Home / Top News / Ferroglobe Reports Results for the Third Quarter of 2020

Ferroglobe Reports Results for the Third Quarter of 2020

Sales of $262.7 million; Net loss of $(46.8) million; Adjusted EBITDA of $22.2 million

  • Q3 sales of $262.7 million compared to $250.0 million in Q2 2020, and $381.7 million in Q3 2019
  • Adjusted EBITDA of $22.2 million compared to $22.4 million in Q2 2020 and $(7.2) million in Q3 2019
  • Q3 net loss of $(46.8) million compared to $(14.0) million in Q2 2020, and $(140.1) million in Q3 2019. Q3 net loss includes a property, plant and equipment impairment charge of $34.3 million
  • Gross debt of $442 million at the end of Q3 2020, compared to $451 million at the end of Q2 2020
  • Positive operating cash flow of $23.0 million, partially offset by the senior unsecured notes coupon payment of $(16.4) million and partial ABL paydown of $(7.8) million
  • Successful refinancing of the prior accounts receivable securitization program on October 2, 2020 with the signing of a new factoring program, providing an improvement in financial terms and cash release at closing

LONDON, Nov. 23, 2020 (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 third quarter of 2020.

Q3 2020 Earnings Highlights

In Q3 2020, Ferroglobe posted a net loss of $(46.8) million, or $(0.28) per share on a fully diluted basis. On an adjusted basis, the Q3 2020 net loss was $(9.3) million, or $(0.14) per share on a fully diluted basis.

Q3 2020 reported EBITDA was $(12.2) million, down from $22.1 million in the prior quarter. On an adjusted basis, Q3 2020 EBITDA was $22.2 million, down slightly from Q2 2020 adjusted EBITDA of $22.4 million. The Company reported an adjusted EBITDA margin of 8.5% for Q3 2020, compared to an adjusted EBITDA margin of 9.0% for Q2 2020.

                               
       Quarter Ended      Quarter Ended   Quarter Ended   Nine Months Ended      Nine Months Ended
$,000 (unaudited)   September 30, 2020   June 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
                               
Sales   $ 262,673     $ 250,004     $ 381,745     $ 823,899     $ 1,238,615  
Net (loss) profit   $ (46,834 )   $ (14,035 )   $ (140,139 )   $ (109,927 )   $ (212,351 )
Diluted EPS   $ (0.28 )   $ (0.07 )   $ (0.83 )   $ (0.63 )   $ (1.23 )
Adjusted net (loss) income attributable to the parent   $ (9,332 )   $ (11,064 )   $ (16,084 )   $ (58,108 )   $ (60,200 )
Adjusted diluted EPS   $ (0.14 )   $ (0.07 )   $ (0.10 )   $ (0.35 )   $ (0.36 )
Adjusted EBITDA   $ 22,231     $ 22,413     $ (7,210 )   $ 27,027     $ 1,152  
Adjusted EBITDA margin     8.5 %     9.0 %     -1.9 %     3.3 %     0.1 %

Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “The third quarter results are a confirmation of the swift actions we have been taking throughout the year to address the unpredictable circumstances created by COVID-19.  By aligning our cost structure with changes in market conditions this quarter’s financial performance remained stable.”  Dr. Levi added, “We continue to seek ways to bolster our agility in the face of the pandemic to ensure the company is well capitalized and positioned for a market recovery.  Our new strategic plan focuses on elements within our control and aims to improve our overall competitiveness.  During the quarter we made significant progress setting the foundation throughout the organization and have started on the execution of specific initiatives across various functional areas.”

Cash Flow and Balance Sheet

Cash generated from operations during Q3 2020 was $23.0 million, including $33 million in respect the sale of CO2 emission rights.

Working capital increased by $33 million, from $321 million as of June 30, 2020 to $354 million at September 30, 2020. The increase is mainly driven by a reduction in accounts payable and strengthening of the Euro relative to the US Dollar.

Gross debt was $442 million as of September 30, 2020, down from $451 million as of June 30, 2020, primarily as a result of the senior unsecured notes coupon payment and partial ABL paydown, partially offset by COVID-19 funding supported by local governments in France and Canada.

