LONDON, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ:GSM) ("Ferroglobe", the "Company", or the "Parent"), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announced financial results for the second quarter 2023.

FINANCIAL HIGHLIGHTS

Reported Q2-23 revenue of $456.4 million, up 14% over the prior quarter
Q2-23 adjusted EBITDA of $105.7 million, up 136% over the prior quarter
Improved Q2-23 adjusted EBITDA margin to 23.2% versus 11.2% in Q1-23
Q2-23 Adjusted EPS was $0.30 versus $0.05 in Q1-23
Gross debt was $400.1 million in Q2-23, flat versus the prior quarter and down $100 million from a year-ago quarter
Net debt declined to $37 million, down from $55 million in Q1-23 and $194 million in Q2-22
$100 million available from our ABL facility completely undrawn in Q2-23
Total cash increased to $363 million, up from $344 million in Q1-23 and $307 million in Q2-22

BUSINESS HIGHLIGHTS

Executed a partial redemption of the 2025 Senior Notes on July 31, redeeming $150 million of the 9 3/8% Senior Secured Notes due in 2025, reducing annual interest expense by $14 million
Approaching net cash neutral - Lowest net debt in Company history
Continued improvement to balance sheet with cash increasing to $363 million and net debt declining to $37 million
The US recently added Silicon Metal as a critical material, highlighting its importance in the supply chain and reinforcing the onshoring opportunity for Ferroglobe
Well-positioned to capitalize on strong long-term growth trends for high purity silicon metal used in the production of solar technology and batteries
Finalized our first long-term power agreement in Spain, enabling a partial resumption of Spanish operations while increasing renewable energy sourcing

Dr. Marco Levi, Ferroglobe's Chief Executive Officer, commented, "We are pleased to report strong second quarter sales growth and an EBITDA improvement of 136%, highlighting our resilience and ability to navigate effectively through this volatile pricing environment as our end markets remain under pressure. Equally importantly, our focus on strengthening our balance sheet has been effective as our cash and net debt positions reached their best levels in the Company's history as of June 30. Subsequent to quarter-end, we continued our deleveraging efforts by redeeming $150 million of our Senior Secured Notes due in 2025.

"Recently, the US Department of Energy added Silicon Metal to its critical material list. This is a significant step, validating the onshoring trend and highlighting our opportunity in the US market.

"As expected, we finalized our first multi-year energy contract in Spain starting in 2024. This is an initial step in the process to sign additional contracts to further hedge our future energy needs. This contract provides us with access to 100% renewable energy at competitive rates and enables Ferroglobe to increase production in Spain.

"While end markets remain soft, our proactive energy strategy, combined with disciplined costs controls, is bolstering our performance in 2023. Hence, we are reiterating our guidance for the full year of adjusted EBITDA of $270 to $300 million," concluded Dr. Levi.

Second Quarter 2023 Financial Highlights

	Quarter Ended			Quarter Ended			Quarter Ended			%	%	Six Months Ended			Six Months Ended			%
$,000 (unaudited)	June 30, 2023			March 31, 2023			June 30, 2022			Q/Q	Y/Y	June 30, 2023			June 30, 2022			Y/Y

Sales	$	456,441		$	400,868		$	840,808		14%	(46%)	$	857,309		$	1,556,073		(45%)
Raw materials and energy consumption for production	$	(229,077	)	$	(255,036	)	$	(369,749	)	9%	(32%)	$	(484,113	)	$	(710,304	)	(32%)
Energy consumption for production (PPA impact)		(23,193	)		23,193			—					—			—
Operating profit (loss)	$	62,846		$	44,454		$	265,298		41%	(76%)	$	107,300		$	476,428		(77%)
Operating margin		13.8	%		11.1	%		31.6	%				12.5	%		30.6	%
Adjusted net income attributable to the parent	$	56,737		$	7,807		$	213,170		627%	(73%)	$	64,922		$	378,472		(83%)
Adjusted diluted EPS	$	0.30		$	0.05		$	1.14				$	0.34		$	2.02
Adjusted EBITDA	$	105,674		$	44,767		$	303,159		136%	(65%)	$	150,441		$	544,277		(72%)
Adjusted EBITDA margin		23.2	%		11.2	%		36.1	%				17.5	%		35.0	%
Operating cash flow	$	23,572		$	134,783		$	164,818		(83%)	(86%)	$	158,355		$	230,726		(31%)
Free cash flow¹	$	939		$	117,491		$	151,109		(99%)	(99%)	$	118,430		$	207,892		(43%)

