Q1 2026 Ferroglobe PLC Earnings Call

May 6, 2026

Operator: Good morning, ladies and gentlemen. Welcome to Ferroglobe's Q1 2026 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference call may be recorded. I would now like to turn the call over to Alex Rotonen, Ferroglobe's Vice President of Investor Relations. You may begin.

Speaker #1: As a reminder, this conference call may be recorded. I would now like to turn the call over to Alex Rotonen, Ferroglobe's Vice President of Investor Relations, who may begin.

Speaker #2: Good morning, everyone, and thank you for joining Ferroglobe's first quarter 2026 conference call. Joining me today are Marco Levi, our Chief Executive Officer; and Beatriz Garcia-Cos, our Chief Financial Officer.

Alex Rotonen: Good morning, everyone, and thank you for joining Ferroglobe's Q1 2026 conference call. Joining me today are Marco Levi, our Chief Executive Officer, and Beatriz García-Cos, our Chief Financial Officer. Before we get started with prepared remarks, I'm going to read a brief statement. Please turn to slide 2 at this time. Statements made by management during this conference call that are forward-looking are based on current expectations. Factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and exhibits to those filings, which are available at ferroglobe.com. In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, adjusted net debt, and adjusted diluted earnings per share, among other non-IFRS measures. Reconciliations of non-IFRS measures may be found in our most recent SEC filings.

Alex Rotonen: Good morning, everyone, and thank you for joining Ferroglobe's Q1 2026 conference call. Joining me today are Marco Levi, our Chief Executive Officer, and Beatriz García-Cos, our Chief Financial Officer. Before we get started with prepared remarks, I'm going to read a brief statement. Please turn to slide two at this time. Statements made by management during this conference call that are forward-looking are based on current expectations. Factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and exhibits to those filings, which are available at ferroglobe.com. In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, adjusted net debt, and adjusted diluted earnings per share, among other non-IFRS measures. Reconciliations of non-IFRS measures may be found in our most recent SEC filings.

Speaker #2: Before we get started with prepared remarks, I'm going to read a brief statement. Please turn to slide 2 at this time. Statements made by management during this conference call that are forward-looking are based on current expectations.

Speaker #2: Factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings, and the exhibits to those filings, which are available at ferroglobe.com.

Speaker #2: In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, adjusted net debt, and adjusted diluted earnings per share, among other non-IFRS measures.

Speaker #2: Reconciliations of non-IFRS measures may be found in our most recent SEC filings. We'll be participating in the B. Reilly Annual Investor Conference in Los Angeles on May 20th.

Alex Rotonen: We'll be participating in the B. Riley Annual Investor Conference in Los Angeles on 20 May. We hope to see you there. With that, I'll turn the call over to Marco.

Speaker #2: We hope to see you there. With that, I'll turn the call over to Marco.

Speaker #3: Thank you, Alex, and thank you all for joining us today. We appreciate your continued interest in Ferroglobe. Overall, market conditions for Ferrolois have become more favorable.

Marco Levi: Thank you, Alex Rotonen, and thank you all for joining us today. We appreciate your continued interest in Ferroglobe. Overall, market conditions for ferroalloys have become more favorable, highlighted by our Q1 silicon-based alloys volumes, which grew 18% sequentially to the highest level in nearly 5 years. This segment was driven by growth in ferrosilicon in both Europe and North America. Our manganese-based segment was also strong, with volumes increasing 6%. The improvement in Europe was helped by recently implemented safeguards. Anti-dumping and countervailing duties, tariffs, and rising steel production have all strengthened demand for ferrosilicon in the US. This creates a more supportive silicon-based alloys market environment across our core regions. While the silicon metal market in Europe remains under continuous attack from China and its proxy, Angola, we are encouraged by recent comments.

Marco Levi: Thank you, Alex Rotonen, and thank you all for joining us today. We appreciate your continued interest in Ferroglobe. Overall, market conditions for ferroalloys have become more favorable, highlighted by our Q1 silicon-based alloys volumes, which grew 18% sequentially to the highest level in nearly five years. This segment was driven by growth in ferrosilicon in both Europe and North America. Our manganese-based segment was also strong, with volumes increasing 6%. The improvement in Europe was helped by recently implemented safeguards. Anti-dumping and countervailing duties, tariffs, and rising steel production have all strengthened demand for ferrosilicon in the U.S. This creates a more supportive silicon-based alloys market environment across our core regions. While the silicon metal market in Europe remains under continuous attack from China and its proxy, Angola, we are encouraged by recent comments.

Speaker #3: Highlighted by our first quarter silicon-based alloys volumes, which grew 18% sequentially to the highest level in nearly five years. This segment was driven by growth in FerroSilicon in both Europe and North America.

Speaker #3: Our manganese-based segment was also strong with volumes increasing 6%. The improvement in Europe was helped by recently implemented safeguards. Antidumping and counterveiling duties tariffs and rising steel production have all strengthened demand for FerroSilicon in the US.

Speaker #3: This creates a more supportive silicon-based alloys market environment across our core regions. While the silicon-metal market in Europe remains under continuous attack from China and its proxy, Angola, we are encouraged by recent comments.

Marco Levi: European Trade Commissioner, Maroš Šefčovič, has reaffirmed a commitment to protecting the silicon metal industry and is actively evaluating measures addressing imports from China and Angola. In the U.S., the silicon metal cases covering Angola and Laos are now final, with anti-dumping and anti-circumvention duties of 78.5% and 173.5% respectively, including the general tariff of 10%. The U.S. Department of Commerce is expected to set the final rates for Australia and Norway in late June, with the U.S. International Trade Commission expected to announce its final decision in late July. These measures are critical to ensuring a level playing field and supporting the long-term health of our industry. Given recent events in Venezuela, we see a compelling opportunity to reopen our operations there. These assets offer strategic proximity to the U.S. market, along with access to low-cost energy, raw materials, and attractive logistics.

Speaker #3: The European Trade Commissioner, Mirosavkovich, has reaffirmed a commitment to protecting the silicon-metal industry and is actively evaluating measures addressing imports from China and Angola.

Speaker #3: In the US, the silicon-metal case is covering Angola and Laos, are now final with antidumping and anti-circumvention duties of 78.5% and 173.5% respectively. Including the general tariff of 10%.

Speaker #3: The Department of Commerce is expected to set the final rates for Australian-Norway in late June, with the US ITC expected to announce its final decision in late July.

Speaker #3: These measures are critical to ensuring a level playing field and supporting the long-term health of our industry. Given recent events in Venezuela, we see a compelling opportunity to reopen our operations there.

