SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the Month of December, 2021

 

Commission File Number: 001-37668

 

FERROGLOBE PLC

(Name of Registrant)

5 Fleet Place

London, EC4M7RD

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F 

Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):     

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):     

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes 

No  

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  N/A

 



This Form 6-K consists of the following materials, which appear immediately following this page:

Press release dated March 2, 2022 announcing results for the quarter and year ended December 31, 2021
Fourth quarter and full year 2021 earnings call presentation


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

Date: March 2, 2022

  

FERROGLOBE PLC

 

 

 

 

by

/s/ Marco Levi

 

 

Name: Marco Levi

 

 

Title: Chief Executive Officer (Principal Executive Officer)


Ferroglobe Reports Results for the Fourth Quarter and Full Year 2021

Highest quarterly revenues since 2018 and record quarterly Adjusted EBITDA

LONDON, March 2, 2022 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announced 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 Months Ended

Twelve Months Ended

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 Months Ended

Twelve Months Ended

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 Months Ended

Twelve Months Ended

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-19


COVID-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 result before taxes of the Beneficiaries is positive.  The loans are guaranteed by the Company and certain of its subsidiaries.  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 Mehta
Executive Vice President – Investor Relations 
Email:   
investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu Roig

Executive Director – Communications & Public Affairs

Email:   corporate.comms@ferroglobe.com


Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Income Statement

(in thousands of U.S. dollars, except per share amounts)

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)

Loss 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 Subsidiaries

Unaudited 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 Subsidiaries

Unaudited 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)