GSM Ferroglobe PLC

Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announced results for the fourth quarter and the full year 2021.

BUSINESS HIGHLIGHTS

• Revenue growth in the fourth quarter was driven by strong fundamentals across all three product categories, which is expected to further fuel performance in 2022
• Tightness in the market is driving pricing to unprecedented levels, primarily silicon metal and ferrosilicon
• Yearly fixed price contracts in silicon metal have expired at year-end 2021, driving a step-change in realized prices in Q1 due to higher market prices and heavier weighting towards index-based contracts
• Outperformed 2021 targets set in turnaround plan with momentum into 2022; repositioning the Company to deliver stronger results through the cycle

FINANCIAL HIGHLIGHTS

• Q4 2021 sales were $569.8 million, up 33% from $429.2 million in the prior quarter
• Record Adjusted EBITDA of $92.8 million in Q4, up 146.9% from $37.6 million in the prior quarter
• Adjusted EBITDA margin in Q4 was 16.3%, an increase from 8.8% in Q3
• Returned to profitability in Q4 with profit attributable to the parent of $66.3 million, compared to a loss of ($96.6 million) in Q3
• Returned to positive free cash flow, generating $14.2 million of free cash-flow in the fourth quarter, up from negative $42.9 million in the prior quarter
• Improved liquidity with total cash of $116.7 million in Q4, up $21.6 million from the prior quarter

Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “The past year represented an important inflection point for the company as we made significant progress in improving the business operationally and financially, all with the objective of creating a company that can remain competitive through the cycle. The acceleration of performance in Q4 highlights strong momentum across all of our core product categories driving significant top line growth, well ahead of the lingering headwinds caused by energy and other inflation related costs. This market backdrop, coupled with the resetting of our silicon metal contracts, is expected to help fuel a further acceleration in our overall performance into 2022.

“While the current pricing environment is one that benefits Ferroglobe in the near-term, we are not counting solely on elevated prices to drive value creation for our stakeholders. Our comprehensive turnaround plan, which was implemented in 2021, is running ahead of schedule and exceeding our stated targets. While we have made great progress to date, we continue to work towards improving our overall competitiveness in the market,” concluded Dr. Levi.

Fourth Quarter and Full Year 2021 Financial Highlights

		Quarter Ended				Quarter Ended				Quarter Ended				Year Ended				Year Ended
$,000 (unaudited)		December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
Sales		$	569,771			$	429,210			$	320,535			$	1,778,908			$	1,144,434
Cost of sales		$	(371,519	)		$	(295,273	)		$	(272,603	)		$	(1,184,896	)		$	(835,486	)
Operating profit (loss)		$	64,860			$	11,260			$	(91,343	)		$	40,361			$	(184,350	)
Operating margin			11.4	%			2.6	%			(28.5	)%			2.3	%			(16.1	)%
Adjusted net income (loss) attributable to the parent		$	45,922			$	(64,214	)		$	(40,563	)		$	(33,502	)		$	(98,671	)
Adjusted diluted EPS		$	0.23			$	(0.36	)		$	(0.23	)		$	(0.18	)		$	(0.59	)
Adjusted EBITDA		$	92,825			$	37,592			$	5,483			$	186,575			$	32,510
Adjusted EBITDA margin			16.3	%			8.8	%			1.7	%			10.5	%			2.8	%
Operating cash flow		$	21,707			$	(34,677	)		$	3,527			$	(1,341	)		$	154,268
Free cash flow1		$	14,249			$	(42,845	)		$	(10,680	)		$	(25,189	)		$	122,328
Working Capital		$	464,870			$	395,867			$	339,610			$	464,870			$	339,610
Working Capital as % of Sales2			20.4	%			23.1	%			26.5	%			26.1	%			29.7	%
Cash and Restricted Cash		$	116,663			$	95,043			$	131,557			$	116,663			$	131,557
Adjusted Gross Debt3		$	507,711			$	499,270			$	455,110			$	507,711			$	455,110
Equity		$	335,068			$	281,910			$	365,719			$	335,068			$	365,719

(1)	Free cash flow is calculated as operating cash flow plus investing cash flow
(2)	Working capital based on annualized quarterly sales respectively
(3)	Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 at Dec. 31, 2021 & Dec. 31, 2020

Sales

In the fourth quarter of 2021, Ferroglobe reported net sales of $569.8 million, up 33% over the prior quarter and up 78% over the year-ago period. For the full year 2021, sales of $1.78 billion were 55.4% higher than the full year 2020 sales of $1.14 billion. The improvement in both our quarter and annual results is attributable to higher shipments and higher realized prices across the product portfolio.

