Be Ready for Industrial Metals & Minerals Stock: Ferroglobe PLC’s (NASDAQ:GSM)

On 11 Sep 2019, Ferroglobe PLC’s (NASDAQ:GSM) has shown upward/downward moved of +0.81% and ended the last trade at $1.2400. The trading volume was recorded to 810,073 shares as compared to average traded volume of 451,560 shares.

Ferroglobe PLC (GSM) recently stated results for the second quarter of 2019.

Earnings Highlights

In Q2 2019, Ferroglobe posted a net loss of $(43.7M), or $(0.24) per share on a fully diluted basis. On an adjusted basis, Q2 2019 net loss was $(22.2)M, or $(0.13) per share on a fully diluted basis.

Q2 2019 stated EBITDA was $(7.1M), down from $3.3M in the previous quarter. On an adjusted basis, Q2 2019 EBITDA was $5.0M; up from Q1 2019 adjusted EBITDA of $3.3M. The Company stated an adjusted EBITDA margin of 1.2% for Q2 2019, contrast to an adjusted EBITDA margin of 0.7% for Q1 2019.

Cash Flow and Balance Sheet

Cash used in operations during Q2 2019 was $(37.4)M, with working capital increasing by $59.3M. Net debt was $478.3M as of June 30, 2019, up from $419.7M as of March 31, 2019.

Pedro Larrea, Ferroglobe’s Chief Executive Officer commented, “The decline in end market demand continues to put pressure on our sales prices resulting in disappointing results for the quarter.  We expect these headwinds to linger in the second half of the year.  Accordingly, we are focused on operational adjustments and cash generating initiatives, designed to reduce the Company’s risk profile and provide adequate resources to weather this cyclical downturn.”  Mr. Larrea continued, “We are also cutting silicon production and monitoring other parts of the business for further cost reductions and operating efficiencies. The inherent flexibility in the Company’s operating platform and product base is key to positioning the Company for recovery.”

Cost of Sales

Cost of sales was $292.4M in Q2 2019, a decrease from $329.4M from Q1 2019.  Cost of sales as a percentage of sales reduced to 71.4% in Q2 2019 from 73.6% for Q1 2019.

Other Operating Expenses

Other operating expenses were $62.9M in Q2 2019, a raise from $53.9M from Q1 2019, which is primarily Because of contract termination costs.

Net Loss Attributable to the Parent

In Q2 2019, net loss attributable to the Parent was $(40.8)M, or $(0.24) per diluted share, contrast to a net loss attributable to the Parent of $(26.8)M, or $(0.16) per diluted share in Q1 2019.

Adjusted EBITDA

In Q2 2019, adjusted EBITDA was $5.0M, or 1.2% of sales, contrast to adjusted EBITDA of $3.3M, or 0.7% of sales in Q1 2019.

GSM is recorded at 0.10 and the relative strength index of the stock stands 43.90. The stock price is going above to its 52 week low with 11.71% and lagging behind from its 52 week high with -85.56%.

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