[Q1 2025 Financial & Operational Highlights](index=4&type=section&id=Ferroglobe%20Reports%20First%20Quarter%202025%20Financial%20Results) This section provides an overview of Ferroglobe's financial and operational performance in Q1 2025, highlighting key results and management's perspective [Overall Performance Summary](index=4&type=section&id=First%20Quarter%20Highlights) Ferroglobe reported a challenging first quarter with a net loss of $66.5 million and a negative Adjusted EBITDA of $(26.8) million, which was in line with the company's budget Q1 2025 Financial Highlights | Financial Highlights | Q1 2025 | Q4 2024 | % Q/Q | Q1 2024 | % Y/Y | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales ($M) | $307.2 | $367.5 | (16.4)% | $391.9 | (21.6)% | | Net loss attributable to the parent ($M) | $(66.5) | $(28.1) | (136.3)% | $(2.0) | (3184.7)% | | Adj. EBITDA ($M) | $(26.8) | $9.8 | (372.2)% | $25.8 | (203.9)% | | Adjusted diluted EPS ($) | $(0.20) | $0.03 | (849.2)% | $(0.00) | (4872.9)% | | Operating cash flow ($M) | $19.4 | $32.1 | (39.6)% | $198.0 | (90.2)% | | Free cash flow ($M) | $5.1 | $14.1 | (64.2)% | $179.8 | (97.2)% | - The company is maintaining its full-year 2025 Adjusted EBITDA guidance of **$100-$170 million**[7](index=7&type=chunk)[47](index=47&type=chunk)[85](index=85&type=chunk) - CEO Dr. Marco Levi stated that the negative first-quarter adjusted EBITDA was in line with the budget and anticipates significant improvement from the second quarter forward, believing the market is at or near a trough[8](index=8&type=chunk)[9](index=9&type=chunk) - Key operational achievements include generating **$5.1 million** of free cash flow, receiving a favorable final decision in the U.S. ferrosilicon case, increasing the quarterly dividend by **8%**, and repurchasing **720,008 shares**[11](index=11&type=chunk) [Consolidated Sales Analysis](index=4&type=section&id=Consolidated%20Sales) In Q1 2025, Ferroglobe's sales were $307.2 million, a significant decrease of 16.4% quarter-over-quarter and 21.6% year-over-year - Q1 2025 sales of **$307.2 million** were down **16.4%** from Q4 2024 and **21.6%** from Q1 2024[10](index=10&type=chunk) - Compared to the prior quarter, sales of silicon metal and manganese-based alloys declined by **$56.7 million** and **$4.0 million**, respectively, while silicon-based alloys sales increased by **$5.8 million**[12](index=12&type=chunk) [Segment Performance Analysis](index=5&type=section&id=Product%20Category%20Highlights) This section details the financial performance of Ferroglobe's key product segments, including Silicon Metal, Silicon-Based Alloys, and Manganese-Based Alloys, for Q1 2025 [Silicon Metal](index=5&type=section&id=Silicon%20Metal) The Silicon Metal segment experienced a significant downturn in Q1 2025, with revenue falling 35.2% quarter-over-quarter to $104.6 million Silicon Metal Performance (Q1 2025 vs. Q4 2024) | Metric | Q1 2025 | Q4 2024 | % Q/Q | | :--- | :--- | :--- | :--- | | Shipments (MT) | 36,308 | 49,797 | (27.1)% | | Avg. Selling Price ($/MT) | $2,881 | $3,240 | (11.1)% | | Revenue ($'000) | $104,603 | $161,342 | (35.2)% | | Adj. EBITDA ($'000) | $(15,447) | $16,849 | (191.7)% | | Adj. EBITDA Margin | (14.8)% | 10.4% | - | - The decrease in Adjusted EBITDA margin was attributed to lower prices, volume declines, reduced fixed cost absorption, and higher energy costs[13](index=13&type=chunk) - Outlook: Management believes Q1 likely marked the trough for the year, expects Q2 volumes to increase significantly, and anticipates benefits from the U.S. silicon metal trade case and EU safeguards[58](index=58&type=chunk) [Silicon-Based Alloys](index=5&type=section&id=Silicon-Based%20Alloys) Silicon-based alloy revenue rose 6.8% to $90.9 million in Q1 2025, driven by an 8.7% increase in shipment volumes due to higher demand in the US Silicon-Based Alloys Performance (Q1 2025 vs. Q4 2024) | Metric | Q1 2025 | Q4 2024 | % Q/Q | | :--- | :--- | :--- | :--- | | Shipments (MT) | 42,864 | 39,417 | 8.7% | | Avg. Selling Price ($/MT) | $2,120 | $2,159 | (1.8)% | | Revenue ($'000) | $90,872 | $85,101 | 6.8% | | Adj. EBITDA ($'000) | $2,414 | $3,093 | (22.0)% | | Adj. EBITDA Margin | 2.7% | 3.6% | - | - Outlook: The company is seeing initial positive impacts from trade cases, with U.S. FeSi index prices increasing **17%** through April, and expects market improvement to accelerate with potential EU safeguard implementation[63](index=63&type=chunk) [Manganese-Based Alloys](index=5&type=section&id=Manganese-Based%20Alloys) Manganese-based alloy