Cost of Sales

Cost of sales was $371.5 million in Q4 2021 versus $295.3 million in the prior quarter and $272.6 million in the fourth quarter of 2020. Cost of sales as a percentage of sales was 65.2% in the fourth quarter of 2021 versus 68.8% in the prior quarter. The improvement in the cost of sales in Q4 was primarily driven by improved utilization of our asset base, reallocation of orders to optimize economics, stronger operational performance at the furnace level, and continued cost cutting. These costs were partially offset by continued headwinds, particularly higher energy costs in Spain, which increased $25.9 million over the third quarter. For the full year 2021, cost of sales as a percentage of sales was 66.6%, compared to 73.0% during full year 2020.

Net Income (Loss) Attributable to the Parent

In Q4 2021, net profit attributable to the Parent was $66.3 million, or $0.35 per diluted share, compared to a net loss attributable to the Parent of ($96.6) million, or ($0.54) per diluted share in Q3 2021. For the full year 2021, net loss attributable to the Parent was ($95.7) million, or ($0.54) per diluted share, compared to a net loss attributable to the Parent of ($246.4) million during the full year 2020. During Q3 2021 we had significant one-time costs ($90.8) million relating to the refinancing of the senior notes.

Adjusted EBITDA

In Q4 2021, adjusted EBITDA was $92.8 million, or 16.3% of sales, up 146.8% compared to adjusted EBITDA of $37.6 million, or 8.8% of sales in Q3 2021. The increase in the Q4 2021 Adjusted EBITDA is attributable to volumes ($7.9 million) and higher realized prices ($89.6) million. Costs had an adverse impact of ($30.6) million, primarily attributable to higher energy costs ($26.0 million), of which $25.9 million were in Spain, higher raw material prices ($5.7 million), the CO2 accrual ($5.5 million), and lower fixed cost absorption in Spain ($1.6 million). Partially offsetting these costs was a positive impact of the pension plan in France ($3.9 million), proceeds from the sale of the Niagara facility ($1.4 million), and asset disposals ($0.3 million). Furthermore, there was an adverse impact of ($10.5 million) relating to overhead expense. This is due to a bonus accrual charge of ($8.0 million) and an accounting accrual relating to audit charges totaling ($2.0 million).

For the full year 2021, Adjusted EBITDA was $186.6 million, or 10.5% of sales, compared to Adjusted EBITDA of $32.5 million, or 2.8% of sales, for the full year 2020.

Total Cash

The total cash balance was $116.7 million as of December 31, 2021, up $21.6 million, from $95.1 million as of September 30, 2021. The total cash balance was $131.6 million as of December 31, 2020.

During Q4 2021, we generated positive operating cash flow of $21.7 million; had cash flows from investing activities of negative $7.5 million, and had cash flow from financing activities of $7.4 million. Total net cash flow for the period was $21.6 million.

Total Working Capital

Total working capital was $464.9 million in the fourth quarter of 2021, increasing from $395.9 million at September 30, 2021. The $69.0 million increase in working capital was impacted by a $11 million increase in inventory and a $83.4 million increase in accounts receivable as a result of higher sales. On a relative basis, our working capital as a percentage of sales was 20.4% during the fourth quarter, compared to 23.1% during the prior quarter and 29.7% at the end of 2020.

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “We ended the year on a strong note, with revenue growing 33% and record setting Adjusted EBITDA increasing by 147%, sequentially. While we continue to be impacted by the high energy costs in Spain and inflationary impact on other costs, we partially offset this by enhancing operational efficiencies and through our cost cutting measures, resulting in a significant improvement in margins. Furthermore, we were able to improve our liquidity from cash generated in the business during this quarter.”

