Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Ferroglobe PLC |
Entity Central Index Key | 0001639877 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 169,122,682 |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current assets | ||
Goodwill | $ 202,848 | $ 205,287 |
Other intangible assets | 51,822 | 58,658 |
Property, plant and equipment | 888,862 | 917,974 |
Other non-current financial assets | 70,343 | 89,315 |
Deferred tax assets | 14,589 | 5,273 |
Non-current receivables from related parties | 2,288 | 2,400 |
Other non-current assets | 10,486 | 30,059 |
Total non-current assets | 1,241,238 | 1,308,966 |
Current assets | ||
Inventories | 456,970 | 361,231 |
Trade and other receivables | 155,996 | 111,463 |
Current receivables from related parties | 14,226 | 4,572 |
Current income tax assets | 27,404 | 17,158 |
Other current financial assets | 2,523 | 2,469 |
Other current assets | 8,813 | 9,926 |
Cash and cash equivalents | 216,647 | 184,472 |
Total current assets | 882,579 | 691,291 |
Total assets | 2,123,817 | 2,000,257 |
Equity | ||
Share capital | 1,784 | 1,796 |
Reserves | 941,707 | 996,380 |
Translation differences | (207,366) | (164,675) |
Valuation adjustments | (11,559) | (16,799) |
Result attributable to the Parent | 43,661 | (678) |
Non-controlling interests | 116,145 | 121,734 |
Total equity | 884,372 | 937,758 |
Non-current liabilities | ||
Deferred income | 1,434 | 3,172 |
Provisions | 75,787 | 82,397 |
Bank borrowings | 132,821 | |
Obligations under finance leases | 53,472 | 69,713 |
Debt instruments | 341,657 | 339,332 |
Other financial liabilities | 32,788 | 49,011 |
Other non-current liabilities | 25,030 | 3,536 |
Deferred tax liabilities | 77,379 | 65,142 |
Total non-current liabilities | 740,368 | 612,303 |
Current liabilities | ||
Provisions | 40,570 | 33,095 |
Bank borrowings | 8,191 | 1,003 |
Obligations under finance leases | 12,999 | 12,920 |
Debt instruments | 10,937 | 10,938 |
Other financial liabilities | 52,524 | 88,420 |
Payables to related parties | 11,128 | 12,973 |
Trade and other payables | 256,823 | 192,859 |
Current income tax liabilities | 2,335 | 7,419 |
Other current liabilities | 103,570 | 90,569 |
Total current liabilities | 499,077 | 450,196 |
Total equity and liabilities | $ 2,123,817 | $ 2,000,257 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Profit (loss) [abstract] | |||||
Sales | $ 2,274,038 | $ 1,741,693 | [1] | $ 1,576,037 | [1] |
Cost of sales | (1,447,354) | (1,043,395) | [1] | (1,043,412) | [1] |
Other operating income | 46,037 | 18,199 | [1] | 26,215 | [1] |
Staff costs | (341,064) | (301,963) | [1] | (296,399) | [1] |
Other operating expense | (283,930) | (239,926) | [1] | (243,946) | [1] |
Depreciation and amortization charges, operating allowances and write-downs | (119,137) | (104,529) | [1] | (125,677) | [1] |
Impairment losses | (58,919) | (30,957) | [1] | (268,089) | [1] |
Net (loss) gain due to changes in the value of assets | (7,623) | 7,504 | [1] | 1,891 | [1] |
Gain (loss) on disposal of non-current assets | 14,564 | (4,316) | [1] | 340 | [1] |
Bargain purchase gain | 40,142 | ||||
Other losses | 40,142 | (2,613) | [1] | (40) | [1] |
Operating profit (loss) | 116,754 | 39,697 | [1] | (373,080) | [1] |
Finance income | 5,374 | 3,708 | [1] | 1,536 | [1] |
Finance costs | (62,022) | (65,412) | [1] | (30,251) | [1] |
Financial derivative gain (loss) | 2,838 | (6,850) | [1] | ||
Exchange differences | (14,136) | 8,214 | [1] | (3,513) | [1] |
Profit (loss) before tax | 48,808 | (20,643) | [1] | (405,308) | [1] |
Income tax (expense) benefit | (24,235) | 14,821 | [1] | 46,695 | [1] |
Profit (loss) for the year | 24,573 | (5,822) | [1] | (358,613) | [1] |
Loss attributable to non-controlling interests | 19,088 | 5,144 | [1] | 20,186 | [1] |
Profit (loss) attributable to the Parent | 43,661 | (678) | [1] | (338,427) | [1] |
Earnings Per Share Continued And Discontinued Operations [Abstract] | |||||
Profit (loss) attributable to the Parent (US$'000) | $ 43,661 | $ (678) | [1] | $ (338,427) | [1] |
Weighted average basic shares outstanding | 171,406,272 | 171,949,128 | [1] | 171,838,153 | [1] |
Basic earnings (loss) per ordinary share (US$) | $ 0.25 | $ 0 | [1] | $ (1.97) | [1] |
Effect of dilutive securities | 123,340 | 0 | 0 | ||
Weighted average dilutive shares outstanding | 171,529,612 | 171,949,128 | [1] | 171,838,153 | [1] |
Diluted earnings (loss) per ordinary share (US$) | $ 0.25 | $ 0 | [1] | $ (1.97) | [1] |
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||
Net profit (loss) | $ 24,573 | $ (5,822) | [1] | $ (358,613) | [1] |
Items that will not be reclassified subsequently to income or loss: | |||||
Defined benefit obligation | 3,568 | 4,511 | 4,297 | ||
Tax effect | (296) | ||||
Total | 3,272 | 4,511 | 4,297 | ||
Items that may be reclassified subsequently to income or loss: | |||||
Arising from cash flow hedges | 10,006 | (24,171) | |||
Translation differences | (45,435) | 54,670 | (319) | ||
Total income and expense recognized directly in equity | (35,429) | 30,499 | (319) | ||
Items that have been reclassified to income or loss in the period: | |||||
Arising from cash flow hedges | (7,228) | 15,138 | 3,002 | ||
Tax effect | (190) | (390) | (751) | ||
Total transfers to income or loss | (7,418) | 14,748 | 2,251 | ||
Other comprehensive (loss) income for the year, net of income tax | (39,575) | 49,758 | 6,229 | ||
Total comprehensive income (loss) for the year | (15,002) | 43,936 | (352,384) | ||
Attributable to the Parent | 4,976 | 47,158 | (332,198) | ||
Attributable to non-controlling interests | $ (19,978) | $ (3,222) | $ (20,186) | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Share Capital | Reserves | Translation Difference | Valuation Adjustments | Result for the Year | Noncontrolling interests | Total |
Shares outstanding at beginning of period at Dec. 31, 2015 | 171,838 | ||||||
Equity at beginning of period at Dec. 31, 2015 | $ 1,288,787 | $ 143,170 | $ (217,104) | $ (18,435) | $ (43,268) | $ 141,823 | $ 1,294,973 |
Comprehensive (loss) income | (319) | 6,548 | (338,427) | (20,186) | (352,384) | ||
Share decrease (net effect) | (1,287,068) | 1,287,068 | |||||
Share issuance costs | (275) | (275) | |||||
Dividends paid | (54,988) | (54,988) | |||||
Distribution of profit (loss) | (43,268) | 43,268 | |||||
Other changes | 76 | 721 | 3,919 | 4,716 | |||
Equity at end of period at Dec. 31, 2016 | 1,795 | 1,332,428 | (217,423) | (11,887) | (338,427) | 125,556 | $ 892,042 |
Shares outstanding at end of period at Dec. 31, 2016 | 171,838 | ||||||
Comprehensive (loss) income | 52,748 | (4,912) | (678) | (3,222) | $ 43,936 | ||
Issue of share capital | 1 | 179 | 180 | ||||
Share-based compensation | 2,405 | 2,405 | |||||
Dividends paid to joint venture partner | (7,350) | (7,350) | |||||
Distribution of profit (loss) | (338,427) | 338,427 | |||||
Non-controlling interest arising on the acquisition | 6,750 | 6,750 | |||||
Other changes | (205) | 1,922 | (205) | ||||
Equity at end of period at Dec. 31, 2017 | 1,796 | 996,380 | (164,675) | (16,799) | (678) | 121,734 | $ 937,758 |
Shares outstanding at end of period at Dec. 31, 2017 | 171,977 | ||||||
Shares issued (in shares) | 139 | ||||||
Comprehensive (loss) income | (44,276) | 5,591 | 43,661 | (19,978) | $ (15,002) | ||
Issue of share capital | 240 | 240 | |||||
Share-based compensation | 2,798 | 2,798 | |||||
Cash settlement of equity awards | (680) | (680) | |||||
Dividends paid to joint venture partner | (20,642) | (20,642) | |||||
Distribution of profit (loss) | (678) | 678 | |||||
Own shares acquired | (12) | (20,088) | $ (20,100) | ||||
Own shares acquired (in shares) | (1,153) | ||||||
Non-controlling interest arising on the acquisition | (15,623) | 1,585 | (351) | 14,389 | |||
Other changes | (890) | ||||||
Equity at end of period at Dec. 31, 2018 | $ 1,784 | $ 941,707 | $ (207,366) | $ (11,559) | $ 43,661 | $ 116,145 | $ 884,372 |
Shares outstanding at end of period at Dec. 31, 2018 | 170,864 | ||||||
Shares issued (in shares) | 40 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Cash flows from operating activities: | |||||
Profit (loss) for the year | $ 24,573 | $ (5,822) | [1] | $ (358,613) | [1] |
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | |||||
Income tax expense (benefit) | 24,235 | (14,821) | (46,695) | ||
Depreciation and amortization charges, operating allowances and write-downs | 119,137 | 104,529 | 125,677 | ||
Finance income | (5,374) | (3,708) | (1,536) | ||
Finance costs | 62,022 | 65,412 | 30,251 | ||
Financial derivative (gain) loss | (2,838) | 6,850 | |||
Exchange differences | 14,136 | (8,214) | 3,513 | ||
Impairment losses | 58,919 | 30,957 | 268,089 | ||
Bargain purchase gain | (40,142) | ||||
Loss (gain) due to changes in the value of assets | 7,623 | (7,504) | (1,891) | ||
(Gain) loss on disposal of non-current assets | (14,564) | 4,316 | (340) | ||
Share-based compensation | 2,798 | 2,405 | |||
Other loss | 2,613 | 40 | |||
Changes in operating assets and liabilities: | |||||
(Increase) decrease in inventories | (101,024) | (16,274) | 108,207 | ||
(Increase) decrease in trade and other receivables | (25,807) | 50,168 | 56,297 | ||
Increase in trade and other payables | 55,410 | 17,613 | 28,572 | ||
Other amounts paid due to operating activities | (25,901) | (12,251) | (50,001) | ||
Income tax paid | (36,408) | (26,764) | (10,933) | ||
Interest paid | (43,018) | (39,130) | (29,468) | ||
Net cash provided by operating activities | 73,777 | 150,375 | 121,169 | ||
Cash flows from investing activities: | |||||
Interest and finance income received | 3,833 | 952 | 1,554 | ||
Payments due to investments: | |||||
Acquisition of subsidiaries | (20,379) | ||||
Other intangible assets | (3,313) | (811) | (4,914) | ||
Property, plant and equipment | (106,136) | (74,616) | (71,119) | ||
Other financial assets | (343) | (9,912) | |||
Disposals: | |||||
Disposal of subsidiaries | 20,533 | ||||
Other non-current assets | 12,734 | ||||
Other | 6,853 | 110 | |||
Net cash used by investing activities | (85,875) | (74,818) | (84,281) | ||
Cash flows from financing activities: | |||||
Dividends paid | (20,642) | (54,988) | |||
Payment for debt issuance costs | (4,905) | (16,765) | |||
Repayment of other financial liabilities | (33,096) | ||||
Proceeds from debt issuance | 350,000 | ||||
Increase (decrease) in bank borrowings: | |||||
Borrowings | 252,200 | 31,455 | 124,384 | ||
Payments | (106,514) | (453,948) | (81,237) | ||
Proceeds from stock option exercises | 240 | 180 | |||
Other amounts (paid) received due to financing activities | (13,880) | (24,319) | 61,758 | ||
Payments to acquire or redeem own shares | (20,100) | ||||
Net cash provided (used) by financing activities | 53,303 | (113,397) | 49,917 | ||
Total net cash flows for the year | 41,205 | (37,840) | 86,805 | ||
Beginning balance of cash and cash equivalents | 184,472 | 196,982 | 116,666 | ||
Exchange differences on cash and cash equivalents in foreign currencies | (9,030) | 25,330 | (6,489) | ||
Ending balance of cash and cash equivalents | $ 216,647 | $ 184,472 | $ 196,982 | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
General Information
General Information | 12 Months Ended |
Dec. 31, 2018 | |
General Information [Abstract] | |
General information | 1. General information Ferroglobe PLC and subsidiaries (the “Company” or “Ferroglobe”) is among the world’s largest producers of silicon metal and silicon-based alloys, important ingredients in a variety of industrial and consumer products. The Company’s customers include major silicone chemical, aluminum and steel manufacturers, auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer chips, and concrete producers. Additionally, the Company has been operating hydroelectric plants (hereinafter “energy business”) in Spain and France. Ferroglobe PLC (the “Parent Company” or “the Parent”) is a public limited company that was incorporated in the United Kingdom on February 5, 2015 (formerly named ‘Velonewco Limited’). The Parent’s registered office is 2nd Floor West Wing, Lansdowne House, 57 Berkeley Square, London (United Kingdom). On December 23, 2015, Ferroglobe PLC consummated the acquisition (“Business Combination”) of Globe Specialty Metals, Inc. and subsidiaries (“GSM” or “Globe”) and Grupo FerroAtlántica, S.A.U. (“FerroAtlántica”). Presentation of results of Spanish energy business As described in Note 29 of these financial statements, the Company signed an agreement for the sale of its Spanish energy business on December 12, 2016. The results of operations of the division were previously presented as a discontinued operation in the consolidated financial statements for the year ended December 31, 2016 and the assets and liabilities of the business were classified as held for sale in accordance with requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations as of December 31, 2016. Subsequently, in July 2017, the Company announced that it did not receive the necessary regulatory approvals to divest of these assets and the sale did not proceed. Accordingly, the results of Spanish energy business are presented within continuing operations for the years ended December 31, 2018 and 2017 and the consolidated income statement for the year ended 2016 has been re-presented to show the results of the Spanish energy business within income from continuing operations. |
Organization and Subsidiaries
Organization and Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Organization and Subsidiaries [Abstract] | |
Organization and Subsidiaries | 2. Organization and Subsidiaries Ferroglobe has a diversified production base consisting of production facilities across the United States, Europe, South America, South Africa and Asia. The subsidiaries of Ferroglobe as of December 31, 2018, classified by business activity, were as follows: Percentage of Ownership Direct Total Line of Business Registered Alabama Sand and Gravel, Inc. — Electrometallurgy - North America Delaware - USA Alden Resources, LLC — Electrometallurgy - North America Delaware - USA Alden Sales Corporation, LLC — Electrometallurgy - North America Delaware - USA ARL Resources, LLC — Electrometallurgy - North America Delaware - USA ARL Services, LLC — Electrometallurgy - North America Delaware - USA Core Metals Group Holdings, LLC — Electrometallurgy - North America Delaware - USA Core Metals Group, LLC — Electrometallurgy - North America Delaware - USA Gatliff Services, LLC — Electrometallurgy - North America Delaware - USA GBG Holdings, LLC — Electrometallurgy - North America Delaware - USA Globe Metallurgical Inc. — Electrometallurgy - North America Delaware - USA Globe Metals Enterprises, Inc. — Electrometallurgy - North America Delaware - USA GSM Alloys I, Inc. — Electrometallurgy - North America Delaware - USA GSM Alloys II, Inc. — Electrometallurgy - North America Delaware - USA GSM Enterprises Holdings, Inc. — Electrometallurgy - North America Delaware - USA GSM Enterprises, LLC — Electrometallurgy - North America Delaware - USA GSM Sales, Inc. — Electrometallurgy - North America Delaware - USA LF Resources, Inc. — Electrometallurgy - North America Delaware - USA Metallurgical Process Materials, LLC — Electrometallurgy - North America Delaware - USA Norchem, Inc. — Electrometallurgy - North America Florida - USA QSIP Canada ULC — Electrometallurgy - North America Canada Quebec Silicon General Partner — Electrometallurgy - North America Canada Quebec Silicon Limited Partnership — Electrometallurgy - North America Canada Tennessee Alloys Company, LLC — Electrometallurgy - North America Delaware - USA West Virginia Alloys, Inc. — Electrometallurgy - North America Delaware - USA WVA Manufacturing, LLC — Electrometallurgy - North America Delaware - USA Cuarzos Industriales, S.A.U. — Electrometallurgy - Europe A Coruña - Spain Ferroatlántica del Cinca, S.L. (1) — Electrometallurgy - Europe Spain Ferroatlántica, S.A.U. (2) — Electrometallurgy - Europe Madrid - Spain Ferroglobe Mangan Norge AS (1) — Electrometallurgy - Europe Norway Ferroglobe Manganese France SAS (1) — Electrometallurgy - Europe France FerroPem, S.A.S. — Electrometallurgy - Europe France Grupo FerroAtlántica, S.A.U 100 Electrometallurgy - Europe Madrid - Spain Islenska Kisilfelagio EHF (Icelandic Silicon Corp.) — Electrometallurgy - Europe Iceland Kintuck (France) SAS (1) — Electrometallurgy - Europe France Kintuck AS (1) — Electrometallurgy - Europe Norway Rocas, Arcillas y Minerales, S.A. — Electrometallurgy - Europe A Coruña - Spain Rebone Mining (Pty.), Ltd. — Electrometallurgy - South Africa Polokwane - South Africa Silicon Smelters (Pty.), Ltd. — Electrometallurgy - South Africa Polokwane - South Africa Silicon Technology (Pty.), Ltd. — Electrometallurgy - South Africa South Africa Thaba Chueu Mining (Pty.), Ltd. — Electrometallurgy - South Africa Polokwane - South Africa 16 Front Street, LLC — Other segments Delaware - USA Actifs Solaires Bécancour, Inc — Other segments Canada Cuarzos Indus. de Venezuela (Cuarzoven), S.A. — Other segments Venezuela Emix, S.A.S. — Other segments France ECPI, Inc. — Other segments Delaware - USA FerroAtlántica Canada Company Ltd — Other segments Canada Ferroatlántica de México, S.A. de C.V. — Other segments Nueva León - Mexico Ferroatlántica de Venezuela (FerroVen), S.A. — Other segments Venezuela Ferroatlántica Deutschland, GmbH — Other segments Germany Ferroatlántica do Brasil Mineraçao Ltda. — Other segments Brazil Ferroatlántica I+D, S.L.U. — Other segments Madrid - Spain FerroAtlántica India Private Limited — Other segments India FerroAtlántica International Ltd — Other segments United Kingdom Ferroatlántica y Cía., F. de Ferroaleac. y Metales, S.C. — Other segments Madrid - Spain Ferroatlántica, S.A.U. (2) — Other segments Madrid - Spain Ferroglobe Services (UK) PLC 100 Other segments United Kingdom FerroManganese Mauritania SARL — Other segments Mauritania Ferroquartz Company Inc. — Other segments Canada Ferroquartz Holdings, Ltd (Hong Kong) — Other segments Hong Kong FerroQuartz Mauritania SARL — Other segments Mauritania FerroQuébec Company Inc. — Other segments Canada Ferrosolar OPCO Group SL. — Other segments Spain Ferrosolar R&D SL. — Other segments Spain FerroTambao, SARL — Other segments Burkina Faso Ganzi Ferroatlántica Silicon Industry Company, Ltd. — Other segments Sichuan - China GBG Financial LLC — Other segments Delaware - USA GBG Holdings, LLC — Other segments Delaware - USA Globe Argentina Holdco, LLC — Other segments Delaware - USA Globe BG, LLC — Other segments Delaware - USA Globe LSE, Inc. — Other segments Delaware - USA Globe Metales S.R.L. — Other segments Argentina Globe Metallurgical Carbon, LLC — Other segments Delaware - USA Globe Specialty Metals, Inc. 100 Other segments Delaware - USA GSM Financial, Inc. — Other segments Delaware - USA GSM Netherlands, BV — Other segments Netherlands Laurel Ford Resources, Inc. — Other segments Delaware - USA Mangshi FerroAtlántica Mining Indus. Serv. Ltd — Other segments Mangshi, Dehong -Yunnan -China Mangshi Sinice Silicon Industry Company Limited — Other segments Mangshi, Dehong -Yunnan -China MST Financial Holdings, LLC — Other segments Delaware - USA MST Financial, LLC — Other segments Delaware - USA MST Resources, LLC — Other segments Delaware - USA Ningxia Yonvey Coal Industrial Co., Ltd. — Other segments China Photosil Industries, SAS — Other segments France Silicio Ferrosolar, SLU — Other segments Spain Solsil, Inc. — Other segments Delaware - USA Ultra Core Polska (UCP) — Other segments Poland Ultracore Energy SA — Other segments Argentina (1) Entered into the scope of consolidation during 2018. (2) FerroAtlántica, S.A.U. carries on business activities in both “Electrometallurgy – Europe” and “Other segments” (energy business) Subsidiaries are all companies over which Ferroglobe has control. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power over the investee to affect the amount of the investor’s returns. The Company has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: · the total voting rights held by the Company relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Company, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time these decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. The Company uses the acquisition method to account for the acquisition of subsidiaries. According to this method, the consideration transferred for the acquisition of a subsidiary corresponds to the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Company. The consideration transferred also includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Any contingent consideration transferred by the Company is recognized at fair value at the date of acquisition. Subsequent changes in the fair value of the contingent consideration classified as an asset or a liability are recognized in accordance with IAS 39 either in the income statement or in the statement of comprehensive (loss) income. The costs related to the acquisition are recognized as expenses in the years incurred. The identifiable assets acquired and the liabilities and contingent liabilities assumed in a business combination are initially recognized at their fair value at the date of acquisition. The Company recognizes any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Profit or loss for the period and each component of other comprehensive (loss) income are attributed to the owners of the Company and to the non-controlling interests. The Company attributes total comprehensive (loss) income to the owners of the Company and to the non-controlling interests even if the profit or loss of the non-controlling interests gives rise to a balance receivable. All assets and liabilities, equity, income, expenses and cash flows relating to transactions between subsidiaries are eliminated in full in consolidation. |
Basis of presentation and basis
Basis of presentation and basis of consolidation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Basis Of Presentation And Basis Of Consolidation [Abstract] | |
Basis of presentation and basis of consolidation | 3. Basis of presentation and basis of consolidation 3.1 Basis of presentation These consolidated financial statements have been issued in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Interpretations Committee (collectively “IFRS”). The consolidated financial statements have been authorized for issuance on April 29, 2019. All accounting policies and measurement bases with effect on the consolidated financial statements were applied in their preparation. The consolidated financial statements were prepared on a historical cost basis, with the exceptions disclosed in the notes to the consolidated financial statements, where applicable, and in those situations where IFRS requires that financial assets and financial liabilities are valued at fair value. 3.2 International financial reporting standards Application of new accounting standards New and amended standards and interpretations adopted by the Company Standards, interpretations and amendments effective from January 1, 2018, applied by the Company in the preparation of these consolidated financial statements: · IFRS 9 ‘Financial Instruments’ · IFRS 15 ‘Revenue from Contracts with Customers’ · IFRS 2 (Amendment) ‘Classification and Measurement of Share-based Payment Transactions’ · IFRS 4 (Amendment). ‘Applying IFRS 9 ‘Financial Instruments’ with IFRS 4 ‘Insurance Contracts’’ · IFRIC Interpretation 22 ‘Foreign Currency Transactions and Advance Consideration’ · Annual improvements cycle to IFRS 2014-2016 · IAS 40 (Amendment) ‘Transfers of Investments Property’ The impacts of applying IFRS 9 and IFRS 15 for the first time are discussed further below. The applications of the other amendments and interpretations above did not have an impact on the consolidated financial statements of the Company. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. Adoption of IFRS 9 – Financial Instruments IFRS 9 addresses the classification, measurement and recognition of financial assets and financial liabilities, introduces a new impairment model for financial assets, as well as new rules for hedge accounting. The standard replaced IAS 39 – Financial Instruments: Recognition and Measurement, in its entirety. Ferroglobe adopted IFRS 9 and the related consequential amendments to other IFRSs in the financial reporting period beginning January 1, 2018. The Company has applied the new standard in accordance with the transition provisions of IFRS 9. Comparatives have not been restated. There were no adjustments to opening reserves at January 1, 2018. The Company’s revised accounting policies in relation to financial instruments are provided in Notes 4.5 and 4.6. Classification and measurement: IFRS 9 provides a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. For financial liabilities the existing classification and measurement requirements of IAS 39 are largely retained. The principal change in classification was that those financial assets previously classified as “loans and receivables” under IAS 39 are now classified as “financial assets measured at amortized cost” (for further details see Note 10). There were no changes in measurement as a result of adopting IFRS 9. Derecognition of financial liabilities: IFRS 9 sets out that when the terms of a financial liability are modified without this resulting in derecognition, a gain or loss should be recognized. This modification gain or loss is equal to the difference between the present value of the cash flows under the original and modified terms discounted at the original effective interest rate. Previously, under IAS 39, this gain or loss was amortized over the life of the modified financial liability through the effective interest rate. At January 1, 2018, Ferroglobe has no outstanding financial liabilities that had previously been modified and therefore there was no impact to the Company’s statement of financial position upon adoption of IFRS 9. The accounting for any future modifications would follow IFRS 9. Impairment: IFRS 9 introduced a forward-looking expected credit loss model that may result in earlier recognition of credit losses than the incurred loss model of IAS 39. The simplified approach was used for trade and other receivables. Substantially all of the Company’s trade receivables in the US, Canada, France and Spain are sold and derecognized pursuant to an accounts receivable securitization program (see Note 10). Given the short-term nature of the majority of Ferroglobe’s remaining financial assets, the low level of credit losses and the Company’s active management of credit risk, the effects of the change in impairment model were assessed to be immaterial. Hedge accounting: IFRS 9 simplified hedge accounting requirements and more closely aligned them to an entity’s risk management strategy. Upon adoption of IFRS 9, Ferroglobe’s existing hedge relationship continued to qualify as an effective cash flow hedge and there was no impact of the standard on the Company’s statement of financial position at January 1, 2018. IFRS 9 has also clarified that when measuring ineffectiveness in a hedging relationship, currency basis is an item that that is present in certain derivatives, such as Ferroglobe’s cross currency swap (see Note 19), but not in the hedged item. This difference may result in increased ineffectiveness and volatility in Ferroglobe’s profit or loss in the future, but the impact of this to date has not been material. Adoption of IFRS 15 – Revenue from Contracts with Customers IFRS 15 provides a single model of accounting for revenue arising from contracts with customers, focusing on the identification and satisfaction of performance obligations. The standard replaced all existing revenue standards and interpretations in IFRS. Ferroglobe adopted IFRS 15 for the financial reporting period beginning January 1, 2018. The Company’s revised accounting policy in relation to revenue is provided in Note 4.16. Under IFRS 15, revenue from contracts with customers is recognized when or as the Company satisfies a performance obligation by transferring a promised good or service to a customer. A good or service is transferred when the customer obtains control of that good or service. The transfer of control of silicon metal, silicon-based specialty alloys, ferroalloys and other items sold by the Company usually coincides with title passing to the customer and as guided by the Incoterms. The Company principally satisfies its performance obligations at a point in time and the amounts of revenue recognized relating to performance obligations satisfied over time are not significant. The accounting for revenue under IFRS 15 does not, therefore, represent a substantive change from the Company’s previous practice for recognizing revenue from sales to customers. The Company identified certain minor changes in accounting relating to its revenue from contracts with customers but the new standard had no material effect on the group’s net assets as at January 1, 2018 and so no transition adjustment is presented. New and amended standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for the reporting period ended December 31, 2018 and have not been early adopted by the Company. With the exception of IFRS 16 ‘Leases’, which is discussed further below, there are no standards or interpretations that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. IFRS 16 – Leases IFRS 16 Leases replaces the existing standard on accounting for leases, IAS 17, and the related interpretations. The Company will apply the standard from its mandatory adoption date of January 1, 2019 and will transition to the standard in accordance with the modified retrospective approach; the prior year figures will not be adjusted. The analysis conducted as part of the Company-wide project on initial application indicated that IFRS 16 will have a material effect on components of the consolidated financial statements and the presentation of the net assets, financial position and results of operations of Ferroglobe: Balance sheet: IFRS 16 requires lessees to adopt a uniform approach to the presentation of leases. In future, assets must be recognized for the right of use received and liabilities must be recognized for the payment obligations entered into for all leases. The Company will make use of the relief options provided for leases of low-value assets and short-term leases (shorter than twelve months). In contrast, the accounting requirements for lessors remain largely unchanged, particularly with regard to the continued requirements to classify leases according to IAS 17. For leases that have been classified to date as operating leases in accordance with IAS 17, the lease liability will be recognized at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate at the time the standard is first applied. The right-of-use asset will generally be measured at the amount of the lease liability. Advance payments and liabilities from the previous financial year will also be accounted for. The analysis conducted as part of the Company-wide project on initial application indicated the probable recognition of lease liabilities in the balance sheet totaling around $28,250 thousand (January 1, 2019) as a result of the transition. Retained earnings will not change on initial application. Net debt will rise accordingly due to the material increase in lease liabilities. Income statement: In contrast to the presentation to date of operating lease expenses, in future depreciation charges on right-of-use assets and the interest expense from unwinding of the discount on the lease liabilities will be recognized. In 2019 this change is expected to decrease other operating expenses by $9,684 thousand and increase depreciation expense and finance costs by $8,890 thousand and $1,215 thousand, respectively. Cash flow statement: The change in presentation of operating lease expenses will result in a corresponding improvement of cash flows from operating activities and a decline in cash flows from financing activities. 3.3 Currency The Parent’s functional currency is the Euro. The functional currencies of subsidiaries are determined by the primary economic environment in which each subsidiary operates. The reporting currency of the Company is U.S. Dollars and as such the accompanying results and financial position have been translated pursuant to the provisions indicated in IAS 21. All differences arising from the aforementioned translation are recognized in equity under “Translation differences”. Upon the disposal of a foreign operation, the translation differences relating to that operation deferred as a separate component of consolidated equity are recognized in the consolidated income statement when the gain or loss on disposal is recognized. 3.4 Responsibility for the information and use of estimates The information in these consolidated financial statements is the responsibility of Ferroglobe’s management. Certain assumptions and estimates were made by management in the preparation of these consolidated financial statements, including: · The impairment losses on certain assets, including property, plant and equipment and goodwill. · The useful life of property, plant and equipment and intangible assets. · The fair value of certain unquoted financial assets. · The assumptions used in the actuarial calculation of pension liabilities. · The discount rate used to calculate the present value of certain collection rights and payment obligations. · Provisions for contingencies and environmental liabilities. · The calculation of income tax and of deferred tax assets and liabilities. The Company based its estimates and judgments on historical experience, known or expected trends and other factors that are believed to be reasonable under the circumstances. Actual results may differ materially from these estimates. Changes in accounting estimates are applied in accordance with IAS 8. At the date of preparation of these consolidated financial statements no events had taken place that might constitute a significant source of uncertainty regarding the accounting effect that such events might have in future reporting periods. 3.5 Basis of consolidation The financial statements of the subsidiaries are fully consolidated with those of the Parent. Accordingly, all balances and effects of the transactions between consolidated companies are eliminated in consolidation. Non-controlling interests are presented in “Equity – Non-controlling interests” in the consolidated statement of financial position, separately from the consolidated equity attributable to the Parent. The share of non-controlling interests in the profit or loss for the year is presented under “Loss attributable to non-controlling interests” in the consolidated income statement. When necessary, adjustments are made to the financial statements of subsidiaries to align the accounting policies used to the accounting policies of the Company. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Accounting policies | 4. Accounting policies The principal IFRS accounting policies applied in preparing these consolidated financial statements were in effect at the date of preparation are described below. 4.1 Goodwill Goodwill arising on consolidation represents the excess of the cost of acquisition over the Company’s interest in the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Any excess of the cost of the investments in the consolidated companies over the corresponding underlying carrying amounts acquired, adjusted at the date of first-time consolidation, is allocated as follows: 1. If it is attributable to specific assets and liabilities of the companies acquired, increasing the value of the assets (or reducing the value of the liabilities) whose market values were higher (lower) than the carrying amounts at which they had been recognized in their balance sheets and whose accounting treatment was similar to that of the same assets (liabilities) of the Company amortization, accrual, etc. 2. If it is attributable to specific intangible assets, recognizing it explicitly in the consolidated statement of financial position provided that the fair value at the date of acquisition can be measured reliably. 3. The remaining amount is recognized as goodwill, which is allocated to one or more specific cash-generating units. Goodwill is only recognized when it has been acquired for consideration and represents, therefore, a payment made by the acquirer for future economic benefits from assets of the acquired company that are not capable of being individually identified and separately recognized. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. 4.2 Other intangible assets Other intangible assets are assets without physical substance which can be individually identified either because they are separable or because they arise as a result of a legal or contractual right or of a legal transaction or were developed by the consolidated companies. Only intangible assets whose value can be measured reliably and from which the Company expects to obtain future economic benefits are recognized in the consolidated statement of financial position. Intangible assets are recognized initially at acquisition or production cost. The aforementioned cost is amortized systematically over each asset’s useful life. At each reporting date, these assets are measured at acquisition cost less accumulated amortization and any accumulated impairment losses, if any. The Company reviews amortization periods and amortization methods for finite-lived intangible assets at the end of each fiscal year. The Company’s main intangible assets are as follows: Development expenditures Development expenditures are capitalized if they meet the requirements of identifiability, reliability in cost measurement and high probability that the assets created will generate economic benefits. Developmental expenditures are amortized on a straight-line basis over the useful lives of the assets, which are between four and ten years. Expenditures on research activities are recognized as expenses in the years in which they are incurred. Power supply agreements Power supply agreements are amortized on a straight-line basis over the term in which the agreement is effective. Rights of use Rights of use granted are amortized on a straight-line basis over the term in which the right of use was granted from the date it is considered that use commenced. Rights of use are generally amortized over a period ranging from 10 to 20 years. Computer software Computer software includes the costs incurred in acquiring or developing computer software, including the related installation. Computer software is amortized on a straight-line basis over two to five years. Computer system maintenance costs are recognized as expenses in the years in which they are incurred. Other intangible assets Other intangible assets include: · Supply agreements which are amortized in accordance with their estimated useful lives (see Note 8). · CO 2 emissions allowances (“rights held emit greenhouse gasses”) which are not amortized, but rather are expensed when used (see Note 4.20). 4.3 Property, plant and equipment Cost Property, plant and equipment for our own use are initially recognized at acquisition or production cost and are subsequently measured at acquisition or production cost less accumulated depreciation and any accumulated impairment losses. When the construction and start-up of non-current assets require a substantial period of time, the borrowing costs incurred over that period are capitalized. The costs of expansion, modernization or improvements leading to increased productivity, capacity or efficiency or to a lengthening of the useful lives of the assets are capitalized. Repair, upkeep and maintenance expenses are recognized in the consolidated income statement for the year in which they are incurred. Mineral reserves are recorded at fair value at the date of acquisition. Depletion of mineral reserves is computed using the units-of-production method utilizing only proven and probable reserves (as adjusted for recoverability factors) in the depletion base. Property, plant and equipment in the course of construction are transferred to property, plant and equipment in use at the end of the related development period. Depreciation The Company depreciates property, plant and equipment using the straight-line method at annual rates based on the following years of estimated useful life: Years of Estimated Useful Life Properties for own use 25-50 Plant and machinery 8-20 Tools 12.5-15 Furniture and fixtures 10-15 Computer hardware 4-8 Transport equipment 10-15 Land included within property, plant and equipment is considered to be an asset with an indefinite useful life and, as such, is not depreciated, but rather it is tested for impairment annually. The Company reviews residual value, useful lives, and the depreciation method for property, plant and equipment annually. Environment The costs arising from the activities aimed at protecting and improving the environment are accounted for as an expense for the year in which they are incurred. When they represent additions to property, plant and equipment aimed at minimizing the environmental impact and protecting and enhancing the environment, they are capitalized to non-current assets. 4.4 Impairment of property, plant and equipment, intangible assets and goodwill In order to ascertain whether its assets have become impaired, the Company compares their carrying amount with their recoverable amount at the end of the reporting period, or more frequently if there are indications that the assets might have become impaired. Where the asset itself does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of: · Fair value: the price that would be agreed upon by two independent parties, less estimated costs to sell, and · Value in use: the present value of the future cash flows that are expected to be derived from continuing use of the asset and from its ultimate disposal at the end of its useful life, discounted at a rate which reflects the time value of money and the risks specific to the business to which the asset belongs. If the recoverable amount of an asset (or cash-generating unit) is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount, and an impairment loss is recognized as an expense under “Impairment losses” in the consolidated income statement. Where an impairment loss subsequently reverses (not permitted in the case of goodwill), the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized as “Other income” in the consolidated income statement. The basis for depreciation is the carrying amount of the assets, deemed to be the acquisition cost less any accumulated impairment losses. 4.5 Financial instruments Financial assets and financial liabilities are recognized in the Company’s statement of financial position when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. The Company has elected to apply the limited exemption in IFRS 9 relating to classification, measurement and impairment requirements for financial instruments, and accordingly comparative periods have not been restated and remain in line with the previous standard IAS 39 “Financial Instruments: Recognition and Measurement”. For further understanding of the impact of the transition to IFRS 9, refer to Note 3. Financial assets From January 1, 2018, the Company classifies its financial assets into the following categories: those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss) and those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. Financial assets measured at amortized cost Financial assets are classified as measured at amortized cost when they are held in a business model whose objective is to collect contractual cash flows and the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Such assets are carried at amortized cost using the effective interest method if the time value of money is significant. Gains and losses are recognized in profit or loss when the assets are derecognized or impaired and when interest is recognized using the effective interest method. This category of financial assets includes trade receivables, receivables from related parties and cash and cash equivalents. Financial assets measured at fair value through other comprehensive income Debt instruments are classified as measured at fair value through other comprehensive income when they are held in a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All movements in the fair value of these financial assets are taken through other comprehensive income, except for the recognition of impairment gains or losses, interest income calculated using the effective interest method and foreign exchange gains and losses. When the financial asset is derecognized, the cumulative fair value gain or loss previously recognized in other comprehensive income is reclassified to the income statement. Equity instruments are classified as measured at fair value through other comprehensive income if, on initial recognition, the Company makes an irrevocable election to designate the instrument as at fair value through other comprehensive income. The election is made on an instrument-by-instrument basis and is not permitted if the equity investment is held for trading. Fair value gains or losses on revaluation of such equity investments are recognized in other comprehensive income and accumulated in the valuation adjustments reserve. When the equity investment is derecognized, there is no reclassification of fair value gains or losses previously recognized in other comprehensive income to the income statement. Dividends are recognized in the income statement when the right to receive payment is established. Financial assets measured at fair value through profit or loss Financial assets are classified as measured at fair value through profit or loss when the asset does not meet the criteria to be measured at amortized cost or at fair value through other comprehensive income. Such assets are carried on the balance sheet at fair value with gains or losses recognized in the income statement. This category includes loans associated with the Company’s accounts receivable securitization program and certain equity investments in listed companies. Derecognition of financial assets The Company derecognizes a financial asset when: - the rights to receive cash flows from the asset have expired; or - the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. If the Company retains substantially all of the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. Impairment of financial assets The expected credit loss model is applied for recognition and measurement of impairments in financial assets measured at amortized cost and debt instruments held at fair value through other comprehensive income. The loss allowance for the financial asset is measured at an amount equal to the 12-month expected credit losses. If the credit risk on the financial asset has increased significantly since initial recognition, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses. Changes in loss allowances are recognized in profit and loss. For trade receivables, a simplified impairment approach is applied recognizing expected lifetime losses from initial recognition. For this purpose, the Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over two years past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Company’s recovery procedures, considering legal advice where appropriate. Any recoveries made are recognized in profit or loss. Financial liabilities The subsequent measurement of financial liabilities depends on their classification, as described below: Financial liabilities measured at fair value through profit or loss Financial liabilities that meet the definition of held for trading are classified as measured at fair value through profit or loss. Such liabilities are carried on the balance sheet at fair value with gains or losses recognized in the income statement. This category includes contingent consideration and derivatives, other than those designated as hedging instruments in an effective hedge. Derivatives designated as hedging instruments in an effective hedge These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in the accounting policy for derivative financial instruments and hedging activities. Financial liabilities measured at amortized cost This is the category most relevant to the Company and comprises all other financial liabilities, including bank borrowings, debt instruments, financial loans from government agencies, payables to related parties and trade and other payables. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. Amortized cost is calculated by considering any issue costs and any discount or premium on settlement. Derecognition of financial liabilities The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. When the Company exchanges with the existing lender one debt instrument into another one with substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Company accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between the carrying amount of the liability before the modification and the present value of the cash flows after modification are recognized in profit or loss as a modification gain or loss. 4.6 Derivative financial instruments and hedging activities In order to mitigate the economic effects of exchange rate and interest rate fluctuations to which it is exposed as a result of its business activities, the Company uses derivative financial instruments, such as cross currency swaps and interest rate swaps. The Company’s derivative financial instruments are set out in Note 19 to these consolidated financial statements and the Company’s financial risk management policies are set out in Note 27. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition of profit or loss depends on the nature of the hedge relationship. The gain or loss recognized in respect of derivatives that are not designated and effective as a hedging instrument is recognized in the consolidated income statement in the line item financial derivative gain (loss). A derivative with a positive fair value is recognized as a financial asset within the line item other financial assets whereas a derivative with a negative fair value is recognized as a financial liability within the line item other financial liabilities. A derivative is presented as a non-current asset or non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Hedge accounting The Company designates certain derivatives as cash flow hedges. For further details, see Note 19 of the consolidated financial statements. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking the hedge transaction. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to any ineffective portion is recognized immediately in profit or loss and is included in the financial derivative gain (loss) line item. Amounts previously recognized in other comprehensive income and accumulated in equity in the valuation adjustments reserve are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the income statement as the recognized hedged item. Hedge accounting is discontinued when the Company revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income at that time is accumulated in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss. 4.7 Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: in the principal market for the asset or liability; or in the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: · Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities. · Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. · Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For those assets and liabilities measured at fair value at the balance sheet date, further information on fair value measurement is provided in Note 28. 4.8 Inventories Inventories comprise assets (goods) which: · Are held for sale in the ordinary course of business (finished goods); or · Are in the process of production for such sale (work in progress); or · Will be consumed in the production process or in the rendering of services (raw materials and spare parts). Inventories are stated at the lower of acquisition or production cost and net realizable value. The cost of each inventory item is generally calculated as follows: · Raw materials, spare parts and other consumables and replacement parts: the lower of weighted average acquisition cost and net realizable value. · Work in progress, finished goods and semi-finished goods: the lower of production cost (which includes the cost of materials, labor costs, direct and indirect manufacturing expenses) or net realizable value in the market. Obsolete, defective or slow-moving inventories have been reduced to net realizable value. Net realizable value is the estimated selling price less all the estimated costs of selling and distribution. The amount of any write-down of inventories (as a result of damage, obsolescence or decrease in the selling price) to their net realizable value and all losses of inventories are recognized as expenses in the year in which the write-down or loss occurs. Any subsequent reversals are recognized as income in the year in which they arise. The consumption of inventories is recognized as an expense in “Cost of sales” in the consolidated income statement in the period in which the revenue from their sale is recognized. 4.9 Biological assets The Company recognizes biological assets when: · It controls the asset as a result of past events; · It is probable that future economic benefits associated with the asset will flow to the entity; and · The fair value or cost of the asset can be measured reliably. Biological assets are measured at fair value less estimated costs to sell. The gains or losses arising on the initial recognition of a biological asset at fair value less costs to sell are included in the consolidated income statement for the period in which they arise. 4.10 Cash and cash equivalents The Company classifies under “Cash and cash equivalents” any liquid financial assets, such as for example cash on hand and at banks, deposits and liquid investments, that can be converted into cash within three months and are subject to an insignificant risk of changes in value. 4.11 Provisions and contingencies When preparing the consolidated financial statements, the Parent’s directors made a distinction between: · Provisions: present obligations, either legal, contractual, constructive or assumed by the Company, arising from past events, the settlement of which is expected to give rise to an outflow of economic benefits the amount or timing of which are uncertain; and · Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company, or present obligations arising from past events the amount of which cannot be estimated reliably or whose settlement is not likely to give rise to an outflow of economic benefits. · Contingent assets: possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The consolidated financial statements include all the material provisions with respect to which it is considered that it is probable that the obligation will have to be settled. Contingent liabilities are not recognized in the consolidated financial statements, but rather are disclosed, as required by IAS 37 (see Note 24). Provisions are classified as current or non-current based on the estimated period of time in which the obligations covered by them will have to be met. They are recognized when the liability or obligation giving rise to the indemnity or payment arises, to the extent that its amount can be estimated reliably. “Provisions” includes the provisions for pension and similar obligations assumed; provisions for contingencies and charges, such as for example those of an environmental nature and those arising from litigation in progress or from outstanding indemnity payments or obligations, and collateral and other similar guarantees provided by the Company; and provisions for medium- and long- term employee incentives. Contingent assets are not recognized, but are disclosed where an inflow of economic benefits is probable. If it has become virtually certain that an inflow of economic benefits will arise, the asset and the related income are recognized in the financial statements in the period in which the change occurs. Defined contribution plans Certain employees have defined contribution plans which conform to the Spanish Pension Plans and Funds Law. The main features of these plans are as follows: · They are mixed plans covering the benefits for retirement, disability and death of the participants. · The sponsor undertakes to make monthly contributions of certain percentages of current employees’ salaries to external pension funds. The annual cost of these plans is recognized under Staff costs in the consolidated income statement. Defined benefit plans IAS 19, Employee Benefits requires defined benefit plans to be accounted for: · Using actuarial techniques to make a reliable estimate of the amount of benefits that employees have earned in return for their service in the current and prior periods. · Discounting those benefits in order to determine the present value of the obligation. · Determining the fair value of any plan assets. · Determining the total amount of actuarial gains and losses and the amount of those actuarial gains and losses that must be recognized. The amount recognized as a benefit liability arising from a defined benefit plan is the total net sum of: · The present value of the obligations. · Minus the fair value of plan assets (if any) out of which the obligations are to be settled directly. The Company recognizes provisions for these benefits as the related rights vest and on the basis of actuarial studies. These amounts are recognized under “Provisions” in the consolidated statement of financial position, on the basis of their expected due payment dates. All plan assets are separately from the rest of the Company’s assets. Environmental provisions Provisions for environmental obligations are estimated by analyzing each case separately and observing the relevant legal provisions. The best possible estimate is made on the basis of the information available and a provision is recognized provided that the aforementioned information suggests that it is probable that the loss or expense will arise and it can be estimated in a sufficiently reliable manner. The balance of provisions and disclosures disclosed in Notes 15 and 24 reflects management’s best estimation of 4.12 Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership, which usually has the option to purchase the assets at the end of the lease under the terms agreed upon when the lease was arranged. All other leases are classified as operating leases. Finance leases At the commencement of the lease term, the Company recognizes finance leases as assets and liabilities in the consolidated statement of financial position at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. To calculate the present value of the lease payments the interest rate stipulated in the finance lease is used. The cost of assets acquired under finance leases is presented in the consolidated statement of financial position on the basis of the nature of the leased asset. The depreciation policy for these assets is consistent with that for property, plant and equipment for own use. Finance charges are recognized over the lease term on a time proportion basis. Operating leases In operating leases, the ownership of the leased asset and substantially all the risks and rewards relating to the leased asset remain with the lessor. Lease income and expenses from operating leases are credited or charged to income on an accrual basis depending on whether the Company acts as the lessor or lessee. 4.13 Current assets and liabilities In general, assets and liabilities are classified as current or non-current based on the Company’s operating cycle. However, in view of the diverse nature of the activities carried on by the Company, in which the duration of the operating cycle differs from one activity to the next, in general assets and liabilities expected to be settled or fall due within twelve months from the end of the reporting period are classified as current items and those which fall due or will be settled within more than twelve months are classified as non-current items. 4.14 Income tax |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about business combination [abstract] | |
