Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Ferroglobe PLC |
Entity Central Index Key | 0001639877 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Title of 12(b) Security | Ordinary Shares (nominal value of $0.01) |
Trading Symbol | GSM |
Security Exchange Name | NASDAQ |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 169,197,366 |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | ||
Goodwill | $ 29,702 | $ 29,702 |
Other intangible assets | 20,756 | 51,267 |
Property, plant and equipment | 620,034 | 740,906 |
Other non-current financial assets | 5,057 | 2,618 |
Deferred tax assets | 59,551 | |
Non-current receivables from related parties | 2,454 | 2,247 |
Other non-current assets | 11,904 | 1,597 |
Non-current restricted cash and cash equivalents | 28,323 | |
Total non-current assets | 689,907 | 916,211 |
Current assets | ||
Inventories | 246,549 | 354,121 |
Trade and other receivables | 242,262 | 309,064 |
Current receivables from related parties | 3,076 | 2,955 |
Current income tax assets | 12,072 | 27,930 |
Other current financial assets | 1,008 | 5,544 |
Other current assets | 20,714 | 23,676 |
Current restricted cash and cash equivalents | 28,843 | |
Cash and cash equivalents | 102,714 | 94,852 |
Total current assets | 657,238 | 818,142 |
Total assets | 1,347,145 | 1,734,353 |
Equity | ||
Share capital | 1,784 | 1,784 |
Reserves | 696,774 | 975,358 |
Translation differences | (206,759) | (210,152) |
Valuation adjustments | 5,755 | (2,169) |
Result attributable to the Parent | (246,339) | (280,601) |
Non-controlling interests | 114,504 | 118,077 |
Total equity | 365,719 | 602,297 |
Non-current liabilities | ||
Deferred income | 620 | 1,253 |
Provisions | 108,487 | 84,852 |
Bank borrowings | 5,277 | 144,388 |
Lease liabilities | 13,994 | 16,972 |
Debt instruments | 346,620 | 344,014 |
Other financial liabilities | 29,094 | 43,157 |
Other non-current liabilities | 16,767 | 25,906 |
Deferred tax liabilities | 27,781 | 74,057 |
Total non-current liabilities | 548,640 | 734,599 |
Current liabilities | ||
Provisions | 55,296 | 46,091 |
Bank borrowings | 102,330 | 14,611 |
Lease liabilities | 8,542 | 8,900 |
Debt instruments | 10,888 | 10,937 |
Other financial liabilities | 34,802 | 23,382 |
Payables to related parties | 3,196 | 4,830 |
Trade and other payables | 149,201 | 189,229 |
Current income tax liabilities | 2,538 | 3,048 |
Other current liabilities | 65,993 | 96,429 |
Total current liabilities | 432,786 | 397,457 |
Total equity and liabilities | $ 1,347,145 | $ 1,734,353 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Profit (loss) [abstract] | ||||||
Sales | $ 1,144,434 | $ 1,615,222 | $ 2,242,002 | [1] | ||
Cost of sales | (835,486) | (1,214,397) | (1,446,677) | [1] | ||
Other operating income | 33,627 | 54,213 | 45,844 | [1] | ||
Staff costs | (214,782) | (285,029) | (338,862) | [1] | ||
Other operating expense | (132,059) | (225,705) | (277,560) | [1] | ||
Depreciation and amortization charges, operating allowances and write-downs | (108,189) | (120,194) | (113,837) | [1] | ||
Impairment losses | (73,344) | (175,899) | (58,919) | [1] | ||
Net (loss) gain due to changes in the value of assets | 158 | (1,574) | (7,623) | [1] | ||
(Loss) gain on disposal of non-current assets | 1,292 | (2,223) | 14,564 | [1] | ||
Bargain purchase gain | [1],[2] | 40,142 | ||||
Other losses | (1) | |||||
Operating (loss) profit | (184,350) | (355,586) | 99,074 | [1] | ||
Finance income | 177 | 1,380 | 4,858 | [1] | ||
Finance costs | (66,968) | (63,225) | (57,066) | [1] | ||
Financial derivative gain (loss) | 3,168 | 2,729 | 2,838 | [1] | ||
Exchange differences | 25,553 | 2,884 | (14,136) | [1] | ||
(Loss) profit before tax | (222,420) | (411,818) | 35,568 | [1] | ||
Income tax benefit (expense) | (21,939) | 41,541 | (20,459) | [1] | ||
(Loss) profit for the year from continuing operations | (244,359) | (370,277) | 15,109 | [1] | ||
(Loss) for the year from discontinued operations | (5,399) | 84,637 | 9,464 | [1] | ||
(Loss) profit for the year | (249,758) | (285,640) | [2] | 24,573 | [1],[2] | |
Loss attributable to non-controlling interests | 3,419 | 5,039 | 19,088 | [1] | ||
(Loss) profit attributable to the Parent | (246,339) | (280,601) | 43,661 | [1] | ||
Earnings per share | ||||||
(Loss) profit attributable to the Parent (US$'000) | $ (246,339) | $ (280,601) | $ 43,661 | [1] | ||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | [1] | ||
Basic (loss) earnings per ordinary share (US$) | $ (1.46) | $ (1.66) | $ 0.25 | [1] | ||
Effect of dilutive securities | [1] | 123,340 | ||||
Weighted average dilutive shares outstanding | 169,269,281 | 169,152,905 | 171,529,612 | [1] | ||
Diluted (loss) earnings per ordinary share (US$) | $ (1.46) | $ (1.66) | $ 0.25 | [1] | ||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). | |||||
[2] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [2] | ||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||
Net (loss) profit | $ (249,758) | $ (285,640) | [1] | $ 24,573 | [1] |
Items that will not be reclassified subsequently to income or loss: | |||||
Defined benefit obligation | 3,630 | (1,859) | 3,568 | ||
Tax effect | (45) | (296) | |||
Total income and expense that will not be reclassified subsequently to income or loss | 3,585 | (1,859) | 3,272 | ||
Items that may be reclassified subsequently to income or loss: | |||||
Arising from cash flow hedges | (3,752) | 9,663 | 10,006 | ||
Translation differences | 3,239 | (8,698) | (45,435) | ||
Total income and expense that may be reclassified subsequently to income or loss | (513) | 965 | (35,429) | ||
Items that have been reclassified to income or loss in the period: | |||||
Arising from cash flow hedges | 8,091 | 2,390 | (7,228) | ||
Tax effect | (805) | (190) | |||
Total transfers to income or loss | 8,091 | 1,585 | (7,418) | ||
Other comprehensive income (loss) for the year, net of income tax | 11,163 | 691 | (39,575) | ||
Total comprehensive (loss) income for the year | (238,595) | (284,949) | (15,002) | ||
Attributable to the Parent | (235,022) | (281,097) | 4,976 | ||
Attributable to non-controlling interests | $ (3,573) | $ (3,852) | $ (19,978) | ||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. | ||||
[2] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
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, 2017 | 171,977 | |||||||
Equity at beginning of period at Dec. 31, 2017 | $ 1,796 | $ 996,380 | $ (164,675) | $ (16,799) | $ (678) | $ 121,734 | $ 937,758 | |
Comprehensive (loss) income | (44,276) | 5,591 | 43,661 | (19,978) | (15,002) | [1] | ||
Issue of share capital | 240 | 240 | ||||||
Cash settlement of equity awards | (680) | (680) | ||||||
Share-based compensation | 2,798 | 2,798 | ||||||
Distribution of profit (loss) | (678) | 678 | ||||||
Dividends paid to joint venture partner | (20,642) | (20,642) | ||||||
Own shares acquired | $ (12) | (20,088) | (20,100) | |||||
Own shares acquired (in shares) | (1,153) | |||||||
Non-controlling interest arising on the acquisition and increase in ownership interest | (15,623) | 1,585 | (351) | 14,389 | ||||
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 | |||||||
Comprehensive (loss) income | (9,886) | 9,390 | (280,601) | (3,852) | (284,949) | |||
Share-based compensation | 4,879 | 4,879 | ||||||
Distribution of profit (loss) | 43,661 | (43,661) | ||||||
Dividends paid | (97) | (97) | ||||||
Non-controlling interest arising on the acquisition and increase in ownership interest | (14,889) | 7,100 | 5,881 | (1,908) | ||||
Equity at end of period at Dec. 31, 2019 | $ 1,784 | 975,358 | (210,152) | (2,169) | (280,601) | 118,077 | 602,297 | |
Shares outstanding at end of period at Dec. 31, 2019 | 170,864 | |||||||
Comprehensive (loss) income | 3,393 | 7,924 | (246,339) | (3,573) | (238,595) | |||
Share-based compensation | 2,017 | 2,017 | ||||||
Distribution of profit (loss) | (280,601) | 280,601 | ||||||
Equity at end of period at Dec. 31, 2020 | $ 1,784 | $ 696,774 | $ (206,759) | $ 5,755 | $ (246,339) | $ 114,504 | $ 365,719 | |
Shares outstanding at end of period at Dec. 31, 2020 | 170,864 | |||||||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Cash flows from operating activities: | ||||||
(Loss) profit for the year | $ (249,758) | $ (285,640) | [1] | $ 24,573 | [1],[2] | |
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | ||||||
Income tax expense (benefit) | 21,939 | (40,528) | [1] | 24,235 | [1] | |
Depreciation and amortization charges, operating allowances and write-downs | 108,189 | 123,024 | [1] | 119,137 | [1] | |
Finance income (loss) | (177) | 2,140 | [1] | (5,374) | [1] | |
Finance costs | 66,968 | 66,139 | [1] | 62,022 | [1] | |
Financial derivative (gain) loss | (3,168) | (2,729) | [1] | (2,838) | [1] | |
Exchange differences | (25,553) | (2,884) | [1] | 14,136 | [1] | |
Impairment losses | 73,344 | 175,899 | [1] | 58,919 | [1] | |
Bargain purchase gain | [1],[2] | (40,142) | ||||
Loss (gain) on disposal of discontinued operations | 5,399 | (85,101) | [1] | |||
Loss (gain) due to changes in the value of assets | (158) | 1,574 | [1] | 7,623 | [1] | |
(Gain) loss on disposal of non-current assets | (1,292) | 2,223 | [1] | (14,564) | [1] | |
Share-based compensation | 2,017 | 4,879 | [1] | 2,798 | [1] | |
Changes in operating assets and liabilities: | ||||||
(Increase) decrease in inventories | 114,585 | 91,531 | [1] | (101,024) | [1] | |
(Increase) decrease in trade and other receivables | 71,034 | 30,933 | [1] | (25,807) | [1] | |
Increase (decrease) in trade and other payables | (55,405) | (63,187) | [1] | 55,410 | [1] | |
Other changes in operating assets and liabilities | 14,473 | (45,878) | [1] | (25,901) | [1] | |
Income tax paid | 11,831 | (3,589) | [1] | (36,408) | [1] | |
Net cash (used) provided by operating activities | 154,268 | (31,194) | [1] | 116,795 | [1] | |
Cash flows from investing activities: | ||||||
Interest and finance income received | 630 | 1,673 | [1] | 3,833 | [1] | |
Payments due to investments: | ||||||
Acquisition of subsidiaries | [1] | 9,088 | (20,379) | |||
Other intangible assets | (2,654) | (184) | [1] | (3,313) | [1] | |
Property, plant and equipment | (30,257) | (32,445) | [1] | (106,136) | [1] | |
Other financial assets | [1] | (1,248) | ||||
Disposals: | ||||||
Disposal of subsidiaries | [1] | 176,590 | 20,533 | |||
Other non-current assets | 341 | 8,668 | [1] | 12,734 | [1] | |
Other | [1] | 3,768 | 6,853 | |||
Net cash provided (used) by investing activities | (31,940) | 165,910 | [1] | (85,875) | [1] | |
Cash flows from financing activities: | ||||||
Dividends paid | [1] | (20,642) | ||||
Payment for debt issuance costs | (4,540) | (15,117) | [1] | (4,905) | [1] | |
Repayment of hydro leases | [1] | (55,352) | ||||
Repayment of other financial liabilities | [1] | (33,096) | ||||
Increase (decrease) in bank borrowings: | ||||||
Borrowings | 177,593 | 245,629 | [1] | 252,200 | [1] | |
Payments | (235,296) | (329,501) | [1] | (106,514) | [1] | |
Proceeds from stock option exercises | [1] | 240 | ||||
Amounts paid due to leases | (10,315) | (18,105) | [1] | |||
Other amounts (paid) due to financing activities | (2,863) | (8,526) | [1] | (13,880) | [1] | |
Payments to acquire or redeem own shares | [1] | (20,100) | ||||
Interest paid | (37,912) | (43,033) | [1] | (43,018) | [1] | |
Net cash (used) provided by financing activities | (113,333) | (224,005) | [1] | 10,285 | [1] | |
Total net cash flows for the year | 8,995 | (89,289) | [1] | 41,205 | [1] | |
Beginning balance of cash and cash equivalents | [1] | 123,175 | 216,647 | 184,472 | ||
Exchange differences on cash and cash equivalents in foreign currencies | (613) | (4,183) | [1] | (9,030) | [1] | |
Ending balance of cash and cash equivalents | $ 131,557 | $ 123,175 | [1] | $ 216,647 | [1] | |
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. | |||||
[2] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
General Information
General Information | 12 Months Ended |
Dec. 31, 2020 | |
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 was operating hydroelectric plants (hereinafter “energy business”) in Spain until August 30, 2019 and is still operating in 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 13 Chesterfield Street, London W1J 5JN (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 for the prior years As described in Note 29 of these financial statements, on June 2, 2019 the Company entered into an agreement with Kehlen Industries Management, S.L., a wholly-owned subsidiary of TSSP Adjacent Opportunities Partners, L.P., for the sale of the entire share capital of FerroAtlántica, S.A.U ("FAU"), the owner and operator of the Group's hydro-electric assets in Galicia, Spain (the “Spanish Hydro-electric Business”) and its smelting facility at Cee-Dumbria and effectively sold at August 30, 2019. The Spanish Hydroelectric Business was classified as disposal group held for sale and accounted for as a discontinued operation in the second quarter of 2019. Accordingly, the consolidated income statement for the prior years ended 2018 was restated to reclassify the results of the Company’s Spanish hydro-electric plants or assets within profit (loss) for the year from discontinued operations. |
Organization and Subsidiaries
Organization and Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
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 North America, Europe, South America, South Africa and Asia. The subsidiaries of Ferroglobe as of December 31, 2020, 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 ECPI, Inc. — Electrometallurgy - North America Delaware - USA Gatliff Services, LLC — Electrometallurgy - North America Delaware - USA Globe BG, LLC — Electrometallurgy - North America Delaware - USA GBG Financial 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 Laurel Ford Resources, 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. — Electrometallurgy - Europe Madrid - Spain Ferroatlántica de Sabón, S.L.U. — Electrometallurgy - Europe Madrid - Spain Ferroatlántica de Boo, S.L.U. — Electrometallurgy - Europe Madrid - Spain Ferroatlántica Participaciones, S.L.U. — Electrometallurgy - Europe Madrid - Spain Ferroglobe Mangan Norge A.S. — Electrometallurgy - Europe Norway Ferroglobe Manganese France S.A.S. — Electrometallurgy - Europe France FerroPem, S.A.S. — Electrometallurgy - Europe France Ferrous Receivables DAC. — Electrometallurgy - Europe Ireland Grupo FerroAtlántica, S.A.U. 100 Electrometallurgy - Europe Madrid - Spain Grupo FerroAtlántica de Servicios, S.L.U. — Electrometallurgy - Europe Madrid - Spain Kintuck (France) S.A.S. — Electrometallurgy - Europe France Kintuck A.S. — 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 Cuarzos Indus. de Venezuela (Cuarzoven), S.A. — Other segments Venezuela Emix, S.A.S. — Other segments France 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 International Ltd. — Other segments United Kingdom Ferroglobe Services (UK) Ltd. 100 Other segments United Kingdom FerroManganese Mauritania S.A.R.L. — Other segments Mauritania Ferroquartz Holdings, Ltd. (Hong Kong) — Other segments Hong Kong FerroQuartz Mauritania S.A.R.L. — Other segments Mauritania Ferrosolar OPCO Group S.L. — Other segments Spain Ferrosolar R&D S.L. — Other segments Spain FerroTambao, S.A.R.L. — Other segments Burkina Faso Globe Argentina Holdco, LLC — Other segments Delaware - USA Globe Metales S.R.L. — Other segments Argentina Globe Specialty Metals, Inc. 100 Other segments Delaware - USA GSM Financial, Inc. — Other segments Delaware - USA GSM Netherlands, B.V. — Other segments Netherlands Hidroelectricité de Saint Beron, S.A.S. — Other segments France Mangshi FerroAtlántica Mining Industry Service Company Limited — Other segments Mangshi, Dehong -Yunnan -China Mangshi Sinice Silicon Industry Company Limited — Other segments Mangshi, Dehong -Yunnan -China Ningxia Yonvey Coal Industrial Co., Ltd. — Other segments China Photosil Industries, S.A.S. — Other segments France Silicio Ferrosolar, S.L.U. — Other segments Spain Solsil, Inc. — Other segments Delaware - USA Ultracore Energy S.A. — Other segments Argentina 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, 2020 | |
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 30, 2021. 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. The accompanying consolidated financial statements for the year ended December 31, 2020 have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business. In connection with the preparation of our consolidated financial statements, we conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity’s ability to continue as a going concern within one year after the date of the issuance of our consolidated financial statements. As of December 31, 2020, as reflected in our consolidated financial statements, the Company had cash and cash equivalents of $131.6 million, of which $28.8 million was restricted. The Company had an operating loss of $184.4 million and a net loss of $249.8 million for the year ended December 31, 2020. Our business has historically been subject to fluctuations in the prices of our products and the market demand for them, caused by general and regional economic cycles, raw material and energy price fluctuations, competition and other factors. Throughout 2019 and the first half of 2020, we experienced a significant decline in prevailing prices of our products, which adversely affected our results. The timing, magnitude and duration of these cycles and the resulting price fluctuations are difficult to predict. In early 2020, the outbreak of coronavirus disease (“COVID-19”) in China spread to other areas, including locations where the Company conducts business. As a result of this pandemic and the strict confinement and other public health measures taken around the world, the demand of our products in the second and third quarters of 2020 was reduced significantly compared with the first and fourth quarters of the year. During the fourth quarter of 2020, demand level for our products increased to levels similar to those prior to the outbreak. In first quarter of 2021, demand for our products has increased even further than in the fourth quarter of 2020. However, COVID-19 has negatively impacted, and will in the future negatively impact to an extent we are unable to predict, our revenues. The main source of finance for the Company are the Senior Notes (the “Notes”) amounting $350,000 thousand due March 1, 2022. As discussed in Note 27, the Indenture governing the Notes includes provisions which, in the event of a change of control, would require the Company to offer to redeem the outstanding Notes at a cash purchase price equal to 101% of the principal amount of the Notes, plus any accrued and unpaid interest. GVM currently owns approximately 54% of the Company’s voting stock, and a significant majority of GVM’s shares in the Company are pledged as collateral for GVM’s obligations to certain of its lenders. A change of control may occur if a person other than a Permitted Holder (as defined in Note 27) 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. While GVM maintains its current shareholding, a change of control cannot occur. Based on the provisions cited above, a change of control as defined in the Indenture is unlikely to occur but the matter it is beyond the Company’s control. If a change of control were to occur, the company may not have sufficient financial resources available to satisfy all of its obligations. In April 2021, the company has obtained the agreement in principle of 95.92% (by value) of the noteholders to restructure the Notes and extend their maturity to December 2025. The transaction will be carried out through an exchange offer and covenant strip. Although 95.92% of the noteholders have contractually agreed to support the transaction, there can nonetheless be no assurance that the proposed restructuring will be completed. In addition to the extension and new terms agreed on the Notes, the company entered into a Lock-Up Agreement with members of an “Ad Hoc-Group”, being existing note holders representing in aggregate approximately 60% of the Notes, to issue additional $60m Notes and with Tyrus Capital (“Tyrus”) as backstop provider in respect of a $40 million equity raise forming part of the transaction. The parties to the Lock-Up Agreement have agreed that the Reissued Notes and the $60m Notes will contain change of control definitions with significant exceptions compared with that contained in the indenture for the current Notes. Under the revised change of control definitions, no change of control shall occur or be deemed to occur by reason of, among other matters, any enforcement or exercise of remedies under the Pledge or any disposal by GVM of the GVM shares for the purpose of repaying GVM’s debt to Tyrus. There can be no assurance that the proposed restructuring will be completed. There are a number of steps that need to be implemented before the three transactions (which are all inter-conditional) above can be completed, including the agreement of full form documents, the finalization of the related structuring and tax analysis, the formal public issuance, exchange and offer processes and the payment of fees. While all relevant parties to enable the transactions to complete are contractually bound to act in good faith in negotiating the relevant agreements and taking necessary steps to complete the transactions those obligations are subject to the detailed terms of the Lock Up Agreement and customary qualifications and termination rights, and there can be no certainty that the transactions will complete. Such termination rights include (but are not limited to) automatic termination on September 28, 2021 (the Long-Stop Date), material non-compliance with the terms of the Lock-Up Agreement by certain parties; and the failure to achieve certain milestones by the agreed specified dates. Should the restructuring of the Notes not fully completed as intended, the company may not have sufficient financial resources available to satisfy all of its obligations. Management acknowledges that the events and conditions described above, relating to the uncertainty over the completion of the restructuring of the Notes, the potential repayment of the outstanding balance of the Notes should a change of control occur, and the difficulties in forecasting net cash flows in the current economic conditions because of the Covid-19 pandemic, together in aggregate give rise to a material uncertainty that may cast substantial doubt on the ability of the Company to continue as a going concern for a period of twelve months following the date our consolidated financial statements are issued. Notwithstanding the material uncertainty described above, management believes that the Group has adequate resources and considers it likely that the exchange of the Notes and additional capital will be completed, that will allow the Group to continue in operational existence for the foreseeable future. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as going concern. 3.2 International financial reporting standards Application of new accounting standards New and amended standards and interpretations adopted by the Company No new standards effective on January 1, 2020 have a material impact on the consolidated financial statements. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. 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, 2020 and have not been early adopted by the Company. Standards, interpretations and amendments published by the IASB that will be effective for periods beginning on or after January 1, 2021: · IFRS 17 Insurance Contracts (issued on 18 May 2017); including Amendments to IFRS 17 (issued on 25 June 2020) · Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current - Deferral of Effective Date (issued on 23 January 2020 and 15 July 2020 respectively) · Amendments to; IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and Annual Improvements 2018-2020 · Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued on 12 February 2021) · Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued on 12 February 2021) · Amendments to IFRS 16 Leases: Covid-19-Related Rent Concessions beyond 30 June 2021(issued on 31 March 2021) · Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 (issued on 27 August 2020) · Amendments to IFRS 4 Insurance Contracts – deferral of IFRS19 (issued on 25 June 2020) None of these standards or interpretations that are not yet effective are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 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 goodwill, see Note 7; · the assumptions taken over forecast recovery in trading activity and cash liquidity management that mitigates any substantial doubt as to the Company’s ability to continue as a going concern, see Note 3.1; · the useful life of property, plant and equipment and intangible assets, see Note 9; · The fair value valuation of the plants, impairment losses on property, plant and equipment and intangible assets, determined by value in use or by fair value less cost of disposal methods, see Note 9; · the fair value of certain unquoted financial assets, see Note 10; · the fair value of financial instruments, see Note 28; · the fair value of acquired assets and liabilities as a result of the business combinations, see Note 5; · the assumptions used in the actuarial calculation of pension liabilities, see Note 15; · the discount rate used to calculate the present value of certain collection rights and payment obligations, see Note 15; · provisions for contingencies and environmental liabilities, see Note 24; 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 Critical accounting judgements and key sources of estimation uncertainty In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Critical judgements in applying the Company's accounting policies The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in financial statements. Impairment of assets The Company reviews the carrying value of assets on a periodic basis, and whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Such circumstances or events could include: a pattern of losses involving the asset; a decline in the market value for the asset; and an adverse change in the business or market in which the asset is involved. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount and the asset’s residual value, if any. Estimates of future cash flows and the selection of appropriate discount rates relating to particular assets or groups of assets involve the exercise of a significant amount of judgement. Cash flow projections are based on the Company’s five year internal forecasts, the results. Estimates of selling prices and direct costs are based on past experience, expectations of future changes in the market and historic trends. Sensitivities are disclosed in Note 7 of the Consolidated Financial Statements Key sources of estimation of uncertainty The key assumptions concerning the future, and other key sources of estimating uncertainty at the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are discussed below. Allowances against the carrying value of investment in subsidiaries Investments in subsidiaries and associates are stated at cost less, where appropriate, provisions for impairment. The recoverable amounts of individual investments in subsidiaries are determined from value in use calculations with a discounted cash flow model being used to calculate this amount. The key assumptions for the value in use calculation are those regarding the discount rate, growth rate, and cash flows. Cash flow projections are based on the Company’s five year internal forecasts, the results. Estimates of selling prices and direct costs are based on past experience, expectations of future changes in the market and historic trends. Sensitivities are disclosed in Note 7 of the Consolidated Financial Statements. 3.6 Basis of consolidation The financial statements of the subsidiaries are fully consolidated with those of the Parent. Accordingly, intercompany balances and transactions, including income, expenses and dividends, are eliminated in the consolidated financial statements. Gains and losses resulting from intercompany transactions are also eliminated. 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, 2020 | |
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 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 4.21). 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; goodwill - the CGU been tested for impairment annually, and whenever there is an indication of impairment and property, pant and equipment and other - whenever there is an indication of impairment. 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 less costs of disposal: 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.” 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 Restricted cash and cash equivalents The Company classifies under “restricted cash and cash equivalents” any liquid financial assets, which meet the definition of cash and cash equivalents but the use is resticted by financial agreements. 4.12 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 held 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 the potential exposure as of the date of preparation of these financial statements. 4.13 Leases As a lease, the Company assesses if a contract is or contains a lease at inception of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the commencement date. The lease liability is initially measured at the present value of the minimum future lease payments, discounted using the interest rate implicit in the lease, or, if not readily determinable, the incremental borrowing rate. Lease payments include fixed payments, variable payments, as well as any extension or purchase options, if the Company is reasonably certain to exercise these options. The lease liability is subsequently measured at amortized cost using the effective interest method and remeasured with a corresponding adjustment to the related right-of-use asset when there is a change in future lease payments. The right-of-use asset comprises, at inception, the initial lease liability, any initial direct costs and, when applicable, the obligations to refurbish the asset, less any incentives granted by the lessors. The right-of-use asset is subsequently depreciated, on a straight-line basis, over the lease term or, if the lease transfers the ownership of the underlying asset to the Company at the end of the lease term or, if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, over the estimated useful life of the underlying asset. Right-of-use assets are also subject to testing for impairment if there is an indicator for impairment. Variable lease payments not inclu |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
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 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 during the year ended December, 31, 2018 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 included trade receivables with a fair value of $11,900 thousand. There was 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 included discount rates of 11.5 percent and 11.0 percent for Ferroglobe Mangan Norge and Ferroglobe Manganèse France Note 21). 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 $45,007 thousand. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Segment reporting | 6. Segment reporting Operating segments are based upon the Company’s management reporting structure. The Company’s operating segments are primarily at a country level as this is how the Chief Operating Decision Maker (CODM) assesses performance and makes decisions about resource allocation. This is due to the integrated operations within each country and the ability to reallocate production based on the individual capacity of each plant. Additionally, economic factors that may impact our results of operations, such as currency fluctuations and energy costs, are also assessed at a country level. The Company’s North America reportable segment is the result of the aggregation of the operating segments of the United States and Canada. These operating segments have been aggregated as they have similar long-term economic characteristics and there is similarity of competitive and operating risks and the political environment in the United States and Canada. The Company’s Europe reportable segment is the result of the aggregation of the operating segments of Spain, France and Norway. Similar to our United States and Canada operating segments, our Spain, France and Norway operating segments are grouped together based on the relative similarity of the EBITDA margins, competitive risks, currency risks (i.e. risks relating to the Euro), operating risks and, given they are each part of the European Union and the European Economic Community, the political and economic environment. The consolidated income statements at December 31, 2020, 2019 and 2018, by reportable segment, are as follows: 2020 Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 425,277 661,624 80,572 25,334 (48,373) 1,144,434 Cost of sales (280,858) (526,771) (56,062) (19,518) 47,723 (835,486) Other operating income 2,916 35,575 131 13,724 (18,719) 33,627 Staff costs (73,988) (121,103) (11,013) (8,678) — (214,782) Other operating expense (34,315) (81,590) (14,098) (21,425) 19,369 (132,059) Depreciation and amortization charges, operating allowances and write-downs (61,664) (38,616) (7,141) (768) — (108,189) Impairment losses (35,685) (17,941) (8,677) (11,041) — (73,344) Net loss due to changes in the value of assets — — — 158 — 158 (Loss) gain on disposal of non-current assets (869) 2,156 — 5 — 1,292 Other (loss) gain — 4 — (5) — (1) Operating (loss) profit (59,186) (86,662) (16,288) (22,214) — (184,350) Finance income 679 4,262 90 12,466 (17,320) 177 Finance costs (857) (30,637) (3,796) (48,998) 17,320 (66,968) Financial derivative gain — — — 3,168 — 3,168 Exchange differences (485) (507) (1,405) 27,950 — 25,553 (Loss) Profit before tax (59,849) (113,544) (21,399) (27,628) — (222,420) Income tax (expense) benefit 14,213 (34,618) (1,049) (485) — (21,939) (Loss) profit for the year from continuing operations (45,636) (148,162) (22,448) (28,113) — (244,359) Profit for the year from discontinued operations — (5,399) — — — (5,399) (Loss) profit for the year (45,636) (153,561) (22,448) (28,113) — (249,758) Loss (profit) attributable to non-controlling interests 3,033 5 242 139 — 3,419 (Loss) profit attributable to the Parent (42,603) (153,556) (22,206) (27,974) — (246,339) 2019 Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 551,500 1,049,576 136,292 43,147 (165,293) 1,615,222 Cost of sales (366,711) (868,654) (108,823) (35,923) 165,714 (1,214,397) Other operating income 10,418 47,672 1,323 19,413 (24,613) 54,213 Staff costs (87,954) (145,712) (20,333) (31,030) — (285,029) Other operating expense (60,105) (142,929) (19,457) (27,406) 24,192 (225,705) Depreciation and amortization charges, operating allowances and write-downs (72,251) (39,844) (6,459) (1,640) — (120,194) Impairment losses (174,013) (465) — (1,421) — (175,899) Net loss due to changes in the value of assets — — (530) (1,044) — (1,574) (Loss) gain on disposal of non-current assets (1,601) 180 — (802) — (2,223) Bargain purchase gain — — — — — — Operating profit (loss) (200,717) (100,176) (17,987) (36,706) — (355,586) Finance income 529 9,220 156 14,483 (23,008) 1,380 Finance costs (3,914) (22,547) (4,507) (55,265) 23,008 (63,225) Financial derivative gain — — — 2,729 — 2,729 Exchange differences (407) 3,139 (1,179) 1,331 — 2,884 Profit (loss) before tax (204,509) (110,364) (23,517) (73,428) — (411,818) Income tax (expense) benefit 8,520 22,470 7,761 2,790 — 41,541 Profit (loss) for the year from continuing operations (195,989) (87,894) (15,756) (70,638) — (370,277) Profit for the year from discontinued operations — 3,280 — 81,357 — 84,637 Profit (loss) for the year (195,989) (84,614) (15,756) 10,719 — (285,640) Loss (profit) attributable to non-controlling interests 5,123 — (368) 284 — 5,039 Profit (loss) attributable to the Parent (190,866) (84,614) (16,124) 11,003 — (280,601) 2018(*) Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (**) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Sales 710,716 1,447,973 208,543 62,075 (187,305) 2,242,002 Cost of sales (394,044) (1,059,474) (137,177) (43,194) 187,212 (1,446,677) Other operating income 4,943 39,817 3,420 16,666 (19,002) 45,844 Staff costs (115,555) (177,047) (23,735) (22,525) — (338,862) Other operating expense (77,670) (146,143) (26,353) (46,489) 19,095 (277,560) Depreciation and amortization charges, operating allowances and write-downs (69,009) (34,974) (5,526) (4,328) — (113,837) Impairment losses — — — (58,919) — (58,919) Net gain due to changes in the value of assets — (7) (7,616) — — (7,623) (Loss) gain on disposal of non-current assets (208) (8,369) (261) 23,402 — 14,564 Bargain purchase gain — 40,142 — — — 40,142 Operating (loss) profit 59,173 101,918 11,295 (73,312) — 99,074 Finance income 804 11,035 199 32,040 (39,220) 4,858 Finance costs (4,109) (40,831) (5,298) (46,048) 39,220 (57,066) Financial derivative loss — — — 2,838 — 2,838 Exchange differences (1,194) (10,561) 2,284 (4,665) — (14,136) (Loss) profit before tax 54,674 61,561 8,480 (89,147) — 35,568 Income tax benefit (expense) 4,949 (15,048) (3,582) (6,778) — (20,459) Profit (loss) for the year from continuing operations 59,623 46,513 4,898 (95,925) — 15,109 (Loss) profit for the year from discontinued operations — — — 9,464 — 9,464 Profit (loss) for the year 59,623 46,513 4,898 (86,461) — 24,573 Loss (profit) attributable to non-controlling interests 4,785 (332) 358 14,277 — 19,088 (Loss) profit attributable to the Parent 64,408 46,181 5,256 (72,184) — 43,661 (*) (**) The consolidated statements of financial position at December 31, 2020 and 2019, by reportable segment are as follows: 2020 Consolidation Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (*) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Goodwill 29,702 — — — — 29,702 Other intangible assets 14,604 3,631 1,265 1,256 — 20,756 Property, plant and equipment 353,145 191,211 37,526 38,152 — 620,034 Inventories 63,765 152,680 20,375 9,729 — 246,549 Trade and other receivables (**) 609,456 477,440 43,121 930,744 (1,812,969) 247,792 Cash, restricted cash and cash equivalents 48,127 48,661 2,777 31,992 — 131,557 Other (37,007) 32,413 9,808 45,541 — 50,755 Total assets 1,081,792 906,036 114,872 1,057,414 (1,812,969) 1,347,145 Equity 412,729 174,247 17,856 (239,113) — 365,719 Provisions 33,812 120,413 5,956 3,602 — 163,783 Bank borrowings — 80,121 — 27,486 — 107,607 Obligations under finance leases 4,260 17,403 318 555 — 22,536 Debt instruments — — — 357,508 — 357,508 Other financial liabilities 3,140 331 — 60,425 — 63,896 Trade and other payables (***) 615,690 478,931 78,807 833,630 (1,854,661) 152,397 Other 12,161 34,590 11,935 13,321 41,692 113,699 Total equity and liabilities 1,081,792 906,036 114,872 1,057,414 (1,812,969) 1,347,145 2019 Consolidation Electrometallurgy - Electrometallurgy - Electrometallurgy - Adjustments/ North America Europe South Africa Other segments Eliminations (*) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Goodwill 29,702 — — — — 29,702 Other intangible assets 18,504 30,248 1,322 1,193 — 51,267 Property, plant and equipment 419,695 216,809 53,650 50,752 — 740,906 Inventories 91,619 215,509 32,886 14,107 — 354,121 Trade and other receivables (**) 427,871 504,294 47,755 764,532 (1,430,186) 314,266 Cash, restricted cash and cash equivalents 25,194 65,216 3,321 29,444 — 123,175 Other 11,932 60,619 14,921 33,444 — 120,916 Total assets 1,024,517 1,092,695 153,855 893,472 (1,430,186) 1,734,353 Equity 459,637 307,131 43,466 (207,937) — 602,297 Provisions 31,220 85,167 7,108 7,448 — 130,943 Bank borrowings — 100,070 — 58,929 — 158,999 Obligations under finance leases 6,473 18,128 14 1,257 — 25,872 Debt instruments — — — 354,951 — 354,951 Other financial liabilities — 454 — 66,085 — 66,539 Trade and other payables (***) 464,592 520,937 86,837 587,552 (1,465,859) 194,059 Other 62,595 60,808 16,430 25,187 35,673 200,693 Total equity and liabilities 1,024,517 1,092,695 153,855 893,472 (1,430,186) 1,734,353 (*) These amounts correspond to balances between segments that are eliminated at consolidation . (**) Trade and other receivables includes non-current and current receivables from group that eliminated in the consolidated process. (***) Trade and other payables includes non-current and current payables from group that are eliminated in the consolidated process. Other disclosures Sales by product line Sales by product line are as follows: 2020 2019 2018 US$'000 US$'000 US$'000 Silicon metal 463,217 539,872 933,366 Manganese-based alloys 267,469 447,311 527,757 Ferrosilicon 176,447 275,368 359,374 Other silicon-based alloys 126,817 181,736 215,697 Silica fume 25,888 33,540 37,061 Energy — — 12,149 Other 84,596 137,395 156,598 Total 1,144,434 1,615,222 2,242,002 Information about major customers Total sales of $580,570 thousand, $643,689 thousand, and $758,894 thousand were attributable to the Company’s top ten customers in 2020, 2019, and 2018 respectively. During 2020, sales corresponding to Dow Silicones Corporation represented 13.2% of the Company’s sales. Sales to Dow Silicones Corporation are included partially in the Electrometallurgy - North America segment and partially in the Electrometallurgy - Europe segment. During 2019 and 2018, there was no single customer representing greater than 10% of the Company’s sales. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Goodwill | 7. Goodwill Changes in the carrying amount of goodwill during the years ended December 31, are as follows: January 1, Impairment Exchange December 31, Impairment Exchange December 31, 2019 (Note 25.5) differences 2019 (Note 25.5) differences 2020 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Globe Specialty Metals, Inc. 202,848 (174,008) 862 29,702 — — 29,702 Total 202,848 (174,008) 862 29,702 — — 29,702 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. (GSM) 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 excess of the cost of acquisition over the Company’s interest in the fair value of the identifiable assets and liabilities assumed at the date of acquisition was recorded as goodwill. During the year ended December 31, 2020, in connection with our annual goodwill impairment test, the Company did not recognize an impairment charge. During the year ended December 31, 2019, the Company recognized an impairment charge of $174,008 thousand related to the complete impairment of goodwill in Canada and partial impairment of goodwill in the United States, resulting from a decline in future estimated projections and increase of the discount rate which caused the Company to revise its expected future cash flows from its Canadian and United States business operations. The impairment charge was 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 COVID-19 recoverability and new strategic plan, and therefore could impact fair values in the future. As of December 31, 2020, and 2019 the remaining goodwill for the U.S cash-generating units is $29,702 thousand and nil, 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: 2020 2019 U.S. Canada U.S. Canada Weighted average cost of capital 10.3 % — % 11.1 % 11.5 % Long-term growth rate 2.0 % — % 2.0 % 2.0 % Normalized tax rate 21.0 % — % 21.0 % 26.6 % 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 (2021 2025), and perpetuity beyond this period. 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 including prices, volumes, costs, CAPEX and net working capital. The Company has also factored in the assumptions market recoverability, COVID and the new strategic plan. The long-term growth rate is based on long-term average growth rate in the US. 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. As of December 31, 2020, there is $96,032 thousand headroom between the carrying value of US cash generating unit including goodwill and its recoverable value. The following changes to the assumptions used in the impairment test lead to the following changes in recoverable value: Excess of Sensitivity on Sensitivity on Sensitivity on recoverable discount rate long-term growth rate cash flows value over Decrease Increase Decrease Increase Decrease Increase Goodwill carrying value by 10% by 10% by 10% by 10% by 10% by 10% (in millions of US$) Electrometallurgy - U.S. 29.7 96.0 59.4 (46.5) (6.8) 7.1 (86.6) 86.6 Total 29.7 |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 50,985 37,836 22,391 5,927 39,813 (79,517) (25,613) 51,822 Additions 870 — — — 22,842 (7,305) (211) 16,196 Disposals (553) — (5,595) (780) (8,295) 3,845 5,281 (6,097) Exchange differences (976) — (263) 2 (142) 694 468 (217) Business disposal — — — — (11,548) — 1,111 (10,437) Balance at December 31, 2019 50,326 37,836 16,533 5,149 42,670 (82,283) (18,964) 51,267 Additions 262 — — — 42,561 (7,183) — 35,640 Disposals — — — — (68,713) — — (68,713) Exchange differences 4,286 — 516 100 2,354 (3,576) (1,118) 2,562 Business disposal — — — — — — — — Balance at December 31, 2020 54,874 37,836 17,049 5,249 18,872 (93,042) (20,082) 20,756 Additions and disposals in other intangible asset in 2020 and 2019 primarily relate to the acquisition, use and expiration of rights held to emit greenhouse gasses by certain Spanish, French and Canadian subsidiaries (see Note 4.21). During 2020 the Company disposed of rights held to emit greenhouse gasses $34,209 thousand, which result in a net reduction of other intangible assets of $32,517 thousand. 