The following is a summary of the Ferroglobe PLC (GSM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ferroglobe reported Q1 sales of $392 million, a 4% increase primarily driven by volume increases in all three business segments.
Adjusted EBITDA for Q1 was $26 million, down from $60 million in the previous quarter.
The company went from a net debt of $101 million to a net cash positive position of $79 million, largely due to the redemption of the remaining $150 million of senior secured notes.
A quarterly dividend of $0.13 per share was paid in March, with a similar dividend declared for June.
The company generated a strong free cash flow of $180 million, mainly due to a $155 million rebate for French energy and $17 million from working capital.
Business Progress:
Ferroglobe has restarted operations in France and is running all three silicon metal furnaces in Spain due to advantageous energy prices from robust renewable energy generation.
A permit application is being processed to expand silicon metal production to meet growth in the solar and EV battery markets.
An MOU has been signed with advanced battery solution company Coreshell, to help shift the battery anode industry from graphite to silicon metal.
A trade case against ferrosilicon imports from Russia, Kazakhstan, Malaysia, and Brazil, was won, with the U.S. International Trade Commission voting in favor of the company.
The company is experiencing a surge in U.S. market demand, despite a decrease in demand and mixed pricing trends in Europe.
Ferroglobe anticipates higher sales volumes in Q2 following plant restarts in France.
Strategic discussions with various partners concerning batteries are ongoing, particularly in the U.S. and Europe.
Investment in Coreshell is in progress, with significant growth expected within three years.
Plans are in motion to expand and grow in the silicon metal sector, with a positive outlook in the solar and lithium-ion battery markets.
More details: Ferroglobe IR
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