Business Combinations | 5. Business Combinations Business combinations are accounted for using the acquisition method. The identifiable assets acquired and liabilities assumed are recognized at their fair values at the acquisition date. Acquisition costs are recognized in profit or loss as incurred. Goodwill is initially measured as the excess of the aggregate of the consideration transferred, the amount recognized for any non-controlling interest and the acquisition-date fair values of any previously held interest in the acquiree over the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date. If, after reassessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the excess is recognized immediately in profit or loss as a bargain purchase gain. When the consideration transferred by the Company in a business combination includes an asset or liability resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates at fair value with the corresponding gain or loss being recognized in profit or loss. Changes in fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. On February 1, 2018 the Company acquired 100% of the outstanding ordinary shares of Kintuck (France) SAS and Kintuck AS from a wholly-owned subsidiary of Glencore International AG (“Glencore”) and obtained control of both entities. The new subsidiaries were renamed as Ferroglobe Mangan Norge AS and Ferroglobe Manganèse France SAS. The Company completed the acquisition through its wholly-owned subsidiary Ferroatlántica. Simultaneously with the acquisition, Glencore and Ferroglobe have entered into exclusive agency arrangements for the marketing of Ferroglobe’s manganese alloys worldwide and the procurement of manganese ores to supply Ferroglobe’s plants, in both cases for a period of ten years. The business combination was recorded following IFRS 3 Business Combinations, with identifiable assets acquired and liabilities assumed provisionally recorded at their estimated fair values on the acquisition date while costs associated with the acquisition are expensed as incurred. The Company utilized the services of third-party valuation consultants, along with internal estimates and assumptions, to estimate the initial fair value of the assets acquired. The third-party valuation consultants utilized several appraisal methodologies including market and cost approaches to estimate the fair value of the identifiable net assets acquired. The following is an estimate of the fair value of assets acquired and the liabilities assumed by Ferroglobe reconciled to the value of the acquisition consideration. Balances US$'000 ASSETS Non-current assets Other intangible assets 45 Property, plant and equipment 62,487 Other non-current financial assets 50 Total non-current assets acquired 62,582 Current assets Inventories 21,314 Trade and other receivables 24,785 Other current assets 1,397 Cash and cash equivalents 29,530 Total current assets acquired 77,026 Total assets acquired 139,608 LIABILITIES Non-current liabilities Deferred tax liabilities 90 Total non-current liabilities assumed 90 Current liabilities Trade and other payables 18,048 Provisions 735 Current income tax liabilities 396 Other current liabilities 4,066 Total current liabilities assumed 23,245 Total liabilities assumed 23,335 Net assets acquired 116,273 Satisfied by: Cash 49,909 Contingent consideration 26,222 Total consideration transferred 76,131 Gain on bargain purchase 40,142 Net cash outflow arising on acquisition Cash consideration 49,909 Less: cash and cash equivalent balances acquired (29,530) 20,379 The gain on bargain purchase was primarily attributable to the fact that the production of manganese alloys was considered an ancillary business to the seller, coupled with previous weaker manganese alloy pricing in the marketplace. The gain is recorded in the caption ‘Bargain purchase gain’ in the consolidated income statement. The fair value of Trade and other receivables includes trade receivables with a fair value of $11,900 thousand. There is no difference between the gross contractual value and fair value. The contingent consideration arrangement requires the Company to pay the former owners of Kintuck (France) SAS and Kintuck AS a sliding scale commission based on the silicomanganese and ferromanganese sales spreads of Ferroglobe Mangan Norge and Ferroglobe Manganèse France, up to a maximum amount of $60,000 thousand (undiscounted). The contingent consideration applies to sales made up to eight and a half years from the date of acquisition. The potential undiscounted amount of all future payments that the Company could be required to make under the contingent consideration arrangement is between $0 thousand and $60,000 thousand. The fair value of the contingent consideration arrangement of $26,222 thousand was estimated by applying the income approach based on a Monte Carlo simulation considering various scenarios of fluctuation of future manganese alloy spreads as well at the cyclicality of manganese alloy pricing. The fair value measurement is based on significant inputs that are not observable in the market, which IFRS 13 Fair Value Measurement refers to as Level 3 inputs. Key assumptions include discount rates of 11.5 percent and 11.0 percent for Ferroglobe Mangan Norge and Ferroglobe Manganèse France Ferroglobe Mangan Norge and Ferroglobe Manganèse France contributed $112,445 thousand and $117,852 thousand respectively to the Company’s revenue, and incurred losses of $10,148 thousand and $10,436 thousand respectively for the period between the date of acquisition and December 31, 2018. If the acquisition of Ferroglobe Mangan Norge and Ferroglobe Manganèse France had been completed on the first day of the financial year, Company revenues for the period would have been $2,289,931 thousand and Company profit would have been $45,007 thousand. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Segment reporting | 6. Segment reporting Operating segments are based upon the Company’s management reporting structure. The Company’s operating segments are primarily at a country level as this is how the Chief Operating Decision Maker (CODM) assesses performance and makes decisions about resource allocation. This is due to the integrated operations within each country and the ability to reallocate production based on the individual capacity of each plant. Additionally, economic factors that may impact our results of operations, such as currency fluctuations and energy costs, are also assessed at a country level. The Company’s North America reportable segment is the result of the aggregation of the operating segments of the United States and Canada. These operating segments have been aggregated as they have similar long-term economic characteristics and there is similarity of competitive and operating risks and the political environment in the United States and Canada. The Company’s Europe reportable segment is the result of the aggregation of the operating segments of Spain, France and Norway. Similar to our United States and Canada operating segments, our Spain, France and Norway operating segments are grouped together based on the relative similarity of the EBITDA margins, competitive risks, currency risks (i.e. risks relating to the Euro), operating risks and, given they are each part of the European Union and the European Economic Community, the political and economic environment. During 2017, upon further evaluation of the management reporting structure, it was concluded that our reportable segments would be amended to no longer reflect Venezuela as a separate reportable segment. The decision was taken as a result of on-going economic, political and social instability in the region which has resulted in uncertainty surrounding the cash flow generation capacity of our operations. During the year-ended December 31, 2016, due to the uncertainty in Venezuela substantially all assets were impaired. The segment previously recognized ‘Electrometallurgy – Venezuela’ now forms part of our ‘Other segments’. The comparative periods have been restated to conform to the 2018 and 2017 reportable segment presentation. The consolidated income statements at December 31, 2018, 2017 and 2016, by reportable segment, are as follows: 2018 Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 710,716 1,447,973 208,543 94,111 (187,305) 2,274,038 Cost of sales (394,044) (1,059,474) (137,177) (43,871) 187,212 (1,447,354) Other operating income 4,943 39,817 3,420 16,859 (19,002) 46,037 Staff costs (115,555) (177,047) (23,735) (24,727) — (341,064) Other operating expense (77,670) (146,143) (26,353) (52,859) 19,095 (283,930) Depreciation and amortization charges, operating allowances and write-downs (69,009) (34,974) (5,526) (9,628) — (119,137) Impairment losses — — — (58,919) — (58,919) Net loss due to changes in the value of assets — (7) (7,616) — — (7,623) (Loss) gain on disposal of non-current assets (208) (8,369) (261) 23,402 — 14,564 Bargain purchase gain — 40,142 — — — 40,142 Operating profit (loss) 59,173 101,918 11,295 (55,632) — 116,754 Finance income 804 11,035 199 32,556 (39,220) 5,374 Finance costs (4,109) (40,831) (5,298) (51,004) 39,220 (62,022) Financial derivative gain — — — 2,838 — 2,838 Exchange differences (1,194) (10,561) 2,284 (4,665) — (14,136) Profit (loss) before tax 54,674 61,561 8,480 (75,907) — 48,808 Income tax (expense) benefit 4,949 (15,048) (3,582) (10,554) — (24,235) Profit (loss) for the year 59,623 46,513 4,898 (86,461) — 24,573 Loss (profit) attributable to non-controlling interests 4,785 (332) 358 14,277 — 19,088 Profit (loss) attributable to the Parent 64,408 46,181 5,256 (72,184) — 43,661 2017 Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 541,143 1,083,200 122,504 60,199 (65,353) 1,741,693 Cost of sales (303,096) (690,589) (81,744) (33,616) 65,650 (1,043,395) Other operating income 2,701 12,681 2,868 15,619 (15,670) 18,199 Staff costs (90,802) (147,595) (23,495) (39,851) (220) (301,963) Other operating expense (68,537) (107,130) (24,462) (55,955) 16,158 (239,926) Depreciation and amortization charges, operating allowances and write-downs (66,789) (27,404) (5,788) (4,557) 9 (104,529) Impairment losses (30,618) — — (323) (16) (30,957) Net gain due to changes in the value of assets — — 7,222 — 282 7,504 (Loss) gain on disposal of non-current assets (3,718) 301 (138) (818) 57 (4,316) Other (loss) gain — (13,604) — (2,625) 13,616 (2,613) Operating (loss) profit (19,716) 109,860 (3,033) (61,927) 14,513 39,697 Finance income 448 6,733 404 191,261 (195,138) 3,708 Finance costs (4,567) (40,106) (7,361) (48,486) 35,108 (65,412) Financial derivative loss — — — (6,850) — (6,850) Exchange differences (191) 5,938 (1,197) 3,730 (66) 8,214 (Loss) profit before tax (24,026) 82,425 (11,187) 77,728 (145,583) (20,643) Income tax (expense) benefit 29,386 (26,031) 2,068 9,692 (294) 14,821 Profit (loss) for the year 5,360 56,394 (9,119) 87,420 (145,877) (5,822) Loss (profit) attributable to non-controlling interests 4,734 (370) (147) 951 (24) 5,144 Profit (loss) attributable to the Parent 10,094 56,024 (9,266) 88,371 (145,901) (678) 2016 (*) Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 521,192 949,547 142,160 90,337 (127,199) 1,576,037 Cost of sales (325,254) (672,026) (99,124) (79,912) 132,904 (1,043,412) Other operating income 362 25,908 3,422 4,713 (8,190) 26,215 Staff costs (82,032) (132,440) (23,589) (58,577) 239 (296,399) Other operating expense (64,606) (118,269) (28,834) (37,964) 5,727 (243,946) Depreciation and amortization charges, operating allowances and write-downs (73,530) (31,730) (4,732) (12,818) (2,867) (125,677) Impairment losses (193,000) (1,077) (8,147) (59,248) (6,617) (268,089) Net gain (loss) due to changes in the value of assets — — 1,896 — (5) 1,891 Gain (loss) on disposal of non-current assets — — 21 446 (127) 340 Other (loss) gain — (32,655) — (2,514) 35,129 (40) Operating (loss) profit (216,868) (12,742) (16,927) (155,537) 28,994 (373,080) Finance income 1 11,551 744 6,639 (17,399) 1,536 Finance costs (3,249) (16,540) (6,038) (13,629) 9,205 (30,251) Exchange differences (438) 2,436 (2,164) (3,290) (57) (3,513) (Loss) profit before tax (220,554) (15,295) (24,385) (165,817) 20,743 (405,308) Income tax benefit (expense) 9,982 (10,505) 4,433 40,160 2,625 46,695 (Loss) profit for the year (210,572) (25,800) (19,952) (125,657) 23,368 (358,613) Loss (profit) attributable to non-controlling interests 6,044 (93) 856 11,827 1,552 20,186 (Loss) profit attributable to the Parent (204,528) (25,893) (19,096) (113,830) 24,920 (338,427) (*) (**) The consolidated statements of financial position at December 31, 2018 and 2017, by reportable segment are as follows: 2018 Consolidation Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (*) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Goodwill 202,848 — — — — 202,848 Other intangible assets 22,798 26,476 1,292 1,256 — 51,822 Property, plant and equipment 467,616 219,520 56,679 145,047 — 888,862 Inventories 113,673 288,669 35,944 18,684 — 456,970 Trade and other receivables (**) 267,974 274,291 50,665 834,515 (1,254,935) 172,510 Cash and cash equivalents 76,791 110,523 19,483 9,850 — 216,647 Other 15,341 85,905 8,692 24,220 — 134,158 Total assets 1,167,041 1,005,384 172,755 1,033,572 (1,254,935) 2,123,817 Equity 646,851 206,781 58,294 (27,554) — 884,372 Provisions 29,644 71,163 7,889 7,661 — 116,357 Bank borrowings — 6,914 — 134,098 — 141,012 Obligations under finance leases 1,466 — — 65,005 — 66,471 Debt instruments — — — 352,594 — 352,594 Other financial liabilities — 3,841 — 81,471 — 85,312 Trade and other payables (***) 414,022 662,667 93,970 379,468 (1,282,176) 267,951 Other 75,058 54,018 12,602 40,829 27,241 209,748 Total equity and liabilities 1,167,041 1,005,384 172,755 1,033,572 (1,254,935) 2,123,817 2017 Consolidation Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (*) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Goodwill 205,287 — — — — 205,287 Other intangible assets 26,724 20,381 1,505 10,048 — 58,658 Property, plant and equipment 512,003 167,314 64,331 174,326 — 917,974 Inventories 100,856 204,240 42,478 13,657 — 361,231 Trade and other receivables (**) 165,006 260,612 35,330 833,243 (1,175,756) 118,435 Cash and cash equivalents 10,886 153,967 6,912 12,707 — 184,472 Other 36,554 92,322 41,008 29,528 (45,212) 154,200 Total assets 1,057,316 898,836 191,564 1,073,509 (1,220,968) 2,000,257 Equity 521,819 198,059 62,933 154,947 — 937,758 Provisions 28,602 56,654 11,080 19,156 — 115,492 Bank borrowings — — — 1,003 — 1,003 Obligations under finance leases 1,994 — — 80,639 — 82,633 Debt instruments — — — 350,270 — 350,270 Other financial liabilities — 4,918 — 132,513 — 137,431 Trade and other payables (***) 321,710 584,542 95,082 380,834 (1,176,336) 205,832 Other 183,191 54,663 22,469 (45,853) (44,632) 169,838 Total equity and liabilities 1,057,316 898,836 191,564 1,073,509 (1,220,968) 2,000,257 (*) These amounts correspond to balances between segments that are eliminated at consolidation . (**) Trade and other receivables includes non-current and current receivables from group and related parties. (***) Trade and other payables includes non-current and current payables from group and related parties. Other disclosures Sales by product line Sales by product line are as follows: 2018 2017 2016 US$'000 US$'000 US$'000 Silicon metal 933,366 739,618 751,508 Manganese-based alloys 527,757 363,644 223,451 Ferrosilicon 359,374 266,862 242,788 Other silicon-based alloys 215,697 188,183 173,901 Silica fume 37,061 36,338 37,480 Energy 44,185 16,661 20,380 Other 156,598 130,387 126,529 Total 2,274,038 1,741,693 1,576,037 Information about major customers Total sales of $758,894 thousand, $820,897 thousand, and $656,907 thousand were attributable to the Company’s top ten customers in 2018, 2017, and 2016 respectively. During 2018, there was no single customer representing greater than 10% of the Company’s sales. During 2017 and 2016, sales corresponding to Dow Corning Corporation represented 12.2% and 13.7% of the Company’s sales, respectively. Sales to Dow Corning Corporation are included partially in the Electrometallurgy - North America segment and partially in the Electrometallurgy - Europe segment. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Goodwill | 7. Goodwill Changes in the carrying amount of goodwill during the years ended December 31, are as follows: January 1, Impairment Exchange December 31, Impairment Exchange December 31, 2017 (Note 25.5) differences 2017 (Note 25.5) differences 2018 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Globe Specially Metals, Inc. (Globe) 230,210 (30,618) 5,695 205,287 — (2,439) 202,848 Total 230,210 (30,618) 5,695 205,287 — (2,439) 202,848 In accordance with the requirements of IAS 36, goodwill is tested for impairment annually and is tested for impairment between annual tests if a triggering event occurs that would indicate the carrying amount of a cash-generating unit may be impaired. Impairment testing for goodwill is done at a cash-generating unit level, and the Company performs its annual impairment test at the end of the annual reporting period (December 31). The estimate of the recoverable value of the cash-generating units requires significant judgment in evaluation of overall market conditions, estimated future cash flows, discount rates and other factors, and are calculated based on management’s business plans. On December 23, 2015, Ferroglobe PLC consummated the acquisition of 100% of the equity interests of Globe Specialty Metals, Inc. and subsidiaries and FerroAtlántica. This Business Combination was accounted for using the acquisition method of accounting for business combinations under IFRS 3 Business Combinations, with FerroAtlántica treated as the accounting acquirer and GSM as the acquiree. The aggregate of the fair values as of the closing date of the Business Combination of the assets acquired and liabilities assumed was recorded as goodwill. During the year ended December 31, 2018, in connection with our annual goodwill impairment test, the Company did not recognize an impairment charge. During the year ended December 31, 2017, in connection with our annual goodwill impairment test, the Company recognized an impairment charge of $30,618 thousand related to the partial impairment of goodwill in Canada, resulting from a decline in future estimated sales prices and a decrease in our estimated long-term growth rate which caused the Company to revise its expected future cash flows from its Canadian business operations. The impairment charge is recorded within the Electrometallurgy – North America reportable segment. Ferroglobe operates in a cyclical market, and silicon and silicon-based alloy index pricing and foreign import pressure into the U.S. and Canadian markets impact the future projected cash flows used in our impairment analysis. Recoverable value was estimated based on discounted cash flows. Estimates under the Company’s discounted income based approach involve numerous variables including anticipated sales price and volumes, cost structure, discount rates and long term growth that are subject to change as business conditions change, and therefore could impact fair values in the future. As of December 31, 2018, the remaining goodwill for the U.S and Canadian cash-generating units is $172,913 thousand and $29,935 thousand, respectively. Key assumptions used in the determination of recoverable value In determining the asset recoverability through value in use, management makes estimates, judgments and assumptions on uncertain matters. For each cash-generating unit, the value in use is determined based on economic assumptions and forecasted operating conditions as follows: 2018 2017 U.S. Canada U.S. Canada Weighted average cost of capital 11.0 % 10.5 % 10.5 % 10.5 % Long-term growth rate 2.0 % 2.0 % 1.5 % 1.5 % Normalized tax rate 22.0 % 26.5 % 27.1 % 26.5 % Normalized cash free net working capital 21.0 % 21.0 % 21.0 % 21.0 % The Company has defined a financial model which considers the revenues, expenditures, cash flows, net tax payments and capital expenditures on a five year period (2019‑2023), and perpetuity beyond this tranche. The financial projections to determine the net present value of future cash flows are modeled considering the principal variables that determine the historic flows of each group of cash-generating unit. Sensitivity to changes in assumptions Changing management’s assumptions, could significantly affect the evaluation of the value in use of our cash generating units and, therefore, the impairment result. The following changes to the assumptions used in the impairment test lead to the following: Excess of Sensitivity on Sensitivity on Sensitivity on recoverable discount rate long-term growth rate cash flows value over Decrease Increase Decrease Increase Decrease Increase Goodwill carrying value by 10% by 10% by 10% by 10% by 10% by 10% (in millions of US$) Electrometallurgy - U.S. 172.9 43.2 94.4 (73.7) (11.0) 11.5 (59.7) 59.7 Electrometallurgy - Canada 29.9 4.8 17.7 (13.8) (2.2) 2.3 (12.1) 12.1 Total 202.8 |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | |
Other intangible assets | 8. Other intangible assets Changes in the carrying amount of other intangible assets during the years ended December 31 are as follows: Other Accumulated Development Power Supply Computer Intangible Depreciation Impairment Expenditure Agreements Rights of Use Software Assets (Note 25.3) (Note 25.5) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2017 40,354 37,836 20,345 5,815 21,784 (54,629) (8,666) 62,839 Additions 260 — 55 — 14,472 (8,440) (443) 5,904 Disposals — — — (10) (14,294) 565 — (13,739) Transfers from/(to) other accounts 4,044 — — — (150) (3,894) — — Exchange differences 5,824 — 2,639 242 2,451 (6,353) (1,149) 3,654 Balance at December 31, 2017 50,482 37,836 23,039 6,047 24,263 (72,751) (10,258) 58,658 Additions 992 — — — 26,385 (9,312) (16,073) 1,992 Disposals — — — (64) (7,260) — — (7,324) Business combinations (Note 5) — — — 45 — — — 45 Transfers from/(to) other accounts 1,919 — — — (1,919) — — — Exchange differences (2,408) — (648) (101) (1,656) 2,546 718 (1,549) Balance at December 31, 2018 50,985 37,836 22,391 5,927 39,813 (79,517) (25,613) 51,822 Additions and disposals in other intangible asset in 2018 and 2017 primarily relate to the acquisition, use and expiration of rights held to emit greenhouse gasses by certain Spanish, French and Canadian subsidiaries (see Note 4.20). As a result of the Business Combination, the Company acquired a power supply agreement which provides favorable below-market power rates to the Alloy, West Virginia facility, which terminates in December 2021. During 2018 the Company recognised an impairment of $13,947 thousand of development expenditures in relation to our solar-grade silicon metal project based in Puertollano, Spain. Refer to Note 9 for further details. At December 31, 2018, the Company has other intangible assets of $26,948 thousand, pledged as security for outstanding bank loans and other payables. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 9. Property, plant and equipment The detail of property, plant and equipment, net of the related accumulated depreciation and impairment in 2018 and 2017 is as follows: Advances and Property, Plant Other Items of Other Fixtures, and Equipment Property, Land and Plant and Tools and in the Course of Mineral Plant Accumulated Buildings Machinery Furniture Construction Reserves and Equipment Depreciation Impairment Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2017 191,058 1,220,055 5,972 49,865 59,989 32,203 (665,507) (112,029) 781,606 Additions 1,665 1,849 2,262 71,204 — 1,455 (94,051) 104 (15,512) Disposals and other (202) (56,475) (607) (1,029) — (164) 49,403 — (9,074) Transfers from/(to) other accounts 5,228 49,892 377 (58,480) (90) (58) 3,131 — — Exchange differences 16,843 96,709 450 9,225 460 (1,072) (73,575) (5,058) 43,982 Additions to the scope of consolidation 1,648 97 — 16,985 — — — — 18,730 Transfer from assets and disposal groups classified as held for sale (see Note 29) 35,058 178,677 79 40,814 — — (155,726) (660) 98,242 Balance at December 31, 2017 251,298 1,490,804 8,533 128,584 60,359 32,364 (936,325) (117,643) 917,974 Additions 2,983 9,104 12 99,016 — 4,293 (109,832) (42,846) (37,270) Disposals and other (4,687) (34,612) (1,084) (2,657) — (587) 35,921 — (7,706) Transfers from/(to) other accounts 24,823 69,439 4,850 (97,086) — 222 (2,248) — — Exchange differences (10,743) (74,554) (405) (5,941) (951) (383) 48,455 3,292 (41,230) Business combinations (Note 5) 6,846 53,337 82 1,790 — 432 — — 62,487 Business disposals (35,211) (26,471) (43) (342) — — 56,674 — (5,393) Balance at December 31, 2018 235,309 1,487,047 11,945 123,364 59,408 36,341 (907,355) (157,197) 888,862 Additions to the scope of consolidation in 2017 represents the contribution by the non-controlling interest partner, Blue Power Corporation, S.L. (“Blue Power”) to the solar production facility located in Puertollano, Spain. Business combinations in 2018 relates to the assets acquired as part of the acquisition of the Glencore plants in France and Norway, see Note 5. During 2018 the Company disposed of Hidro Nitro Española S.A. which resulted in a net reduction of property, plant and equipment of $5,393 thousand. The net gain on the disposal of the business is disclosed in Note 25.6. During 2018 the Company recognised an impairment of $40,537 thousand in Impairment losses (Electrometallurgy – Other segment) in relation to our solar-grade silicon metal project based in Puertollano, Spain. At the end of 2018 the Company has decided to temporarily suspend investment in the project due to deterioration in the market environment for solar grade silicon (or polysilicon) worldwide. The Company is preserving the technology and know-how in order to be able to finalize the construction of the factory as soon as market circumstances change. The Company continues to recognize these project assets as $39,101 thousand based on the higher of fair value less costs of disposal and value in use. Fair value less costs of disposal related to land and buildings was determined based on recent sales of comparable industrial properties located near the project. Fair value less costs of disposal related to machinery and equipment was determined by assessing the recoverability of the assets to a market participant. At December 31, 2018 and 2017, the Company has property, plant and equipment of $514,625 thousand and $660,960 thousand, respectively, pledged as security for outstanding bank loans and other payables. Finance leases Finance leases held by the Company included in Plant and Machinery at December 31 are as follows: Lease Time Historical Accumulated Carrying Interest Payments Life Elapsed Cost Cost Depreciation Amount Payable Outstanding (Years) (Years) EUR €'000 US $'000 US $'000 US $'000 US $'000 US $'000 December 31, 2018 Hydroelectrical installations 10 6.6 109,047 124,859 (82,940) 41,918 — 65,005 December 31, 2017 Hydroelectrical installations 10 5.6 109,047 130,780 (84,000) 46,780 — 80,639 These assets will revert back to the Spanish State, free of charges, between 2038 and 2060. The costs incurred at the time of the reversal are not deemed to be significant. Commitments At December 31, 2018 and 2017, the Company has capital expenditure commitments totaling $26,935 thousand and $4,598 thousand, respectively, primarily related to maintenance and improvement works at plants. |
Financial assets and other rece
Financial assets and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Other financial assets | |
Financial assets and other receivables | 10. Financial assets and other receivables The company’s financial assets and their classification under IFRS 9 are as follows: 2018 classification Note Amortised cost Fair value through profit or loss - mandatorily measured Fair value through other comprehensive income - designated Total US$'000 US$'000 US$'000 US$'000 Other financial assets 10.1 3,264 69,602 — 72,866 Receivables from related parties 23 16,514 — — 16,514 Trade receivables 10.2 70,755 — — 70,755 Other receivables 10.2 7,784 — — 7,784 Cash and cash equivalents 216,647 — — 216,647 Total financial assets 314,964 69,602 — 384,566 10.1 Other financial assets At December 31, 2018, other financial assets comprise the following: 2018 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Other financial assets at amortised cost 3,264 — 3,264 Listed equity securities — 2,523 2,523 Debt investments at fair value through profit or loss 67,079 — 67,079 Total 70,343 2,523 72,866 Debt investments at fair value through profit or loss comprise an investment in subordinated loan notes issued by a special purpose entity that has purchased accounts receivable from the Company pursuant to a securitization program (see ‘Securitization of trade receivables’ below). The planned maturity of this amount is July 31, 2020 when the program term ends. At December 31, 2017, other financial assets comprise the following: 2017 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Loans and receivables 3,081 — 3,081 Other 86,234 2,469 88,703 Total 89,315 2,469 91,784 Loans and receivables are stated net of provision for impairment of $4,462 thousand. Other includes an amount of $82,638 thousand corresponding to an investment in subordinated loan notes issued by a special purpose entity that has purchased accounts receivable from the Company pursuant to a securitization program (see ‘Securitization of trade receivables’ below). The planned maturity of this amount is July 31, 2020 when the program term ends. Securitization of trade receivables On July 31, 2017, the Company entered into an accounts receivable securitization program (the “Program”) where trade receivables held by the Company’s subsidiaries in the United States, Canada, Spain and France are sold to Ferrous Receivables DAC, a special purpose entity domiciled and incorporated in Ireland (the “SPE”). Eligible receivables are sold to the SPE on an on-going basis at an agreed upon purchase price. Part of the consideration is received upfront in cash and part is deferred in the form of senior subordinated and junior subordinated loans notes issued by the SPE to the selling entities. Up to $303,000 thousand of upfront cash consideration can be provided by the SPE under the Program, financed by ING Bank N.V., as senior lender and Finacity Capital Management Inc., as intermediate subordinated lender and control party (2017: $248,000 thousand). In respect of trade receivables outstanding at December 31, 2018, the SPE had provided upfront cash consideration of approximately $227,360 thousand (2017: $166,525 thousand). The Program has a three-year term until July 31, 2020. During the year ended December 31, 2018, the Company sold $2,059 million of trade receivables to the SPE (2017: approximately $850 million). The loss on transfer of the receivables, or purchase discount, which equates to difference between the carrying amount of the receivable and the purchase consideration, was $22,647 thousand and has been recognized within finance costs in the consolidated income statement (2017: $7,256 thousand). As a lender to the SPE, the Company earns interest on its senior subordinated and junior subordinated loan receivables. During the year ended December 31, 2018, the Company earned interest of $3,403 thousand in respect of these loan receivables, recognized within finance income in the consolidated income statement (2017: $1,313 thousand). The Company is engaged as master servicer to the SPE whereby the Company is responsible for the cash collection, reporting and cash application of the sold receivables. As master servicer, the Company earns a fixed-rate management fee and an additional servicing fee which entitles the Company to substantially all of the residual net profit of the SPE. This results in the Company being exposed to variable returns. The additional servicing fee is paid out monthly by the SPE and is settled last in the priority of payments after the settlement of all other amounts due. During the year ended December 31, 2018, the Company earned fixed-rate servicing fees of $2,961 thousand (2017: $622 thousand) and additional servicing fees of $11,174 thousand. Judgements relating to the consolidation of the SPE The Company does not own shares in the SPE or have the ability to appoint its directors. In determining whether to consolidate the SPE, the Company has evaluated whether it has control over the SPE, in particular, whether it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Receivables are sold to the SPE under a true sale opinion with legal interest transferred from the Company to the SPE. While the sale of receivables to the SPE is without credit recourse, the Company continues to be exposed to the variability of risks and rewards associated with ownership as it is exposed to credit risk as senior subordinated and junior subordinated lender and it has rights to variable returns in respect of its remuneration as master servicer. The Company considers that the returns of the investees in the SPE are affected by the management of the receivables portfolio. In particular, it is the management of any impaired receivables that significantly impacts the variability of the returns of the SPE. The act of servicing receivables on a day-to-day basis does not constitute a relevant activity, as this does not significantly impact the returns of the SPE. The intermediate subordinated lender, has the unabated ability to remove the Company as servicer of impaired receivables and take the decision to sell such receivables, giving it the unilateral power to affect the relevant activities of these receivables and thereby influence the variable returns. Accordingly, the Company has concluded that it does not control the SPE and therefore does not include the SPE in the Company’s consolidation. Derecognition of transferred financial assets The Company considers that when receivables are sold to the SPE, it has neither substantially transferred or substantially retained all the variability of risks and rewards associated with ownership of the receivables. The assets are pledged as security under the Senior Loans, therefore the SPV is restricted from selling them. According to that, the Company concludes that control of the assets has not been transferred and it should recognize the assets to the extent of its continuing involvement. This continuing involvement has been considered to equate to the investment in the junior subordinated loan, and therefore has been deemed immaterial. At December 31, 2018, the sale of trade receivables has resulted in the recognition of loans to the SPE and receivables from the SPE totaling $67,079 thousand in aggregate, presented within other non-current financial assets. These carrying value of these financial assets represent the Company’s maximum exposure to loss from the SPE. As senior subordinated and junior subordinated lender to the SPE, the Company’s has a security interest in the sold receivables. This interest is junior to that of the senior lender, ING Bank N.V. The Company’s expected credit loss in respect of these loans is not material. The investment in the senior subordinated and junior subordinated loans is carried at fair value with changes in fair value recognized in profit and loss. As of December 31, 2018, the fair value did not differ significantly from the face value of the loans, and the valuation has been considered as level III in the IFRS fair value hierarchy since it is not primarily based on observable inputs. The main characteristics of the senior subordinated and junior subordinated loans at December 31, 2018, are as follows: Amount Interest US$'000 Rate Currency Senior Subordinated Loan 59,474 U.S. Dollars Junior Subordinated Loan 277 U.S. Dollars The junior subordinated loan ranks fourth in the order of priority of payments, whereas the senior subordinated loan ranks second in the priority of payments after the senior lender. Finacity Capital Management Inc. investment in the intermediate subordinated loan ranks third in the order of priority of payments and the maximum investment committed by Finacity Capital Management Inc. amounts to $3,000 thousand. 10.2 Trade and other receivables Trade and other receivables comprise the following at December 31: 2018 2017 US$'000 US$'000 Trade receivables 75,719 85,293 Less – allowance for doubtful debts (4,964) (17,346) 70,755 67,947 Tax receivables (1) 60,851 27,118 Government grant receivables 16,606 7,904 Other receivables 7,784 8,494 Total 155,996 111,463 (1) “Tax receivables” is primarily related to VAT receivables, which are recovered either by offsetting against VAT payables or are expected to be refunded by the tax authorities in the relevant jurisdictions. The trade and other receivables disclosed above are short-term in nature and therefore their carrying amount is considered to approximate their fair value. The changes in the allowance for doubtful debts during 2018 and 2017 were as follows: Allowance US$'000 Balance at January 1, 2017 14,671 Impairment losses recognized 1,784 Amounts written off as uncollectible (643) Exchange differences 1,534 Balance at December 31, 2017 17,346 Impairment losses recognized 3,190 Amounts written off as uncollectible (15,118) Exchange differences (454) Balance at December 31, 2018 4,964 Government grants The Company has been awarded government grants in relation to its operations in France, Spain and Norway, including grants in relation to the compensation of costs associated with the emission of CO 2 . During the year ended December 31, 2018, the Company recognized $26,369 thousand of income related to government grants, of which $18,923 thousand was deducted against the related expense in cost of sales and $7,446 thousand was recognized as other operating income (2017: $15,716 thousand of income, of which $9,234 thousand was deducted against the related expense in cost of sales and $6,482 thousand was recognized as other operating income). The Company has no unfulfilled conditions in relation to government grants, but certain grants would be repayable if the Company were to substantially curtail production or employment at certain plants. The carrying amounts of the government grant receivables include receivables which are subject to a factoring arrangement. Under this arrangement, the Company has transferred receivables to the factor in exchange for cash and is prevented from selling or pledging the receivables. However, the Company has retained late payment and credit risk. The Company therefore continues to recognise the transferred assets in their entirety in its balance sheet. The amount repayable under the factoring agreement is presented as secured borrowing. At December 31, 2018, the carrying amount of both the factored receivables and the secured borrowings is $6,913 thousand. Factoring of other receivables The Company enters into certain factoring without recourse arrangements for other receivables. There were $6,102 thousand and $3,801 thousand of factored receivables outstanding as of December 31, 2018 and 2017, respectively. These factoring arrangements transfer substantially all the economic risks and rewards associated with the ownership of accounts receivable to a third party and therefore are accounted for by derecognizing the accounts receivable upon receiving the cash proceeds of the factoring arrangement. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories. | |
Inventories | 11. Inventories Inventories comprise the following at December 31: 2018 2017 US$'000 US$'000 Finished goods 197,982 158,431 Raw materials in progress and industrial supplies 222,912 177,728 Other inventories 34,887 24,902 Advances to suppliers 1,189 170 Total 456,970 361,231 During 2018 the Company recognised an expense of $11,376 thousand (2017: $405 thousand) in respect of write-downs of inventory to net realisable value. The Company records expense for the write-down of inventories to Cost of sales in the consolidated income statement. At December 31, 2018, approximately $314,067 thousand of inventories are secured as collateral for several outstanding loan agreements. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
Other assets abstract | |
Other assets | 12. Other assets Other assets comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Guarantees and deposits given 2,208 11 2,219 2,022 8 2,030 Prepayments and accrued income 16 3,672 3,688 — 2,977 2,977 Biological assets 7,790 — 7,790 27,279 — 27,279 Other assets 472 5,130 5,602 758 6,941 7,699 Total 10,486 8,813 19,299 30,059 9,926 39,985 Biological assets comprise timber farms in South Africa, which are a source of raw materials used for the production of silicon metal. The biological assets are measured at fair value (see Note 28). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [abstract] | |
Equity | 13. Equity Share capital Ferroglobe PLC was incorporated on February 5, 2015 and issued one ordinary share with a face value of $1.00. The share was issued but uncalled. On October 13, 2015, the Company increased its share capital by £50,000 by issuing 50,000 sterling non-voting redeemable preference shares (the “Non-voting Shares”) as well as 14 ordinary shares with a par value of $1.00. Subsequently on October 13, 2015, the Company consolidated the 15 ordinary shares at a par value of $1.00 to two ordinary shares with a par value of $7.50, for a total amount of $15.00. On December 23, 2015, the Company acquired all of the issued and outstanding ordinary shares from Grupo Villar Mir, S.A.U., par value €1,000 per share, of Grupo FerroAtlántica, S.A.U. in exchange for 98,078,161 newly-issued Ferroglobe Class A ordinary shares, nominal value $7.50 per share, making Grupo FerroAtlántica, S.A.U. a wholly-owned subsidiary of the Company. The company subsequently redeemed all Non-voting Shares. Subsequently on December 23, 2015, Gordon Merger Sub, Inc., a wholly owned subsidiary of the Company, merged with Globe Specialty Metals, Inc., and all outstanding shares of GSM common stock, par value $0.0001 per share were converted to the right to receive one newly-issued Ferroglobe ordinary share, nominal value $7.50 per share. The ordinary shares were registered by the Company pursuant to a registration statement on Form F‑4, which was declared effective by the SEC on August 11, 2015, and trade on the NASDAQ Global Select Market under the ticker symbol “GSM.” On June 22, 2016 the Company completed a reduction of the share capital and as such the nominal value of each share has been reduced from $7.50 to $0.01, with the amount of the capital reduction being credited to a distributable reserve. On November 18, 2016, Class A Ordinary Shares were converted into ordinary shares of Ferroglobe as a result of the distribution of beneficial interest units in the Ferroglobe Representation and Warranty Insurance Trust to certain Ferroglobe shareholders. During the year ended December 31, 2017, the Company issued 138,578 new ordinary shares, comprising: 108,578 shares issued upon vesting of restricted stock units; and 30,000 shares issued upon exercise of stock options. During the year ended December 31, 2018, the Company issued 40,000 new ordinary share upon exercise of stock options and cancelled 1,152,958 ordinary shares pursuant to a share repurchase program (see below). At December 31, 2018, there were 170,863,773 ordinary shares in issue with a par value of $0.01, for a total issued share capital of $1,784 thousand, (2017: 171,976,731 ordinary shares in issue with a par value of $0.01, for a total issued share capital of $1,796 thousand). At December 31, 2018, the Company’s largest shareholder is as follows: Number of Shares Percentage of Name Beneficially Owned Outstanding Shares (*) Grupo Villar Mir, S.A.U. 91,125,521 % (*) 169,122,682 ordinary shares were outstanding at 31 December 2018, comprising 170,863,773 shares in issue less 1,174,091 shares held in treasury Valuation adjustments Valuation adjustments comprise the following at December 31: 2018 2017 US$'000 US$'000 Actuarial gains and losses (390) (2,998) Hedging instruments and other (11,169) (13,801) Total (11,559) (16,799) Capital management The Company’s primary objective is to maintain a balanced and sustainable capital structure through the industry’s economic cycles, while keeping the cost of capital at competitive levels so as to fund the Company’s growth. The main sources of financing are as follows: 1. cash flow from operations; 2. bank borrowings, including revolving credit facilities; 3. debt instruments, including the senior notes due 2022; and 4. finance leases, predominantly in relation to hydroelectrical installations. The Company also focuses on optimizing its working capital, which has included the sale of trade receivables pursuant to a securitization program (see Note 10). The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of financial covenants. To maintain or adjust the capital structure, the Company may restructure or issue new borrowings or debt, make dividend payments, return capital to shareholders or issue new shares. Management’s review of the Company’s capital structure includes monitoring of the leverage ratio, which was as follows at December 31: 2018 2017 2016 (***) US$'000 US$'000 US$'000 Gross financial debt (*) 645,389 571,337 514,587 Cash and cash equivalents (216,647) (184,472) (196,931) Total net financial debt 428,742 386,865 317,656 Total equity (**) 884,372 937,758 892,042 Total net financial debt / total equity 48.48 % 41.25 % 35.61 % (*) Gross financial debt comprises bank borrowings, obligations under finance leases, debt instruments and other financial liabilities. (**) (***) At December 31, 2016, net financial debt excludes gross financial debt of $86,959 thousand and cash and cash equivalents of $51 thousand related to the Spanish energy business as these balances were classified as held for sale as at that date (see Note 29). If these balances had been included, net financial debt would have been $404,564 thousand and the net financial debt / equity ratio would have been 45.4%. The classification of the Company’s gross financial debt between non-current and current at December 31 is as follows: 2018 2017 2016 (*) Balance Balance Balance US$'000 % US$'000 % US$'000 % Non-current gross financial debt 560,738 86.88 % 458,056 80.17 % 269,325 52.34 % Current gross financial debt 84,651 13.12 % 113,281 19.83 % 245,262 47.66 % Total gross financial debt 645,389 100.00 % 571,337 100.00 % 514,587 100.00 % (*) At December 31, 2016, gross financial debt excluded $86,959 thousand related to the Spanish energy business, of which $76,452 thousand would have been presented as non-current and $10,507 thousand would have been presented as current had the business not been classified as held for sale (see Note 29). Had these balances been included, gross financial debt would have been $601,546 thousand. Share Repurchase Program At a general meeting of its shareholders held on August 3, 2018, shareholders granted authority to the Company to effect share repurchases. The Company is accordingly authorised for a period of five years to enter into contracts with appointed brokers under which the Company may undertake purchases of its ordinary shares – acquired by the brokers on the NASDAQ and through other permitted channels – of up to approximately 10% of its issued ordinary share capital, at a minimum price of $0.01 per share, at a maximum price for such shares of 5% above the average volume-weighted average price of the Company's shares over the five business days prior to purchase and subject to additional restrictions (including as to pricing, volume, timing and the use of brokers or dealers) under applicable U.S. securities laws. Subsequently, the Company’s Board of Directors authorised the repurchase of up to $20,000 thousand of the Company's ordinary shares in the period ending December 31, 2018. Dividends On May 21, 2018, our Board of Directors approved an interim dividend per ordinary share of $0.06. The dividend totaling $10,321 thousand, was paid on June 29, 2018 to shareholders of record at the close of business on June 8, 2018. On August 20, 2018, our Board of Directors approved an interim dividend per ordinary share of $0.06. The dividend totaling $10,321 thousand, was paid on September 20, 2018 to shareholders of record at the close of business on September 5, 2018. There were no dividends paid or proposed by the Company during the year ended December 31, 2017. During the year ended December 31, 2016, the Company declared four interim dividend payments of $0.08 per share, paid on March 14, August 12, September 28, and December 29, and each totaling $13,747 thousand, respectively, distributed as cash payments through reserves. As of December 31, 2016, all dividends declared were paid. Non-controlling interests The changes in non-controlling interests in the consolidated statements of financial position in 2018 and 2017 were as follows: Balance US$'000 Balance at January 1, 2017 125,556 Loss for the year (5,144) Dividends paid to joint venture partner (7,350) Non-controlling interest arising on the acquisition of FerroSolar Opco Group S.L. 6,750 Translation differences and other 1,922 Balance at December 31, 2017 121,734 Loss for the year (19,088) Increase of Parent's ownership interest in FerroAtlántica de Venezuela S.A. 14,389 Translation differences and other (890) Balance at December 31, 2018 116,145 The stand-alone statutory information regarding the largest non-controlling interests, in accordance with IFRS 12 Disclosure of Interests in Other Entities, is as follows: WVA Manufacturing, LLC (WVA) was formed on October 28, 2009 as a wholly-owned subsidiary of Globe. On November 5, 2009, Globe sold a 49% membership interest in WVA to Dow Corning Corporation (currently named “Dow”), an unrelated third party. As part of the sale of the 49% membership interest to Dow, an operating agreement and an output and supply agreement were established. The output and supply agreement states that of the silicon metal produced by WVA, 49% will be sold to Dow and 51% to Globe, which represents each member’s ownership interest, at a price equal to WVA’s actual production cost plus $100 per metric ton. The agreement will automatically terminate upon the dissolution or liquidation of WVA in accordance with the joint venture agreement between Globe and Dow. As of December 31, 2018 and 2017, the balance of Non-controlling interest related to WVA was $77,343 thousand and $80,868 thousand, respectively. Quebec Silicon Limited Partnership (QSLP), formed under the laws of the Province of Québec on August 20, 2010 is managed by its general partner, Quebec Silicon General Partner Inc., which is a wholly-owned subsidiary of Globe. QSLP owns and operates the silicon metal operations in Bécancour, Québec. QSLP’s production output is subject to a supply agreement, which sells 51% of the production output to Globe and 49% to Dow, which represents each member’s ownership interest, at a price equal to QSLP’s actual production cost plus 31 Canadian dollars per metric ton. As of December 31, 2018 and 2017, the balance of non-controlling interest related to QSLP was $44,796 thousand and $46,830 thousand, respectively. 2018 2017 WVA QSLP WVA QSLP US$'000 US$'000 US$'000 US$'000 Statement of Financial Position Non-current assets 84,864 62,725 88,532 68,521 Current assets 59,957 42,125 45,269 33,076 Non-current liabilities 14,677 15,406 14,678 14,213 Current liabilities 38,060 24,356 36,359 18,346 Income Statement Sales 168,041 108,764 161,014 97,697 Operating profit 6,319 2,284 5,947 467 Profit before taxes 6,319 979 5,947 122 Net (loss) income (6,458) 478 14,678 42 Cash Flow Statement Cash flows from operating activities 10,025 4,317 16,017 7,076 Cash flows from investing activities (3,830) (4,980) (2,193) (5,422) Cash flows from financing activities — — (15,000) (2) Exchange differences on cash and cash equivalents in foreign currencies — (32) — 68 Beginning balance of cash and cash equivalents 340 2,462 1,516 742 Ending balance of cash and cash equivalents 6,535 1,767 340 2,462 |