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “Given the challenging market backdrop and lingering uncertainty we remain focused on cash generation and preservation.   We are making adjustments throughout the business to ensure a sustainable level of cash to support our operations and have managed this through a number of initiatives, including a successful refinancing of the prior accounts receivables securitization program.  At the same time we continued to reduce our debt balance during the quarter.”  Ms. García-Cos added, “The new strategic plan supports our focus on further cost reduction and improvement in cash conversion, while accelerating the Company’s return to profitability.”

COVID-19

Since January 2020, the COVID-19 pandemic has spread to various jurisdictions where the Company does business. The Company has been monitoring the evolving situation, and consequent emerging risk. Among other steps, the Company has implemented a coronavirus crisis management team, which has been meeting regularly to ensure the Company and its subsidiaries take appropriate action to protect all employees and ensure business continuity.

During the third quarter demand for our products was adversely impacted by COVID-19. It is difficult to forecast all the impacts of the COVID-19 pandemic, and such impacts might have a material adverse effect on our business, results of operations and financial condition. The Company is continuously evaluating how evolving customer demand and sales price evolution stand to affect the Company’s business and results in the next twelve months.

In connection with the preparation of our consolidated financial statements, we conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raise substantial doubt as to the Company’s ability to continue as a going concern in the one year period after the date of the issuance of these interim financial statements. For this interim financial statement, the evaluation was updated. Given the speed and frequency of continuously evolving developments with respect to this pandemic and the uncertainties this may bring for the Company and the demand for its products, it is difficult to forecast the level of trading activity and hence cash flow in the next twelve months. Developing a reliable estimate of the potential impact on the results of operations and cash flow at this time is difficult as markets and industries react to the pandemic and the measures implemented in response to it, but our downside scenario analysis supports an expectation that the Company will have cash headroom to continue to operate throughout the next twelve months.

Additionally, the indenture governing the senior unsecured notes includes provisions which, in the event of a change of control, would require the Company to offer to redeem the outstanding senior unsecured notes at a cash purchase price equal to 101% of the principal amount of the senior unsecured notes, plus any accrued and unpaid interest. Based on the provisions cited above, a change of control as defined in the indenture is unlikely to occur, but the matter it is not within the Company’s control. If a change of control were to occur, the Company may not have sufficient financial resources available to satisfy all of its obligations. Management is pursuing additional sources of financing to increase liquidity to fund operations.

Subsequent events

On October 2, 2020, the Company signed a factoring agreement, replacing the prior accounts receivables securitization program. At closing, there was cash release of $19.7 million from restricted cash relating to a special purpose vehicle under prior securitization program.

On November 1, 2020, the Company announced the appointment of Thomas Wiesner as Chief Legal Officer. Subsequently, Mr. Wiesner was also appointed as the Secretary to the Board of Directors.

On November 16, 2020, the Tribunal Superior de Justicia of Galicia dismissed FerroAtlántica’s claim of petition to separate the metallurgical plants of Cee and Dumbria from the related hydroelectric power plants. According to applicable law, this judgment can be appealed before the Spanish Supreme Court.

Discussion of Third Quarter 2020 Results

The Company has concluded that there are indications for potential impairment of goodwill property, plant and equipment and deferred tax assets. During the third quarter, the Company registered an impairment relating to the Niagara Falls facility as there are no plans to restart production. The Company is conducting, the rest of its impairment analysis and as such further material impairment relating to goodwill and/or the remaining property, plant and equipment and deferred tax assets could be identified and recorded subsequently.  The financial results presented for the third quarter and year to date as of September 30, 2020 are unaudited and may be subsequently adjusted for items including impairment of goodwill and/or property, plant and equipment.

Sales

Sales for Q3 2020 were $262.7 million, an increase of 5.1% compared to $250.0 million in Q2 2020. For Q3 2020, total shipments were up 3.5% and the average selling price was down 0.1% compared with Q2 2020.