Speaker #3: These assets offer strategic proximity to the US market, along with access to low-cost energy raw materials and attractive logistics. We are actively pushing a potential restart of our operation in Venezuela to take advantage of its geographic proximity to the US.

Marco Levi: We are actively pursuing a potential restart of our operation in Venezuela to take advantage of its geographic proximity to the US. At the same time, we are evaluating CapEx requirements, energy availability, and cost structure to determine the viability of restarting. As a reminder, we have three large ferrosilicon furnaces with a combined capacity of 90,000 tons, and the flexibility to convert them to silicon metal when market conditions dictate. In addition, there is also a 30,000 ton manganese alloy furnace originally built as a silicon metal furnace. We are strategically positioning Ferroglobe to scale our platform to increase our capacity utilization. Our core capabilities, large scale electric furnace operations, advantage access to raw materials, and decades of proprietary process expertise are directly applicable to a broader range of critical materials and alloys. This is why we are actively pursuing expansion beyond our traditional portfolio.

Marco Levi: We are actively pursuing a potential restart of our operation in Venezuela to take advantage of its geographic proximity to the U.S. At the same time, we are evaluating CapEx requirements, energy availability, and cost structure to determine the viability of restarting. As a reminder, we have three large ferrosilicon furnaces with a combined capacity of 90,000 tons, and the flexibility to convert them to silicon metal when market conditions dictate. In addition, there is also a 30,000 ton manganese alloy furnace originally built as a silicon metal furnace. We are strategically positioning Ferroglobe to scale our platform to increase our capacity utilization. Our core capabilities, large scale electric furnace operations, advantage access to raw materials, and decades of proprietary process expertise are directly applicable to a broader range of critical materials and alloys. This is why we are actively pursuing expansion beyond our traditional portfolio.

Speaker #3: At the same time, we are evaluating CapEx requirements and energy availability and cost structure to determine the viability of restarting. As a reminder, we have three large FerroSilicon furnaces with a combined capacity of 90,000 tons, and the flexibility to convert them to silicon metal when market conditions dictate.

Speaker #3: In addition, there is also a 30,000-ton manganese alloy furnace originally built as a silicon-metal furnace. We are strategically positioning Ferroglobe to scale our platform to increase our capacity utilization.

Speaker #3: Our core capabilities: large-scale electric furnace operations, advantaged access to raw materials, and decades of proprietary process expertise are directly applicable to a broader range of critical materials and alloys.

Speaker #3: This is why we are actively pushing expansion beyond our traditional portfolio. We are building on a proven base, not starting from scratch. Our history of producing materials such as magnesium and ferrochrome combined with deep expertise in high-temperature reduction and related processes gives us a strong technical and operational foundation.

Marco Levi: We are building on a proven base, not starting from scratch. Our history of producing materials such as magnesium and ferrochrome, combined with deep expertise in high temperature reduction and related processes, give us a strong technical and operational foundation. This is a natural evolution of our business. The same industrial platform that supports our leadership in silicon metal and ferroalloys can be redeployed to address growing supply gaps in other strategically important materials. As demand accelerates and supply chains realign, this optionality materially extends Ferroglobe growth runway. Our Western asset footprint is a clear competitive advantage. It places us at the center of rising demand fueled by higher defense spending, AI adoption, the energy transition, and the need for secure, domestically anchored supply chains. Recent US-EU agreements on critical materials reinforce a clear message: trusted local production is now a requirement, not a preference.

Marco Levi: We are building on a proven base, not starting from scratch. Our history of producing materials such as magnesium and ferrochrome, combined with deep expertise in high temperature reduction and related processes, give us a strong technical and operational foundation. This is a natural evolution of our business. The same industrial platform that supports our leadership in silicon metal and ferroalloys can be redeployed to address growing supply gaps in other strategically important materials. As demand accelerates and supply chains realign, this optionality materially extends Ferroglobe growth runway. Our Western asset footprint is a clear competitive advantage. It places us at the center of rising demand fueled by higher defense spending, AI adoption, the energy transition, and the need for secure, domestically anchored supply chains. Recent U.S.-E.U. agreements on critical materials reinforce a clear message: trusted local production is now a requirement, not a preference.

Speaker #3: This is a natural evolution of our business. The same industrial platform that supports our leadership in silicon metal and ferro alloys can be redeployed to address growing supply gaps in other strategically important materials.

Speaker #3: As demand accelerates and supply chains realign, this optionality materially extends Ferroglobe's growth runway. Our Western asset footprint is a clear competitive advantage. It places us at the center of rising demand fueled by higher defense spending.

Speaker #3: AI adoption, the energy transition, and the need for secure domestically anchored supply chains. Recent US-EU agreements on critical materials reinforce a clear message: trusted local production is now a requirement, not a preference.

Speaker #3: Given that, it is crucial to understand what happened to critical materials production in the West and how it lost its advantage. It was not a success to mines and critical minerals was lost.

Marco Levi: Given that, it is crucial to understand what happened to critical materials production in the West, and how it lost its advantage. It was not that access to mines and critical minerals was lost. Rather, China became the dominant processor of these materials into critical materials. The market structure shifted to favor price over all other factors, rendering Western production unprofitable. All that is changing now to favor the reliability of a trusted supply chain. Taken together, this positions Ferroglobe to play a larger role in the next phase of industrial and geopolitical realignment, leveraging assets we already own, capabilities we already have, and markets that are moving decisively in our favor. Moving to Coreshell. We continue to develop our partnership to advance the use of silicon in lightweight, high capacity, and fast-charging batteries for EVs and drones.

Speaker #3: Rather, China became the dominant processor of these materials into critical materials. And the market structure shifted to favor price overall other factors, rendering Western production unprofitable.

Speaker #3: All that is changing now to favor the reliability of a trusted supply chain. Taken together, this positions Ferroglobe to play a larger role in the next phase of industrial and geopolitical realignment.

Speaker #3: Leveraging assets we already own, capabilities we already have, and markets that are moving decisively in our favor. Moving to core shell. We continue to develop our partnership to advance the use of silicon in lightweight, high-capacity, and fast-charging batteries for EVs and drones.

Marco Levi: In March, we co-led a Series B round with a $7 million investment, increasing our total to $70 million, and representing an ownership stake of approximately 10%. Coreshell started production from its current 60 ampere plant, marking an important milestone, and has already begun selling batteries to robotics and defense customers. In addition, Coreshell multi-year sampling and qualification agreements with automotive OEM customers, positioning it to participate in the emerging growth area in critical materials. In March, we signed a binding term sheet for a multi-year silicon metal supply agreement with Coreshell. Overall, we are operating in an improving environment for ferroalloys, executing on our strategic priorities and positioning the company for sustainable growth across both our core and emerging businesses. Next slide, please.