Working Capital	$	474,971		$	582,344		$	687,345		(18%)	(31%)	$	474,971		$	687,345		(31%)
Cash and Restricted Cash	$	363,181		$	344,197		$	306,511		6%	18%	$	363,181		$	306,511		18%
Adjusted Gross Debt²	$	400,066		$	399,723		$	500,472		0%	(20%)	$	400,066		$	500,472		(20%)
Equity	$	823,595		$	658,490		$	637,710		25%	29%	$	823,595		$	637,710		29%

(1) Free cash flow is calculated as operating cash flow plus investing cash flow

(2) Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 at June 30, 2023 March 31, 2023 & June 30, 2022

Sales

Ferroglobe reported second quarter net sales of $456 million, an increase of 14% over the prior quarter and a decrease of 46% over Q2-22. The improvement over our prior quarter revenue is primarily attributable to higher volumes in our main products. The $56 million increase in sales over the prior quarter was primarily driven by silicon metal, which accounted for $35 million of the increase, and manganese-based alloys, which accounted for $16 million, partially offset by a decrease in silicon-based alloys, which accounted for $2 million.

Raw materials and energy consumption for production

Raw materials and energy consumption for production was $252 million in the second quarter of 2023 versus $232 million in the prior quarter, an increase of 9%. As a percentage of sales, raw materials and energy consumption for production was 55% in the second quarter of 2023 versus 58% in the prior quarter. Excluding the PPA impact, raw materials and energy consumption for production was 50% of revenue in the second quarter, an improvement from 64% in the first quarter.

Net Income (Loss) Attributable to the Parent

In the second quarter, net profit attributable to the parent was $32 million, or $0.17 per diluted share, compared to a net profit attributable to the parent of $21 million, or $0.11 per diluted share in the first quarter.

Adjusted EBITDA

Adjusted EBITDA in the second quarter was $106 million, an increase of 136% over first quarter adjusted EBITDA of $45 million. Adjusted EBITDA margins were 23% in the second quarter, up from 11% in the first quarter. The increase in second quarter adjusted EBITDA was driven by higher sales volumes and lower costs, which benefited from energy and CO2 compensation.

Total Cash

The total cash balance was $363 million as of June 30, 2023, up $19 million from $344 million as of March 31, 2023.

During the second quarter, we generated positive operating cash flow of $24 million, negative cash flow from investing activities of $23 million, and $19 million positive cash flow from financing activities.

Total Working Capital

Total working capital was $475 million at June 30, 2023, a decrease from $582 million at March 31, 2023. The $107 million decrease in working capital during the quarter was due to a decrease in trade and other receivables by $31 million, a decrease in inventories by $33 million, and an increase in trade and other payables by $44 million.

Beatriz García-Cos, Ferroglobe's Chief Financial Officer, commented, "We continued to manage our working capital effectively during the quarter, reducing it by $107 million to $475 million with trade receivables, inventories and accounts payable all contributing. During the second quarter, we improved our net debt by $18 million to $37 million.

"In July, we further strengthened our balance sheet by redeeming $150 million of our 9 3/8% Senior Secured Notes, effectively reducing the outstanding note balance by half and lowering our annual interest expense by approximately $14 million. In less than 18 months, we have reduced gross debt by $270 million, from roughly $520 million to $250 million today, highlighting our strong cash flow generation.

"We are currently evaluating our next steps in managing our balance sheet as we contemplate optimal actions to maximize long-term shareholder value," concluded Mrs. Garcia-Cos.