Earnings (loss) per ordinary sh
Earnings (loss) per ordinary share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Earnings (loss) per ordinary share | 14. Earnings (loss) per ordinary share Basic earnings (loss) per ordinary share are calculated by dividing the consolidated profit (loss) for the year attributable to the Parent by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares held in the year, if any. Dilutive earnings (loss) per share assumes the exercise of stock options, provided that the effect is dilutive. 2018 2017 2016 Basic earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) 43,661 (678) (338,427) Denominator: Weighted average basic shares outstanding 171,406,272 171,949,128 171,838,153 Basic earnings (loss) per ordinary share (US$) 0.25 — (1.97) Diluted earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) 43,661 (678) (338,427) Denominator: Weighted average basic shares outstanding 171,406,272 171,949,128 171,838,153 Effect of dilutive securities 123,340 — — Weighted average dilutive shares outstanding 171,529,612 171,949,128 171,838,153 Diluted earnings (loss) per ordinary share (US$) 0.25 — (1.97) Potential ordinary shares of 269,116, of 70,673, and of 96,236 were excluded from the calculation of diluted earnings (loss) per ordinary share in 2018, 2017, and 2016 respectively because their effect would be anti-dilutive. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions [abstract] | |
Provisions | 15. Provisions Provisions comprise the following at December 31: 2018 2017 Non- Current Current Total Non- Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Provision for pensions 52,529 197 52,726 59,195 — 59,195 Environmental provision 2,880 331 3,211 3,121 346 3,467 Provisions for litigation — 2,399 2,399 — 11,732 11,732 Provisions for third-party liability 7,270 — 7,270 7,639 — 7,639 Provisions for C02 emissions allowances 2,859 25,111 27,970 — 7,281 7,281 Other provisions 10,249 12,532 22,781 12,442 13,736 26,178 Total 75,787 40,570 116,357 82,397 33,095 115,492 The changes in the various line items of provisions in 2018 and 2017 were as follows: Provisions for Provisions for Provisions for Provision for Environmental Litigation Third CO2 Emissions Other Pensions Provision in Progress Party Liability Allowances Provisions Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2017 60,876 3,083 — 5,835 5,512 26,278 101,584 Charges for the year 5,082 133 10,807 2,451 6,946 1,494 26,913 Provisions reversed with a credit to income (1,321) — (237) (181) — (545) (2,284) Amounts used (2,304) (93) — — (5,907) (2,911) (11,215) Provision against equity (4,511) — — — — — (4,511) Transfers from/(to) other accounts — — 931 (12) — (612) 307 Exchange differences and others 1,373 344 231 (454) 730 1,009 3,233 Transfer from liabilities associated with assets held for sale (see Note 29) — — — — — 1,465 1,465 Balance at December 31, 2017 59,195 3,467 11,732 7,639 7,281 26,178 115,492 Charges for the year 4,611 103 392 229 26,348 2,483 34,166 Provisions reversed with a credit to income (36) — — (9) — (1,524) (1,569) Amounts used (2,076) — (9,595) (239) (5,470) (3,039) (20,419) Provision against equity (3,568) — — — — — (3,568) Transfers from/(to) other accounts 277 — — — — — 277 Exchange differences and others (5,677) (359) (130) (350) (189) (2,035) (8,740) Additions from business combinations (see Note 5) — — — — — 735 735 Disposals from business divestitures — — — — — (17) (17) Balance at December 31, 2018 52,726 3,211 2,399 7,270 27,970 22,781 116,357 The main provisions relating to employee obligations are as follows: France These relate to various obligations assumed by FerroPem, S.A.S. with various groups of employees relate to long-service benefits, medical insurance supplements and retirement obligations, all of which are defined benefit obligations, whose changes in 2018 and 2017 were as follows: 2018 2017 US$'000 US$'000 Obligations at the beginning of year 29,768 29,733 Current service cost 1,678 1,834 Borrowing costs 470 383 Actuarial differences (700) (4,570) Benefits paid (1,818) (1,471) Exchange differences (1,349) 3,859 Obligations at the end of year 28,049 29,768 At December 31, 2018 and 2017, the effect of a 1% change in the cost of this provision would have resulted in a change to the provision of approximately $3,664 thousand and $3,970 thousand, respectively. The following table reflects the gross benefit payments that are expected to be paid for the benefit plans for the year ended December 31, 2018: 2018 US$'000 2019 1,597 2020 977 2021 1,179 2022 1,329 2023 2,007 Years 2024-2028 8,628 The subsidiary recognized provisions in this connection based on an actuarial study performed by an independent expert. South Africa Defined benefit plans relate to Retirement medical aid obligations and Retirement benefits. Actuarial valuations are performed periodically by independent third parties and in the actuary’s opinion the fund was in a sound financial position. The valuation was based upon the amounts as per the latest valuation report received from third party experts. Retirement medical aid obligations The Company provides post-retirement benefits by way of medical aid contributions for employees and dependents. Retirement benefits It is the policy of the Company to provide retirement benefits to all its employees and therefore membership of the retirement fund is compulsory. The Company has both defined contribution and defined benefit plans. The pension fund obligation is recognized in current provisions as the Company will contribute the difference to the plan assets within the next 12 months. In this regard, the changes of this provision in 2018 and 2017 were as follows: 2018 2017 US$'000 US$'000 Obligations at beginning of year 7,872 8,760 Current service cost 139 310 Borrowing costs 740 932 Actuarial differences (2,000) (2,226) Benefits paid (226) (740) Exchange differences (1,096) 836 Obligations at end of year 5,429 7,872 At December 31, 2018 and 2017, the effect of a 1% change in the cost of the medical aid would have resulted in a change to the provision of approximately $216 thousand and $297 thousand, respectively. The breakdown, in percentage, of the plan assets are as follows: 2018 2017 Cash 1.72 % 47.45 % Equity 47.42 % 24.79 % Bond 13.62 % 7.66 % Property 2.67 % 1.41 % International 30.27 % 15.74 % Others 4.30 % 2.95 % Total 100.00 % 100.00 % As of December 31, 2018 and 2017 the Plan assets amounted to $1,906 thousand and $2,248 thousand, respectively. Changes in the fair value of plan assets linked to the defined benefit plans in South Africa were as set forth in the following table: 2018 2017 US$'000 US$'000 Fair value of plan assets at the beginning of the year 2,248 3,532 Interest income on assets 216 255 Benefits paid (50) (2,609) Actuarial differences (228) 270 Other (280) 800 Fair value of plan assets at the end of the year 1,906 2,248 Actual return on assets (11) 525 Venezuela Benefit Plan The company FerroVen has pension obligations to all of its employees who, once reaching retirement age, have accumulated at least 15 years of service to the company and receive a Venezuelan Social Security Institute (IVSS) pension. In addition to the pension paid by the IVSS, 80% of the basic salary accrued when the pension benefit is awarded is guaranteed and paid by means of a lifelong monthly pension. The most recent of the present value of the defined benefit obligation actuarial valuation was determined at December 31, 2018 by independent actuaries. The present value of the obligation for defined benefit cost, the current service cost and past service cost were determined using the projected unit credit method. In this regards, the changes of this provision in 2018 and 2017 were as follows: 2018 2017 US$'000 US$'000 Obligations at the beginning of year 1,883 2,955 Current service cost 775 158 Borrowing costs — 2,255 Benefits paid (35) (93) Exchange differences (2,089) (3,392) Obligations at the end of year 534 1,883 The summary of the main actuarial assumptions used to calculate the aforementioned obligations is as follows: France South Africa Venezuela 2018 2017 2018 2017 2018 2017 Salary increase 1.60%-6.10% 1.60%-6.10% % 8.1 % % 207.25 % Discount rate 2% 2% % 10.3 % % 219.54 % Expected inflation rate 1.60% 1.60% % 7.10 % % 207 % Mortality TGH05/TGF05 TGH05/TGF05 SA 85-90 / PA (90) SA 85-90 / PA (90) UP94 UP94 Retirement age 65 65 63 63 63 North America a. Defined Benefit Retirement and Post-retirement Plans Globe Metallurgical Inc. (“GMI”) sponsors three non-contributory defined benefit pension plans covering certain employees, which were all frozen in 2003. Core Metals sponsors a non-contributory defined benefit pension plan covering certain employees, which was closed to new participants in April 2009. Quebec Silicon Limited partnership (“QSLP”) sponsors a contributory defined benefit pension plan and postretirement benefit plan for certain employees, based on length of service and remuneration. Post-retirement benefits consist of a group insurance plan covering plan members for life insurance, disability, hospital, medical, and dental benefits. The contributory defined benefit pension plan was closed to new participants in December 2013. On December 27, 2013, the Communications, Energy and Paper Workers Union of Canada (“CEP”) ratified a new collective bargaining agreement, which resulted in a curtailment pertaining to the closure of the postretirement benefit plan for union employees retiring after January 31, 2016. The Company’s funding policy has been to contribute, as necessary, an amount in excess of the minimum requirements in order to achieve the Company’s long-term funding targets. Benefit Obligations and Funded Status – The following provides a reconciliation of the benefit obligations, plan assets and funded status of the North American plans as of December 31, 2018 and 2017: 2018 2017 USA Canada USA Canada Post- Post- Pension Pension retirement Pension Pension retirement Plans Plans Plans Total Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Benefit obligation 35,062 22,393 7,377 64,832 38,195 24,788 8,837 71,820 Fair value of plan assets (29,038) (17,076) — (46,114) (32,869) (19,283) — (52,152) Provision for pensions 6,024 5,317 7,377 18,718 5,326 5,505 8,837 19,668 All North American pension and post-retirement plans are underfunded. At December 31, 2018 and 2017, the accumulated benefit obligation was $57,455 thousand and $62,983 thousand for the defined pension plan and $7,377 thousand and $8,837 thousand for the post-retirement plans, respectively. The assumptions used to determine benefit obligations at December 31, 2018 and 2017 for the North American plans are as follows: North America – 2018 North America – 2017 USA Canada USA Canada Pension Pension Postretirement Pension Pension Postretirement Plan Plan Plan Plan Plan Plan Salary increase N/A 2.75% - 3.00% N/A N/A 2.75% - 3.00% N/A Discount rate 4.00% 3.80% 3.90% 3.50% 3.60% 3.65% Expected inflation rate N/A N/A N/A N/A N/A N/A Mortality SOA RP-2014 Blue Collar Mortality CPM2014-Private CPM2014-Private SOA RP-2014 Total Dataset Mortality CPM2014-Private CPM2014-Private Retirement age 65 62 62 65 62 62 The discount rate used in calculating the present value of our pension plan obligations is developed based on the BPS&M Pension Discount Curve for 2018 and 2017 and the Mercer Proprietary Yield Curve for 2018 and 2017. QSLP Pension and post-retirement benefit plans and the expected cash flows of the benefit payments. The Company expects to make discretionary contributions of approximately $1,037 thousand to the defined benefit pension and post-retirement plans for the year ending December 31, 2019. The following reflects the gross benefit payments that are expected to be paid in future years for the benefit plans for the year ended December 31: Non-pension Postretirement Pension Plans Plans US$'000 US$'000 2019 3,175 197 2020 3,205 197 2021 3,241 203 2022 3,247 203 2023 3,311 222 Years 2024-2028 17,178 1,393 The accumulated non-pension postretirement benefit obligation has been determined by application of the provisions of the Company’s health care and life insurance plans including established maximums, relevant actuarial assumptions and health care cost trend rates projected at 5.3% for 2018 and decreasing to an ultimate rate of 4.0% in fiscal 2040. At December, 31 2018 and 2017, the effect of a 1% increase in health care cost trend rate on the non-pension postretirement benefit obligation is $1,535 thousand and $1,862 thousand, respectively. At December, 31 2018 and 2017 the effect of a 1% decrease in health care cost trend rate on the non-pension postretirement benefit obligation is ($1,194) thousand and ($1,442) thousand. The changes to these obligations in the current year ended December 31, 2018 were as follows: 2018 USA Canada Pension Pension Post-retirement Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 Obligations at the beginning of year 38,195 24,788 8,837 71,820 Service cost 185 123 334 642 Borrowing cost 1,300 816 297 2,413 Actuarial differences (2,849) (416) (1,240) (4,505) Benefits paid (1,874) (978) (161) (3,013) Exchange differences — (1,940) (690) (2,630) Expenses (70) — — (70) Plan amendments 175 — — 175 Obligations at the end of year 35,062 22,393 7,377 64,832 The plan assets of the defined benefit and retirement and post-retirement plans in North America are comprised of assets that have quoted market prices in an active market. The breakdown as of December 31, 2018 and 2017 of the assets by class are: 2018 2017 Cash 1 % % Equity Mutual Funds 40 % 45 % Fixed Income Securities 59 % 51 % Real Estate Mutual Funds — % % Total 100 % 100 % For the year ended December 31, 2018, the changes in plan assets were as follows: 2018 USA Canada Pension Pension Plans Plans Total US$'000 US$'000 US$'000 Fair value of plan assets at the beginning of the year Interest income on assets 1,110 643 1,753 Benefits paid (1,874) (978) (2,852) Actuarial return on plan assets (3,044) (1,154) (4,198) Other (23) (718) (741) Fair value of plan assets at the end of the year 29,038 17,076 46,114 b. Other Benefit Plans The Company administers healthcare benefits for certain retired employees through a separate welfare plan requiring reimbursement from the retirees. The Company’s subsidiary, GMI, provides two defined contribution plans (401(k) plans) that allow for employee contributions on a pretax basis. The Company agrees to match 25% of participants’ contributions up to a maximum of 6% of compensation. Additionally, the Company sponsors a defined contribution plan for employees of Core Metals. Under the plan, the Company may make discretionary payments to salaried and non-union participants in the form of profit sharing and matching funds. Other benefit plans offered by the Company include a Section 125 cafeteria plan for the pretax payment of healthcare costs and flexible spending arrangements. Environmental provision Environmental provisions relate to $2,880 thousand of non-current environmental rehabilitation obligations (2017: $3,121 thousand) and $331 thousand of current environmental rehabilitation obligations (2017: $346 thousand). Provisions for litigation Certain employees of FerroPem, S.A.S., then known as Pechiney Electrometallurgie, S.A., may have been exposed to asbestos at its plants in France in the decades prior to FerroAtlántica’s purchase of that business in December 2004. The Company has recognized a provision of $1,775 thousand during the year ended December 31, 2018 as part of the current portion of Provisions for litigation (2017: $2,339 thousand). The associated expense has been recorded to Staff costs in the Consolidated Income Statement. See Note 24 for further information. The outcome of this dispute, including the amount and timing of any potential settlements, remains uncertain. The provision reflects the Company’s best estimate of the expenditure required to settle its present obligations. The company received in March 2017 a demand for mediation from our North American joint venture partner regarding a dispute in relation to the price of coal charged by our subsidiary, Alden, to our North American joint ventures. During 2017, the parties engaged in a non-binding mediation process and the Company recognized a provision of $8,900 thousand during the year ended December 31, 2017. During 2018, the Company reached an agreement with the joint venture partner, and paid $4,450 thousand, and recognized the remaining $4,450 thousand in other current liabilities. Provisions for third-party liability Provisions for third-party liability relate to current obligations ($7,270 thousand) relating to health costs for retired employees (2017: $7,639 thousand). Other provisions Included in other provisions are current obligations arising from past actions that involve a probable outflow of resources that can be reliably estimated. Other provisions provision for taxes of $7,323 thousand (2017: $8,136 thousand) and other provisions of $15,458 thousand (2017: $18,042 thousand). |
Bank borrowings
Bank borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Bank borrowings | 16. Bank borrowings Bank borrowings comprise the following at December 31: 2018 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 250,000 132,821 493 133,314 Other loans — 7,698 7,698 Total 132,821 8,191 141,012 2017 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 200,000 — — — Other loans — 1,003 1,003 Total — 1,003 1,003 Credit facilities Credit facilities comprise the following at December 31: 2018 2017 US$'000 US$'000 Secured loans carried at amortised cost Principal amount 135,919 — Unamortised issuance costs (3,098) — Accrued interest 493 — Total 133,314 — Amount due for settlement within 12 months 493 — Amount due for settlement after 12 months 132,821 — Total 133,314 — On February 27, 2018, Ferroglobe entered into a revolving credit facility that provided for borrowings up to an aggregate principal amount of $250,000 thousand (the “Revolving Credit Facility”). The Revolving Credit Facility was amended on February 22, 2019, which included a reduction in the size of the facility from $250,000 thousand to $200,000 thousand (see Note 30). In addition to loans in US dollars, multicurrency borrowings under the Revolving Credit Facility are available in Euros, Pound Sterling and any other currency approved by the administrative agent and lenders. Subject to certain exceptions, loans under the Revolving Credit Facility may be borrowed, repaid and reborrowed at any time until the facility’s expiration date in February 27, 2021. Interest Rates At the Company’s option, loans under the Revolving Credit Facility bear interest based on the Base Rate or the Euro-Rate (each as defined below), plus an applicable margin. The applicable margin varies based on financial ratios, and is currently 2.25% for Base Rate loans or 3.25% for Euro-Rate loans. The average interest rate during the twelve months ended December 31, 2018 was 5.2%. Base Rate shall mean, for any day, a fluctuating per annum rate of interest equal to the highest of (a) the Fed Overnight Bank Funding Rate, plus fifty basis points (0.50%), (b) the Prime Rate, and (c) the Daily LIBOR Rate, plus 100 basis points (1.00%). Any change in the Base Rate (or any component thereof) shall take effect at the opening of business on the day such change occurs. Notwithstanding the foregoing, if the Base Rate as determined in the manner provided for above would be less than zero percent (0.00%) per annum, such rate shall be deemed to be zero percent (0.00%) per annum for purposes of the Revolving Credit Facility Agreement. Euro-Rate shall mean the following: (a) with respect to the U.S. Dollar Loans comprising any Borrowing Tranche to which the Euro-Rate Option applies for any Interest Period, the interest rate per annum determined by the Administrative Agent as the rate at which U.S. Dollar deposits are offered by leading banks in the London interbank deposit market; (b) with respect to Optional Currency Loans in Euros or British Pounds Sterling comprising any Borrowing Tranche for any Interest Period, the interest rate per annum determined by the Administrative Agent as the rate at which such currencies are offered by leading banks in the London interbank deposit market. Guarantees and security The obligations of Ferroglobe PLC (Borrower) under the Revolving Credit Facility, are guaranteed by certain of its subsidiaries (the Guarantors). The obligations of the Borrower and the Guarantors (together, the Loan Parties), together with each secured bank product accepted or executed by a Loan Party, are or will be secured by particular security interests in certain equity interests of subsidiaries of the Loan Parties and certain assets of the Loan Parties. Covenants In addition to certain affirmative and negative covenants, the Revolving Credit Facility contains certain maintenance financial covenants, including a maximum net total leverage ratio and a minimum interest coverage ratio. The Company was in compliance with all covenants as of December 31, 2018. Subsequent to December 31, 2018 the Company entered in to an amendment to the Revolving Credit facility that modified the financial maintenance covenants for an interim period (see Note 30). Foreign currency exposure of bank borrowings The breakdown by currency of bank borrowings at December 31, is as follows: 2018 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars 78,664 785 79,449 Borrowings in Euros 57,255 6,913 64,168 Total 135,919 7,698 143,617 2017 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars — 992 992 Borrowings in other currencies — 11 11 Total — 1,003 1,003 Contractual maturity of non-current bank borrowings The contractual maturity of non-current bank borrowings at December 31, 2018, was as follows: 2018 2021 Total US$'000 US$'000 Credit facilities 132,821 132,821 Other loans — — Total 132,821 132,821 There were no non-current bank borrowings outstanding at December 31, 2017. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of finance lease and operating lease by lessee [abstract] | |
Leases | 17. Leases Obligations under finance leases Obligations under finance leases comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Hydroelectrical installations (including power lines and concessions) 52,428 12,577 65,005 68,088 12,551 80,639 Other finance leases 1,044 422 1,466 1,625 369 1,994 Total 53,472 12,999 66,471 69,713 12,920 82,633 On May 25, 2012, FerroAtlàntica, S.A., as financial lessee, entered into a sale and leaseback agreement (the ‘‘Hydro-electric Finance Lease’’) with respect to certain hydro-electric assets in Spain. The financial lessee’s obligations under the Hydroelectric Finance Lease are secured by such hydro-electric assets. Payments in respect of the Hydro-electric Finance Lease are to be made in 120 installments, which commenced on May 25, 2012 and continue until maturity on May 25, 2022. The outstanding amounts under this loan accrue interest at a rate equal to six-month EURIBOR plus 3.5%. The detail, by maturity, of the non-current payment obligations under finance leases as of December 31, 2018 is as follows: 2020 2021 2022 Total US$'000 US$'000 US$'000 US$'000 Hydroelectrical installations (including power lines and concessions) 13,199 13,849 25,380 52,428 Other finance leases 618 426 — 1,044 Total 13,817 14,275 25,380 53,472 Future net minimum lease payments under finance leases together with the future finance charges are as follows: Undiscounted minimum lease payments Present value of minimum lease payments 2018 2017 2018 2017 US$'000 US$'000 US$'000 US$'000 Within 1 year 13,362 13,281 12,999 12,920 Between 1 and 5 years 61,556 82,683 53,472 69,713 After 5 years — — — — Total minimum lease payments 74,918 95,964 66,471 82,633 Less: amounts representing finance lease charges 8,447 13,331 — — Present value of minimum lease payments 66,471 82,633 66,471 82,633 Operating leases The Company also enters into operating leases, the most significant of which relates to the Company’s office leases. Expenses associated with operating leases are recorded in Other Operating Expenses in the consolidated income statement, and the minimum lease payments on operating leases at December 31, are as follows: 2018 2017 US$'000 US$'000 Within one year 9,684 12,105 Between one and five years 20,847 27,277 After five years 732 3,347 Total 31,263 42,729 |
Debt instruments
Debt instruments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Debt instruments | 18. Debt instruments Debt instruments comprise the following at December 31: 2018 2017 US$'000 US$'000 Unsecured notes carried at amortised cost Principal amount 350,000 350,000 Unamortised issuance costs (8,343) (10,668) Accrued coupon interest 10,937 10,938 Total 352,594 350,270 Amount due for settlement within 12 months 10,937 10,938 Amount due for settlement after 12 months 341,657 339,332 Total 352,594 350,270 On February 15, 2017, Ferroglobe and Globe (together, the “Issuers”) issued $350,000 thousand aggregate principal amount of 9.375% Senior Notes due March 1, 2022 (the “Notes”). The proceeds were used primarily to repay existing indebtedness, including borrowings, certain credit facilities and other loans. Issuance costs of $12,116 thousand were incurred. The principal amounts of the Notes issued by Ferroglobe and Globe were $150,000 thousand and $200,000 thousand, respectively. Interest on the Notes is payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2017. At any time prior to March 1, 2019, the Issuers may redeem all or a portion of the Notes at a redemption price based on a “make-whole” premium. At any time on or after March 1, 2019, the Issuers may redeem all or a portion of the Notes at redemption prices varying based on the period during which the redemption occurs. In addition, at any time prior to March 1, 2019, the Issuers may redeem up to 35% of the aggregate principal amount of the Notes with the net proceeds from certain equity offerings at a redemption price of 109.375% of the principal amount of the Notes, plus accrued and unpaid interest. The Notes are senior unsecured obligations of the Issuers and are guaranteed on a senior basis by certain subsidiaries of Ferroglobe. The Notes are listed on the Irish Stock Exchange. The associated indenture of the notes contains certain negative covenants. Additionally, if the Issuers experience a change of control the indenture requires the Issuers to offer to redeem the Notes at 101% of their principal amount. Grupo Villar Mir S.A.U. owns 53.9% of the Company's outstanding shares and has pledged them to secure its obligations to certain banks. The Company would experience a change in control and would be required to offer redemption of bonds in accordance with the indenture if Grupo Villar Mir S.A.U. defaults on the underlying loan. See Note 27 for further information. The fair value of the Notes, determined by reference to the closing market price on the last trading day of the year, was $288,022 thousand as at December 31, 2018 (December 31, 2017: $378,000 thousand). |
Other financial Liabilities
Other financial Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of financial liabilities [abstract] | |
Other financial liabilities | 19. Other financial liabilities Other financial liabilities comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Financial loans from government agencies 9,325 52,524 61,849 10,971 88,420 99,391 Derivative financial instruments 23,463 — 23,463 38,040 — 38,040 Total 32,788 52,524 85,312 49,011 88,420 137,431 Financial loans from government agencies On September 8, 2016, FerroAtlántica, S.A., as borrower, and the Spanish Ministry of Industry, Tourism and Commerce (the “Ministry”), as lender, entered into two loan agreements under which the Ministry made available to the borrower loans in aggregate principal amount of €44,999 thousand and €26,909 thousand, respectively, in connection with industrial development projects relating to the Company’s solar grade silicon project. The loan of €44,999 thousand is contractually due to be repaid in 7 installments over a 10-year period with the first three years as a grace period. The loan of €26,909 thousand was repaid in April 2018. Interest on outstanding amounts under each loan accrues at an annual rate of 2.29%. As of December 31, 2018, the amortized cost of these loans was €44,706 thousand (equivalent to $51,189 thousand) (2017: €72,517 thousand and $86,969 thousand). The agreements governing the loans contain the following limitations on the use of the proceeds of the outstanding loan: (1) the investment of the proceeds must occur between January 1, 2016 and February 24, 2019; (2) the allocation of the proceeds must adhere to certain approved budget categories; (3) if the final investment cost is lower than the budgeted amount, the borrower must reimburse the Ministry proportionally; and (4) the borrower must comply with certain statutory restrictions regarding related party transactions and the procurement of goods and services. As of December 31, 2018, the balance of these loans have been presented within current liabilities due to non-compliance with the loan conditions. The remaining non-current and current balances are related to loans granted mainly by French and Spanish government agencies. Derivative financial instruments Derivative financial instruments comprise the following at December 31: 2018 2017 US$'000 US$'000 Derivatives designated as hedging instruments Cross currency swap 15,883 26,219 Derivatives not designated as hedging instruments Cross currency swap 4,501 7,429 Interest rate swaps 3,079 4,392 23,463 38,040 Cross currency swap The Company's operations generate cash flows predominantly in Euros and US dollars. The Company is exposed to exchange rate fluctuations between these currencies as it expects to convert Euros into US dollars to settle a proportion of the interest and principal of the Notes (see Note 18). To manage this currency risk, the Parent Company entered a cross-currency swap (the “CCS”) on May 12, 2017 where on a semi-annual basis it will receive interest of 9.375% on a notional of $192,500 thousand and pay interest of 8.062% on a notional of €176,638 thousand and it will exchange these Euro and US dollar notional amounts at maturity of the Notes in 2022. The timing of payments of interest and principal under the CCS coincide exactly with those of the Notes. The fair value of the CCS at December 31, 2018 was $20,384 thousand (2017: $33,648 thousand) (see Note 28). The Parent Company, which has a Euro functional currency, has designated $150,000 thousand of the notional amount of the CCS as a cash flow hedge of the variability of the Euro functional currency equivalents of the future US dollar cash flows of $150,000 thousand of the principal amount of the Notes. During the year ended December 31, 2018, the change in fair value of the CCS has resulted in a gain of $10,006 thousand recognized through other comprehensive income in the valuation adjustments reserve (2017: $24,171 thousand loss). During the year ended December 31, 2018, the change in value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period was a gain of $10,333 thousand. This cash flow hedge was assessed to be highly effective at December 31, 2018 and therefore no ineffectiveness was recognized in the income statement. Amounts transferred from the valuation adjustments reserve to the income statement comprise a gain of $7,024 thousand transferred to exchange differences (2017: $14,791 thousand loss) and a gain of $951 thousand transferred to finance costs (2017: $1,216 thousand). At December 31, 2018, a balance of $8,567 thousand in respect of the cash flow hedge of the CCS remained in the valuation adjustment reserve and will be reclassified to the income statement as the hedged item affects profit or loss over the period to maturity of the Notes (2017: $10,596 thousand). The remaining $42,500 thousand of the notional amount of the CCS is not designated as a cash flow hedge and is accounted for at fair value through profit or loss, resulting in a gain of $2,838 thousand for the year ended December 31, 2018, which is recorded in financial derivative gain in the consolidated income statement (2017: $6,850 thousand loss). Interest rate swaps The Company enters into interest rate swaps to manage the risk of changes in interest rates on certain non-current and current obligations. Since June 30, 2015, the interest rate swaps have been considered as ineffective hedges and as a result the changes in fair value of these derivatives are recognized through profit or loss. At December 31, 2018, valuation adjustments reserve includes $2,602 thousand that relates to hedging relationships for which hedge accounting is no longer applied. The following interest rate swaps were outstanding at December 31: 2018 Nominal Fixed Reference Fair Amount Interest Floating Value US$'000 Maturity Rate Interest Rate US$'000 Lease of hydroelectrical installations 137,400 2.05 6-month Euribor (3,079) Total (3,079) 2017 Nominal Fixed Reference Fair Amount Interest Floating Value US$'000 Maturity Rate Interest Rate US$'000 Lease of hydroelectrical installations 143,916 2.05 6-month Euribor (4,392) Total (4,392) |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other payables. | |
Trade and other payables | 20. Trade and other payables Trade and other payables compose the following at December 31: 2018 2017 US$'000 US$'000 Payable to suppliers 241,936 172,566 Trade notes and bills payable 14,887 20,293 Total 256,823 192,859 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities | |
Other liabilities | 21. Other liabilities Other liabilities comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Payable to non-current asset suppliers 99 11,648 11,747 — 5,411 5,411 Guarantees and deposits 16 — 16 32 2 34 Remuneration payable 55 45,705 45,760 — 46,667 46,667 Tax payables — 20,799 20,799 1,574 17,785 19,359 Contingent consideration 23,119 3,103 26,222 — — — Other liabilities 1,741 22,315 24,056 1,930 20,704 22,634 Total 25,030 103,570 128,600 3,536 90,569 94,105 Tax payables Tax payables comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 VAT — 6,491 6,491 — 1,784 1,784 Accrued social security taxes payable — 5,001 5,001 — 5,095 5,095 Personal income tax withholding payable — 1,436 1,436 — 1,049 1,049 Other — 7,871 7,871 1,574 9,857 11,431 Total — 20,799 20,799 1,574 17,785 19,359 Share-based compensation a. Equity Incentive Plan On May 29, 2016, the board of Ferroglobe PLC adopted the Ferroglobe PLC Equity Incentive Plan (the “Plan”) and on June 29, 2016 the Plan was approved by the shareholders of the Company. The Plan is a discretionary benefit offered by Ferroglobe PLC for the benefit of selected senior employees of Ferroglobe PLC and its subsidiaries. The Plan’s main purpose is to reward and foster performance through share ownership. Awards under the plan may be structured either as conditional share awards or options with a $nil exercise price (nil cost options). The awards are subject to a service condition of three years from the date of grant. Details of the Plan awards during the current and prior years are as follows: Number of awards Outstanding as of December 31, 2016 264,933 Granted during the period 492,432 Exercised during the period — Expired/forfeited during the period — Outstanding as of December 31, 2017 757,365 Granted during the period 485,860 Exercised during the period — Expired/forfeited during the period (218,183) Outstanding as of December 31, 2018 1,025,042 Exercisable as of December 31, 2018 and December 31, 2017 — The awards outstanding under the Plan at December 31, 2018 and December 31, 2017 were as follows: Performance Period Fair Value at Grant Date (three years ended) Expiration Date Exercise Price Grant Date 2018 2017 June 14, 2018 N/A June 13, 2028 nil $ 9.34 129,930 — March 21, 2018 December 31, 2021 March 20, 2028 nil $ 22.56 287,080 — June 20, 2017 December 31, 2020 June 20, 2027 nil $ 15.90 17,342 17,342 June 1, 2017 N/A June 1, 2027 nil $ 10.96 19,463 19,463 June 1, 2017 December 31, 2020 June 1, 2027 nil $ 16.77 382,002 455,627 November 24, 2016 December 31, 2019 November 24, 2026 nil $ 16.66 189,225 264,933 1,025,042 757,365 The awards outstanding as of December 31, 2018 had a weighted average remaining contractual life of 6.18 years. At December 31, 2018, 875,649 of the outstanding awards were subject to performance conditions (2017: 737,902 awards). For those awards subject to performance conditions, upon completion of the three year service period, the recipient will receive a number of shares or nil cost options of between 0% and 200% of the above award numbers, depending on the financial performance of the Company during the performance period. The performance conditions can be summarized as follows: Vesting Conditions 30% total shareholder return (“TSR”) relative to a comparator group 30% TSR relative to S&P Global 1200 Metals and Mining Index 20% return on invested capital (“ROIC”) relative to a comparator group 20% net operating profit after tax (“NOPAT”) relative to a comparator group There were no performance obligations linked to 149,393 of the awards outstanding at December 31, 2018 (2017: 19,463 awards). These awards were issued as deferred bonus awards and vest subject to remaining in employment for three years. Fair Value The weighted average fair value of the awards granted during the year ended December 31, 2018 was $18.62 (2017: $16.51). The Company estimates the fair value of the awards using Stochastic and Black-Scholes option pricing models. Where relevant, the expected life used in the model has been adjusted for the remaining time from the date of valuation until options are expected to be received, exercise restrictions (including the probability of meeting market conditions attached to the option), and performance considerations. Expected volatility is calculated over the period commensurate with the remainder of the performance period immediately prior to the date of grant. The following assumptions were used to estimate the fair value of the awards: Grant date March 21, 2018 June 20, 2017 June 01, 2017 November 24, 2016 Fair value at grant date $ $ $ $ Grant date share price $ $ $ $ Exercise price Nil Nil Nil Nil Expected volatility % % % % Option life 3.00 years 3.00 years 3.00 years 3.00 years Dividend yield — % — % — % — % Risk-free interest rate % % % % Remaining performance period at grant date Company TSR at grant date 2.1 % (0.3) % 4.0 % 40.0 % Median comparator group TSR at grant date (6.2) % (7.2) % (3.7) % 56.4 % Median index TSR at grant date (8.4) % % % % At the date of grant for these awards, all of the opening averaging period and some of the performance period had elapsed. The Company’s TSR relative to the median comparator group TSR and median index TSR at grant date may impact the grant date fair value; starting from an advantaged position increases the fair value and starting from a disadvantaged position decreases the fair value. To model the impact of the TSR performance conditions, we have calculated the volatility of the comparator group using the same method used to calculate the Company’s volatility, using historical data, where available, which matches the length of the remaining performance period grant date. The Company’s correlation with its comparator group was assessed on the basis of correlations above 20% being considered significant and incorporated into the valuation model (100% represents perfect positive correlation and 0% represents no correlation). For the year ended December 31, 2018, share-based compensation expense related to this stock plan amounted to $2,798 thousand, which is recorded in staff costs (2017: $2,405 thousand). b. Options assumed under business combination with Globe Prior to the business combination, shares of Globe Specialty Metals common stock were registered pursuant to Section 12(b) of the Exchange Act and listed on NASDAQ. As a result of the business combination between Ferroglobe and Globe, each share of Globe common stock was converted into the right to receive one Ferroglobe ordinary share. The shares of Globe common stock were suspended from trading on NASDAQ effective as of the opening of trading on December 24, 2015. Ferroglobe ordinary shares were approved for listing on The NASDAQ Global Market. At the effective time of the business combination, GSM stock and stock-based awards were replaced with stock and stock-based awards of Ferroglobe in a one to one exchange. There were 59,980 options that were exercised and 167,990 share options that expired during the year ended December 31, 2018 (2017: 34,990 options were exercised and 71,027 share options expired). A summary of options outstanding is as follows: Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Term in Intrinsic Options Price Years Value Outstanding as of December 31, 2016 629,378 $ 14.59 1.75 580 Exercised during the period (34,990) 6.77 Expired/forfeited during the period (71,027) 14.54 Outstanding as of December 31, 2017 523,361 $ 15.12 0.89 $ 1,774 Exercised during the period (59,980) 5.89 Expired/forfeited during the period (167,990) 17.99 Cancelled in lieu of cash settlement (191,761) 12.54 Outstanding as of December 31, 2018 103,630 $ 19.40 0.44 $ — Exercisable as of December 31, 2018 103,630 $ 19.40 0.44 $ — As of December 31, 2018 there are total vested options of 103,630 and no unvested options outstanding (2017: vested options of 515,028 and 8,333 unvested options). For the year ended December 31, 2018, share based compensation income related to stock options under this plan was $287 thousand (2017: $4 thousand expense). The expense is reported within staff costs in the consolidated income statement. For the year ended December 31, 2018, the Company settled 191,761 of the above options for cash resulting in a payment of $680 thousand. c. Executive bonus plan assumed under business combination with Globe Prior to the business combination, the Globe also issued restricted stock units under the Company’s Executive Bonus Plan. The fair value of restricted stock units is based on quoted market prices of the Company’s stock at the end of each reporting period. These restricted stock units proportionally vest over three years, but are not delivered until the end of the third year. The Company will settle these awards by cash transfer, based on the Company’s stock price on the date of transfer. For the year ended December 31, 2018, 7,031 restricted options were exercised and for the year ended December 31, 2017, 371,570 restricted options were exercised. As of December 31, 2018, and 2017 year end, restricted stock units of nil and 13,340, respectively, were outstanding. For the year ended December, 31 2018, share based compensation income for these restricted stock units was $584 thousand before tax and $376 thousand after tax (2017: $343 thousand expense before tax and $202 thousand expense after tax). The expense is reported within staff costs in the consolidated income statement. At December 31, 2018 and 2017, the liability associated with the restricted stock option was $41 thousand and $626 thousand, respectively included in other current liabilities. d. Stock appreciation rights assumed under business combination with Globe Globe issued cash-settled stock appreciation rights as an additional form of incentivized bonus. Stock appreciation rights vest and become exercisable in one-third increments over three years. The Company settles all awards by cash transfer, based on the difference between the Company’s stock price on the date of exercise and the date of grant. The Company estimates the fair value of stock appreciation rights using the Black-Scholes option pricing model. There were 74,373 stock appreciation rights cancelled and 498,476 stock appreciation rights exercised during the year ended December 31, 2018 (2017: 209,451 stock appreciation rights cancelled and 168,135 stock appreciation rights exercised). As of December 31, 2018, and 2017, there were 610,021 and 1,182,871 stock appreciation rights outstanding, respectively. For the year ended December 31, 2018 compensation income for these stock appreciation rights was $5,848 thousand before tax and $3,762 thousand after tax (2017: $3,429 thousand expense before tax and $2,023 thousand expense after tax). As of December 31, 2018, the liability associated with the stock appreciation rights is $62 thousand and is included in other current liabilities (2017: liability of $5,911 thousand included within other liabilities, of which $111 thousand was presented as non-current). |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2018 | |
Tax matters | |
Tax matters | 22. Tax matters The components of current and deferred income tax expense (benefit) are as follows: 2018 2017 2016 US$'000 US$'000 US$'000 Consolidated income statement Current income tax Current income tax charge/(credit) 22,795 30,491 (14,885) Adjustments in current income tax in respect of prior years (865) 753 1,220 Total 21,930 31,244 (13,665) Deferred tax Origination and reversal of temporary differences 2,500 (14,857) (33,030) Impact of tax rate changes 98 (31,688) — Adjustments in deferred tax in respect of prior years (293) 480 — Total 2,305 (46,065) (33,030) Income tax expense (benefit) 24,235 (14,821) (46,695) As the Company has significant business operations in Spain, France, South Africa and the United States, a weighted effective tax rate is considered to be appropriate in estimating the Company’s expected tax rate. The following is a reconciliation of tax expense based on a weighted blended statutory income tax rate to our effective income tax expense for the years ended December 31, 2018, 2017, and 2016: 2018 2017 2016 US$'000 US$'000 US$'000 Accounting profit/(loss) before income tax 48,808 (20,643) (405,308) At weighted effective tax rate of 36% (2017: 31% and 2016: 31%) 17,409 (6,399) (125,645) Non-taxable income/(expenses) (14,856) 96 — Non-deductible expenses 25,079 18,278 81,648 Movements in unprovided deferred tax 7,620 7,138 15,326 US Tax Reform - federal tax rate change — (31,257) — Differing territorial tax rates (2,262) 2 (22,949) Adjustments in respect of prior periods (1,038) 1,233 — Other items (4,936) (845) 890 Elimination of effect of interest in joint ventures 1,079 1,458 — Other permanent differences 1,242 (1,685) 5,196 Incentives and deductions (6,944) (3,188) (1,161) US State taxes 1,235 348 — Taxable capital gains 607 — — Income tax (expense)/benefit 24,235 (14,821) (46,695) The Tax Cuts and Jobs Act (“TCJA”) was enacted into law on December 22, 2017. The material impact of the TCJA on the Company's 2017 position was a deferred tax credit of $31.2 million representing the remeasurement of the Company’s U.S. net deferred tax liability as a consequence of the reduction of the U.S. federal corporate statutory tax rate from 35% to 21% with effect from January 1, 2018. A one-off tax charge of $1.7 million representing the Company’s best estimate of its transition tax liability was recorded in 2017 and reversed in the current period following a comprehensive review of the foreign historic earnings and profits subject to tax under the new law. Current tax assets and liabilities 2018 2017 US$'000 US$'000 Current tax assets Income tax receivable 27,404 17,158 Current tax liabilities Income tax payable 2,335 7,419 Net tax assets 25,069 9,739 Deferred tax assets and liabilities For the year ended December 31, 2018: Opening Prior Year Recognised in Recognised in Acquisitions/ Exchange Closing Balance Charge P&L Equity/ OCI Disposals Differences Balance US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Intangible assets (2,442) 1,787 236 — — — (419) Biological assets (5,521) — 2,233 — — 448 (2,840) Provisions 25,534 (3,388) (1,353) 93 210 (1,146) 19,950 Property, plant & equipment (79,758) (3,409) 3,562 — (1,682) 3,002 (78,285) Inventories (243) (3) (2,673) 256 42 (12) (2,633) Hedging Instruments 1,239 15 7 (197) — (54) 1,010 Tax losses, incentives & credits 20,723 343 (7,249) (489) 1,179 (877) 13,630 Partnership interest (13,373) (349) 1,197 — — — (12,525) Other (6,028) 4,514 770 — — 66 (678) Total (59,869) (490) (3,270) (337) (251) 1,427 (62,790) Presented in the statement of financial position as follows: 2018 2017 US$'000 US$'000 Deferred tax assets 14,589 5,273 Deferred tax liabilities 77,379 65,142 Net Total Deferred Tax Asset / (Liability) (62,790) (59,869) Unrecognised deductible temporary differences, unused tax losses and unused tax credits 2018 2017 US$'000 US$'000 Unused tax losses 396,119 391,997 Unused tax credits 7,963 8,028 Unrecognised deductible temporary differences 79,377 65,638 Total 483,459 465,663 Management of tax risks The Company is committed to conducting its tax affairs consistent with the following objectives: (i) to comply with relevant laws, rules, regulations, and reporting and disclosure requirements in whichever jurisdiction it operates; (ii) to maintain mutual trust, transparency and respect in its dealings with all tax authorities; and (iii) to adhere with best practice and comply with the Company's internal corporate governance procedures, including but not limited to its Code of Conduct In the jurisdictions in which the Company operates, tax returns cannot be deemed final until they have been audited by the tax authorities or until the statute-of-limitations has expired. The number of open tax years subject to examination varies depending on the tax jurisdiction. In general, the Company has the last four years open to review. The criteria that the tax authorities might adopt in relation to the years open for review could give rise to tax liabilities which cannot be quantified. |
