The following is a summary of the Ferroglobe PLC (GSM) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Ferroglobe reported strong Q2 2024 results with total sales at $451 million, up 15% from the prior quarter, and adjusted EBITDA reaching $58 million, up from $26 million, driven by strong pricing and sales volumes.

• Increased volume and pricing in silicon metal contributed significantly, with revenue from this segment up 22% to $204 million. Adjusted EBITDA for silicon metal was $35 million, a 115% increase over the previous quarter.

• Despite overall revenue increase, silicon-based alloys saw a revenue decline to $105 million, down 6%, while manganese-based alloys revenue was up 48% to $98 million; both segments were affected by market conditions and pricing strategies.

• Operating cash flow stood at $2 million, while free cash flow was consumed by $30 million primarily due to inventory buildups as operations restarted in France and additional purchases in anticipation of price increases for manganese ore.

Business Progress:

• Ferroglobe has achieved significant advancements in EV battery technology through its partnership with Coreshell, leading to a silicon-rich anode that significantly reduces cost, speeds up charging, and increases range.

• The company is engaged with approximately 70 EV battery companies to develop silicon-based technologies.

• Commissioning of a pilot plant for larger scale battery production is scheduled for Q4, with OEM tests expected in early 2025.

Opportunities:

• Regulatory decisions on anti-dumping and countervailing duties offer Ferroglobe the potential to expand its market share significantly starting in early 2025 once supply channel inventories deplete.

• Advances in EV battery technology and testing at OEMs provide new business avenues and potential growth in battery markets for the company.

Risks:

• The company anticipates weaker demand in Q4 across several market segments including aluminum, foundry, steel sectors which could impact financial performance. Additionally, idling of operations in France expected to further affect results in Q4.

• Current economic uncertainties and market conditions are expected to keep demand for steel and other key products soft, affecting overall company performance in H2 of the year.

More details: Ferroglobe IR

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