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 2019 the Company disposed of FerroAtlántica, S.A.U., which resulted in a net reduction of other intangible assets of $10,437 thousand, the net gain on the disposal of FerroAtlántica, S.A.U. is disclosed in Note 29. At December 31, 2020, and 2019 the Company has no intangible assets pledged as security for outstanding bank loans and other payables. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 9. Property, plant and equipment The detail of property, plant and equipment, net of the related accumulated depreciation and impairment in 2020 and 2019 is as follows: Advances and Property, Plant Other Items of Other Fixtures, and Equipment Property, Other Items Other Items Land and Plant and Tools and in the Course of Mineral Plant and of Leased of Leased Accumulated Buildings Machinery Furniture Construction Reserves Equipment Land and Plant and Depreciation Impairment Total Buildings machinery (Note 25.3) (Note 25.5) US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2019 235,309 1,487,047 11,945 123,364 59,408 36,341 — — (907,355) (157,197) 888,862 IFRS 16 Adjustments at 1 January 2019 — — — — — — 12,417 18,055 (9,703) — 20,769 Additions 74 1,409 32 34,039 — — 777 3,089 (103,121) (1,224) (64,925) Disposals and other (13,160) (78,774) (3,399) (7,426) — (2,195) — — 48,560 48,775 (7,619) Transfers from/(to) other accounts 408 38,445 220 (39,073) — — — — — — — Exchange differences (2,822) (8,908) 36 (1,881) 94 317 104 189 9,091 2,000 (1,780) Business combinations (Note 5) — — — — — — — — — — — Business disposals (23,223) (165,382) (15) (2,372) — — — — 96,591 — (94,401) Balance at December 31, 2019 196,586 1,273,837 8,819 106,651 59,502 34,463 13,298 21,333 (865,937) (107,646) 740,906 Additions 1,391 11,095 302 27,059 — 30 3,374 1,405 (101,006) (71,929) (128,279) Disposals and other (780) (17,664) (612) (1,715) — — — — 17,337 4 (3,430) Transfers from/(to) other accounts 904 15,830 — (16,861) — — — 127 — (6,937) (6,937) Exchange differences 9,924 48,487 (87) 8,895 (177) (1,305) 916 1,581 (45,901) (4,559) 17,774 Balance at December 31, 2020 208,025 1,331,585 8,422 124,029 59,325 33,188 17,588 24,446 (995,507) (191,066) 620,034 During year ended December 31, 2020 the Company recognized an impairment of $71,929 thousand in relation to our idled capacity at the Niagara facilities in the United States $34,270 thousand, at the Polokwane facility in South Africa $8,677 thousand, at Château Feuillet facility in Europe $17,941 thousand and an impairment of $11,041 thousand in relation to our solar-grade silicon metal project in Puertollano, Spain. During 2019 the Company disposed of FerroAtlántica, S.A.U. and Ultracore Polska Zoo, which resulted in a net reduction of property, plant and equipment of $94,401 thousand. The net gain on the disposal of FerroAtlántica, S.A.U. is disclosed in Note 29 and the net loss on disposal of Ultracore Polska ZOO is included in Note 25.6. During 2019 the Company liquidated Ganzi Ferroatlántica Silicon Industry Company, Ltd. and started the process of liquidation of Mangshi Sinice Silicon Industry Company Limited, which resulted in the reduction of impairment of $48,775 thousand. 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. As of December 31, 2019, the Company continued to recognize these project assets as $40,590 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 . As of December 31, 2020 the valuation of these assets has been reassessed and impairment of $11,041 thousand has been registered, leaving a remaining value of $33,537 thousand. As at December 31, 2020 the Company tested property, plant and equipment for impairment, estimating 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, based on management’s business plans. Recoverable values were estimated by determining the value in use for all assets, with the exception of our solar-grade silicon metal project based in Puertollano, Spain, Château-Feuilltet plants in France and our silicon metal plant in Polokwane, South Africa for which the recoverable value was determined by independent valuation experts at fair value and the key assumptions used in the measurement of fair value measurements has been categorised within level “3”. No impairment for property, plant and equipment was recognized during the year ended December 31, 2020, except the impairments mentioned in previous paragraphs. Transfer from (to) other accounts as of December 31, 2020 only includes $6,937 thousand from OpCo related to the contract signed with Aurinka. At December 31, 2020 and 2019, the Company has no property, plant and equipment pledged as security for outstanding bank loans and other payables. Commitments At December 31, 2020 and 2019, the Company has capital expenditure commitments totaling $2,605 thousand and $15,635 thousand, respectively, primarily related to maintenance and improvement works at plants. |
Financial assets and other rece
Financial assets and other receivables | 12 Months Ended |
Dec. 31, 2020 | |
Other financial assets | |
Financial assets and other receivables | 10. Financial assets and other receivables The company’s financial assets and their classification under IFRS 9 are as follows: 2020 classification Note Amortised cost Fair value through profit or loss - mandatorily measured Fair value through other comprehensive income - designated Total US$'000 US$'000 US$'000 US$'000 Other financial assets 10.1 3,456 2,609 — 6,065 Receivables from related parties 23 5,530 — — 5,530 Trade receivables 10.2 202,233 — — 202,233 Other receivables 10.2 3,847 — — 3,847 Cash and cash equivalents 102,714 — — 102,714 Restricted cash 28,843 — — 28,843 Total financial assets 346,623 2,609 — 349,232 a. As of year ended December 31, 2020, Cash and cash equivalents and restricted cash comprise the following: 2020 2019 US$'000 US$'000 Cash and cash equivalents 102,714 94,852 Current - Non Current restricted cash presented as Cash 28,843 28,323 Escrow: Hydro sale 6,136 5,617 ABL 22,500 22,500 Others 207 206 Total 131,557 123,175 The escrow was constituted in August 30, 2019, in consideration of FAU sale; under agreement terms, the Purchaser and the Seller deposited in a restricted bank account a part of the share purchase price, guaranteeing any compensation to the purchaser for any claim under the contract. In relation to the ABL Restricted cash, the amount constituted is fixed by agreement as liquidity covenants, see Note 16. 10.1 Other financial assets At December 31, 2020, other financial assets comprise the following: 2020 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Other financial assets at amortised cost 3,456 — 3,456 Listed equity securities 1,601 1,008 2,609 Total 5,057 1,008 6,065 Other financial assets at amortized cost mainly comprises deposits given to French government by Ferropem ($2,679 thousands), a Ferroglobe subsidiary, in respect of effort de construction . The law in France requires employers and companies to provide a certain size to invest a portion of their budget in the construction or renovation of housing (including through direct investment, providing mortgages, and other). In this case, the mandatory contribution has been made in the form of a loan, to be returned by the French government in twenty years. Listed equity securities comprises investments held by Globe Argentina Metales in Pampa Energía. At December 31, 2019, other financial assets comprise the following: 2019 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Other financial assets at amortised cost 2,618 — 2,618 Listed equity securities — 5,544 5,544 Total 2,618 5,544 8,162 Securitization of trade receivables On July 31, 2017, the Company entered into an accounts receivable securitization program (the “Program”) where trade receivables generated by the Company’s subsidiaries in the United States, Canada, Spain and France were sold to Ferrous Receivables DAC, a special purpose entity domiciled and incorporated in Ireland (the “SPE”). As sales of the Company’s products to customers occurred, eligible trade receivables were sold to the SPE at an agreed upon purchase price. Part of the consideration was received upfront in cash and part was deferred in the form of senior subordinated and junior subordinated loans notes issued by the SPE to the selling entities. The SPE purchased the receivables at a slight discount to invoice value in order to pay certain expenses and fees related to the receivables including the costs of servicing the portfolio, the costs servicing the debt incurred to fund the purchase and any administrative costs. This discount was sized to adequately to cover any and all expenses required of the SPE. At December 31, 2018, up to $303,000 thousand of upfront cash consideration could be provided by the SPE under the Program, financed by ING Bank N.V. (“ING”), as senior lender and Finacity Capital Management Inc. (“Finacity”), as intermediate subordinated lender and control party. In respect of trade receivables outstanding at December 31, 2018, the SPE provided upfront cash consideration of approximately $227,360 thousand. On October 11, 2019, the Company’s subsidiaries in the United States and Canada repurchased all outstanding receivables that had they had previously sold to the SPE so that they could form part of the borrowing base for the North American asset-based revolving credit facility (the “ABL Revolver”). During 2019, following certain termination events under the Program, ING’s senior loan commitments were reduced to $75,000 thousand and the Company and ING agreed the Program would terminate during the fourth quarter of 2019, unless otherwise refinanced. On December 10, 2019, the Company refinanced the Program and amended and restated its terms. The SPE repaid the remaining senior loans to ING with the proceeds of new senior loans issued by an affiliate of Sound Point Capital Management LP. The new senior lender’s commitments under the amended and restated securitization program are $150,000 thousand, of which $104,130 was drawn at December 31, 2019. Finacity remained as intermediate subordinated lender and the Company’s European subsidiaries continued as senior subordinated and junior subordinated lenders as well as having a new interest in the senior and intermediate subordinated loan tranches. The Program has a initial duration of two-year until December 10, 2021. On February 6, 2020, the Company entered into an amended and restated accounts receivables securitization program via which trade receivables generated by certain of the Company’s subsidiaries in Spain and France are financed both directly through the existing Irish special purpose vehicle (“SPE”) and indirectly through a French “fonds commun de titrisation”. The incorporation of the “fonds commun de titirsation” into the program has allowed for the sale of certain Euro-denominated receivables that were not eligible under the previous structure and increased the available funding. The senior lender’s commitments under the amended and restated securitization program are $150,000 thousand. Finacity remained as intermediate subordinated lender providing a cash consideration of $2,808 thousand, and the Company’s European subsidiaries continued as senior subordinated and junior subordinated lenders as well as, having interests in the senior and intermediate subordinated loan tranches. On October 2, 2020, the Company ended the receivables funding agreement and cancelled the securitization program, signing a new factoring agreement with a Leasing and Factoring Agent, for anticipating the collection of receivables of the Company’s European entities (Grupo FerroAtlántica, S.A. and FerroPem S.AS). As a result of the agreement, the Leasing and Factoring Agent provided a cash consideration of circa $48.8 million, repurchased the receivables portfolio sold to the SPE on September 28, and consequently assumed the loan tranche of the senior borrower to the SPE. Also, the Senior loan and intermediate subordinate loan tranches were paid with internal sources of funds, at closing, there was cash release of $18 million from restricted cash relating to a special purpose vehicle under prior securitization program (see Note 16). Due to the termination of he receivables funding agreement and cancelation of the securitization program at October 2, 2020, the Company registered a finance cost of $7,591 thousand. During the year ended December 31, 2020, the Company has repaid $107,657 thousand (EUR 95,695 thousand) in order to, prior to the termination of receivables funding agreement, optimize the level of borrowings of the SPE with the level of receivables in the securitization, and cancel all commitments in respect of loan tranches held by the Company. 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 variable returns from its involvement in the SPE as it is exposed to credit risk as a subordinated lender to the SPE and it earns a variable amount of remuneration as master servicer of the receivables, as well as any excess return from additional service fee, including the loss or gain due to the effect of foreign exchange rates. As master servicer, Ferroglobe is responsible for the cash collection and management of any impaired receivables. Finacity, in addition to being intermediate subordinated lender, is the backup servicer and has the unilateral right to remove Ferroglobe as master servicer and manage impaired receivables. Until September 5, 2019, this right was considered to be substantive and therefore that Finacity had power and control over the SPE and that the SPE was not consolidated by Ferroglobe. Considering the risk exposure for each lender at September 5, 2019 and subsequently, including under the amended and restated program effective December 10, 2019, it is not considered that Finacity has a risk exposure such as to be considered substantive. Therefore, Ferroglobe is now considered to have control over the SPE as it is exposed to variable returns and has the ability to affect those returns through its power over the investee. Accordingly, Ferroglobe has consolidated the SPE with effect from September 5, 2019. Transactions with the SPE prior to consolidation during year ended December 31, 2019 Prior to the consolidation of the SPE on September 5, 2019, Company sold approximately $1,127 million of trade receivables to the SPE during the year ended December 31, 2019. 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 $12,210 thousand and has been recognized within finance costs in the consolidated income statement. As a lender to the SPE, the Company earned interest on its senior subordinated and junior subordinated loan receivables. During the year ended December 31, 2019, the Company earned interest of $1,130 thousand in respect of these loan receivables, recognized within finance income in the consolidated income statement. 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 due to the percentage but depends on the volume of assets and an additional servicing fee which entitles the Company to a residual interest upon monthly liquidation of the SPE. The additional servicing fee will only be paid out on monthly liquidation of the SPE and from any excess cash flows remaining after all lenders to the SPE have been repaid. This results in the Company being exposed to variable returns. During the year ended December 31, 2019, the Company earned fixed-rate servicing fees of $1,531 thousand and additional servicing fees of $4,790 thousand. Restrictions on the use of group assets At December 31, 2020, following termination events on securitization program, the SPE did not held any cash in the consolidated financial statements of the Company. At December 31, 2019, the SPE held cash of $38,778 thousand and this is consolidated by the Company and included in the cash and cash equivalents balance. Cash held by the SPE can be used to repay the SPE’s borrowings (see Note 16), pay interest and expenses incurred by the SPE, purchase new trade receivables from the Ferroglobe entities participating in the Program and repay loan notes issued to Ferroglobe entities, subject to continuing to meet the Program’s collateral and minimum liquidity requirements. At December 31, 2019, $3,448 thousand of cash held by the SPE was available to repay subordinated loan notes to Ferroglobe entities and therefore available for use by the wider group. On October 2, 2020, prior to the termination of the securitization program, the SPE held trade receivables of $53.1 million. At December 31, 2019, the SPE held trade receivables of $90.1 million and these were consolidated by the Company (2018: the SPE was not consolidated). The proceeds from the collection of the SPE’s receivables can be used to repay the SPE’s borrowings. At December 31, 2020, current restricted cash comprises cash in relation to the ABL, the amount constituted is fixed by agreement as liquidity covenants $22,500 thousand, see Note 16, and the guarantees taken over escrow account $6,136 thousand. The escrow was constituted in August 30, 2019, in consideration of previous FerroAtlántica; under agreement terms, the Purchaser and the Seller deposited in a restricted bank account a part of the share purchase price, guaranteeing any compensation to the purchaser for any claim under the contract. 10.2 Trade and other receivables Trade and other receivables comprise the following at December 31: 2020 2019 US$'000 US$'000 Trade receivables 203,930 237,022 Less – allowance for doubtful debts (1,697) (4,543) 202,233 232,479 Tax receivables (1) 13,166 45,948 Government grant receivables 23,016 19,748 Other receivables 3,847 10,889 Total 242,262 309,064 (1) “Tax receivables” is primarily related to VAT receivables, which are recovered either by offsetting against VAT payables or are expected to be refunded by the tax authorities in the relevant jurisdictions. The trade and other receivables disclosed above are short-term in nature and therefore their carrying amount is considered to approximate their fair value. The changes in the allowance for doubtful debts during 2020 and 2019 were as follows: Allowance US$'000 Balance at January 1, 2019 4,964 Impairment losses recognized 2,517 Amounts written off as uncollectible (100) Changes in the scope of consolidation (2,750) Exchange differences (88) Balance at December 31, 2019 4,543 Impairment losses recognized 504 Amounts written off as uncollectible (3,666) Changes in the scope of consolidation — Exchange differences 315 Balance at December 31, 2020 1,697 Factoring of trade receivables On October 2, 2020, the Company ended the receivables funding agreement over European receivables, signing a new factoring agreement with a Leasing and Factoring Agent, for anticipating the collection of receivables of the Company’s European entities (Grupo FerroAtlántica, S.A. and FerroPem S.AS). As a result of the agreement, the Agent provided a cash consideration of circa $48.8 million, repurchased the receivables portfolio sold to the SPE on September 28, and consequently assumed the loan tranche of the senior borrower to the SPE. Also, the senior loan and intermediate subordinate loan tranches were paid with internal sources of funds, terminating the financing structure of the securitization program. The main characteristics of the agreement are the following: - the maximum cash consideration advanced for the financing facility is up to EUR 60,000 thousand; - over collateralization of 10% of accounts receivable as guarantee provided to the Agent until payment has been satisfied; - Annual fee of 0.15% applied to the annual revenues ceded to the Agent; - Financing commission of 1% charged annually; Other conditions are set in relation to credit insurance policy has been structured in an excess of loss policy where the first EUR 5,000 thousand of bad debt losses are not covered by the insurance provider. The Company has assumed the cash collateralization for the entire excess of loss, as agreed in contractual terms. During the three months ended December 31, 2020, the new factoring agreement provided upfront cash consideration of approximately $169,105 thousand. The Company has repaid $95,800 thousand, showing at December 31, 2020, an on-balance sheet bank borrowing debt of $74,844 thousand, see Note 16. At December 31, 2020, the Company held $89,154 thousand of accounts receivables recognized in consolidated balance sheet in respect of factoring agreement. Finance costs incurred during the year ended December 31, 2020, amounts $916 thousand, recognized in finance costs in the consolidated income statement. Judgements relating to the recognition criteria The Company has assessed whether it has transferred substantially all risks and rewards, continuing to be exposed to the variable returns from its involvement in the factoring agreement as it is exposed to credit risk, so the conclusion is that the derecognition criteria is not applicable and therefore, the account receivables sold is presented in the balance and a obligation is recognized as bank borrowings for the amount of cash advanced by the Leasing and Factoring Agent. The amount repayable under the factoring agreement is presented as on-balance sheet factoring and the debt assigned to factoring is showed as bank borrowings. See Note 16. 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, 2020, the Company recognized $30,420 thousand of income related to government grants, the amount was deducted against the related expense in cost of sales (2019: $33,327 thousand of income, of which $33,327 thousand was deducted against the related expense in cost of sales). 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. Factoring of other receivables The Company had $2,190 thousand of factoring without recourse arrangements for receivables as of December 31, 2020, debt is showed off-balance sheet . The Company had no factoring without recourse arrangements as of December 31, 2019. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories. | |
Inventories | 11. Inventories Inventories comprise the following at December 31: 2020 2019 US$'000 US$'000 Finished goods 100,711 158,056 Raw materials in progress and industrial supplies 99,259 140,689 Other inventories 46,274 54,564 Advances to suppliers 305 812 Total 246,549 354,121 During 2020 the Company recognised an expense of $1,939 thousand (2019: $4,295 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, see Note 4.8. At December 31, 2020, approximately $25 million of inventories in the Company’s subsidiaries in the United States and Canada were pledged forming part of the borrowing base for the North American asset-based revolving credit facility (the “ABL Revolver”). At December 31, 2019, amount of pledged inventories was $33 million (see Note 30). |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2020 | |
Other assets abstract | |