Related party transactions and
Related party transactions and balances | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions and balances | |
Related party transactions and balances | 23. Related party transactions and balances Balances with related parties at December 31 are as follows: 2018 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 2,953 — 7 Grupo Villar Mir, S.A.U. — 79 — — Enérgya VM Generación, S.L — 11,154 — 70 Villar Mir Energía, S.L.U. 2,288 38 — 8,941 Espacio Information Technology, S.A.U. — — — 1,514 Blue Power Corporation, S.L. — — — 134 Other related parties — 2 — 462 Total 2,288 14,226 — 11,128 2017 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 3,033 — 4 Grupo Villar Mir, S.A.U. — 83 — — Enérgya VM Generación, S.L — 1,420 — 6 Villar Mir Energía, S.L.U. 2,398 35 — 12,065 Espacio Information Technology, S.A.U. — — — 861 Blue Power Corporation, S.L. — — — 29 Other related parties 2 1 — 8 Total 2,400 4,572 — 12,973 The loan granted to Inmobiliaria Espacio, S.A. accrues a market interest and has a maturity in the short-term that is renewed tacitly upon maturity, unless the parties agreed it’s repaid until maturity, extended it automatically for one year. The balance with the other related parties arose as a result of the commercial transactions performed with them (see explanation of main transactions below). Transactions with related parties in 2018, 2017 and 2016 are as follows: 2018 Sales and Other Finance Operating Operating Income Income Cost of Sales Staff costs Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 6 72 Villar Mir Energía, S.L.U. — 99,939 — 1,467 — Espacio Information Technology, S.A.U. — — — 4,226 — Enérgya VM Generación, S.L 43,772 — — 272 — Enérgya VM Gestión, S.L — 42 — 119 — Other related parties 20 — — 119 — Total 43,792 99,981 — 6,209 72 2017 Sales and Other Finance Operating Operating Income Income Cost of Sales Staff costs Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 2 70 Villar Mir Energía, S.L.U. — 94,049 — 3,362 — Espacio Information Technology, S.A.U. — — — 3,807 — Enérgya VM Generación, S.L 17,222 — — 226 — Enérgya VM Gestión, S.L — — — 22 — Other related parties — — — 1,440 154 Total 17,222 94,049 — 8,859 224 2016 Sales and Other Finance Operating Operating Income Income Cost of Sales Staff costs Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 2 74 Grupo Villar Mir, S.A.U. 403 — — — — Villar Mir Energía, S.L.U. 45 69,083 — 3,626 — Espacio Information Technology, S.A.U. — — — 4,049 — Enérgya VM Generación, S.L 20,553 — — 503 — Enérgya VM Gestión, S.L — 253 — — — Marco International Corporation 765 5,212 — — — Key management personnel (Note 26) — — 10,080 — — Other related parties — — — 92 — Total 21,766 74,548 10,080 8,272 74 “Cost of sales” of the related parties vis-à-vis Villar Mir Energía, S.L.U. relates to the purchase of energy from the latter by the Company’s Electrometallurgy – Europe segment. FerroAtlántica pays VM Energía a service charge in addition to paying for the cost of energy purchase from the market. For the fiscal years ended December 31, 2018, 2017 and 2016, FerroAtlántica’s and Hidro Nitro Española’s obligations to make payments to VM Energía under their respective agreements – for the purchase of energy plus the service charge – amounted to $99,939 thousand, $94,049 thousand and $69,083 thousand, respectively. These contracts are similar to contracts FerroAtlántica signs with other third-party brokers. A former member of the board of directors until the end of 2016 is affiliated with Marco International Corporation, from which the Company purchases certain raw materials and to whom the Company sells silicon-based alloys. “Other operating expenses” relates mainly to service fees paid to Espacio Information Technology, S.A.U. for managing and maintenance services rendered related, basically, to the enterprise resource planning (‘ERP’) that some Company entities use; and other IT development projects. “Sales and operating income” relates mainly to sales from Hidro Nitro Española to Enérgya VM for the sales made by its hydroelectric plant of $11,874 thousand, $7,419 thousand and $5,155 thousand for the fiscal years ended December 31, 2018, 2017 and 2016. Hidro Nitro Española was sold out of the Company on December 31, 2018. FerroAtlántica sales to Enérgya VM for the sales made by its hydroelectric plant of $31,898 thousand, $9,803 thousand and $15,398 thousand for the fiscal years ended December 31, 2018, 2017 and 2016. During 2018 and 2017, under the solar joint venture agreement FerroAtlántica and other subsidiaries have purchased property, plant and equipment of $4,252 and $3,611 thousand respectively, from Aurinka and Blue Power Corporation, S.L. |
Guarantee commitments to third
Guarantee commitments to third parties and contingent liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Guarantee commitments to third parties and contingent liabilities | |
Guarantee commitments to third parties and contingent liabilities | 24. Guarantee commitments to third parties and contingent liabilities Guarantee commitments to third parties As of December 31, 2018 and 2017, the Company has provided bank guarantees commitments to third parties amounting $14,427 thousand and $18,943 thousand, respectively. Management believes that any unforeseen liabilities at December 31, 2018 and 2017 that might arise from the guarantees given would not be material. Contingent liabilities In the ordinary course of its business, Ferroglobe is subject to lawsuits, investigations, claims and proceedings, including, but not limited to, contractual disputes and employment, environmental, health and safety matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations, claims and proceedings asserted against it, we do not believe any currently pending legal proceeding to which it is a party will have a material adverse effect on its business, prospects, financial condition, cash flows, results of operations or liquidity. Asbestos-related claims Certain employees of FerroPem, S.A.S., then known as Pechiney Electrometallurgie, S.A. (“PEM”), may have been exposed to asbestos at its plants in France in the decades prior to FerroAtlántica Group’s purchase of that business in December 2004. During the period in question, PEM was wholly-owned by Pechiney Bâtiments, S.A., which had certain indemnification obligations to FerroAtlántica pursuant to the 2003 Share Sale and Purchase Agreement under which FerroAtlántica acquired PEM. As of the date of this annual report, approximately 93 such employees have “declared” asbestos-related injury to the French social security agencies, based either on the occurrence of work accidents (“accident du travail”) or on administrative recognition of an occupational disease (“maladie professionelle”). Of these, 61 cases are closed, approximately 32 are pending before the French social security agencies or courts and, of the latter, 13 include assertions of “inexcusable negligence” (“faute inexcusable”) which, if upheld, may lead to material liability on the part of FerroPem. Other employees may declare further asbestos-related injuries in the future, and may likewise assert inexcusable negligence. In 2016, FerroPem initiated an arbitration process seeking to enforce indemnification provisions in the Share Sale and Purchase Agreement against Río Tinto France as successor to Pechiney Bâtiments, S.A. with respect to pending asbestos claims. On July 11, 2017, however, the claims in arbitration were denied in their entirety on various grounds, including that the claims were untimely, and Ferropem is without further recourse against Río Tinto. Litigation against, and material liability on the part of, FerroPem will not necessarily arise in each case, and to date a majority of such declared injuries have been minor and have not led to significant liability on Ferropem’s part. Whether material liability will arise is determined case-by-case, often over a period of years, depending on, inter alia, the evolution of the claimant’s asbestos-related condition, the possibility that the claimant was exposed while working for other employers and, where asserted, the claimant’s ability to prove inexcusable negligence on PEM’s part. Because of these and other uncertainties, no reliable estimate can be made at this time of FerroPem’s eventual liability in these matters, with exception of three grave cases that were litigated through the appeal process and in which claimants’ assertions of inexcusable negligence were upheld against FerroPem. Liabilities in respect to asbestos-related claims have been recorded at December 31, 2018 at an estimated amount of $1,775 thousand in Provisions for litigation in progress. Environmental matters On August 31, 2016, the U.S. Department of Justice (the “DOJ”) requested a meeting with GMI to discuss potential resolution of a July 1, 2015 NOV/FOV that GMI received from the U.S. Environmental Protection Agency (the “EPA”) alleging certain violations of the Prevention of Significant Deterioration (“PSD”) and New Source Performance Standards provisions of the Clean Air Act associated with a 2013 project performed at GMI’s Beverly facility. Specifically, the July 2015 NOV/FOV alleges violations of the facility’s existing operating and construction permits, including allegations related to opacity emissions, sulfur dioxide and particulate matter emissions, and failure to keep necessary records and properly monitor certain equipment. On October 27, 2016, GMI met with the DOJ and the EPA to discuss the alleged violations, GMI’s preliminary assessment of those alleged violations, and its possible defenses to the NOV/FOV. As a result of that meeting, GMI has agreed to the government’s request that GMI prepare an assessment of Best Available Control Technologies (“BACT”) that could be applicable to the facility under the federal PSD program, to conduct a ventilation study to assess emissions at the facility, and to continue discussions with the government regarding an appropriate resolution of the NOV/FOV by consent. In February 2017, the EPA formally issued a request under Section 114 of the Clean Air Act, requiring GMI to conduct the ventilation study that GMI had previously agreed to conduct. On January 4, 2017, GMI received a second NOV/FOV dated December 6, 2016, arising from the same facts as the July 2015 NOV/FOV and subsequent EPA inspections. The second NOV/FOV alleges opacity exceedances at certain units, failure to prevent the release of particulate emissions through the use of furnace hoods at a certain unit, and the failure to install Reasonably Available Control Measures (as defined) at certain emission units at the Beverly facility. As part of the on‑going consent process to resolve the NOVs/FOVs, the government could demand that GMI install additional pollution control equipment or implement other measures to reduce emissions from the facility, as well as pay a civil penalty. GMI’s environmental consultants have completed the ventilation study and a Ventilation Evaluation Report documenting the same, which GMI provided to EPA on October 6, 2017. Since that time, GMI and the government have continued negotiations regarding potential resolution of the NOV/FOVs, which negotiations are ongoing. At this time, however, GMI does not know the extent of potential injunctive relief or the amount of a civil penalty a negotiated resolution of this matter may entail. Should the DOJ and GMI be unable to reach a negotiated resolution of the NOVs/FOVs, the government could institute formal legal proceedings for injunctive relief and civil penalties. The statutory maximum penalty is $93,750 per day per violation, from April 2013 to the present . |
Income and expenses
Income and expenses | 12 Months Ended |
Dec. 31, 2018 | |
Income and expenses | |
Income and expenses | 25. Income and expenses 25.1 Sales Sales by segment for the years ended December 31 are as follows: 2018 2017 2016 US$'000 US$'000 US$'000 Electrometallurgy - North America 710,716 541,143 521,192 Electrometallurgy - Europe 1,447,973 1,083,200 949,547 Electrometallurgy - South Africa 208,543 122,504 142,160 Other segments 94,111 60,199 90,337 Eliminations (187,305) (65,353) (127,199) Total 2,274,038 1,741,693 1,576,037 Sales by geographical area for the years ended December 31 are as follows: 2018 2017 2016 US$'000 US$'000 US$'000 Spain 274,769 Germany 359,737 Italy 138,796 Other EU Countries 487,340 USA 674,243 Rest of World 339,153 Total 25.2 Staff costs Staff costs are comprised of the following for the years ended December 31: 2018 2017 2016 US$'000 US$'000 US$'000 Wages, salaries and similar expenses Pension plan contributions Employee benefit costs Total 25.3 Depreciation and amortization charges, operating allowances and write-downs Depreciation and amortization charges, operating allowances and write-downs are comprised of the following for the years ended December 31: 2018 2017 2016 US$'000 US$'000 US$'000 Amortization of intangible assets (Note 8) 9,312 8,440 12,649 Depreciation of property, plant and equipment (Note 9) 109,832 94,051 105,695 Other write-downs and reversals (7) 2,038 7,333 Total 119,137 104,529 125,677 Included within other write-downs and reversals for the years ended December 31, 2017 and 2016 are amounts of $1,784 thousand and $7,578 thousand, respectively, relating to the change in impairment losses on uncollectible trade receivables. 25.4 Finance income and finance costs Finance income is comprised of the following for the year ended December 31: 2018 2017 2016 US$'000 US$'000 US$'000 Finance income of related parties (Note 23) 72 224 74 Other finance income 5,302 3,484 1,462 Total 5,374 3,708 1,536 Finance costs are comprised of the following for the year ended December 31: 2018 2017 2016 US$'000 US$'000 US$'000 Interest on debt instruments 34,188 28,961 — Interest on loans and credit facilities 8,249 15,834 18,630 Interest on note and bill discounting 205 7,403 1,503 Interest on interest rate swaps 1,710 2,689 2,525 Interest on finance leases 2,974 2,917 3,186 Trade receivables securitization expense (Note 10) 12,097 7,256 — Other finance costs 2,599 352 4,407 Total 62,022 65,412 30,251 25.5 Impairment losses and net loss (gain) due to changes in the value of assets Impairment losses and net loss (gain) due to changes in the value of assets are comprised of the following for the years ended December 31: 2018 2017 2016 US$'000 US$'000 US$'000 Impairment of goodwill (Note 7) — 30,618 194,612 Impairment of intangible assets (Note 8) 16,073 443 230 Impairment of property, plant and equipment (Note 9) 42,846 (104) 67,624 Impairment of non-current financial assets (Note 10) — — 5,623 Impairment losses 58,919 30,957 268,089 (Increase) decrease in fair value of biological assets (Note 28) 7,615 (7,504) (1,891) Other (gain) loss 8 — — Net (gain) loss due to changes in the value of assets 7,623 (7,504) (1,891) 25.6 Loss (gain) on disposal of non-current assets Loss (gain) on disposal of non-current assets is comprised of the following for the years ended December 31: 2018 2017 2016 US$'000 US$'000 US$'000 Loss on disposal of intangible assets — 503 — Gain on disposal of property, plant and equipment (2,950) (1,779) (468) Loss on disposal of property, plant and equipment 162 3,733 — (Gain) loss on disposal of other non-current assets (29) 1,859 128 Gain on disposal of subsidiary (11,747) — — Total (14,564) 4,316 (340) On December 31, 2018, the Company completed the sale of its majority interest in its Spanish subsidiary Hidro Nitro Española S.A. to an entity sponsored by a Spanish renewable energies fund. The Company received net cash proceeds of $20,533 thousand and recognized a gain on disposal of $11,747 thousand. |
Remuneration of key management
Remuneration of key management personnel | 12 Months Ended |
Dec. 31, 2018 | |
Remuneration of key management personnel | |
Remuneration of key management personnel | 26. Remuneration of key management personnel The remuneration of the key management personnel, which comprises the Company’s management committee, during the years ended December 31 is as follows: 2018 2017 2016 US$'000 US$'000 US$'000 Fixed remuneration 6,068 5,625 5,611 Variable remuneration — 3,710 4,007 Contributions to pension plans and insurance policies 379 215 285 Share-based compensation 1,777 1,738 — Termination benefits 2,284 — 22,672 Other remuneration 23 17 177 Total 10,531 11,305 32,752 During the year ended December 31, 2016, severance benefits were accrued in the amount of $22,672 thousand, related to the resignation of the former Company’s Executive Chairman. During 2018, 2017 and 2016, no loans and advances have been granted to key management personnel. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Financial risk management | |
Financial risk management | 27. Financial risk management Ferroglobe operates in an international and cyclical industry which exposes it to a variety of financial risks such as currency risk, liquidity risk, interest rate risk, credit risk and risks relating to the price of finished goods, raw materials and power. The Company’s management model aims to minimize the potential adverse impact of such risks upon the Company’s financial performance. Risk is managed by the Company’s executive management, supported by the Risk Management, Treasury and Finance functions. The risk management process includes identifying and evaluating financial risks in conjunction with the Company’s operations and quantifying them by project, region and subsidiary. Management provides written policies for global risk management, as well as for specific areas such as foreign currency risk, credit risk, interest rate risk, liquidity risk, the use of hedging instruments and derivatives, and investment of surplus liquidity. The financial risks to which the Company is exposed in carrying out its business activities are as follows: a) Market risk Market risk is the risk that the Company’s future cash flows or the fair value of its financial instruments will fluctuate because of changes in market prices. The primary market risks to which the Company is exposed comprise foreign currency risk, interest rate risk and risks related to prices of finished goods, raw materials and power. Foreign currency risk Ferroglobe generates sales revenue and incurs operating costs in various currencies. The prices of finished goods are to a large extent determined in international markets, primarily in US dollars and Euros. Foreign currency risk is partly mitigated by the generation of sales revenue, the purchase of raw materials and other operating costs being denominated in the same currencies. Although it has done so on occasions in the past, and may decide to do so in the future, the Company does not generally enter into foreign currency derivatives in relation to its operating cash flows. At December 31, 2018, and December 31, 2017, the Company was not party to any foreign currency forward contracts. In February 2017, the Company completed a restructuring of its finances which included the issue of $350,000 thousand of senior notes due 2022 (see Note 18) and the repayment of certain existing indebtedness denominated in a number of currencies across its subsidiaries. The Company is exposed to foreign exchange risk as the interest and principal of the Notes is payable in US dollars, whereas its operations principally generate a combination of US dollar and Euro cash flows. Following approval by the Board, the Company entered into a cross currency interest rate swap to exchange 55% of the principal and interest payments in US dollars for principal and interest payments in Euros (see Note 19). The Company has designated a proportion of the cross currency swap as a cash flow hedge (see Note 19), with the remainder accounted for at fair value through profit or loss. Interest rate risk Ferroglobe is exposed to interest rate risk in respect of its financial liabilities that bear interest at floating rates. These primarily comprise credit facilities (see Note 16) and obligations under finance leases related to hydroelectrical installations (see Note 17). During the year ended December 31, 2018 and 2017, the Company did not enter into any interest rate derivatives in relation to its interest bearing credit facilities. At December 31, 2018, the Company had drawn down $135,919 thousand under its credit facilities (2017: nil). Prior to the Business Combination, the Company entered into interest rate swaps to fix the interest payable in respect of its obligations under finance leases until 2022. Details of the interest rate derivative financial instruments at December 31, 2017 and 2016 are included in Note 19 to these consolidated financial statements. b) Credit risk Credit risk refers to the risk that a customer or counterparty will default on its contractual obligations resulting in financial loss. The Company’s main credit risk exposure related to financial assets is set out in Note 10 and includes trade receivables, other receivables and other financial assets. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. The Company has established policies, procedures and controls relating to customer credit risk management. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, the Company insures its trade receivables with reputable credit insurance companies. Since August 2017, the Company has sold substantially all of the trade receivables generated by its subsidiaries in the United States, Canada, Spain and France to an accounts receivable securitization program (see Note 10). This has enabled it to monetize these assets earlier than it did previously and significantly reduce working capital. c) Liquidity risk The purpose of the Company’s liquidity and financing policy is to ensure that the Company keeps sufficient funds available to meet its financial obligations as they fall due. The Company’s main sources of financing are as follows: · $350,000 thousand aggregate principal amount of 9.375% Senior Notes due March 1, 2022 (the “Notes”). The proceeds from the Notes, issued by Ferroglobe and Globe (together, the “Issuers”) on February 15, 2017, were primarily used to repay certain existing indebtedness of the Parent Company and its subsidiaries. Interest is payable semi-annually on March 1 and September 1 of each year. If Ferroglobe experiences a change of control, the Company is required to offer to redeem the Notes at 101% of their principal amount (further information below). · $200,000 thousand Revolving Credit Facility. Loans under the Revolving Credit Facility may be borrowed, repaid and reborrowed until the maturity of the facility in February 2021. Borrowings are available to be used to provide for the working capital and general corporate requirements of the Parent Company and its subsidiaries (including permitted acquisitions and permitted capital expenditures). At December 31, 2018 $139,325 thousand was utilized, including letters of credit (2017: nil) (see Note 30). · Hydroelectric finance lease. In May 2012, the Company entered into a sale and leaseback agreement with respect to certain hydroelectric assets in Spain. The lease payments are due in 120 installments from May 2012 to maturity in May 2022 (see Note 17). The Indenture governing the Company’s Notes includes change of control provisions that would require the Company to offer to redeem the outstanding Notes at a purchase price in cash equal to 101% of the principal amount of the notes, plus any accrued and unpaid interest in the event of a change of control. A change in control is defined in the Indenture as the occurrence of any of the following: 1. If the Company becomes aware, that any person or group, other than one of the Permitted Holders (which is defined as Grupo Villar Mir (GVM), Alan Kestenbaum or members of senior management) or affiliates of those Permitted Holders, directly or indirectly controls 35% or more of the Company’s voting stock and the aggregate voting stock of the Permitted Holders is the same or a lesser percentage; 2. If the Company sells or otherwise disposes of all or substantially all of its assets; 3. If the Company ceases to hold directly or indirectly 100% of the capital stock of Globe; or 4. If the shareholders or the Company or the U.S. subsidiary approve the liquidation or dissolution of either the Company or Globe. GVM currently owns approximately 54% of the Company’s voting stock and it is the Company’s understanding that a significant majority of GVM’s shares in the Company are pledged as collateral for GVM’s obligations to certain of its lenders (“GVM Lenders”). An enforcement by the GVM Lenders of their security over GVM’s shares will not automatically give rise to a change of control. There are contractual provisions in place that limit the likelihood of a change of control arising as a result of any such enforcement. These include a limitation on the number of shares that a GVM Lender is entitled to hold (individually or as a part of a group) to no more than 19% of the Company’s outstanding shares and a prohibition on the sale of shares by or on behalf of the GVM Lenders to any purchaser other than one who is believed to be a passive investor who would, following the acquisition, own no more than 15% of the Company’s outstanding share capital. A change of control may occur if a person other than a Permitted Holder were to acquire 35% or more of the Company’s outstanding shares at a time when the Permitted Holders held an equal or lesser percentage. So long as GVM maintains its current shareholding, that cannot occur. The position would be less clear following an enforcement and sale of shares by the GVM Lenders to a number of purchasers (per the terms above), as the contractual restrictions on share holdings then may cease to apply. Even so, building a significant stake in the Company would impose disclosure obligations on such a purchaser and is unlikely to occur on an unforeseen or precipitate basis. Based on our review of the provisions cited above, the Company has concluded that a change of control as defined in the Indenture is unlikely to occur and, accordingly, that the requirement to offer to redeem the Notes at the above-referenced premium is unlikely. Even if such unlikely developments were to occur, the Company believes it would have access to the credit markets and could utilize other cash generating initiatives, such as permitted divestitures of non-core assets, in order to meet its obligation to offer to redeem the Notes and fulfill such redemption on a timely basis. Further, on February 22, 2019, the Company amended its Revolving Credit Facility to afford the Company additional flexibility under its financial maintenance covenants during an interim period beginning with the first quarter of 2019 and continuing through the first quarter of 2020. The Company is committed to continuing to enhance its liquidity and capital structure and is looking at alternative financing arrangements and further non-core asset divestitures. Quantitative information i. Interest rate risk: At December 31, the Company’s interest-bearing financial liabilities were as follows: 2018 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 141,012 141,012 Obligations under finance leases — 66,471 66,471 Debt instruments 352,595 — 352,595 Other financial liabilities (*) 61,849 — 61,849 414,444 207,483 621,927 (*) 2017 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 1,003 1,003 Obligations under finance leases — 82,633 82,633 Debt instruments 350,270 — 350,270 Other financial liabilities (*) 86,238 13,153 99,391 436,508 96,789 533,297 (*) In respect of the above financial liabilities, at December 31, 2018, the Company had floating to fixed interest rate swaps in place covering 31% of its exposure to floating interest rates (2017: 83%). Analysis of sensitivity to interest rates At December 31, 2018, an increase of 1% in interest rates would have given rise to additional borrowing costs of $1,425 thousand (2017: $161 thousand). ii. Foreign currency risk: Notes and cross currency swap The Parent Company is exposed to exchange rate fluctuations as it has a Euro functional currency and future commitments to pay interest and principal in US dollars in respect of its outstanding debt instruments of $150,000 thousand (see Note 18). To manage this foreign currency risk, the Parent Company has entered into a cross currency swap and designated a portion of this as an effective cash flow hedge of the future interest and principal amounts due on its debt instruments. As discussed in Note 19, the notional amount of the cross currency swap exceeds the principal amount of the Parent Company’s debt instruments by $42,500 thousand and therefore a portion of the cross currency swap is not designated as a hedge and is accounted for at fair value through profit or loss. The Company has performed a sensitivity analysis that indicates that if the Euro was to strengthen (weaken) against the US Dollar by 10% it would record a loss (gain) of $4,615 thousand in respect of the portion of the cross currency swap accounted for at fair value through profit or loss (2017: $5,831 thousand). Foreign currency swaps in relation to trade receivables and trade payables At December 31, 2018 and 2017, the Company has no foreign currency swaps in place in respect of foreign currency accounts receivable and accounts payable. iii. Liquidity risk: The table below summarizes the maturity profile of the Company’s financial liabilities at December 31, 2017, based on contractual undiscounted payments. The table includes both interest and principal cash flows. The cash flows for debt instruments assume that principal of the Notes is repaid at maturity in March 2022 (see Note 18). 2018 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 8,191 — 132,821 — 141,012 Finance leases 12,999 13,817 39,655 — 66,471 Debt instruments 32,813 32,813 399,219 — 464,845 Financial loans from government agencies 58,758 6,996 1,822 507 68,083 Derivative financial instruments (491) (939) 7,559 — 6,129 Payables to related parties 11,128 — — — 11,128 Payable to non-current asset suppliers 11,648 99 — — 11,747 Contingent consideration 3,103 6,193 18,530 12,758 40,584 Trade and other payables 256,823 — — — 256,823 394,972 58,979 599,606 13,265 1,066,822 2017 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 1,003 — — — 1,003 Finance leases 15,379 15,504 58,225 — 89,108 Debt instruments 32,813 32,813 432,031 — 497,656 Financial loans from government agencies 88,127 2,362 2,349 1,056 93,894 Derivative financial instruments 595 203 18,108 — 18,906 Payables to related parties 12,973 — — — 12,973 Payable to non-current asset suppliers 5,411 — — — 5,411 Trade and other payables 192,859 — — — 192,859 349,160 50,882 510,713 1,056 911,810 The amounts disclosed in the table above for derivative financial instruments are the net undiscounted cash flows. The following table shows the gross inflows and outflows and the corresponding reconciliation of those amounts to the net carrying value of the derivatives. 2018 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Inflows 18,047 18,047 219,570 255,664 Outflows (17,556) (17,108) (227,129) (261,793) Net cash flow 491 939 (7,559) — (6,129) Discounted at the applicable interbank rates 82 52 (23,597) — (23,463) 2017 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Inflows 18,198 17,996 237,526 — 273,720 Outflows (18,793) (18,199) (255,634) — (292,626) Net cash flow (595) (203) (18,108) — (18,906) Discounted at the applicable interbank rates (995) (985) (36,060) — (38,040) Changes in liabilities arising from financing activities The changes in liabilities arising from financing activities during the year ended December 31, 2018 and 2017 were as follows: January 1, Reclassification of business held for sale (*) Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Other changes December 31, 2017 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 1,003 — 140,781 (772) — — 141,012 Obligations under finance leases 82,633 — (12,948) (3,214) — — 66,471 Debt instruments 350,270 — — — — 2,324 352,594 Financial loans from government agencies (Note 19) 99,391 — (33,096) (4,446) — — 61,849 Derivative financial instruments (Note 19) 38,040 — — (1,677) (12,841) (59) 23,463 Total liabilities from financing activities 571,337 — 94,737 (10,109) (12,841) 2,265 645,389 Dividends paid (20,642) Proceeds from stock option exercises 240 Other amounts paid due to financing activities (932) Payments to acquire or redeem own shares (20,100) Net cash (used) by financing activities 53,303 January 1, Reclassification of business held for sale (*) Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Other changes December 31, 2017 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 421,291 — (426,641) 1,916 — 4,437 1,003 Obligations under finance leases 5,237 81,383 (14,610) 10,623 — — 82,633 Debt instruments — — 337,383 — — 12,887 350,270 Financial loans from government agencies (Note 19) 87,360 — — 12,031 — — 99,391 Derivative financial instruments (Note 19) 699 5,576 — 1,971 31,614 (1,820) 38,040 Total liabilities from financing activities 514,587 86,959 (103,868) 26,541 31,614 15,504 571,337 Proceeds from stock option exercises 180 Other amounts paid due to financing activities (9,709) Net cash (used) by financing activities (113,397) (1) (*) |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of financial liabilities [abstract] | |
Fair value measurement | 28. Fair value measurement Fair value of assets and liabilities that are measured at fair value on a recurring basis The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities that are carried at fair value in the statement of financial position: December 31, 2018 Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) US$'000 US$'000 US$'000 US$'000 Other assets (Note 12): Biological assets 7,790 — — 7,790 Other financial assets (Note 10): Debt investments 67,079 — — 67,079 Listed equity securities 2,523 2,523 — — Other financial liabilities (Note 19): Derivative financial instruments - cross currency swap (20,384) — (20,384) — Derivative financial instruments - interest rate swaps (3,079) — (3,079) — Other liabilities (Note 21) Contingent consideration in a business combinations (26,222) — — (26,222) December 31, 2017 Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) US$'000 US$'000 US$'000 US$'000 Other assets (Note 12): Biological assets 27,279 — — 27,279 Other financial assets (Note 10): Other 82,638 — — 82,638 Other financial liabilities (Note 19): Derivative financial instruments - cross currency swap (33,648) — (33,648) — Derivative financial instruments - interest rate swaps (4,392) — (4,392) — Cross currency swap The cross currency swap is valued using a discounted cash flow technique. The valuation model incorporates foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies and forward interest rates. The valuation also incorporates a credit risk adjustment, calculated based on credit spreads derived from current credit default swap prices (see Note 19). The fair value of the swap at December 31, 2018 was a liability of $20,384 thousand, which is categorized as a level 2 measurement in the fair value hierarchy as it is based on valuation techniques for which the inputs are directly or indirectly observable. The fair value is calculated as the present value of the estimated future cash flows and is subject to a credit risk adjustment that reflect the credit risk of the Company; this is calculated based on credit spreads derived from current credit default swap prices. Interest rate swaps Interest rate swaps are valued using a discounted cash flow technique. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. Biological assets Biological assets comprise timber farms in South Africa, which are a source of raw materials used for the production of silicon metal. The timber farms plantations are measured at fair value less the incremental costs to be incurred until the related products are at the point of sale. The changes in the fair value of this asset are recognized in the income statement in the line “net gain (loss) due to changes in the value of assets” (see Note 25.5). During the year ended December 31, 2018, the Company divested of certain timber farm plantations and associated property, plant and equipment, which resulted in proceeds of $12,734 thousand. The fair value of the remaining timber farm plantations at December 31, 2018 is based on indicative offers received. In the prior year, the fair value of the biological assets was based on a valuation model for which the key assumptions were as follows: · the arm’s length price (market price) used by the market for wood of varying ages; · the wood pulp industry Mean Annual Increment (MAI) index of 15 for gum and 10.5 for pine is used to determine the annual growth rate of the plantations; and · the density index used to convert cubic meters of wood to metric tons is 0.94 for pine and 1 for wood pulp. The changes in fair value of biological assets classified at level 3 in the hierarchy were as follows: Level 3 US$'000 January 1, 2017 17,365 Gain recognised in profit or loss (Note 25.5) 7,504 Translation differences 2,410 December 31, 2017 27,279 Loss recognised in profit or loss (Note 25.5) (7,615) Disposal of biological assets (12,168) Translation differences 294 December 31, 2018 7,790 |
Non-current assets held for sal
Non-current assets held for sale | 12 Months Ended |
Dec. 31, 2018 | |
Non-current assets held for sale | |
Non-current assets held for sale | 29. Non-current assets held for sale On December 12, 2016, the Company entered into a sale agreement to dispose of its Spanish energy business. The assets and associated liabilities of this business were classified as held for sale in the balance sheet at December 31, 2016. Subsequently, in July 2017, the Company announced that it did not receive the required regulatory approvals to divest of its Spanish energy business and although it will continue to explore all options to capture the full value of these assets, completion of the previously announced sale is no longer considered to be highly probable. Accordingly, the Company in the second quarter of 2017 ceased to classify the assets and liabilities of the business as held for sale. In accordance with IFRS 5, the Company ceased to recognize depreciation expense in relation to its Spanish energy business while it was classified as held for sale. When the business ceased to be classified as held for sale, the Company recorded an adjustment of $2,608 thousand to the carrying amount of its assets, equivalent to the depreciation that would have been charged if the business had not been classified as held for sale. This loss is charged in the income statement for the year ended December 31, 2017, within the line item “other loss”. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2018 | |
Events after the reporting period | |
Events after the reporting period | 30. Events after the reporting period Amendment to revolving credit facility On February 22, 2019, Ferroglobe obtained the consent of its lenders for an amendment to its Revolving Credit Facility that affords the Company additional flexibility under its financial maintenance covenants. The amendment suspends the existing covenant to maintain a maximum total net leverage ratio during an interim period beginning with the first quarter of 2019 and continuing through the first quarter of 2020, and provides a new covenant to maintain a maximum secured net leverage ratio and a new covenant to maintain a minimum cash liquidity level which is the greater of $150,000 thousand or the Revolving Facility Usage, as defined, in the Revolving Credit Facility Agreement. The new covenants will be in effect only during the interim period, after which the existing covenant to maintain a maximum total net leverage ratio will be reinstated. The amendment also reduced the aggregate commitments under the Revolving Credit Facility from $250,000 thousand to $200,000 thousand. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Goodwill | 4.1 Goodwill Goodwill arising on consolidation represents the excess of the cost of acquisition over the Company’s interest in the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Any excess of the cost of the investments in the consolidated companies over the corresponding underlying carrying amounts acquired, adjusted at the date of first-time consolidation, is allocated as follows: 1. If it is attributable to specific assets and liabilities of the companies acquired, increasing the value of the assets (or reducing the value of the liabilities) whose market values were higher (lower) than the carrying amounts at which they had been recognized in their balance sheets and whose accounting treatment was similar to that of the same assets (liabilities) of the Company amortization, accrual, etc. 2. If it is attributable to specific intangible assets, recognizing it explicitly in the consolidated statement of financial position provided that the fair value at the date of acquisition can be measured reliably. 3. The remaining amount is recognized as goodwill, which is allocated to one or more specific cash-generating units. Goodwill is only recognized when it has been acquired for consideration and represents, therefore, a payment made by the acquirer for future economic benefits from assets of the acquired company that are not capable of being individually identified and separately recognized. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. |
Other intangible assets | 4.2 Other intangible assets Other intangible assets are assets without physical substance which can be individually identified either because they are separable or because they arise as a result of a legal or contractual right or of a legal transaction or were developed by the consolidated companies. Only intangible assets whose value can be measured reliably and from which the Company expects to obtain future economic benefits are recognized in the consolidated statement of financial position. Intangible assets are recognized initially at acquisition or production cost. The aforementioned cost is amortized systematically over each asset’s useful life. At each reporting date, these assets are measured at acquisition cost less accumulated amortization and any accumulated impairment losses, if any. The Company reviews amortization periods and amortization methods for finite-lived intangible assets at the end of each fiscal year. The Company’s main intangible assets are as follows: Development expenditures Development expenditures are capitalized if they meet the requirements of identifiability, reliability in cost measurement and high probability that the assets created will generate economic benefits. Developmental expenditures are amortized on a straight-line basis over the useful lives of the assets, which are between four and ten years. Expenditures on research activities are recognized as expenses in the years in which they are incurred. Power supply agreements Power supply agreements are amortized on a straight-line basis over the term in which the agreement is effective. Rights of use Rights of use granted are amortized on a straight-line basis over the term in which the right of use was granted from the date it is considered that use commenced. Rights of use are generally amortized over a period ranging from 10 to 20 years. Computer software Computer software includes the costs incurred in acquiring or developing computer software, including the related installation. Computer software is amortized on a straight-line basis over two to five years. Computer system maintenance costs are recognized as expenses in the years in which they are incurred. Other intangible assets Other intangible assets include: · Supply agreements which are amortized in accordance with their estimated useful lives (see Note 8). · CO 2 emissions allowances (“rights held emit greenhouse gasses”) which are not amortized, but rather are expensed when used (see Note 4.20). |
Property, plant and equipment | 4.3 Property, plant and equipment Cost Property, plant and equipment for our own use are initially recognized at acquisition or production cost and are subsequently measured at acquisition or production cost less accumulated depreciation and any accumulated impairment losses. When the construction and start-up of non-current assets require a substantial period of time, the borrowing costs incurred over that period are capitalized. The costs of expansion, modernization or improvements leading to increased productivity, capacity or efficiency or to a lengthening of the useful lives of the assets are capitalized. Repair, upkeep and maintenance expenses are recognized in the consolidated income statement for the year in which they are incurred. Mineral reserves are recorded at fair value at the date of acquisition. Depletion of mineral reserves is computed using the units-of-production method utilizing only proven and probable reserves (as adjusted for recoverability factors) in the depletion base. Property, plant and equipment in the course of construction are transferred to property, plant and equipment in use at the end of the related development period. Depreciation The Company depreciates property, plant and equipment using the straight-line method at annual rates based on the following years of estimated useful life: Years of Estimated Useful Life Properties for own use 25-50 Plant and machinery 8-20 Tools 12.5-15 Furniture and fixtures 10-15 Computer hardware 4-8 Transport equipment 10-15 Land included within property, plant and equipment is considered to be an asset with an indefinite useful life and, as such, is not depreciated, but rather it is tested for impairment annually. The Company reviews residual value, useful lives, and the depreciation method for property, plant and equipment annually. Environment The costs arising from the activities aimed at protecting and improving the environment are accounted for as an expense for the year in which they are incurred. When they represent additions to property, plant and equipment aimed at minimizing the environmental impact and protecting and enhancing the environment, they are capitalized to non-current assets. |
Impairment of property, plant and equipment, intangible assets and goodwill | 4.4 Impairment of property, plant and equipment, intangible assets and goodwill In order to ascertain whether its assets have become impaired, the Company compares their carrying amount with their recoverable amount at the end of the reporting period, or more frequently if there are indications that the assets might have become impaired. Where the asset itself does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of: · Fair value: the price that would be agreed upon by two independent parties, less estimated costs to sell, and · Value in use: the present value of the future cash flows that are expected to be derived from continuing use of the asset and from its ultimate disposal at the end of its useful life, discounted at a rate which reflects the time value of money and the risks specific to the business to which the asset belongs. If the recoverable amount of an asset (or cash-generating unit) is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount, and an impairment loss is recognized as an expense under “Impairment losses” in the consolidated income statement. Where an impairment loss subsequently reverses (not permitted in the case of goodwill), the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized as “Other income” in the consolidated income statement. The basis for depreciation is the carrying amount of the assets, deemed to be the acquisition cost less any accumulated impairment losses. |
Financial instruments | 4.5 Financial instruments Financial assets and financial liabilities are recognized in the Company’s statement of financial position when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. The Company has elected to apply the limited exemption in IFRS 9 relating to classification, measurement and impairment requirements for financial instruments, and accordingly comparative periods have not been restated and remain in line with the previous standard IAS 39 “Financial Instruments: Recognition and Measurement”. For further understanding of the impact of the transition to IFRS 9, refer to Note 3. Financial assets From January 1, 2018, the Company classifies its financial assets into the following categories: those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss) and those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. Financial assets measured at amortized cost Financial assets are classified as measured at amortized cost when they are held in a business model whose objective is to collect contractual cash flows and the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Such assets are carried at amortized cost using the effective interest method if the time value of money is significant. Gains and losses are recognized in profit or loss when the assets are derecognized or impaired and when interest is recognized using the effective interest method. This category of financial assets includes trade receivables, receivables from related parties and cash and cash equivalents. Financial assets measured at fair value through other comprehensive income Debt instruments are classified as measured at fair value through other comprehensive income when they are held in a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All movements in the fair value of these financial assets are taken through other comprehensive income, except for the recognition of impairment gains or losses, interest income calculated using the effective interest method and foreign exchange gains and losses. When the financial asset is derecognized, the cumulative fair value gain or loss previously recognized in other comprehensive income is reclassified to the income statement. Equity instruments are classified as measured at fair value through other comprehensive income if, on initial recognition, the Company makes an irrevocable election to designate the instrument as at fair value through other comprehensive income. The election is made on an instrument-by-instrument basis and is not permitted if the equity investment is held for trading. Fair value gains or losses on revaluation of such equity investments are recognized in other comprehensive income and accumulated in the valuation adjustments reserve. When the equity investment is derecognized, there is no reclassification of fair value gains or losses previously recognized in other comprehensive income to the income statement. Dividends are recognized in the income statement when the right to receive payment is established. Financial assets measured at fair value through profit or loss Financial assets are classified as measured at fair value through profit or loss when the asset does not meet the criteria to be measured at amortized cost or at fair value through other comprehensive income. Such assets are carried on the balance sheet at fair value with gains or losses recognized in the income statement. This category includes loans associated with the Company’s accounts receivable securitization program and certain equity investments in listed companies. Derecognition of financial assets The Company derecognizes a financial asset when: - the rights to receive cash flows from the asset have expired; or - the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. If the Company retains substantially all of the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. Impairment of financial assets The expected credit loss model is applied for recognition and measurement of impairments in financial assets measured at amortized cost and debt instruments held at fair value through other comprehensive income. The loss allowance for the financial asset is measured at an amount equal to the 12-month expected credit losses. If the credit risk on the financial asset has increased significantly since initial recognition, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses. Changes in loss allowances are recognized in profit and loss. For trade receivables, a simplified impairment approach is applied recognizing expected lifetime losses from initial recognition. For this purpose, the Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over two years past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Company’s recovery procedures, considering legal advice where appropriate. Any recoveries made are recognized in profit or loss. Financial liabilities The subsequent measurement of financial liabilities depends on their classification, as described below: Financial liabilities measured at fair value through profit or loss Financial liabilities that meet the definition of held for trading are classified as measured at fair value through profit or loss. Such liabilities are carried on the balance sheet at fair value with gains or losses recognized in the income statement. This category includes contingent consideration and derivatives, other than those designated as hedging instruments in an effective hedge. Derivatives designated as hedging instruments in an effective hedge These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in the accounting policy for derivative financial instruments and hedging activities. Financial liabilities measured at amortized cost This is the category most relevant to the Company and comprises all other financial liabilities, including bank borrowings, debt instruments, financial loans from government agencies, payables to related parties and trade and other payables. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. Amortized cost is calculated by considering any issue costs and any discount or premium on settlement. Derecognition of financial liabilities The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. When the Company exchanges with the existing lender one debt instrument into another one with substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Company accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between the carrying amount of the liability before the modification and the present value of the cash flows after modification are recognized in profit or loss as a modification gain or loss. |