revenue decreased by 5.1% to $74.5 million in Q1 2025, as a 4.4% drop in average selling prices overshadowed nearly flat shipment volumes Manganese-Based Alloys Performance (Q1 2025 vs. Q4 2024) | Metric | Q1 2025 | Q4 2024 | % Q/Q | | :--- | :--- | :--- | :--- | | Shipments (MT) | 67,229 | 67,712 | (0.7)% | | Avg. Selling Price ($/MT) | $1,108 | $1,159 | (4.4)% | | Revenue ($'000) | $74,490 | $78,478 | (5.1)% | | Adj. EBITDA ($'000) | $(5,574) | $7,091 | (178.6)% | | Adj. EBITDA Margin | (7.5)% | 9.0% | - | - The decrease in Adjusted EBITDA margin was mainly due to higher energy costs and idling in France[15](index=15&type=chunk) - Outlook: The company expects a meaningful increase in volumes in the second quarter and believes affirmed EU safeguards should benefit pricing and help local producers[68](index=68&type=chunk) [Cost and Profitability Analysis](index=5&type=section&id=Cost%20and%20Profitability) This section analyzes Ferroglobe's cost structure and profitability metrics, including raw materials, energy consumption, net loss, and Adjusted EBITDA for Q1 2025 [Raw Materials and Energy Consumption](index=5&type=section&id=Raw%20materials%20and%20energy%20consumption%20for%20production) Raw materials and energy consumption for production decreased 5.0% to $238.3 million in Q1 2025, but increased as a percentage of sales to 77.6% - Raw materials and energy consumption as a percentage of sales was **77.6%** in Q1 2025, up from **68.2%** in Q4 2024[17](index=17&type=chunk) - The increase in costs as a percentage of sales was driven by lower pricing and higher energy costs[17](index=17&type=chunk) [Net Loss and Adjusted EBITDA](index=6&type=section&id=Net%20(Loss)%20Income%20Attributable%20to%20the%20Parent) In Q1 2025, Ferroglobe reported a net loss attributable to the parent of $66.5 million, or $(0.36) per diluted share, with Adjusted EBITDA turning negative to $(26.8) million - Q1 2025 net loss attributable to the parent was **$(66.5) million**, or **$(0.36)** per diluted share[18](index=18&type=chunk) - Adjusted EBITDA for Q1 2025 was **$(26.8) million**, compared to **$9.8 million** in Q4 2024, with the decrease mainly driven by lower pricing and higher energy costs[19](index=19&type=chunk) - Adjusted diluted earnings per share was **$(0.20)** for Q1 2025, compared with **$0.03** in the prior quarter[18](index=18&type=chunk) [Financial Position and Cash Flow](index=7&type=section&id=Financial%20Position%20and%20Cash%20Flow) This section reviews Ferroglobe's balance sheet, working capital management, and cash flow generation, including capital returns to shareholders, for Q1 2025 [Balance Sheet and Working Capital](index=7&type=section&id=Total%20Cash,%20Adjusted%20Gross%20Debt%20and%20Working%20Capital) As of March 31, 2025, Ferroglobe maintained a net cash position of $19.2 million, with total working capital decreasing by $25.1 million to $435.7 million Key Balance Sheet Metrics (as of March 31, 2025) | ($ in millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Total Cash | $129.6 | $133.3 | $159.8 | | Adjusted Gross Debt | $110.4 | $94.4 | $80.8 | | Net Cash | $19.2 | $38.9 | $79.0 | | Total Working Capital | $435.7 | $460.8 | $487.5 | - The **$25.1 million** decrease in working capital was due to a **$32.3 million** decrease in inventories and a **$17.7 million** increase in trade and other payables, partially offset by increases in receivables[22](index=22&type=chunk) - CFO Beatriz García-Cos noted that the company achieved about **50%** of its full-year working capital reduction target in Q1 and expects a modest increase in the next two quarters as production ramps up, followed by a meaningful reduction in Q4[23](index=23&type=chunk) [Cash Flow and Capital Returns](index=7&type=section&id=Cash%20Flow%20and%20Capital%20Returns) Despite the challenging market, Ferroglobe generated positive free cash flow of $5.1 million in Q1 2025 and continued its capital return program - Generated positive free cash flow of **$5.1 million**, calculated from **$19.4 million** in operating cash flow less **$14.3 million** in capital expenditures[8](index=8&type=chunk)[81](index=81&type=chunk) - During Q1, the company repurchased **720,008 shares** at an average price of **$3.75** per share for a total of **$2.7 million**[24](index=24&type=chunk) - A quarterly cash dividend of **$0.014** per share was paid on March 26, 2025, with the next dividend of the same amount to be paid on June 26, 2025[24](index=24&type=chunk) [Outlook and Guidance](index=4&type=section&id=Outlook%20and%20Guidance) This