Other assets | 12. Other assets Other assets comprise the following at December 31, 2020: 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Guarantees and deposits given 10,290 253 10,543 1,100 9 1,109 Prepayments and accrued income — 10,656 10,656 10 13,415 13,425 Other assets 1,614 9,805 11,419 487 10,252 10,739 Total 11,904 20,714 32,618 1,597 23,676 25,273 At December 31, 2020, the figure in Guarantees and deposits given increased due to factoring and amounts related to security deposits with EDF Entreprises, made during the year in “FerroPem S.A.S”. At December 31, 2020, the figure in Prepayments and accrued income decreased due to prepayments registered in “FerroPem S.A.S” as of December 31, 2019. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
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 years ended December 31, 2019 and December 31, 2020, the Company did not issue new ordinary shares of any class. At December 31, 2020, 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, (2019: 170,863,773 ordinary shares in issue with a par value of $0.01, for a total issued share capital of $1,784 thousand). At December 31, 2020, the Company’s largest shareholder is as follows: Number of Shares Percentage of Name Beneficially Owned Outstanding Shares (*) Grupo Villar Mir, S.A.U. 91,125,521 % (*) 169,197,366 ordinary shares were outstanding at 31 December 2020, comprising 170,863,773 shares in issue less 1,666,407 shares held in treasury Valuation adjustments Valuation adjustments comprise the following at December 31: 2020 2019 US$'000 US$'000 Actuarial gains and losses 4,833 1,248 Hedging instruments and other 922 (3,417) Total 5,755 (2,169) Changes in actuarial gain and losses are due to remeasurements of the net defined benefit liability, see Note 15. 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 asset-based loans; 3. debt instruments, including the senior Notes due 2022. Although the factoring with recourse agreement has been part of the Company’s consolidated Balance since October 1, 2020, the Company continues in its efforts to focus on optimizing its working capital. Capital Raising and Extension of the Maturity of the Notes Beginning in 2021, we engaged in discussions with a committee of holders of the Notes (the “Ad Hoc Group Noteholders”) to put forward a plan to refinance the Notes and restructure our balance sheet. On March 27, 2021, Ferroglobe and Globe entered into a lock-up agreement (the “Lock-Up Agreement”) with the Ad Hoc Group Noteholders, Grupo VM and affiliates of Tyrus Capital that set forth a plan to implement this restructuring. The principal elements of the restructuring, as set forth below, are inter-conditional and must be completed by September 28, 2021, unless extended by agreement, see Note 30. Issuance of $60 million of new senior secured notes Issuance of $40 million in new equity of Ferroglobe Extension of the maturity date of the Notes from March 31, 2022 to December 31, 2025 and amendment of certain other terms. As of the date of the consolidated financial statements, holders holding approximately 96% in aggregate principal amount of Notes have signed a lock-up agreement (the “Lock-Up Agreement”) with the Ad Hoc Group Noteholders, Grupo VM and affiliates of Tyrus Capital to support the proposed restructuring as set out in the Lock-Up Agreement and including an extension of the bond maturity, but there can be no assurance that such support will not be withdrawn prior to implementation of the proposed restructuring or that, if withdrawn, additional consents required to implement the proposed restructuring will be obtained. As a result of these uncertainties, we cannot assure you that the proposed restructuring will be implemented at the end. In addition to the extension and new terms agreed on the Senior Notes, the company entered into a Lock-Up agreement with members of an “Ad Hoc-Group”, being existing note holders representing in aggregate approximately 60% of the 2022 Senior Notes, and Tyrus Capital (“Tyrus”) as backstop provider in respect of a $40 million equity raise forming part of the transaction. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of financial covenants. To maintain or adjust the capital structure, the Company may restructure or issue new borrowings or debt, make dividend payments, return capital to shareholders or issue new shares. Management’s review of the Company’s capital structure includes monitoring of the leverage ratio, which was as follows at December 31: 2020 2019 2018 US$'000 US$'000 US$'000 Gross financial debt (*) 551,547 606,361 645,389 Cash, restricted cash and cash equivalents (131,557) (123,175) (216,647) Total net financial debt 419,990 483,186 428,742 Total equity (**) 365,719 602,297 884,372 Total net financial debt / total equity 114.84 % 80.22 % 48.48 % (*) (**) 2020 2019 2018 Balance Balance Balance US$'000 % US$'000 % US$'000 % Non-current gross financial debt 394,985 71.61 % 548,531 90.46 % 560,738 86.88 % Current gross financial debt 156,562 28.39 % 57,830 9.54 % 84,651 13.12 % Total gross financial debt 551,547 100.00 % 606,361 100.00 % 645,389 100.00 % 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. The share repurchase program resulted in 1,152,958 ordinary shares purchased and cancelled and 1,741,091 ordinary shares purchased into treasury, all of which remained held in treasury at December 31, 2018. During the years ended December 31, 2019 and December 31, 2020, there were not new shares repurchased by the Company. Dividends There have not been dividends paid or proposed by the Company during the year ended December 31, 2020 neither during the year ended December 31, 2019. On May 21, 2018, the 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, the Board of Directors approved an interim dividend per ordinary share of $0.06. The dividend totaling $10,321 thousand, was paid on September 20, 2018 to shareholders of record at the close of business on September 5, 2018. Non-controlling interests The changes in non-controlling interests in the consolidated statements of financial position in 2020 and 2019 were as follows: Balance US$'000 Balance at January 1, 2019 116,145 Loss for the year (5,039) Increase of Parent’s indirect ownership interest in FerroAtlántica de Venezuela S.A. 5,881 Translation differences and other 1,090 Balance at December 31, 2019 118,077 Loss for the year (3,419) Translation differences and other (154) Balance at December 31, 2020 114,504 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, 2020 and 2019, the balance of Non-controlling interest related to WVA was $70,270 thousand and $73,945 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, 2020 and 2019, the balance of non-controlling interest related to QSLP was $44,808 thousand and $44,224 thousand, respectively. 2020 2019 WVA QSLP WVA QSLP US$'000 US$'000 US$'000 US$'000 Statement of Financial Position Non-current assets 80,887 67,806 80,923 63,639 Current assets 58,404 37,095 56,839 30,931 Non-current liabilities 14,677 18,186 14,677 19,944 Current liabilities 23,208 16,320 27,579 7,277 Income Statement Sales 156,995 70,637 167,503 78,414 Operating profit 5,900 3,113 6,688 252 Profit before taxes 5,900 2,898 6,423 (36) Net (loss) income 3,008 1,666 3,276 (70) Cash Flow Statement Cash flows from operating activities 28,683 15,387 2,287 3,720 Cash flows from investing activities (7,977) (5,227) (2,256) (3,544) Cash flows from financing activities — — — 227 Exchange differences on cash and cash equivalents in foreign currencies — 45 — 149 Beginning balance of cash and cash equivalents 6,566 2,319 6,535 1,767 Ending balance of cash and cash equivalents 27,272 12,524 6,566 2,319 |
Earnings (loss) per ordinary sh
Earnings (loss) per ordinary share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Earnings (loss) per ordinary share | 14. Earnings (loss) per ordinary share Basic earnings (loss) per ordinary share are calculated by dividing the consolidated profit (loss) for the year attributable to the Parent by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares held in the year, if any. Dilutive earnings (loss) per share assumes the exercise of stock options, provided that the effect is dilutive. 2020 2019 2018 Basic earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) (246,339) (280,601) 43,661 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Basic earnings (loss) per ordinary share (US$) (1.46) (1.66) 0.25 Diluted earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) (246,339) (280,601) 43,661 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Effect of dilutive securities — — 123,340 Weighted average dilutive shares outstanding 169,269,281 169,152,905 171,529,612 Diluted earnings (loss) per ordinary share (US$) (1.46) (1.66) 0.25 Potential ordinary shares of 57,458, of 445,008, and of 269,116 were excluded from the calculation of diluted earnings (loss) per ordinary share in 2020, 2019, and 2018 respectively because their effect would be anti-dilutive. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Provisions | 15. Provisions Provisions comprise the following at December 31: 2020 2019 Non- Current Current Total Non- Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Provision for pensions 56,395 191 56,586 56,679 1,050 57,729 Environmental provision 2,910 1,256 4,166 2,923 1,185 4,108 Provisions for litigation — 1,355 1,355 — 3,905 3,905 Provisions for third-party liability 10,759 — 10,759 9,263 — 9,263 Provisions for C02 emissions allowances — 40,161 40,161 5,776 29,162 34,938 Other provisions 38,423 12,333 50,756 10,211 10,789 21,000 Total 108,487 55,296 163,783 84,852 46,091 130,943 The changes in the various line items of provisions in 2020 and 2019 were as follows: Provisions for Provisions for Provisions for Provision for Environmental Litigation Third CO2 Emissions Other Pensions Provision in Progress Party Liability Allowances Provisions Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2019 52,726 3,211 2,399 7,270 27,970 22,781 116,357 Charges for the year 7,444 820 2,166 2,361 18,794 2,958 34,543 Provisions reversed with a credit to income (1,798) — — (74) — (1,101) (2,973) Amounts used (2,019) — (650) (179) (9,452) (723) (13,023) Provision against equity 2,244 — — — — — 2,244 Exchange differences and others (868) 77 (10) (115) (249) (441) (1,606) Disposals from business divestitures — — — — (2,125) (2,474) (4,599) Balance at December 31, 2019 57,729 4,108 3,905 9,263 34,938 21,000 130,943 Charges for the year 5,340 117 184 268 38,249 30,890 75,048 Provisions reversed with a credit to income (1,843) — — — — (1,972) (3,815) Amounts used (3,514) (26) (2,886) (198) (35,860) — (42,484) Provision against equity (3,260) — — 568 — — (2,692) Exchange differences and others 2,134 (33) 152 858 2,834 838 6,783 Balance at December 31, 2020 56,586 4,166 1,355 10,759 40,161 50,756 163,783 The main provisions relating to employee pensions are as follows: France These relate to various obligations assumed by FerroPem, SAS with various groups of employees relate to long-service benefits, medical insurance supplements and retirement obligations, all of which are defined unfunded benefit obligations, whose changes in 2020 and 2019 were as follows: 2020 2019 US$'000 US$'000 Obligations at the beginning of year 32,795 28,049 Current service cost 1,580 1,951 Borrowing costs 242 524 Actuarial differences (2,170) 4,432 Benefits paid (1,037) (1,581) Exchange differences 3,086 (580) Obligations at the end of year 34,496 32,795 At December 31, 2020 and 2019 the effect of a 1% change in discount rate would have resulted in a change to the provision of approximately $4,953 thousand and $4,767 thousand, respectively. The following table reflects the gross benefit payments that are expected to be paid for the benefit plans for the year ended December 31, 2020: 2020 US$'000 2021 1,128 2022 1,129 2023 2,018 2024 2,322 2025 1,691 Years 2026-2030 9,065 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 2020 and 2019 were as follows: 2020 2019 US$'000 US$'000 Obligations at beginning of year 4,601 5,429 Current service cost 47 90 Borrowing costs 435 511 Actuarial differences (1,238) (1,291) Benefits paid (278) (254) Exchange differences (106) 116 Obligations at end of year 3,461 4,601 At December 31, 2020 and 2019, the effect of a 1% change in the cost of the medical aid would have resulted in a change to the provision of approximately $378 thousand and $562 thousand, respectively. The breakdown, in percentage, of the plan assets are as follows: 2020 2019 Cash 1.84 % 1.50 % Equity 41.70 % 42.25 % Bond 18.53 % 15.64 % Property 1.68 % 2.78 % International 32.02 % 32.51 % Others 4.23 % 5.32 % Total 100.00 % 100.00 % As of December 31, 2020 and 2019 the Plan assets amounted to $2,204 thousand and $2,126 thousand, respectively. Changes in the fair value of plan assets linked to the defined benefit plans in South Africa were as set forth in the following table: 2020 2019 US$'000 US$'000 Fair value of plan assets at the beginning of the year 2,126 1,906 Interest income on assets 200 194 Benefits paid — — Actuarial differences (77) (81) Other (45) 107 Fair value of plan assets at the end of the year 2,204 2,126 Actual return on assets 122 113 Venezuela Benefit Plan The company FerroVen has pension obligations to all of its employees who, once reaching retirement age, have accumulated at least 15 years of service to the company and receive a Venezuelan Social Security Institute (IVSS) pension. In addition to the pension paid by the IVSS, 80% of the basic salary accrued when the pension benefit is awarded is guaranteed and paid by means of a lifelong monthly pension. The most recent of the present value of the defined benefit obligation actuarial valuation was determined at December 31, 2020 by independent actuaries. The present value of the obligation for defined unfunded benefit cost, the current service cost and past service cost were determined using the projected unit credit method. In this regards, the changes of this provision in 2020 and 2019 2020 2019 US$'000 US$'000 Obligations at the beginning of year 2,577 534 Current service cost 26 50 Borrowing costs 596 1,128 Benefits paid (2) (3) Exchange differences (956) (1,200) Other (2,220) 2,068 Obligations at the end of year 22 2,577 The summary of the main actuarial assumptions used to calculate the aforementioned obligations is as follows: France South Africa Venezuela 2020 2019 2020 2019 2020 2019 Salary increase 1.60%-6.10% 1.60%-6.10% 5.80%-9.10% 7.10%-7.60% % % % Discount rate 0.75% 0.75% 9.80%-13.2% 9.5%-10.7% % % % Expected inflation rate 1.60% 1.60% 4.80%-7.60% 5.1%-6.1% % % % Mortality TGH05/TGF05 TGH05/TGF05 SA 85-90 / PA (90) SA 85-90 / PA (90) GAM 83 UP94 Retirement age 65 65 63 63 62-63 High percentages are driven by driven by hyperinflationary economy in Venezuela. 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, 2020 and 2019: 2020 2019 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 39,214 28,110 9,632 76,956 37,272 25,626 8,739 71,637 Fair value of plan assets (36,011) (22,337) — (58,348) (33,620) (20,260) — (53,880) Provision for pensions 3,203 5,773 9,632 18,608 3,652 5,366 8,739 17,757 All North American pension and post-retirement plans are underfunded. At December 31, 2020 and 2019, the accumulated benefit obligation was $67,324 thousand and $62,898 thousand for the defined pension plan and $9,632 thousand and $8,739 thousand for the post-retirement plans, respectively. The assumptions used to determine benefit obligations at December 31, 2020 and 2019 for the North American plans are as follows: North America – 2020 North America – 2019 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 2.25% 2.61% 2.75% 3.00% 3.15% 3.15% Expected inflation rate N/A N/A N/A N/A N/A N/A Mortality Pri-2012 Blue Collar Mortality CPM2014-Private CPM2014-Private Scale CPM-B Pri-2012 Blue Collar Mortality CPM2014-Private CPM2014-Private Scale CPM-B Retirement age 65 58-60 58-60 65 58-60 58-60 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 2020 and 2019 and the Mercer Proprietary Yield Curve for 2020 and 2019 for 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 $1,304 thousand to the defined benefit pension and post-retirement plans for the year ending December 31, 2020. The following reflects the gross benefit payments that are expected to be paid in future years for the benefit plans for the year ended December 31: Non-pension Postretirement Pension Plans Plans US$'000 US$'000 2021 3,281 192 2022 3,300 189 2023 3,363 204 2024 3,402 214 2025 3,492 240 Years 2026-2030 17,561 1,550 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 5.2% for 2020 and decreasing to an ultimate rate of 4.0% in fiscal 2040. At December, 31 2020 and 2019, the effect of a 1% increase in health care cost trend rate on the non-pension postretirement benefit obligation is $2,085 thousand and $1,809 thousand, respectively. At December, 31 2020 and 2019 the effect of a 1% decrease in health care cost trend rate on the non-pension postretirement benefit obligation is ($1,567) thousand and ($1,374) thousand. The changes to these obligations in the current year ended December 31, 2020 were as follows: 2020 USA Canada Pension Pension Post-retirement Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 Obligations at the beginning of year 37,272 25,626 8,739 71,637 Service cost 147 149 330 626 Borrowing cost 1,085 800 275 2,160 Actuarial differences 3,020 2,252 278 5,550 Benefits paid (2,083) (1,249) (170) (3,502) Exchange differences 532 180 712 Expenses (227) — — (227) Obligations at the end of year 39,214 28,110 9,632 76,956 The plan assets of the defined benefit and retirement and post-retirement plans in North America are comprised of assets that have quoted market prices in an active market. The breakdown as of December 31, 2020 and 2019 of the assets by class are: 2020 2019 Cash 33 % 1 % Equity Mutual Funds 10 % 44 % Fixed Income Securities 32 % 55 % Assets held by insurance company 25 % — % Total 100 % 100 % For the year ended December 31, 2020, the changes in plan assets were as follows: 2020 USA Canada Pension Pension Plans Plans Total US$'000 US$'000 US$'000 Fair value of plan assets at the beginning of the year Interest income on assets 973 530 1,503 Benefits paid (2,083) (1,187) (3,270) Actuarial return on plan assets 3,681 1,070 4,751 Exchange differences — 711 711 Other (180) 953 773 Fair value of plan assets at the end of the year 36,011 22,337 58,348 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. Provisions for third-party liability Environmental provision Environmental provisions relate to $2,910 thousand of non-current environmental rehabilitation obligations as of December 31, 2020 (2019: $2,923 thousand) and $1,256 thousand of current environmental rehabilitation obligations as of December 31, 2020 (2019: $1,185 thousand). Provisions for litigation Certain employees of FerroPem, SAS, 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 $1,080 thousand during the year ended December 31, 2020 as part of the current portion of Provisions for litigation (2019: $1,166 thousand). See Note 24 for further information. The timing and amounts potential liabilities arising from such exposures is uncertain. The provision reflects the Company’s best estimate of the expenditure required to meet resulting obligations. Provisions for third-party liability Provisions for third-party liability relate to current obligations ($10,759 thousand) relating to health costs for retired employees (2019: $9,263 thousand) in the The Company’s subsidiary, FerroPem, SAS. The following table reflects the gross benefit payments that are expected to be paid for the benefit plans for the year ended December 31, 2020: 2020 US$'000 2021 - 2022 585 2023 293 2024 292 2025 293 Years 2026-2030 1,499 The subsidiary recognized provisions in this connection based on an actuarial study performed by an independent expert. 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 include taxes of $6,053 thousand (2019: $4,866 thousand) and other provisions of $44,703 thousand (2019: $16,134 thousand); $31,815 thousand are related to the tolling agreement with Cee-Dumbria facility as detailed in the below paragraph and $7,118 thousand are related to the accrued estimated costs of reclaiming the land after it has been mined for gravel or coal. In November 2020, the Tribunal Superior de Justicia de Galicia dismissed the request of separation of the Cee-Dumbria's hydroelectric plants and the ferroalloys plants. Grupo FerroAtlantica, S.A.U. has appealed the Sentencia to the Supreme Court and are awaiting the admission of the appeal. As a consequence of the court´s ruling, the Company has reconsidered to estimate on the term of the tolling agreement with Cee-Dumbria ferroalloys plant. The Company has recorded a provision amounting to $31,815 thousand (EUR 25,927 thousand). |
Bank borrowings
Bank borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [abstract] | |