Derivative financial instruments and hedging activities | 4.6 Derivative financial instruments and hedging activities In order to mitigate the economic effects of exchange rate and interest rate fluctuations to which it is exposed as a result of its business activities, the Company uses derivative financial instruments, such as cross currency swaps and interest rate swaps. The Company’s derivative financial instruments are set out in Note 19 to these consolidated financial statements and the Company’s financial risk management policies are set out in Note 27. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition of profit or loss depends on the nature of the hedge relationship. The gain or loss recognized in respect of derivatives that are not designated and effective as a hedging instrument is recognized in the consolidated income statement in the line item financial derivative gain (loss). A derivative with a positive fair value is recognized as a financial asset within the line item other financial assets whereas a derivative with a negative fair value is recognized as a financial liability within the line item other financial liabilities. A derivative is presented as a non-current asset or non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Hedge accounting The Company designates certain derivatives as cash flow hedges. For further details, see Note 19 of the consolidated financial statements. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking the hedge transaction. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to any ineffective portion is recognized immediately in profit or loss and is included in the financial derivative gain (loss) line item. Amounts previously recognized in other comprehensive income and accumulated in equity in the valuation adjustments reserve are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the income statement as the recognized hedged item. Hedge accounting is discontinued when the Company revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income at that time is accumulated in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss. |
Fair value measurement | 4.7 Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: in the principal market for the asset or liability; or in the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: · Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities. · Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. · Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For those assets and liabilities measured at fair value at the balance sheet date, further information on fair value measurement is provided in Note 28. |
Inventories | 4.8 Inventories Inventories comprise assets (goods) which: · Are held for sale in the ordinary course of business (finished goods); or · Are in the process of production for such sale (work in progress); or · Will be consumed in the production process or in the rendering of services (raw materials and spare parts). Inventories are stated at the lower of acquisition or production cost and net realizable value. The cost of each inventory item is generally calculated as follows: · Raw materials, spare parts and other consumables and replacement parts: the lower of weighted average acquisition cost and net realizable value. · Work in progress, finished goods and semi-finished goods: the lower of production cost (which includes the cost of materials, labor costs, direct and indirect manufacturing expenses) or net realizable value in the market. Obsolete, defective or slow-moving inventories have been reduced to net realizable value. Net realizable value is the estimated selling price less all the estimated costs of selling and distribution. The amount of any write-down of inventories (as a result of damage, obsolescence or decrease in the selling price) to their net realizable value and all losses of inventories are recognized as expenses in the year in which the write-down or loss occurs. Any subsequent reversals are recognized as income in the year in which they arise. The consumption of inventories is recognized as an expense in “Cost of sales” in the consolidated income statement in the period in which the revenue from their sale is recognized. |
Biological assets | 4.9 Biological assets The Company recognizes biological assets when: · It controls the asset as a result of past events; · It is probable that future economic benefits associated with the asset will flow to the entity; and · The fair value or cost of the asset can be measured reliably. Biological assets are measured at fair value less estimated costs to sell. The gains or losses arising on the initial recognition of a biological asset at fair value less costs to sell are included in the consolidated income statement for the period in which they arise. |
Cash and cash equivalents | 4.10 Cash and cash equivalents The Company classifies under “Cash and cash equivalents” any liquid financial assets, such as for example cash on hand and at banks, deposits and liquid investments, that can be converted into cash within three months and are subject to an insignificant risk of changes in value. |
Provisions and contingencies | 4.11 Provisions and contingencies When preparing the consolidated financial statements, the Parent’s directors made a distinction between: · Provisions: present obligations, either legal, contractual, constructive or assumed by the Company, arising from past events, the settlement of which is expected to give rise to an outflow of economic benefits the amount or timing of which are uncertain; and · Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company, or present obligations arising from past events the amount of which cannot be estimated reliably or whose settlement is not likely to give rise to an outflow of economic benefits. · Contingent assets: possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The consolidated financial statements include all the material provisions with respect to which it is considered that it is probable that the obligation will have to be settled. Contingent liabilities are not recognized in the consolidated financial statements, but rather are disclosed, as required by IAS 37 (see Note 24). Provisions are classified as current or non-current based on the estimated period of time in which the obligations covered by them will have to be met. They are recognized when the liability or obligation giving rise to the indemnity or payment arises, to the extent that its amount can be estimated reliably. “Provisions” includes the provisions for pension and similar obligations assumed; provisions for contingencies and charges, such as for example those of an environmental nature and those arising from litigation in progress or from outstanding indemnity payments or obligations, and collateral and other similar guarantees provided by the Company; and provisions for medium- and long- term employee incentives. Contingent assets are not recognized, but are disclosed where an inflow of economic benefits is probable. If it has become virtually certain that an inflow of economic benefits will arise, the asset and the related income are recognized in the financial statements in the period in which the change occurs. Defined contribution plans Certain employees have defined contribution plans which conform to the Spanish Pension Plans and Funds Law. The main features of these plans are as follows: · They are mixed plans covering the benefits for retirement, disability and death of the participants. · The sponsor undertakes to make monthly contributions of certain percentages of current employees’ salaries to external pension funds. The annual cost of these plans is recognized under Staff costs in the consolidated income statement. Defined benefit plans IAS 19, Employee Benefits requires defined benefit plans to be accounted for: · Using actuarial techniques to make a reliable estimate of the amount of benefits that employees have earned in return for their service in the current and prior periods. · Discounting those benefits in order to determine the present value of the obligation. · Determining the fair value of any plan assets. · Determining the total amount of actuarial gains and losses and the amount of those actuarial gains and losses that must be recognized. The amount recognized as a benefit liability arising from a defined benefit plan is the total net sum of: · The present value of the obligations. · Minus the fair value of plan assets (if any) out of which the obligations are to be settled directly. The Company recognizes provisions for these benefits as the related rights vest and on the basis of actuarial studies. These amounts are recognized under “Provisions” in the consolidated statement of financial position, on the basis of their expected due payment dates. All plan assets are separately from the rest of the Company’s assets. Environmental provisions Provisions for environmental obligations are estimated by analyzing each case separately and observing the relevant legal provisions. The best possible estimate is made on the basis of the information available and a provision is recognized provided that the aforementioned information suggests that it is probable that the loss or expense will arise and it can be estimated in a sufficiently reliable manner. The balance of provisions and disclosures disclosed in Notes 15 and 24 reflects management’s best estimation of |
Leases | 4.12 Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership, which usually has the option to purchase the assets at the end of the lease under the terms agreed upon when the lease was arranged. All other leases are classified as operating leases. Finance leases At the commencement of the lease term, the Company recognizes finance leases as assets and liabilities in the consolidated statement of financial position at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. To calculate the present value of the lease payments the interest rate stipulated in the finance lease is used. The cost of assets acquired under finance leases is presented in the consolidated statement of financial position on the basis of the nature of the leased asset. The depreciation policy for these assets is consistent with that for property, plant and equipment for own use. Finance charges are recognized over the lease term on a time proportion basis. Operating leases In operating leases, the ownership of the leased asset and substantially all the risks and rewards relating to the leased asset remain with the lessor. Lease income and expenses from operating leases are credited or charged to income on an accrual basis depending on whether the Company acts as the lessor or lessee. |
Current assets and liabilities | 4.13 Current assets and liabilities In general, assets and liabilities are classified as current or non-current based on the Company’s operating cycle. However, in view of the diverse nature of the activities carried on by the Company, in which the duration of the operating cycle differs from one activity to the next, in general assets and liabilities expected to be settled or fall due within twelve months from the end of the reporting period are classified as current items and those which fall due or will be settled within more than twelve months are classified as non-current items. |
Income taxes | 4.14 Income taxes Income tax expense represents the sum of current tax and deferred tax. Income tax is recognized in the income statement except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case the related tax is recognized in other comprehensive income or directly in equity. The current income tax expense is based on domestic and international statutory income tax rates in the tax jurisdictions where the Company operates related to taxable profit for the period. The taxable profit differs from net profit as reported in the income statement because it is determined in accordance with the rules established by the applicable taxation authorities which includes temporary differences, permanent differences, and available credits and incentives. The Company’s deferred tax assets and liabilities are provided on temporary differences at the balance sheet date between financial reporting and the tax basis of assets and liabilities, then applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized for deductible temporary differences, carry-forward of unused tax credits and losses, to the extent that it is probably that taxable profit will be available against which the deductible temporary difference and carryforwards of unused tax credits and losses can be utilized. The deferred tax assets and liabilities that have been recognized are reassessed at the end of each reporting period in order to ascertain whether they still exist, and adjustments are made on the basis of the findings of the analyses performed. Income tax payable is the result of applying the applicable tax rate in force to each tax-paying entity, in accordance with the tax laws in force in the country in which the entity is registered. Additionally, tax deductions and credits are available to certain entities, primarily relating to inter-company trades and tax treaties between various countries to prevent double taxation. Income tax expense is recognized in the consolidated income statement, except to the extent that it arises from a transaction which is recognized directly to “consolidated equity”, in which case the tax is recognized directly to “consolidated equity.” Deferred tax assets and liabilities are offset only when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority or either the same taxable entity or different taxable entities where there is an intention to settle the current tax assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously. |
Foreign currency transactions | 4.15 Foreign currency transactions Foreign currency transactions are initially recognized in the functional currency of the subsidiary by applying the exchange rates prevailing at the date of the transaction. Subsequently, at each reporting date, monetary assets and liabilities denominated in foreign currencies are translated to euros at the rates prevailing on that date. Any exchange differences arising on settlement or translation at the closing rates of monetary items are recognized in the consolidated income statement for the year. Note 4.6 details the Company’s accounting policies for these derivative financial instruments. Also, Note 27 to these consolidated financial statements details the financial risk policies of Ferroglobe. |
Revenue recognition | 4.16 Revenue recognition The Company recognizes sales revenue related to the transfer of promised goods or services when control of the goods or services passes to the customer. The amount of revenue recognized reflects the consideration to which the Company is or expects to be entitled in exchange for those goods or services. In the Company’s electrometallurgy business, revenue is principally generated from the sale of goods, including silicon metal and silicon- and manganese-based specialty alloys. The Company mainly satisfies its performance obligations at a point in time; the amounts of revenue recognized relating to performance obligations satisfied over time are not significant. The point in time at which control is transferred to the buyer is determined based on the agreed delivery terms, which follow Incoterms 2010 issued by International Chamber of Commerce. In most instances, control passes and sales revenue is recognized when the product is delivered to the vessel or vehicle on which it will be transported, the destination port or the customer’s premises. There may be circumstances when judgment is required based on the five indicators of control below. · The customer has the significant risks and rewards of ownership and has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the goods or service. · The customer has a present obligation to pay in accordance with the terms of the sales contract. · The customer has accepted the asset. Sales revenue may be subject to adjustment if the product specification does not conform to the terms specified in the sales contract, but this does not impact the passing of control. Specification adjustments have been immaterial historically. · The customer has legal title to the asset. The Company may retain legal title until payment is received but this is for credit risk purposes only. · The customer has physical possession of the asset. This indicator may be less important as the customer may obtain control of an asset prior to obtaining physical possession, which may be the case for goods in transit. Where the Company sells on ‘C’ terms (e.g., CIF, CIP, CFR and CPT), the Company is responsible (acts as principal) for providing shipping services and, in some instances, insurance after the date at which control of goods passes to the customer at the loading point. The Company therefore has separate performance obligations for freight and insurance services that are provided solely to facilitate sale of the commodities it produces. Revenue attributable to freight and insurance services is not usually material. Where the Company sells on ‘D’ terms (e.g., DDP, DAP and DAT), the Company arranges and pays for the carriage and retains the risk of the goods until delivery at an agreed destination, where ownership and control is transferred. Where the Company sells on ‘F’ terms (e.g., FCA and FOB), the customer arranges and pays for the main transportation. Risk and control are transferred to the customer when the goods are handed to the carrier engaged by the customer. The Company’s products are sold to customers under contracts which vary in tenure and pricing mechanisms. The majority of pricing terms are either fixed or index-based for monthly, quarterly or annual periods, with a smaller proportion of volumes being sold on the spot market. Within each sales contract, each unit of product shipped is a separate performance obligation. Revenue is generally recognized at the contracted price as this reflects the stand-alone selling price. Sales revenue excludes any applicable sales taxes. Physical exchanges with counterparties in the same line of business in order to facilitate sales to customers are reported net, as are sales and purchases made with a common counterparty, as part of an arrangement similar to a physical exchange. Revenue from the energy business is based on the power generated and put on the market at regulated prices and is recognized when the energy produced is transferred to the power network. Interest income is recognized as the interest accrues using the effective interest rate, the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset. Dividend income from investments is recognized when the shareholders’ right to receive the payment is established. |
Expense recognition | 4.17 Expense recognition Expenses are recognized on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises. An expense is recognized in the consolidated income statement when there is a decrease in the future economic benefits related to a reduction of an asset, or an increase in a liability, which can be measured reliably. This means that an expense is recognized simultaneously with the recognition of the increase in a liability or the reduction of an asset. Additionally, an expense is recognized immediately in the consolidated income statement when a disbursement does not give rise to future economic benefits or when the requirements for recognition as an asset are not met. Also, an expense is recognized when a liability is incurred and no asset is recognized, as in the case of a liability relating to a guarantee. |
Grants | 4.18 Grants Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset. |
Termination benefits | 4.19 Termination benefits Under current labor legislation, the Company is required to pay termination benefits to employees whose employment relationship is terminated under certain conditions. The payments for termination benefits, when they arise, are charged as an expense when the decision to terminate the employment relationship is taken. |
CO2 emission allowances | 4.20 CO2 emission allowances CO 2 emission allowances are measured at cost of acquisition. Allowances acquired free of charge under governmental schemes are initially measured at market value at the date received. At the same time, a grant is recognized for the same amount under “deferred income”. Emissions allowances are not amortized, but rather are expensed when used. At year end, the Company assesses whether the carrying amount of the allowances exceeds their market value in order to determine whether there are indicators of impairment. If there are such indicators, the Company determines whether these allowances will be used in the production process or earmarked for sale, in which case the necessary impairment losses would be recognized. Provisions are released when the factors leading to the valuation adjustment have ceased to exist. A provision for liabilities and charges is recognized for expenses related to the emission of greenhouse gases. This provision is maintained until the company is required to settle the liability by surrendering the corresponding emission allowances. These expenses are accrued as greenhouse gases are emitted. When an expense is recognized for allowances acquired free of charge, the corresponding “deferred income” is taken to operating income. The Company derecognizes allowances surrendered at their carrying amount and recognizes those received at their fair value when received. The difference between both values is recognized as “deferred income”. |
Share-based compensation | 4.21 Share-based compensation The Company recognizes share-based compensation expense based on the estimated grant date fair value of share-based awards using a Black-Scholes option pricing model. Prior to vesting, cumulative compensation cost equals the proportionate amount of the award earned to date. The Company has elected to treat each award as a single award and recognize compensation cost on a straight-line basis over the requisite service period of the entire award. If the terms of an award are modified in a manner that affects both the fair value and vesting of the award, the total amount of remaining unrecognized compensation cost (based on the grant-date fair value) and the incremental fair value of the modified award are recognized over the amended vesting period. |
Assets and disposal groups classified as held for sale, liabilities associated with assets held for sale and discontinued operations | 4.22 Assets and disposal groups classified as held for sale, liabilities associated with assets held for sale and discontinued operations Assets and disposal groups classified as held for sale include the carrying amount of individual items, disposal groups or items forming part of a business unit earmarked for disposal (discontinued operations), whose sale in their present condition is highly likely to be completed within one year from the reporting date. Therefore, the carrying amount of these items, which may or may not be of a financial nature, will likely be recovered through the proceeds from their disposal. Liabilities associated with non-current assets held for sale include the balances payable arising from the assets held for sale or disposal groups and from discontinued operations. Assets and disposal groups classified as held for sale are measured at the lower of fair value less costs to sell and their carrying amount at the date of classification in this category. Non-current assets held for sale are not depreciated as long as they remain in this category. |
Consolidated statement of cash flows | 4.23 Consolidated statement of cash flows The following terms are used in the consolidated statement of cash flows, prepared using the indirect method, with the meanings specified as follows: 1. Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value. 2. Operating activities: activities constituting the object of the subsidiaries forming part of the consolidated Company and other activities that are not investing or financing activities. 3. Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents. Financing activities: activities that result in changes in the size and composition of the equity and borrowings of the Company that are not operating or investing activities. |
Organization and Subsidiaries (
Organization and Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Organization and Subsidiaries [Abstract] | |
Schedule of subsidiaries by business activity | Percentage of Ownership Direct Total Line of Business Registered Alabama Sand and Gravel, Inc. — Electrometallurgy - North America Delaware - USA Alden Resources, LLC — Electrometallurgy - North America Delaware - USA Alden Sales Corporation, LLC — Electrometallurgy - North America Delaware - USA ARL Resources, LLC — Electrometallurgy - North America Delaware - USA ARL Services, LLC — Electrometallurgy - North America Delaware - USA Core Metals Group Holdings, LLC — Electrometallurgy - North America Delaware - USA Core Metals Group, LLC — Electrometallurgy - North America Delaware - USA Gatliff Services, LLC — Electrometallurgy - North America Delaware - USA GBG Holdings, LLC — Electrometallurgy - North America Delaware - USA Globe Metallurgical Inc. — Electrometallurgy - North America Delaware - USA Globe Metals Enterprises, Inc. — Electrometallurgy - North America Delaware - USA GSM Alloys I, Inc. — Electrometallurgy - North America Delaware - USA GSM Alloys II, Inc. — Electrometallurgy - North America Delaware - USA GSM Enterprises Holdings, Inc. — Electrometallurgy - North America Delaware - USA GSM Enterprises, LLC — Electrometallurgy - North America Delaware - USA GSM Sales, Inc. — Electrometallurgy - North America Delaware - USA LF Resources, Inc. — Electrometallurgy - North America Delaware - USA Metallurgical Process Materials, LLC — Electrometallurgy - North America Delaware - USA Norchem, Inc. — Electrometallurgy - North America Florida - USA QSIP Canada ULC — Electrometallurgy - North America Canada Quebec Silicon General Partner — Electrometallurgy - North America Canada Quebec Silicon Limited Partnership — Electrometallurgy - North America Canada Tennessee Alloys Company, LLC — Electrometallurgy - North America Delaware - USA West Virginia Alloys, Inc. — Electrometallurgy - North America Delaware - USA WVA Manufacturing, LLC — Electrometallurgy - North America Delaware - USA Cuarzos Industriales, S.A.U. — Electrometallurgy - Europe A Coruña - Spain Ferroatlántica del Cinca, S.L. (1) — Electrometallurgy - Europe Spain Ferroatlántica, S.A.U. (2) — Electrometallurgy - Europe Madrid - Spain Ferroglobe Mangan Norge AS (1) — Electrometallurgy - Europe Norway Ferroglobe Manganese France SAS (1) — Electrometallurgy - Europe France FerroPem, S.A.S. — Electrometallurgy - Europe France Grupo FerroAtlántica, S.A.U 100 Electrometallurgy - Europe Madrid - Spain Islenska Kisilfelagio EHF (Icelandic Silicon Corp.) — Electrometallurgy - Europe Iceland Kintuck (France) SAS (1) — Electrometallurgy - Europe France Kintuck AS (1) — Electrometallurgy - Europe Norway Rocas, Arcillas y Minerales, S.A. — Electrometallurgy - Europe A Coruña - Spain Rebone Mining (Pty.), Ltd. — Electrometallurgy - South Africa Polokwane - South Africa Silicon Smelters (Pty.), Ltd. — Electrometallurgy - South Africa Polokwane - South Africa Silicon Technology (Pty.), Ltd. — Electrometallurgy - South Africa South Africa Thaba Chueu Mining (Pty.), Ltd. — Electrometallurgy - South Africa Polokwane - South Africa 16 Front Street, LLC — Other segments Delaware - USA Actifs Solaires Bécancour, Inc — Other segments Canada Cuarzos Indus. de Venezuela (Cuarzoven), S.A. — Other segments Venezuela Emix, S.A.S. — Other segments France ECPI, Inc. — Other segments Delaware - USA FerroAtlántica Canada Company Ltd — Other segments Canada Ferroatlántica de México, S.A. de C.V. — Other segments Nueva León - Mexico Ferroatlántica de Venezuela (FerroVen), S.A. — Other segments Venezuela Ferroatlántica Deutschland, GmbH — Other segments Germany Ferroatlántica do Brasil Mineraçao Ltda. — Other segments Brazil Ferroatlántica I+D, S.L.U. — Other segments Madrid - Spain FerroAtlántica India Private Limited — Other segments India FerroAtlántica International Ltd — Other segments United Kingdom Ferroatlántica y Cía., F. de Ferroaleac. y Metales, S.C. — Other segments Madrid - Spain Ferroatlántica, S.A.U. (2) — Other segments Madrid - Spain Ferroglobe Services (UK) PLC 100 Other segments United Kingdom FerroManganese Mauritania SARL — Other segments Mauritania Ferroquartz Company Inc. — Other segments Canada Ferroquartz Holdings, Ltd (Hong Kong) — Other segments Hong Kong FerroQuartz Mauritania SARL — Other segments Mauritania FerroQuébec Company Inc. — Other segments Canada Ferrosolar OPCO Group SL. — Other segments Spain Ferrosolar R&D SL. — Other segments Spain FerroTambao, SARL — Other segments Burkina Faso Ganzi Ferroatlántica Silicon Industry Company, Ltd. — Other segments Sichuan - China GBG Financial LLC — Other segments Delaware - USA GBG Holdings, LLC — Other segments Delaware - USA Globe Argentina Holdco, LLC — Other segments Delaware - USA Globe BG, LLC — Other segments Delaware - USA Globe LSE, Inc. — Other segments Delaware - USA Globe Metales S.R.L. — Other segments Argentina Globe Metallurgical Carbon, LLC — Other segments Delaware - USA Globe Specialty Metals, Inc. 100 Other segments Delaware - USA GSM Financial, Inc. — Other segments Delaware - USA GSM Netherlands, BV — Other segments Netherlands Laurel Ford Resources, Inc. — Other segments Delaware - USA Mangshi FerroAtlántica Mining Indus. Serv. Ltd — Other segments Mangshi, Dehong -Yunnan -China Mangshi Sinice Silicon Industry Company Limited — Other segments Mangshi, Dehong -Yunnan -China MST Financial Holdings, LLC — Other segments Delaware - USA MST Financial, LLC — Other segments Delaware - USA MST Resources, LLC — Other segments Delaware - USA Ningxia Yonvey Coal Industrial Co., Ltd. — Other segments China Photosil Industries, SAS — Other segments France Silicio Ferrosolar, SLU — Other segments Spain Solsil, Inc. — Other segments Delaware - USA Ultra Core Polska (UCP) — Other segments Poland Ultracore Energy SA — Other segments Argentina (1) Entered into the scope of consolidation during 2018. (2) FerroAtlántica, S.A.U. carries on business activities in both “Electrometallurgy – Europe” and “Other segments” (energy business) |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Schedule of useful lives of property, plant and equipment | Years of Estimated Useful Life Properties for own use 25-50 Plant and machinery 8-20 Tools 12.5-15 Furniture and fixtures 10-15 Computer hardware 4-8 Transport equipment 10-15 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about business combination [abstract] | |
Reconciliation of the final fair value of assets acquired and liabilities assumed to the value of the Acquisition Consideration | Balances US$'000 ASSETS Non-current assets Other intangible assets 45 Property, plant and equipment 62,487 Other non-current financial assets 50 Total non-current assets acquired 62,582 Current assets Inventories 21,314 Trade and other receivables 24,785 Other current assets 1,397 Cash and cash equivalents 29,530 Total current assets acquired 77,026 Total assets acquired 139,608 LIABILITIES Non-current liabilities Deferred tax liabilities 90 Total non-current liabilities assumed 90 Current liabilities Trade and other payables 18,048 Provisions 735 Current income tax liabilities 396 Other current liabilities 4,066 Total current liabilities assumed 23,245 Total liabilities assumed 23,335 Net assets acquired 116,273 Satisfied by: Cash 49,909 Contingent consideration 26,222 Total consideration transferred 76,131 Gain on bargain purchase 40,142 Net cash outflow arising on acquisition Cash consideration 49,909 Less: cash and cash equivalent balances acquired (29,530) 20,379 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Schedule of consolidated statements of income and financial position by reportable segment | The consolidated income statements at December 31, 2018, 2017 and 2016, by reportable segment, are as follows: 2018 Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 710,716 1,447,973 208,543 94,111 (187,305) 2,274,038 Cost of sales (394,044) (1,059,474) (137,177) (43,871) 187,212 (1,447,354) Other operating income 4,943 39,817 3,420 16,859 (19,002) 46,037 Staff costs (115,555) (177,047) (23,735) (24,727) — (341,064) Other operating expense (77,670) (146,143) (26,353) (52,859) 19,095 (283,930) Depreciation and amortization charges, operating allowances and write-downs (69,009) (34,974) (5,526) (9,628) — (119,137) Impairment losses — — — (58,919) — (58,919) Net loss due to changes in the value of assets — (7) (7,616) — — (7,623) (Loss) gain on disposal of non-current assets (208) (8,369) (261) 23,402 — 14,564 Bargain purchase gain — 40,142 — — — 40,142 Operating profit (loss) 59,173 101,918 11,295 (55,632) — 116,754 Finance income 804 11,035 199 32,556 (39,220) 5,374 Finance costs (4,109) (40,831) (5,298) (51,004) 39,220 (62,022) Financial derivative gain — — — 2,838 — 2,838 Exchange differences (1,194) (10,561) 2,284 (4,665) — (14,136) Profit (loss) before tax 54,674 61,561 8,480 (75,907) — 48,808 Income tax (expense) benefit 4,949 (15,048) (3,582) (10,554) — (24,235) Profit (loss) for the year 59,623 46,513 4,898 (86,461) — 24,573 Loss (profit) attributable to non-controlling interests 4,785 (332) 358 14,277 — 19,088 Profit (loss) attributable to the Parent 64,408 46,181 5,256 (72,184) — 43,661 2017 Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 541,143 1,083,200 122,504 60,199 (65,353) 1,741,693 Cost of sales (303,096) (690,589) (81,744) (33,616) 65,650 (1,043,395) Other operating income 2,701 12,681 2,868 15,619 (15,670) 18,199 Staff costs (90,802) (147,595) (23,495) (39,851) (220) (301,963) Other operating expense (68,537) (107,130) (24,462) (55,955) 16,158 (239,926) Depreciation and amortization charges, operating allowances and write-downs (66,789) (27,404) (5,788) (4,557) 9 (104,529) Impairment losses (30,618) — — (323) (16) (30,957) Net gain due to changes in the value of assets — — 7,222 — 282 7,504 (Loss) gain on disposal of non-current assets (3,718) 301 (138) (818) 57 (4,316) Other (loss) gain — (13,604) — (2,625) 13,616 (2,613) Operating (loss) profit (19,716) 109,860 (3,033) (61,927) 14,513 39,697 Finance income 448 6,733 404 191,261 (195,138) 3,708 Finance costs (4,567) (40,106) (7,361) (48,486) 35,108 (65,412) Financial derivative loss — — — (6,850) — (6,850) Exchange differences (191) 5,938 (1,197) 3,730 (66) 8,214 (Loss) profit before tax (24,026) 82,425 (11,187) 77,728 (145,583) (20,643) Income tax (expense) benefit 29,386 (26,031) 2,068 9,692 (294) 14,821 Profit (loss) for the year 5,360 56,394 (9,119) 87,420 (145,877) (5,822) Loss (profit) attributable to non-controlling interests 4,734 (370) (147) 951 (24) 5,144 Profit (loss) attributable to the Parent 10,094 56,024 (9,266) 88,371 (145,901) (678) 2016 (*) Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 521,192 949,547 142,160 90,337 (127,199) 1,576,037 Cost of sales (325,254) (672,026) (99,124) (79,912) 132,904 (1,043,412) Other operating income 362 25,908 3,422 4,713 (8,190) 26,215 Staff costs (82,032) (132,440) (23,589) (58,577) 239 (296,399) Other operating expense (64,606) (118,269) (28,834) (37,964) 5,727 (243,946) Depreciation and amortization charges, operating allowances and write-downs (73,530) (31,730) (4,732) (12,818) (2,867) (125,677) Impairment losses (193,000) (1,077) (8,147) (59,248) (6,617) (268,089) Net gain (loss) due to changes in the value of assets — — 1,896 — (5) 1,891 Gain (loss) on disposal of non-current assets — — 21 446 (127) 340 Other (loss) gain — (32,655) — (2,514) 35,129 (40) Operating (loss) profit (216,868) (12,742) (16,927) (155,537) 28,994 (373,080) Finance income 1 11,551 744 6,639 (17,399) 1,536 Finance costs (3,249) (16,540) (6,038) (13,629) 9,205 (30,251) Exchange differences (438) 2,436 (2,164) (3,290) (57) (3,513) (Loss) profit before tax (220,554) (15,295) (24,385) (165,817) 20,743 (405,308) Income tax benefit (expense) 9,982 (10,505) 4,433 40,160 2,625 46,695 (Loss) profit for the year (210,572) (25,800) (19,952) (125,657) 23,368 (358,613) Loss (profit) attributable to non-controlling interests 6,044 (93) 856 11,827 1,552 20,186 (Loss) profit attributable to the Parent (204,528) (25,893) (19,096) (113,830) 24,920 (338,427) (*) (**) The consolidated statements of financial position at December 31, 2018 and 2017, by reportable segment are as follows: 2018 Consolidation Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (*) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Goodwill 202,848 — — — — 202,848 Other intangible assets 22,798 26,476 1,292 1,256 — 51,822 Property, plant and equipment 467,616 219,520 56,679 145,047 — 888,862 Inventories 113,673 288,669 35,944 18,684 — 456,970 Trade and other receivables (**) 267,974 274,291 50,665 834,515 (1,254,935) 172,510 Cash and cash equivalents 76,791 110,523 19,483 9,850 — 216,647 Other 15,341 85,905 8,692 24,220 — 134,158 Total assets 1,167,041 1,005,384 172,755 1,033,572 (1,254,935) 2,123,817 Equity 646,851 206,781 58,294 (27,554) — 884,372 Provisions 29,644 71,163 7,889 7,661 — 116,357 Bank borrowings — 6,914 — 134,098 — 141,012 Obligations under finance leases 1,466 — — 65,005 — 66,471 Debt instruments — — — 352,594 — 352,594 Other financial liabilities — 3,841 — 81,471 — 85,312 Trade and other payables (***) 414,022 662,667 93,970 379,468 (1,282,176) 267,951 Other 75,058 54,018 12,602 40,829 27,241 209,748 Total equity and liabilities 1,167,041 1,005,384 172,755 1,033,572 (1,254,935) 2,123,817 2017 Consolidation Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (*) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Goodwill 205,287 — — — — 205,287 Other intangible assets 26,724 20,381 1,505 10,048 — 58,658 Property, plant and equipment 512,003 167,314 64,331 174,326 — 917,974 Inventories 100,856 204,240 42,478 13,657 — 361,231 Trade and other receivables (**) 165,006 260,612 35,330 833,243 (1,175,756) 118,435 Cash and cash equivalents 10,886 153,967 6,912 12,707 — 184,472 Other 36,554 92,322 41,008 29,528 (45,212) 154,200 Total assets 1,057,316 898,836 191,564 1,073,509 (1,220,968) 2,000,257 Equity 521,819 198,059 62,933 154,947 — 937,758 Provisions 28,602 56,654 11,080 19,156 — 115,492 Bank borrowings — — — 1,003 — 1,003 Obligations under finance leases 1,994 — — 80,639 — 82,633 Debt instruments — — — 350,270 — 350,270 Other financial liabilities — 4,918 — 132,513 — 137,431 Trade and other payables (***) 321,710 584,542 95,082 380,834 (1,176,336) 205,832 Other 183,191 54,663 22,469 (45,853) (44,632) 169,838 Total equity and liabilities 1,057,316 898,836 191,564 1,073,509 (1,220,968) 2,000,257 (*) These amounts correspond to balances between segments that are eliminated at consolidation . (**) Trade and other receivables includes non-current and current receivables from group and related parties. (***) Trade and other payables includes non-current and current payables from group and related parties. |
Schedule of sales by product line | 2018 2017 2016 US$'000 US$'000 US$'000 Silicon metal 933,366 739,618 751,508 Manganese-based alloys 527,757 363,644 223,451 Ferrosilicon 359,374 266,862 242,788 Other silicon-based alloys 215,697 188,183 173,901 Silica fume 37,061 36,338 37,480 Energy 44,185 16,661 20,380 Other 156,598 130,387 126,529 Total 2,274,038 1,741,693 1,576,037 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Schedule of changes in the carrying amount of goodwill | January 1, Impairment Exchange December 31, Impairment Exchange December 31, 2017 (Note 25.5) differences 2017 (Note 25.5) differences 2018 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Globe Specially Metals, Inc. (Globe) 230,210 (30,618) 5,695 205,287 — (2,439) 202,848 Total 230,210 (30,618) 5,695 205,287 — (2,439) 202,848 |
Schedule of key assumptions used in the determination of recoverable value | 2018 2017 U.S. Canada U.S. Canada Weighted average cost of capital 11.0 % 10.5 % 10.5 % 10.5 % Long-term growth rate 2.0 % 2.0 % 1.5 % 1.5 % Normalized tax rate 22.0 % 26.5 % 27.1 % 26.5 % Normalized cash free net working capital 21.0 % 21.0 % 21.0 % 21.0 % |
Schedule of sensitivity to changes in assumptions affecting impairment | Excess of Sensitivity on Sensitivity on Sensitivity on recoverable discount rate long-term growth rate cash flows value over Decrease Increase Decrease Increase Decrease Increase Goodwill carrying value by 10% by 10% by 10% by 10% by 10% by 10% (in millions of US$) Electrometallurgy - U.S. 172.9 43.2 94.4 (73.7) (11.0) 11.5 (59.7) 59.7 Electrometallurgy - Canada 29.9 4.8 17.7 (13.8) (2.2) 2.3 (12.1) 12.1 Total 202.8 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of changes in the carrying amount of other intangible assets | Other Accumulated Development Power Supply Computer Intangible Depreciation Impairment Expenditure Agreements Rights of Use Software Assets (Note 25.3) (Note 25.5) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2017 40,354 37,836 20,345 5,815 21,784 (54,629) (8,666) 62,839 Additions 260 — 55 — 14,472 (8,440) (443) 5,904 Disposals — — — (10) (14,294) 565 — (13,739) Transfers from/(to) other accounts 4,044 — — — (150) (3,894) — — Exchange differences 5,824 — 2,639 242 2,451 (6,353) (1,149) 3,654 Balance at December 31, 2017 50,482 37,836 23,039 6,047 24,263 (72,751) (10,258) 58,658 Additions 992 — — — 26,385 (9,312) (16,073) 1,992 Disposals — — — (64) (7,260) — — (7,324) Business combinations (Note 5) — — — 45 — — — 45 Transfers from/(to) other accounts 1,919 — — — (1,919) — — — Exchange differences (2,408) — (648) (101) (1,656) 2,546 718 (1,549) Balance at December 31, 2018 50,985 37,836 22,391 5,927 39,813 (79,517) (25,613) 51,822 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of property, plant and equipment, net of related accumulated depreciation and impairment | Advances and Property, Plant Other Items of Other Fixtures, and Equipment Property, Land and Plant and Tools and in the Course of Mineral Plant Accumulated Buildings Machinery Furniture Construction Reserves and Equipment Depreciation Impairment Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2017 191,058 1,220,055 5,972 49,865 59,989 32,203 (665,507) (112,029) 781,606 Additions 1,665 1,849 2,262 71,204 — 1,455 (94,051) 104 (15,512) Disposals and other (202) (56,475) (607) (1,029) — (164) 49,403 — (9,074) Transfers from/(to) other accounts 5,228 49,892 377 (58,480) (90) (58) 3,131 — — Exchange differences 16,843 96,709 450 9,225 460 (1,072) (73,575) (5,058) 43,982 Additions to the scope of consolidation 1,648 97 — 16,985 — — — — 18,730 Transfer from assets and disposal groups classified as held for sale (see Note 29) 35,058 178,677 79 40,814 — — (155,726) (660) 98,242 Balance at December 31, 2017 251,298 1,490,804 8,533 128,584 60,359 32,364 (936,325) (117,643) 917,974 Additions 2,983 9,104 12 99,016 — 4,293 (109,832) (42,846) (37,270) Disposals and other (4,687) (34,612) (1,084) (2,657) — (587) 35,921 — (7,706) Transfers from/(to) other accounts 24,823 69,439 4,850 (97,086) — 222 (2,248) — — Exchange differences (10,743) (74,554) (405) (5,941) (951) (383) 48,455 3,292 (41,230) Business combinations (Note 5) 6,846 53,337 82 1,790 — 432 — — 62,487 Business disposals (35,211) (26,471) (43) (342) — — 56,674 — (5,393) Balance at December 31, 2018 235,309 1,487,047 11,945 123,364 59,408 36,341 (907,355) (157,197) 888,862 |
Summary of finance leases held by the Company included in Plant and Machinery | Lease Time Historical Accumulated Carrying Interest Payments Life Elapsed Cost Cost Depreciation Amount Payable Outstanding (Years) (Years) EUR €'000 US $'000 US $'000 US $'000 US $'000 US $'000 December 31, 2018 Hydroelectrical installations 10 6.6 109,047 124,859 (82,940) 41,918 — 65,005 December 31, 2017 Hydroelectrical installations 10 5.6 109,047 130,780 (84,000) 46,780 — 80,639 |
Financial assets and other re_2
Financial assets and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other financial assets | |
Schedule of classification financial assets | 2018 classification Note Amortised cost Fair value through profit or loss - mandatorily measured Fair value through other comprehensive income - designated Total US$'000 US$'000 US$'000 US$'000 Other financial assets 10.1 3,264 69,602 — 72,866 Receivables from related parties 23 16,514 — — 16,514 Trade receivables 10.2 70,755 — — 70,755 Other receivables 10.2 7,784 — — 7,784 Cash and cash equivalents 216,647 — — 216,647 Total financial assets 314,964 69,602 — 384,566 |
Schedule of other financial assets | At December 31, 2018, other financial assets comprise the following: 2018 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Other financial assets at amortised cost 3,264 — 3,264 Listed equity securities — 2,523 2,523 Debt investments at fair value through profit or loss 67,079 — 67,079 Total 70,343 2,523 72,866 Debt investments at fair value through profit or loss comprise an investment in subordinated loan notes issued by a special purpose entity that has purchased accounts receivable from the Company pursuant to a securitization program (see ‘Securitization of trade receivables’ below). The planned maturity of this amount is July 31, 2020 when the program term ends. At December 31, 2017, other financial assets comprise the following: 2017 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Loans and receivables 3,081 — 3,081 Other 86,234 2,469 88,703 Total 89,315 2,469 91,784 |
Schedule of main characteristics of senior subordinated and junior subordinated loans | The main characteristics of the senior subordinated and junior subordinated loans at December 31, 2018, are as follows: Amount Interest US$'000 Rate Currency Senior Subordinated Loan 59,474 U.S. Dollars Junior Subordinated Loan 277 U.S. Dollars |
Schedule of trade and other receivables | 2018 2017 US$'000 US$'000 Trade receivables 75,719 85,293 Less – allowance for doubtful debts (4,964) (17,346) 70,755 67,947 Tax receivables (1) 60,851 27,118 Government grant receivables 16,606 7,904 Other receivables 7,784 8,494 Total 155,996 111,463 “Tax receivables” is primarily related to VAT receivables, which are recovered either by offsetting against VAT payables or are expected to be refunded by the tax authorities in the relevant jurisdictions. |
Schedule of changes in impairment losses | Allowance US$'000 Balance at January 1, 2017 14,671 Impairment losses recognized 1,784 Amounts written off as uncollectible (643) Exchange differences 1,534 Balance at December 31, 2017 17,346 Impairment losses recognized 3,190 Amounts written off as uncollectible (15,118) Exchange differences (454) Balance at December 31, 2018 4,964 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories. | |
Schedule of Inventory | 2018 2017 US$'000 US$'000 Finished goods 197,982 158,431 Raw materials in progress and industrial supplies 222,912 177,728 Other inventories 34,887 24,902 Advances to suppliers 1,189 170 Total 456,970 361,231 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other assets abstract | |
Schedule of other non current and current assets | 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Guarantees and deposits given 2,208 11 2,219 2,022 8 2,030 Prepayments and accrued income 16 3,672 3,688 — 2,977 2,977 Biological assets 7,790 — 7,790 27,279 — 27,279 Other assets 472 5,130 5,602 758 6,941 7,699 Total 10,486 8,813 19,299 30,059 9,926 39,985 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [abstract] | |
Summary of majority shareholders | Number of Shares Percentage of Name Beneficially Owned Outstanding Shares (*) Grupo Villar Mir, S.A.U. 91,125,521 % (*) 169,122,682 ordinary shares were outstanding at 31 December 2018, comprising 170,863,773 shares in issue less 1,174,091 shares held in treasury |
The disclosure of valuation adjustments. | Valuation adjustments comprise the following at December 31: 2018 2017 US$'000 US$'000 Actuarial gains and losses (390) (2,998) Hedging instruments and other (11,169) (13,801) Total (11,559) (16,799) |
Schedule of net financial debt | Management’s review of the Company’s capital structure includes monitoring of the leverage ratio, which was as follows at December 31: 2018 2017 2016 (***) US$'000 US$'000 US$'000 Gross financial debt (*) 645,389 571,337 514,587 Cash and cash equivalents (216,647) (184,472) (196,931) Total net financial debt 428,742 386,865 317,656 Total equity (**) 884,372 937,758 892,042 Total net financial debt / total equity 48.48 % 41.25 % 35.61 % (*) Gross financial debt comprises bank borrowings, obligations under finance leases, debt instruments and other financial liabilities. (**) (***) At December 31, 2016, net financial debt excludes gross financial debt of $86,959 thousand and cash and cash equivalents of $51 thousand related to the Spanish energy business as these balances were classified as held for sale as at that date (see Note 29). If these balances had been included, net financial debt would have been $404,564 thousand and the net financial debt / equity ratio would have been 45.4%. |
Summary of gross financial debt | The classification of the Company’s gross financial debt between non-current and current at December 31 is as follows: 2018 2017 2016 (*) Balance Balance Balance US$'000 % US$'000 % US$'000 % Non-current gross financial debt 560,738 86.88 % 458,056 80.17 % 269,325 52.34 % Current gross financial debt 84,651 13.12 % 113,281 19.83 % 245,262 47.66 % Total gross financial debt 645,389 100.00 % 571,337 100.00 % 514,587 100.00 % (*) At December 31, 2016, gross financial debt excluded $86,959 thousand related to the Spanish energy business, of which $76,452 thousand would have been presented as non-current and $10,507 thousand would have been presented as current had the business not been classified as held for sale (see Note 29). Had these balances been included, gross financial debt would have been $601,546 thousand. |
Schedule of changes in non-controlling interests | Balance US$'000 Balance at January 1, 2017 125,556 Loss for the year (5,144) Dividends paid to joint venture partner (7,350) Non-controlling interest arising on the acquisition of FerroSolar Opco Group S.L. 6,750 Translation differences and other 1,922 Balance at December 31, 2017 121,734 Loss for the year (19,088) Increase of Parent's ownership interest in FerroAtlántica de Venezuela S.A. 14,389 Translation differences and other (890) Balance at December 31, 2018 116,145 |
Summary of financial information for non-controlling interests | 2018 2017 WVA QSLP WVA QSLP US$'000 US$'000 US$'000 US$'000 Statement of Financial Position Non-current assets 84,864 62,725 88,532 68,521 Current assets 59,957 42,125 45,269 33,076 Non-current liabilities 14,677 15,406 14,678 14,213 Current liabilities 38,060 24,356 36,359 18,346 Income Statement Sales 168,041 108,764 161,014 97,697 Operating profit 6,319 2,284 5,947 467 Profit before taxes 6,319 979 5,947 122 Net (loss) income (6,458) 478 14,678 42 Cash Flow Statement Cash flows from operating activities 10,025 4,317 16,017 7,076 Cash flows from investing activities (3,830) (4,980) (2,193) (5,422) Cash flows from financing activities — — (15,000) (2) Exchange differences on cash and cash equivalents in foreign currencies — (32) — 68 Beginning balance of cash and cash equivalents 340 2,462 1,516 742 Ending balance of cash and cash equivalents 6,535 1,767 340 2,462 |
Earnings (loss) per ordinary _2
Earnings (loss) per ordinary share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Schedule of earnings (loss) per share calculation | 2018 2017 2016 Basic earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) 43,661 (678) (338,427) Denominator: Weighted average basic shares outstanding 171,406,272 171,949,128 171,838,153 Basic earnings (loss) per ordinary share (US$) 0.25 — (1.97) Diluted earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) 43,661 (678) (338,427) Denominator: Weighted average basic shares outstanding 171,406,272 171,949,128 171,838,153 Effect of dilutive securities 123,340 — — Weighted average dilutive shares outstanding 171,529,612 171,949,128 171,838,153 Diluted earnings (loss) per ordinary share (US$) 0.25 — (1.97) |
Provisions - (Tables)
Provisions - (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [line items] | |
Schedule showing breakdown of non-current and current provisions | 2018 2017 Non- Current Current Total Non- Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Provision for pensions 52,529 197 52,726 59,195 — 59,195 Environmental provision 2,880 331 3,211 3,121 346 3,467 Provisions for litigation — 2,399 2,399 — 11,732 11,732 Provisions for third-party liability 7,270 — 7,270 7,639 — 7,639 Provisions for C02 emissions allowances 2,859 25,111 27,970 — 7,281 7,281 Other provisions 10,249 12,532 22,781 12,442 13,736 26,178 Total 75,787 40,570 116,357 82,397 33,095 115,492 |
Schedule of changes in provisions | The changes in the various line items of provisions in 2018 and 2017 were as follows: Provisions for Provisions for Provisions for Provision for Environmental Litigation Third CO2 Emissions Other Pensions Provision in Progress Party Liability Allowances Provisions Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2017 60,876 3,083 — 5,835 5,512 26,278 101,584 Charges for the year 5,082 133 10,807 2,451 6,946 1,494 26,913 Provisions reversed with a credit to income (1,321) — (237) (181) — (545) (2,284) Amounts used (2,304) (93) — — (5,907) (2,911) (11,215) Provision against equity (4,511) — — — — — (4,511) Transfers from/(to) other accounts — — 931 (12) — (612) 307 Exchange differences and others 1,373 344 231 (454) 730 1,009 3,233 Transfer from liabilities associated with assets held for sale (see Note 29) — — — — — 1,465 1,465 Balance at December 31, 2017 59,195 3,467 11,732 7,639 7,281 26,178 115,492 Charges for the year 4,611 103 392 229 26,348 2,483 34,166 Provisions reversed with a credit to income (36) — — (9) — (1,524) (1,569) Amounts used (2,076) — (9,595) (239) (5,470) (3,039) (20,419) Provision against equity (3,568) — — — — — (3,568) Transfers from/(to) other accounts 277 — — — — — 277 Exchange differences and others (5,677) (359) (130) (350) (189) (2,035) (8,740) Additions from business combinations (see Note 5) — — — — — 735 735 Disposals from business divestitures — — — — — (17) (17) Balance at December 31, 2018 52,726 3,211 2,399 7,270 27,970 22,781 116,357 |