                                           
       Quarter Ended      Quarter Ended          Quarter Ended       Nine Months Ended      Nine Months Ended    
    September 30, 2020   June 30, 2020   Change   September 30, 2019   Change   September 30, 2020   September 30, 2019   Change
Shipments in metric tons:                                          
Silicon Metal     51,215     47,884   7.0 %     60,225   -15.0 %     152,420     176,578   -13.7 %
Silicon-based Alloys     42,449     39,479   7.5 %     69,879   -39.3 %     142,860     230,944   -38.1 %
Manganese-based Alloys     53,980     55,290   -2.4 %     93,996   -42.6 %     182,995     297,221   -38.4 %
Total shipments*     147,644     142,653   3.5 %     224,100   -34.1 %     478,275     704,743   -32.1 %
                                           
Average selling price ($/MT):                                          
Silicon Metal   $ 2,248   $ 2,215   1.5 %   $ 2,175   3.3 %   $ 2,225   $ 2,284   -2.6 %
Silicon-based Alloys   $ 1,534   $ 1,537   -0.2 %   $ 1,490   3.0 %   $ 1,510   $ 1,582   -4.6 %
Manganese-based Alloys   $ 1,009   $ 1,088   -7.2 %   $ 1,140   -11.5 %   $ 1,019   $ 1,167   -12.7 %
Total*   $ 1,590   $ 1,591   -0.1 %   $ 1,527   4.1 %   $ 1,550   $ 1,583   -2.1 %
                                           
Average selling price ($/lb.):                                          
Silicon Metal   $ 1.02   $ 1.00   1.5 %   $ 0.99   3.3 %   $ 1.01   $ 1.04   -2.6 %
Silicon-based Alloys   $ 0.70   $ 0.70   -0.2 %   $ 0.68   3.0 %   $ 0.68   $ 0.72   -4.6 %
Manganese-based Alloys   $ 0.46   $ 0.49   -7.2 %   $ 0.52   -11.5 %   $ 0.46   $ 0.53   -12.7 %
Total*   $ 0.72   $ 0.72   0.0 %   $ 0.69   4.1 %   $ 0.70   $ 0.72   -2.1 %

* Excludes by-products and other

Sales Prices & Volumes By Product

During Q3 2020, total product average selling prices decreased by 0.1% versus Q2 2020. Q3 average selling prices of silicon metal increased 1.5%, silicon-based alloys prices decreased 0.2%, and manganese-based alloys prices decreased 7.2%.

Sales volumes in Q3 declined by 3.5% versus the prior quarter. Q3 sales volumes of silicon metal increased 7.0%, silicon-based alloys increased 7.5%, and manganese-based alloys decreased 2.4% versus Q2 2020.

Cost of Sales

Cost of sales was $166.2 million in Q3 2020, an increase from $153.3 million in the prior quarter. Cost of sales as a percentage of sales increased to 63.3% in Q3 2020 versus 61.3% for Q2 2020, the increase is mainly due to higher sales volume, lower sales prices, higher energy prices in Europe, lower fixed cost absorption due to decreased production levels and the negative impact of a planned plant shutdown in Spain.

Other Operating Expenses

Other operating expenses amounted to $26.9 million in Q3 2020, a decrease from $36.0 million in the prior quarter. This decrease is primarily attributable to a reduction in consultant fees and removal of the financial liabilities registered in Photosil by $5 million.

Net Loss Attributable to the Parent

In Q3 2020, net loss attributable to the Parent was $47.3 million, or $(0.28) per diluted share, compared to a net loss attributable to the Parent of $12.1 million, or $(0.07) per diluted share in Q2 2020.

Adjusted EBITDA

In Q3 2020, adjusted EBITDA was $22.2 million, or 8.5% of sales, compared to adjusted EBITDA of $22.4 million, or 9.0% of sales in Q2 2020, primarily due to price stability and higher costs incurred in Q3 2020.

Conference Call

Ferroglobe management will review the third quarter during a conference call at 9:00 a.m. Eastern Time on November 24, 2020.

The dial-in number for participants in the United States is 8772935491 (conference ID 9939707). International callers should dial +1 9144958526 (conference ID 9939707). 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/itnuz76f

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

Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital and net debt, are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important 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
EVP – Investor Relations 
Email:   [email protected]