Mrs. Garcia-Cos continued, “2021 was marked by a number of one-off events which consumed a significant amount of cash. With these now behind us, coupled with more efficient working capital management, we are well positioned to accelerate our cash generation. Going forward, we will look to deleverage the balance sheet, reducing overall gross debt and investing in our asset base to a normalized level of approximately $75 million per annum. We think these are critical areas of focus on to ensure the long-term competitiveness of our company and to provide a healthy level of performance throughout the cycle.”

Product Category Highlights

Silicon Metal

	Quarter Ended			Quarter Ended						Quarter Ended						Twelve MonthsEnded			Twelve MonthsEnded
	December 31,2021			September 30,2021			Change			December 31,2020			Change			December 31,2021			December 31,2020			Change
Shipments in metric tons:		63,681			61,713		3.2	%			54,912		16.0	%			253,991			207,332		22.5	%
Average selling price ($/MT):		2,944			2,467		19.3	%			2,260		30.3	%			2,511			2,234		12.4	%
Silicon Metal Revenue ($,000)		187,477			152,218						124,089						637,695			463,217
Silicon Metal Adj.EBITDA ($,000)		32,501			11,428						1,950						72,346			27,365

Silicon metal revenue in the fourth quarter was $187.5 million, an increase of 23.2% over the prior quarter. Total shipments of silicon metal increased 3.2%, primarily as a result of continued strength in chemicals and to a lesser extent, the aluminum market in Europe which continues to lag due to continued supply chain issues. Overall tightness in the market, attributable to strong end market demand and ongoing reforms in China, propelled U.S. and European index prices to unprecedented levels during the fourth quarter. Adjusted EBITDA for silicon metal increased to $32.5 million during the fourth quarter, up 184.4% from $11.4 million the prior quarter.

Silicon-Based Alloys

	Quarter Ended			Quarter Ended						Quarter Ended						Twelve MonthsEnded			Twelve MonthsEnded
	December 31,2021			September 30,2021			Change			December 31,2020			Change			December 31,2021			December 31,2020			Change
Shipments in metric tons:		60,078			55,863		7.5	%			57,351		4.8	%			242,766			200,212		21.3	%
Average selling price ($/MT):		2,770			1,992		39.1	%			1,528		81.3	%			2,058			1,515		35.8	%
Silicon-based Alloys Revenue ($,000)		166,439			111,256						87,614						499,584			303,265
Silicon-based Alloys Adj.EBITDA ($,000)		51,174			8,375						7,086						81,022			11,664

Silicon-based alloy revenue in the fourth quarter was $166.4 million, an increase of 49.6% over the prior quarter. Total shipments increased 7.5% due to the continued recovery in global steel production. Strong demand for ferrosilicon, coupled with low levels of inventory, sent the index higher in the US and Europe, contributing significantly to the 39.1% increase in average realized prices across silicon-based alloy during the fourth quarter. Adjusted EBITDA for the silicon-based alloys portfolio increased to $51.17 million, up 511.0% from $8.4 million the prior quarter.

Manganese-Based Alloys

	Quarter Ended			Quarter Ended						Quarter Ended							Twelve MonthsEnded			Twelve MonthsEnded
	December 31,2021			September 30,2021			Change			December 31,2020				Change			December 31,2021			December 31,2020			Change
Shipments in metric tons:		97,053			76,454		26.9	%			78,611			23.5	%			314,439			261,605		20.2	%
Average selling price ($/MT):		1,720			1,574		9.3	%			1,031			66.8	%			1,492			1,022		46.0	%
Manganese-based Alloys Revenue ($,000)		166,953			120,347						81,076							469,138			267,469
Manganese-based Alloys Adj.EBITDA ($,000)		28,620			22,494						(108	)						76,950			13,159

Manganese-based alloy revenue in the fourth quarter was $166.9 million, an increase of 38.7% over the prior quarter. Total shipments increased 26.9% due to continued recovery in global steel production, and some seasonal spillover of orders from the third quarter. During the quarter, Adjusted EBITDA from our manganese-based alloys portfolio was $28.6 million, up 27.2% over the prior quarter. In addition to the pricing and volume improvement, there was also a shift in the overall product mix which contributed to the quarterly results.

COVID-19COVID-19 has been and continues to be a complex and evolving situation, with governments, public institutions and other organizations imposing or recommending, and businesses and individuals implementing, at various times and to varying degrees, restrictions on various activities or other actions to combat its spread, such as restrictions and bans on travel or transportation; limitations on the size of in-person gatherings, restrictions on freight transportations, closures of, or occupancy or other operating limitations on work facilities, and quarantines and lock-downs.