France | |
Disclosure of other provisions [line items] | |
Schedule showing changes in obligation | 2018 2017 US$'000 US$'000 Obligations at the beginning of year 29,768 29,733 Current service cost 1,678 1,834 Borrowing costs 470 383 Actuarial differences (700) (4,570) Benefits paid (1,818) (1,471) Exchange differences (1,349) 3,859 Obligations at the end of year 28,049 29,768 |
Schedule of estimated future benefit payments | The following table reflects the gross benefit payments that are expected to be paid for the benefit plans for the year ended December 31, 2018: 2018 US$'000 2019 1,597 2020 977 2021 1,179 2022 1,329 2023 2,007 Years 2024-2028 8,628 |
South Africa | |
Disclosure of other provisions [line items] | |
Schedule showing changes in obligation | In this regard, the changes of this provision in 2018 and 2017 were as follows: 2018 2017 US$'000 US$'000 Obligations at beginning of year 7,872 8,760 Current service cost 139 310 Borrowing costs 740 932 Actuarial differences (2,000) (2,226) Benefits paid (226) (740) Exchange differences (1,096) 836 Obligations at end of year 5,429 7,872 |
Schedule of breakdown in percentage of plan assets | The breakdown, in percentage, of the plan assets are as follows: 2018 2017 Cash 1.72 % 47.45 % Equity 47.42 % 24.79 % Bond 13.62 % 7.66 % Property 2.67 % 1.41 % International 30.27 % 15.74 % Others 4.30 % 2.95 % Total 100.00 % 100.00 % |
Schedule showing fair value rollforward of plan assets | Changes in the fair value of plan assets linked to the defined benefit plans in South Africa were as set forth in the following table: 2018 2017 US$'000 US$'000 Fair value of plan assets at the beginning of the year 2,248 3,532 Interest income on assets 216 255 Benefits paid (50) (2,609) Actuarial differences (228) 270 Other (280) 800 Fair value of plan assets at the end of the year 1,906 2,248 Actual return on assets (11) 525 |
Venezuela | |
Disclosure of other provisions [line items] | |
Schedule showing changes in obligation | In this regards, the changes of this provision in 2018 and 2017 were as follows: 2018 2017 US$'000 US$'000 Obligations at the beginning of year 1,883 2,955 Current service cost 775 158 Borrowing costs — 2,255 Benefits paid (35) (93) Exchange differences (2,089) (3,392) Obligations at the end of year 534 1,883 |
Summary of the main actuarial assumptions used to calculate obligations | The summary of the main actuarial assumptions used to calculate the aforementioned obligations is as follows: France South Africa Venezuela 2018 2017 2018 2017 2018 2017 Salary increase 1.60%-6.10% 1.60%-6.10% % 8.1 % % 207.25 % Discount rate 2% 2% % 10.3 % % 219.54 % Expected inflation rate 1.60% 1.60% % 7.10 % % 207 % Mortality TGH05/TGF05 TGH05/TGF05 SA 85-90 / PA (90) SA 85-90 / PA (90) UP94 UP94 Retirement age 65 65 63 63 63 |
North America | |
Disclosure of other provisions [line items] | |
Schedule showing changes in obligation | The changes to these obligations in the current year ended December 31, 2018 were as follows: 2018 USA Canada Pension Pension Post-retirement Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 Obligations at the beginning of year 38,195 24,788 8,837 71,820 Service cost 185 123 334 642 Borrowing cost 1,300 816 297 2,413 Actuarial differences (2,849) (416) (1,240) (4,505) Benefits paid (1,874) (978) (161) (3,013) Exchange differences — (1,940) (690) (2,630) Expenses (70) — — (70) Plan amendments 175 — — 175 Obligations at the end of year 35,062 22,393 7,377 64,832 |
Schedule of estimated future benefit payments | The following reflects the gross benefit payments that are expected to be paid in future years for the benefit plans for the year ended December 31: Non-pension Postretirement Pension Plans Plans US$'000 US$'000 2019 3,175 197 2020 3,205 197 2021 3,241 203 2022 3,247 203 2023 3,311 222 Years 2024-2028 17,178 1,393 |
Schedule of breakdown in percentage of plan assets | The breakdown as of December 31, 2018 and 2017 of the assets by class are: 2018 2017 Cash 1 % % Equity Mutual Funds 40 % 45 % Fixed Income Securities 59 % 51 % Real Estate Mutual Funds — % % Total 100 % 100 % |
Schedule showing fair value rollforward of plan assets | For the year ended December 31, 2018, the changes in plan assets were as follows: 2018 USA Canada Pension Pension Plans Plans Total US$'000 US$'000 US$'000 Fair value of plan assets at the beginning of the year Interest income on assets 1,110 643 1,753 Benefits paid (1,874) (978) (2,852) Actuarial return on plan assets (3,044) (1,154) (4,198) Other (23) (718) (741) Fair value of plan assets at the end of the year 29,038 17,076 46,114 |
Summary of the main actuarial assumptions used to calculate obligations | The assumptions used to determine benefit obligations at December 31, 2018 and 2017 for the North American plans are as follows: North America – 2018 North America – 2017 USA Canada USA Canada Pension Pension Postretirement Pension Pension Postretirement Plan Plan Plan Plan Plan Plan Salary increase N/A 2.75% - 3.00% N/A N/A 2.75% - 3.00% N/A Discount rate 4.00% 3.80% 3.90% 3.50% 3.60% 3.65% Expected inflation rate N/A N/A N/A N/A N/A N/A Mortality SOA RP-2014 Blue Collar Mortality CPM2014-Private CPM2014-Private SOA RP-2014 Total Dataset Mortality CPM2014-Private CPM2014-Private Retirement age 65 62 62 65 62 62 |
Schedule showing reconciliation of benefit obligations, plan assets and funded status | Benefit Obligations and Funded Status – The following provides a reconciliation of the benefit obligations, plan assets and funded status of the North American plans as of December 31, 2018 and 2017: 2018 2017 USA Canada USA Canada Post- Post- Pension Pension retirement Pension Pension retirement Plans Plans Plans Total Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Benefit obligation 35,062 22,393 7,377 64,832 38,195 24,788 8,837 71,820 Fair value of plan assets (29,038) (17,076) — (46,114) (32,869) (19,283) — (52,152) Provision for pensions 6,024 5,317 7,377 18,718 5,326 5,505 8,837 19,668 |
Bank borrowings - (Tables)
Bank borrowings - (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of non-current and current bank borrowings | 2018 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 250,000 132,821 493 133,314 Other loans — 7,698 7,698 Total 132,821 8,191 141,012 2017 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 200,000 — — — Other loans — 1,003 1,003 Total — 1,003 1,003 |
Disclosure of Credit facilities Table Text Block | 2018 2017 US$'000 US$'000 Secured loans carried at amortised cost Principal amount 135,919 — Unamortised issuance costs (3,098) — Accrued interest 493 — Total 133,314 — Amount due for settlement within 12 months 493 — Amount due for settlement after 12 months 132,821 — Total 133,314 — |
Schedule of non-current and current bank borrowings by currency | The breakdown by currency of bank borrowings at December 31, is as follows: 2018 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars 78,664 785 79,449 Borrowings in Euros 57,255 6,913 64,168 Total 135,919 7,698 143,617 2017 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars — 992 992 Borrowings in other currencies — 11 11 Total — 1,003 1,003 |
Schedule of non-current bank borrowings by maturity | 2018 2021 Total US$'000 US$'000 Credit facilities 132,821 132,821 Other loans — — Total 132,821 132,821 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of finance lease and operating lease by lessee [abstract] | |
Schedule of non-current and current obligations under finance leases | Obligations under finance leases comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Hydroelectrical installations (including power lines and concessions) 52,428 12,577 65,005 68,088 12,551 80,639 Other finance leases 1,044 422 1,466 1,625 369 1,994 Total 53,472 12,999 66,471 69,713 12,920 82,633 |
Schedule of non-current payment obligations under finance leases by maturity | The detail, by maturity, of the non-current payment obligations under finance leases as of December 31, 2018 is as follows: 2020 2021 2022 Total US$'000 US$'000 US$'000 US$'000 Hydroelectrical installations (including power lines and concessions) 13,199 13,849 25,380 52,428 Other finance leases 618 426 — 1,044 Total 13,817 14,275 25,380 53,472 |
Schedule of minimum lease payments under finance lease | Future net minimum lease payments under finance leases together with the future finance charges are as follows: Undiscounted minimum lease payments Present value of minimum lease payments 2018 2017 2018 2017 US$'000 US$'000 US$'000 US$'000 Within 1 year 13,362 13,281 12,999 12,920 Between 1 and 5 years 61,556 82,683 53,472 69,713 After 5 years — — — — Total minimum lease payments 74,918 95,964 66,471 82,633 Less: amounts representing finance lease charges 8,447 13,331 — — Present value of minimum lease payments 66,471 82,633 66,471 82,633 |
Schedule of minimum lease payments on operating leases by maturity | Expenses associated with operating leases are recorded in Other Operating Expenses in the consolidated income statement, and the minimum lease payments on operating leases at December 31, are as follows: 2018 2017 US$'000 US$'000 Within one year 9,684 12,105 Between one and five years 20,847 27,277 After five years 732 3,347 Total 31,263 42,729 |
Debt instruments (Tables)
Debt instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of debt instruments | Debt instruments comprise the following at December 31: 2018 2017 US$'000 US$'000 Unsecured notes carried at amortised cost Principal amount 350,000 350,000 Unamortised issuance costs (8,343) (10,668) Accrued coupon interest 10,937 10,938 Total 352,594 350,270 Amount due for settlement within 12 months 10,937 10,938 Amount due for settlement after 12 months 341,657 339,332 Total 352,594 350,270 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of financial liabilities [abstract] | |
Schedule of other financial liabilities | Other financial liabilities comprise the following at December 31: 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Financial loans from government agencies 9,325 52,524 61,849 10,971 88,420 99,391 Derivative financial instruments 23,463 — 23,463 38,040 — 38,040 Total 32,788 52,524 85,312 49,011 88,420 137,431 |
Schedule of Derivative financial instruments | 2018 2017 US$'000 US$'000 Derivatives designated as hedging instruments Cross currency swap 15,883 26,219 Derivatives not designated as hedging instruments Cross currency swap 4,501 7,429 Interest rate swaps 3,079 4,392 23,463 38,040 |
Schedule of interest rate swaps | The following interest rate swaps were outstanding at December 31: 2018 Nominal Fixed Reference Fair Amount Interest Floating Value US$'000 Maturity Rate Interest Rate US$'000 Lease of hydroelectrical installations 137,400 2.05 6-month Euribor (3,079) Total (3,079) 2017 Nominal Fixed Reference Fair Amount Interest Floating Value US$'000 Maturity Rate Interest Rate US$'000 Lease of hydroelectrical installations 143,916 2.05 6-month Euribor (4,392) Total (4,392) |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other payables. | |
Schedule of trade and other payables | Trade and other payables compose the following at December 31: 2018 2017 US$'000 US$'000 Payable to suppliers 241,936 172,566 Trade notes and bills payable 14,887 20,293 Total 256,823 192,859 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of other liabilities | 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Payable to non-current asset suppliers 99 11,648 11,747 — 5,411 5,411 Guarantees and deposits 16 — 16 32 2 34 Remuneration payable 55 45,705 45,760 — 46,667 46,667 Tax payables — 20,799 20,799 1,574 17,785 19,359 Contingent consideration 23,119 3,103 26,222 — — — Other liabilities 1,741 22,315 24,056 1,930 20,704 22,634 Total 25,030 103,570 128,600 3,536 90,569 94,105 |
Schedule of tax payables | 2018 2017 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 VAT — 6,491 6,491 — 1,784 1,784 Accrued social security taxes payable — 5,001 5,001 — 5,095 5,095 Personal income tax withholding payable — 1,436 1,436 — 1,049 1,049 Other — 7,871 7,871 1,574 9,857 11,431 Total — 20,799 20,799 1,574 17,785 19,359 |
Schedule of share based payment arrangements | Performance Period Fair Value at Grant Date (three years ended) Expiration Date Exercise Price Grant Date 2018 2017 June 14, 2018 N/A June 13, 2028 nil $ 9.34 129,930 — March 21, 2018 December 31, 2021 March 20, 2028 nil $ 22.56 287,080 — June 20, 2017 December 31, 2020 June 20, 2027 nil $ 15.90 17,342 17,342 June 1, 2017 N/A June 1, 2027 nil $ 10.96 19,463 19,463 June 1, 2017 December 31, 2020 June 1, 2027 nil $ 16.77 382,002 455,627 November 24, 2016 December 31, 2019 November 24, 2026 nil $ 16.66 189,225 264,933 1,025,042 757,365 |
Schedule of performance condition of share options granted | Vesting Conditions 30% total shareholder return (“TSR”) relative to a comparator group 30% TSR relative to S&P Global 1200 Metals and Mining Index 20% return on invested capital (“ROIC”) relative to a comparator group 20% net operating profit after tax (“NOPAT”) relative to a comparator group |
Schedule of assumptions used to estimate the fair value of Ferroglobe stock option | Grant date March 21, 2018 June 20, 2017 June 01, 2017 November 24, 2016 Fair value at grant date $ $ $ $ Grant date share price $ $ $ $ Exercise price Nil Nil Nil Nil Expected volatility % % % % Option life 3.00 years 3.00 years 3.00 years 3.00 years Dividend yield — % — % — % — % Risk-free interest rate % % % % Remaining performance period at grant date Company TSR at grant date 2.1 % (0.3) % 4.0 % 40.0 % Median comparator group TSR at grant date (6.2) % (7.2) % (3.7) % 56.4 % Median index TSR at grant date (8.4) % % % % |
Schedule of summary of options outstanding | Number of awards Outstanding as of December 31, 2016 264,933 Granted during the period 492,432 Exercised during the period — Expired/forfeited during the period — Outstanding as of December 31, 2017 757,365 Granted during the period 485,860 Exercised during the period — Expired/forfeited during the period (218,183) Outstanding as of December 31, 2018 1,025,042 Exercisable as of December 31, 2018 and December 31, 2017 — |
Globe Specialty Metals, Inc. | |
Schedule of summary of options outstanding | Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Term in Intrinsic Options Price Years Value Outstanding as of December 31, 2016 629,378 $ 14.59 1.75 580 Exercised during the period (34,990) 6.77 Expired/forfeited during the period (71,027) 14.54 Outstanding as of December 31, 2017 523,361 $ 15.12 0.89 $ 1,774 Exercised during the period (59,980) 5.89 Expired/forfeited during the period (167,990) 17.99 Cancelled in lieu of cash settlement (191,761) 12.54 Outstanding as of December 31, 2018 103,630 $ 19.40 0.44 $ — Exercisable as of December 31, 2018 103,630 $ 19.40 0.44 $ — |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tax matters | |
Schedule of income taxes | 2018 2017 2016 US$'000 US$'000 US$'000 Consolidated income statement Current income tax Current income tax charge/(credit) 22,795 30,491 (14,885) Adjustments in current income tax in respect of prior years (865) 753 1,220 Total 21,930 31,244 (13,665) Deferred tax Origination and reversal of temporary differences 2,500 (14,857) (33,030) Impact of tax rate changes 98 (31,688) — Adjustments in deferred tax in respect of prior years (293) 480 — Total 2,305 (46,065) (33,030) Income tax expense (benefit) 24,235 (14,821) (46,695) |
Schedule of statutory income tax rate | 2018 2017 2016 US$'000 US$'000 US$'000 Accounting profit/(loss) before income tax 48,808 (20,643) (405,308) At weighted effective tax rate of 36% (2017: 31% and 2016: 31%) 17,409 (6,399) (125,645) Non-taxable income/(expenses) (14,856) 96 — Non-deductible expenses 25,079 18,278 81,648 Movements in unprovided deferred tax 7,620 7,138 15,326 US Tax Reform - federal tax rate change — (31,257) — Differing territorial tax rates (2,262) 2 (22,949) Adjustments in respect of prior periods (1,038) 1,233 — Other items (4,936) (845) 890 Elimination of effect of interest in joint ventures 1,079 1,458 — Other permanent differences 1,242 (1,685) 5,196 Incentives and deductions (6,944) (3,188) (1,161) US State taxes 1,235 348 — Taxable capital gains 607 — — Income tax (expense)/benefit 24,235 (14,821) (46,695) |
Schedule of current tax assets and liabilities | 2018 2017 US$'000 US$'000 Current tax assets Income tax receivable 27,404 17,158 Current tax liabilities Income tax payable 2,335 7,419 Net tax assets 25,069 9,739 |
Schedule of changes in deferred tax assets and liabilities | Deferred tax assets and liabilities For the year ended December 31, 2018: Opening Prior Year Recognised in Recognised in Acquisitions/ Exchange Closing Balance Charge P&L Equity/ OCI Disposals Differences Balance US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Intangible assets (2,442) 1,787 236 — — — (419) Biological assets (5,521) — 2,233 — — 448 (2,840) Provisions 25,534 (3,388) (1,353) 93 210 (1,146) 19,950 Property, plant & equipment (79,758) (3,409) 3,562 — (1,682) 3,002 (78,285) Inventories (243) (3) (2,673) 256 42 (12) (2,633) Hedging Instruments 1,239 15 7 (197) — (54) 1,010 Tax losses, incentives & credits 20,723 343 (7,249) (489) 1,179 (877) 13,630 Partnership interest (13,373) (349) 1,197 — — — (12,525) Other (6,028) 4,514 770 — — 66 (678) Total (59,869) (490) (3,270) (337) (251) 1,427 (62,790) Presented in the statement of financial position as follows: 2018 2017 US$'000 US$'000 Deferred tax assets 14,589 5,273 Deferred tax liabilities 77,379 65,142 Net Total Deferred Tax Asset / (Liability) (62,790) (59,869) |
Schedule of unrecognised deductible temporary differences, unused tax losses and unused tax credits | 2018 2017 US$'000 US$'000 Unused tax losses 396,119 391,997 Unused tax credits 7,963 8,028 Unrecognised deductible temporary differences 79,377 65,638 Total 483,459 465,663 |
Related party transactions an_2
Related party transactions and balances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions and balances | |
Schedule of balances with related parties | Balances with related parties at December 31 are as follows: 2018 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 2,953 — 7 Grupo Villar Mir, S.A.U. — 79 — — Enérgya VM Generación, S.L — 11,154 — 70 Villar Mir Energía, S.L.U. 2,288 38 — 8,941 Espacio Information Technology, S.A.U. — — — 1,514 Blue Power Corporation, S.L. — — — 134 Other related parties — 2 — 462 Total 2,288 14,226 — 11,128 2017 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 3,033 — 4 Grupo Villar Mir, S.A.U. — 83 — — Enérgya VM Generación, S.L — 1,420 — 6 Villar Mir Energía, S.L.U. 2,398 35 — 12,065 Espacio Information Technology, S.A.U. — — — 861 Blue Power Corporation, S.L. — — — 29 Other related parties 2 1 — 8 Total 2,400 4,572 — 12,973 |
Schedule of transactions with related parties and other related parties | 2018 Sales and Other Finance Operating Operating Income Income Cost of Sales Staff costs Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 6 72 Villar Mir Energía, S.L.U. — 99,939 — 1,467 — Espacio Information Technology, S.A.U. — — — 4,226 — Enérgya VM Generación, S.L 43,772 — — 272 — Enérgya VM Gestión, S.L — 42 — 119 — Other related parties 20 — — 119 — Total 43,792 99,981 — 6,209 72 2017 Sales and Other Finance Operating Operating Income Income Cost of Sales Staff costs Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 2 70 Villar Mir Energía, S.L.U. — 94,049 — 3,362 — Espacio Information Technology, S.A.U. — — — 3,807 — Enérgya VM Generación, S.L 17,222 — — 226 — Enérgya VM Gestión, S.L — — — 22 — Other related parties — — — 1,440 154 Total 17,222 94,049 — 8,859 224 2016 Sales and Other Finance Operating Operating Income Income Cost of Sales Staff costs Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 2 74 Grupo Villar Mir, S.A.U. 403 — — — — Villar Mir Energía, S.L.U. 45 69,083 — 3,626 — Espacio Information Technology, S.A.U. — — — 4,049 — Enérgya VM Generación, S.L 20,553 — — 503 — Enérgya VM Gestión, S.L — 253 — — — Marco International Corporation 765 5,212 — — — Key management personnel (Note 26) — — 10,080 — — Other related parties — — — 92 — Total 21,766 74,548 10,080 8,272 74 |
Income and expenses (Tables)
Income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income and expenses | |
Sales by segment | 2018 2017 2016 US$'000 US$'000 US$'000 Electrometallurgy - North America 710,716 541,143 521,192 Electrometallurgy - Europe 1,447,973 1,083,200 949,547 Electrometallurgy - South Africa 208,543 122,504 142,160 Other segments 94,111 60,199 90,337 Eliminations (187,305) (65,353) (127,199) Total 2,274,038 1,741,693 1,576,037 |
Sales by geographical area | 2018 2017 2016 US$'000 US$'000 US$'000 Spain 274,769 Germany 359,737 Italy 138,796 Other EU Countries 487,340 USA 674,243 Rest of World 339,153 Total |
Schedule of staff costs | 2018 2017 2016 US$'000 US$'000 US$'000 Wages, salaries and similar expenses Pension plan contributions Employee benefit costs Total |
Schedule of depreciation and amortization charges, operating allowances and write-downs | 2018 2017 2016 US$'000 US$'000 US$'000 Amortization of intangible assets (Note 8) 9,312 8,440 12,649 Depreciation of property, plant and equipment (Note 9) 109,832 94,051 105,695 Other write-downs and reversals (7) 2,038 7,333 Total 119,137 104,529 125,677 |
Schedule of finance income | 2018 2017 2016 US$'000 US$'000 US$'000 Finance income of related parties (Note 23) 72 224 74 Other finance income 5,302 3,484 1,462 Total 5,374 3,708 1,536 |
Schedule of finance costs | 2018 2017 2016 US$'000 US$'000 US$'000 Interest on debt instruments 34,188 28,961 — Interest on loans and credit facilities 8,249 15,834 18,630 Interest on note and bill discounting 205 7,403 1,503 Interest on interest rate swaps 1,710 2,689 2,525 Interest on finance leases 2,974 2,917 3,186 Trade receivables securitization expense (Note 10) 12,097 7,256 — Other finance costs 2,599 352 4,407 Total 62,022 65,412 30,251 |
Schedule of changes in impairment losses | 2018 2017 2016 US$'000 US$'000 US$'000 Impairment of goodwill (Note 7) — 30,618 194,612 Impairment of intangible assets (Note 8) 16,073 443 230 Impairment of property, plant and equipment (Note 9) 42,846 (104) 67,624 Impairment of non-current financial assets (Note 10) — — 5,623 Impairment losses 58,919 30,957 268,089 (Increase) decrease in fair value of biological assets (Note 28) 7,615 (7,504) (1,891) Other (gain) loss 8 — — Net (gain) loss due to changes in the value of assets 7,623 (7,504) (1,891) |
Schedule of (loss) gain on disposal of non-current assets | 2018 2017 2016 US$'000 US$'000 US$'000 Loss on disposal of intangible assets — 503 — Gain on disposal of property, plant and equipment (2,950) (1,779) (468) Loss on disposal of property, plant and equipment 162 3,733 — (Gain) loss on disposal of other non-current assets (29) 1,859 128 Gain on disposal of subsidiary (11,747) — — Total (14,564) 4,316 (340) |
Remuneration of key managemen_2
Remuneration of key management personnel (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Remuneration of key management personnel | |
Schedule of remuneration of key management personal | 2018 2017 2016 US$'000 US$'000 US$'000 Fixed remuneration 6,068 5,625 5,611 Variable remuneration — 3,710 4,007 Contributions to pension plans and insurance policies 379 215 285 Share-based compensation 1,777 1,738 — Termination benefits 2,284 — 22,672 Other remuneration 23 17 177 Total 10,531 11,305 32,752 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial risk management | |
Schedule of interest bearing financial liabilities | At December 31, the Company’s interest-bearing financial liabilities were as follows: 2018 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 141,012 141,012 Obligations under finance leases — 66,471 66,471 Debt instruments 352,595 — 352,595 Other financial liabilities (*) 61,849 — 61,849 414,444 207,483 621,927 (*) 2017 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 1,003 1,003 Obligations under finance leases — 82,633 82,633 Debt instruments 350,270 — 350,270 Other financial liabilities (*) 86,238 13,153 99,391 436,508 96,789 533,297 (*) |
Schedule of undiscounted cash flow maturities | 2018 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 8,191 — 132,821 — 141,012 Finance leases 12,999 13,817 39,655 — 66,471 Debt instruments 32,813 32,813 399,219 — 464,845 Financial loans from government agencies 58,758 6,996 1,822 507 68,083 Derivative financial instruments (491) (939) 7,559 — 6,129 Payables to related parties 11,128 — — — 11,128 Payable to non-current asset suppliers 11,648 99 — — 11,747 Contingent consideration 3,103 6,193 18,530 12,758 40,584 Trade and other payables 256,823 — — — 256,823 394,972 58,979 599,606 13,265 1,066,822 2017 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 1,003 — — — 1,003 Finance leases 15,379 15,504 58,225 — 89,108 Debt instruments 32,813 32,813 432,031 — 497,656 Financial loans from government agencies 88,127 2,362 2,349 1,056 93,894 Derivative financial instruments 595 203 18,108 — 18,906 Payables to related parties 12,973 — — — 12,973 Payable to non-current asset suppliers 5,411 — — — 5,411 Trade and other payables 192,859 — — — 192,859 349,160 50,882 510,713 1,056 911,810 |
Schedule of gross inflows and outflows by instrument maturity | 2018 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Inflows 18,047 18,047 219,570 255,664 Outflows (17,556) (17,108) (227,129) (261,793) Net cash flow 491 939 (7,559) — (6,129) Discounted at the applicable interbank rates 82 52 (23,597) — (23,463) 2017 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Inflows 18,198 17,996 237,526 — 273,720 Outflows (18,793) (18,199) (255,634) — (292,626) Net cash flow (595) (203) (18,108) — (18,906) Discounted at the applicable interbank rates (995) (985) (36,060) — (38,040) |
Schedule of changes in liabilities arising from financing activities | January 1, Reclassification of business held for sale (*) Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Other changes December 31, 2017 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 1,003 — 140,781 (772) — — 141,012 Obligations under finance leases 82,633 — (12,948) (3,214) — — 66,471 Debt instruments 350,270 — — — — 2,324 352,594 Financial loans from government agencies (Note 19) 99,391 — (33,096) (4,446) — — 61,849 Derivative financial instruments (Note 19) 38,040 — — (1,677) (12,841) (59) 23,463 Total liabilities from financing activities 571,337 — 94,737 (10,109) (12,841) 2,265 645,389 Dividends paid (20,642) Proceeds from stock option exercises 240 Other amounts paid due to financing activities (932) Payments to acquire or redeem own shares (20,100) Net cash (used) by financing activities 53,303 January 1, Reclassification of business held for sale (*) Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Other changes December 31, 2017 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 421,291 — (426,641) 1,916 — 4,437 1,003 Obligations under finance leases 5,237 81,383 (14,610) 10,623 — — 82,633 Debt instruments — — 337,383 — — 12,887 350,270 Financial loans from government agencies (Note 19) 87,360 — — 12,031 — — 99,391 Derivative financial instruments (Note 19) 699 5,576 — 1,971 31,614 (1,820) 38,040 Total liabilities from financing activities 514,587 86,959 (103,868) 26,541 31,614 15,504 571,337 Proceeds from stock option exercises 180 Other amounts paid due to financing activities (9,709) Net cash (used) by financing activities (113,397) (*) |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of financial liabilities [abstract] | |
Schedule of assets and liabilities measured at fair value | December 31, 2018 Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) US$'000 US$'000 US$'000 US$'000 Other assets (Note 12): Biological assets 7,790 — — 7,790 Other financial assets (Note 10): Debt investments 67,079 — — 67,079 Listed equity securities 2,523 2,523 — — Other financial liabilities (Note 19): Derivative financial instruments - cross currency swap (20,384) — (20,384) — Derivative financial instruments - interest rate swaps (3,079) — (3,079) — Other liabilities (Note 21) Contingent consideration in a business combinations (26,222) — — (26,222) December 31, 2017 Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) US$'000 US$'000 US$'000 US$'000 Other assets (Note 12): Biological assets 27,279 — — 27,279 Other financial assets (Note 10): Other 82,638 — — 82,638 Other financial liabilities (Note 19): Derivative financial instruments - cross currency swap (33,648) — (33,648) — Derivative financial instruments - interest rate swaps (4,392) — (4,392) — |
Schedule of changes fair value of biological assets classified at level 3 in the hierarchy | Level 3 US$'000 January 1, 2017 17,365 Gain recognised in profit or loss (Note 25.5) 7,504 Translation differences 2,410 December 31, 2017 27,279 Loss recognised in profit or loss (Note 25.5) (7,615) Disposal of biological assets (12,168) Translation differences 294 December 31, 2018 7,790 |
Organization and Subsidiaries -
Organization and Subsidiaries - Percentage of ownership (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Alabama Sand and Gravel, Inc | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Alden Resources, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Alden Sales Corporation, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
ARL Resources, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
ARL Services, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Core Metals Group Holdings, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Core Metals Group, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Gatliff Services, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GBG Holdings, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GBG Holdings, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe Metallurgical Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe Metals Enterprises, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Alloys I, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Alloys II, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Enterprises Holdings, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Enterprises, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Sales, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
LF Resources, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Metallurgical Process Materials, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Norchem, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
QSIP Canada ULC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Quebec Silicon General Partner | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 51.00% |
Quebec Silicon LP | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 51.00% |
Tennessee Alloys Company, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
West Virginia Alloys, Inc. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
WVA Manufacturing, LLC | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 51.00% |
Cuarzos Industriales, S.A.U. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FerroAtlántica Canada Company Ltd | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlántica del Cinca, S.L. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 99.90% |
Ferroglobe Mangan Norge AS | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroglobe Manganese France SAS | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlántica, S.A.U. - Electrometallurgy | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FerroPem, S.A.S. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Grupo FerroAtlantica, S.A.U | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary - Direct | 100 |
Proportion of ownership interest in subsidiary | 100.00% |
Islenska Kisilfelagio EHF (Icelandic Silicon Corp.) | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 20.10% |
Kintuck (France) SAS | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Kintuck AS | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Rocas, Arcillas y Minerales, S.A. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 66.70% |
Rebone Mining (Pty.), Ltd. | Electrometallurgy - South Africa | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 74.00% |
Silicon Smelters (Pty.), Ltd. | Electrometallurgy - South Africa | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Silicon Technology (Pty.), Ltd. | Electrometallurgy - South Africa | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Thaba Chueu Mining (Pty.), Ltd. | Electrometallurgy - South Africa | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 74.00% |
16 Front Street, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Cuarzos Industriales de Venezuela (Cuarzoven), S.A. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica de Venezuela (FerroVen), S.A. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 99.90% |
Actifs Solaires Becancour, Inc | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Emix, S.A.S. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
ECPI, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica Brasil Mineracao Ltda. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 70.00% |
Ferroatlantica de Mexico, S.A. de C.V. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica Deutschland, GmbH | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica I+D, S.L.U. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FerroAtlantica India Private Limited | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica y Cia., F. de Ferroaleac. y Metales, S.C. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica, S.A.U. - Other segments - Energy | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FerroAtlantica International Ltd | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroglobe Services (UK) PLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary - Direct | 100 |
Proportion of ownership interest in subsidiary | 100.00% |
FerroManganese Mauritania SARL | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 90.00% |
Ferroquartz Company Ltd | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroquartz Holdings, Ltd (Hong Kong) | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FerroQuartz Mauritania SARL | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 90.00% |
FerroQuebec, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FerroTambao, SARL | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 90.00% |
Ferrosolar OPCO Group SL. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 75.00% |
Ferrosolar R&D SL. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 51.00% |
Ganzi Ferroatlantica Silicon Industry Company Ltd | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 75.00% |
GBG Financial LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe Argentina Holdco, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe BG, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe LSE, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe Metales S.R.L. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe Metallurgical Carbon, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe Specialty Metals, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary - Direct | 100 |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Financial, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
GSM Netherlands, BV | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Laurel Ford Resources, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
MST Financial Holdings, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
MST Financial, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
MST Resources, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ningxia Yonvey Coal Industrial Co., Ltd. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 98.00% |
Photosil Industries, SAS | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Silicio Ferrosolar, SLU | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Solsil, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 92.40% |
Ultra Core Polska (UCP) | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ultracore Energy SA | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Mangshi FerroAtlantica Mining Industry Service CompanyLtd | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
MangShi Sinice Silicon Industry Company Limited | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Basis of Presentation and Bas_2
Basis of Presentation and Basis of Consolidation (Details) - USD ($) $ in Thousands | Feb. 15, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretationsLineItems | ||||
Lease liabilities | $ 66,471 | $ 82,633 | ||
IFRS 16 | ||||
DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretationsLineItems | ||||
Lease liabilities | 28,250 | |||
Amount of expected decrease in other operating expenses | $ 9,684 | |||
Amount of expected increase in depreciation expense | 8,890 | |||
Amount of expected increase in finance costs | $ 1,215 | |||
Grupo Villar Mir, S.A.U. | ||||
DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretationsLineItems | ||||
Ownership interest as a percentage | 53.90% | |||
Senior Notes due 2022 | ||||
DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretationsLineItems | ||||
Principal amount | $ 350,000 | $ 350,000 | $ 350,000 | |
Fixed Interest Rate | 9.375% | |||
Redemption price of notes at change of control | 101.00% |
Accounting policies (Details)
Accounting policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Capitalised development expenditure | Maximum | |
Useful lives | |
Useful life | 10 years |
Capitalised development expenditure | Minimum | |
Useful lives | |
Useful life | 4 years |
Rights of use | Maximum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 20 years |
Rights of use | Minimum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 10 years |
Computer software | Maximum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 5 years |
Computer software | Minimum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 2 years |
Properties for own use | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 50 years |
Properties for own use | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 25 years |
Plant and machinery | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 20 years |
Plant and machinery | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 8 years |
Tools | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 15 years |
Tools | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 12 years 6 months |
Furniture and fixtures | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 15 years |
Furniture and fixtures | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 10 years |
Computer hardware | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 8 years |
Computer hardware | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 4 years |
Transport equipment | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 15 years |
Transport equipment | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 10 years |
Business Combinations - Total a
Business Combinations - Total acquisition consideration (Details) | 1 Months Ended | |
Feb. 28, 2018 | Dec. 23, 2015 | |
Globe Specialty Metals Inc | ||
Acquisition-date fair value of total consideration transferred [abstract] | ||
Percentage of equity interests acquired | 100.00% | |
Glencore | Major business combination | ||
Acquisition-date fair value of total consideration transferred [abstract] | ||
Period for marketing and procurement of manganese ores | 10 years |
Business Combinations - Kintuk
Business Combinations - Kintuk (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2018 |
Satisfied by: | |||
Gain on bargain purchase | $ 40,142 | ||
Kintuk | |||
Disclosure of detailed information about business combination [line items] | |||
Percentage of equity interests acquired | 100.00% | ||
IFRS Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract] | |||
Other intangible assets | $ 45 | ||
Property, plant and equipment | 62,487 | ||
Non-current financial assets | 50 | ||
Total non-current assets acquired | 62,582 | ||
IFRS Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets [Abstract] | |||
Inventories | 21,314 | ||
Trade and other receivables | 24,785 | ||
Other current assets | 1,397 | ||
Cash and cash equivalents | 29,530 | ||
Total current liabilities assumed | 77,026 | ||
Total assets acquired | 139,608 | ||
IFRS Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities [Abstract] | |||
Deferred tax liabilities | 90 | ||
Total non-current liabilities acquired | 90 | ||
IFRS Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities [Abstract] | |||
Trade and other payables | 18,048 | ||
Provisions | 735 | ||
Current income tax liabilities | 396 | ||
Other current liabilities | 4,066 | ||
Total current liabilities assumed | 23,245 | ||
Total liabilities assumed | 23,335 | ||
Net assets acquired | 116,273 | ||
Satisfied by: | |||
Cash | 49,909 | ||
Contingent consideration | 26,222 | ||
Acquisition Consideration | 76,131 | ||
Gain on bargain purchase | 40,142 | ||
Less: cash and cash equivalent balances acquired | (29,530) | ||
Net cash outflow arising on acquisition | $ 20,379 | ||
Fair value of trade receivables | $ 11,900 | 11,900 | |
Gain loss relating to acquired receivables | 0 | ||
Kintuk | Minimum | |||
Satisfied by: | |||
Contingent consideration arrangements | 0 | 0 | |
Kintuk | Maximum | |||
Satisfied by: | |||
Contingent consideration arrangements | 60,000 | 60,000 | |
Ferroglobe Mangan Norge And Ferroglobe Manganese France Member | |||
Satisfied by: | |||
Revenue of combined entity | 2,289,931 | ||
profit of combined entity | $ 45,007 | ||
Ferroglobe Mangan Norge And Ferroglobe Manganese France Member | Minimum | |||
Satisfied by: | |||
Discount rates | 11.00% | ||
Average simulated revenues | $ 269,256 | ||
Revenue of acquiree | 112,445 | ||
Loss of acquiree | 10,148 | ||
Ferroglobe Mangan Norge And Ferroglobe Manganese France Member | Maximum | |||
Satisfied by: | |||
Contingent consideration arrangements | 60,000 | $ 60,000 | |
Period of contingent consideration applied to sales | 8 years 6 months | ||
Discount rates | 11.50% | ||
Average simulated revenues | $ 312,526 | ||
Revenue of acquiree | 117,852 | ||
Loss of acquiree | $ 10,436 |
Segment reporting - Consolidate
Segment reporting - Consolidated income statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Profit (loss) [abstract] | |||||
Sales | $ 2,274,038 | $ 1,741,693 | [1] | $ 1,576,037 | [1] |
Cost of sales | (1,447,354) | (1,043,395) | [1] | (1,043,412) | [1] |
Other operating income | 46,037 | 18,199 | [1] | 26,215 | [1] |
Staff costs | (341,064) | (301,963) | [1] | (296,399) | [1] |
Other operating expense | (283,930) | (239,926) | [1] | (243,946) | [1] |
Depreciation and amortization charges, operating allowances and write-downs | (119,137) | (104,529) | [1] | (125,677) | [1] |
Impairment losses | (58,919) | (30,957) | [1] | (268,089) | [1] |
Net gain due to changes in the value of assets | (7,623) | 7,504 | [1] | 1,891 | [1] |
(Loss) gain on disposal of non-current assets | 14,564 | (4,316) | [1] | 340 | [1] |
Other (loss) gain | 40,142 | (2,613) | [1] | (40) | [1] |
Operating profit (loss) | 116,754 | 39,697 | [1] | (373,080) | [1] |
Finance income | 5,374 | 3,708 | [1] | 1,536 | [1] |
Finance costs | (62,022) | (65,412) | [1] | (30,251) | [1] |
Financial derivative gain (loss) | 2,838 | (6,850) | [1] | ||
Exchange differences | (14,136) | 8,214 | [1] | (3,513) | [1] |
Profit (loss) before tax | 48,808 | (20,643) | [1] | (405,308) | [1] |
Income tax (expense) benefit | (24,235) | 14,821 | [1] | 46,695 | [1] |
Profit (loss) for the year | 24,573 | (5,822) | [1] | (358,613) | [1] |
Loss (profit) attributable to non-controlling interests | 19,088 | 5,144 | [1] | 20,186 | [1] |
Profit (loss) attributable to the Parent | 43,661 | (678) | [1] | (338,427) | [1] |
Eliminations | |||||
Profit (loss) [abstract] | |||||
Sales | (187,305) | (65,353) | (127,199) | ||
Cost of sales | 187,212 | 65,650 | 132,904 | ||
Other operating income | (19,002) | (15,670) | (8,190) | ||
Staff costs | (220) | 239 | |||
Other operating expense | 19,095 | 16,158 | 5,727 | ||
Depreciation and amortization charges, operating allowances and write-downs | 9 | (2,867) | |||
Impairment losses | (16) | (6,617) | |||
Net gain due to changes in the value of assets | 282 | (5) | |||
(Loss) gain on disposal of non-current assets | 57 | (127) | |||
Other (loss) gain | 13,616 | 35,129 | |||
Operating profit (loss) | 14,513 | 28,994 | |||
Finance income | (39,220) | (195,138) | (17,399) | ||
Finance costs | 39,220 | 35,108 | 9,205 | ||
Exchange differences | (66) | (57) | |||
Profit (loss) before tax | (145,583) | 20,743 | |||
Income tax (expense) benefit | (294) | 2,625 | |||
Profit (loss) for the year | (145,877) | 23,368 | |||
Loss (profit) attributable to non-controlling interests | (24) | 1,552 | |||
Profit (loss) attributable to the Parent | (145,901) | 24,920 | |||
Electrometallurgy - North America | |||||
Profit (loss) [abstract] | |||||
Sales | 710,716 | 541,143 | 521,192 | ||
Cost of sales | (394,044) | (303,096) | (325,254) | ||
Other operating income | 4,943 | 2,701 | 362 | ||
Staff costs | (115,555) | (90,802) | (82,032) | ||
Other operating expense | (77,670) | (68,537) | (64,606) | ||
Depreciation and amortization charges, operating allowances and write-downs | (69,009) | (66,789) | (73,530) | ||
Impairment losses | (30,618) | (193,000) | |||
(Loss) gain on disposal of non-current assets | (208) | (3,718) | |||
Operating profit (loss) | 59,173 | (19,716) | (216,868) | ||
Finance income | 804 | 448 | 1 | ||
Finance costs | (4,109) | (4,567) | (3,249) | ||
Exchange differences | (1,194) | (191) | (438) | ||
Profit (loss) before tax | 54,674 | (24,026) | (220,554) | ||
Income tax (expense) benefit | 4,949 | 29,386 | 9,982 | ||
Profit (loss) for the year | 59,623 | 5,360 | (210,572) | ||
Loss (profit) attributable to non-controlling interests | 4,785 | 4,734 | 6,044 | ||
Profit (loss) attributable to the Parent | 64,408 | 10,094 | (204,528) | ||
Electrometallurgy - Europe | |||||
Profit (loss) [abstract] | |||||
Sales | 1,447,973 | 1,083,200 | 949,547 | ||
Cost of sales | (1,059,474) | (690,589) | (672,026) | ||
Other operating income | 39,817 | 12,681 | 25,908 | ||
Staff costs | (177,047) | (147,595) | (132,440) | ||
Other operating expense | (146,143) | (107,130) | (118,269) | ||
Depreciation and amortization charges, operating allowances and write-downs | (34,974) | (27,404) | (31,730) | ||
Impairment losses | (1,077) | ||||
Net gain due to changes in the value of assets | (7) | ||||
(Loss) gain on disposal of non-current assets | (8,369) | 301 | |||
Other (loss) gain | 40,142 | (13,604) | (32,655) | ||
Operating profit (loss) | 101,918 | 109,860 | (12,742) | ||
Finance income | 11,035 | 6,733 | 11,551 | ||
Finance costs | (40,831) | (40,106) | (16,540) | ||
Exchange differences | (10,561) | 5,938 | 2,436 | ||
Profit (loss) before tax | 61,561 | 82,425 | (15,295) | ||
Income tax (expense) benefit | (15,048) | (26,031) | (10,505) | ||
Profit (loss) for the year | 46,513 | 56,394 | (25,800) | ||
Loss (profit) attributable to non-controlling interests | (332) | (370) | (93) | ||
Profit (loss) attributable to the Parent | 46,181 | 56,024 | (25,893) | ||
Electrometallurgy - South Africa | |||||
Profit (loss) [abstract] | |||||
Sales | 208,543 | 122,504 | 142,160 | ||
Cost of sales | (137,177) | (81,744) | (99,124) | ||
Other operating income | 3,420 | 2,868 | 3,422 | ||
Staff costs | (23,735) | (23,495) | (23,589) | ||
Other operating expense | (26,353) | (24,462) | (28,834) | ||
Depreciation and amortization charges, operating allowances and write-downs | (5,526) | (5,788) | (4,732) | ||
Impairment losses | (8,147) | ||||
Net gain due to changes in the value of assets | (7,616) | 7,222 | 1,896 | ||
(Loss) gain on disposal of non-current assets | (261) | (138) | 21 | ||
Operating profit (loss) | 11,295 | (3,033) | (16,927) | ||
Finance income | 199 | 404 | 744 | ||
Finance costs | (5,298) | (7,361) | (6,038) | ||
Exchange differences | 2,284 | (1,197) | (2,164) | ||
Profit (loss) before tax | 8,480 | (11,187) | (24,385) | ||
Income tax (expense) benefit | (3,582) | 2,068 | 4,433 | ||
Profit (loss) for the year | 4,898 | (9,119) | (19,952) | ||
Loss (profit) attributable to non-controlling interests | 358 | (147) | 856 | ||
Profit (loss) attributable to the Parent | 5,256 | (9,266) | (19,096) | ||
Other segments | |||||
Profit (loss) [abstract] | |||||
Sales | 94,111 | 60,199 | 90,337 | ||
Cost of sales | (43,871) | (33,616) | (79,912) | ||
Other operating income | 16,859 | 15,619 | 4,713 | ||
Staff costs | (24,727) | (39,851) | (58,577) | ||
Other operating expense | (52,859) | (55,955) | (37,964) | ||
Depreciation and amortization charges, operating allowances and write-downs | (9,628) | (4,557) | (12,818) | ||
Impairment losses | (58,919) | (323) | (59,248) | ||
(Loss) gain on disposal of non-current assets | 23,402 | (818) | 446 | ||
Other (loss) gain | (2,625) | (2,514) | |||
Operating profit (loss) | (55,632) | (61,927) | (155,537) | ||
Finance income | 32,556 | 191,261 | 6,639 | ||
Finance costs | (51,004) | (48,486) | (13,629) | ||
Financial derivative gain (loss) | 2,838 | (6,850) | |||
Exchange differences | (4,665) | 3,730 | (3,290) | ||
Profit (loss) before tax | (75,907) | 77,728 | (165,817) | ||
Income tax (expense) benefit | (10,554) | 9,692 | 40,160 | ||
Profit (loss) for the year | (86,461) | 87,420 | (125,657) | ||
Loss (profit) attributable to non-controlling interests | 14,277 | 951 | 11,827 | ||
Profit (loss) attributable to the Parent | $ (72,184) | $ 88,371 | $ (113,830) | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Segment reporting - Consolida_2
Segment reporting - Consolidated statements of financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets [abstract] | ||||
Goodwill | $ 202,848 | $ 205,287 | $ 230,210 | |
Other intangible assets | 51,822 | 58,658 | 62,839 | |
Property, plant and equipment | 888,862 | 917,974 | 781,606 | |
Inventories | 456,970 | 361,231 | ||
Trade and other receivables | 172,510 | 118,435 | ||
Cash and cash equivalents | 216,647 | 184,472 | 196,931 | |
Other | 134,158 | 154,200 | ||
Total assets | 2,123,817 | 2,000,257 | ||
Equity and liabilities [abstract] | ||||
Equity | 884,372 | 937,758 | 892,042 | $ 1,294,973 |
Provisions | 116,357 | 115,492 | $ 101,584 | |
Bank borrowings | 141,012 | 1,003 | ||
Obligations under finance leases | 66,471 | 82,633 | ||
Debt instruments | 352,594 | 350,270 | ||
Other financial liabilities | 85,312 | 137,431 | ||
Trade and other payables | 267,951 | 205,832 | ||
Other | 209,748 | 169,838 | ||
Total equity and liabilities | 2,123,817 | 2,000,257 | ||
Eliminations | ||||
Assets [abstract] | ||||
Trade and other receivables | (1,254,935) | (1,175,756) | ||
Other | (45,212) | |||
Total assets | (1,254,935) | (1,220,968) | ||
Equity and liabilities [abstract] | ||||
Trade and other payables | (1,282,176) | (1,176,336) | ||
Other | 27,241 | (44,632) | ||
Total equity and liabilities | (1,254,935) | (1,220,968) | ||
Electrometallurgy - North America | ||||
Assets [abstract] | ||||
Goodwill | 202,848 | 205,287 | ||
Other intangible assets | 22,798 | 26,724 | ||
Property, plant and equipment | 467,616 | 512,003 | ||
Inventories | 113,673 | 100,856 | ||
Trade and other receivables | 267,974 | 165,006 | ||
Cash and cash equivalents | 76,791 | 10,886 | ||
Other | 15,341 | 36,554 | ||
Total assets | 1,167,041 | 1,057,316 | ||
Equity and liabilities [abstract] | ||||
Equity | 646,851 | 521,819 | ||
Provisions | 29,644 | 28,602 | ||
Obligations under finance leases | 1,466 | 1,994 | ||
Trade and other payables | 414,022 | 321,710 | ||
Other | 75,058 | 183,191 | ||
Total equity and liabilities | 1,167,041 | 1,057,316 | ||
Electrometallurgy - Europe | ||||
Assets [abstract] | ||||
Other intangible assets | 26,476 | 20,381 | ||
Property, plant and equipment | 219,520 | 167,314 | ||
Inventories | 288,669 | 204,240 | ||
Trade and other receivables | 274,291 | 260,612 | ||
Cash and cash equivalents | 110,523 | 153,967 | ||
Other | 85,905 | 92,322 | ||
Total assets | 1,005,384 | 898,836 | ||
Equity and liabilities [abstract] | ||||
Equity | 206,781 | 198,059 | ||
Provisions | 71,163 | 56,654 | ||
Bank borrowings | 6,914 | |||
Other financial liabilities | 3,841 | 4,918 | ||
Trade and other payables | 662,667 | 584,542 | ||
Other | 54,018 | 54,663 | ||
Total equity and liabilities | 1,005,384 | 898,836 | ||
Electrometallurgy - South Africa | ||||
Assets [abstract] | ||||
Other intangible assets | 1,292 | 1,505 | ||
Property, plant and equipment | 56,679 | 64,331 | ||
Inventories | 35,944 | 42,478 | ||
Trade and other receivables | 50,665 | 35,330 | ||
Cash and cash equivalents | 19,483 | 6,912 | ||
Other | 8,692 | 41,008 | ||
Total assets | 172,755 | 191,564 | ||
Equity and liabilities [abstract] | ||||
Equity | 58,294 | 62,933 | ||
Provisions | 7,889 | 11,080 | ||
Trade and other payables | 93,970 | 95,082 | ||
Other | 12,602 | 22,469 | ||
Total equity and liabilities | 172,755 | 191,564 | ||
Other segments | ||||
Assets [abstract] | ||||
Other intangible assets | 1,256 | 10,048 | ||
Property, plant and equipment | 145,047 | 174,326 | ||
Inventories | 18,684 | 13,657 | ||
Trade and other receivables | 834,515 | 833,243 | ||
Cash and cash equivalents | 9,850 | 12,707 | ||
Other | 24,220 | 29,528 | ||
Total assets | 1,033,572 | 1,073,509 | ||
Equity and liabilities [abstract] | ||||
Equity | (27,554) | 154,947 | ||
Provisions | 7,661 | 19,156 | ||
Bank borrowings | 134,098 | 1,003 | ||