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      Nine Months Ended   Nine Months Ended
       September 30, 2020      June 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Sales    $ 262,673      $ 250,004     $ 381,745     $ 823,899     $ 1,238,615  
Cost of sales      (166,231 )      (153,291 )     (277,692 )     (562,882 )     (899,492 )
Other operating income      7,598        10,160       13,215       25,526       41,766  
Staff costs      (56,329 )      (48,912 )     (72,536 )     (160,338 )     (221,651 )
Other operating expense      (26,896 )      (35,953 )     (50,060 )     (102,915 )     (166,901 )
Depreciation and amortization charges, operating allowances and write-downs      (26,524 )      (27,459 )     (29,591 )     (82,651 )     (90,165 )
Impairment losses     (34,269 )           (174,018 )     (34,269 )     (175,353 )
Other gain (loss)     1,212       85       (3,774 )     625       (3,896 )
Operating (loss) profit     (38,766 )     (5,365 )     (212,711 )     (93,005 )     (277,077 )
Net finance expense      (13,985 )      (16,693 )     (16,491 )     (47,162 )     (45,361 )
Financial derivatives (loss) gain                 2,913       3,168       3,882  
Exchange differences      13,157        2,633       (5,083 )     18,226       (1,482 )
(Loss) profit before tax      (39,594 )      (19,425 )     (231,372 )     (118,773 )     (320,038 )
Income tax benefit (expense)      (1,841 )      5,390       14,322       14,245       27,422  
(Loss) profit for the period from continuing operations     (41,435 )     (14,035 )     (217,050 )     (104,528 )     (292,616 )
Profit for the period from discontinued operations     (5,399 )           76,911       (5,399 )     80,265  
(Loss) profit for the period     (46,834 )     (14,035 )     (140,139 )     (109,927 )     (212,351 )
Loss (profit) attributable to non-controlling interest      (450 )      1,928       (385 )     2,638       4,174  
(Loss) profit attributable to the parent    $ (47,284 )    $ (12,107 )   $ (140,524 )   $ (107,289 )   $ (208,177 )
                                 
                               
EBITDA   $ (12,242 )   $ 22,093     $ (183,120 )   $ (10,354 )   $ (186,912 )
Adjusted EBITDA   $ 22,231     $ 22,413     $ (7,210 )   $ 27,027     $ 1,152  
                               
Weighted average shares outstanding                              
Basic     169,261       169,254       169,123       169,261       169,123  
Diluted     169,261       169,254       169,123       169,261       169,123  
                               
(Loss) profit per ordinary share                              
Basic   $ (0.28 )   $ (0.07 )   $ (0.83 )   $ (0.63 )   $ (1.23 )
Diluted   $ (0.28 )   $ (0.07 )   $ (0.83 )   $ (0.63 )   $ (1.23 )

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)

                     
    September 30,   June 30,   December 31,
       2020      2020      2019
ASSETS
Non-current assets                    
Goodwill   $   29,702   $ 29,702   $ 29,702
Other intangible assets       18,876     45,655     51,267
Property, plant and equipment       640,211     677,081     740,906
Other non-current financial assets       6,227     6,404     2,618
Deferred tax assets       50,939     43,102     59,551
Non-current receivables from related parties       2,343     2,240     2,247
Other non-current assets       4,960     4,228     1,597
Non-current restricted cash and cash equivalents       28,551     28,366     28,323
Total non-current assets       781,809     836,778     916,211
Current assets                    
Inventories       311,269     305,438     354,121
Trade and other receivables       179,432     172,036     309,064
Current receivables from related parties       3,055     2,955     2,955
Current income tax assets       11,264     12,151     27,930
Other current financial assets       2,360     4,791     5,544
Other current assets       18,199     22,602     23,676
Cash and cash equivalents *       118,874     124,876     94,852
Total current assets       644,453     644,849     818,142
Total assets   $   1,426,262   $ 1,481,627   $ 1,734,353
                     
EQUITY AND LIABILITIES
Equity   $   483,487   $ 519,974   $ 602,297
Non-current liabilities                    
Deferred income       7,454     4,983     1,253
Provisions       84,779     81,659     84,852
Bank borrowings       31,958     92,552     144,388
Lease liabilities       12,655     13,512     16,972
Debt instruments       345,941     345,284     344,014
Other financial liabilities       32,554     33,316     43,157
Other non-current liabilities       16,678     25,785     25,906
Deferred tax liabilities       47,633     40,162     74,057
Total non-current liabilities       579,652     637,252     734,599
Current liabilities                    
Provisions       38,121     37,367     46,091
Bank borrowings       59,318     245     14,611
Lease liabilities       7,960     8,592     8,900
Debt instruments       2,697     10,994     10,937
Other financial liabilities       28,016     26,318     23,382
Payables to related parties       4,162     2,056     4,830
Trade and other payables       136,371     156,053     189,229
Current income tax liabilities       140     2,146     3,048
Other current liabilities       86,338     80,630     96,429
Liabilities associated with assets classified as held for sale              
Total current liabilities       363,123     324,401     397,457
Total equity and liabilities   $   1,426,262   $ 1,481,627   $ 1,734,353