Speaker #3: In March, we co-led a series B round with a $7 million investment, increasing our total to $17 million. And representing an ownership stake of approximately 10%.

Speaker #3: Core shell started production from its current 60 ampere plant marking an important milestone. And as already begun selling batteries to robotics and defense customers.

Speaker #3: In addition, core shell assigned multi-year sampling and qualification agreements with automotive OEM customers positioning it to participate in the emerging growth area in critical materials.

Speaker #3: In March, we signed a binding term sheet for a multi-year silicon metal supply agreement with core shell. Overall, we are operating in an improving environment for ferro alloys executing on our strategic priorities and positioning the company for sustainable growth across both our core and emerging businesses.

Speaker #3: Next slide, please. Strong ferro alloy volume growth in the first quarter drove shipments up 7% to 177,000 tons. Primarily due to an 18% increase in silicon-based alloys.

Marco Levi: Strong ferroalloy volume growth in Q1 drove shipments up 7% to 177,000 tons, primarily due to an 18% increase in silicon-based alloys. This resulted in a 6% increase in quarterly revenue to $348 million. Adjusted EBITDA declined to $3 million, and free cash flow was a -$60 million. Beatriz will provide more detailed comments in her section. Next slide, please. I will start updating our segments from silicon metal. The silicon metals market remains under pressure due to continued aggressive pricing by imports, mainly from China and Angola. These dynamics primarily impacted Europe, as silicon metal was excluded from recent safeguard protections. As a result, total volumes declined 6% from Q4, and we decided not to participate at uneconomic prices.

Speaker #3: This resulted in a 6% increase in quarterly revenue to $348 million. Adjusted EBITDA declined to $3 million, and free cash flow was a negative $16 million.

Speaker #3: Beatriz will provide more detailed comments in her section. Next slide, please. I will start updating our segments from silicon metal. The silicon metals market remains under pressure due to continued aggressive pricing by imports, mainly from China and Angola.

Speaker #3: This dynamics primarily impacted Europe as silicon metal was excluded from recent safeguard protections. As a result, total volumes declined 6% from the fourth quarter, and we decided not to participate at uneconomic prices.

Speaker #3: We partially mitigated this by converting three silicon metal furnaces to ferro silicon allowing us to capitalize on better market conditions in this segment. Two of the furnaces were in Europe and one in the US was converted last year.

Marco Levi: We partially mitigated this by converting 3 silicon metal furnaces to ferrosilicon, allowing us to capitalize on better market conditions in this segment. 2 of the furnaces were in Europe and 1 in the US was converted last year. This strategic shift underscores the value of Ferroglobe's flexible operating model and our ability to respond dynamically to evolving market conditions. Silicon metal volumes declined 2,000 tons to approximately 31,000 tons in Q1. North American volumes grew a solid 15%, while EU volumes continued to face predatory import competition, resulting in a 23% decline. In addition to China and Angola, low price imports in Q1 came from Malaysia, Kazakhstan, and Laos. Norway is the largest importer of silicon metal to the EU, accounting for more than 50% of total imports. The polysilicon market remains weak, with polysilicon prices reflecting soft demand and oversupply.

Speaker #3: This strategic shift underscores the value of Ferroglobe's flexible operating model and our ability to respond dynamically to evolving market conditions. Silicon metal volumes declined 2,000 tons to approximately 31,000 tons in the first quarter.

Speaker #3: North American volumes grew a solid 15%, while EU volumes continued to face predatory import competition resulting in a 23% decline. In addition to China and Angola, low-priced imports in Q1 came from Malaysia, Kazakhstan, and Laos.

Speaker #3: Norway is the largest importer of silicon metal to the EU, accounting for more than 50% of total imports. The polysilicon market remains weak. With silicon prices reflecting soft demand, an oversupply.

Speaker #3: The aluminum segment, on the other hand, is showing initial signs of improvement as some Middle Eastern production is offline due to the Iran conflict.

Marco Levi: The aluminum segment, on the other hand, is showing initial signs of improvement as some Middle Eastern production is offline due to the Iran conflict. The chemical sector remains soft due to Chinese imports of siloxanes and silicones into Europe and in the US. UX Index prices declined 3% in Q1 compared to Q4, while EU prices declined by 6%. Although we remain cautious about the pace of recovery in Europe, pending more decisive trade actions from the European Trade Commission, recent comments from the Trade Commissioner regarding protecting the EU market are encouraging. In the US, we expect the market conditions to improve in H2 of 2026, bolstered by anti-dumping and countervailing measures.

Speaker #3: The chemical sector remains soft due to Chinese imports of siloxanes and silicones into Europe and in the US. UX index prices declined 3% in the first quarter, compared to the fourth quarter.

Speaker #3: While EU prices declined by 6%. Although we remain cautious about the pace of recovery in Europe, pending more decisive trade actions from the European Trade Commission, recent comments from the Trade Commissioner regarding protecting the EU market are encouraging.

Speaker #3: In the US, we expect the market conditions to improve in the second half of 2026, bolstered by anti-dumping and countervailing measures. In the medium term, there is a significant growth opportunity for silicon metal in the US.

Marco Levi: In the medium term, there is a significant growth opportunity for silicon metal in the US, as Tesla aims to build a large, vertically integrated supply chain to produce 100 gigawatts of solar capacity by the end of 2028. Next slide, please. Silicon-based alloys volumes reached their highest levels since Q2 2021, with total shipments increasing 18% to 61,000 tons, driven by 21% growth in Europe, despite a contraction in steel production in Q1. The North American growth was equally strong at 20%. After a 22% price jump from late October to early December, following the safeguard announcement, Europe ferrosilicon index prices declined 9% in Q1. The reason for the recent price decline is two-fold. First, import volumes were high prior to November safeguards, leading to elevated inventory levels.

Speaker #3: As Tesla aims to build a large, vertically integrated supply chain to produce 100 gigawatts of solar capacity by the end of 2028. Next slide, please.

Speaker #3: Silicon-based alloys volumes reached their highest level since the second quarter of 2021. With total shipments increasing 18% to 61,000 tons, driven by 21% growth in Europe, despite a contraction in steel production in the first quarter.

Speaker #3: The North American growth was equally strong at 20%. After a 22% price jump from late October to early December following the safeguard announcement, EU ferro silicon index prices declined 9% in the first quarter.

