Ferroglobe(GSM) - 2021 Q4 - Annual Report

Sales Performance - Sales increased by $634,474 thousand, or 55.4$1,144,434 thousand in 2020 to $1,778,908 thousand in 2021, attributed to increased volumes and average realized prices across all product categories [416]. - Silicon metal sales volume increased by 22.5$2,511/MT in 2021, compared to $2,234/MT in 2020 [417]. - Silicon-based alloys sales volume increased by 21.3$2,058/MT in 2021, compared to $1,899/MT in 2020 [418]. - Manganese-based alloys sales volume increased by 20.2$1,492/MT in 2021, compared to $1,022/MT in 2020 [419]. - Sales increased by$99,531 thousand, or 23.4%, from $425,277 thousand in 2020 to$524,808 thousand in 2021, driven by higher market prices and strong customer demand [440]. - Sales in Europe - Manganese increased by $236,145 thousand, or 98.3$240,142 thousand in 2020 to $476,287 thousand in 2021, driven by a 20.2$197,629 thousand, or 42.3%, from $467,728 thousand in 2020 to$665,337 thousand in 2021, attributed to a 22.5% increase in both domestic sales and exports [457]. - Sales increased by $36,623 thousand, or 45.5$80,572 thousand in 2020 to $117,195 thousand in 2021, driven by improved demand and market conditions in South Africa [466]. - Sales in other segments increased by$18,234 thousand, or 72.0%, from $25,334 thousand in 2020 to$43,568 thousand in 2021, driven by increased demand and prices due to supply constraints [474]. Operating Income and Expenses - Other operating income increased by $76,458 thousand, or 227.4$33,627 thousand in 2020 to $110,085 thousand in 2021, mainly due to CO2 emissions allowances, which increased in market value by 130.5$2,469 thousand, or 84.6%, from $2,916 thousand in 2020 to$5,385 thousand in 2021, mainly due to gains on CO2 emission rights [442]. - Other operating income surged by $632 thousand, or 482.4$131 thousand in 2020 to $763 thousand in 2021, mainly due to sundry sales from the idle Polokwane plant [468]. - Other operating expenses increased by$164,750 thousand, or 124.7%, from $132,059 thousand in 2020 to$296,809 thousand in 2021, mainly due to CO2 emissions provisions [425]. - Other operating expense decreased by $842 thousand, or 6.0$14,098 thousand in 2020 to $13,256 thousand in 2021, due to the recovery of operating expenses following the closure of the Polokwane facility [470]. Staff Costs - Staff costs increased by$66,135 thousand, or 30.8%, from $214,782 thousand in 2020 to$280,917 thousand in 2021, primarily due to restructuring provisions and higher variable considerations [424]. - Staff costs increased by $8,475 thousand, or 11.5$73,988 thousand in 2020 to $82,463 thousand in 2021, attributed to a higher number of employees and adjustments to the Pension Plan [442]. - Staff costs increased by$2,255 thousand, or 20.5%, from $11,013 thousand in 2020 to$13,268 thousand in 2021, primarily due to inflationary adjustments and accrued incentive bonuses [469]. - Staff costs in other segments increased by $14,059 thousand, or 82$17,144 thousand in 2020 to $31,203 thousand in 2021, mainly due to higher personnel needs for the restart of the second furnace in Argentina [477]. - Staff costs decreased by$9,320 thousand, or 45.8%, from $20,333 thousand in 2019 to$11,013 thousand in 2020, attributed to staffing adjustments related to the Polokwane plant shutdown [539]. - Staff costs in other segments decreased by $20,784 thousand, or 54.8$37,928 thousand in 2019 to $17,144 thousand in 2020, due to redundancy payments and further headcount reductions [549]. Financial Performance - Finance costs surged by$82,221 thousand, or 122.7%, from $66,968 thousand in 2020 to$149,189 thousand in 2021, primarily due to Senior Notes refinancing [431]. - Income tax expense variation amounted to $26,501 thousand, or 120.8$21,939 thousand in 2020 to a benefit of $4,562 thousand in 2021 [436]. - The company recognized an impairment of$73,344 thousand in 2020, with significant amounts attributed to idled facilities in the U.S. ($35,685 thousand) and Europe ($17,941 thousand) [497]. - Impairment losses decreased by $73,481 thousand, or 100.2$73,344 thousand in 2020 to a gain of $137 thousand in 2021 [427]. - Net gain in the value of assets was$758 thousand in 2021, compared to a net loss of $158 thousand in 2020 [428]. - Impairment losses decreased by$11,361 thousand, or 130.9%, from a loss of $8,677 thousand in 2020 to a gain of$2,684 thousand in 2021, due to the partial reversal of the 2020 impairment [472]. Cash Flow and Liquidity - Operating activities generated a cash flow of ($1,341) thousand in 2021, compared to$154,268 thousand in 2020, mainly due to increases in inventories and receivables [571]. - As of December 31, 2021, Ferroglobe had cash, restricted cash, and cash equivalents totaling $116,663 thousand, a decrease from$131,557 thousand as of December 31, 2020 [572][584]. - Total gross financial debt increased to $618,552 thousand as of December 31, 2021, compared to$551,547 thousand in the previous year [573]. - Working capital position improved to $464,870 thousand as of December 31, 2021, up from$339,610 thousand in 2020, driven by increases in inventories and receivables [577]. - Cash flows from operating activities turned negative at $(1,341) thousand for the year ended December 31, 2021, a significant decrease from a positive$154,268 thousand in 2020 [585]. - Cash flows from investing activities improved, with outflows decreasing to $(23,848) thousand in 2021 from$(31,940) thousand in 2020, reflecting reduced capital expenditures [586]. - Cash flows from financing activities shifted to a net inflow of $10,452 thousand in 2021, compared to a net outflow of$(113,333) thousand in 2020, primarily due to refinancing and new equity issuance [587]. - Capital expenditures for the year ended December 31, 2021, were $27,597 thousand, down from$30,257 thousand in 2020 [578]. - The company anticipates generating sufficient cash to meet both short and long-term liquidity needs [574]. - Ferroglobe paid no dividends during the years ended December 31, 2021, and 2020 [584].