*Cash and cash equivalents at September 30, 2020 includes the cash balance of the group’s European A/R securitization program of $41,016 ($38,961 and $38,778 at June 30, 2020 and December 31, 2019, respectively)

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars)

                                   
    Quarter Ended      Quarter Ended      Quarter Ended *     Nine Months Ended     Nine Months Ended *
       September 30, 2020   June 30, 2020   September 30, 2019     September 30, 2020     September 30, 2019
Cash flows from operating activities:                                  
(Loss) profit for the period   $ (46,834 )   $ (14,035 )   $ (140,139 )     $ (109,926 )     $ (212,351 )
Adjustments to reconcile net (loss) profit
to net cash used by operating activities:
                                 
Income tax (benefit) expense     1,841       (5,390 )     (14,489 )       (14,245 )       (26,408 )
Depreciation and amortization charges,
operating allowances and write-downs
    26,524       27,459       29,591         82,651         92,995  
Net finance expense     13,985       16,693       20,893         47,162         51,794  
Financial derivatives loss (gain)                 (2,913 )       (3,168 )       (3,882 )
Exchange differences     (13,157 )     (2,633 )     5,083         (18,226 )       1,482  
Impairment losses     34,269             174,018         34,269         175,353  
Net loss (gain) due to changes in the value of asset                                  
Bargain purchase gain                                  
Gain on disposal of discontinued operation     5,399             (80,729 )       5,399         (80,729 )
Share-based compensation     323       704       1,015         1,749         3,280  
Other adjustments     (8,774 )     (85 )     3,774         (8,188 )       3,896  
Changes in operating assets and liabilities                                  
(Increase) decrease in inventories     3,725       (12,471 )     5,953         42,831         (40,962 )
(Increase) decrease in trade receivables     (4,731 )     45,537       5,568         124,638         1,623  
Increase (decrease) in trade payables     (20,359 )     (4,875 )     (10,693 )       (50,738 )       (12,035 )
Other     31,410       (16,287 )     (59,689 )       3,525         (21,430 )
Income taxes paid     (633 )     3,522       (846 )       13,008         (3,066 )
Net cash provided (used) by operating activities     22,988       38,139       (63,603 )       150,741         (70,440 )
Cash flows from investing activities:                                  
Interest and finance income received     278       85       626         617         1,502  
Payments due to investments:                                  
Acquisition of subsidiary                 9,088                 9,088  
Other intangible assets                                 (184 )
Property, plant and equipment     (8,734 )     (5,056 )     (6,269 )       (18,396 )       (26,845 )
Other                                 (627 )
Disposals:                                  
Disposal of subsidiaries                 171,058                 171,058  
Other non-current assets     46                     46          
Other                 19                 3,416  
Net cash (used) provided by investing activities     (8,410 )     (4,971 )     174,522         (17,733 )       157,408  
Cash flows from financing activities:                                  
Dividends paid                                  
Payment for debt issuance costs     (608 )     (279 )     (2,093 )       (2,463 )       (2,798 )
Repayment of hydro leases                 (55,352 )               (55,352 )
Repayment of other financial liabilities                                  
Increase/(decrease) in bank borrowings:                                  
Borrowings     8,022                     8,022         71,499  
Payments     (7,800 )     (20,680 )     (21,038 )       (73,360 )       (60,101 )
Proceeds from stock option exercises                                  
Amounts paid due to leases     (2,463 )     (2,418 )             (7,342 )       (22,268 )
Other amounts received/(paid) due to financing activities                 (9,324 )       3,608          
Payments to acquire or redeem own shares                                  
Interest paid     (17,130 )     (1,131 )     (18,713 )       (37,085 )       (40,562 )
Net cash (used) provided by financing activities     (19,979 )     (24,508 )     (106,520 )       (108,620 )       (109,582 )
Total net cash flows for the period     (5,401 )     8,660       4,399         24,388         (22,614 )
Beginning balance of cash and cash equivalents     153,242       144,489       188,045         123,175         216,647  
Exchange differences on cash and
cash equivalents in foreign currencies
    (416 )     93       (4,401 )       (138 )       (5,990 )
Ending balance of cash and cash equivalents   $ 147,425     $ 153,242     $ 188,043       $ 147,425       $ 188,043  
Cash from continuing operations     118,874       124,876       177,154         118,874         177,154  
Non-current restricted cash and cash equivalents     28,551       28,366       10,889         28,551         10,889  
Cash and restricted cash in the statement of financial position   $ 147,425     $ 153,242     $ 188,043       $ 147,425       $ 188,043  

* While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a more fair presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities.

