Ferroglobe Reports Results for First Quarter 2017

• Q1 2017 revenue of $388.2 million, flat compared to $386.8 million in Q4 2016
• Q1 2017 net loss of $(8.1) million, or $(0.04) on a fully diluted per share basis, up from $(246.3) million, or $(1.41) on a fully diluted per share basis, in the prior quarter
• Q1 2017 EBITDA¹ of $26.6 million, which excludes the non-core Energy division that has been classified as “held for sale”. Q1 EBITDA is up 257% compared to $7.5 million adjusted EBITDA in the previous quarter
• Continued to reduce working capital, with $18 million achieved in Q1 2017 and $201 million since the closing of the business combination in December 2015
• Maintained strong balance sheet with Q1 2017 net debt of $407 million compared to $405 in Q4 2016

LONDON, May 21, 2017 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ:GSM), the world’s leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, announced today results for the first quarter of 2017.

Of note, the company’s non-core Energy division has been classified as “held for sale,” and its results are consolidated only at the net income level.² There are no “non-recurring” items that require adjustments to net income or EBITDA for Q1 2017.

In Q1 2017, Ferroglobe posted a net loss of $(8.1) million, or $(0.04) per share on a fully diluted basis. Ferroglobe’s EBITDA of $26.6 million for Q1 2017, excluding the non-core Energy division, represents an increase of 257% compared to adjusted EBITDA of $7.5 million in Q4 2016. While this represents Ferroglobe’s strongest quarterly EBITDA performance in the last twelve months, the company is confident that improving prices and a continued reduction in operating costs will help ensure a return to Ferroglobe’s historic margins and performance. The company reported EBITDA margins of 6.8% for Q1 2017, compared to adjusted EBITDA margins of 1.9% for Q4 2016. If the non-core Energy division were to be included, EBITDA would have been $6.6 million in Q4 2016 and $30.9 million in Q1 2017.

Net sales in Q1 2017 totaled $388.2 million, flat from $386.8 million in Q4 2016. Selling prices for Ferroglobe’s key products continued to improve over the course of the quarter across both the U.S. and Europe:

• The average selling price for manganese alloys increased as much as 46% from Q4 2016. Taking into account the increase in manganese ore prices, the spread (average selling price of manganese alloys minus cost of manganese ore to produce those alloys) increased by 25% over that same period.
• The average selling price for silicon-based alloys increased 10% from Q4 2016.
• The average selling price for silicon metal remained flat from Q4 2016. A now-resolved strike at a large customer and rollover of below-market contract prices from Q4 2016 negatively impacted average selling prices in the quarter. Market prices have increased in North America, and the company is now starting to benefit from this improvement.
• We continue to realize average sales prices greater than index prices.

In terms of sales volumes, silicon metal experienced an 8% decrease quarter-over-quarter, silicon alloys experienced a 4% decrease quarter-over-quarter, and manganese alloys experienced a 17% decrease quarter-over-quarter. Silicon metal sales volumes were affected by the aforementioned strike at a key customer’s facility, which has now been resolved. In order to preserve margins in manganese alloys, the company reduced production in response to a significant increase in the cost of manganese ore at the end of 2016, which negatively impacted manganese alloy volumes in Q1 2017. These conditions were temporary and volume trends are expected to normalize in Q2 2017.

					Quarter Ended March 31, 2017			Quarter Ended December 31, 2016			Quarter Ended  March 31, 2016			Year Ended December 31, 2016
Shipments in metric tons:
	Silicon Metal					75,753			82,372			90,105			341,388
	Silicon Alloys					75,386			78,698			73,473			297,669
	Manganese Alloys					63,700			76,445			63,575			270,430
		Total shipments*				214,839			237,515			227,153			909,487
					Quarter Ended  March 31, 2017			Quarter Ended  December 31, 2016			Quarter Ended  March 31, 2016			Year Ended  December 31, 2016
Average selling price ($/MT):
	Silicon Metal				$	2,080		$	2,080		$	2,387		$	2,201
	Silicon Alloys				$	1,473		$	1,340		$	1,433		$	1,400
	Manganese Alloys				$	1,298		$	890		$	764		$	826
		Total*			$	1,635		$	1,452		$	1,624		$	1,530
					Quarter Ended  March 31, 2017			Quarter Ended  December 31, 2016			Quarter Ended  March 31, 2016			Year Ended  December 31, 2016
Average selling price ($/lb.):
	Silicon Metal				$	0.94		$	0.94		$	1.08		$	1.00
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