Product Category Highlights

Silicon Metal

	Quarter Ended			Quarter Ended					Quarter Ended					Six Months Ended			Six Months Ended
	June 30, 2023			March 31, 2023			% Q/Q		June 30, 2022			% Y/Y		June 30, 2023			June 30, 2022			% Y/Y
Shipments in metric tons:		50,651			36,942		37.1	%		62,988		(19.6	)%		87,593			119,337		(26.6	)%
Average selling price ($/MT):		3,855			4,351		(11.4	)%		5,649		(31.8	)%		4,064			5,603		(27.5	)%

Silicon Metal Revenue ($,000)		195,260			160,735		21.5	%		355,819		(45.1	)%		355,995			668,669		(46.8	)%
Silicon Metal Adj.EBITDA ($,000)		82,403			31,120		164.8	%		175,108		(52.9	)%		113,523			326,769		(65.3	)%
Silicon Metal Adj.EBITDA Mgns		42.2	%		19.4	%				49.2	%				31.9	%		48.9	%

Silicon metal revenue in the second quarter was $195 million, an increase of 21.5% over the prior quarter. The average realized price was down 11.4%, driven by lower market index pricing in the US and Europe. Total shipments increased due to the restart of our French operations as a result of our energy agreement. Adjusted EBITDA for silicon metal increased to $82 million during the second quarter, an increase of 164.8% compared with $31 million for the prior quarter. EBITDA margin in the quarter increased mainly driven by higher energy compensation and lower raw materials prices, primarily coal.

Silicon-Based Alloys

	Quarter Ended			Quarter Ended					Quarter Ended					Six Months Ended			Six Months Ended
	June 30, 2023			March 31, 2023			% Q/Q		June 30, 2022			% Y/Y		June 30, 2023			June 30, 2022			% Y/Y
Shipments in metric tons:		49,457			49,100		0.7	%		57,658		(14.2	)%		98,557			115,252		(14.5	)%
Average selling price ($/MT):		2,697			2,756		(2.1	)%		4,097		(34.2	)%		2,726			3,889		(29.9	)%

Silicon-based Alloys Revenue ($,000)		133,386			135,320		(1.4	)%		236,225		(43.5	)%		268,706			448,171		(40.0	)%
Silicon-based Alloys Adj.EBITDA ($,000)		31,812			21,924		45.1	%		97,141		(67.3	)%		53,736			175,552		(69.4	)%
Silicon-based Alloys Adj.EBITDA Mgns		23.8	%		16.2	%				41.1	%				20.0	%		39.2	%

Silicon-based alloy revenue in the second quarter was $133 million, a decrease of 1.4% over the prior quarter. Shipments remained broadly stable versus the prior quarter, while average realized selling prices slightly declined by 2.1% versus the previous quarter due to downward market prices partially offset by product mix improvement. Adjusted EBITDA for the silicon-based alloys portfolio increased to $32 million in the second quarter of 2023, an increase of 45.1% compared with $22 million for the prior quarter. EBITDA margin increased in the quarter as a result of footprint optimization, shifting production to France with lower energy costs.

Manganese-Based Alloys

	Quarter Ended			Quarter Ended					Quarter Ended					Six Months Ended			Six Months Ended
	June 30, 2023			March 31, 2023			% Q/Q		June 30, 2022			% Y/Y		June 30, 2023			June 30, 2022			% Y/Y
Shipments in metric tons:		62,573			46,867		33.5	%		97,007		(35.5	)%		109,440			172,089		(36.4	)%
Average selling price ($/MT):		1,248			1,316		(5.2	)%		1,986		(37.2	)%		1,277			1,959		(34.8	)%

Manganese-based Alloys Revenue ($,000)		78,091			61,677		26.6	%		192,656		(59.5	)%		139,768			337,189		(58.5	)%
Manganese-based Alloys Adj.EBITDA ($,000)		1,065			2,043		(47.9	)%		32,871		(96.8	)%		3,108			53,242		(94.2	)%
Manganese-based Alloys Adj.EBITDA Mgns		1.4	%		3.3	%				17.1	%				2.2	%		15.8	%

Manganese-based alloy revenue in the second quarter was $78 million, an increase of 26.6% over the prior quarter. Average realized selling prices decreased by 5.2% linked to continued index price declines while total shipments increased 33.5% due to the resuming of operations in France and increased operations in Spain driven by lower energy prices. Adjusted EBITDA for the manganese-based alloys portfolio decreased to $1 million in the second quarter, a decrease of 47.9% compared with $2 million for the prior quarter. EBITDA margin in the quarter decreased as a result of a decline in the Manganese Spread.