Bank borrowings | 16. Bank borrowings Bank borrowings comprise the following at December 31: 2020 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 100,000 — 27,237 27,237 Borrowings from receivable factoring facility 73,626 — 74,844 Other loans — 5,277 249 5,526 Total 5,277 102,330 107,607 2019 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 100,000 45,449 12,600 58,049 Other loans 150,000 98,939 2,011 100,950 Total 144,388 14,611 158,999 Credit facilities Credit facilities comprise the following at December 31: 2020 2019 US$'000 US$'000 Secured loans carried at amortised cost Principal amount 31,155 62,835 Unamortised issuance costs (3,918) (4,786) Accrued interest — — Total 27,237 58,049 Amount due for settlement within 12 months 27,237 12,600 Amount due for settlement after 12 months — 45,449 Total 27,237 58,049 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. The Revolving Credit Facility was amended further on September 30, 2019, reducing the size of the facility from $200,000 thousand to $150,000 thousand. On October 11, 2019, the Revolving Credit Facility was repaid using the proceeds from the ABL Revolver and existing cash and cash equivalents, in the amounts of $134,570 thousand. On October, 11, 2019, Ferroglobe subsidiaries Globe Specialty Metals, Inc., and QSIP Canada ULC, as borrowers, entered into a Credit and Security Agreement for a new $100 million north American asset-based revolving credit facility (the “ABL Revolver”), with PNC Bank, N.A., as lender. The maximum advances granted by the lender are up to the lesser of (a) $100 million and (b) the Formula Amount. The Formula Amount at any time will be determined by reference to the most recent Borrowing Base Certificate delivered to PNC Bank, N.A. (the Agent), and is equal to (a) up to 85% of Eligible Receivables plus (b) the lesser of: · up to 75% of the cost of Eligible Inventory and eligible foreign-in transit inventory; · up to 85% of the appraised net orderly liquidation value of Eligible inventory, minus (c) Reserves, if any. The Formula Amount is subject to the following limits: · inventory to account for up to 65% of the Formula Amount; · Canadian inventory up to $20 million; · eligible in-transit inventory of up to $10 million; · consigned inventory of up to $10 million; · consigned inventory of up to $7.5 million; · stores and spare parts inventory of up to $2 million; · packaging materials inventory of up to $500 thousand; and · receivables aged 90 to 120 days due of up to $5 million. Subject to certain exceptions, loans under the ABL Revolver may be borrowed, repaid and reborrowed at any time until the facility’s expiration date. The legal maturity date of the ABL Revolver is October 11, 2024, which is five years after the initial drawdown under the facility. Notwithstanding this, the terms of the facility provide a spring forward provision which requires the ABL Revolver to be repaid on the date which is three (3) months prior to the maturity date of the senior Notes (March 1, 2022), which would currently imply a facility repayment date of December 1, 2021. Accordingly the ABL has been reclassified to short term as at December 31, 2020. This spring forward provision would adjust in respect of a refinancing of the senior Notes to be the date which is three (3) months prior to the date of any permitted refinancing of the Notes. There is a provision in the ABL Revolver credit agreement which requires the approval of PNC Bank, as agent on behalf of the lender, to the terms of any refinancing of the senior unsecured Notes and provides, inter alia , that the maturity date of such of refinancing shall be no earlier than January 9, 2025. Interest Rates Under the ABL Revolver, and in respect of LIBOR Rate Loans, the interest to be paid will be LIBOR plus aplicable margin, and in respect of Domestic Rate Loans, the interest will be ABR plus aplicable margin. ABR shall mean the highest of (i) the PNC Bank prime rate, (ii) overnight bank funding rate plus 0.5% and (iii) daily LIBOR plus 1.0%. The applicable margin is based on the average undrawn availability of the ABL Revolver. The undrawn availability is an amount equal to: · the lesser of (i) $100 million and (ii) the Formula Amount; minus · the maximum undrawn amount of $10 million all outstanding letters of credit; minus · the outstanding amount of revolving advances and swing loans, with a limit of $45 million Therefore, three levels are established depending on the average undrawn availabity. The Level I means that the average undrawn availability is higher than 66.7%, the applicable LIBOR rate margin will be 2.50% and the aplicable Domestic rate margin will be 1.50%. The Level II means that the average undrawn availability is more than 33.3% to less or equal 66.7%, the applicable LIBOR rate margin will be 2.75% and the applicable Domestic rate margin will be 1.75%. The Level III means if average undrawn availability is lower or equal to 33.3%, the applicable LIBOR rate margin will be 3.00% and the Domestic rate margin will be 2.00%. As a result, the applicable margin from the Closing date of the ABL Revolver to January 1, 2020, will be Level III rate. Thereafter, effective as of the first day of each calendar quarter, the rate corresponding to the average daily undrawn availability for the most recently completed calendar quarter. Guarantees and security Ferroglobe PLC was not required to provide a guarantee of the ABL Revolver, but entered into a Non-Recourse Pledge Agreement with lender in respect of its shares in Globe Specialty Metals, Inc. Covenants The ABL Revolver contains certain affirmative covenants relating to, among other things: (i) preservation of existence; (ii) payment of taxes; (iii) continuation of business; (iv) maintenance of insurance on its properties and assets; (v) maintenance and protection of rights of properties; (vi) visitation rights granted to the Administrative Agent and (vii) maintain and keep proper books of record and account. The ABL Revolver also contains certain negative covenants, relating to, among other things: (i) debt; (ii) liens; (iii) liquidations, mergers or consolidation; (iv) amendment of organizational documents; (v) restricted payments (including dividends, distributions, issuances of equity interests, redemptions and repurchases of equity interests); (vi) sale and leaseback transactions and (vii) further negative pledges. The ABL Revolver does not contain any leverage-based or financial ratio-based covenants, but Note 10. Under the ABL Revolver, Globe Specialty Metals, Inc., and QSIP Canada ULC pledged assets as collateral to PNC Bank as follows: eligible third party receivables in the sum of $31M, and eligible inventory including raw materials, WIP, finished goods, spare parts and packaging in the sum of $25M. Deducted from the eligible assets are outstanding letters of credit equaling $6M, reserves $0.6M and a minimum undrawn availability of $10M, leaving a total ABL Revolver balance of $38M as at December 31, 2020. Repayment of the ABL in March, 2021 On March 16, 2021, the Company has repaid in its entirety the remaining balance at the date for an amount equal to $39,476 thousand, cancelling its obligations derived from the contract. See Note 30. Borrowings from receivable factoring facility On October 2, 2020, the Company ended the receivables funding agreement over European receivables, signing a new factoring agreement with a Leasing and Factoring Agent, for anticipating the collection of receivables of the Company’s European entities. As a result of the agreement, the Agent provided a cash consideration of circa $48.8 million, repurchased the receivables portfolio sold to the SPE on September 28, and consequently assumed the loan tranche of the senior borrower to the SPE. Also, the senior loan and intermediate subordinate loan tranches were paid with internal sources of funds, terminating the financing structure of the securitization program (See Note 10). The main characteristics of the agreement are the following: - the maximum cash consideration advanced for the financing facility is up to EUR 60,000 thousand; - over collateralization of 10% of accounts receivable as guarantee provided to the Agent until payment has been satisfied; - Annual fee of 0.15% applied to the annual revenues ceded to the Agent; - Financing commission of 1% charged annually; Other conditions are set in relation to credit insurance policy has been structured in an excess of loss policy where the first EUR 5,000 thousand of bad debt losses are not covered by the insurance provider. The Company has assumed the cash collateralization for the entire excess of loss, as agreed in contractual terms. Judgements relating to the recognition criteria The Company has assessed whether it has transferred substantially all risks and rewards, continuing to be exposed to the variable returns from its involvement in the factoring agreement as it is exposed to credit risk as, the conclusion is that the derecognition criteria is not applicable and thefore, the account receivables sold is presented in the balance as the cash received is presented as an obligation to be repaid as bank borrowings. As of December 31, 2020, the Company exceeded the limit, the lender agreed a temporary increase of the limit. Other Loans Loans in respect of Receivables Funding Agreement As a result of the consolidation of the SPE since September 5, 2019, that part of the purchase price of the accounts receivable sold into the receivables securitization program not received in cash is deferred in the form of loans, in senior and subordinated tranches, held by the Company. During 2019, following certain termination events under the current accounts receivable program, ING’s senior loan commitments were reduced to $75,000 thousand and the Company and ING agreed the program would terminate during the fourth quarter of 2019, unless otherwise refinanced. On December 10, 2019, the Company refinanced the program and amended and restated its terms. The SPE repaid the remaining senior loans to ING with the proceeds of new senior loans issued by an affiliate of Sound Point Capital Management LP. The new senior lender’s commitments under the amended and restated securitization program are $150,000 thousand, of which $104,130 was drawn at December 31, 2019. Finacity remained as intermediate subordinated lender and the Company’s European subsidiaries continue as senior subordinated and junior subordinated lenders as well as having a new interest in the senior and intermediate subordinated loan tranches. The reconstituted program has a two-year term until December 10, 2021. On February 6, 2020, the Company entered an amended and restated accounts receivables securitization program. The senior lender’s commitments under the amended and restated securitization program are $150,000 thousand. Finacity remained as intermediate subordinated lender providing a cash consideration of $2,808 thousand, and the Company’s European subsidiaries continued as senior subordinated and junior subordinated lenders as well as, having interests in the senior and intermediate subordinated loan tranches. During the year ended December 31, 2020, the Company has repaid $107,657 thousand in order to, prior to the termination of receivables funding agreement, optimize the level of borrowings of the SPE with the level of receivables in the securitization, and cancel all commitments in respect of loan tranches held by the Company. Other Loans Include loans held by The Company to finance their current activities in France, signed in July for an amount of USD 5,277 thousand. The loan is zero interest rate, guaranteed by French government, and the initial period is one year duration, with repayment of up to five years. Foreign currency exposure of bank borrowings The breakdown by currency of bank borrowings at December 31, is as follows: 2020 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars — 27,486 27,486 Borrowings in Euros 5,277 74,844 80,121 Total 5,277 102,330 107,607 2019 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars 144,388 14,611 158,999 Borrowings in other currencies — — — Total 144,388 14,611 158,999 Contractual maturity of non-current bank borrowings The contractual maturity of non-current bank borrowings at December 31, 2020, was as follows: 2020 2021 2022 Total US$'000 US$'000 US$'000 Credit facilities 27,237 — 27,237 Borrowings from supplier factoring facility 74,844 — 74,844 Other loans 249 5,277 5,526 Total 102,330 5,277 107,607 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 17. Leases Lease obligations Lease obligations as at December 31 are as follows: 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Other leases 13,994 8,542 22,536 16,972 8,900 25,872 Total 13,994 8,542 22,536 16,972 8,900 25,872 The detail, by maturity, of the non-current payment obligations under leases as of December 31, 2020 is as follows: 2022 2023 2024 2025 2026 and after Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Other leases 6,177 4,319 1,287 824 1,387 13,994 Total 6,177 4,319 1,287 824 1,387 13,994 Future net minimum lease payments are as follows: Undiscounted minimum lease payments Present value of minimum lease payments 2020 2019 2020 2019 US$'000 US$'000 US$'000 US$'000 Within 1 year 8,836 10,161 8,542 8,900 Between 1 and 5 years 13,488 17,569 12,608 16,256 After 5 years 1,748 911 1,386 716 Total minimum lease payments 24,072 28,641 22,536 25,872 Less: amounts representing finance lease charges 1,536 2,769 — — Present value of minimum lease payments 22,536 25,872 22,536 25,872 IFRS 16 has had the following effect on components of the consolidated financial statements: 2020 US$'000 Balance at December 31, 2019 (25,872) Additions (5,471) Disposals and other 102 Interest (1,358) Lease payments 11,673 Exchange differences (1,610) Balance at December 31, 2020 (22,536) On January 1, 2020, lease liabilities were discounted at the incremental borrowing rate was 5.5% for the year ended December 31, 2020. Leases are presented as follows in the Statement of financial position: 2020 US$'000 Non-current assets Leased land and buildings 17,588 Leased plant and machinery 24,446 Accumulated depreciation (22,498) Non-current liabilities Lease liabilities (13,994) Current liabilities Lease liabilities (8,542) Leases are presented as follows in the Consolidated income statement: 2020 US$'000 Depreciation and amortization charges, operating allowances and write-downs Depreciation of right of use assets 10,112 Finance costs Interest expense on lease liabilities 1,358 Exchange differences Currency translation gains on lease liabilities (1,610) Currency translation losses on right of use assets 2,138 Leases are presented as follows in the Statement of cash flows: 2020 US$'000 Payments for: Principal 10,315 Interest 1,358 |
Debt instruments
Debt instruments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [abstract] | |
Debt instruments | 18. Debt instruments Debt instruments comprise the following at December 31: 2020 2019 US$'000 US$'000 Unsecured notes carried at amortised cost Principal amount 350,000 350,000 Unamortised issuance costs (3,380) (5,986) Accrued coupon interest 10,888 10,937 Total 357,508 354,951 Amount due for settlement within 12 months 10,888 10,937 Amount due for settlement after 12 months 346,620 344,014 Total 357,508 354,951 On February 15, 2017, Ferroglobe and Globe (together, the “Issuers”) issued $350,000 thousand aggregate principal amount of 9.375% senior unsecured 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 senior Notes issued by each of 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 might have redeemed 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 might 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 might have redeemed 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 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 $268,538 thousand as at December 31, 2020 (December 31, 2019: $219,118 thousand). Agreement in Principle on the Terms of the financing proposal As of the date of the consolidated financial statements, holders holding approximately 96% in aggregate principal amount of Notes have signed a lock-up agreement (the “Lock-Up Agreement”) with the Ad Hoc Group Noteholders, Grupo VM and affiliates of Tyrus Capital to support the proposed restructuring as set out in the Lock-Up Agreement and including an extension of the bond maturity, but there can be no assurance that such support will not be withdrawn prior to implementation of the proposed restructuring or that, if withdrawn, additional consents required to implement the proposed restructuring will be obtained. As a result of these uncertainties, we cannot assure you that the proposed restructuring will be implemented. See Note 30. |
Other financial Liabilities
Other financial Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of financial liabilities [abstract] | |
Other financial liabilities | 19. Other financial liabilities Other financial liabilities comprise the following at December 31: 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Financial loans from government agencies 29,094 34,802 63,896 33,557 23,382 56,939 Derivative financial instruments — — — 9,600 — 9,600 Total 29,094 34,802 63,896 43,157 23,382 66,539 Financial loans from government agencies On September 8, 2016, FerroAtlántica, S.A.U, 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 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 3.55%. As of December 31, 2020, the amortized cost of the loan was €44,824 thousand (equivalent to $55,004 thousand) (2019: €44,765 thousand and $50,289 thousand). In November 2018, FAU agreed to transfer to OpCo certain assets which had been acquired with the proceeds of the REINDUS Loan and used exclusively by OpCo in connection with the joint venture in consideration of OpCo assuming liability for the REINDUS Loan. Reindus loan fair value as of December 31, 2020 amounting of $57,366 thousand. The agreements governing the loans contain the following limitations on the use of the proceeds of the outstanding loan: (1) the investment of the proceeds must occur between January 1, 2016 and February 24, 2019; (2) the allocation of the proceeds must adhere to certain approved budget categories; (3) if the final investment cost is lower than the budgeted amount, the borrower must reimburse the Ministry proportionally; and (4) the borrower must comply with certain statutory restrictions regarding related party transactions and the procurement of goods and services. On May 24, 2019, a report on uses of the loan was presented to the Ministry. On January 26, 2021, the Company received a decision from the Administration under which it has been agreed to extend the grace period and the term of loan, and it will be completed by 2030 (see Note 30). The remaining non-current and current balances are related to loans granted mainly by French and Spanish government agencies. Derivative financial instruments Derivative financial instruments comprise the following at December 31: 2020 2019 US$'000 US$'000 Derivatives designated as hedging instruments Cross currency swap — 7,481 Derivatives not designated as hedging instruments Cross currency swap — 2,119 — 9,600 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. In March, 2020, the Company closed out the cross currency swap resulting in the receipt of cash proceeds of $3,608 The fair value of the CCS at December 31, 2020 was $ nil thousand (2019: $9,600 thousand) (see Note 28). The Parent Company, which has an Euro functional currency, 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. In March, 2020, the CCS hedging foreign exchange risk of the Notes was close out resulting in a change in fair value of $11,161 thousand since the last year end closing. As 77% of the derivative was designated as hedging instrument in a cashflow hedge relationship, $3,168 thousand were recognized in finance income in the income statements for the non-designated portion (2019: $2,729 thousand) and $11,161 thousand were recognized through other comprehensive income in the valuation adjustments reserve (2019: $9,663 thousand gain). Considering that the hedged item remains as a highly probable transaction, the corresponding valuation adjustment reserve should be reclassified to the income statement as the hedged item affects profit or loss over the period to maturity of the Notes. In that sense, during the period of 2020 amounts transferred from the valuation adjustments reserve to the income statement comprise a gain of $5,090 thousand transferred to exchange differences (2019: $2,874 thousand) and a gain of $429 thousand transferred to finance costs (2019: $1,639 thousand). At December 31, 2020, a balance of $(2,226) thousand in respect of the cash flow hedge of the CCS remained in the valuation adjustment reserve. The remaining $42,500 thousand of the notional amount of the CCS was not designated as a cash flow hedge before closed out and was accounted for at fair value through profit or loss, resulting in a gain of $3,164 thousand for the year ended December 31, 2020, which is recorded in financial derivative gain in the consolidated income statement (2019: $2,736 thousand). Interest rate swaps The Company previously entered into interest rate swaps to manage the risk of changes in interest rates on certain non-current and current obligations. Since June 30, 2015, the interest rate swaps have been considered as ineffective hedges and as a result the changes in fair value of these derivatives are recognized through profit or loss. During the year ended December, 31, 2019 the Company disposed of the swap relating to the lease of hydroelectrical installations as part of the sale of its 100% interest in subsidiary FerroAtlántica, S.A.U. (“FAU”) to investment vehicles affiliated with TPG Sixth Street Partners. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables. | |
Trade and other payables | 20. Trade and other payables Trade and other payables compose the following at December 31: 2020 2019 US$'000 US$'000 Payable to suppliers 147,512 189,092 Trade notes and bills payable 1,689 137 Total 149,201 189,229 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other liabilities | |
