Ferroglobe (GSM) 16th Annual Midwest Ideas Conference summary

Company overview and market position

• Major global producer of silicon metal, ferrosilicon, and manganese-based alloys with $1.6 billion in sales and 3,300 employees across multiple continents.

• Vertically integrated in quartz and electrodes, but not in manganese; global customer base includes major industrial players.

• Revenue mix: 50% silicon metal, 25% silicon-based alloys, 25% manganese-based alloys; geographically, 35% sales from North America, 40% Europe, 25% rest of world.

• End markets include solar, EV batteries, automotive, construction, and energy sectors.

• Added to Russell 3000 and 2000 Indices in June, increasing visibility.

Financial health and capital allocation

• Deleveraged from $550 million to $100 million in debt, achieving a net cash position and paying dividends since Q1 last year.

• Dividend increased 8% in Q1 2025; current quarterly dividend is $0.014 per share, with plans for modest growth.

• Share buybacks of $7 million since Q3 last year; $10 million invested in EV battery tech company Coreshell.

• Maintenance CapEx of $50–$60 million annually, with flexibility to adjust as needed.

• Strong focus on working capital reduction, targeting $100 million reduction by year-end, with $70 million achieved.

Operational strategy and flexibility

• Operational excellence prioritized, with significant improvements in working capital and cost management since 2021.

• Flexible production allows switching between silicon and ferrosilicon based on market conditions.

• Energy contracts cover 75%+ of needs except Spain (20%); production in Spain is adjusted based on energy prices.

• New favorable long-term energy contract in France will allow increased production and better cost leverage.

• Vertically integrated in key inputs, including high-quality quartz (80% self-reliant) and electrodes (15%).