Speaker #3: The reason for the recent price decline is twofold. First, import volumes were high prior to November safeguards, leading to elevated inventory levels. Second, the use of low-priced silicon metal by steel producers to replace ferro silicon is disrupting ferro silicon market dynamics.

Marco Levi: Second, the use of low price silicon metal by steel producers to replace ferrosilicon is disrupting ferrosilicon market dynamics. Yet, they are still up 9% since the pre-safeguard announcement, and we expect pricing to be positively impacted in H2 due to safeguards as excess inventory is depleted. The US ferrosilicon index was flat in Q1. As I mentioned earlier, we converted one silicon furnace in US and two additional furnaces in Europe to ferrosilicon to take advantage of shifting demand. Overall, we're optimistic that 2026 will be a strong year for silicon-based alloy volumes for Ferro. An additional catalyst for H2 of the year is anticipated from enhanced EU steel safeguards, which are expected to increase EU steel production by 12 to 15 million tons annually, representing approximately 10% growth.

Speaker #3: Yet, there are still up 9% since the pre-safeguard announcement. And we expect pricing to be positively impacted in the second half due to safeguards as excess inventory is depleted.

Speaker #3: The US ferro silicon index was flat in the first quarter. As I mentioned earlier, we converted one silicon furnace in the US into additional furnaces in Europe.

Speaker #3: Two ferro silicon to take advantage of shifting demand. Overall, we're optimistic that 2026 will be a strong year for silicon-based alloy volumes for Ferroglobe.

Speaker #3: An additional catalyst for the second half of the year is anticipated from enhanced EU steel safeguards. Which are expected to increase EU steel production by 12-15 million tons annually representing approximately 10% growth.

Marco Levi: These measures are expected to take effect on 1 July 2026. Next slide, please. Our Q1 manganese shipments posted a strong quarter with a 6% volume increase to 86,000 tons, up from 81,000 tons in the prior quarter, helped by safeguards. Europe accounts for the majority of the manganese sales. Manganese alloy index price surged after safeguards were announced in November and are up 18% since pre-safeguards, with year-to-date levels roughly flat. We are constructive about the 2026 manganese outlook and expect to report strong volumes for the remainder of the year. Strengthen steel safeguards are another catalyst, as they are expected to be implemented in July and improve EU demand. I would now like to turn the call over to Beatriz García-Cos, our Chief Financial Officer, to review the financial results in more detail. Beatriz?

Speaker #3: This measure is expected to take effect on July 1, 2026. Next slide, please. Our Q1 manganese shipments posted a strong quarter with a 6% volume increase to 86,000 tons up from 81,000 tons in the prior quarter.

Speaker #3: Helped by safeguards. Europe accounts for the majority of the manganese sales. Manganese alloy index price surged after safeguards were announced in November and are up 18% since pre-safeguards.

Speaker #3: With year-to-date levels roughly flat. We are constructive about the 2026 manganese outlook and expect to report strong volumes for the remainder of the year.

Speaker #3: Strengthened steel safeguards are another catalyst as they are expected to be implemented in July and improve EU demand. I would now like to turn the call over to Beatriz Garcia-Cos, our Chief Financial Officer to review the financial results in more detail.

Speaker #3: Beatriz.

Speaker #2: Thank you, Marco. Please turn to slide 9 for a review of the first quarter income statement. Total Q1 sales increased by 6% to 348 million dollars.

Beatriz García-Cos: Thank you, Marco. Please turn to slide 9 for a review of the Q1 income statement. Total Q1 sales increased by 6% to $348 million, driven by a 7% increase in total volumes, with ferroalloys being the primary driver. More specifically, silicon and manganese-based alloys volumes increased 18% and 6% respectively, while silicon metal shipments declined as we prioritize price discipline in Europe. Raw material and energy costs, after adjusting for the $5.5 million impact from power purchase agreement, declined to 66% of sales, down from 67% in Q4. As a reminder, the PPAs are marked to market using fair value, and we exclude them to better reflect comparable quarter-over-quarter performance. Despite a strong volume growth, adjusted EBITDA declined to $3 million.

Speaker #2: Driven by a 7% increase in total volumes, with ferro alloys being the primary driver. More specifically, silicon- and manganese-based alloys volumes increased 18% and 6%, respectively.

Speaker #2: While silicon metal shipments declined as we prioritize price discipline in Europe, raw material and energy costs—after adjusting for the $5.5 million impact from the power purchase agreement—declined to 66% of sales, down from 67% in the fourth quarter.

Speaker #2: As a reminder, the PP&As are marked to market using fair value. And we exclude them to better reflect comparable quarter-over-quarter performance. Despite a strong volume growth, adjusted EBITDA declined to 3 million dollars.

Beatriz García-Cos: Higher energy, transportation costs, and raw material inflation began to impact costs in March as a result of the conflict in Iran. Next slide, please. Silicon metal revenue declined 13% to $84 million due to a 6% reduction in volumes and a 7% fall in prices to $2,754 per ton. Adjusted EBITDA declined $3 million in the Q1 to an EBITDA loss of $2 million, resulting in a negative margin of 3%. The margin contraction was driven by lower realized prices, partially offset by improved costs in Canada and the restart of furnaces in Spain and France. Next slide, please. Silicon-based alloys revenue post another strong quarter, with an 18% increase to $122 million, driven by an 18% sequential increase in volumes to 61,000 tons.

Speaker #2: Higher energy transportation costs and raw material inflation began to impact costs in March. As a result of the conflict in Iran. Next slide, please.

Speaker #2: Silicon metal revenue declined 13% to 84 million dollars due to a 6% reduction in volumes and a 7% fall in prices to 2,750 dollars per ton.

Speaker #2: Adjusted EBITDA declined 3 million dollars in the first quarter to an EBITDA loss of 2 million dollars resulting in a negative margin of 3%.

Speaker #2: The margin contraction was driven by lower realized prices partially offset by improved cost in Canada and the restart of forglasses in Spain and France.

Speaker #2: Next slide, please. Silicon-based alloys revenue posted another strong quarter with an 18% increase to 122 million dollars. Driven by an 18% sequential increase in volumes to 61,000 tons.

Beatriz García-Cos: Realized prices were essentially flat with Q4 at $2,016 per ton. Adjusted EBITDA decreased by $9 million to $6 million sequentially due to higher production costs in Spain, energy and raw material costs in Spain and the US. Margins declined 9 percentage points to 6%. Next slide, please. Manganese-based alloys revenue increased 16% to $107 million from $93 million in the prior quarter. The improvement was due to a 9% increase in realized prices to $1,250 per ton and a 6% increase in volumes to 86,000 tons. Adjusted EBITDA in Q1 was $10 million, up from $9 million in Q4. Adjusted EBITDA margins remained solid at 9%.

