net I comments Could missed about credits up France, I It's, you you the Thank bit, is or think

contract The to supplier. us the the benefit way, Yes. and in related works energy is France the between

to France, were in position energy terms. quarter a we in we as four. less consequence, the got on consume compensated, So the contract in And based

Okay. And in available XQ, assets not running is on that of either point, at forward-looking know planning potentially there in anything you're in that? France the XQ anticipated benefit, is but the a any -- I or I or on basis guess other there or is any or the XXXX? other else end

be competitive terms during in France of the QX cost to expect our We XXXX. in assets QX, of of out position rest

restart of season. plan in changed haven't the at beginning the We our our to second plants France

cap could, can the one I XX% first work one that and I any we was XQ I of share down to other on believe, If understand here. Okay. XXXX the detail sales, relative final Working that intention through but as metric it you XQ? half during that this to move quarter.

can to basically due proceed we our I then, have of business. reduction but we $XX million you we $XXX working is solid getting What in reduction more and between QX, capital pretty to that, quarter. capital with back $XX target a will reduction working expect first further And tell the run affordable in to million Yes. million of QX, levels in a

a the that the a back or because the of or of manganese maybe the And again of bit half Okay. maybe just above couple little year? in target is some XX%, points

XX%, to and sales business high of Well, silicon with mean, working related the the alloy silicon prices. level course, XX% ideal What to XX% I run capital. is of was the you're the expect in we of do and high right. levels range inventory

of to cycle capital. seen due alloys we While require of probably X, our additional lack that, length of have the and manganese points an integration, the back the X will working

we're -- fine-tuned going. right moving target, to but sharpening this where is the get pencils our to are are We we a is level,

and Thank on all for detail results. the congratulations Okay. you

you, Thank Martin.

Thank you.

from We It comes will line next Please the B. question. Lucas ahead. from go the now take Securities. of Riley Pipes

Your open. line is

good commercial job much, quarter. additional great, first everyone. on and is the A on Thank savings the very question great operator, you excellent opportunities. and My morning,

bit of expand Thank million You on the seeing $XXX the you could previously you're savings. I from this wondered the identified at end a where you, very much. year. outlined if And additional opportunities maybe

Yes.

know, this And capture the you in started initiatives, we value implement you XXXX. As every you do program not year. while during the full

there is the And So certain we trend. a we all -- initiatives. are have basically implemented

capitalize of a full so, we granularity, you to while production Monzón. our XXXX. to program $XX the Falls. in able production million XXXX able give And to And them, shut optimization. Feuillet, stop stopped we on have factoring to we of bit in the particular footprint we implement part expect in in more been be are little We down Niagara We Château throughout by

has line. bottom million to this of given the $XX All

$XX at is furnace. usage technologies which from million several one each material about the KPN improve yield of implementing I our furnaces each plant program, and mentioned improvements. the comes raw continuous times, of to our

be much million, from we but have So $XX another better I this do come until will is now, centralization. $XX million purchasing able to think

know, parts basically we raw purchasing most spare you services, strategic have As of Lucas, activities energy. materials centralized our

commercial $XX million all calculated the out $XXX we And million these bring initiatives coming you We have excellence. you centralized. everything $XX that. if million. sum is from up And get to numbers of So about

the sensitivity volume. you $XXX million able believe going appreciate very detail. $XXX X% Would $X in side? a the I guidance of XXXX I of helpful. to to really sensitivity to similar offered range is And be offer pricing That on million for you annual a change back EBITDA that million,

combined we you a we like the volumes. demand focused this finger your question we on as reason I we that EBITDA Well, right -- This back And we sensitivity consequence, spot. why key -- the coming the the put comment for is are with have given think guidance. more in the our on mean, expect. XXXX is

an gives Of course, price is than bigger one the volumes. in on impact, X% which prices, probably

On the our feel on other pricing, comfortable pricing comments on side, XXXX. about my we scenarios based pretty for

really go hear. one that helpful. That appreciate confidence is I'll I'll queue. one and on I to into back That's your try last front. good the to squeeze very

Silicon the would compensation that's received, I in assume Metals the dynamic. related add the typically in declined, else sector. mostly energy On expanded. segment you volumes but to to unusual anything QX, It's you to margins that see

I color distant any that? appreciate So on

say of this right. go not told the the what is terms of pricing market we metal I levels structure going back trends due said I to trough is we previous of mean, factor silicon of Yeah. the investors must is main was to a to that in the cycles element. pricing the key and in the

other is COX then compensation. also the favorably the said we a the like, And The impacting compensation presentation of in element were, certain results. there energy level metal silicon

of coal. terms commented -- costs we mainly cost I are before likely In still input

I appreciate Thank all you. continued luck. the color, of best

Thank you, Lucas.