Other liabilities | 21. Other liabilities Other liabilities comprise the following at December 31: 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Payable to non-current asset suppliers 130 2,633 2,763 182 6,989 7,171 Guarantees and deposits 17 266 283 18 — 18 Remuneration payable 20 27,552 27,572 38 33,003 33,041 Tax payables — 23,177 23,177 — 22,459 22,459 Contingent consideration 14,859 1,773 16,632 20,338 1,626 21,964 Other liabilities 1,741 10,592 12,333 5,330 32,352 37,682 Total 16,767 65,993 82,760 25,906 96,429 122,335 Tax payables Tax payables comprise the following at December 31: 2020 2019 Current Total Current Total US$'000 US$'000 US$'000 US$'000 VAT 4,061 4,061 8,234 8,234 Accrued social security taxes payable 13,266 13,266 7,781 7,781 Personal income tax withholding payable 1,111 1,111 1,351 1,351 Other 4,739 4,739 5,093 5,093 Total 23,177 23,177 22,459 22,459 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, 2018 1,025,042 Granted during the period 1,184,441 Expired/forfeited during the period (33,630) Outstanding as of December 31, 2019 2,175,853 Granted during the period 882,850 Exercised during the period (150,494) Outstanding as of December 31, 2020 2,908,209 Exercisable as of December 31, 2020 456,968 The awards outstanding under the Plan at December 31, 2020 and December 31, 2019 were as follows: Performance Period Fair Value at Grant Date (three years ended) Expiration Date Exercise Price Grant Date 2020 2019 December 16, 2020 December 31, 2024 December 16, 2030 nil $ 1.23 882,850 — March 13, 2019 December 31, 2022 March 13, 2029 nil $ 2.69 1,184,441 1,184,441 June 14, 2018 N/A June 13, 2028 nil $ 9.34 78,694 129,930 March 21, 2018 December 31, 2021 March 20, 2028 nil $ 22.56 287,080 287,080 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 $ 10.96 834 19,463 June 1, 2017 December 31, 2020 June 1, 2027 nil $ 16.77 346,215 382,002 November 24, 2016 December 31, 2019 November 24, 2026 nil $ 16.66 110,753 155,595 2,908,209 2,175,853 The awards outstanding as of December 31, 2020 had a weighted average remaining contractual life of 11.93 years (2019: 8.52 years). At December 31, 2020, 2,828,681 of the outstanding awards were subject to performance conditions (2019: 2,026,460 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 40% base on share price 30% base on Operating (Loss) profit plus depreciation and amortization charges 20% based on net cash flow There were no performance obligations linked to 79,528 of the awards outstanding at December 31, 2020 (2019: 149,393 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, 2020 was $1.23 (2019: $2.69). 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 December 16, 2020 March 13, 2019 March 21, 2018 June 20, 2017 June 01, 2017 Fair value at grant date $ $ $ $ $ Grant date share price $ $ $ $ $ Exercise price Nil Nil Nil Nil Nil Expected volatility % % % % Option life 4.00 years 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 NA % 2.1 % (0.3) % 4.0 % Median comparator group TSR at grant date NA % (6.2) % (7.2) % (3.7) % Median index TSR at grant date NA % (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 all comparator group correlations, regardless of the degree of correlation, have been incorporated into the valuation model. For the year ended December 31, 2020, share-based compensation expense related to this stock plan amounted to $2,017 thousand, which is recorded in staff costs (2019: $4,879 thousand). 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 not options that were exercised and 25,000 share options that expired during the year ended December 31, 2020 (2019: no options were exercised and 78,630 share options expired during the year). 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, 2018 103,630 $ 19.40 0.44 $ 1,774 Expired/forfeited during the period (78,630) 20.25 Outstanding as of December 31, 2019 25,000 $ 16.70 0.16 $ — Expired/forfeited during the period (25,000) — Outstanding as of December 31, 2020 — $ 0.16 $ — Exercisable as of December 31, 2020 — $ 0.16 $ — At December 31, 2020 there are total vested options of zero and no unvested options outstanding (2019: vested options of 25,000 and no unvested options). For the year ended December 31, 2020, share based compensation income related to stock options under this plan was $ zero thousand (2019: $ zero thousand). The expense is reported within staff costs in the consolidated income statement. For the year ended December 31, 2020, the Company did settle options by an amount of $12 thousand. b. 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, 2020, no restricted options were exercised and for the year ended December 31, 2019, no restricted options were exercised. As of December 31, 2020, and 2019, restricted stock units of 26,268 were outstanding. For the year ended December 31, 2020, share based compensation expense for these restricted stock units was $18 thousand (2019: $17 thousand income before tax and $11 thousand income after tax). The income is reported within staff costs in the consolidated income statement. At December 31, 2020 and 2019, the liability associated with the restricted stock option was $43 thousand and $26 thousand, respectively included in other current liabilities. c. 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 443,511 stock appreciation rights cancelled and nil stock appreciation rights exercised during the year ended December 31, 2020 (2019: 150,000 stock appreciation rights cancelled and nil stock appreciation rights exercised). As of December 31, 2020, and 2019, there were 16,510 and 460,021 stock appreciation rights outstanding, respectively. For the year ended December 31, 2020 compensation income for these stock appreciation rights was $1 thousand before tax and $1 thousand after tax (2019: $61 thousand income before tax and $39 thousand income after tax). As of December 31, 2020, the liability associated with the stock appreciation rights is $ zero thousand and is included in other current liabilities (2019: liability of $2 thousand included within other liabilities). Contingent consideration 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., see Note 5. Consideration included both cash and contingent consideration. 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 and if it applies, the payment is on annual basis. The potential undiscounted amount of all future payments that the Company could be required to make under the contingent consideration arrangement is between $nil thousand and $60,000 thousand. The fair value of the contingent consideration arrangement as at December, 31, 2020 of $16,632 thousand (2019: $21,965 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 12.5 percent and 11.5 percent for Ferroglobe Mangan Norge and Ferroglobe Manganèse France respectively (2019: 11.5 percent and 11.0 percent), prices, spread and cost assumptions. Average simulated revenues in Ferroglobe Mangan Norge and Ferroglobe Manganèse France combined are between $135,868 thousand and $262,441 thousand per year (2019: between $157,276 thousand and $317,507 thousand). The liability has decreased primarily driven by a reduction in forecasted volumes as a result of the current market outlook, increased operational costs and the combined impact of FX and inflation forecasts, this was partially offset by a reduction in variable costs. Changes in the value of contingent consideration are presented in cost of sales. |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2020 | |
Tax matters | |
Tax matters | 22. Tax matters The components of current and deferred income tax expense (benefit) are as follows: 2020 2019 2018 US$'000 US$'000 US$'000 Consolidated income statement Current income tax Current income tax charge 4,307 2,133 22,795 Adjustments in current income tax in respect of prior years 901 4,753 (865) Adjustments in current income tax due to discounted operations — — (3,776) Total 5,208 6,886 18,154 Deferred tax Origination and reversal of temporary differences (48,618) 2,500 Impact of tax rate changes - (46) 98 Impairment of deferred tax assets 37,660 — — Adjustments in deferred tax in respect of prior years 33 237 (293) Total 16,732 (48,427) 2,305 Income tax expense (benefit) 21,939 (41,541) 20,459 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, 2020, 2019, and 2018: 2020 2019 2018 US$'000 US$'000 US$'000 Accounting profit/(loss) before income tax (222,420) (411,818) 35,568 Adjustment for discontinued operations (5,399) (28,135) — Accounting profit/(loss) before income tax (227,819) (439,954) — At weighted effective tax rate of 24% (2019: 24% and 2018: 49%) (54,294) (105,369) 17,409 Non-taxable income/(expenses) — (17,020) (14,856) Non-deductible expenses 6,779 49,390 25,079 Movements in unprovided deferred tax — 4,604 7,620 Differing territorial tax rates 3,064 (3,987) (2,262) Adjustments in respect of prior periods (50) 2,160 (1,038) Other items 70,123 20,407 (4,936) Elimination of effect of interest in joint ventures 899 917 1,079 Other permanent differences (389) 9,234 1,242 Incentives and deductions (2,456) (1,302) (6,944) US State taxes (1,737) (824) 1,235 Taxable capital gains — 249 607 Adjustments in current income tax due to discontinued operations — — (3,776) Income tax (expense)/benefit 21,939 (41,541) 20,459 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 $1.7 million representing the Company’s best estimate of its transition tax liability was recorded in 2017 and reversed in the prior period following a comprehensive review of the foreign historic earnings and profits subject to tax under the new law. Current tax assets and liabilities 2020 2019 US$'000 US$'000 Current tax assets Income tax receivable 12,072 27,930 Current tax liabilities Income tax payable 2,538 3,048 Net tax assets 9,534 24,882 Deferred tax assets and liabilities For the year ended December 31, 2020: Opening Prior Year Recognised in Impairment of Reclassifications Exchange Closing Balance Charge P&L Deferred Tax Assets Differences Balance US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Intangible assets (414) — (44) — (0) (458) Biological assets (1) — — — — (1) Provisions 15,928 — 2,757 (3,357) (1,655) 562 14,235 Property, plant & equipment (64,697) — 16,094 (219) 434 125 (48,263) Inventories (2,542) — 639 1,993 (26) 64 Hedging Instruments — — — — 0 0 Tax losses 41,728 — (1,073) (33,162) (154) 2,187 9,525 Incentives & credits 2,139 — — (921) 169 40 1,426 Partnership interest (9,890) — 1,647 (740) — (8,983) Other 3,243 — 909 533 (10) 4,674 Total (14,506) — 20,928 (37,660) 580 2,878 (27,781) Ferroglobe has writen off the deferred tax assets in relation to Spanish $18,896 thousand, French $15,826 thousand, SouthAfrica $1,044 thousand and Argentinean $1,894 thousand, from the balance sheet. In these tax jurisdictions there is not sufficient taxable temporary differences that can be utilised against the unused tax losses. Presented in the statement of financial position as follows: 2020 2019 US$'000 US$'000 Deferred tax assets 31,528 68,404 Deferred tax liabilities (59,309) (82,910) Net Total Deferred Tax (Liability) (27,781) (14,506) Unrecognised deductible temporary differences, unused tax losses and unused tax credits 2020 2019 US$'000 US$'000 Unused tax losses 513,189 428,665 Unused tax credits 8,685 7,949 Unrecognised deductible temporary differences 106,952 79,733 Total 628,826 516,347 Management of tax risks The Company is committed to conducting its tax affairs consistent with the following objectives: (i) to comply with relevant laws, rules, regulations, and reporting and disclosure requirements in whichever jurisdiction it operates; (ii) to maintain mutual trust, transparency and respect in its dealings with all tax authorities; and (iii) to adhere with best practice and comply with the Company's internal corporate governance procedures, including but not limited to its Code of Conduct For further details please refer to the group's tax strategy which can be found here: http://investor.ferroglobe.com/corporate-governance. The Group's tax department maintains a tax risk register on a jurisdictional basis. In the jurisdictions in which the Company operates, tax returns cannot be deemed final until they have been audited by the tax authorities or until the statute-of-limitations has expired. The number of open tax years subject to examination varies depending on the tax jurisdiction. In general, the Company has the last four years open to review. The criteria that the tax authorities might adopt in relation to the years open for review could give rise to tax liabilities which cannot be quantified. |
Related party transactions and
Related party transactions and balances | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions and balances | |
Related party transactions and balances | 23. Related party transactions and balances Continued operations Balances with related parties at December 31 are as follows: 2020 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 3,078 — — Villar Mir Energía, S.L.U. 2,454 — — 2,458 Espacio Information Technology, S.A.U. — — — 701 Other related parties — (2) — 37 Total 2,454 3,076 — 3,196 2019 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 2,953 — — Villar Mir Energía, S.L.U. 2,247 — — 2,022 Espacio Information Technology, S.A.U. — — — 2,651 Other related parties — 2 — 157 Total 2,247 2,955 — 4,830 The loan granted to Inmobiliaria Espacio, S.A. accrues a market interest and has a maturity in the short-term that is renewed tacitly upon maturity, unless the parties agreed it’s repaid until maturity, extended it automatically for one year. The balance with the other related parties arose as a result of the commercial transactions performed with them (see explanation of main transactions below). Discontinued operations At 31 December, 2020 and 2019, there were not discontinued operations considered with Related Parties. Continuing operations Transactions with related parties in 2020, 2019 and 2018 are as follows: 2020 Sales and Other Finance Operating Operating Income Income Cost of Sales Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 16 Villar Mir Energía, S.L.U. — 39,900 647 — Espacio Information Technology, S.A.U. — — 3,171 — Enérgya VM Gestión, S.L — — 79 — Aurinka — 1 308 — Other related parties — — 3 — Total — 39,901 4,208 16 2019 Sales and Other Finance Operating Operating Income Income Cost of Sales Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — 1 68 Villar Mir Energía, S.L.U. — 65,406 681 — Espacio Information Technology, S.A.U. — — 3,566 — Enérgya VM Generación, S.L 1 — 1 — Enérgya VM Gestión, S.L — 1 89 — Aurinka — — 3,206 — Other related parties 143 — 7 — Total 144 65,407 7,551 68 2018 Sales and Other Finance Operating Operating Income Income Cost of Sales Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — 6 72 Villar Mir Energía, S.L.U. — 99,939 803 — Espacio Information Technology, S.A.U. — — 4,226 — Enérgya VM Generación, S.L 11,874 — 48 — Enérgya VM Gestión, S.L — — 76 — Other related parties 20 — 119 — Total 11,894 99,939 5,278 72 “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. Under contracts entered into with FAU on June 22, 2010 and December 29, 2010 (assigned to FerroAtlántica de Boo, S.L.U. (“FAU Boo”) and to FerroAtlántica de Sabon, S.L.U. (“FAU Sabon”) in August 2019 in anticipation of the FAU Disposal), and with Hidro Nitro Española on December 27, 2012 (assigned to FerroAtlántica del Cinca when Hidro Nitro Española was sold in December 2018), VM Energía supplies the energy needs of the Boo, Sabón and Monzón electrometallurgy facilities, as a broker for FAU (now FAU Boo or FAU Sabon, as appropriate) and Hidro Nitro Española (now FerroAtlántica del Cinca) in the wholesale power market. The contracts allow FAU (now FAU Boo or FAU Sabon, as appropriate) and Hidro Nitro Española (now FerroAtlántica del Cinca) to buy energy from the grid at market conditions without incurring costs normally associated with operating in the complex wholesale power market, as well as to apply for fixed price arrangements in advance from VM Energía, based on the energy markets for the power, period and profile applied for. For the fiscal year ended December 31, 2020, FAU Boo, FAU Sabon and FerroAtlantica del Cinca’s obligations to make payments to VM Energía under their respective agreements for the purchase of energy plus the service charge amounted to $16,923 thousand, $14,334 thousand and $8,643 thousand, respectively. “Other operating expenses" corresponds to the payment to Torre Espacio Gestión for the provision of utility services. Additionally, in 2019 FerroAtlántica paid the amount of $2,800 thousand to Aurinka in satisfaction of any claims Aurinka PV may have in connection with the termination of the Solar JV. “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, 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 for the fiscal years ended December 31, 2018. During 2018, under the solar joint venture agreement FerroAtlántica and other subsidiaries have purchased property, plant and equipment of $4,252 thousand, from Aurinka and Blue Power Corporation, S.L. In July 2019, the Solar JV was unwound. See “Item 7.B.—Related Party Transactions—Aurinka and the Solar JV.” Discontinued operations At 31 December, 2020, there were not discontinued transactions considered with Related Parties. Transactions with related parties in 2019 and 2018 are as follows: 2019 Sales and Other Operating Operating Income Cost of Sales Expenses US$'000 US$'000 US$'000 Villar Mir Energía, S.L.U. — — 373 Enérgya VM Generación, S.L 12,635 — 117 Enérgya VM Gestión, S.L — 66 — Total 12,635 66 490 2018 Sales and Other Operating Operating Income Cost of Sales Expenses US$'000 US$'000 US$'000 Villar Mir Energía, S.L.U. — — 664 Enérgya VM Generación, S.L 31,898 — 224 Enérgya VM Gestión, S.L — 42 43 Total 31,898 42 931 |
Guarantee commitments to third
Guarantee commitments to third parties and contingent liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, the Company has provided bank guarantees commitments to third parties amounting $19,969 thousand and $17,260 thousand, respectively. Management believes that any unforeseen liabilities at December 31, 2020 and 2019 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. Cee-Dumbria hydroelectric plants In November 2020, the Tribunal Superior de Justicia de Galicia dismissed the request of separation of the Cee-Dumbria's hydroelectric plants and the ferroalloys plants. Grupo FerroAtlantica, S.A.U. has appealed the Sentencia to the Supreme Court and are awaiting the admission of the appeal As a consequence of the court´s ruling, the Company has reconsidered to estimate on the term of the tolling agreement with Cee-Dumbria ferroalloys plant. The Company, has registered a provision amounting to $31,815 thousand (EUR 25,927 thousand). Stamp Tax litigation procedure On February 2021 the Central Economic-Administrative Court ruled against the interest of Ferroglobe in a stamp duty litigation procedure initiated in 2015, where the taxpayer is Abanca, the financial institution through which a sale and lease back of the electric production plants in Galicia was conducted in 2012. Ferroglobe has agreed with Abanca that it continues the litigation at the judiciary level by filing an appeal before the Audiencia Nacional. This filing has been complete in April 2021. As a result of the continuation of this litigation process, with the appropriate granting of bank guarantee by the taxpayer (Abanca), neither payment of the tax reassessment (circa 1.4MM Euro plus delay interest) nor of the penalty proposed (circa 600K Euro) are due at this stage of the process. We anticipate this stage will take between two to four years to be resolved by the Audiencia Nacional. In case the Audiencia Nacional rules against the interests of Ferroglobe, the full amount of the tax reassessment and the penalty would be payable by Ferroglobe in applying a compensation agreement in place between Abanca and Ferroglobe. Asbestos-related claims Certain employees of FerroPem, SAS, 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 2004 Share Sale and Purchase Agreement under which our FerroAtlántica acquired PEM. As of December 31, 2020, less than 100 such employees have “declared” asbestos-related injury to the French social security agencies. Approximately, three quarters of these cases now have been closed. Of the remaining cases, approximately half include assertions of “inexcusable negligence” (“faute inexcusable”) which, if upheld, may lead to material liability in the aggregate on the part of FerroPem. Other employees may declare further asbestos-related injuries in the future, and may likewise assert inexcusable negligence. 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 liability for “inexcusable negligence” will be found is determined case-by-case, often over a period of years, depending on 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. 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 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. Since that time, GMI and the authorities have exchanged information and engaged in negotiations regarding potential resolution of the NOV/FOVs, which negotiations are ongoing. To resolve the NOVs/FOVs, GMI may be required to install additional pollution control equipment or implement other measures to reduce emissions from the facility as well as a pay civil penalty. At this time, however, GMI is unable to determine the extent of potential injunctive relief or the amount of 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 authorities could institute formal legal proceedings for injunctive relief and civil penalties. The statutory maximum penalty is $93,750 per day per violation, from April 2013 to the present. |
Income and expenses
Income and expenses | 12 Months Ended |
Dec. 31, 2020 | |
Income and expenses | |
Income and expenses | 25. Income and expenses 25.1 Sales Sales by segment for the years ended December 31 are as follows: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Electrometallurgy - North America 425,277 551,500 710,716 Electrometallurgy - Europe 661,624 1,049,576 1,447,973 Electrometallurgy - South Africa 80,572 136,292 208,543 Other segments 25,334 43,147 62,075 Eliminations (48,373) (165,293) (187,305) Total 1,144,434 1,615,222 2,242,002 Sales by geographical area for the years ended December 31 are as follows: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Spain 133,370 Germany 191,107 Italy 42,067 Other EU Countries 167,934 USA 404,633 Rest of World 205,323 Total 1,144,434 (*) 25.2 Staff costs The average monthly number of employees (including Executive Directors) was: 2020 2019 2018 US$'000 US$'000 US$'000 Directors Senior Managers Employees Total Staff costs are comprised of the following for the years ended December 31: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Wages, salaries and similar expenses Pension plan contributions Employee benefit costs Total (*) 25.3 Depreciation and amortization charges, operating allowances and write-downs Depreciation and amortization charges, operating allowances and write-downs are comprised of the following for the years ended December 31: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Amortization of intangible assets (Note 8) 7,183 7,305 9,312 Depreciation of property, plant and equipment (Note 9) 101,006 112,824 104,532 Other write-downs and reversals — 65 (7) Total 108,189 120,194 113,837 (*) 25.4 Finance income and finance costs Finance income is comprised of the following for the year ended December 31: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Finance income of related parties (Note 23) 16 68 72 Other finance income 161 1,312 4,786 Total 177 1,380 4,858 (*) Finance costs are comprised of the following for the year ended December 31: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Interest on debt instruments 34,989 33,705 34,188 Interest on loans and credit facilities 8,404 15,533 8,249 Interest on note and bill discounting 363 373 205 Interest on leases 1,358 1,972 119 Trade receivables securitization expense (Note 10) 15,044 9,192 11,708 Other finance costs 6,810 2,450 2,597 Total 66,968 63,225 57,066 (*) Due to the termination of he receivables funding agreement and cancelation of the securitization program at October 2, 2020, the Company registered a finance cost of $7,591 thousand. 25.5 Impairment losses and net loss (gain) due to changes in the value of assets Impairment losses and net loss (gain) due to changes in the value of assets are comprised of the following for the years ended December 31: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Impairment of goodwill (Note 7) — 174,008 — Impairment of intangible assets (Note 8) — 211 16,073 Impairment of property, plant and equipment (Note 9) 71,929 1,224 42,846 Impairment of non-current financial assets — 456 — Impairment of other 1,415 — — Impairment losses 73,344 175,899 58,919 (Increase) decrease in fair value of biological assets (Note 28) — 530 7,615 Other loss / (profit) (158) 1,044 8 Net gain (loss) due to changes in the value of assets (158) 1,574 7,623 (*) 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: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Gain on disposal of intangible assets (1,692) — — Gain on disposal of property, plant and equipment (473) (353) (2,950) Loss on disposal of property, plant and equipment 873 1,761 162 Gain on disposal of other non-current assets — (6) (29) Loss (gain) on disposal of subsidiary — 821 (11,747) Total (1,292) 2,223 (14,564) (*) During 2020, Ferroglobe has sold CO2 emissions rights that have been derecognized from the balance sheet against the cash received, as the price per emission right was lower to the fair value per emission right at the time they were granted, an income of $1,692 thousand has been recognized on the disposal of intangible assets. On September 19, 2019, Ferroglobe closed on the sale of its subsidiary Ultracore Polska ZOO, which manufactures cored wire in Poland, recognized a loss on disposal of $821 thousand. On December, 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 Sapnish renewable energies fund. The Company received net cash proceeds of $20,533 thousand and recognized a gain on disposal of $11,747 thousand. |