Adjusted EBITDA ($,000):

                               
    Quarter Ended      Quarter Ended      Quarter Ended   Nine Months Ended   Nine Months Ended
       September 30, 2020   June 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
(Loss) profit attributable to the parent   $ (47,284 )   $ (12,107 )   $ (140,524 )   $ (107,289 )   $ (208,177 )
(Loss) profit for the period from discontinued operations     5,399             (76,911 )     5,399       (80,265 )
Loss (profit) attributable to non-controlling interest     450       (1,928 )     385       (2,638 )     (4,174 )
Income tax (benefit) expense     1,841       (5,390 )     (14,322 )     (14,245 )     (27,422 )
Net finance expense     13,985       16,693       16,491       47,162       45,361  
Financial derivatives loss (gain)                 (2,913 )     (3,168 )     (3,882 )
Exchange differences     (13,157 )     (2,633 )     5,083       (18,226 )     1,482  
Depreciation and amortization charges, operating allowances and write-downs     26,524       27,459       29,591       82,651       90,165  
EBITDA     (12,242 )     22,093       (183,120 )     (10,354 )     (186,912 )
Impairment     34,269             174,008       34,269       174,008  
Revaluation of biological assets                 1,080             1,080  
Contract termination costs                             9,260  
Restructuring and termination costs                             2,894  
Energy:  France           (55 )           70        
Energy: South Africa                              
Staff Costs:  South Africa                       155        
Other Idling Costs     204       375             2,887        
(Loss)profit on disposal of non-core businesses                 822             822  
Adjusted EBITDA   $ 22,231     $ 22,413     $ (7,210 )   $ 27,027     $ 1,152  

Adjusted profit attributable to Ferroglobe ($,000):

                               
    Quarter Ended      Quarter Ended      Quarter Ended   Nine Months Ended      Nine Months Ended
       September 30, 2020   June 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
(Loss) profit attributable to the parent   $ (47,284 )   $ (12,107 )   $ (140,524 )   $ (107,289 )   $ (208,177 )
Tax rate adjustment     14,511       826       59,717       23,761       74,990  
Impairment     23,303             118,325       23,303       118,325  
Revaluation of biological assets                 734             734  
Contract termination costs                             6,297  
Restructuring and termination costs                             1,968  
Energy:  France           (37 )           48        
Energy: South Africa                              
Staff Costs:  South Africa                       105        
Other Idling Costs     139       255             1,963        
(Loss) profit on disposal of non-core businesses                 (54,337 )           (54,337 )
Adjusted (loss) profit attributable to the parent   $ (9,332 )   $ (11,064 )   $ (16,084 )   $ (58,108 )   $ (60,200 )

Adjusted diluted profit per share:

                               
    Quarter Ended      Quarter Ended      Quarter Ended   Nine Months Ended      Nine Months Ended
       September 30, 2020   June 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Diluted (loss) profit per ordinary share   $ (0.28 )   $ (0.07 )   $ (0.83 )   $ (0.63 )   $ (1.23 )
Tax rate adjustment           0.00       0.35       0.14       0.44  
Impairment     0.14             0.70       0.14       0.70  
Revaluation of biological assets                 0.00             0.00  
Contract termination costs                             0.04  
Restructuring and termination costs                             0.01  
Energy:  France           (0.00 )           0.00        
Energy: South Africa                              
Staff Costs:  South Africa                       0.00        
Other Idling Costs     0.00       0.00             0.01        
(Loss) profit on disposal of non-core businesses                 (0.32 )           (0.32 )
Adjusted diluted (loss) profit per ordinary share   $ (0.14 )   $ (0.07 )   $ (0.10 )   $ (0.35 )   $ (0.36 )

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: November 23, 2020
   FERROGLOBE PLC
     
  by /s/ Marco Levi
    Name: Marco Levi
    Title: Chief Executive Officer (Principal Executive Officer)

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