Thank you.

comes from take Marina Capital. now the next from ahead. question. It will the go Please of Logan Gilmartin [ph] line We

open. Your is line

Hey guys, congrats the on quarter.

to color outlook year, positive you returning timing? give to position dividends? should shareholders or about any terms capital on how Thanks. for the cash guidance in of net think buybacks Your we this Can

Beatriz speaking. this Hey, Logan,

to our of debt know on executing ability the to the don't the dividends. notes, you we have are senior current As as pay with the we indenture, expect we reduction But able to these pay the dividends be then have to the shares policy and And to the right buyback pay question. answers if define to your ability. ability dividends this needs company

you. Thank

you. Thank

now take Michael Jemekk. comes next the question. It from ahead. line Lam go Please from We the will of

line open. Your is

good Yes, Two morning. questions.

outside of all shortages. whereas, so your is to that where grid your is electricity where are? lots The been in good, Africa where sourcing case is widespread -- problems it blackouts news speak grid electricity Is a island plants are is the first recent one you're I've electricity from South where about the reading and of an you're

for Thank question. Yeah. you the

very closely, until of suffering that it's restart South to that, been terms are issue significant of we monitoring covered energy we have had properly For decision today also course, energy the Africa ourselves with we situation the make any we in to providers. when in not the true sure Polokwane,

So production stage, stage, this both [indiscernible] the is South in course, at in But situation we at are in particularly Africa. this of intense full

Okay. electric you -- down because the might situation the or of ramp-up, Does it slow ramp for with the are continuing now? up you

No. The -- continue we with the ramp-up.

are April. third up furnace ramping in We Polokwane

We have for already the volumes contracted also furnace. third the

at So capacity expected is the Polokwane this quarter. at in stage starting second sometime run full to

right. All Okay.

actually question mentioned second The Clearly, look I imports like -- you just also is have two more sales China when there's in and less not second volumes and quickly. but your Kazakhstan. de-stocking Clearly, there's But QX, I QX. increased the from demand. at been

down anywhere look I auto be is of close. up in down and look metals, production rise. But won't substantially when I is at Europe. the at users And I steel volumes they mean, the so production on

that that's So from back? de-stocking what's because the will of the decline your percentage come to volume best guess, simply as

to is perfect And metal. we of are comment why situation. Kazakhstan -- you not about China way By Right. a my to related this was the -- Right. read have silicon we ferrosilicon have and the

this Just to detail. is be a clear, but

terms that solid QX should And supply chain employee year. if chain you In a the we in moderate pretty of should on start count effect demand healthy. outlook be this still given and combine an QX sales is volumes supply we've of the

Okay.

on lot not but itself cash. And sorry a related you're dividend question much sitting but of to follow-up to so last dividends, question a about earlier a an

it But return on with where at earning I interest next cash decent you're today, below but maybe the a rate granted for the they was was bonds, recently Now trading not very looking at rates the anniversary. buyout are.

and just just and -- start because you quite large because QX cash your the back net to bonds so and it is some market debt. one to going expense thing ahead why in save noticed your I not high buying of relative your is interest is get Given of just money then

rate mismatch because Now X% have cash, that's obviously you're interest you of And right? differential… a is X%. on So debt earning your

Yeah.

try bit not and close taking a little why some and by … of that repaying more debt. cash

You I aligned. and are

we as we exactly significant we update initiative we But as speak. will investors progress. this soon as have executing We are along lines, these made implementing other the are

right. All

Thank Sounds good. you.

Thank you.

Thank you.

We Please will the next now comes question. Brian go the ahead. of from from Baird. It DiRubbio line take

open. Your line is

Marco and afternoon, Good Beatriz.