Remuneration of key management
Remuneration of key management personnel | 12 Months Ended |
Dec. 31, 2020 | |
Remuneration of key management personnel | |
Remuneration of key management personnel | 26. Remuneration of key management personnel The remuneration of the key management personnel, which comprises the Company’s management committee, during the years ended December 31 is as follows: 2020 2019 2018 US$'000 US$'000 US$'000 Fixed remuneration 5,086 5,404 6,068 Variable remuneration 756 254 — Contributions to pension plans and insurance policies 319 350 379 Share-based compensation 2,017 4,882 1,777 Termination benefits 1,886 1,147 2,284 Other remuneration 9 7 23 Total 10,073 12,044 10,531 During 2020, 2019 and 2018, no loans and advances have been granted to key management personnel. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, and December 31, 2019, 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 unsecured 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. In March, 2020, the Company closed out the cross currency swap resulting in the receipt of cash proceeds of $3,608 thousand (see Note 19). 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). During the year ended December 31, 2020 and 2019, the Company did not enter into any interest rate derivatives in relation to its interest bearing credit facilities. At December 31, 2020, the Company had drawn down $28,168 thousand under its credit facilities (2019: $62,835). 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 operated an accounts receivable securitization program (see Note 10). On October 2, the Company ended the receivables funding agreement and cancelled the securitization structure, signing a new factoring agreement with “Leasing and Factoring Agent”, for anticipating the collection of receivables of the Company’s European entities (see Note 16) 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 unsecured 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). · $100,000 thousand North-American asset-based, revolving credit facility. Loans under the ABL Revolver may be borrowed, repaid and reborrowed at any time until the facility’s expiration date. The legal final maturity date of the ABL Revolver is October 11, 2024. The terms of the facility provide a spring forward provision which requires the ABL Revolver to be repaid on the date which is three months prior to the maturity date of the senior unsecured Notes (March 1, 2022), which would currently imply a facility repayment date of December 1, 2021. At December 31, 2020 $31,155 thousand was utilized. The ABL Revolver was fully repaid in March 2021, see Note 30. · On September 8, 2016, FerroAtlántica, S.A.U, 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 is contractually due to be repaid in 7 instalments 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 3.55%. As of December 31, 2020, the amortized cost of the loan was €44,824 thousand (equivalent to $55,004 thousand) (2019: €44,765 thousand and $50,289 thousand), see Note 19. · On October 2, 2020, the Company ended the receivables funding agreement and cancelled the securitization program, signing a new factoring agreement with a Leasing and Factoring Agent, for anticipating the collection of receivables of the Company’s European entities (Grupo FerroAtlántica, S.A. and FerroPem S.AS). As a result of the agreement, the Leasing and Factoring Agent provided a cash consideration of circa $48.8 million, repurchased the receivables portfolio sold to the SPE on September 28, and consequently assumed the loan tranche of the senior borrower to the SPE. Also, the Senior loan and intermediate subordinate loan tranches were paid with internal sources of funds, at closing, there was cash release of $18 million from restricted cash relating to a special purpose vehicle under prior securitization program (see Note 10). The Indenture governing the 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 a significant majority of GVM’s shares in the Company are pledged as collateral for GVM’s obligations to certain of its lenders. 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. While GVM maintains its current shareholding, a change of control cannot occur. Based on the provisions cited above, a change of control as defined in the Indenture is unlikely to occur but the matter it is beyond the Company’s control. If a change of control were to occur, the company may not have sufficient financial resources available to satisfy all of its obligations. Management considers it likely that the exchange of the Notes and additional capital will be completed, that will allow the Group to continue in operational existence for the foreseeable future, see Note 3.1 Quantitative information i. Interest rate risk: At December 31, the Company’s interest-bearing financial liabilities were as follows: 2020 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 107,607 107,607 Obligations under finance leases — 22,537 22,537 Debt instruments 357,508 — 357,508 Other financial liabilities (*) 63,896 — 63,896 421,404 130,144 551,548 (*) Note 19). 2019 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 158,999 158,999 Obligations under finance leases — 25,872 25,872 Debt instruments 354,951 — 354,951 Other financial liabilities (*) 56,939 — 56,939 411,890 184,871 596,761 (*) Note 19). Analysis of sensitivity to interest rates At December 31, 2020, an increase of 1% in interest rates would have given rise to additional borrowing costs of $1,064 thousand (2019: $2,232 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 $42,500 thousand and therefore a portion of the cross currency swap is not designated as a hedge and is accounted for at fair value through profit or loss. In March, 2020, the Company closed out the cross currency swap (see Note 19). Foreign currency swaps in relation to trade receivables and trade payables At December 31, 2020 and 2019, the Company has no foreign currency swaps in place in respect of foreign currency accounts receivable and accounts payable. iii. Liquidity risk: The table below summarizes the maturity profile of the Company’s financial liabilities at December 31, 2020, based on contractual undiscounted payments. The table includes both interest and principal cash flows. The cash flows for debt instruments assume that principal of the Notes is repaid at maturity in March 2022 (see Note 18). 2020 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 108,613 5,277 — — 113,890 Leases 8,796 6,350 7,130 1,748 24,024 Debt instruments 32,813 366,406 — — 399,219 Financial loans from government agencies 36,672 7,209 18,274 6,501 68,656 Derivative financial instruments — — — — — Payables to related parties 3,196 — — — 3,196 Payable to non-current asset suppliers 130 2,633 — — 2,763 Contingent consideration 1,772 4,175 15,892 3,277 25,116 Trade and other payables 149,201 — — — 149,201 341,193 392,050 41,296 11,526 786,065 2019 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$'000 Bank borrowings 23,743 163,154 — — 186,897 Finance leases 10,161 7,356 10,213 911 28,641 Debt instruments 32,813 32,813 366,406 — 432,032 Financial loans from government agencies 27,311 10,527 15,992 9,513 63,343 Derivative financial instruments 2,049 2,049 (4,911) — (813) Payables to related parties 4,830 — — — 4,830 Payable to non-current asset suppliers 7,283 182 — — 7,465 Contingent consideration 1,626 5,006 18,170 8,916 33,718 Trade and other payables 189,229 — — — 189,229 299,045 221,087 405,870 19,340 945,342 The amounts disclosed in the table above for derivative financial instruments are the net undiscounted cash flows. The following table shows the gross inflows and outflows and the corresponding reconciliation of those amounts to the net carrying value of the derivatives. 2019 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Inflows 18,047 18,047 201,523 — 237,617 Outflows (15,998) (15,998) (206,434) — (238,430) Net cash flow 2,049 2,049 (4,911) — (813) Discounted at the applicable interbank rates 1,859 1,437 (12,896) — (9,600) Changes in liabilities arising from financing activities The changes in liabilities arising from financing activities during the year ended December 31, 2020 and 2019 were as follows: January 1, Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Change in scope of consolidation Other changes December 31, 2020 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 158,998 (67,343) 10,295 — — 5,657 107,607 Obligations under finance leases 25,873 (10,315) 1,608 — — 5,370 22,536 Debt instruments 354,952 (32,812) — — 35,368 357,508 Financial loans from government agencies (Note 19) 56,939 — 4,865 — — 2,092 63,896 Derivative financial instruments (Note 19) 9,600 3,608 (86) (14,329) — 1,207 — Total liabilities from financing activities 606,362 (106,862) 16,682 (14,329) — 49,694 551,547 Dividends paid — Proceeds from stock option exercises — Other amounts paid due to financing activities (6,471) Payments to acquire or redeem own shares — Net cash (used) by financing activities (113,333) January 1, Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Change in scope of consolidation Other changes December 31, 2019 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 141,012 (107,718) (1,485) — 112,226 14,963 158,998 Obligations under finance leases 66,471 (55,352) (1,895) — — 16,649 25,873 Debt instruments 352,594 (34,304) — — — 36,662 354,952 Financial loans from government agencies (Note 19) 61,849 — (1,147) — — (3,763) 56,939 Derivative financial instruments (Note 19) 23,463 — (532) (12,770) — (561) 9,600 Total liabilities from financing activities 645,389 (197,374) (5,059) (12,770) 112,226 63,950 606,362 Dividends paid — Proceeds from stock option exercises — Other amounts paid due to financing activities (26,631) Payments to acquire or redeem own shares — Net cash provided by financing activities (224,005) |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 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 financial assets (Note 10): Listed equity securities 2,609 2,609 — — Other liabilities (Note 21) Contingent consideration in a business combinations (16,632) — — (16,632) December 31, 2019 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 financial assets (Note 10): Listed equity securities 5,544 5,544 — — Other financial liabilities (Note 19): Derivative financial instruments - cross currency swap (9,600) — (9,600) — Derivative financial instruments - interest rate swaps — — — — Other liabilities (Note 21) Contingent consideration in a business combinations (21,965) — — (21,965) 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). In March, 2020, the Company closed out the cross currency swap resulting in the receipt of cash proceeds of $3,608 thousand. The fair value of the swap at December 31, 2020 was $ nil. The fair value of the swap at December 31, 2019 was a liability of $9,600 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). As of December 31, 2019, the Company divested of certain timber farm plantations and associated property, plant and equipment, which resulted in proceeds of $8,668 thousand. The fair value of the remaining timber farm plantations at December 31, 2019 was based on indicative offers received. The changes in fair value of biological assets classified at level 3 in the hierarchy were as follows: Level 3 US$'000 January 1, 2019 7,790 Loss recognised in profit or loss (Note 25.5) (530) Disposal of biological assets (7,365) Translation differences 105 December 31, 2019 — Loss recognised in profit or loss (Note 25.5) — Disposal of biological assets — Translation differences — December 31, 2020 — |
Non-current assets held for sal
Non-current assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2020 | |
Non-current assets held for sale | |
Non-current assets held for sale and discontinued operations | 29. Non-current assets held for sale and discontinued operations Discontinued operations For the year ended 31 December, 2020, the Company has recorded $5,399 thousand related to price adjustment on the sale of Group’s hydro-electric assets in 2019. The amount was recognized in Discontinued operations in Consolidated Income Statement. On June 2, 2019 the Company entered into an agreement with Kehlen Industries Management, S.L., a wholly-owned subsidiary of TSSP Adjacent Opportunities Partners, L.P., for the sale of the entire share capital of FerroAtlántica, S.A.U ("FAU"), the owner and operator of the Group's hydro-electric assets in Galicia (the “Spanish Hydroelectric Business”) and its smelting facility at Cee-Dumbria. The Spanish Hydroelectric Business was classified as disposal group held for sale in the second quarter of 2019 and has been accounted for as a discontinued operation. Prior to completion of the sale, all other assets of FAU unrelated to the Spanish Hydroelectric Business and the Cee-Dumbria smelting facility were transferred to other Group entities. Following the satisfaction of conditions precedent, the sale of FAU completed on August 30, 2019, resulting in gross cash proceeds of $177,627 thousand and a profit on disposal of $85,102 thousand. Under the terms of the transaction, the Group will become exclusive off-taker of finished products produced at the smelting plant at Cee-Dumbria and supplier of key raw materials to that facility pursuant to a tolling agreement expiring in 2060. Analysis of the result for the period from the discontinued operations The results of the discontinued operations included in the (loss) profit after taxes from discontinued operations are set out below. The comparative results of the Spanish Hydroelectric Business at December 31, 2020, 2019 and 2018 have been represented them as profit (loss) from discontinued operations. The profit and loss statement from discontinued operations is as follows: 2020 2019 2018 US$'000 US$'000 US$'000 Sales — 13,164 32,035 Cost of sales — (271) (677) Other operating income — 365 193 Staff costs — (1,450) (2,201) Other operating expense — (1,995) (6,370) Depreciation and amortization charges, operating allowances and write-downs — (2,830) (5,300) Impairment losses — — — Operating Profit (loss) — 6,983 17,680 Net finance expense — (6,433) (4,440) (LOSS) PROFIT BEFORE TAXES FROM DISCONTINUED OPERATIONS — 550 13,240 Income tax expense — (1,015) (3,776) Gain on sale of discontinued operation (5,399) 85,102 — (LOSS) PROFIT AFTER TAXES FROM DISCONTINUED OPERATIONS (5,399) 84,637 9,464 Basic earnings (loss) per ordinary share are calculated by dividing the consolidated profit (loss) for the year attributable to the Discontinued Operations 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. The Earnings per share is showed as follows: 2020 2019 2018 Basic earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to Discontinued Operations (US$'000) (5,399) 84,637 9,464 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Basic earnings (loss) per ordinary share (US$) (0.03) 0.50 0.05 Diluted earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to Discontinued Operations (US$'000) (5,399) 84,637 9,464 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Effect of dilutive securities — — 123,340 Weighted average dilutive shares outstanding 169,269,281 169,152,905 171,529,612 Diluted earnings (loss) per ordinary share (US$) (0.03) 0.50 0.05 The statement of cash flows from discontinued operations is showed as follows: 2020 2019 US$'000 US$'000 Cash flows from operating activities: Profit for the period (5,399) 84,637 Adjustments to reconcile net (loss) profit to net cash provided by operating activities: Income tax expense (benefit) — 1,015 Depreciation and amortization charges, operating allowances and write-downs — 2,830 Net Finance expense — 6,433 Gains on disposals of non-current and financial assets 5,399 (85,102) Changes in working capital Decrease / (increase) in accounts receivable — (10,341) Decrease / (increase) in inventories — 2 Increase / (Decrease) in accounts payable — 89 Other changes in operating assets and liabilities Other, net (24) 69,243 Income tax paid — — Interest paid — (2,307) Total cash flow from operating activities (24) 66,499 Cash flows from investing activities: Payments due to investments: Property, plant and equipment — (126) Disposals: Disposal of business, net of cash — — Total cash flow from investing activities — (126) Cash flows from financing activities: Other financing activities — (66,457) Total cash flow from financing activities — (66,457) INCREASE / (DECREASE) IN CASH (24) (84) CASH AT BEGINNING OF PERIOD 24 108 CASH AT END OF PERIOD — 24 |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2020 | |
Events after the reporting period | |
Events after the reporting period | 30 Events after the reporting period Modification of contractual terms in REINDUS loan On January 26, 2021 the Company received a decision from the Administration under which it has been agreed to extend the grace period and the term of the loan. New terms agreed contractually implies main loan will start to be repaid by 2023 and it will be completed by 2030, and interest rate will increase from 2.29% to 3.55%. Repayment of North-American asset-based loan (ABL) On March 16, 2021, the Company has repaid in its entirety the remaining balance at the date for an amount equal to $39,476 thousand, cancelling its obligations derived from the contract. Agreement in Principle on the Terms of the financing proposal Capital Raising and Extension of the Maturity of the Notes Beginning in 2020, we engaged in discussions with the Ad Hoc Group Noteholders to put forward a plan to refinance the Notes and restructure our balance sheet. On March 27, 2021, Ferroglobe and Globe and certain other members of our group entered into the Lock-Up Agreement with the Ad Hoc Group Noteholders, Grupo VM and affiliates of Tyrus Capital that set forth a plan to implement the restructuring. The principal elements of the restructuring, as set forth below, are inter-conditional and must be completed by September 28, 2021, unless extended by agreement. Issuance of $60 million of new senior secured notes We intend to issue $60 million of new senior secured notes (the “Super Senior Notes”) maturing on June 30, 2025, in two tranches: (i) $40 million as soon as reasonably practicable prior to the completion date of the proposed restructuring (the “Transaction Effective Date”) and (ii) $20 million on the Transaction Effective Date. The Super Senior Notes will bear an interest rate of 9.0% per annum and will benefit from first-ranking security over substantially all of the assets of Ferroglobe and its subsidiaries. The holders of the Super Senior Notes will have super senior priority rights with respect to the proceeds from the enforcement of the collateral securing the Super Senior Notes pursuant to the provisions of an intercreditor agreement together with all amounts received or recovered by the security agent within the meaning of the intercreditor agreement and will have priority over the holders of the Amended Senior Notes (defined below). In the event that any part or all of an expected initial tranche consisting of $40 million of the Super Senior Notes are redeemed prior to certain termination events under the Lock-Up Agreement, following any notice of redemption or acceleration, a make-whole premium of $17.5 million is payable (reduced pro rata if only a part of the $40 million in Super Senior Notes is redeemed). We will be able to redeem the Super Senior Notes (i) at par in the 15-month period commencing on the Transaction Effective Date, (ii) subject to a make-whole premium in the subsequent 9-month period, (iii) at 104.5% in the further subsequent one-year period and (iv) at par thereafter. The first tranche of $40 million of Super Senior Notes will be issued to the Ad Hoc Group Noteholders. We intend to offer the holders of the Notes the right to subscribe for the Super Senior Notes. The Ad Hoc Group Noteholders have agreed to backstop any shortfall in the subscription for the Super Senior Notes subject to satisfaction of certain conditions set out in the new debt backstop letter filed as Exhibit 4.10 to this annual report. Issuance of $40 million in new equity of Ferroglobe We expect to issue at least $40 million of equity by launching an equity offering prior to the Transaction Effective Date. We will determine the specific choice of instrument and method of issuing this equity, taking into account the best interests of all of our shareholders. While we currently expect to conduct a pre-emptive rights issue or an offering of ordinary shares available to all shareholders, we will consider all available options, taking into account the best interests of all of our shareholders. An affiliate of Tyrus Capital has agreed, subject to certain terms and conditions contained in the new equity backstop letter filed as Exhibit 4.11 to this annual report, to backstop a shortfall of up to $40 million in the subscription for our ordinary shares at an issue price in an amount equal to the lower of (i) a 40% discount to the volume weighted average closing price of the ordinary shares over a number of trading days close to the Transaction Effective Date (adjusted to address any unusual trading activity), and (ii) the price per share offered in the equity raise by Ferroglobe, provided that the total number of shares issued (after giving effect to any shares issued in the equity raise) does not exceed the number of shares currently issuable without triggering pre-emption rights and that are not reserved for specific purposes. Extension of the maturity date of the Notes from March 31, 2022 to December 31, 2025 and amendment of certain other terms We intend to extend the maturity date of the Notes from March 31, 2022 to December 31, 2025 and amend certain other terms of the Notes. The extension of maturity and amendments will be implemented through an offer to exchange the Notes at par for new senior secured notes that will mature on December 31, 2025 (the “Amended Senior Notes”). As of the date of this annual report, holders holding approximately 96% in aggregate principal amount of Notes have signed the Lock-Up Agreement to support the maturity extension and amendment of the Notes. To the extent the holders of the Notes do not participate in the offer to exchange, the Notes will remain outstanding and will be due on March 31, 2022. The Amended Senior Notes will have an interest rate per annum of 9.375% and will benefit from the same security as the Super Senior Notes, subject to the provisions of an intercreditor agreement pursuant to which the holders of the Amended Senior Notes will receive the proceeds from the enforcement of the collateral securing the Amended Senior Notes after the holders of the Super Senior Notes have been repaid in full. The covenants for the Amended Senior Notes will be more restrictive than the covenants in the indenture governing the Notes. We will be able to redeem the Amended Senior Notes (i) subject to a make-whole premium in the one-year period commencing on the Transaction Effective Date, (ii) at 104.6875% in the first subsequent one-year period, (iii) at 102.3437% in the second subsequent one-year period, (iv) at 101% in the third subsequent one-year period and (v) at par thereafter. Changes to the board of directors On April 30, 2021, Mr. José María Alapont resigned from the Board of Directors. The Board is currently in the process of seeking and selecting potential candidates for appointment and nomination. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 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 4.21). |