Speaker #2: Realized prices were essentially flat with the fourth quarter at $2,016 per ton. Adjusted EBITDA decreased by $9 million to $6 million sequentially due to higher production cost in Spain. Energy and raw material costs in Spain and the US increased. Margins declined 9 percentage points to 6%.

Speaker #2: Next slide, please. Manganese-based alloys revenue increased 16% to 107 million dollars from 93 million dollars in the prior quarter. The improvement was due to a 9% increase in realized prices to 1,250 dollars per ton and a 6% increase in volumes to 86,000 tons.

Speaker #2: Adjusted EBITDA in the first quarter was 10 million dollars up from 9 million dollars in the fourth quarter. Adjusted EBITDA margins remained solid at 9%.

Beatriz García-Cos: Inflation in manganese ore, combined with higher transportation and energy costs, offset most of the price gains. While the Iran conflict continues to affect near-term logistics and raw material costs, we expect this cost to be temporary. Next slide, please. For Q1, our cash flow from operations was -$6 million due to a $13 million investment in working capital as we built inventory and increased accounts receivable balance to support higher volumes. We reduced our CapEx by $3 million to $11 million in Q4. For Q1, our free cash flow was -$16 million. Next slide, please. As announced previously, we increased Q1 dividend payout by 7% to $3 million, which was paid on 30 March.

Speaker #2: Inflation in manganese ore combined with higher transportation and energy costs offset most of the price gains. While the Iran conflict continues to affect near-term logistics and raw material costs we expect these costs to be temporary.

Speaker #2: Next slide, please. For the first quarter, our cash flow from operations was negative $6 million due to a $13 million investment in working capital as we built inventory and increased accounts receivable balance to support higher volumes.

Speaker #2: We reduced our CAPEX by 3 million dollars to 11 million dollars in the fourth quarter. For the first quarter, our free cash flow was negative 16 million dollars.

Speaker #2: Next slide, please. As announced previously, we increased Q1 dividend payout by 7% to 3 million dollars which was paid on March 30th. Our next dividend of 1.5 cents per share in line with the previous quarter is scheduled for June 29th payable to shareholders on record as of June 22nd.

Beatriz García-Cos: Our next dividend of $0.015 per share, in line with the previous quarter, is scheduled for 29 June, payable to shareholders on record as of 22 June. We fund strategic investments such as Coreshell to support near-term operating needs and long-term growth opportunities and repurchase a modest 5,000 shares in Q1. Although our net debt position increased to $55 million in Q1, we remain in a solid financial position to support our growth objectives. At this time, I will turn the call back to Marco.

Speaker #2: We fund strategic investments such as core shell to support near-term operating needs and long-term growth opportunities and repurchase a modest 5,000 shares in the first quarter.

Speaker #2: Although our net debt position increased to 55 million dollars in the first quarter we remain in a solid financial position to support our growth objectives.

Speaker #2: At this time, I will turn the call back to Marco.

Speaker #1: Thank you, Beatriz. Before opening the call to Q&A, I'd like to provide key takeaways from today's presentation on slide 15. We began to see the benefits of various trade measures in the first quarter as evidenced by stronger volumes of silicon-based alloys and manganese alloys.

Marco Levi: Thank you, Beatriz. Before opening the call to Q&A, I'd like to provide key takeaways from today's presentation on slide 15. We began to see the benefits of various trade measures in Q1, as evidenced by stronger volumes of silicon-based alloys and manganese alloys. Unfortunately, the prices still reflect an imbalanced market environment. We believe that the pricing will strengthen in H2 of the year, as we have said before. Ferroglobe is uniquely positioned to lead the next era of critical materials supply with the asset platform footprint and expertise to serve Western markets where trusted local production has become a global imperative. While geopolitical disruptions continue to create near-term volatility and pressure logistics and raw material costs, we believe these impacts are temporary.

Speaker #1: Unfortunately, the prices still reflect an imbalanced market environment. We believe that the pricing will strengthen in the second half of the year as we have said before.

Speaker #1: Ferroglobe is uniquely positioned to lead the next era of critical materials supply where the asset platform footprint and expertise to serve Western markets where trusted local production has become a global imperative.

Speaker #1: While geopolitical disruptions continue to create near-term volatility and pressure logistics and raw material costs, we believe these impacts are temporary. The structural improvements underway in our markets such as strengthened steel safeguards, CBAM, and onshoring underpin our confidence in a stronger second half and longer-term value creation.

Marco Levi: The structural improvements underway in our markets, such as strengthened steel safeguards, CBAM, and onshoring, underpin our confidence in a stronger H2 and longer-term value creation. Operator, we are ready for questions.

Speaker #1: Operator, we are ready for questions.

Speaker #3: Thank you. If you wish to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. If you wish to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We will take our first question. The question comes from Martin Englert from Seaport Research Partners. Please go ahead. Your line is open.

Speaker #3: To withdraw your question, please press star 11 again. We will take our first question and the question comes from Martin Englert from from Seaport Research Partners.

Speaker #3: Please go ahead, your line is open.

Martin Englert: Hello. Good day, everyone. I have a question.

Speaker #4: Hello, good day everyone. I have a lot of questions.

Marco Levi: Hello.

Beatriz García-Cos: Hey, Martin.

Speaker #5: Hey Martin.

Martin Englert: Good to hear from you again. You had discussions with the US and/or EU governments regarding potential grant opportunities for growth when it comes to critical materials, and then if you could just touch on what specific metals or alloys you're most strongly considering, maybe pursuing here.

Speaker #4: Good to hear from you again. I have a you had discussions with the US and/or EU governments regarding potential grant opportunities for growth when it comes to critical materials and then if you could just touch on what specific metals are alloys you're most strongly considering maybe pursuing here.

Marco Levi: Yeah. I mean, the different departments, government departments in US, we have been talking to. The recent agreement between US and Europe on planning this critical material partnership confirmed the intent of governments to increase the independence from China on critical materials. Today, we produce coal, silicon metal, and manganese alloys, which are critical. In the past, we have been producing other materials in our furnaces, in particular ferrosilicon chrome and ferrochrome. A long time ago, FerroAtlántica was producing magnesium in Europe. On top of that, we have technologies that can be applied to our furnaces to produce other critical materials for Europe, critical minerals for US.