Subsequent Events

Redemption of $150 million of its 9.375% Senior Secured Notes

On July 21, 2023 the Company announced that its subsidiary issuers of the 9.375% Senior Secured Notes due 2025 (the "Notes") have given a notice of partial redemption of such Notes at 102.34375% of the principal amount plus accrued interest. The issuers elected to redeem an aggregate principal amount of $150 million of the Notes plus accrued and unpaid interest of approximately $14 million on July 31, 2023. The Notes were redeemed with cash on the balance sheet.

Conference Call

Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on August 15, 2023. Please dial-in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast.

To join via phone:

Conference call participants should pre-register using this link:

https://register.vevent.com/register/BIa07b56b2c46349bb8183571efe30a4a8

Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call.

To join via webcast:

A simultaneous audio webcast, and replay will be accessible here:

https://edge.media-server.com/mmc/p/d39f9hrr

About Ferroglobe

Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, automotive, consumer products, construction, and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "guidance", "intends", "likely", "may", "plan", "potential", "predicts", "seek", "target", "will" and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe's actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control.

Forward-looking financial information and other metrics presented herein represent the Company's goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Non-IFRS Measures

This document may contain summarized, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital, adjusted gross debt and net debt, are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors because they eliminate items that have less bearing on the Company's current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

INVESTOR CONTACT:

Alex Rotonen, CFA

Vice President, Investor Relations

Email: investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu Roig

Executive Director – Communications & Public Affairs

Email: corporate.comms@ferroglobe.com



Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)

	Quarter Ended			Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Sales	$	456,441		$	400,868		$	840,808		$	857,309		$	1,556,073
Raw materials and energy consumption for production		(229,077	)		(255,036	)		(369,749	)		(484,113	)		(710,304	)
Energy consumption for production (PPA impact)		(23,193	)		23,193			—			—			—
Other operating income		27,689			14,814			26,223			42,503			49,231
Staff costs		(74,972	)		(67,543	)		(80,704	)		(142,515	)		(162,690	)
Other operating expense		(77,202	)		(54,145	)		(130,992	)		(131,347	)		(214,168	)
Depreciation and amortization charges, operating allowances and write-downs		(16,452	)		(17,990	)		(20,185	)		(34,442	)		(41,294	)
Impairment (loss) gain		(887	)		246			—			(641	)		—
Other gain (loss)		499			47			(103	)		546			(420	)
Operating profit		62,846			44,454			265,298			107,300			476,428
Net finance (income) expense		(895	)		(10,980	)		(12,829	)		(11,875	)		(25,284	)
Exchange differences		(5,367	)		1,455			(7,882	)		(3,912	)		(12,275	)
Profit before tax		56,584			34,929			244,587			91,513			438,869
Income tax (loss)		(20,520	)		(9,461	)		(59,529	)		(29,981	)		(103,024	)
Profit for the period		36,064			25,468			185,058			61,532			335,845
Profit (loss) attributable to non-controlling interest		(4,156	)		(4,477	)		265			(8,633	)		641
Profit attributable to the parent	$	31,908		$	20,991		$	185,323		$	52,899		$	336,486


EBITDA	$	79,298		$	62,444		$	285,483		$	141,742		$	517,722
Adjusted EBITDA	$	105,674		$	44,767		$	303,159		$	150,441		$	544,277


Weighted average shares outstanding
Basic		187,872			187,873			187,441			187,873			187,424
Diluted		190,174			189,629			188,538			189,914			188,567

Profit (loss) per ordinary share
Basic	$	0.17		$	0.11		$	0.99		$	0.28		$	1.80
Diluted	$	0.17		$	0.11		$	0.98		$	0.28		$	1.78


Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)

	June 30,		March 31,		December 31,
	2023		2023		2022
ASSETS
Non-current assets
Goodwill	$	29,702	$	29,702	$	29,702
Other intangible assets		125,403		223,447		111,797
Property, plant and equipment		500,546		497,557		486,247
Other non-current financial assets		14,175		14,702		14,186
Deferred tax assets		8,683		7,123		7,136
Non-current receivables from related parties		1,630		2,915		1,600
Other non-current assets		19,633		19,297		18,218
Non-current restricted cash and cash equivalents		2,173		2,175		2,133
Total non-current assets		701,945		796,918		671,019
Current assets
Inventories		384,526		417,042		500,080
Trade and other receivables		281,821		312,452		425,474
Current receivables from related parties		2,726		2,728		2,675
Current income tax assets		16,290		7,652		6,104
Other current financial assets		2		2		3
Other current assets		104,237		26,914		30,608
Assets and disposal groups classified as held for sale		1,087		1,088		1,067
Current restricted cash and cash equivalents		2,406		2,411		2,875
Cash and cash equivalents		358,602		339,611		317,935
Total current assets		1,151,697		1,109,900		1,286,821
Total assets	$	1,853,642	$	1,906,818	$	1,957,840