Hi.

view couple of as the you that of you takes, in that as to result company your or at you all XXXX opinion? look for A going quick questions a puts and Marco, you. think mid-cycle various of is trough more more and do generate, the results sort this

that up. and the Well ramping a I least demand being Europe at mentioned expect in we weak cautiously see we quarter then QX

the is way this it. So we see

EBITDA I on been company what guidance doing of profitability the to you Our cycle. the good of this gives a think indicator of we during secure have also trough

just And of That's as about Understood. we term Beatriz then helpful. think longer structure. two questions sort about debt the

or we in think a you how to some have more fixed place? want should cycle? conduct what target your looking leverage refinancing First about a something do you over if prepayable debt you are is And

Thank for questions. Yes. you the

So back. let step me one take

right? And rates million. X.XX. as want the notes, part moment said the right? the the interest was fixed Marco The you gross total to debt of senior notes a main we in reach notes. on XX% $XXX that of debt at senior fixed we debt our of we the our were majority senior At So made saying, is the of moment, are listening, if is executing so It's at level

bottoming quarter, And the the to type to approximate are of need going depend want or next to right? need million. option see with $XXX an run the on We debt We rates then we company is if what how of Ferroglobe. evolves forward, the interest the level will for Going on instrument on. is the best what see debt market

Thank Fair enough. the so much. you thoughts. Appreciate

Thank you.

It We will Please go Brennan take line Andrew from from [ph]. Cohen the now ahead. comes next question.

line is Your open.

I just of February a where at environment XXXX, EBITDA question. savings Hi, and $XXX silicon back metal the estimates the for lower going was remain prices from of decently presentation the cost least taking of thanks my expectations. XXXX to lower million for

between the first delta you if in the sales down guidance also inventory where in for updated wondering in XXXX for bridge guidance quarter presentation? the right of XXXX now? just that was total you working given cadence the a capital Thanks. And were pension XX% updated and for above I there XXXX decently the and we're guys and is coming could that

let the same to second me question, from question already start because the from Martin answered Andrew I Seaport. Yes.

capital working We have in reduced quarter four. $XX million

and We are quarter gave I we more two. QX. million area and significant QX go during $XX in a the in a of in $XXX million, expecting reduction range further down

capital and XX% to long cycle XX%, silicon to working for manganese base revenue of have the move alloys expect on points we that couple more in on manganese. due towards in a We silicon

looking been the demand bridge I higher the I beginning a elements couldn't plan, for the our than related the don't million cleansing are; market, are could one, were presentation, -- there with EBITDA, creation supply evolution the And key in was $XXX period. of There over which have in customers the while what value of who we expected delivered of the $XXX me. that than creation what are think, to we getting covered forecast. the it at Regarding price because plan, we creation foresee But and evolving products at pricing buffer the on has of at a level versus was million. time security out we we the more creating have value was

lower is are seems in it the than that's sort savings like EBITDA both have my was. and you And and favor what guide that Yes. your of guide is the pricing cost the I point guess

reconcile something that. maybe So missing I but was just to I'm trying

volumes the effect first lower the Well, the we pricing. EBITDA in assumption guidance the the fact plan and that takes our quarter of have on creation account value into

Thank you.

Thomas comes the will Capital We now question. Please It Murphy next of the line Odeon from go ahead. take Group. from

Your line is open.

morning. Good Hi.

questions. Just two quick

The restrict and I notes [ph] don't. I features know out dividends? they the I equity? first is, which the what it referenced. as for [ph] is X to X hand the notes the restrict to But people CapEx lot And do second the XXXX? off apologize should outlook do have senior notes, has of relates Does But dividend to with a the senior this

are Yes, right. you

us And pay saying to we on the So are executing we with this intent, as pay before, current our dividends. will the notes. ability senior have dividends. And I can't was to allow

then to this your financial question? terms in and of If company is define the the course, what needs answer policy buyback. Of dividends

same we million Referring and the CapEx EH&S the in level spent $XX at XXXX plan CapEx maintenance year. of of moment last for to of amount we have CapEx, that same

we starting been our have CapEx. communicated, previously assets of As

And the for we to of a want are up level program bringing we $XX so years. with two that reinvestment them million

we I On the mentioned, opportunities top growth that have.

CapEx this more judicious meaning So be going are going Board growth a in to approval. to is year any kind for way to we and very of that CapEx the invest presented analyzed

to stage in some So we XXXX. growth CapEx are gating

have The rest my already questions you. asked. of Thank been

So thank day. great you and have a

Thanks Thomas.

Thomas. Thanks

hand back would I now for to over speakers like you. to Thank the final remarks.

That you. I our results and our full XXXX. and XXXX quarter of proud Thank concludes am call. fourth performance year earnings in

value you you to truly from there compelling We next Thank believe on hearing a the have your participation. is to forward perform day. We Have demonstrated for a making transforming. call. significant able look Ferroglobe great to be unlocked that while again, investor proposition. I is Ferroglobe

That our does for for Thank you conference conclude today. participating.

may You disconnect. all