Speaker #1: Yeah, I mean there are different departments government departments in the US we have been talking we have been talking to and it's and there isn't agreement between US and Europe on planning these critical critical material partnership confirmed intent of governments to increase the independence from from China on on critical materials we have been today we produce we produce gold silicon metal and manganese alloys which are critical but in the past we have been producing other materials in our furnaces in particular ferro silicon chrome and ferro chrome and a long time ago ferro atlantica was producing magnesium in in in Europe but on top of that we we have technologies that can be applied to our furnaces to produce other critical materials for Europe critical minerals for for US at this stage I cannot be disclosing which materials we we're going to produce but I can tell you that we went through a serious process where we started from more than than 100 options and now we are down to new 10 critical materials that we can produce either by in the current furnaces that we have or in slightly modified furnaces with minimum CAPEX and in some cases like magnesium we will need to to invest in a new plant.

Marco Levi: At this stage, I cannot be disclosing which materials we're gonna produce, but I can tell you that we went through a serious process where we started from more than 100 options, and now we are down to new 10 critical materials that we can produce either by in the current furnaces that we have or in slightly modified furnaces with minimum CapEx. In some cases, like magnesium, we will need to invest in a new plant. What we are doing right now, we are validating the market attractiveness of these 10 new materials. We plan to drive our conclusions in the next few weeks when we present to the board how we intend to start these critical minerals diversification at Ferroglobe.

Speaker #1: What we are doing right now we are validating the market attractiveness of these 10 new materials and we we plan to drive our conclusions in in the next few weeks when we present to to the board how we intend to start this critical minerals diversification at Ferroglobe.

Martin Englert: What, and you touched on this, but the maybe goalposts for associated CapEx, and correct me if I misheard you, but it sounds like several of the options for materials that you're considering might be very minimal, where the furnaces wouldn't need much. Others sound like they're fairly nominal investments with some furnace upgrades. I believe you said magnesium would require more substantial investment, and I believe you said a new plant. Just goalposts on if you would decide to go forward, is it something in the single digits, millions of dollars at the low end to tens of millions? What would it look like on the high end with CapEx?

Speaker #4: What and you touched on this but the maybe goalpost for associated CAPEX and correct me if I misheard you but it sounds like several of the options for materials that you're considering might be very minimal where the furnaces wouldn't need much others sound like they're fairly nominal investments with some furnace upgrades but then I believe you said magnesium would require more substantial investment and I believe you said a new plant so just goalposts on if you would decide to go forward is is something and the single digits millions of dollars at the low end to tens of millions and then what would it look like on the high end with CAPEX?

Marco Levi: We are consolidating the numbers right now to go to the board with some NPV estimates to select the most attractive opportunities. You got it right. Some of these materials really don't need further investment. Probably they need some new permits because we have not been producing these products for a while. We need to assess the reliability of raw material, new raw material sources. You are correct. For some of these materials, we don't need any additional CapEx. For other materials, we need a little bit of CapEx in the single-digit million dollars. Of course, due to the pressure that we have from governments to start the production of these products, we will give priority to the easier and more profitable to produce critical materials or minerals.

Speaker #1: Well we are we are consolidating the numbers right now to go to the board with some NPD estimates to to select the most attractive opportunities you got it right some of these materials really don't need further investment probably they need some new permits because we have not been producing these products for a while we need to assess the reliability of raw material new raw material sources and you are correct some for some of these materials we don't need any additional CAPEX for other materials we need a little bit of CAPEX in the single digits million dollars of course due to the pressure that we have from governments to start the production of of these products we will give priority to the to the to the easier and more produce critical materials or minerals.

Speaker #4: Okay. Thank you for that detail. Be curious to learn more over the coming weeks or months as you have more to share when it comes to the increase the logistical expenses are you implementing surcharges across your product offering to cover both the inbound and out outbound inflation associated with this?

Martin Englert: Okay. Thank you for that detail. Be curious to learn more over the coming weeks or months as you have more to share. When it comes to the increased logistical expenses, are you implementing surcharges across your product offering to cover both the inbound and outbound inflation associated with this?

Speaker #1: Yes we are implementing surcharges both in Europe and in the US we are implementing a surcharge of 30 euros per ton in Europe and 40 dollars per ton in the US with different level of of acceptance there there are businesses like chemicals who are doing that they're more used to this practice other businesses like like steel which are much more resistant to that I think that anyway in the in the next few weeks we are going to be forced to increase prices across our our product mix as well because the the prices that we that we see today particularly in Europe particularly on silicon metal and ferro silicon are simply unacceptable for for everybody so I think the market should move as and there is a lot of cost pressure coming from freight gas is influencing the energy cost and all the critical raw materials of our supply chain have gone up so we need to we need to try to pass this increases through the supply chain.

Marco Levi: Yes, we are implementing surcharges both in Europe and in the US. We're implementing a surcharge of EUR 30 per ton in Europe and $40 per ton in the US, with different level of acceptance. There are businesses like chemicals who are doing that. They're more used to this practice. Other businesses like steel, which are much more resistant to that. I think that, anyway, in the next few weeks, we are gonna be forced to increase prices across our product mix as well because the prices that we see today, particularly in Europe, particularly on silicon metal and ferrosilicon, are simply unacceptable for everybody. I think the market should move as and there is a lot of cost pressure coming from freight.

Marco Levi: Gas is influencing the energy cost. All the critical raw materials of our supply chain have gone up. We need to try to pass these increases through the supply chain.

Martin Englert: When it comes to the pricing dynamic, I mean, within the silicon-based alloys business, there's been fairly favorable trade measures across your asset footprint. Underlying demand seems like it's pretty favorable or moving in a better, quite a bit better direction. What do you think is the inhibiting factor that hasn't allowed you to raise prices thus far in the EU and US market for products like ferrosilicon?

Speaker #4: When it comes to the pricing dynamic I mean within the silicon-based alloys business there's been fairly favorable trade measures across your asset footprint underlying demand seems like it's pretty favorable or moving in a better quite a bit better direction what do you think is the inhibiting factor that hasn't allowed you to raise prices thus far and the EU and US market for products like ferro silicon?

Speaker #1: Yeah I would say there there there we have to consider different dynamics here in in in Europe before Safeguards were announced a lot of ferro silicon has been moved by the usual countries and inventories were were were pretty high the the the second point is that Angola has been switching furnaces to ferro silicon dumping ferro silicon in Europe Angola is not subject to any any kind of Safeguard the third element due to the low price of silicon metal in Europe we have seen significant ferro silicon volumes being converted by the steelmakers to silicon metal and we have seen imports in the first quarter from from Malaysia and Kazakhstan going up so these are the main factors that have prevented the the consolidation of the price increase that happened immediately after the Safeguards on on ferro silicon in in the US I think is now is really a a matter of of of time with the recovery of the steel consumption in US the the the first quarter numbers show growth in US in in steel so we we expect pricing to become more robust on ferro silicon in US near term.