Obligations under finance leases | 65,005 | 80,639 | ||
Debt instruments | 352,594 | 350,270 | ||
Other financial liabilities | 81,471 | 132,513 | ||
Trade and other payables | 379,468 | 380,834 | ||
Other | 40,829 | (45,853) | ||
Total equity and liabilities | $ 1,033,572 | $ 1,073,509 |
Segment reporting - Sales by pr
Segment reporting - Sales by product line (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of products and services [abstract] | |||||
Sales | $ 2,274,038 | $ 1,741,693 | [1] | $ 1,576,037 | [1] |
Silicon Metal Product Line [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | 933,366 | 739,618 | 751,508 | ||
Manganese Alloys Product Line [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | 527,757 | 363,644 | 223,451 | ||
Ferrosilicon Product Line [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | 359,374 | 266,862 | 242,788 | ||
Other Silicon Based Alloys Product Line [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | 215,697 | 188,183 | 173,901 | ||
Silica Fume Product Line [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | 37,061 | 36,338 | 37,480 | ||
Energy Product Line [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | 44,185 | 16,661 | 20,380 | ||
Other Product Lines [Member] | |||||
Disclosure of products and services [abstract] | |||||
Sales | $ 156,598 | $ 130,387 | $ 126,529 | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Segment reporting - Major custo
Segment reporting - Major customers (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($)customer | Dec. 31, 2016USD ($)customer | |||
Disclosure of major customers [abstract] | |||||
Sales | $ 2,274,038 | $ 1,741,693 | [1] | $ 1,576,037 | [1] |
Number of major customers | 0 | ||||
Top Ten Customers [Member] | |||||
Disclosure of major customers [abstract] | |||||
Sales | $ 758,894 | $ 820,897 | $ 656,907 | ||
Number of major customers | customer | 10 | 10 | 10 | ||
Dow Corning Corporation [Member] | |||||
Disclosure of major customers [abstract] | |||||
Percentage of Company's sales | 12.20% | 13.70% | |||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Goodwill - Changes in carrying
Goodwill - Changes in carrying amount and impairment testing (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at beginning of period | $ 205,287 | $ 230,210 | |
Impairment | (30,618) | $ (194,612) | |
Exchange differences | (2,439) | 5,695 | |
Goodwill at end of period | 202,848 | 205,287 | 230,210 |
Electrometallurgy - North America | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at beginning of period | 205,287 | ||
Goodwill at end of period | 202,848 | 205,287 | |
Electrometallurgy United States Segment | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | 172,900 | ||
Electrometallurgy Canada Segment | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | 29,900 | ||
Globe Specialty Metals Inc | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at beginning of period | 205,287 | 230,210 | |
Impairment | (30,618) | ||
Exchange differences | (2,439) | 5,695 | |
Goodwill at end of period | 202,848 | 205,287 | $ 230,210 |
Globe Specialty Metals Inc | Electrometallurgy United States Segment | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | 172,913 | ||
Globe Specialty Metals Inc | Electrometallurgy Canada Segment | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | $ 29,935 | ||
CANADA | Electrometallurgy - North America | |||
Reconciliation of changes in goodwill [abstract] | |||
Impairment | $ (30,618) |
Goodwill - Key assumptions used
Goodwill - Key assumptions used in the determination of recoverable value (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||
Period of projections | 5 years | |
Electrometallurgy United States Segment | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||
Weighted Average Cost of Capital | 11.00% | 10.50% |
Long-Term Growth Rate | 2.00% | 1.50% |
Normalized Tax Rate | 22.00% | 27.10% |
Normalized Cash Free Net Working Capital | 21.00% | 21.00% |
Electrometallurgy Canada Segment | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||
Weighted Average Cost of Capital | 10.50% | 10.50% |
Long-Term Growth Rate | 2.00% | 1.50% |
Normalized Tax Rate | 26.50% | 26.50% |
Normalized Cash Free Net Working Capital | 21.00% | 21.00% |
Goodwill - Sensitivity to chang
Goodwill - Sensitivity to changes in assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 23, 2015 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Goodwill | $ 205,287 | $ 230,210 | $ 202,848 | |
Impairment charge related to goodwill | 30,618 | 194,612 | ||
Electrometallurgy - North America | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Goodwill | 205,287 | 202,848 | ||
Electrometallurgy United States Segment | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Goodwill | 172,900 | |||
Excess of recoverable value over carrying value | 43,200 | |||
Electrometallurgy United States Segment | Sensitivity On Discount Rate, Decrease By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | 94,400 | |||
Electrometallurgy United States Segment | Sensitivity On Discount Rate, Increase By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | (73,700) | |||
Electrometallurgy United States Segment | Sensitivity On Long Term Growth Rate, Decrease By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | (11,000) | |||
Electrometallurgy United States Segment | Sensitivity On Long Term Growth Rate, Increase By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | 11,500 | |||
Electrometallurgy United States Segment | Sensitivity On Cash Flows, Decrease By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | (59,700) | |||
Electrometallurgy United States Segment | Sensitivity On Cash Flows, Increase By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | 59,700 | |||
Electrometallurgy Canada Segment | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Goodwill | 29,900 | |||
Excess of recoverable value over carrying value | 4,800 | |||
Electrometallurgy Canada Segment | Sensitivity On Discount Rate, Decrease By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | 17,700 | |||
Electrometallurgy Canada Segment | Sensitivity On Discount Rate, Increase By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | (13,800) | |||
Electrometallurgy Canada Segment | Sensitivity On Long Term Growth Rate, Decrease By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | (2,200) | |||
Electrometallurgy Canada Segment | Sensitivity On Long Term Growth Rate, Increase By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | 2,300 | |||
Electrometallurgy Canada Segment | Sensitivity On Cash Flows, Decrease By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | (12,100) | |||
Electrometallurgy Canada Segment | Sensitivity On Cash Flows, Increase By Ten Percent | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Increase (decrease) in value of cash generating units | 12,100 | |||
Globe Specialty Metals Inc | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Percentage of equity interests acquired | 100.00% | |||
Goodwill | 205,287 | $ 230,210 | 202,848 | |
Impairment charge related to goodwill | $ 30,618 | |||
Globe Specialty Metals Inc | Electrometallurgy United States Segment | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Goodwill | 172,913 | |||
Globe Specialty Metals Inc | Electrometallurgy Canada Segment | ||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | ||||
Goodwill | $ 29,935 |
Other intangible assets (Detail
Other intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | $ 58,658 | $ 62,839 | |
Additions | 1,992 | 5,904 | |
Disposals | (7,324) | (13,739) | |
Business combinations (Note 5) | 45 | ||
Exchange differences | (1,549) | 3,654 | |
Other intangible assets at end of the year | 51,822 | 58,658 | $ 62,839 |
Impairment of intangible assets | 16,073 | 443 | 230 |
Intangible assets pledged as security | 26,948 | ||
Accumulated depreciation and amortisation | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | (72,751) | (54,629) | |
Additions | (9,312) | (8,440) | |
Disposals | 565 | ||
Transfers from/(to) other accounts | 3,894 | ||
Exchange differences | 2,546 | (6,353) | |
Other intangible assets at end of the year | (79,517) | (72,751) | (54,629) |
Accumulated impairment | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | (10,258) | (8,666) | |
Additions | (16,073) | (443) | |
Exchange differences | 718 | (1,149) | |
Other intangible assets at end of the year | (25,613) | (10,258) | (8,666) |
Other segments | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | 10,048 | ||
Other intangible assets at end of the year | 1,256 | 10,048 | |
Other segments | Spain | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Impairment of intangible assets | 13,947 | ||
Capitalised development expenditure | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | 50,482 | 40,354 | |
Additions | 992 | 260 | |
Transfers from/(to) other accounts | 1,919 | (4,044) | |
Exchange differences | (2,408) | 5,824 | |
Other intangible assets at end of the year | 50,985 | 50,482 | 40,354 |
Power Supply Agreements | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | 37,836 | 37,836 | |
Other intangible assets at end of the year | 37,836 | 37,836 | 37,836 |
Rights of use | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | 23,039 | 20,345 | |
Additions | 55 | ||
Exchange differences | (648) | 2,639 | |
Other intangible assets at end of the year | 22,391 | 23,039 | 20,345 |
Computer software | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | 6,047 | 5,815 | |
Disposals | (64) | (10) | |
Business combinations (Note 5) | 45 | ||
Exchange differences | (101) | 242 | |
Other intangible assets at end of the year | 5,927 | 6,047 | 5,815 |
Other intangible assets | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Other intangible assets at beginning of the year | 24,263 | 21,784 | |
Additions | 26,385 | 14,472 | |
Disposals | (7,260) | (14,294) | |
Transfers from/(to) other accounts | (1,919) | 150 | |
Exchange differences | (1,656) | 2,451 | |
Other intangible assets at end of the year | $ 39,813 | $ 24,263 | $ 21,784 |
Property, plant and equipment -
Property, plant and equipment - Detail net of accumulated depreciation and impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | $ 917,974 | $ 781,606 |
Additions | (37,270) | (15,512) |
Disposals and other | (7,706) | (9,074) |
Exchange differences | (41,230) | 43,982 |
Business combinations | 62,487 | |
Business disposals | (5,393) | |
Additions to the scope of consolidation | 18,730 | |
Transfer from assets and disposal groups classified as held for sale | 98,242 | |
Property, plant and equipment at end of the year | 888,862 | 917,974 |
Gross carrying amount | Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 251,298 | 191,058 |
Additions | 2,983 | 1,665 |
Disposals and other | (4,687) | (202) |
Transfers from/(to) other accounts | 24,823 | 5,228 |
Exchange differences | (10,743) | 16,843 |
Business combinations | 6,846 | |
Business disposals | (35,211) | |
Additions to the scope of consolidation | 1,648 | |
Transfer from assets and disposal groups classified as held for sale | 35,058 | |
Property, plant and equipment at end of the year | 235,309 | 251,298 |
Gross carrying amount | Plant and Machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 1,490,804 | 1,220,055 |
Additions | 9,104 | 1,849 |
Disposals and other | (34,612) | (56,475) |
Transfers from/(to) other accounts | 69,439 | 49,892 |
Exchange differences | (74,554) | 96,709 |
Business combinations | 53,337 | |
Business disposals | (26,471) | |
Additions to the scope of consolidation | 97 | |
Transfer from assets and disposal groups classified as held for sale | 178,677 | |
Property, plant and equipment at end of the year | 1,487,047 | 1,490,804 |
Gross carrying amount | Other Fixtures, Tools and Furniture | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 8,533 | 5,972 |
Additions | 12 | 2,262 |
Disposals and other | (1,084) | (607) |
Transfers from/(to) other accounts | 4,850 | 377 |
Exchange differences | (405) | 450 |
Business combinations | 82 | |
Business disposals | (43) | |
Transfer from assets and disposal groups classified as held for sale | 79 | |
Property, plant and equipment at end of the year | 11,945 | 8,533 |
Gross carrying amount | Advances Property, Plant and Equipment in the Course of Construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 128,584 | 49,865 |
Additions | 99,016 | 71,204 |
Disposals and other | (2,657) | (1,029) |
Transfers from/(to) other accounts | (97,086) | (58,480) |
Exchange differences | (5,941) | 9,225 |
Business combinations | 1,790 | |
Business disposals | (342) | |
Additions to the scope of consolidation | 16,985 | |
Transfer from assets and disposal groups classified as held for sale | 40,814 | |
Property, plant and equipment at end of the year | 123,364 | 128,584 |
Gross carrying amount | Mineral Reserves | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 60,359 | 59,989 |
Transfers from/(to) other accounts | (90) | |
Exchange differences | (951) | 460 |
Property, plant and equipment at end of the year | 59,408 | 60,359 |
Gross carrying amount | Other Items of Property, Plant and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 32,364 | 32,203 |
Additions | 4,293 | 1,455 |
Disposals and other | (587) | (164) |
Transfers from/(to) other accounts | 222 | (58) |
Exchange differences | (383) | (1,072) |
Business combinations | 432 | |
Property, plant and equipment at end of the year | 36,341 | 32,364 |
Accumulated depreciation and amortisation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | (936,325) | (665,507) |
Additions | (109,832) | (94,051) |
Disposals and other | 35,921 | 49,403 |
Transfers from/(to) other accounts | (2,248) | 3,131 |
Exchange differences | 48,455 | (73,575) |
Business disposals | 56,674 | |
Transfer from assets and disposal groups classified as held for sale | (155,726) | |
Property, plant and equipment at end of the year | (907,355) | (936,325) |
Accumulated impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | (117,643) | (112,029) |
Additions | (42,846) | 104 |
Exchange differences | 3,292 | (5,058) |
Transfer from assets and disposal groups classified as held for sale | (660) | |
Property, plant and equipment at end of the year | $ (157,197) | $ (117,643) |
Property, plant and equipment_2
Property, plant and equipment - Impairment, disposals and pledged as security (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to goodwill | $ 30,618 | $ 194,612 | |
Impairment charge related to intangible assets | $ 16,073 | 443 | 230 |
Impairment charge related to Property, plant and equipment | 42,846 | (104) | $ 67,624 |
Property, plant and equipment pledged as security for outstanding bank loans and other payables | 514,625 | $ 660,960 | |
Other segments | Spain | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to intangible assets | 13,947 | ||
Impairment charge related to Property, plant and equipment | 40,537 | ||
Other segments | Spain | Land and buildings | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to Property, plant and equipment | $ 39,101 |
Property, plant and equipment_3
Property, plant and equipment - Finance leases (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of recognised finance lease as assets by lessee [abstract] | ||||
Interest Payable | $ 8,447 | $ 13,331 | ||
Lease Payments Outstanding | 74,918 | 95,964 | ||
Hydroelectrical Installations | ||||
Disclosure of recognised finance lease as assets by lessee [abstract] | ||||
Life | 10 years | 10 years | ||
Time Elapsed | 6 years 7 months 6 days | 5 years 7 months 6 days | ||
Finance leases | 41,918 | 46,780 | ||
Lease Payments Outstanding | 65,005 | 80,639 | ||
Hydroelectrical Installations | Gross carrying amount | ||||
Disclosure of recognised finance lease as assets by lessee [abstract] | ||||
Finance leases | € 109,047 | € 109,047 | 124,859 | 130,780 |
Hydroelectrical Installations | Accumulated depreciation and amortisation | ||||
Disclosure of recognised finance lease as assets by lessee [abstract] | ||||
Finance leases | $ (82,940) | $ (84,000) |
Property, plant and equipment_4
Property, plant and equipment - Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of joint ventures [abstract] | ||
Capital expenditure commitments | $ 26,935 | $ 4,598 |
Financial assets and other re_3
Financial assets and other receivables - Financial assets (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of financial assets [line items] | |
Total financial assets | $ 384,566 |
Other financial assets | |
Disclosure of financial assets [line items] | |
Total financial assets | 72,866 |
Receivables from related parties | |
Disclosure of financial assets [line items] | |
Total financial assets | 16,514 |
Trade receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 70,755 |
Other receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 7,784 |
Cash and cash equivalents | |
Disclosure of financial assets [line items] | |
Total financial assets | 216,647 |
Amortised cost | |
Disclosure of financial assets [line items] | |
Total financial assets | 314,964 |
Amortised cost | Other financial assets | |
Disclosure of financial assets [line items] | |
Total financial assets | 3,264 |
Amortised cost | Receivables from related parties | |
Disclosure of financial assets [line items] | |
Total financial assets | 16,514 |
Amortised cost | Trade receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 70,755 |
Amortised cost | Other receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 7,784 |
Amortised cost | Cash and cash equivalents | |
Disclosure of financial assets [line items] | |
Total financial assets | 216,647 |
Fair value through profit or loss - mandatorily measured | |
Disclosure of financial assets [line items] | |
Total financial assets | 69,602 |
Fair value through profit or loss - mandatorily measured | Other financial assets | |
Disclosure of financial assets [line items] | |
Total financial assets | $ 69,602 |
Financial assets and other re_4
Financial assets and other receivables - Other financial assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | $ 89,315 | $ 70,343 |
Other current financial assets held with third parties | 2,469 | 2,523 |
Other total financial assets held with third parties | 91,784 | 72,866 |
Impairment on non-recoverable loans and receivables | 4,462 | |
Investment in subordinated loan notes | 82,638 | |
Other financial assets | ||
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | 86,234 | |
Other current financial assets held with third parties | 2,469 | |
Other total financial assets held with third parties | 88,703 | |
Amortised cost | Other financial assets | ||
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | 3,264 | |
Other total financial assets held with third parties | 3,264 | |
Fair value through other comprehensive income - designated | Equity securities | ||
Disclosure of financial assets [line items] | ||
Other current financial assets held with third parties | 2,523 | |
Other total financial assets held with third parties | 2,523 | |
Fair value through profit or loss - mandatorily measured | Debt investments | ||
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | 67,079 | |
Other total financial assets held with third parties | $ 67,079 | |
Loans and receivables | ||
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | 3,081 | |
Other total financial assets held with third parties | $ 3,081 |
Financial assets and other re_5
Financial assets and other receivables - Trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other current receivables [abstract] | ||
Trade receivables | $ 75,719 | $ 85,293 |
Trade receivables, net | 70,755 | 67,947 |
Tax receivables (1) | 60,851 | 27,118 |
Government grant receivables | 16,606 | 7,904 |
Other receivables | 7,784 | 8,494 |
Trade and other receivables | 155,996 | 111,463 |
Accumulated impairment | ||
Trade and other current receivables [abstract] | ||
Less – allowance for doubtful debts | $ (4,964) | $ (17,346) |
Financial assets and other re_6
Financial assets and other receivables - Changes in impairment losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Financial assets at end of period | $ (384,566) | ||
Accumulated impairment | |||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Financial assets at beginning of period | 17,346 | $ 14,671 | |
Impairment losses recognized (Note 25.3) | (3,190) | 1,784 | $ 7,578 |
Amounts written off as uncollectible | 15,118 | (643) | |
Exchange differences | 454 | 1,534 | |
Financial assets at end of period | $ 4,964 | $ 17,346 | $ 14,671 |
Dow Corning Corporation [Member] | |||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
% of sales | 12.20% | 13.70% |
Financial assets and other re_7
Financial assets and other receivables - Government Grants (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other financial assets | ||
Income from government grants | $ 26,369 | $ 15,716 |
Expense related to government grants | 18,923 | 9,234 |
Net income (loss) related to government grants | 7,446 | $ 6,482 |
Carrying amount of factored receivables and the secured borrowings | $ 6,913 |
Financial assets and other re_8
Financial assets and other receivables - Securitization of trade receivables (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Securitization of trade receivables | |||
Interest earned on SPE loans | $ 3,403 | $ 1,313 | |
Fixed-rate servicing fees | 2,961 | 622 | |
Additional servicing fees earned | 11,174 | ||
Securitizations | |||
Securitization of trade receivables | |||
Upfront cash consideration | 227,360 | 166,525 | |
Term of the securitization program | 3 years | ||
Trade receivables sold under securitization program | 2,059,000 | 850,000 | |
Loss on transferral of trade receivables | (22,647) | (7,256) | |
Recognised assets representing continuing involvement in derecognised financial assets | 67,079 | ||
Maximum commitment by Finacity Capital Management | 3,000 | ||
Factoring of receivables | |||
Securitization of trade receivables | |||
Factored receivable | 6,102 | 3,801 | |
Senior Subordinated Loan | Securitizations | |||
Securitization of trade receivables | |||
Amount | $ 59,474 | ||
Interest Rate | 4.00% | ||
Junior Subordinated Loan | Securitizations | |||
Securitization of trade receivables | |||
Amount | $ 277 | ||
Interest Rate | 30.00% | ||
Maximum | Securitizations | |||
Securitization of trade receivables | |||
Upfront cash consideration | $ 303,000 | $ 248,000 |
Inventories - Schedule (Details
Inventories - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories. | ||
Finished goods | $ 197,982 | $ 158,431 |
Raw materials in progress and industrial supplies | 222,912 | 177,728 |
Other inventories | 34,887 | 24,902 |
Advances to suppliers | 1,189 | 170 |
Total inventories | $ 456,970 | $ 361,231 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Write-downs (reversals of write-downs) of inventories [abstract] | ||
Inventory write-down | $ 11,376 | $ 405 |
Purchase Commitments And Collateral [Abstract] | ||
Inventories secured | $ 314,067 |
Other assets - Non-current and
Other assets - Non-current and current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other assets abstract | ||
Guarantees and deposits given - Non-Current | $ 2,208 | $ 2,022 |
Guarantees and deposits given - Current | 11 | 8 |
Guarantees and deposits given - Total | 2,219 | 2,030 |
Prepayments and accrued income - Non-Current | 16 | |
Prepayments and accrued income - Current | 3,672 | 2,977 |
Prepayments and accrued income - Total | 3,688 | 2,977 |
Biological assets - Non-Current | 7,790 | 27,279 |
Biological assets - Total | 7,790 | 27,279 |
Other assets - Non-Current | 472 | 758 |
Other assets - Current | 5,130 | 6,941 |
Other assets - Total | 5,602 | 7,699 |
Non-Current | 10,486 | 30,059 |
Current | 8,813 | 9,926 |
Total | $ 19,299 | $ 39,985 |
Equity - Share capital (Details
Equity - Share capital (Details) € / shares in Units, $ / shares in Units, € in Thousands | Oct. 13, 2015EUR (€) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)Option$ / sharesshares | Dec. 31, 2016USD ($) | Jun. 22, 2016$ / shares | Jun. 21, 2016$ / shares | Dec. 31, 2015USD ($) | Dec. 23, 2015€ / sharesshares | Dec. 23, 2015$ / sharesshares | Oct. 14, 2015$ / shares | Oct. 13, 2015USD ($)$ / sharesshares | Feb. 05, 2015$ / sharesshares |
Disclosure of classes of share capital [line items] | ||||||||||||
Shares issued (in shares) | 40,000 | 139,000 | ||||||||||
Issue of equity | € 50,000 | $ 240,000 | $ 180,000 | |||||||||
Par value per share | $ / shares | $ 0.01 | $ 0.01 | $ 7.50 | |||||||||
Number of shares outstanding | 169,122,682 | |||||||||||
Number of shares outstanding, including treasury shares | 170,863,773 | 171,976,731 | ||||||||||
Treasury shares | $ | $ 1,174,091 | |||||||||||
Number of ordinary shares issued | 40,000 | 138,578 | ||||||||||
Number of shares issued at vesting of restricted stock units | 108,578 | |||||||||||
Number of share options exercised in share-based payment arrangement | Option | 30,000 | |||||||||||
Equity | $ | $ 884,372,000 | $ 937,758,000 | $ 892,042,000 | $ 1,294,973,000 | ||||||||
Globe Specialty Metals Inc | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Par value per share | $ / shares | $ 0.0001 | |||||||||||
Ordinary shares [member] | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Shares issued (in shares) | 1 | 1 | 14 | 1 | ||||||||
Par value per share | $ / shares | $ 7.50 | $ 7.50 | $ 1 | $ 1 | ||||||||
Shares consolidated | 15 | |||||||||||
New shares issued after consolidation | 2 | |||||||||||
Equity | $ | $ 15 | |||||||||||
Class A | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Shares issued (in shares) | 98,078,161 | 98,078,161 | ||||||||||
Par value per share | $ / shares | $ 0.01 | $ 7.50 | ||||||||||
Preference shares [member] | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Shares issued (in shares) | 50,000 | |||||||||||
Grupo Villar Mir SAU [Member] | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
The number of beneficially shares owned | 91,125,521 | |||||||||||
Outstanding shares owned by main shareholders (as a percentage) | 53.90% | |||||||||||
Grupo Villar Mir SAU [Member] | Grupo FerroAtlantica S.A.U. [Member] | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Par value per share | € / shares | € 1,000 |
Equity - Valuation adjustments
Equity - Valuation adjustments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [abstract] | ||
Actuarial gains and losses | $ (390) | $ (2,998) |
Hedging instruments and other | (11,169) | (13,801) |
Valuation adjustments | $ (11,559) | $ (16,799) |
Equity - Net financial debt (De
Equity - Net financial debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of classes of share capital [line items] | ||||
Consolidated equity | $ 884,372 | $ 937,758 | $ 892,042 | $ 1,294,973 |
Gross financial debt | 645,389 | 571,337 | 514,587 | |
Cash and cash equivalents | (216,647) | (184,472) | (196,931) | |
Net financial debt | $ 428,742 | $ 386,865 | 317,656 | |
Net financial debt, including discontinued operations | $ 404,564 | |||
Net financial debt/Consolidated equity | 48.48% | 41.25% | 35.61% | |
Net financial debt/Consolidated equity, including discontinued operations | 45.4 | |||
Spanish energy business classified as held for sale | ||||
Disclosure of classes of share capital [line items] | ||||
Gross financial debt | $ 86,959 | |||
Cash and cash equivalents | $ (51) |
Equity - Distribution of borrow
Equity - Distribution of borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [line items] | |||
Non-current gross financial debt | $ 560,738 | $ 458,056 | $ 269,325 |
Current gross financial debt | 84,651 | 113,281 | 245,262 |
Gross financial debt | $ 645,389 | $ 571,337 | $ 514,587 |
Non-current gross financial debt to total gross financial debt (as a percentage) | 86.88% | 80.17% | 52.34% |
Current gross financial debt to total gross financial debt (as a percentage) | 13.12% | 19.83% | 47.66% |
Gross financial debt (as a percentage) | 100.00% | 100.00% | 100.00% |
Gross financial debt, including discontinued operations | $ 601,546 | ||
Spanish energy business classified as held for sale | |||
Disclosure of classes of share capital [line items] | |||
Non-current gross financial debt | 76,452 | ||
Current gross financial debt | 10,507 | ||
Gross financial debt | $ 86,959 |
Equity - Share Repurchase Progr
Equity - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 07, 2018 | Aug. 03, 2018 | Dec. 31, 2018 |
Equity [abstract] | |||
Period of contract with brokers to purchase its ordinary shares | 5 years | ||
Maximum percentage of issued ordinary shared acquired by brokers | 10.00% | ||
Minimum share price | $ 0.01 | ||
Maximum price as percentage above average volume weighted average price | 5.00% | ||
Number of business days prior to purchase used to calculate average volume weighted average price | 5 days | ||
Authorised repurchase amount | $ 20,000 | ||
Number of shares acquired | 2,894,049 | ||
Total consideration | $ 20,100 | $ 20,100 | |
Stamp duty | $ 100 | ||
Average price paid per share | $ 6.89 | ||
Purchased and cancelled | 1,152,958 | ||
Ordinary shares purchased into treasury | 1,741,091 |
Equity - Dividends (Details)
Equity - Dividends (Details) $ / shares in Units, $ in Thousands | Sep. 20, 2018USD ($) | Aug. 20, 2018$ / shares | Jun. 29, 2018USD ($) | May 21, 2018$ / shares | Dec. 29, 2016USD ($)$ / shares | Sep. 28, 2016USD ($)$ / shares | Aug. 12, 2016USD ($)$ / shares | Mar. 14, 2016USD ($)$ / shares | Dec. 31, 2017$ / shares | Dec. 31, 2016payment |
Equity [abstract] | ||||||||||
Number of interim dividend payments | payment | 4 | |||||||||
Dividends paid, per share | $ / shares | $ 0.06 | $ 0.06 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0 | |||
Dividends paid, ordinary shares | $ | $ 10,321 | $ 10,321 | $ 13,747 | $ 13,747 | $ 13,747 | $ 13,747 |
Equity - Changes in non-control
Equity - Changes in non-controlling interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Equity at beginning of period | $ 937,758 | $ 892,042 | $ 1,294,973 | ||
Loss for the year | (19,088) | (5,144) | [1] | (20,186) | [1] |
Dividends paid to joint venture partner | (20,642) | (7,350) | |||
Non-controlling interest arising on the acquisition | 6,750 | ||||
Translation differences and other | (205) | 4,716 | |||
Equity at end of period | 884,372 | 937,758 | 892,042 | ||
Noncontrolling interests | |||||
Equity at beginning of period | 121,734 | 125,556 | 141,823 | ||
Loss for the year | (19,088) | (5,144) | |||
Dividends paid to joint venture partner | (7,350) | ||||
Non-controlling interest arising on the acquisition | 14,389 | 6,750 | |||
Increase of Parent's ownership interest | 14,389 | ||||
Translation differences and other | (890) | 1,922 | 3,919 | ||
Equity at end of period | $ 116,145 | $ 121,734 | $ 125,556 | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Equity - Non-controlling intere
Equity - Non-controlling interests financial information (Details) | Nov. 05, 2009USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
Non-current assets | $ 1,241,238,000 | $ 1,308,966,000 | |||||
Current assets | 882,579,000 | 691,291,000 | |||||
Non-current liabilities | 740,368,000 | 612,303,000 | |||||
Current liabilities | 499,077,000 | 450,196,000 | |||||
CONSOLIDATED INCOME STATEMENT | |||||||
Sales | 2,274,038,000 | 1,741,693,000 | [1] | $ 1,576,037,000 | [1] | ||
Operating profit | 116,754,000 | 39,697,000 | [1] | (373,080,000) | [1] | ||
Profit before taxes | 48,808,000 | (20,643,000) | [1] | (405,308,000) | [1] | ||
Net profit (loss) | 24,573,000 | (5,822,000) | [1] | (358,613,000) | [1] | ||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Cash flows from operating activities | 73,777,000 | 150,375,000 | 121,169,000 | ||||
Cash flows from investing activities | (85,875,000) | (74,818,000) | (84,281,000) | ||||
Cash flows from financing activities | 53,303,000 | (113,397,000) | 49,917,000 | ||||
Exchange differences on cash and cash equivalents in foreign currencies | (9,030,000) | 25,330,000 | (6,489,000) | ||||
Beginning balance of cash and cash equivalents | 184,472,000 | 196,982,000 | 116,666,000 | ||||
Ending balance of cash and cash equivalents | 216,647,000 | 184,472,000 | 196,982,000 | ||||
Non-controlling interests | 116,145,000 | 121,734,000 | |||||
WVA Manufacturing, LLC | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Additional cost per operating agreement | $ 100 | ||||||
WVA Manufacturing, LLC | Globe Specialty Metals Inc | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Non-controlling interests | 77,343,000 | 80,868,000 | |||||
Production output sold (as a percentage) | 51.00% | ||||||
WVA Manufacturing, LLC | Globe Specialty Metals Inc | Noncontrolling interests | |||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
Non-current assets | 84,864,000 | 88,532,000 | |||||
Current assets | 59,957,000 | 45,269,000 | |||||
Non-current liabilities | 14,677,000 | 14,678,000 | |||||
Current liabilities | 38,060,000 | 36,359,000 | |||||
CONSOLIDATED INCOME STATEMENT | |||||||
Sales | 168,041,000 | 161,014,000 | |||||
Operating profit | 6,319,000 | 5,947,000 | |||||
Profit before taxes | 6,319,000 | 5,947,000 | |||||
Net profit (loss) | (6,458,000) | 14,678,000 | |||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Cash flows from operating activities | 10,025,000 | 16,017,000 | |||||
Cash flows from investing activities | (3,830,000) | (2,193,000) | |||||
Cash flows from financing activities | (15,000,000) | ||||||
Beginning balance of cash and cash equivalents | 340,000 | 1,516,000 | |||||
Ending balance of cash and cash equivalents | 6,535,000 | 340,000 | 1,516,000 | ||||
WVA Manufacturing, LLC | Dow Corning Corporation [Member] | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Production output sold (as a percentage) | 49.00% | ||||||
WVA Manufacturing, LLC | Dow Corning Corporation [Member] | Globe Specialty Metals Inc | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Membership interest sold (as a percentage) | 49.00% | ||||||
Quebec Silicon Limited Partnership [Member] | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Additional cost per operating agreement | $ 31 | ||||||
Quebec Silicon Limited Partnership [Member] | Globe Specialty Metals Inc | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Non-controlling interests | $ 44,796,000 | 46,830,000 | |||||
Production output sold (as a percentage) | 51.00% | 51.00% | |||||
Quebec Silicon Limited Partnership [Member] | Globe Specialty Metals Inc | Noncontrolling interests | |||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
Non-current assets | $ 62,725,000 | 68,521,000 | |||||
Current assets | 42,125,000 | 33,076,000 | |||||
Non-current liabilities | 15,406,000 | 14,213,000 | |||||
Current liabilities | 24,356,000 | 18,346,000 | |||||
CONSOLIDATED INCOME STATEMENT | |||||||
Sales | 108,764,000 | 97,697,000 | |||||
Operating profit | 2,284,000 | 467,000 | |||||
Profit before taxes | 979,000 | 122,000 | |||||
Net profit (loss) | 478,000 | 42,000 | |||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Cash flows from operating activities | 4,317,000 | 7,076,000 | |||||
Cash flows from investing activities | (4,980,000) | (5,422,000) | |||||
Cash flows from financing activities | (2,000) | ||||||
Exchange differences on cash and cash equivalents in foreign currencies | (32,000) | 68,000 | |||||
Beginning balance of cash and cash equivalents | 2,462,000 | 742,000 | |||||
Ending balance of cash and cash equivalents | $ 1,767,000 | $ 2,462,000 | $ 742,000 | ||||
Quebec Silicon Limited Partnership [Member] | Dow Corning Corporation [Member] | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Production output sold (as a percentage) | 49.00% | 49.00% | |||||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Earnings (loss) per ordinary _3
Earnings (loss) per ordinary share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Numerator: | |||||
Profit (loss) attributable to the Parent (US$'000) | $ 43,661 | $ (678) | [1] | $ (338,427) | [1] |
Denominator: | |||||
Weighted average basic shares outstanding | 171,406,272 | 171,949,128 | [1] | 171,838,153 | [1] |
Basic earnings (loss) per ordinary share (US$) | $ 0.25 | $ 0 | [1] | $ (1.97) | [1] |
Numerator:. | |||||
Profit (loss) attributable to the Parent (US$'000) | $ 43,661 | $ (678) | [1] | $ (338,427) | [1] |
Denominator:. | |||||
Weighted average basic shares outstanding | 171,406,272 | 171,949,128 | [1] | 171,838,153 | [1] |
Effect of dilutive securities | 123,340 | 0 | 0 | ||
Weighted average dilutive shares outstanding | 171,529,612 | 171,949,128 | [1] | 171,838,153 | [1] |
Diluted earnings (loss) per ordinary share (US$) | $ 0.25 | $ 0 | [1] | $ (1.97) | [1] |
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Earnings (loss) per ordinary _4
Earnings (loss) per ordinary share - Antidilutive (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | |||
Potential ordinary shares excluded from calculation of diluted (loss) earnings per share because their effect would be anti-dilutive | 269,116 | 70,673 | 96,236 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other provisions [line items] | |||
Non-current provisions | $ 75,787 | $ 82,397 | |
Current provisions | 40,570 | 33,095 | |
Provisions | 116,357 | 115,492 | $ 101,584 |
Provisions For Pensions [Member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 52,529 | 59,195 | |
Current provisions | 197 | ||
Provisions | 52,726 | 59,195 | 60,876 |
Environment provision [member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 2,880 | 3,121 | |
Current provisions | 331 | 346 | |
Provisions | 3,211 | 3,467 | 3,083 |
Provisions for litigation [member] | |||
Disclosure of other provisions [line items] | |||
Current provisions | 2,399 | 11,732 | |
Provisions | 2,399 | 11,732 | |
Provisions for third-party liability [Member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 7,270 | 7,639 | |
Current provisions | 7,270 | 7,639 | |
Provisions | 7,270 | 7,639 | 5,835 |
Provisions for C02 emissions allowances [Member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 2,859 | ||
Current provisions | 25,111 | 7,281 | |
Provisions | 27,970 | 7,281 | 5,512 |
Other provisions [member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 10,249 | 12,442 | |
Current provisions | 12,532 | 13,736 | |
Provisions | 22,781 | 26,178 | $ 26,278 |
Environmental rehabilitation [member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 2,880 | 3,121 | |
Current provisions | 331 | 0 | |
Provisions for litigation - FerroPem France [member] | |||
Disclosure of other provisions [line items] | |||
Current provisions | 1,775 | 2,339 | |
Other provisions, provisions for taxes [member] | |||
Disclosure of other provisions [line items] | |||
Current provisions | 7,323 | 8,136 | |
Other provisions, other [member] | |||
Disclosure of other provisions [line items] | |||
Current provisions | $ 15,458 | $ 18,042 |
Provisions - Changes - (Details
Provisions - Changes - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | $ 115,492 | $ 101,584 |
Charges for the year | 34,166 | 26,913 |
Provisions reversed with a credit to income | (1,569) | (2,284) |
Incorporation to the scope of consolidation | 735 | |
Amounts used | (20,419) | (11,215) |
Provision against equity | (3,568) | (4,511) |
Transfers from/(to) other accounts | 277 | (307) |
Exchange differences and others | (8,740) | 3,233 |
Transfer from liabilities associated with assets held for sale | 1,465 | |
Additions from business combinations (see Note 5) | 735 | |
Disposals from business divestitures | (17) | |
Balance at end of period | 116,357 | 115,492 |
Provisions For Pensions [Member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 59,195 | 60,876 |
Charges for the year | 4,611 | 5,082 |
Provisions reversed with a credit to income | (36) | (1,321) |
Amounts used | (2,076) | (2,304) |
Provision against equity | (3,568) | (4,511) |
Transfers from/(to) other accounts | 277 | |
Exchange differences and others | (5,677) | 1,373 |
Balance at end of period | 52,726 | 59,195 |
Environment provision [member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 3,467 | 3,083 |
Charges for the year | 103 | 133 |
Amounts used | (93) | |
Exchange differences and others | (359) | 344 |
Balance at end of period | 3,211 | 3,467 |
Provisions for litigation [member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 11,732 | |
Charges for the year | 392 | 10,807 |
Provisions reversed with a credit to income | (237) | |
Amounts used | (9,595) | |
Transfers from/(to) other accounts | (931) | |
Exchange differences and others | (130) | 231 |
Balance at end of period | 2,399 | 11,732 |
Provisions for third-party liability [Member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 7,639 | 5,835 |
Charges for the year | 229 | 2,451 |
Provisions reversed with a credit to income | (9) | (181) |
Amounts used | (239) | |
Transfers from/(to) other accounts | 12 | |
Exchange differences and others | (350) | (454) |
Balance at end of period | 7,270 | 7,639 |
Provisions for C02 emissions allowances [Member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 7,281 | 5,512 |
Charges for the year | 26,348 | 6,946 |
Amounts used | (5,470) | (5,907) |
Exchange differences and others | (189) | 730 |
Balance at end of period | 27,970 | 7,281 |
Other provisions [member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 26,178 | 26,278 |
Charges for the year | 2,483 | 1,494 |
Provisions reversed with a credit to income | (1,524) | (545) |
Incorporation to the scope of consolidation | 735 | |
Amounts used | (3,039) | (2,911) |
Transfers from/(to) other accounts | 612 | |
Exchange differences and others | (2,035) | 1,009 |
Transfer from liabilities associated with assets held for sale | 1,465 | |
Additions from business combinations (see Note 5) | 735 | |
Disposals from business divestitures | (17) | |
Balance at end of period | $ 22,781 | $ 26,178 |
Provisions - Employee obligatio
Provisions - Employee obligations - France - (Details) - France $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Changes in net defined benefit liability (asset) [abstract] | ||
Percentage change in cost of provision | 1 | 1 |
Change in obligation | $ 3,664 | $ 3,970 |
Not later than one year | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 1,597 | |
Later than one year and not later than two years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 977 | |
Later than two years and not later than three years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 1,179 | |
Later than three years and not later than four years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 1,329 | |
Later than four years and not later than five years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 2,007 | |
Later than five years and not later than ten years [member] | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 8,628 | |
Ferro Pem S A S [Member] | Present value of defined benefit obligation [member] | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 29,768 | 29,733 |
Current service cost | 1,678 | 1,834 |
Borrowing costs | 470 | 383 |
Actuarial differences | (700) | (4,570) |
Benefits paid | (1,818) | (1,471) |
Exchange differences | (1,349) | 3,859 |
Obligations at end of year | $ 28,049 | $ 29,768 |
Provisions - Employee obligat_2
Provisions - Employee obligations - South Africa - (Details) - South Africa $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Changes in net defined benefit liability (asset) [abstract] | ||
Percentage change in cost of medical aid | 1 | 1 |
Change in provision due to reasonably possible change in the cost of medical aid | $ 216 | $ 297 |
Disclosure of fair value of plan assets [abstract] | ||
Cash | 1.72% | 47.45% |
Equity | 47.42% | 24.79% |
Bonds | 13.62% | 7.66% |
Property | 2.67% | 1.41% |
International | 30.27% | 15.74% |
Others | 4.30% | 2.95% |
Total | 100.00% | 100.00% |
Present value of defined benefit obligation [member] | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | $ 7,872 | $ 8,760 |
Current service cost | 139 | 310 |
Borrowing costs | 740 | 932 |
Actuarial differences | (2,000) | (2,226) |
Benefits paid | (226) | (740) |
Exchange differences | (1,096) | 836 |
Obligations at end of year | 5,429 | 7,872 |
Plan assets [member] | ||
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 2,248 | 3,532 |
Interest income on assets | 216 | 255 |
Benefits paid | (50) | (2,609) |
Actuarial differences | (228) | 270 |
Other | (280) | 800 |
Fair value of plan assets at the end of the year | 1,906 | 2,248 |
Actual return on assets | $ (11) | $ 525 |
Provisions - Employee obligat_3
Provisions - Employee obligations - Venezuela - (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)age | Dec. 31, 2017USD ($)age | |
Venezuela | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 400000.00% | 207.25% |
Discount rate | 520004.00% | 219.54% |
Expected inflation rate | 500000.00% | 207.00% |
Retirement age | age | 64 | 63 |
France | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 2.00% | 2.00% |
Expected inflation rate | 1.60% | 1.60% |
Retirement age | age | 65 | 65 |
France | Minimum | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 1.60% | 1.60% |
France | Maximum | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 6.10% | 6.10% |
South Africa | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 7.20% | 8.10% |
Discount rate | 9.90% | 10.30% |
Expected inflation rate | 6.20% | 7.10% |
Retirement age | age | 63 | 63 |
FerroAtlantica De Venezuela SA | Venezuela | ||
Disclosure of defined benefit plans [line items] | ||
Years of service | 15 years | |
Percentage of basic salary guaranteed by IVSS | 80 | |
Present value of defined benefit obligation [member] | South Africa | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | $ 7,872 | $ 8,760 |
Current service cost | 139 | 310 |
Borrowing costs | 740 | 932 |
Actuarial differences | 2,000 | 2,226 |
Benefits paid | 226 | 740 |
Exchange differences | (1,096) | 836 |
Obligations at end of year | 5,429 | 7,872 |
Present value of defined benefit obligation [member] | FerroAtlantica De Venezuela SA | Venezuela | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 1,883 | 2,955 |
Current service cost | 775 | 158 |
Borrowing costs | 2,255 | |
Benefits paid | (35) | (93) |
Exchange differences | (2,089) | (3,392) |
Obligations at end of year | $ 534 | $ 1,883 |
Provisions - Employee obligat_4
Provisions - Employee obligations - North America - Provisions- (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)ageplan | Dec. 31, 2017USD ($)age | |
Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | 1.00% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 1,535 | $ 1,862 |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | 1.00% |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ (1,194) | $ (1,442) |
North America | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 64,832 | 71,820 |
Fair value of plan assets | (46,114) | (52,152) |
Provision for pensions | 18,718 | 19,668 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discretionary contributions to the defined benefit pension and postretirement plans | 1,037 | |
North America | Pension Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 57,455 | 62,983 |
North America | Post Retirement Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 7,377 | 8,837 |
USA | Pension Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 35,062 | 38,195 |
Fair value of plan assets | (29,038) | (32,869) |
Provision for pensions | $ 6,024 | $ 5,326 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 4.00% | 3.50% |
Retirement age | age | 65 | 65 |
CANADA | Pension Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | $ 22,393 | $ 24,788 |
Fair value of plan assets | (17,076) | (19,283) |
Provision for pensions | $ 5,317 | $ 5,505 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 3.80% | 3.60% |
Retirement age | age | 62 | 62 |
CANADA | Post Retirement Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | $ 7,377 | $ 8,837 |
Provision for pensions | $ 7,377 | $ 8,837 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 3.90% | 3.65% |
Retirement age | age | 62 | 62 |
Minimum | CANADA | Pension Plans | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 2.75% | 2.75% |
Maximum | CANADA | Pension Plans | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 3.00% | 3.00% |
Not later than one year | Actuarial assumption of medical cost trend rates [member] | ||
Estimated Future Benefit Payments [Abstract] | ||
Health care cost trend rate | 5.30% | |
Not later than one year | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | $ 3,175 | |
Not later than one year | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 197 | |
Later than one year and not later than two years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,205 | |
Later than one year and not later than two years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 197 | |
Later than two years and not later than three years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,241 | |
Later than two years and not later than three years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 203 | |
Later than three years and not later than four years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,247 | |
Later than three years and not later than four years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 203 | |
Later than four years and not later than five years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,311 | |
Later than four years and not later than five years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 222 | |
Later than five years and not later than ten years [member] | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 17,178 | |
Later than five years and not later than ten years [member] | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | $ 1,393 | |
Later Than Sixteen Years And Not Later Than Seventeen Years [Member] | Actuarial assumption of medical cost trend rates [member] | ||
Estimated Future Benefit Payments [Abstract] | ||
Health care cost trend rate | 4.00% | |
Globe Metallurgical Inc [Member] | North America | Non Contributory Plans [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Number of defined benefit plans sponsored | plan | 3 |
Provisions - Employee obligat_5
Provisions - Employee obligations - North America plan assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
North America | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | $ 71,820 | |
Obligations at end of year | $ 64,832 | $ 71,820 |
Disclosure of fair value of plan assets [abstract] | ||
Cash | 1.00% | 2.00% |
Equity mutual funds | 40.00% | 45.00% |
Fixed income securities | 59.00% | 51.00% |
Real estate mutual funds | 2.00% | |
Total | 100.00% | 100.00% |
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | $ 52,152 | |
Fair value of plan assets at the end of the year | 46,114 | $ 52,152 |
North America | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 62,983 | |
Obligations at end of year | 57,455 | 62,983 |
North America | Post Retirement Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 8,837 | |
Obligations at end of year | 7,377 | 8,837 |
USA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 38,195 | |
Obligations at end of year | 35,062 | 38,195 |
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 32,869 | |
Fair value of plan assets at the end of the year | 29,038 | 32,869 |
CANADA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 24,788 | |
Obligations at end of year | 22,393 | 24,788 |
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 19,283 | |
Fair value of plan assets at the end of the year | 17,076 | 19,283 |
CANADA | Post Retirement Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 8,837 | |
Obligations at end of year | 7,377 | 8,837 |
Present value of defined benefit obligation [member] | North America | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 71,820 | |
Service cost | 642 | |
Borrowing costs | 2,413 | |
Actuarial differences | (4,505) | |
Benefits paid | (3,013) | |
Exchange differences | (2,630) | |
Plan amendments | 175 | |
Expenses | (70) | |
Obligations at end of year | 64,832 | 71,820 |
Present value of defined benefit obligation [member] | USA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 38,195 | |
Service cost | 185 | |
Borrowing costs | 1,300 | |
Actuarial differences | (2,849) | |
Benefits paid | (1,874) | |
Plan amendments | 175 | |
Expenses | (70) | |
Obligations at end of year | 35,062 | 38,195 |
Present value of defined benefit obligation [member] | CANADA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 24,788 | |
Service cost | 123 | |
Borrowing costs | 816 | |
Actuarial differences | (416) | |
Benefits paid | (978) | |
Exchange differences | (1,940) | |
Obligations at end of year | 22,393 | 24,788 |
Present value of defined benefit obligation [member] | CANADA | Post Retirement Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 8,837 | |
Service cost | 334 | |
Borrowing costs | 297 | |
Actuarial differences | (1,240) | |
Benefits paid | (161) | |
Exchange differences | (690) | |
Obligations at end of year | 7,377 | 8,837 |
Plan assets [member] | North America | ||
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 52,152 | |
Interest income on assets | 1,753 | |
Benefits paid | (2,852) | |
Actuarial return (loss) on plan assets | (4,198) | |
Other | (741) | |
Fair value of plan assets at the end of the year | 46,114 | 52,152 |
Plan assets [member] | USA | ||
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 32,869 | |
Interest income on assets | 1,110 | |
Benefits paid | (1,874) | |
Actuarial return (loss) on plan assets | (3,044) | |
Other | (23) | |
Fair value of plan assets at the end of the year | 29,038 | 32,869 |
Plan assets [member] | CANADA | ||
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 19,283 | |
Interest income on assets | 643 | |
Benefits paid | (978) | |
Actuarial return (loss) on plan assets | (1,154) | |
Other | (718) | |
Fair value of plan assets at the end of the year | $ 17,076 | $ 19,283 |
Provisions - Other Benefit Plan