section outlines Ferroglobe's forward-looking statements, including its full-year 2025 Adjusted EBITDA guidance and the factors influencing its optimistic market outlook [Company Outlook](index=4&type=section&id=Company%20Outlook) Ferroglobe maintains its full-year 2025 Adjusted EBITDA guidance of $100-$170 million, expecting significant performance improvement from Q2 onwards due to market trough and trade actions - The company is maintaining its 2025 Adjusted EBITDA guidance of **$100-$170 million**[7](index=7&type=chunk)[85](index=85&type=chunk) - The optimistic outlook is driven by the belief that the market is at or near a trough, combined with supportive trade actions[9](index=9&type=chunk) - Key trade actions include a favorable final determination in the U.S. ferrosilicon case, a newly filed petition by U.S. silicon metal producers, and expected EU safeguard measures covering all main products, which should benefit the company in the second half of the year[9](index=9&type=chunk)[51](index=51&type=chunk) [Appendix: Financial Statements and Reconciliations](index=10&type=section&id=Appendix) This appendix provides detailed unaudited condensed consolidated financial statements and reconciliations of non-IFRS financial measures to their IFRS equivalents [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2025, including the Income Statement, Statement of Financial Position, and Statement of Cash Flows - The Unaudited Condensed Consolidated Income Statement details revenues, costs, and the resulting net loss for the period[35](index=35&type=chunk)[36](index=36&type=chunk) - The Unaudited Condensed Consolidated Statement of Financial Position provides a snapshot of the company's assets, liabilities, and equity at the end of the quarter[37](index=37&type=chunk)[38](index=38&type=chunk) - The Unaudited Condensed Consolidated Statement of Cash Flows outlines the cash movements from operating, investing, and financing activities during the quarter[39](index=39&type=chunk)[40](index=40&type=chunk) [Non-IFRS Reconciliations](index=13&type=section&id=Non-IFRS%20Reconciliations) This section provides reconciliations for non-IFRS financial measures used by management, such as Adjusted EBITDA, Adjusted Profit, and Adjusted Diluted EPS, to their nearest IFRS equivalents Reconciliation of Net Loss to Adjusted EBITDA (Q1 2025, $ in thousands) | Description | Amount | | :--- | :--- | | Loss attributable to the parent | $(66,482) | | Loss attributable to non-controlling interest | $(416) | | Income tax expense | $625 | | Finance income | $(873) | | Finance costs | $4,555 | | Depreciation and amortization | $17,520 | | **EBITDA** | **$(45,071)** | | Exchange differences | $6,914 | | Impairment (gain) loss | $(268) | | New strategy implementation | $682 | | PPA Energy | $2,768 | | Fines inventory adjustment | $8,172 | | **Adjusted EBITDA** | **$(26,803)** | Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q1 2025) | Description | Amount ($) | | :--- | :--- | | Diluted (loss) per ordinary share | $(0.36) | | Tax rate adjustment | $0.11 | | Impairment (gain) loss | $(0.00) | | New strategy implementation | $0.00 | | PPA Energy | $0.01 | | Fines inventory adjustment | $0.03 | | **Adjusted diluted (loss) per ordinary share** | **$(0.20)** |

Core Insights - Ferroglobe PLC reported a significant decline in financial performance for Q1 2025, with a net loss of $66.5 million, compared to a loss of $28.1 million in Q4 2024, indicating a 136.3% increase in losses [3][11][12] - The company anticipates a market recovery, citing supportive trade actions in the U.S. and expected safeguard measures in the EU, which could lead to improved demand and revenue in the upcoming quarters [4][5] Financial Highlights - Sales for Q1 2025 were $307.2 million, down 16.4% from Q4 2024 and down 21.6% year-over-year [3][5] - Adjusted EBITDA was $(26.8) million, a decrease of 372.2% from the previous quarter and a decline of 203.9% year-over-year [3][12] - The adjusted diluted EPS was $(0.20), compared to $0.03 in Q4 2024, marking an 849.2% decrease [3][11] Product Category Performance - **Silicon Metal**: Revenue decreased by 35.2% to $104.6 million, with shipments down 27.1% and average selling prices down 11.1% [7][8] - **Silicon-Based Alloys**: Revenue increased by 6.8% to $90.9 million, with shipments up 8.7%, although adjusted EBITDA decreased by 22.0% [8][9] - **Manganese-Based Alloys**: Revenue decreased by 5.1% to $74.5 million, with shipments flat and adjusted EBITDA dropping to $(5.6) million [9][10] Cash Flow and