As a result of this pandemic and the strict confinement and other public health measures taken around the world, the demand for our products in the second and third quarters of 2020 was reduced significantly compared with the first and fourth quarters of the year. During the fourth quarter of 2020, demand level for our products increased to levels similar to those prior to the outbreak. Throughout 2021, demand for our products has increased even further than in the fourth quarter of 2020; however, COVID-19 has negatively impacted, and will in the future negatively impact to an extent we are unable to predict, our revenues.

Subsequent events

On February 15, 2022, the Company announced that the Spanish Fund for supporting strategic companies, on a proposal of the Sociedad Estatal de Participaciones Industriales (“SEPI”), a Spanish state-owned industrial holding company affiliated with the Ministry of Finance and Administration, has approved €34.5 million in loans to Grupo Ferroatlántica, S.A.U. and Grupo Ferroátlantica de Servicios, S.L.U., wholly owned subsidiaries of the Company. These loans are part of the SEPI fund intended to provide assistance to non-financial companies operating in strategically important sectors within Spain in the wake of the COVID-19 pandemic.

The €34.5M is expected to be funded using a dual-tranche loan, with €17.25M maturing in February 2025 and €17.25M maturing in June 2025. €16.9M of the loan carries a fixed interest rate of 2% per annum, and interest on the remaining €17.6M is calculated as IBOR plus a spread of 2.5% in the first year, 3.5% in the second and third years and 5.0% in the fourth year, plus an additional 1.0% payable if the net result of the Beneficiaries is positive. The loans are guaranteed by the Company and certain of its subsidiaries.

Trading Update

Ferroglobe’s estimated unaudited Adjusted EBITDA for January 2022 is approximately $74 million.

Ferroglobe’s portfolio of products benefited from a strong pricing environment in January, particularly with the reset of silicon metal contracts. On the cost side, the business continues to face a number of uncertainties, some of which have been ongoing headwinds for several quarters, such as the high cost and volatility of energy in Spain and inflation across other inputs. 

Other emerging developments, such as those stemming from the conflict in Ukraine, could also impact our operations. Russia and Ukraine are meaningful producers of silicon metal, ferroalloys and manganese based alloys, and are also significant suppliers of raw materials for our business and industry.  The inability of Russian and Ukrainian producers to meet their customer obligations could potentially create tightness in the market in the immediate term. Likewise, we rely on a number of inputs from Russia and the CIS region, including metcoke, anthracite and carbon and graphite electrodes. Our inability to procure these material can adversely impact our operations.  

Management continually tracks developments in the nascent conflict in Ukraine and is committed to actively managing our response to potential distributions to the business, but can provide no assurance that the conflict in Ukraine or other ongoing headwinds will not have a material adverse effect on our business, operations and financial results. Investors should also consider the risk factors and other disclosures in our annual reports on Form 20-F and other filings with the US Securities and Exchange Commission.

Conference Call

Ferroglobe management will review the fourth quarter and full year 2021 results during a conference call at 08:30 a.m. U.S Eastern Standard Time on March 3, 2022.

The dial-in number for participants in the United States is + 1 877-870-9135 (conference ID: 7689183). International callers should dial + 44 (0)-2071-928338 (conference ID: 7689183). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/mmc/p/w3fff64p

About Ferroglobe

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.

Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Non-IFRS Measures

This document may contain summarised, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information.Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital and net debt, are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

INVESTOR CONTACT:

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

MEDIA CONTACT:

Cristina Feliu RoigExecutive Director – Communications & Public AffairsEmail: corporate.comms@ferroglobe.com

Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Income Statement(in thousands of U.S. dollars, except per share amounts)
	Quarter Ended				Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
Sales	$	569,771			$	429,210			$	320,535			$	1,778,908			$	1,144,434
Cost of sales		(371,519	)			(295,273	)			(272,603	)			(1,184,896	)			(835,486	)
Other operating income		39,619				31,447				8,100				110,085				33,627
Staff costs		(72,068	)			(50,386	)			(54,444	)			(280,917	)			(214,782	)
Other operating expense		(79,770	)			(79,785	)			(29,143	)			(289,564	)			(132,059	)
Depreciation and amortization charges, operating allowances and write-downs		(24,549	)			(23,971	)			(25,538	)			(97,328	)			(108,189	)
Impairment gain (loss)		2,227				(363	)			(39,074	)			1,867				(73,344	)
Other gain		1,149				381				824				2,206				1,449
Operating profit (loss)		64,860				11,260				(91,343	)			40,361				(184,350	)
Net finance expense		(12,445	)			(103,379	)			(19,630	)			(142,865	)			(66,791	)
Financial derivatives gain		—				—				—				—				3,168
Exchange differences		9,874				(6,180	)			7,327				(2,384	)			25,553
Profit (loss) before tax		62,289				(98,299	)			(103,646	)			(104,888	)			(222,420	)
Income tax benefit (loss)		2,789				680				(36,185	)			4,562				(21,939	)
(Loss) profit for the period from continuing operations		65,078				(97,619	)			(139,831	)			(100,326	)			(244,359	)
Loss for the period from discontinued operations		—				—				—				—				(5,399	)
Profit (loss) for the period		65,078				(97,619	)			(139,831	)			(100,326	)			(249,758	)
Profit attributable to non-controlling interest		1,242				1,023				781				4,580				3,419
Profit (loss) attributable to the parent	$	66,320			$	(96,596	)		$	(139,050	)		$	(95,746	)		$	(246,339	)
EBITDA	$	89,409			$	35,231			$	(65,805	)		$	137,689			$	(76,161	)
Adjusted EBITDA	$	92,825			$	37,592			$	5,483			$	186,575			$	32,510
Weighted average shares outstanding
Basic		187,358				179,849				169,262				176,508				169,269
Diluted		188,587				179,849				169,262				176,508				169,269
Profit (loss) per ordinary share
Basic	$	0.35			$	(0.54	)		$	(0.82	)		$	(0.54	)		$	(1.46	)
Diluted	$	0.35			$	(0.54	)		$	(0.82	)		$	(0.54	)		$	(1.46	)

Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Statement of Financial Position(in thousands of U.S. dollars)
	December 31,				September 30,			December 31
	2021				2021			2020
ASSETS
Non-current assets
Goodwill	$		29,702		$	29,702		$	29,702
Other intangible assets			101,790			89,698			20,756
Property, plant and equipment			555,485			567,876			620,034
Other non-current financial assets			4,091			5,198			5,057
Deferred tax assets			7,010			150			—
Non-current receivables from related parties			1,699			2,316			2,454
Other non-current assets			18,734			17,916			11,904
Non-current restricted cash and cash equivalents			2,272			—			—
Total non-current assets			720,783			712,856			689,907
Current assets
Inventories			289,797			284,488			246,549
Trade and other receivables			381,073			305,453			242,262
Current receivables from related parties			2,841			3,025			3,076
Current income tax assets			7,660			8,195			12,072
Other current financial assets			104			903			1,008
Other current assets			8,408			10,352			20,714
Current restricted cash and cash equivalents			—			5,996			28,843
Cash and cash equivalents			114,391			89,047			102,714
Total current assets			804,274			707,459			657,238
Total assets	$		1,525,057		$	1,420,315		$	1,347,145
EQUITY AND LIABILITIES
Equity	$		335,068		$	281,910		$	365,719
Non-current liabilities
Deferred income			895			16,275			620
Provisions			60,958			98,607			108,487
Bank borrowings			3,670			3,998			5,277
Lease liabilities			9,968			11,199			13,994
Debt instruments			404,938			405,171			346,620
Other financial liabilities			36,843			37,630			29,094
Other non-current liabilities			37,506			13,035			16,767
Deferred tax liabilities			25,145			22,868			27,781
Total non-current liabilities			579,923			608,783			548,640
Current liabilities
Provisions			137,625			109,552			55,296
Bank borrowings			95,297			86,262			102,330
Lease liabilities			8,390			9,255			8,542
Debt instruments			35,359			25,822			10,888
Other financial liabilities			24,087			24,155			34,802
Payables to related parties			9,545			9,079			3,196
Trade and other payables			206,000			194,074			149,201
Current income tax liabilities			1,775			1,464			2,538
Other current liabilities			91,988			69,959			65,993
Total current liabilities			610,066			529,622			432,786
Total equity and liabilities	$		1,525,057		$	1,420,315		$	1,347,145

Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Statement of Cash Flows
	Quarter Ended				Quarter Ended				Quarter Ended				Year Ended					Year Ended
	December 31,2021				September 30,2021				December 31,2020				December 31,2021					December 31,2020
Cash flows from operating activities:
Profit (loss) for the period	$	65,078			$	(97,619	)		$	(139,831	)		$	(100,326	)			$	(249,758	)
Adjustments to reconcile net (loss) profit to net cash used by operating activities:
Income tax (benefit) expense		(2,789	)			(680	)			36,185				(4,562	)				21,939
Depreciation and amortization charges, operating allowances and write-downs		24,549				23,971				25,538				97,328					108,189
Net finance expense		12,445				103,379				19,630				142,865					66,791
Financial derivatives loss (gain)		—				—				—				—					(3,168	)
Exchange differences		(9,874	)			6,180				(7,327	)			2,384					(25,553	)
Impairment losses		(2,227	)			363				39,074				(1,867	)				73,344
Net loss (gain) due to changes in the value of asset		(70	)			(424	)			158				(758	)				—
Bargain purchase gain		—				—				—				—					—
Gain on disposal of discontinued operation		—				—				—				—					5,399
Gain on disposal of non-current assets		—				—				—				(351	)				—
Share-based compensation		1,464				1,269				347				3,627					2,017
Other adjustments		(1,080	)			43				(8,932	)			(1,097	)				(1,450	)
Changes in operating assets and liabilities														—					—
(Increase) decrease in inventories		(11,137	)			(51,835	)			3,725				(60,296	)				114,585
(Increase) decrease in trade receivables		(83,434	)			(27,683	)			(4,731	)			(161,434	)				71,034
Increase (decrease) in trade payables		12,908				9,138				(20,359	)			64,382					(55,405	)
Other		18,792				(1,138	)			60,683				22,558					14,473
Income taxes paid		(2,918	)			359				(633	)			(3,794	)				11,831
Interest paid		—				—				—				—					—
Net cash provided (used) by operating activities		21,707				(34,677	)			3,527				(1,341	)				154,268
Cash flows from investing activities:
Interest and finance income received		23				21				13				207					630
Payments due to investments:														—
Acquisition of subsidiary		—				—				—				—					—
Other intangible assets		—				—				(2,654	)			—					(2,654	)
Property, plant and equipment		(10,480	)			(8,189	)			(11,861	)			(27,597	)				(30,257	)
Other		—				—				—				—					—
Disposals:														—					—
Disposal of subsidiaries		—				—				—				—					—
Other non-current assets		1,376				—				295				1,919					341
Other		1,623				—				—				1,623					—
Net cash (used) provided by investing activities		(7,458	)			(8,168	)			(14,207	)			(23,848	)				(31,940	)
Cash flows from financing activities:
Dividends paid		—				—				—				—					—
Payment for debt and equity issuance costs		—				(26,064	)			(2,077	)			(43,755	)				(4,540	)
Proceeds from equity issuance		—				40,000				—				40,000					—
Proceeds from debt issuance		—				20,000								60,000
Increase/(decrease) in bank borrowings:														—					—
Borrowings		221,587				159,861				169,571				659,083					177,593
Payments		(210,902	)			(158,118	)			(161,936	)			(671,467	)				(235,296	)
Proceeds from stock option exercises		—				—				—				—					—
Amounts paid due to leases		(2,617	)			(2,602	)			(2,973	)			(11,232	)				(10,315	)
Other amounts received/(paid) due to financing activities		—				—				(6,471	)			—					(2,863	)
Payments to acquire or redeem own shares		—				—				—				—					—
Interest paid		(704	)			(1,125	)			(827	)			(22,177	)				(37,912	)
Net cash (used) provided by financing activities		7,364				31,952				(4,713	)			10,452					(113,333	)
Total net cash flows for the period		21,613				(10,893	)			(15,393	)			(14,737	)				8,995
Beginning balance of cash and cash equivalents		95,043				106,089				147,425				131,557					123,175
Exchange differences on cash and cash equivalents in foreign currencies		7				(153	)			(475	)			(157	)				(613	)
Ending balance of cash and cash equivalents	$	116,663			$	95,043			$	131,557			$	116,663				$	131,557
Cash from continuing operations		114,391				89,047				102,714				114,391					102,714
Current/Non-current restricted cash and cash equivalents		2,272				5,996				28,843				2,272					28,843
Cash and restricted cash in the statement of financial position	$	116,663			$	95,043			$	131,557			$	116,663				$	131,557