Provisions - Other Benefit Plans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)plan | Dec. 31, 2017USD ($) | |
Other provisions [abstract] | ||
Provisions for litigation | $ 4,450 | $ 8,900 |
Litigation paid | $ 4,450 | |
Globe Metallurgical Inc [Member] | ||
Other Benefit Plans [Abstract] | ||
Company match percentage | 25 | |
Globe Metallurgical Inc [Member] | North America | ||
Other Benefit Plans [Abstract] | ||
Number of defined contribution plans provided | plan | 2 | |
Maximum | Globe Metallurgical Inc [Member] | ||
Other Benefit Plans [Abstract] | ||
Percentage of compensation | 6 | |
Asbestos-related claims | ||
Other provisions [abstract] | ||
Bond to guarantee civil financial responsibility | $ 1,775 |
Bank borrowings - (Details)
Bank borrowings - (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Feb. 22, 2019 | Feb. 28, 2018 | Dec. 31, 2017 | |
Borrowings [abstract] | ||||
Non-Current Amount | $ 132,821 | |||
Current Amount | 8,191 | $ 1,003 | ||
Principal amount | 135,919 | |||
Total | 141,012 | 1,003 | ||
Amount due for settlement after 12 months | 132,821 | |||
Credit facilities | ||||
Borrowings [abstract] | ||||
Principal amount | 250,000 | 200,000 | ||
Non-Current Amount | 132,821 | |||
Current Amount | 493 | |||
Principal amount | 135,919 | |||
Unamortised issuance costs | (3,098) | |||
Accrued interest | 493 | |||
Total | 133,314 | 0 | ||
Amount due for settlement within 12 months | 493 | |||
Amount due for settlement after 12 months | 132,821 | |||
Other | ||||
Borrowings [abstract] | ||||
Current Amount | 7,698 | 1,003 | ||
Total | $ 7,698 | $ 1,003 | ||
Revolving Credit Facility | ||||
Borrowings [abstract] | ||||
Principal amount | $ 200,000 | $ 250,000 |
Bank borrowings - Amended Revol
Bank borrowings - Amended Revolving Credit Facility - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowings [abstract] | |||
Borrowings | $ 141,012 | $ 1,003 | |
Repaid | $ 106,514 | $ 453,948 | $ 81,237 |
Minimum | |||
Borrowings [abstract] | |||
Applicable margin (as a percent) | 0.00% | ||
New Revolving Credit Facility | |||
Borrowings [abstract] | |||
Interest rate (as a percent) | 5.20% | ||
LIBOR | |||
Borrowings [abstract] | |||
Applicable margin (as a percent) | 1.00% | ||
Base rate | New Revolving Credit Facility | |||
Borrowings [abstract] | |||
Applicable margin (as a percent) | 2.25% | ||
Eurocurrency Rate Basis | New Revolving Credit Facility | |||
Borrowings [abstract] | |||
Applicable margin (as a percent) | 3.25% | ||
Fed Overnight Bank Funding Rate | |||
Borrowings [abstract] | |||
Applicable margin (as a percent) | 0.50% |
Bank borrowings - Borrowing det
Bank borrowings - Borrowing detail by currency - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Borrowings [abstract] | ||
Non-Current Principal Amount | $ 135,919 | |
Current Principal Amount | 7,698 | $ 1,003 |
Total | 143,617 | 1,003 |
US Dollars | ||
Borrowings [abstract] | ||
Non-Current Principal Amount | 78,664 | |
Current Principal Amount | 785 | 992 |
Total | 79,449 | 992 |
Euros | ||
Borrowings [abstract] | ||
Non-Current Principal Amount | 57,255 | |
Current Principal Amount | 6,913 | |
Total | $ 64,168 | |
Other | ||
Borrowings [abstract] | ||
Current Principal Amount | 11 | |
Total | $ 11 |
Bank borrowings - Borrowing d_2
Bank borrowings - Borrowing detail by maturity - (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Borrowings [abstract] | |
Non-Current Amount | $ 132,821 |
Credit facilities | |
Borrowings [abstract] | |
Non-Current Amount | $ 132,821 |
Leases (Details)
Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 25, 2012installment |
Lease liabilities [abstract] | |||
Non-current | $ 53,472 | $ 69,713 | |
Current | 12,999 | 12,920 | |
Total | 66,471 | 82,633 | |
Finance Leases [Abstract] | |||
Minimum finance lease payments payable | 74,918 | 95,964 | |
Future finance charge on finance lease | 8,447 | 13,331 | |
Minimum finance lease payments payable, at present value | 66,471 | 82,633 | |
Operating Leases [Abstract] | |||
Minimum Operating Lease Payments | 31,263 | 42,729 | |
Hydroelectrical installations (including power lines and concessions) | |||
Lease liabilities [abstract] | |||
Non-current | 52,428 | 68,088 | |
Current | 12,577 | 12,551 | |
Total | 65,005 | 80,639 | |
Number of loan installments | installment | 120 | ||
Hydroelectrical installations (including power lines and concessions) | EURIBOR | |||
Lease liabilities [abstract] | |||
Applicable margin (as a percent) | 3.50% | ||
Other finance leases | |||
Lease liabilities [abstract] | |||
Non-current | 1,044 | 1,625 | |
Current | 422 | 369 | |
Total | 1,466 | 1,994 | |
Not later than one year | |||
Finance Leases [Abstract] | |||
Minimum finance lease payments payable | 13,362 | 13,281 | |
Minimum finance lease payments payable, at present value | 12,999 | 12,920 | |
Operating Leases [Abstract] | |||
Minimum Operating Lease Payments | 9,684 | 12,105 | |
Later than one year and not later than two years | |||
Lease liabilities [abstract] | |||
Non-current | 13,817 | ||
Later than one year and not later than two years | Hydroelectrical installations (including power lines and concessions) | |||
Lease liabilities [abstract] | |||
Non-current | 13,199 | ||
Later than one year and not later than two years | Other finance leases | |||
Lease liabilities [abstract] | |||
Non-current | 618 | ||
Between one and five years | |||
Finance Leases [Abstract] | |||
Minimum finance lease payments payable | 61,556 | 82,683 | |
Minimum finance lease payments payable, at present value | 53,472 | 69,713 | |
Operating Leases [Abstract] | |||
Minimum Operating Lease Payments | 20,847 | 27,277 | |
Later than two years and not later than three years | |||
Lease liabilities [abstract] | |||
Non-current | 14,275 | ||
Later than two years and not later than three years | Hydroelectrical installations (including power lines and concessions) | |||
Lease liabilities [abstract] | |||
Non-current | 13,849 | ||
Later than two years and not later than three years | Other finance leases | |||
Lease liabilities [abstract] | |||
Non-current | 426 | ||
Later than three years and not later than four years | |||
Lease liabilities [abstract] | |||
Non-current | 25,380 | ||
Later than three years and not later than four years | Hydroelectrical installations (including power lines and concessions) | |||
Lease liabilities [abstract] | |||
Non-current | 25,380 | ||
Later than five years [member] | |||
Operating Leases [Abstract] | |||
Minimum Operating Lease Payments | $ 732 | $ 3,347 |
Debt instruments (Details)
Debt instruments (Details) - USD ($) $ in Thousands | Feb. 15, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instruments | |||
Amount due for settlement within 12 months | $ 10,937 | $ 10,938 | |
Amount due for settlement after 12 months | 341,657 | 339,332 | |
Total debt instruments | 352,594 | 350,270 | |
Senior Notes due 2022 | |||
Debt Instruments | |||
Principal amount | $ 350,000 | 350,000 | 350,000 |
Unamortised issuance costs | (8,343) | (10,668) | |
Accrued coupon interest | 10,937 | 10,938 | |
Issuance costs | $ 12,116 | ||
Amount due for settlement within 12 months | 10,937 | 10,938 | |
Amount due for settlement after 12 months | 341,657 | 339,332 | |
Total debt instruments | 352,594 | 350,270 | |
Fixed Interest Rate | 9.375% | ||
Redemption price of notes | 109.375% | ||
Redemption price of notes at change of control | 101.00% | ||
Fair value of notes payable | $ 288,022 | $ 378,000 | |
Senior Notes due 2022 issued by Ferroglobe PLC | |||
Debt Instruments | |||
Principal amount | $ 150,000 | ||
Senior Notes due 2022 issued by Globe Specialty Metals, Inc | |||
Debt Instruments | |||
Principal amount | $ 200,000 | ||
Maximum | Senior Notes due 2022 | |||
Debt Instruments | |||
Potential redemption of notes as a percentage of aggregate principal amount | 35.00% | ||
Grupo Villar Mir, S.A.U. | |||
Debt Instruments | |||
Ownership interest as a percentage | 53.90% |
Other financial Liabilities (De
Other financial Liabilities (Details) € in Thousands, $ in Thousands | Sep. 08, 2016EUR (€)installmentagreement | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) |
Categories of financial liabilities [abstract] | |||||
Non-Current | $ 32,788 | $ 49,011 | |||
Current | 52,524 | 88,420 | |||
Total | 85,312 | 137,431 | |||
Financial Loans With Governments Agencies [Member] | |||||
Categories of financial liabilities [abstract] | |||||
Non-Current | 9,325 | 10,971 | |||
Current | 52,524 | 88,420 | |||
Total | 61,849 | 99,391 | |||
Financial Loans With Governments Agencies [Abstract] | |||||
Interest rate (as a percent) | 2.29% | ||||
Amortized cost | € 44,706 | 51,189 | € 72,517 | 86,969 | |
Loan Number 1 [Member] | |||||
Financial Loans With Governments Agencies [Abstract] | |||||
Loans received | € | € 44,999 | ||||
Number of loan installments | installment | 7 | ||||
Borrowings Term | 10 years | ||||
Grace period at start of loan | 3 years | ||||
Loan Number 2 [Member] | |||||
Financial Loans With Governments Agencies [Abstract] | |||||
Loans received | € | € 26,909 | ||||
Derivatives [member] | |||||
Categories of financial liabilities [abstract] | |||||
Non-Current | 23,463 | 38,040 | |||
Total | $ 23,463 | $ 38,040 | |||
FerroAtlantica De Venezuela SA | Financial Loans With Governments Agencies [Member] | |||||
Financial Loans With Governments Agencies [Abstract] | |||||
Number of loan agreements | agreement | 2 |
Other financial Liabilities - D
Other financial Liabilities - Derivative financial instruments (Details) € in Thousands, $ in Thousands | May 12, 2017EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | May 12, 2017USD ($) | Feb. 15, 2017USD ($) |
Other financial liabilities | |||||||
Market value | $ 4,392 | $ 3,079 | |||||
Derivatives [member] | |||||||
Other financial liabilities | |||||||
Nominal Amount | 38,040 | 23,463 | |||||
Cross currency swap | |||||||
Other financial liabilities | |||||||
Nominal Amount | € 176,638 | 42,500 | $ 192,500 | ||||
Market value | 33,648 | 20,384 | |||||
Foreign Currency Swaps | |||||||
Interest receivable (as a percent) | 9.375% | ||||||
Fixed Interest Rate | 8.062% | 8.062% | |||||
Balance of CCS remained in the valuation adjustment reserve | 10,596 | 8,567 | |||||
Income (Expense) recorded in financial derivative loss | $ 2,838 | 6,850 | |||||
Cross currency swap | Exchange differences | |||||||
Foreign Currency Swaps | |||||||
Gain (loss) transferred from valuation adjustment reserve to income statement | 7,024 | (14,791) | |||||
Cross currency swap | Finance costs | |||||||
Foreign Currency Swaps | |||||||
Gain (loss) transferred from valuation adjustment reserve to income statement | 951 | 1,216 | |||||
Cash flow hedges [member] | Cross currency swap | |||||||
Foreign Currency Swaps | |||||||
Gain (loss) on ineffective hedge recognized in other comprehensive income | 10,006 | (24,171) | |||||
Gain (loss) on change in fair value of hedged item used as basis for recognising hedge ineffectiveness | $ 10,333 | ||||||
Derivatives designated as hedging instruments | Cross currency swap | |||||||
Other financial liabilities | |||||||
Nominal Amount | 26,219 | 15,883 | |||||
Derivatives designated as hedging instruments | Cash flow hedges [member] | Cross currency swap | |||||||
Other financial liabilities | |||||||
Nominal Amount | 150 | ||||||
Derivatives not designated as hedging instruments | Cross currency swap | |||||||
Other financial liabilities | |||||||
Nominal Amount | 7,429 | 4,501 | |||||
Derivatives not designated as hedging instruments | Interest rate swap contract [member] | |||||||
Other financial liabilities | |||||||
Nominal Amount | $ 4,392 | $ 3,079 | |||||
Senior Notes due 2022 issued by Ferroglobe PLC | |||||||
Other financial liabilities | |||||||
Nominal Amount | $ 150,000 | ||||||
Senior Notes due 2022 issued by Ferroglobe PLC | Cash flow hedges [member] | Cross currency swap | |||||||
Other financial liabilities | |||||||
Nominal Amount | € | € 150,000 |
Other financial Liabilities - I
Other financial Liabilities - Interest rate swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other financial liabilities | ||
Valuation adjustments reserve related to hedging relationship for which hedge accounting no longer applied | $ 2,602 | |
Market value | (3,079) | $ (4,392) |
Derivatives [member] | ||
Other financial liabilities | ||
Nominal Amount | 23,463 | 38,040 |
Later Than Six Years And Not Later Seven Years [Member] | Lease Of Hydroelectrical Installations [Member] | ||
Other financial liabilities | ||
Nominal Amount | $ 143,916 | |
Fixed Interest Rate | 2.05% | |
Reference Floating Interest Rate | 6-month Euribor | |
Market value | (3,079) | $ (4,392) |
Later Than Six Years And Not Later Seven Years [Member] | Lease Of Hydroelectrical Installations [Member] | Fixed rate | ||
Other financial liabilities | ||
Nominal Amount | $ 137,400 | |
Fixed Interest Rate | 2.05% | |
Reference Floating Interest Rate | 6-month Euribor |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other payables. | ||
Payable to suppliers | $ 241,936 | $ 172,566 |
Trade notes and bills payable | 14,887 | 20,293 |
Total | $ 256,823 | $ 192,859 |
Other liabilities - Other Curre
Other liabilities - Other Current and Non-current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other liabilities | ||
Payable to non-current asset suppliers - Non-Current | $ 99 | |
Payable to non-current asset suppliers - Current | 11,648 | $ 5,411 |
Payable to non-current asset suppliers | 11,747 | 5,411 |
Guarantees and deposits - non-current | 16 | 32 |
Guarantees and deposits - current | 2 | |
Guarantees and deposits | 16 | 34 |
Remuneration payable - Non- current | 55 | |
Remuneration payable - current | 45,705 | 46,667 |
Remuneration payable | 45,760 | 46,667 |
Tax payables - non-current | 1,574 | |
Tax payables - current | 20,799 | 17,785 |
Total tax payables | 20,799 | 19,359 |
Contingent consideration - non -current | 23,119 | |
Contingent consideration - current | 3,103 | |
Contingent consideration | 26,222 | |
Other liabilities - non-current | 1,741 | 1,930 |
Other liabilities - current | 22,315 | 20,704 |
Other liabilities | 24,056 | 22,634 |
Total other non current liabilities | 25,030 | 3,536 |
Total other current liabilities | 103,570 | 90,569 |
Total other liabilities | $ 128,600 | $ 94,105 |
Other liabilities - Tax Payable
Other liabilities - Tax Payables and Other Liabilities (Details) - USD ($) $ in Thousands | May 29, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Other liabilities | |||
VAT, current | $ 6,491 | $ 1,784 | |
VAT | 6,491 | 1,784 | |
Accrued social security taxes payable, current | 5,001 | 5,095 | |
Accrued social security taxes payable | 5,001 | 5,095 | |
Personal income tax withholding payable, current | 1,436 | 1,049 | |
Personal income tax withholding payable | 1,436 | 1,049 | |
Other tax payables, non current | 1,574 | ||
Other tax payables, current | 7,871 | 9,857 | |
Other tax payables | 7,871 | 11,431 | |
Total non-current tax payables | 1,574 | ||
Total current tax payables | 20,799 | 17,785 | |
Total tax payables | $ 20,799 | $ 19,359 | |
Term Of Service Condition | 3 years | 3 years |
Other liabilities - Stock Optio
Other liabilities - Stock Options (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)shares | Dec. 31, 2017OptionUSD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercised during the period | Option | 30,000 | |
Ferroglobe PLC Equity Incentive Plan [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding at beginning of the period | 757,365 | 264,933 |
Granted during the period | 485,860 | 492,432 |
Expired/forfeited during the period | shares | (218,183) | |
Outstanding at end of the period | 1,025,042 | 757,365 |
Other liabilities - Share-based
Other liabilities - Share-based payment arrangements (Details) | Jun. 14, 2018USD ($) | Mar. 21, 2018USD ($)Y | Jun. 20, 2017USD ($)Y | Jun. 01, 2017USD ($)Y | Nov. 24, 2016USD ($)Y | May 29, 2016 | Dec. 31, 2018USD ($)EquityInstrumentsYOptionshares | Dec. 31, 2017USD ($)EquityInstrumentsOptionshares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 1,025,042 | 757,365 | ||||||
Shares subject to performance conditions Outstanding | shares | 875,649 | 737,902 | ||||||
Service condition | 3 years | 3 years | ||||||
Share options exercised | Option | 30,000 | |||||||
Grant date of June 1, 2017 | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 19,463 | 19,463 | ||||||
Weighted average fair value of share options granted | $ 10.96 | |||||||
Employee stock option | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Weighted average fair value of share options granted | $ 18.62 | $ 16.51 | ||||||
Option life | Y | 6.18 | |||||||
Share based compensation expense | $ 2,798,000 | $ 2,405,000 | ||||||
Equity incentive plan | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Exercise price | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Grant date share price | 15.19 | 10.50 | 10.96 | 11.81 | ||||
Number of options with no performance obligations | 149,393 | 19,463 | ||||||
Percentage of total shareholder return (“TSR”) relative to a comparator group, vesting condition | 30.00% | |||||||
Percentage of TSR relative to S&P Global 1200 Metals and Mining Index, vesting condition | 30.00% | |||||||
Percentage of return on invested capital, vesting condition | 20.00% | |||||||
Percentage of net operating profit after tax, vesting condition | 20.00% | |||||||
Weighted average fair value of share options granted | $ 22.56 | $ 15.90 | $ 16.77 | $ 16.66 | ||||
Expected volatility | 49.86% | 43.15% | 43.09% | 44.83% | ||||
Option life | Y | 3 | 3 | 3 | 3 | ||||
Risk-free interest rate | 2.48% | 1.52% | 1.44% | 1.39% | ||||
Performance period remaining at grant date | 2 years 9 months 11 days | 2 years 6 months 11 days | 2 years 6 months 29 days | 2 years 1 month 6 days | 3 years | |||
Company TSR at grant date | 2.10% | (0.30%) | 4.00% | 40.00% | ||||
Median comparator group TSR at grant date | (6.20%) | (7.20%) | (3.70%) | 56.40% | ||||
Median index TSR at grant date | (8.40%) | 0.60% | 4.80% | 45.70% | ||||
Equity incentive plan | Grant date of June 14, 2018 | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 129,930 | |||||||
Exercise price | ||||||||
Weighted average fair value of share options granted | $ 9.34 | |||||||
Equity incentive plan | Grant date of March 21, 2018 | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 287,080 | |||||||
Exercise price | ||||||||
Weighted average fair value of share options granted | $ 22.56 | |||||||
Equity incentive plan | Grant date of June 1, 2017 | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 382,002 | 455,627 | ||||||
Exercise price | ||||||||
Weighted average fair value of share options granted | $ 16.77 | |||||||
Equity incentive plan | Grant date of June 20, 2017 | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 17,342 | 17,342 | ||||||
Exercise price | ||||||||
Weighted average fair value of share options granted | $ 15.90 | |||||||
Equity incentive plan | Grant date of November 24, 2016 | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Number of instruments granted | EquityInstruments | 189,225 | 264,933 | ||||||
Exercise price | ||||||||
Weighted average fair value of share options granted | $ 16.66 | |||||||
Minimum | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Options receivable by participant depending on financial performance of the Company, as a percent | 0.00% | |||||||
TSR correlation considered significant | 20.00% | |||||||
Maximum | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Options receivable by participant depending on financial performance of the Company, as a percent | 200.00% |
Other liabilities - Options und
Other liabilities - Options under Business Combination (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)EquityInstrumentsYshares | Dec. 31, 2017USD ($)EquityInstrumentsOptionYshares | Dec. 31, 2016USD ($)Y | Dec. 23, 2015shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares exchanged upon business combination | shares | 1 | |||
Share options exercised | Option | 30,000 | |||
Exercised during the period | Option | 30,000 | |||
Ferroglobe Stock Option Replacement Awards | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options exercised | EquityInstruments | 59,980 | |||
Outstanding at beginning of the period | EquityInstruments | 523,361 | 629,378 | ||
Exercised during the period | EquityInstruments | 59,980 | |||
Cancelled in lieu of cash settlement | shares | (191,761) | |||
Expired/forfeited during the period | shares | (71,027) | |||
Expired | EquityInstruments | (167,990) | (34,990) | ||
Outstanding at end of the period | EquityInstruments | 103,630 | 523,361 | ||
Exercisable | EquityInstruments | 103,630 | |||
Weighted average exercise price at the beginning of the period | $ 15.12 | $ 14.59 | ||
Weighted average exercise price, exercised | 5.89 | 6.77 | ||
Weighted average exercise price, expired/forfeited | 17.99 | 14.54 | ||
Weighted average exercise price of cancelled in lieu of cash settlement | 12.54 | |||
Weighted average exercise price at the end of the period | 19.40 | $ 15.12 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 19.40 | |||
Weighted average remaining contractual term, outstanding | Y | 0.44 | 0.89 | 1.75 | |
Weighted average remaining contractual term, exercisable | Y | 0.44 | |||
Aggregate intrinsic value of options outstanding | $ 1,774,000 | $ 580,000 | ||
Number of options vested | shares | 103,630 | 515,028 | ||
Number of options unvested | shares | 8,333 | |||
Share based compensation expense | $ 287,000 | $ 4,000 | ||
Payment settled for equity shares | $ 680,000 |
Other liabilities - RSU's and S
Other liabilities - RSU's and SAR's (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)EquityInstrumentsshares | Dec. 31, 2017USD ($)EquityInstrumentsOptionshares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share options exercised | Option | 30,000 | |
Restricted stock units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share options exercised | EquityInstruments | 7,031 | 371,570 |
Outstanding | 0 | 13,340 |
Share based compensation expense | $ 584,000 | $ 343,000 |
Share based compensation expense, after tax | 376,000 | 202,000 |
Liability from share based payments | $ 41,000 | 626,000 |
Vesting life | 3 years | |
Employee stock option | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share based compensation expense | $ 2,798,000 | $ 2,405,000 |
Stock appreciation rights | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding | EquityInstruments | 610,021 | 1,182,871 |
Share based compensation expense | $ 5,848,000 | $ 3,429,000 |
Share based compensation expense, after tax | 3,762,000 | 2,023,000 |
Liability from share based payments | $ 62,000 | 5,911,000 |
Non current liability from share based payments | $ 111,000 | |
Vesting percentage of share-based awards | 33.33% | |
Vesting life | 3 years | |
Exercised | EquityInstruments | 498,476 | 168,135 |
Cancelled | shares | 74,373 | 209,451 |
Tax matters - Components of cur
Tax matters - Components of current and deferred tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Tax matters | |||||
Current income tax charge/(credit) | $ 22,795 | $ 30,491 | $ (14,885) | ||
Adjustments in current income tax in respect of prior period years | (865) | 753 | 1,220 | ||
Total | 21,930 | 31,244 | (13,665) | ||
Origination and reversal of temporary differences | 2,500 | (14,857) | (33,030) | ||
Impact of tax rate changes | 98 | (31,688) | |||
Adjustments in deferred tax in respect of prior years | (293) | 480 | |||
Total | 2,305 | (46,065) | (33,030) | ||
Income tax expense (benefit) | $ 24,235 | $ (14,821) | [1] | $ (46,695) | [1] |
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Tax matters - Statutory tax rat
Tax matters - Statutory tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Tax matters | |||||
Accounting profit/(loss) before income tax | $ 48,808 | $ (20,643) | $ (405,308) | ||
Effective tax rate | 36.00% | 31.00% | 31.00% | ||
At weighted effective tax rate of 30% (2017: 31% and 2016: 31%) | $ 17,409 | $ (6,399) | $ (125,645) | ||
Non-taxable income/(expenses) | (14,856) | 96 | |||
Non-deductible expenses | 25,079 | 18,278 | 81,648 | ||
Movements in unprovided deferred tax | 7,620 | 7,138 | 15,326 | ||
US Tax Reform - federal tax rate change | (31,257) | ||||
Differing territorial tax rates | (2,262) | 2 | (22,949) | ||
Adjustments in respect of prior periods | (1,038) | 1,233 | |||
Other items | (4,936) | (845) | 890 | ||
Elimination of effect of interest in joint ventures | 1,079 | 1,458 | |||
Other permanent differences | 1,242 | (1,685) | 5,196 | ||
Incentives and deductions | (6,944) | (3,188) | (1,161) | ||
US State taxes | 1,235 | 348 | |||
Taxable capital gains | 607 | ||||
Income tax expense (benefit) | $ 24,235 | $ (14,821) | [1] | $ (46,695) | [1] |
Effective tax rate | 21.00% | 35.00% | |||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Tax matters - Tax Cuts and Jobs
Tax matters - Tax Cuts and Jobs Act (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tax matters | ||
Applicable tax rate | 21.00% | 35.00% |
Deferred tax credit | $ 31.2 | |
One off tax charge | $ 1.7 |
Tax Matters - Current Tax Asset
Tax Matters - Current Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current tax assets | ||
Income tax receivable | $ 27,404 | $ 17,158 |
Current tax liabilities | ||
Income tax payable | 2,335 | 7,419 |
Net tax assets | $ 25,069 | $ 9,739 |
Tax matters - Deferred tax asse
Tax matters - Deferred tax assets and liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Deferred tax assets and liabilities | |
Opening balance | $ 59,869 |
Prior Year Change | (490) |
Recognised in P&L | (3,270) |
Recognised in Equity/ OCI | (337) |
Acquisitions/ Disposals | (251) |
Exchange Differences | 1,427 |
Closing balance | 62,790 |
Intangible assets | |
Deferred tax assets and liabilities | |
Opening balance | 2,442 |
Prior Year Change | 1,787 |
Recognised in P&L | 236 |
Closing balance | 419 |
Biological assets | |
Deferred tax assets and liabilities | |
Opening balance | 5,521 |
Recognised in P&L | 2,233 |
Exchange Differences | 448 |
Closing balance | 2,840 |
Provisions | |
Deferred tax assets and liabilities | |
Opening balance | (25,534) |
Prior Year Change | (3,388) |
Recognised in P&L | (1,353) |
Recognised in Equity/ OCI | 93 |
Acquisitions/ Disposals | 210 |
Exchange Differences | (1,146) |
Closing balance | (19,950) |
Property, plant & equipment | |
Deferred tax assets and liabilities | |
Opening balance | 79,758 |
Prior Year Change | (3,409) |
Recognised in P&L | 3,562 |
Acquisitions/ Disposals | (1,682) |
Exchange Differences | 3,002 |
Closing balance | 78,285 |
Inventories | |
Deferred tax assets and liabilities | |
Opening balance | 243 |
Prior Year Change | (3) |
Recognised in P&L | (2,673) |
Recognised in Equity/ OCI | 256 |
Acquisitions/ Disposals | 42 |
Exchange Differences | (12) |
Closing balance | 2,633 |
Hedging instruments | |
Deferred tax assets and liabilities | |
Opening balance | (1,239) |
Prior Year Change | 15 |
Recognised in P&L | 7 |
Recognised in Equity/ OCI | (197) |
Exchange Differences | (54) |
Closing balance | (1,010) |
Tax losses, incentives & credits | |
Deferred tax assets and liabilities | |
Opening balance | (20,723) |
Prior Year Change | 343 |
Recognised in P&L | (7,249) |
Recognised in Equity/ OCI | (489) |
Acquisitions/ Disposals | 1,179 |
Exchange Differences | (877) |
Closing balance | (13,630) |
Partnership Interest [Member] | |
Deferred tax assets and liabilities | |
Opening balance | 13,373 |
Prior Year Change | (349) |
Recognised in P&L | 1,197 |
Closing balance | 12,525 |
Other | |
Deferred tax assets and liabilities | |
Opening balance | 6,028 |
Prior Year Change | 4,514 |
Recognised in P&L | 770 |
Exchange Differences | 66 |
Closing balance | $ 678 |
Tax matters - Significant compo
Tax matters - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 14,589 | $ 5,273 |
Deferred tax liabilities | 77,379 | 65,142 |
Net Total Deferred Tax Asset / (Liability) | (62,790) | (59,869) |
Total | $ 483,459 | 465,663 |
Number of years open to review | 4 years | |
Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total | $ 396,119 | 391,997 |
Unused tax credits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total | 7,963 | 8,028 |
Unrecognised deductible temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total | 79,377 | 65,638 |
Hedging instruments | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net Total Deferred Tax Asset / (Liability) | 1,010 | 1,239 |
Other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net Total Deferred Tax Asset / (Liability) | $ (678) | $ (6,028) |
Related party transactions an_3
Related party transactions and balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related party transactions and balances | |||
Non-current receivables due from related parties | $ 2,288 | $ 2,400 | |
Receivables, Non Current | 2,288 | 2,400 | |
Receivables, Current | 14,226 | 4,572 | |
Payables, Current | 11,128 | 12,973 | |
Sales and Operating Income | 43,792 | 17,222 | $ 21,766 |
Cost of Sales | 99,981 | 94,049 | 74,548 |
Staff costs | 10,080 | ||
Other Operating Expenses | 6,209 | 8,859 | 8,272 |
Finance Income | 72 | 224 | 74 |
Inmobiliaria Espacio, S.A. | |||
Related party transactions and balances | |||
Receivables, Current | 2,953 | 3,033 | |
Payables, Current | $ 7 | 4 | |
Short term loan maturity | P1Y | ||
Staff costs | |||
Other Operating Expenses | 6 | 2 | 2 |
Finance Income | 72 | 70 | 74 |
Grupo Villar Mir, S.A.U. | |||
Related party transactions and balances | |||
Receivables, Current | 79 | 83 | |
Sales and Operating Income | 403 | ||
Energya VM Generacion, S.L | |||
Related party transactions and balances | |||
Receivables, Current | 11,154 | 1,420 | |
Payables, Current | 70 | 6 | |
Sales and Operating Income | 43,772 | 17,222 | 20,553 |
Staff costs | |||
Other Operating Expenses | 272 | 226 | 503 |
Energya VM Generacion, S.L | Grupo FerroAtlantica, S.A.U | |||
Related party transactions and balances | |||
Sales and Operating Income | 31,898 | 9,803 | 15,398 |
Energya VM Generacion, S.L | Hidro-Nitro Espanola, S.A. - Other segments - Energy | |||
Related party transactions and balances | |||
Sales and Operating Income | 11,874 | 7,419 | 5,155 |
Energya VM Gestion, S.L | |||
Related party transactions and balances | |||
Cost of Sales | 42 | 253 | |
Staff costs | |||
Other Operating Expenses | 119 | 22 | |
Marco International | |||
Related party transactions and balances | |||
Sales and Operating Income | 765 | ||
Cost of Sales | 5,212 | ||
Villar Mir Energia, S.L.U. | |||
Related party transactions and balances | |||
Non-current receivables due from related parties | 2,288 | ||
Receivables, Non Current | 2,398 | ||
Receivables, Current | 38 | 35 | |
Payables, Current | 8,941 | 12,065 | |
Sales and Operating Income | 45 | ||
Cost of Sales | 99,939 | 94,049 | 69,083 |
Staff costs | |||
Other Operating Expenses | 1,467 | 3,362 | 3,626 |
Villar Mir Energia, S.L.U. | Grupo Ferroatlantica And Hidro Nitro Espanola [Member] | |||
Related party transactions and balances | |||
Obligation for purchase of energy plus service charge | 99,939 | 94,049 | 69,083 |
Espacio Information Technology, S.A.U. | |||
Related party transactions and balances | |||
Payables, Current | 1,514 | 861 | |
Staff costs | |||
Other Operating Expenses | 4,226 | 3,807 | 4,049 |
Blue Power Corporation, S.L. | |||
Related party transactions and balances | |||
Payables, Current | 134 | 29 | |
Other related parties | |||
Related party transactions and balances | |||
Receivables, Non Current | 2 | ||
Receivables, Current | 2 | 1 | |
Payables, Current | 462 | 8 | |
Sales and Operating Income | 20 | ||
Staff costs | |||
Other Operating Expenses | 119 | 1,440 | 92 |
Finance Income | 154 | ||
Key management personnel | |||
Related party transactions and balances | |||
Staff costs | $ 10,080 | ||
Aurinka And Blue Power Corporation, S.L. | Grupo FerroAtlantica, S.A.U | |||
Related party transactions and balances | |||
Purchase of property, plant and equipment | $ 4,252 | $ 3,611 |
Guarantee commitments to thir_2
Guarantee commitments to third parties and contingent liabilities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)itememployeecase | Dec. 31, 2017USD ($) | |
Guarantee commitments to third parties and other contingent assets and liabilities | ||
Bank guarantees commitments to third parties | $ | $ 14,427 | $ 18,943 |
Number of employees | employee | 93 | |
Number of case closed | case | 61 | |
Number of faute inexcusable | item | 13 | |
Statutory maximum penalty per day per violation of standard provisions | $ | $ 93,750 | |
Asbestos-related claims | ||
Guarantee commitments to third parties and other contingent assets and liabilities | ||
Number of claims pending | item | 32 | |
Number of grave cases | item | 3 | |
Bond to guarantee civil financial responsibility | $ | $ 1,775 |
Income and expenses - Sale by S
Income and expenses - Sale by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Sales by segment | |||||
Sales | $ 2,274,038 | $ 1,741,693 | [1] | $ 1,576,037 | [1] |
Eliminations | |||||
Sales by segment | |||||
Sales | (187,305) | (65,353) | (127,199) | ||
Electrometallurgy - North America | |||||
Sales by segment | |||||
Sales | 710,716 | 541,143 | 521,192 | ||
Electrometallurgy - North America | Operating segments | |||||
Sales by segment | |||||
Sales | 710,716 | 541,143 | 521,192 | ||
Electrometallurgy - Europe | |||||
Sales by segment | |||||
Sales | 1,447,973 | 1,083,200 | 949,547 | ||
Electrometallurgy - Europe | Operating segments | |||||
Sales by segment | |||||
Sales | 1,447,973 | 1,083,200 | 949,547 | ||
Electrometallurgy - South Africa | |||||
Sales by segment | |||||
Sales | 208,543 | 122,504 | 142,160 | ||
Electrometallurgy - South Africa | Operating segments | |||||
Sales by segment | |||||
Sales | 208,543 | 122,504 | 142,160 | ||
Other segments | |||||
Sales by segment | |||||
Sales | 94,111 | 60,199 | 90,337 | ||
Other segments | Operating segments | |||||
Sales by segment | |||||
Sales | $ 94,111 | $ 60,199 | $ 90,337 | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Income and expenses - Sale by G
Income and expenses - Sale by Geographical Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Sales by Geographical Area | |||||
Sales | $ 2,274,038 | $ 1,741,693 | [1] | $ 1,576,037 | [1] |
Spain | |||||
Sales by Geographical Area | |||||
Sales | 274,769 | 253,991 | 201,403 | ||
Germany | |||||
Sales by Geographical Area | |||||
Sales | 359,737 | 245,152 | 241,046 | ||
Italy | |||||
Sales by Geographical Area | |||||
Sales | 138,796 | 94,590 | 90,267 | ||
Other EU Countries | |||||
Sales by Geographical Area | |||||
Sales | 487,340 | 340,877 | 236,746 | ||
USA | |||||
Sales by Geographical Area | |||||
Sales | 674,243 | 547,309 | 563,619 | ||
Rest of World | |||||
Sales by Geographical Area | |||||
Sales | $ 339,153 | $ 259,774 | $ 242,956 | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Income and expenses - Staff Cos
Income and expenses - Staff Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Staff costs | |||||
Wages, salaries and similar expenses | $ 265,405 | $ 222,733 | $ 212,098 | ||
Pension plan contributions | 12,136 | 13,631 | 10,647 | ||
Employee benefit costs | 63,523 | 65,599 | 73,654 | ||
Staff costs | $ 341,064 | $ 301,963 | [1] | $ 296,399 | [1] |
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Income and expenses - Depreciat
Income and expenses - Depreciation and Amortization charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Depreciation and amortization charges, operating allowances and write-downs | |||||
Amortization of intangible assets (Note 8) | $ 9,312 | $ 8,440 | $ 12,649 | ||
Depreciation of property, plant and equipment (Note 9) | 109,832 | 94,051 | 105,695 | ||
Other write-downs and reversals | (7) | 2,038 | 7,333 | ||
Depreciation and amortization charges, operating allowances and write-downs | 119,137 | 104,529 | [1] | 125,677 | [1] |
Accumulated impairment | |||||
Depreciation and amortization charges, operating allowances and write-downs | |||||
Change in impairment losses on uncollectible trade receivables (Note 10) | $ (3,190) | $ 1,784 | $ 7,578 | ||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Income and expenses - Finance I
Income and expenses - Finance Income and Finance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Finance income | |||||
Finance income of related parties (Note 23) | $ 72 | $ 224 | $ 74 | ||
Other finance income | 5,302 | 3,484 | 1,462 | ||
Finance income | 5,374 | 3,708 | [1] | 1,536 | [1] |
Finance costs | |||||
Interest on debt instruments | 34,188 | 28,961 | |||
Interest on loans and credit facilities | 8,249 | 15,834 | 18,630 | ||
Interest on note and bill discounting | 205 | 7,403 | 1,503 | ||
Interest on interest rate swaps | 1,710 | 2,689 | 2,525 | ||
Interest on finance leases | 2,974 | 2,917 | 3,186 | ||
Trade receivables securitization expense (Note 10) | 12,097 | 7,256 | |||
Other finance costs | 2,599 | 352 | 4,407 | ||
Finance costs | $ 62,022 | $ 65,412 | [1] | $ 30,251 | [1] |
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Income and expenses - Impairmen
Income and expenses - Impairment Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Impairment losses | |||||
Impairment charge related to goodwill | $ 30,618 | $ 194,612 | |||
Impairment of intangible assets | $ 16,073 | 443 | 230 | ||
Impairment of property, plant and equipment | 42,846 | (104) | 67,624 | ||
Impairment of non-current financial assets | 5,623 | ||||
Impairment losses | 58,919 | 30,957 | [1] | 268,089 | [1] |
Net (loss) gain due to changes in the value of assets | |||||
(Increase) decrease in fair value of biological assets | 7,615 | (7,504) | (1,891) | ||
Other (gain) loss | 8 | ||||
Net gains/losses due to changes in the value of assets | 7,623 | (7,504) | [1] | (1,891) | [1] |
(Loss) gain on disposal of non-current assets | |||||
Loss on disposal of Intangible assets | 503 | ||||
Gain on disposal of Property, plant and equipment | (2,950) | (1,779) | (468) | ||
Loss on disposal of Property, plant and equipment | 162 | 3,733 | |||
(Gains) loss on disposal of other non-current assets | (29) | 1,859 | 128 | ||
Gain on disposal of subsidiary | (11,747) | ||||
Total | (14,564) | $ 4,316 | [1] | $ (340) | [1] |
Cash proceeds | 20,533 | ||||
Gain on disposal | $ 11,747 | ||||
[1] | The amounts for 2016 have been re-presented to show the results of the Spanish energy business within profit (loss) from continuing operations, as described in Note 1 to the consolidated financial statements. |
Remuneration of key managemen_3
Remuneration of key management personnel (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Remuneration and other benefits paid to key management personnel | |||
Fixed remuneration | $ 6,068 | $ 5,625 | $ 5,611 |
Variable remuneration | 3,710 | 4,007 | |
Contributions to pension plans and insurance policies | 379 | 215 | 285 |
Share-based compensation | 1,777 | 1,738 | |
Termination benefits | 2,284 | 22,672 | |
Other remuneration | 23 | 17 | 177 |
Total | 10,531 | 11,305 | 32,752 |
Key management personnel | |||
Remuneration and other benefits paid to key management personnel | |||
Loans and advances granted | $ 0 | $ 0 | $ 0 |
Financial risk management (Deta
Financial risk management (Details) $ in Thousands | Feb. 15, 2017USD ($) | Feb. 28, 2017USD ($) | May 31, 2012item | Feb. 22, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) |
Financial risk management | |||||||
Cessation of percentage of voting interest which occur in change in control | 100.00% | ||||||
Borrowings | $ 141,012 | $ 1,003 | |||||
Credit facilities | |||||||
Financial risk management | |||||||
Principal amount | 250,000 | 200,000 | |||||
Borrowings | 133,314 | 0 | |||||
Borrowings | 135,919 | ||||||
Senior Notes due 2022 | |||||||
Financial risk management | |||||||
Principal amount | $ 350,000 | $ 350,000 | 350,000 | ||||
Fixed Interest Rate | 9.375% | ||||||
Redemption price of notes at change of control | 101.00% | ||||||
Senior Notes due 2022 issued by Ferroglobe PLC | |||||||
Financial risk management | |||||||
Principal amount | $ 150,000 | ||||||
Revolving Credit Facility | |||||||
Financial risk management | |||||||
Principal amount | $ 200,000 | $ 250,000 | |||||
New Revolving Credit Facility | |||||||
Financial risk management | |||||||
Fixed Interest Rate | 5.20% | ||||||
Foreign currency risk | |||||||
Financial risk management | |||||||
Percentage of Principal and Interest Payments | 55.00% | ||||||
Foreign currency risk | Senior Notes due 2022 | |||||||
Financial risk management | |||||||
Principal amount | $ 350,000 | ||||||
Foreign currency risk | Senior Notes due 2022 issued by Ferroglobe PLC | |||||||
Financial risk management | |||||||
Principal amount | $ 150,000 | ||||||
Liquidity risk | |||||||
Financial risk management | |||||||
Number of installments | item | 120 | ||||||
Liquidity risk | Senior Notes due 2022 | |||||||
Financial risk management | |||||||
Principal amount | $ 350,000 | ||||||
Fixed Interest Rate | 9.375% | ||||||
Redemption price of notes at change of control | 101.00% | ||||||
Liquidity risk | Amended revolving credit facility | |||||||
Financial risk management | |||||||
Principal amount | $ 200,000 | ||||||
Liquidity risk | Revolving Credit Facility | |||||||
Financial risk management | |||||||
Amount of borrowings utilized including letters of credit | $ 139,325 | $ 0 | |||||
Grupo Villar Mir, S.A.U. | |||||||
Financial risk management | |||||||
Ownership interest as a percentage | 53.90% | ||||||
Minimum | |||||||
Financial risk management | |||||||
Change in percentage of voting stock held other than by permitted holders and its affiliates to occur change in control | 35.00% | ||||||
Maximum | |||||||
Financial risk management | |||||||
Threshold percentage of ownership interest held by related party lenders | 19.00% | ||||||
Threshold percentage of ownership interest held by purchaser after acquisition of lender shares | 15.00% |
Financial risk management - int
Financial risk management - interest-bearing financial liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial instruments by type of interest rate [line items] | ||
Obligations under finance leases | $ 66,471 | $ 82,633 |
Debt instruments | 352,594 | 350,270 |
Other financial liabilities | 32,788 | 49,011 |
Additional borrowing cost if 1% increase in floating interest rate | 1,425 | 161 |
Interest rate risk | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Bank borrowings | 141,012 | 1,003 |
Obligations under finance leases | 66,471 | 82,633 |
Debt instruments | 352,595 | 350,270 |
Other financial liabilities | 61,849 | 99,391 |
Interest-bearing financial liabilities | $ 621,927 | $ 533,297 |
Percentage of exposure to floating interest rate | 31.00% | 83.00% |
Increase in floating interest rate, Percentage | 1.00% | |
Interest rate risk | Fixed rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Debt instruments | $ 352,595 | $ 350,270 |
Other financial liabilities | 61,849 | 86,238 |
Interest-bearing financial liabilities | 414,444 | 436,508 |
Interest rate risk | Floating rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Bank borrowings | 141,012 | 1,003 |
Obligations under finance leases | 66,471 | 82,633 |
Other financial liabilities | 13,153 | |
Interest-bearing financial liabilities | $ 207,483 | $ 96,789 |
Financial risk management - For
Financial risk management - Foreign currency risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Feb. 15, 2017 | |
Foreign currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation of euro (Percentage) | 10.00% | ||
Depreciation of euro (percentage) | (10.00%) | ||
Loss on portion of cross currency swap accounted for at fair value through profit or loss on appreciation of the Euro by 10% over USD | $ 4,615 | $ 5,831 | |
Gain on portion of cross currency swap accounted for at fair value through profit or loss on depreciation of the Euro by 10% against USD | (4,615) | $ (5,831) | |
Senior Notes due 2022 issued by Ferroglobe PLC | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Principal amount | $ 150,000 | ||
Senior Notes due 2022 issued by Ferroglobe PLC | Foreign currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Principal amount | 150,000 | ||
Amount by which the cross currency swap exceeds debt instruments | $ 42,500 |
Financial risk management - Liq
Financial risk management - Liquidity risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net undiscounted cash flows | ||
Payable to non-current asset suppliers | $ 11,747 | $ 5,411 |
Gross inflows and outflows | ||
Inflows | 255,664 | 273,720 |
Outflows | (261,793) | (292,626) |
Net cash flow | (6,129) | (18,906) |
Discounted at the applicable interbank rates | (23,463) | (38,040) |
Liquidity risk | ||
Net undiscounted cash flows | ||
Bank borrowings | 141,012 | 1,003 |
Finance leases | 66,471 | 89,108 |
Debt instruments | 464,845 | 497,656 |
Financial loans from government agencies | 68,083 | 93,894 |
Derivative financial instruments | 6,129 | 18,906 |
Payables to related parties | 11,128 | 12,973 |
Payable to non-current asset suppliers | 11,747 | 5,411 |
Contingent consideration | 40,584 | |
Trade and other payables | 256,823 | 192,859 |
Contractual undiscounted payments | 1,066,822 | 911,810 |
Not later than one year | ||
Gross inflows and outflows | ||
Inflows | 18,047 | 18,198 |
Outflows | (17,556) | (18,793) |
Net cash flow | 491 | (595) |
Discounted at the applicable interbank rates | 82 | (995) |
Not later than one year | Liquidity risk | ||
Net undiscounted cash flows | ||
Bank borrowings | 8,191 | 1,003 |
Finance leases | 12,999 | 15,379 |
Debt instruments | 32,813 | 32,813 |
Financial loans from government agencies | 58,758 | 88,127 |
Derivative financial instruments | (491) | 595 |
Payables to related parties | 11,128 | 12,973 |
Payable to non-current asset suppliers | 11,648 | 5,411 |
Contingent consideration | 3,103 | |
Trade and other payables | 256,823 | 192,859 |
Contractual undiscounted payments | 394,972 | 349,160 |
Later than one year and not later than two years | ||
Gross inflows and outflows | ||
Inflows | 18,047 | 17,996 |
Outflows | (17,108) | (18,199) |
Net cash flow | 939 | (203) |
Discounted at the applicable interbank rates | 52 | (985) |
Later than one year and not later than two years | Liquidity risk | ||
Net undiscounted cash flows | ||
Finance leases | 13,817 | 15,504 |
Debt instruments | 32,813 | 32,813 |
Financial loans from government agencies | 6,996 | 2,362 |
Derivative financial instruments | (939) | 203 |
Payable to non-current asset suppliers | 99 | |
Contingent consideration | 6,193 | |
Contractual undiscounted payments | 58,979 | 50,882 |
Later than two years and not later than five years [member] | ||
Gross inflows and outflows | ||
Inflows | 219,570 | 237,526 |
Outflows | (227,129) | (255,634) |
Net cash flow | (7,559) | (18,108) |
Discounted at the applicable interbank rates | (23,597) | (36,060) |
Later than two years and not later than five years [member] | Liquidity risk | ||
Net undiscounted cash flows | ||
Bank borrowings | 132,821 | |
Finance leases | 39,655 | 58,225 |
Debt instruments | 399,219 | 432,031 |
Financial loans from government agencies | 1,822 | 2,349 |
Derivative financial instruments | 7,559 | 18,108 |
Contingent consideration | 18,530 | |
Contractual undiscounted payments | 599,606 | 510,713 |
Later than five years [member] | Liquidity risk | ||
Net undiscounted cash flows | ||
Financial loans from government agencies | 507 | 1,056 |
Contingent consideration | 12,758 | |
Contractual undiscounted payments | $ 13,265 | $ 1,056 |
Financial risk management - Cha
Financial risk management - Changes in liabilities (Details) - USD ($) $ in Thousands | Nov. 07, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Changes in liabilities arising from financing activities [abstract] | ||||
Beginning of period | $ 571,337 | $ 514,587 | ||
Reclassification of business held for sale | 86,959 | |||
Changes from financing cash flows | 94,737 | (103,868) | ||
Effect of changes in foreign exchange rates | (10,109) | 26,541 | ||
Changes in fair value | (12,841) | 31,614 | ||
Other changes | 2,265 | 15,504 | ||
End of period | 645,389 | 571,337 | $ 514,587 | |
Dividends paid | (20,642) | (54,988) | ||
Proceeds from stock option exercises | 240 | 180 | ||
Other amounts paid due to financing activities | (932) | (9,709) | ||
Payments to acquire or redeem own shares | $ (20,100) | (20,100) | ||
Cash flows from (used in) financing activities | 53,303 | (113,397) | 49,917 | |
Bank borrowings. | ||||
Changes in liabilities arising from financing activities [abstract] | ||||
Beginning of period | 1,003 | 421,291 | ||
Changes from financing cash flows | 140,781 | (426,641) | ||
Effect of changes in foreign exchange rates | (772) | 1,916 | ||
Other changes | 4,437 | |||
End of period | 141,012 | 1,003 | 421,291 | |
Obligations under finance leases. | ||||
Changes in liabilities arising from financing activities [abstract] | ||||
Beginning of period | 82,633 | 5,237 | ||
Reclassification of business held for sale | 81,383 | |||
Changes from financing cash flows | (12,948) | (14,610) | ||
Effect of changes in foreign exchange rates | (3,214) | 10,623 | ||
End of period | 66,471 | 82,633 | 5,237 | |
Debt instruments | ||||
Changes in liabilities arising from financing activities [abstract] | ||||
Beginning of period | 350,270 | |||
Changes from financing cash flows | 337,383 | |||
Other changes | 2,324 | 12,887 | ||
End of period | 352,594 | 350,270 | ||
Financial loans from government agencies | ||||
Changes in liabilities arising from financing activities [abstract] | ||||
Beginning of period | 99,391 | 87,360 | ||
Changes from financing cash flows | (33,096) | |||
Effect of changes in foreign exchange rates | (4,446) | 12,031 | ||
End of period | 61,849 | 99,391 | 87,360 | |
Derivative financial instruments | ||||
Changes in liabilities arising from financing activities [abstract] | ||||
Beginning of period | 38,040 | 699 | ||
Reclassification of business held for sale | 5,576 | |||
Effect of changes in foreign exchange rates | (1,677) | 1,971 | ||
Changes in fair value | (12,841) | 31,614 | ||
Other changes | (59) | (1,820) | ||
End of period | $ 23,463 | $ 38,040 | $ 699 |
Fair value measurement - Estima
Fair value measurement - Estimate of fair value (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other assets | |||
Biological assets | $ 7,790 | $ 27,279 | |
Other financial assets | |||
Other | 72,866 | 91,784 | |
Assets and liabilities measured at fair value | |||
Gain/Loss recognised in profit or loos | 7,615 | (7,504) | $ (1,891) |
Proceeds from divested of certain timber farm plantations and associated property, plant and equipment | $ 12,734 | ||
MAI for gum to determine annual growth rate | 15 | ||
MAI for pine to determine annual growth rate | 10.5 | ||
Density index for pine | 0.94 | ||
Density index for wood pulp | 1 | ||
At fair value [member] | |||
Other assets | |||
Biological assets | $ 7,790 | 27,279 | |
Other financial assets | |||
Other | 82,638 | ||
Other liabilities | |||
Contingent consideration in a business combinations | (26,222) | ||
Level 3 of fair value hierarchy [member] | At fair value [member] | |||
Other assets | |||
Biological assets | 7,790 | 27,279 | |
Other financial assets | |||
Other | 82,638 | ||
Other liabilities | |||
Contingent consideration in a business combinations | (26,222) | ||
Assets and liabilities measured at fair value | |||
Beginning of period | 27,279 | 17,365 | |
Gain/Loss recognised in profit or loos | (7,615) | 7,504 | |
Disposals of biological assets | (12,168) | ||
Translation differences and other | 294 | 2,410 | |
End of period | 7,790 | 27,279 | $ 17,365 |
Cross currency swap | At fair value [member] | |||
Other financial liabilities | |||
Other financial liabilities - derivatives | (20,384) | (33,648) | |
Cross currency swap | Level 2 of fair value hierarchy [member] | At fair value [member] | |||
Other financial liabilities | |||
Other financial liabilities - derivatives | (20,384) | (33,648) | |
Interest rate swap contract [member] | At fair value [member] | |||
Other financial liabilities | |||
Other financial liabilities - derivatives | (3,079) | (4,392) | |
Interest rate swap contract [member] | Level 2 of fair value hierarchy [member] | At fair value [member] | |||
Other financial liabilities | |||
Other financial liabilities - derivatives | (3,079) | $ (4,392) | |
Debt investments | At fair value [member] | |||
Other financial assets | |||
Other | 67,079 | ||
Debt investments | Level 3 of fair value hierarchy [member] | At fair value [member] | |||
Other financial assets | |||
Other | 67,079 | ||
Equity securities | At fair value [member] | |||
Other financial assets | |||
Other | 2,523 | ||
Equity securities | Level 1 of fair value hierarchy [member] | At fair value [member] | |||
Other financial assets | |||
Other | $ 2,523 |
Non-current assets held for s_2
Non-current assets held for sale - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Held for sale | |
Current liabilities | |
Adjustment to the carrying amount of its assets equivalent to the depreciation that would have been charged if the business had not been classified as held for sale | $ 2,608 |
Events after the reporting pe_2
Events after the reporting period (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Feb. 22, 2019 | Dec. 31, 2017 | Feb. 15, 2017 | |
Amended Revolving Credit Facility | ||||
Minimum cash liquidity | $ 150 | |||
Cash consideration | $ 12,734 | |||
Senior Notes due 2022 | ||||
Amended Revolving Credit Facility | ||||
Notional amount | $ 350,000 | $ 350,000 | $ 350,000 | |
Senior Notes due 2022 issued by Ferroglobe PLC | ||||
Amended Revolving Credit Facility | ||||
Notional amount | 150,000 | |||
Senior Notes due 2022 issued by Globe Specialty Metals, Inc | ||||
Amended Revolving Credit Facility | ||||
Notional amount | 200,000 | |||
Senior Notes due 2022 issued by Globe Specialty Metals, Inc | Amended revolving credit facility | ||||
Amended Revolving Credit Facility | ||||
Notional amount | $ 250,000 | $ 200,000 |