Marco Levi: Yes. As I said, there we have to consider different dynamics here. In Europe, before safeguards were announced, a lot of ferrosilicon has been moved by the usual countries, and inventories were pretty high. The second point is that Angola has been switching furnaces to ferrosilicon, dumping ferrosilicon in Europe. Angola is not subject to any kind of safeguard. The third element, due to the low price of silicon metal in Europe, we have seen significant ferrosilicon volumes being converted by the steelmakers to silicon metal. We have seen imports in the first quarter from Malaysia and Kazakhstan going up. These are the main factors that have prevented the consolidation of the price increase that happened immediately after the safeguards on ferrosilicon.

Marco Levi: In the US, I think is now really a matter of time. With the recovery of the steel consumption in US, the Q1 numbers show growth in US in steel. We expect pricing to become more robust on ferrosilicon in US near term.

Speaker #4: Okay I appreciate the caller thank you and good luck.

Martin Englert: Okay. I appreciate the color. Thank you and good luck.

Speaker #1: Thank you Martin.

Marco Levi: Thank you, Martin.

Speaker #2: Thank you. Once again if you wish to ask a question please press star one one on your telephone. We will take our next question.

Operator: Thank you. Once again, if you wish to ask a question, please press star one one on your telephone. We will take our next question. The question comes from the line of Nick Giles from B. Riley Securities. Please go ahead. Your line is open.

Speaker #2: And the question comes from the line of Nick Giles from B Riley Securities. Please go ahead your line is open.

Marco Levi: Hi, Nick.

Speaker #5: Hi Nick.

Operator: Hey, Nick.

Beatriz García-Cos: Hey, Nick.

Speaker #6: Hey Nick.

Operator: Yeah. Thank you, operator. Hi everyone. Appreciate you did this morning. I guess just following up on some of Martin's questions. You know, when we think about you pursuing new critical minerals, you know, with something like a price floor or government related offtake or stockpiling efforts, would that be a part of the decision matrix, or is it really more a factor of kind of CapEx requirements and something more on the grant side? Just appreciate any color there.

Nick Giles: Yeah. Thank you, operator. Hi everyone. Appreciate you did this morning. I guess just following up on some of Martin's questions. You know, when we think about you pursuing new critical minerals, you know, with something like a price floor or government related offtake or stockpiling efforts, would that be a part of the decision matrix, or is it really more a factor of kind of CapEx requirements and something more on the grant side? Just appreciate any color there.

Speaker #7: Yeah thank thank you operator. Hi hi everyone. I appreciate the update this morning. I guess just following up on some of Martin's questions you know when we think about you pursuing new critical minerals you know with something like a price floor or government-related offtake or stockpiling efforts would that be a part of the decision matrix or is it really more a factor of kind of CapEx requirements and and something more on the grant side?

Speaker #7: Just appreciate any color there.

Marco Levi: Well, we are trying to be as fast as possible here, and clearly we count on government's support. Like I mentioned when I replied to Martin Englert, Nick, we are looking at what we can control now, and what we can control is which technologies are available to us, which technologies can be then implemented with minimum investment or zero investment, and current market attractiveness for these products. Clearly, we I think pretty soon, deals like the critical material partnership between US and Europe will have tremendous weight on our decisions and strategy implementation. When you look at this kind of deal, yes, you talk about potential decision on price floors for these critical minerals in US and Europe. They're talking about joint mapping, meaning identifying new resource deposits in our geographies.

Speaker #1: Well we are we are trying to be as fast as possible here and and clearly we count on government's support but like like I mentioned when I I replied to Martin Nick we are looking at what we can control now and what we can control is which technologies are available to us which technologies can be then implemented we we minimum investment or zero investment and market current market attractiveness for these products.

Speaker #1: Clearly we I think pretty soon deals like the critical material partnership between US and Europe will have tremendous weight on our decisions and and strategy implementation because when you look at this kind of deal yes you talk about potential decision on price floors for these critical minerals in US and Europe they're they're talking about joint mapping meaning identifying new resource deposits in our geographies we talk about defense so priority priority prioritizing NATO on the rest we talk about very interesting about harmonized ESNG especially when you talk about E this can be an harmonization of the environmental measures can be extremely interesting especially for the Europeans and and focus on on on recycling is the other another key element of the deal so we have to see what how these kind of agreement gets translated into measures being it either price levels or environmental limits or whatever else refers to what I just I just mentioned.

Marco Levi: We talk about defense, prioritizing NATO on the rest. We talk about very interesting, about harmonized ESG. Especially when you talk about E, this can be an harmonization of the environmental measures can be extremely interesting, especially for Europeans. A focus on recycling is another key element of the deal. We have to see how this kind of agreement gets translated into measures, being it either price levels or environmental limits or whatever else refers to what I just mentioned. For me, there is a fact that certain products that we can produce either in Europe or in the U.S. are not produced at all, like magnesium. There is no active production of magnesium in the West at this stage.

Speaker #1: But for me there is a fact that certain products that we can produce either in Europe or in US are not either are not produced at all like magnesium there is no active production of magnesium in the West at this stage there are a few startups but there is nothing or the the the current amount of products that are produced today are a minimal part of the demand so being the intention of Europe and US to be more back integrated on this materials I think will provide us a tremendous opportunity to position Ferroglobe like one of the key suppliers of critical minerals in the West.

Marco Levi: There are a few startups, but there is nothing. The current amount of products that are produced today are a minimal part of the demand. Being the intention of Europe and US to be more back integrated on these materials, I think will provide us a tremendous opportunity to position Ferroglobe like one of the key suppliers of critical minerals in the West.

Nick Giles: Marco, thanks a lot for all that detail. I really appreciate your perspective. Maybe switching gears, just, you know, you mentioned in your prepared remarks, Coreshell did another raise and you obviously participated. Attached to that or alongside that, there is a multi-year, silicon metal supply agreement. Can you just touch on maybe the overall progress for Coreshell, kind of, you know, what kind of customers are they signing and how you anticipate volumes within that supply agreement to ramp and what the margins look like there? I know that was a lot, but, I think you, I think you get where I'm going.

Speaker #7: Marco thanks a lot for all that detail. I really appreciate your perspective. Maybe switching gears just you know you mentioned you're prepared to march.

Speaker #7: Core shell did another raise and you you obviously participated in attached to that or alongside that there is a multi-year silicon metal supply agreement.

Speaker #7: So can you just touch on maybe the overall progress for Core Shell kind of you know what what kind of customers are they signing and how you anticipate volumes within that supply agreement to to ramp and what the margins look like there?

