Ferroglobe PLC (NASDAQ:GSM) Q3 2024 Earnings Conference Call November 7, 2024 8:30 AM ET

Company Participants

Alex Rotonen - Vice President of Investor Relations
Marco Levi - Chief Executive Officer
Beatriz Garcia-Cos - Chief Financial Officer

Conference Call Participants

Lucas Pipes - B. Riley
Martin Englert - Seaport Research

Alex Rotonen

Thanks, Marvi. Good morning, everyone, and thank you for joining Ferroglobe's Third Quarter 2024 Conference Call. I want to apologize for the delay. Our operator had technical issues with their phone line so we apologize. Joining me today are Marco Levi, our Chief Executive Officer; and Beatriz Garcia-Cas, our Chief Financial Officer. Before we get started with some prepared remarks, I'm going to read a brief statement. Please turn to Slide 2 at this time.

Statements made by management during this conference call that are forward-looking are based on current expectations. Factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and the exhibit to those filings, which are available on our website at ferroglobe.com.

In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, adjusted net debt, and adjusted diluted earnings per share, among other non-IFRS measures. Reconciliations of non-IFRS measures may be found in our most recent SEC filings.

Marco?

Marco Levi

Thank you, Alex. Thanks for joining us on the call today. We appreciate your interest in Ferroglobe. Q3 was another solid quarter. We reported adjusted EBITDA of $60 million, up from $58 million in the prior quarter, driven by higher realized pricing, improved spreads in manganese alloys and lower energy costs. On contracted volumes, prices usually lag indexes by two or three months, depending on the product. However, end market demand remains muted and pricing continues to soften, which as discussed last quarter will put pressure on our fourth quarter results.

Given our results to date and current outlook, we are reaffirming 2024 guidance of $150 million to $170 million. We expect to benefit from improved ferrosilicon volumes and prices in the US, as a result of the ferrosilicon trade cases we initiated earlier this year. This favorable decision by the US Department of Commerce resulted in duties on all ferrosilicon imports from Russia, Kazakhstan, Malaysia and Brazil.

More specifically, in June, the US imposed anti-dumping and countervailing of duties of 283% and 748% respectively on all ferrosilicon imports from Russia. For Brazil, Kazakhstan and Malaysia, preliminary anti-dumping duties up to 22%, 6% and 9%, respectively were announced on November 1. These actions will greatly reduce the imports of artificially low price ferrosilicon and level the playing field benefiting local producers such as Ferroglobe.