Capital Management - Operating cash flow was $19.4 million, down 39.6% from Q4 2024, while free cash flow was $5.1 million, a 64.2% increase from the previous quarter [3][14] - The company repurchased 720,008 shares at an average price of $3.75 per share and increased the quarterly cash dividend to $0.014 per share, up 8% from the prior quarter [6][17] Balance Sheet Overview - Total cash as of March 31, 2025, was $129.6 million, down from $133.3 million at the end of 2024 [13] - Adjusted gross debt increased to $110.4 million, resulting in net cash of $19.2 million [13][15] - Total working capital decreased to $435.7 million, down from $460.8 million at the end of 2024 [15][16]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of even ...

Group 1 - Ferroglobe PLC will release its first quarter 2025 financial results after market close on May 7, 2025 [1] - The quarterly earnings call is scheduled for May 8, 2025, at 8:30 a.m. Eastern Time [1] - Participants can join the conference call by pre-registering to receive dial-in numbers and a personal PIN [1] Group 2 - Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese-based specialty alloys, and ferroalloys [2] - The company serves a diverse customer base in rapidly growing markets such as solar, electronics, automotive, consumer products, construction, and energy [2] - Ferroglobe is headquartered in London [2]

Core Insights - Coreshell has secured $24 million in strategic funding to scale production of its 60 Ah battery cells made from 100% domestically-sourced metallurgical silicon [1][2] - The funding will facilitate the expansion of Coreshell's manufacturing capabilities at its new 4 MWh facility in San Leandro, California, with plans for a 100 MWh facility in development [2][4] - The company aims to deliver commercial samples of its battery cells to global automakers in 2025, addressing the growing demand for silicon-based batteries [2][3] Market Demand and Production Scaling - The funding will accelerate efforts to meet increasing market demand for silicon-based batteries and enhance the executive and R&D teams to refine production processes [4] - Coreshell's manufacturing utilizes standard equipment from South Korea's TopMaterial, allowing for rapid scaling without specialized infrastructure [4] Strategic Partnerships - Ferroglobe PLC, a key materials partner, supplies the micrometric silicon essential for Coreshell's battery technology [5] - The partnership is seen as critical for scaling a domestic supply chain and addressing cost and supply chain challenges in the EV industry [6] Technological Advancements - Coreshell's battery technology utilizes metallurgical silicon, providing over 30% more range and reducing costs by up to 25% compared to traditional graphite [7] - The battery cells have demonstrated significant performance metrics, including 30-40% higher energy density than graphite-based cells and over 475 cycles with more than 90% capacity retention [8][9] Safety and Reliability - Coreshell's silicon anode batteries are reported to be as reliable and safe as traditional graphite batteries while offering higher energy density [9]

Financial Data and Key Metrics Changes - The company reported revenue of $1.6 billion for 2024, with adjusted EBITDA of $154 million and free cash flow of $164 million [6][41] - Adjusted EBITDA for Q4 was $10 million, down from $60 million in the previous quarter, impacted by lower prices, higher costs, and softer volumes [25][38] - The full year adjusted EBITDA decreased from $315 million in 2023 to $154 million in 2024, primarily due to higher energy costs and lower realized prices [41][42] Business Line Data and Key Metrics Changes - Silicon metal revenue declined 17% in Q4 to $161 million, with adjusted EBITDA dropping to $17 million due to higher costs and reduced volumes [26][27] - Silicon-based alloys segment adjusted EBITDA improved slightly to $3 million in Q4, driven by cost improvements despite lower volumes [29] - Manganese alloys revenue decreased 13% to $78 million in Q4, with adjusted EBITDA down $9 million due to tighter spreads and higher costs [32][33] Market Data and Key Metrics Changes - In the U.S., the International Trade Commission imposed antidumping duties exceeding 1,000% on Russian ferrosilicon, which is expected to benefit domestic producers [14][15] - The European market has seen a decline in silicon metal consumption by approximately 12% from 2019 to 2024, with increased imports from Eastern countries impacting local pricing [16][17] - The World Steel Association