EQUITY AND LIABILITIES
Equity	$	823,595	$	658,490	$	756,813
Non-current liabilities
Deferred income		77,514		128,125		3,842
Provisions		52,664		50,937		47,670
Bank borrowings		15,354		15,590		15,774
Lease liabilities		11,634		11,744		12,942
Debt instruments		302,572		304,621		330,655
Other financial liabilities		66,558		39,276		38,279
Other Obligations		31,763		36,310		37,502
Other non-current liabilities		137		22		12
Deferred tax liabilities		34,265		35,272		35,854
Total non-current liabilities		592,461		621,897		522,530
Current liabilities
Provisions		55,935		146,501		145,507
Bank borrowings		64,793		31,462		62,059
Lease liabilities		7,551		7,492		8,929
Debt instruments		11,668		4,688		12,787
Other financial liabilities		12,500		43,950		60,382
Financial Instruments		—		79,331		—
Payables to related parties		2,521		2,377		1,790
Trade and other payables		191,376		147,150		219,666
Current income tax liabilities		3,494		48,326		53,234
Other Obligations		13,589		18,790		9,580
Other current liabilities		74,159		96,364		104,563
Total current liabilities		437,586		626,431		678,497
Total equity and liabilities	$	1,853,642	$	1,906,818	$	1,957,840


Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows

	Quarter Ended			Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Cash flows from operating activities:
Profit for the period	$	36,064		$	25,468		$	185,058		$	61,532		$	335,845
Adjustments to reconcile net (loss) profit to net cash used by operating activities:
Income tax (benefit) expense		20,520			9,461			59,529			29,981			103,024
Depreciation and amortization charges, operating allowances and write-downs		16,452			17,990			20,185			34,442			41,294
Net finance expense		895			10,980			12,829			11,875			25,284
Exchange differences		5,367			(1,455	)		7,882			3,912			12,275
Impairment losses		887			(246	)		—			641			—
Net loss (gain) due to changes in the value of asset		(344	)		(25	)		(10	)		(369	)		(16	)
Gain on disposal of non-current assets		(161	)		(22	)		—			(183	)		302
Share-based compensation		2,041			1,905			970			3,946			2,777
Other adjustments		6			—			112			6			133
Changes in operating assets and liabilities
(Increase) decrease in inventories		30,132			86,275			(59,568	)		116,407			(133,179	)
(Increase) decrease in trade receivables		29,326			118,714			(25,963	)		148,040			(147,730	)
Increase (decrease) in trade payables		19,169			(73,864	)		(10,959	)		(54,695	)		29,114
Other		(61,617	)		(44,100	)		5,654			(105,717	)		(6,809	)
Income taxes paid		(75,165	)		(16,298	)		(30,901	)		(91,463	)		(31,588	)
Net cash provided (used) by operating activities		23,572			134,783			164,818			158,355			230,726
Cash flows from investing activities:
Interest and finance income received		969			668			140			1,637			208
Payments due to investments:
Other intangible assets		(940	)		—			—			(940	)		—
Property, plant and equipment		(22,662	)		(17,960	)		(13,855	)		(40,622	)		(23,048	)
Other		—			—			6			—			6
Net cash (used) provided by investing activities		(22,633	)		(17,292	)		(13,709	)		(39,925	)		(22,834	)
Cash flows from financing activities:
Payment for debt and equity issuance costs		—			—			(100	)		—			(100	)
Proceeds from debt issuance		—			—			—			—			(4,943	)
Repayment of debt instruments		(1,742	)		(26,283	)		—			(28,025	)		—
Increase/(decrease) in bank borrowings:											—			—
Borrowings		152,210			109,762			301,360			261,972			545,524
Payments		(126,840	)		(141,900	)		(292,253	)		(268,740	)		(529,880	)
Amounts paid due to leases		(2,851	)		(2,247	)		(2,277	)		(5,098	)		(4,795	)
Proceeds from other financing liabilities		—			—			—			—			—
Other amounts received/(paid) due to financing activities		—			(17,377	)		(19,119	)		(17,377	)		19,179
Interest paid		(1,721	)		(18,192	)		(2,376	)		(19,913	)		(37,175	)
Net cash (used) provided by financing activities		19,056			(96,237	)		(14,765	)		(77,181	)		(12,190	)
Total net cash flows for the period		19,995			21,254			136,344			41,249			195,702
Beginning balance of cash and cash equivalents		344,197			322,943			176,022			322,943			116,663
Exchange differences on cash and cash equivalents in foreign currencies		(1,011	)		—			(5,855	)		(1,011	)		(5,854	)
Ending balance of cash and cash equivalents	$	363,181		$	344,197		$	306,511		$	363,181		$	306,511
Cash from continuing operations		358,602			339,611			304,434			358,602			304,434
Current/Non-current restricted cash and cash equivalents		4,579			4,586			2,077			4,579			2,077
Cash and restricted cash in the statement of financial position	$	363,181		$	344,197		$	306,511		$	363,181		$	306,511