 

 

Adjusted EBITDA ($,000):

	Quarter Ended				Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
Profit (loss) attributable to the parent	$	66,320			$	(96,596	)		$	(139,050	)		$	(95,746	)		$	(246,339	)
Profit (loss) for the period from discontinued operations		—				—				—				—				5,399
Profit (loss) attributable to non-controlling interest		(1,242	)			(1,023	)			(781	)			(4,580	)			(3,419	)
Income tax (benefit) expense		(2,789	)			(680	)			36,185				(4,562	)			21,939
Net finance expense		12,445				103,379				19,630				142,865				66,791
Financial derivatives loss (gain)		—				—				—				—				(3,168	)
Exchange differences		(9,874	)			6,180				(7,327	)			2,384				(25,553	)
Depreciation and amortization charges, operating allowances and write-downs		24,549				23,971				25,538				97,328				108,189
EBITDA		89,409				35,231				(65,805	)			137,689				(76,161	)
Impairment		(2,227	)			363				39,074				(1,867	)			73,344
Restructuring and termination costs		455				(9,960	)			3,772				27,368				3,770
New strategy implementation		5,188				11,273				—				22,700				—
Energy:  France		—				—				—				—				70
Staff Costs:  South Africa		—				—				—				—				158
Other Idling Costs		—				—				—				—				2,887
Pension Plan buyout		—				685				—				685
Provision Ithaka		—				—				28,442				—				28,442
Adjusted EBITDA	$	92,825			$	37,592			$	5,483			$	186,575			$	32,510

Adjusted profit attributable to Ferroglobe ($,000):

	Quarter Ended				Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
Profit (loss) attributable to the parent	$	66,320			$	(96,596	)		$	(139,050	)		$	(95,746	)		$	(246,339	)
Tax rate adjustment		(22,721	)			30,776				69,352				29,002				93,112
Impairment		(1,514	)			247				26,570				(1,270	)			49,874
Restructuring and termination costs		309				(6,773	)			2,565				18,610				2,564
New strategy implementation		3,528				7,666				—				15,436				—
Energy:  France		—				—				—				—				48
Energy: South Africa		—				—				—				—				—
Staff Costs:  South Africa		—				—				—				—				107
Other Idling Costs		—				—				—				—				1,963
Tolling agreement		—				—				—				—				—
Bargain purchase gain		—				—				—				—				—
Gain on sale of hydro plant assets		—				—				—				—				—
Share-based compensation		—				—				—				—				—
Pension Plan buyout		—				466								466
Adjusted profit (loss) attributable to the parent	$	45,922			$	(64,214	)		$	(40,563	)		$	(33,502	)		$	(98,671	)

Adjusted diluted profit per share:

	Quarter Ended				Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
Diluted profit (loss) per ordinary share	$	0.35			$	(0.54	)		$	(0.82	)		$	(0.54	)		$	(1.46	)
Tax rate adjustment		(0.13	)			0.18				0.41				0.17				0.55
Impairment		(0.01	)			0.00				0.16				(0.01	)			0.29
Restructuring and termination costs		0.00				(0.04	)			0.02				0.11				0.02
New strategy implementation		0.02				0.04				—				0.09				—
Energy:  France		—				—				—				—				0.00
Staff Costs:  South Africa		—				—				—				—				0.00
Other Idling Costs		—				—				—				—				0.01
Restructuring and termination costs		—				—				—				—				—
Tolling agreement		—				—				—				—				—
Bargain purchase gain		—				—				—				—				—
Gain on sale of hydro plant assets		—				—				—				—				—
Share-based compensation		—				—				—				—				—
Pension Plan buyout		—				0.00				—				0.00				—
Adjusted diluted profit (loss) per ordinary share	$	0.23			$	(0.36	)		$	(0.23	)		$	(0.18	)		$	(0.59	)