forecasts a 3.5% growth in European steel production for 2025, which may drive demand for the company's products [19] Company Strategy and Development Direction - The company is focusing on a capital return program, including quarterly dividends and share buybacks, while maintaining a strong balance sheet [7][10] - The implementation of Sales and Operation Planning (S&OP) is expected to drive operational efficiency and improve cash flow [21] - The company is optimistic about the role of silicon metal in EV batteries and is increasing investment in innovative technologies [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the first half of 2025 may continue to face challenging market conditions, but signs of market stabilization are emerging [18] - The company anticipates a gradual improvement in market conditions in the second half of 2025, supported by trade measures and increased steel production [19][50] - The guidance for adjusted EBITDA in 2025 is set between $100 million and $170 million, reflecting uncertainty in market conditions and trade measures [24][47] Other Important Information - The company paid an initial dividend in Q1 2024 and plans to increase it by approximately 8% in Q1 2025 [8][44] - A noncash impairment and goodwill write-off of $61 million was recognized in Q4 [42] - The company ended Q4 with a cash balance of $133 million and a positive net cash position of $39 million [45] Q&A Session Summary Question: Annual guidance and its components - Management explained that the wider guidance range reflects a volatile environment and uncertainty regarding trade measures, with the low end being conservative and the high end dependent on potential government duties [55][56] Question: Sensitivity of volumes and pricing - Management indicated that a 1% variance in pricing impacts EBITDA by approximately $14 million [58] Question: Growth markets for silicon metal - Management expressed confidence in silicon's role in battery technology and noted challenges in the solar market due to overcapacity in polysilicon [60][62] Question: Share repurchase strategy - Management confirmed an opportunistic approach to share buybacks, emphasizing no additional debt will be taken to support the program [68] Question: Impact of European quota system on production costs - Management stated that increased capacity utilization in Europe would favor better cost absorption, but specifics on cost per ton remain uncertain [90] Question: Ferrosilicon import reductions and pricing cadence - Management noted a significant reduction in imports from Russia and anticipated a positive impact on ferrosilicon demand due to new contracts signed [92][95] Question: Rate of return expectations for new U.S. facility - Management expects a return higher than the company's weighted average cost of capital (WACC) for the new facility investment [97]

Core Viewpoint - Ferroglobe PLC reported a challenging financial performance for Q4 2024, with significant declines in sales and adjusted EBITDA, while providing guidance for 2025 adjusted EBITDA between $100 million and $170 million, reflecting market uncertainties [2][4]. Financial Highlights - Q4 2024 sales were $367.5 million, down 15.2% from Q3 2024 and 2.2% year-over-year [3][5]. - Net loss attributable to the parent was $46.4 million in Q4 2024, compared to a profit of $18.8 million in Q3 2024 [3][13]. - Adjusted EBITDA for Q4 2024 was $9.8 million, a decrease of 83.7% from Q3 2024 [3][15]. - Full-year 2024 adjusted EBITDA was $153.8 million, down 51.2% from $315.2 million in 2023 [3][16]. Product Category Performance - **Silicon Metal**: Revenue decreased by 16.6% in Q4 2024 to $161.3 million, with shipments down 12.5% [7][9]. - **Silicon-Based Alloys**: Revenue fell 16.4% in Q4 2024 to $85.1 million, with shipments down 13.3% [8][9]. - **Manganese-Based Alloys**: Revenue decreased by 12.5% in Q4 2024 to $78.5 million, despite a 5.0% increase in shipments [10][11]. Cash Flow and Capital Management - Operating cash flow for Q4 2024 was $32.1 million, with full-year operating cash flow at $243.3 million [18][19]. - The company repurchased approximately 482,000 shares in Q4 2024 and increased its quarterly dividend by 7.7% to $0.014 per share [5][21]. Trade Measures and Market Outlook - Ferroglobe is benefiting from trade measures in the U.S. and Europe aimed at stabilizing the market by imposing duties on imports from certain countries [2][5]. - The company anticipates demand improvement in the second half of 2025, despite current market uncertainties [2][4].