Adjusted EBITDA ($,000):

	Quarter Ended			Quarter Ended			Quarter Ended			Six Months Ended		Six Months Ended
	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023		June 30, 2022
Profit attributable to the parent	$	31,908		$	20,991		$	185,323		$	52,899	$	336,486
Profit (loss) attributable to non-controlling interest		4,156			4,477			(265	)		8,633		(641	)
Income tax expense		20,520			9,461			59,529			29,981		103,024
Net finance expense		895			10,980			12,829			11,875		25,284
Exchange differences		5,367			(1,455	)		7,882			3,912		12,275
Depreciation and amortization charges, operating allowances and write-downs		16,452			17,990			20,185			34,442		41,294
EBITDA		79,298			62,444			285,483			141,742		517,722
Impairment		887			(246	)		—			641		—
Restructuring and termination costs		—			—			3,406			—		9,315
New strategy implementation		(77	)		2,049			14,270			1,972		17,240
Subactivity		2,373			3,713			—			6,086		—
PPA Energy		23,193			(23,193	)		—			—
Adjusted EBITDA	$	105,674		$	44,767		$	303,159		$	150,441	$	544,277

Adjusted profit attributable to Ferroglobe ($,000):

	Quarter Ended			Quarter Ended			Quarter Ended		Six Months Ended		Six Months Ended
	June 30, 2023			March 31, 2023			June 30, 2022		June 30, 2023		June 30, 2022
Profit attributable to the parent	$	31,908		$	20,991		$	185,323	$	52,899	$	336,486
Tax rate adjustment		5,469			(599	)		13,498		5,639		20,429
Impairment		651			(175	)		—		470		—
Restructuring and termination costs		—			—			2,765		—		7,562
New strategy implementation		(57	)		1,459			11,584		1,447		13,995
Subactivity		1,742			2,644			—		4,467		—
PPA Energy		17,024			(16,513	)		—		—
Adjusted profit attributable to the parent	$	56,737		$	7,807		$	213,170	$	64,922	$	378,472

Adjusted diluted profit per share:

	Quarter Ended			Quarter Ended			Quarter Ended		Six Months Ended		Six Months Ended
	June 30, 2023			March 31, 2023			June 30, 2022		June 30, 2023		June 30, 2022
Diluted profit per ordinary share	$	0.17		$	0.11		$	0.98	$	0.28	$	1.78
Tax rate adjustment		0.03			(0.00	)		0.08		0.03		0.12
Impairment		0.00			(0.00	)		—		0.00		—
Restructuring and termination costs		—			—			0.02		—		0.04
New strategy implementation		(0.00	)		0.01			0.06		0.01		0.08
Subactivity		0.01			0.01			—		0.02		—
PPA Energy		0.09			(0.09	)		—		—
Adjusted diluted profit per ordinary share	$	0.30		$	0.05		$	1.14	$	0.34	$	2.02

Ferroglobe Reports Strong Second Quarter 2023 Financial Results