Speaker #7: I know that was a lot but I think you think you get where I'm going.

Speaker #1: Yeah I mean the the the the volumes are not going to be significant until OEMs qualify the 6AM per batteries that we estimate happening between the end of 2027 and 28.

Marco Levi: Yeah. I mean, the volumes are not gonna be significant until OEMs qualify the 60 ampere batteries that we estimate happening between the end of 2027 and 2028. Then we expect to develop business for by 2030, 2031 to a level of about 70,000 tons of silicon metal for batteries just related to Coreshell. The volumes are already flowing now, but they are minimal volumes for their sales to batteries and drones. I think I can share that the budget of the sales for Coreshell next year is north of $60 million, so it's significant. The technology is validated.

Speaker #1: And then there we we we are we expect to develop business for by 2030 31 to a level of about 70,000 tons of silicon metal for for batteries just related to Core Shell.

Speaker #1: The volumes are already flowing now but they're minimal volumes for their sales to to batteries and drones I I think I can share that the the the budget of these sales for Core Shell next year is north of 60 million dollars so it's significant.

Speaker #1: So the technology is validated now we need the series B like I mentioned in the past is related to to to building a bigger pilot plant that is going to be used to sample 60 and 60 amp per batteries for qualifications by the automotive OEMs who are who have shown interest in this technology.

Marco Levi: Now we need the Series B, like I mentioned in the past, is related to building a bigger pilot plant that is going to be used to sample 60 ampere batteries for qualifications by the automotive OEMs who have shown interest in this technology.

Nick Giles: Understood. Appreciate that. Maybe just turning back to FeSi. I mean, volumes did improve pretty meaningfully in Q1. Can you just talk about what your volume expectations are in Q2? What should we expect for manganese-based alloys as well?

Speaker #7: Understood. Appreciate that. Maybe just turning back to Fezzi I mean volumes did improve pretty meaningfully in the first quarter. Can you just talk about what your volume expectations are in Q2 and then what should we expect for manganese-based alloys as well?

Marco Levi: Well, we mentioned in when we communicated the previous quarter about our expectation for 2026 that were related to a significant growth in alloys driven by safeguards in Europe, by the new safeguards measures on steel who are kicking in as of 1 July 2026, and a steel recovery in US. This is happening. Clearly on manganese, when you talk about safeguard, there is only one producer, I would say, of manganese alloys in the EU27 territory, which is Ferroglobe. One of our competitors has small plant in France, we are the guys that from a volume point of view benefit the most out of safeguards of manganese. On ferrosilicon, I already described in detail to Martin Englert what happened in Europe and in US.

Speaker #1: Well we we mentioned in in in when we communicated in the the previous quarter about our expectation for 2026 that we're related to a significant growth in in alloys driven by safeguards in Europe by the new safeguards measures on steel who are kicking in as of July 1st 2026 and steel recovery in in US so this is happening clearly on manganese when you talk about safeguard there is only one producer I would say on manganese alloys in the U27 territory which is Ferroglobe one of our competitors as a small plant in France but we are the guys that from a volume point of view benefit the most out of safeguards of manganese on ferro silicon I already described in detail to Martin what happened in Europe and in US I hope you were in the call so I think I answered this question.

Marco Levi: I hope you were in the call. I think I answered this question.

Nick Giles: No, understood. That's helpful. Maybe just 1 more, if I could. Just on the ferrosilicon costs, you kind of went through, you know, you're looking to pass through some of the elevated costs within each segment. If we were to kind of isolate those, you know, cost pressures and just look at quarter over quarter, what kind of cost improvement would we expect to see in ferrosilicon specifically?

Speaker #7: Now understood. That's helpful. Maybe just one more if I could just on the ferro silicon costs you kind of went through you know you're looking to pass through some of the elevated costs within each segment but if we were to kind of isolate those you know cost pressures and just look at quarter over quarter what what kind of cost improvement would we expect to see in ferro silicon specifically?

Beatriz García-Cos: Maybe it's a point to notice, Nick, this is Beatriz García-Cos speaking. In Q4 versus Q1, we have a huge one-off in Q4, a positive. Of course, in Q1 we don't have any longer this non-recurrent. This is why you notice an increase in cost in Q1 2036 versus Q4 2035. What I'm saying is that not a like to like when you compare the two quarters. Going forward, I can confirm that of course, we are improving our cost. The challenge could be more on the logistic side and transportation costs, as you know, due to the Ida war.

Speaker #3: Maybe it's a point to note is Nick this is Beatriz speaking. In Q4 versus Q1 we have a huge one-off in in Q4 a positive and of course in Q1 we don't have any longer this non-recurrent so this is this is why you notice an increase in cost in Q1 2026 versus Q1 versus Q4 2025.

Speaker #3: So what I'm saying is that not a like to like when you compare the two quarters going forward I can confirm that of course we are improving our cost the challenge could be more on the logistic side and transportation cost as you know due to the iron war we expect these costs to potentially increase a little bit more in Q2 and then fade away on the second half of the year.

Beatriz García-Cos: We expect this cost to potentially increase a little bit more in Q2 and then fade away on the H2 of the year.

Nick Giles: Thanks for that, Beatriz. Just to clarify, co-costs in silicon-based alloys would actually rise in Q2?

Speaker #7: Thanks for that Beatriz just to clarify so costs in silicon-based alloys would actually rise in Q2 before kind of declining in 3Q and 4Q.

Beatriz García-Cos: Correct

Nick Giles: before kind of.

Beatriz García-Cos: Yeah

Nick Giles: in Q3 and Q4. Okay.

Speaker #7: Okay.

Beatriz García-Cos: Yes, you're right.

Speaker #3: Yes you're right.

Nick Giles: Okay. Guys, I appreciate the update this morning, and continued best of luck.

Speaker #7: Okay. Guys I appreciate the update this morning and continue best of luck.

Speaker #1: Thank you.

Marco Levi: Thank you.

Speaker #2: Thank you. That concludes today's question and answer session I'll now hand back for closing remarks.

Operator: Thank you. That concludes today's question and answer session. I will now hand back for closing remarks.

Speaker #1: Thank you. We are excited about the medium-term potential to grow and diversify our business through a broader mix of critical materials and an expanded geographic presence.

Marco Levi: Thank you. We are excited about the medium-term potential to grow and diversify our business through a broader mix of critical materials and an expanded geographic presence. Thank you again for your participation. We look forward to updating you on the next call in August. Have a great day.

Speaker #1: Thank you again for your participation. We look forward to updating you on the next call in August. Have a great day.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.