Core Viewpoint - Ferroglobe PLC will release its fourth quarter and full-year 2024 financial results on February 19, 2025, and will conduct a quarterly earnings call on February 20, 2025 [1] Company Overview - Ferroglobe is a leading global producer of silicon metal and silicon and manganese-based ferroalloys, serving diverse and rapidly growing markets such as solar, automotive, consumer products, construction, and energy [2] - The company is headquartered in London [2] Investor and Media Contacts - Investor relations are managed by Alex Rotonen, CFA, Vice President of Investor Relations [3] - Media inquiries can be directed to Cristina Feliu Roig, Vice President of Communications & Public Affairs [3]

Core Viewpoint - Ferroglobe PLC (NASDAQ: GSM) has faced weak demand throughout 2024, but recent developments may enhance demand in 2025, despite the stock being negatively affected [1]. Group 1 - The company has struggled with soft demand for all of 2024 [1]. - There is potential for improved demand in 2025 due to recent positive news [1].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 was $60 million, up from $58 million in the previous quarter, driven by higher realized pricing, improved spreads in manganese alloys, and lower energy costs [3][15][28] - Revenue decreased by 4% in Q3 to $434 million, with lower volumes across all three segments [26] - Operating cash flow improved to $11 million, an increase of $9 million over the prior quarter, while free cash flow was negative $10 million, an improvement of $10 million from the previous quarter [15][31] Business Line Data and Key Metrics Changes - Silicon metal revenue declined 5% in Q3 to $196 million, with adjusted EBITDA increasing by 17% due to a 5% improvement in realized pricing [16][29] - Silicon-based alloys segment had an adjusted EBITDA of $2 million in Q3, down from $10 million in the previous quarter, primarily due to lower fixed cost absorption [19] - Manganese alloys revenue decreased 9% to $90 million in Q3, but adjusted EBITDA increased by 100% to $28 million due to a 16% price increase [22][29] Market Data and Key Metrics Changes - U.S. ferrosilicon market is expected to improve in early 2025 due to trade cases initiated earlier in the year, which resulted in duties on imports from several countries [4][6] - European FeSi index is at a four-year low, reflecting weak demand and increased imports [20] - Global steel demand is forecasted to rebound by more than 3% in 2025, excluding China [10] Company Strategy and Development Direction - The company is implementing a new sales and operation planning process to optimize demand planning, raw material purchases, production, logistics, and sales [7] - Long-term brownfield expansion plans are underway to increase silicon metal capacity in the U.S. to meet expected demand from solar and EV batteries [8] - The company is focused on maintaining a strong balance sheet to withstand the current downcycle while investing in growth markets [25] Management's Comments on Operating Environment and Future Outlook - Management expects end markets to improve in the second half of 2025, with the U.S. FeSi market improving in the first half due to favorable trade cases [10][34] - The aluminum market is anticipated to see better conditions in the second half of 2025 as interest rates decline [11] - Management highlighted the importance of the new silicon metal supply contract in the Middle East for renewable energy initiatives [12] Other Important Information - The company paid a quarterly dividend of $0.013 per share in Q3 and executed a small portion of its stock buyback program [13] - The company is committed to reducing carbon emissions by at least 26% by 2030 compared to the 2020 baseline [14] Q&A Session Summary Question: Can you provide more details on the U.S. expansion? - Management confirmed that the brownfield expansion will be cost-competitive, with estimated CapEx between 30% and 50% lower than greenfield projects, and a minimum capacity of 60,000 tons expected [37][40] Question: What is the outlook for free cash flow in Q4? - Management expects a release of working capital around $15 million in Q4, with the early idling of French plants contributing to this [41][42] Question: Can you elaborate on the silicon-based alloy segment's performance? - Management noted that the flat demand in Europe and increased imports have led to price erosion and margin compression in the silicon-based alloy segment [44][46] Question: Are the U.S. ferrosilicon import tariffs sufficient? - Management indicated that the tariffs on imports from Russia exceeded expectations, while the final decisions on tariffs for Kazakhstan, Malaysia, and Brazil are still pending [50][52] Question: Can you provide details on the new silicon contract in the Middle East? - Management confirmed a new contract for silicon metal related to a large polysilicon production unit in the Middle East, with a capacity of 100,000 tons ramping up in 2025 [54]