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; goodwill - the CGU been tested for impairment annually, and whenever there is an indication of impairment and property, pant and equipment and other - whenever there is an indication of impairment. 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 less costs of disposal: 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.” 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. |
Restricted cash and cash equivalents | 4.11 Restricted cash and cash equivalents The Company classifies under “restricted cash and cash equivalents” any liquid financial assets, which meet the definition of cash and cash equivalents but the use is resticted by financial agreements. |
Provisions and contingencies | 4.12 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 held 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 the potential exposure as of the date of preparation of these financial statements. |
Leases | 4.13 Leases As a lease, the Company assesses if a contract is or contains a lease at inception of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the commencement date. The lease liability is initially measured at the present value of the minimum future lease payments, discounted using the interest rate implicit in the lease, or, if not readily determinable, the incremental borrowing rate. Lease payments include fixed payments, variable payments, as well as any extension or purchase options, if the Company is reasonably certain to exercise these options. The lease liability is subsequently measured at amortized cost using the effective interest method and remeasured with a corresponding adjustment to the related right-of-use asset when there is a change in future lease payments. The right-of-use asset comprises, at inception, the initial lease liability, any initial direct costs and, when applicable, the obligations to refurbish the asset, less any incentives granted by the lessors. The right-of-use asset is subsequently depreciated, on a straight-line basis, over the lease term or, if the lease transfers the ownership of the underlying asset to the Company at the end of the lease term or, if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, over the estimated useful life of the underlying asset. Right-of-use assets are also subject to testing for impairment if there is an indicator for impairment. Variable lease payments not included in the measurement of the lease liabilities are expensed to the consolidated statement of operations in the period in which the events or conditions which trigger those payments occur. In the statement of financial position, right-of-use assets and lease liabilities are classified, respectively, as part of property, plant and equipment and current and non-current lease liabilities. |
Current assets and liabilities | 4.14 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 | 4.15 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 probable, 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 closing 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 | 4.16 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 do dollars 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 derivative financial instruments. Also, Note 27 to these consolidated financial statements details the financial risk policies of Ferroglobe. |
Revenue recognition | 4.17 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 2020 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 | 4.18 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 | 4.19 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 | 4.20 Termination benefits Under current labour legislation, the Company is required to pay termination benefits to employees whose employment relationship is terminated under certain conditions. The cost of providing employee benefits are recognised in the period in which the benefit is earned by the employee, rather than when it is paid or payable. |
CO2 emission allowances | 4.21 CO2 emission allowances The Company recognizes emission rights (allowances) received, whether allocated by government or purchased, as intangible assets. The intangible asset recognized is initially measured at fair value, being the consideration paid (if purchased on the open market) or the current market value (if granted for less that fair value). When allowances are granted for less than fair value, the difference between the fair value and the nominal amount paid is recognized as a government grant. The grant is initially recognized as deferred income in the statement of financial position and subsequently recognized as income on a systematic basis on the proportion of the CO2 emitted over total CO2 expected to be emitted for the compliance period. In the case that a better estimate of the expected CO2 emissions for the compliance period is available, the deferred income to be recognized in the statement of financial position should be adjusted prospectively. As the Company emits CO2, it recognizes a provision for its obligation to deliver the CO2 allowances at the end of the compliance period. The provision is remeasured and registered as an expense at the end of each reporting period at market value. Intangible assets recognized for emissions allowances are not amortized and and remain valued at historical cost until either sold or surrendered in satisfaction of the Company’s obligation to deliver the allowances to the relevant authority. Sale of emissions rights In those cases that it is decided to sell some or even all of its rights in the expectation of later buying rights equal to its actual emissions, the accounting will be as follows. The emission rights sold should be derecognized from the balance sheet against the cash received. In those cases, where the price per emission right is different to the fair value per emission right at the time they were granted, a gain or a loss on the disposal of assets shall be recognized. For the deferred income originally booked for the free emission rights granted at the beginning of the compliance period that are still remain in the balance sheet at the time of sale, it should continue to be amortized over the remaining compliance period. The emission rights granted for free has been awarded to compensate for the higher operating costs incurred as a result of being subject to a cap and trade scheme. Therefore, no gain should be recognized (except for the difference in pricing as described in the previous paragraph) at the time of sale unless the emission rights sold exceeds the emission rights expected to be needed for the rest of the reporting period. The amortization of the sold emission rights shall follow the same pattern than the emission rights not sold. The deferred income for the CO2 emission rights granted shall be recognized in the Income Statement following the pattern the CO2 is emitted by the plants. |
Share-based compensation | 4.22 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 | 4.23 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 | 4.24 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, 2020 | |
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 ECPI, Inc. — Electrometallurgy - North America Delaware - USA Gatliff Services, LLC — Electrometallurgy - North America Delaware - USA Globe BG, LLC — Electrometallurgy - North America Delaware - USA GBG Financial 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 Laurel Ford Resources, 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. — Electrometallurgy - Europe Madrid - Spain Ferroatlántica de Sabón, S.L.U. — Electrometallurgy - Europe Madrid - Spain Ferroatlántica de Boo, S.L.U. — Electrometallurgy - Europe Madrid - Spain Ferroatlántica Participaciones, S.L.U. — Electrometallurgy - Europe Madrid - Spain Ferroglobe Mangan Norge A.S. — Electrometallurgy - Europe Norway Ferroglobe Manganese France S.A.S. — Electrometallurgy - Europe France FerroPem, S.A.S. — Electrometallurgy - Europe France Ferrous Receivables DAC. — Electrometallurgy - Europe Ireland Grupo FerroAtlántica, S.A.U. 100 Electrometallurgy - Europe Madrid - Spain Grupo FerroAtlántica de Servicios, S.L.U. — Electrometallurgy - Europe Madrid - Spain Kintuck (France) S.A.S. — Electrometallurgy - Europe France Kintuck A.S. — 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 Cuarzos Indus. de Venezuela (Cuarzoven), S.A. — Other segments Venezuela Emix, S.A.S. — Other segments France 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 International Ltd. — Other segments United Kingdom Ferroglobe Services (UK) Ltd. 100 Other segments United Kingdom FerroManganese Mauritania S.A.R.L. — Other segments Mauritania Ferroquartz Holdings, Ltd. (Hong Kong) — Other segments Hong Kong FerroQuartz Mauritania S.A.R.L. — Other segments Mauritania Ferrosolar OPCO Group S.L. — Other segments Spain Ferrosolar R&D S.L. — Other segments Spain FerroTambao, S.A.R.L. — Other segments Burkina Faso Globe Argentina Holdco, LLC — Other segments Delaware - USA Globe Metales S.R.L. — Other segments Argentina Globe Specialty Metals, Inc. 100 Other segments Delaware - USA GSM Financial, Inc. — Other segments Delaware - USA GSM Netherlands, B.V. — Other segments Netherlands Hidroelectricité de Saint Beron, S.A.S. — Other segments France Mangshi FerroAtlántica Mining Industry Service Company Limited — Other segments Mangshi, Dehong -Yunnan -China Mangshi Sinice Silicon Industry Company Limited — Other segments Mangshi, Dehong -Yunnan -China Ningxia Yonvey Coal Industrial Co., Ltd. — Other segments China Photosil Industries, S.A.S. — Other segments France Silicio Ferrosolar, S.L.U. — Other segments Spain Solsil, Inc. — Other segments Delaware - USA Ultracore Energy S.A. — Other segments Argentina |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
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, 2020 | |
Disclosure of operating segments [abstract] | |
Schedule of consolidated statements of income and financial position by reportable segment | 2020 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 425,277 661,624 80,572 25,334 (48,373) 1,144,434 Cost of sales (280,858) (526,771) (56,062) (19,518) 47,723 (835,486) Other operating income 2,916 35,575 131 13,724 (18,719) 33,627 Staff costs (73,988) (121,103) (11,013) (8,678) — (214,782) Other operating expense (34,315) (81,590) (14,098) (21,425) 19,369 (132,059) Depreciation and amortization charges, operating allowances and write-downs (61,664) (38,616) (7,141) (768) — (108,189) Impairment losses (35,685) (17,941) (8,677) (11,041) — (73,344) Net loss due to changes in the value of assets — — — 158 — 158 (Loss) gain on disposal of non-current assets (869) 2,156 — 5 — 1,292 Other (loss) gain — 4 — (5) — (1) Operating (loss) profit (59,186) (86,662) (16,288) (22,214) — (184,350) Finance income 679 4,262 90 12,466 (17,320) 177 Finance costs (857) (30,637) (3,796) (48,998) 17,320 (66,968) Financial derivative gain — — — 3,168 — 3,168 Exchange differences (485) (507) (1,405) 27,950 — 25,553 (Loss) Profit before tax (59,849) (113,544) (21,399) (27,628) — (222,420) Income tax (expense) benefit 14,213 (34,618) (1,049) (485) — (21,939) (Loss) profit for the year from continuing operations (45,636) (148,162) (22,448) (28,113) — (244,359) Profit for the year from discontinued operations — (5,399) — — — (5,399) (Loss) profit for the year (45,636) (153,561) (22,448) (28,113) — (249,758) Loss (profit) attributable to non-controlling interests 3,033 5 242 139 — 3,419 (Loss) profit attributable to the Parent (42,603) (153,556) (22,206) (27,974) — (246,339) 2019 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 551,500 1,049,576 136,292 43,147 (165,293) 1,615,222 Cost of sales (366,711) (868,654) (108,823) (35,923) 165,714 (1,214,397) Other operating income 10,418 47,672 1,323 19,413 (24,613) 54,213 Staff costs (87,954) (145,712) (20,333) (31,030) — (285,029) Other operating expense (60,105) (142,929) (19,457) (27,406) 24,192 (225,705) Depreciation and amortization charges, operating allowances and write-downs (72,251) (39,844) (6,459) (1,640) — (120,194) Impairment losses (174,013) (465) — (1,421) — (175,899) Net loss due to changes in the value of assets — — (530) (1,044) — (1,574) (Loss) gain on disposal of non-current assets (1,601) 180 — (802) — (2,223) Bargain purchase gain — — — — — — Operating profit (loss) (200,717) (100,176) (17,987) (36,706) — (355,586) Finance income 529 9,220 156 14,483 (23,008) 1,380 Finance costs (3,914) (22,547) (4,507) (55,265) 23,008 (63,225) Financial derivative gain — — — 2,729 — 2,729 Exchange differences (407) 3,139 (1,179) 1,331 — 2,884 Profit (loss) before tax (204,509) (110,364) (23,517) (73,428) — (411,818) Income tax (expense) benefit 8,520 22,470 7,761 2,790 — 41,541 Profit (loss) for the year from continuing operations (195,989) (87,894) (15,756) (70,638) — (370,277) Profit for the year from discontinued operations — 3,280 — 81,357 — 84,637 Profit (loss) for the year (195,989) (84,614) (15,756) 10,719 — (285,640) Loss (profit) attributable to non-controlling interests 5,123 — (368) 284 — 5,039 Profit (loss) attributable to the Parent (190,866) (84,614) (16,124) 11,003 — (280,601) 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 62,075 (187,305) 2,242,002 Cost of sales (394,044) (1,059,474) (137,177) (43,194) 187,212 (1,446,677) Other operating income 4,943 39,817 3,420 16,666 (19,002) 45,844 Staff costs (115,555) (177,047) (23,735) (22,525) — (338,862) Other operating expense (77,670) (146,143) (26,353) (46,489) 19,095 (277,560) Depreciation and amortization charges, operating allowances and write-downs (69,009) (34,974) (5,526) (4,328) — (113,837) Impairment losses — — — (58,919) — (58,919) Net gain 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 (loss) profit 59,173 101,918 11,295 (73,312) — 99,074 Finance income 804 11,035 199 32,040 (39,220) 4,858 Finance costs (4,109) (40,831) (5,298) (46,048) 39,220 (57,066) Financial derivative loss — — — 2,838 — 2,838 Exchange differences (1,194) (10,561) 2,284 (4,665) — (14,136) (Loss) profit before tax 54,674 61,561 8,480 (89,147) — 35,568 Income tax benefit (expense) 4,949 (15,048) (3,582) (6,778) — (20,459) Profit (loss) for the year from continuing operations 59,623 46,513 4,898 (95,925) — 15,109 (Loss) profit for the year from discontinued operations — — — 9,464 — 9,464 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 (Loss) profit attributable to the Parent 64,408 46,181 5,256 (72,184) — 43,661 (*) (**) The consolidated statements of financial position at December 31, 2020 and 2019, by reportable segment are as follows: 2020 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 29,702 — — — — 29,702 Other intangible assets 14,604 3,631 1,265 1,256 — 20,756 Property, plant and equipment 353,145 191,211 37,526 38,152 — 620,034 Inventories 63,765 152,680 20,375 9,729 — 246,549 Trade and other receivables (**) 609,456 477,440 43,121 930,744 (1,812,969) 247,792 Cash, restricted cash and cash equivalents 48,127 48,661 2,777 31,992 — 131,557 Other (37,007) 32,413 9,808 45,541 — 50,755 Total assets 1,081,792 906,036 114,872 1,057,414 (1,812,969) 1,347,145 Equity 412,729 174,247 17,856 (239,113) — 365,719 Provisions 33,812 120,413 5,956 3,602 — 163,783 Bank borrowings — 80,121 — 27,486 — 107,607 Obligations under finance leases 4,260 17,403 318 555 — 22,536 Debt instruments — — — 357,508 — 357,508 Other financial liabilities 3,140 331 — 60,425 — 63,896 Trade and other payables (***) 615,690 478,931 78,807 833,630 (1,854,661) 152,397 Other 12,161 34,590 11,935 13,321 41,692 113,699 Total equity and liabilities 1,081,792 906,036 114,872 1,057,414 (1,812,969) 1,347,145 2019 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 29,702 — — — — 29,702 Other intangible assets 18,504 30,248 1,322 1,193 — 51,267 Property, plant and equipment 419,695 216,809 53,650 50,752 — 740,906 Inventories 91,619 215,509 32,886 14,107 — 354,121 Trade and other receivables (**) 427,871 504,294 47,755 764,532 (1,430,186) 314,266 Cash, restricted cash and cash equivalents 25,194 65,216 3,321 29,444 — 123,175 Other 11,932 60,619 14,921 33,444 — 120,916 Total assets 1,024,517 1,092,695 153,855 893,472 (1,430,186) 1,734,353 Equity 459,637 307,131 43,466 (207,937) — 602,297 Provisions 31,220 85,167 7,108 7,448 — 130,943 Bank borrowings — 100,070 — 58,929 — 158,999 Obligations under finance leases 6,473 18,128 14 1,257 — 25,872 Debt instruments — — — 354,951 — 354,951 Other financial liabilities — 454 — 66,085 — 66,539 Trade and other payables (***) 464,592 520,937 86,837 587,552 (1,465,859) 194,059 Other 62,595 60,808 16,430 25,187 35,673 200,693 Total equity and liabilities 1,024,517 1,092,695 153,855 893,472 (1,430,186) 1,734,353 (*) These amounts correspond to balances between segments that are eliminated at consolidation . (**) Trade and other receivables includes non-current and current receivables from group that eliminated in the consolidated process. (***) Trade and other payables includes non-current and current payables from group that are eliminated in the consolidated process. |
Schedule of sales by product line | 2020 2019 2018 US$'000 US$'000 US$'000 Silicon metal 463,217 539,872 933,366 Manganese-based alloys 267,469 447,311 527,757 Ferrosilicon 176,447 275,368 359,374 Other silicon-based alloys 126,817 181,736 215,697 Silica fume 25,888 33,540 37,061 Energy — — 12,149 Other 84,596 137,395 156,598 Total 1,144,434 1,615,222 2,242,002 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Schedule of changes in the carrying amount of goodwill | January 1, Impairment Exchange December 31, Impairment Exchange December 31, 2019 (Note 25.5) differences 2019 (Note 25.5) differences 2020 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Globe Specialty Metals, Inc. 202,848 (174,008) 862 29,702 — — 29,702 Total 202,848 (174,008) 862 29,702 — — 29,702 |
Schedule of key assumptions used in the determination of recoverable value | 2020 2019 U.S. Canada U.S. Canada Weighted average cost of capital 10.3 % — % 11.1 % 11.5 % Long-term growth rate 2.0 % — % 2.0 % 2.0 % Normalized tax rate 21.0 % — % 21.0 % 26.6 % |
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$) Electrometallurgy - U.S. 29.7 96.0 59.4 (46.5) (6.8) 7.1 (86.6) 86.6 Total 29.7 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of changes in the carrying amount of other intangible assets | Other Accumulated Development Power Supply Computer Intangible Depreciation Impairment Expenditure Agreements Rights of Use Software Assets (Note 25.3) (Note 25.5) Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2019 50,985 37,836 22,391 5,927 39,813 (79,517) (25,613) 51,822 Additions 870 — — — 22,842 (7,305) (211) 16,196 Disposals (553) — (5,595) (780) (8,295) 3,845 5,281 (6,097) Exchange differences (976) — (263) 2 (142) 694 468 (217) Business disposal — — — — (11,548) — 1,111 (10,437) Balance at December 31, 2019 50,326 37,836 16,533 5,149 42,670 (82,283) (18,964) 51,267 Additions 262 — — — 42,561 (7,183) — 35,640 Disposals — — — — (68,713) — — (68,713) Exchange differences 4,286 — 516 100 2,354 (3,576) (1,118) 2,562 Business disposal — — — — — — — — Balance at December 31, 2020 54,874 37,836 17,049 5,249 18,872 (93,042) (20,082) 20,756 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of property, plant and equipment, net of related accumulated depreciation and impairment | Advances and Property, Plant Other Items of Other Fixtures, and Equipment Property, Other Items Other Items Land and Plant and Tools and in the Course of Mineral Plant and of Leased of Leased Accumulated Buildings Machinery Furniture Construction Reserves Equipment Land and Plant and Depreciation Impairment Total Buildings machinery (Note 25.3) (Note 25.5) US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2019 235,309 1,487,047 11,945 123,364 59,408 36,341 — — (907,355) (157,197) 888,862 IFRS 16 Adjustments at 1 January 2019 — — — — — — 12,417 18,055 (9,703) — 20,769 Additions 74 1,409 32 34,039 — — 777 3,089 (103,121) (1,224) (64,925) Disposals and other (13,160) (78,774) (3,399) (7,426) — (2,195) — — 48,560 48,775 (7,619) Transfers from/(to) other accounts 408 38,445 220 (39,073) — — — — — — — Exchange differences (2,822) (8,908) 36 (1,881) 94 317 104 189 9,091 2,000 (1,780) Business combinations (Note 5) — — — — — — — — — — — Business disposals (23,223) (165,382) (15) (2,372) — — — — 96,591 — (94,401) Balance at December 31, 2019 196,586 1,273,837 8,819 106,651 59,502 34,463 13,298 21,333 (865,937) (107,646) 740,906 Additions 1,391 11,095 302 27,059 — 30 3,374 1,405 (101,006) (71,929) (128,279) Disposals and other (780) (17,664) (612) (1,715) — — — — 17,337 4 (3,430) Transfers from/(to) other accounts 904 15,830 — (16,861) — — — 127 — (6,937) (6,937) Exchange differences 9,924 48,487 (87) 8,895 (177) (1,305) 916 1,581 (45,901) (4,559) 17,774 Balance at December 31, 2020 208,025 1,331,585 8,422 124,029 59,325 33,188 17,588 24,446 (995,507) (191,066) 620,034 |
Financial assets and other re_2
Financial assets and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other financial assets | |
Schedule of classification financial assets | The company’s financial assets and their classification under IFRS 9 are as follows: 2020 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 3,456 2,609 — 6,065 Receivables from related parties 23 5,530 — — 5,530 Trade receivables 10.2 202,233 — — 202,233 Other receivables 10.2 3,847 — — 3,847 Cash and cash equivalents 102,714 — — 102,714 Restricted cash 28,843 — — 28,843 Total financial assets 346,623 2,609 — 349,232 |
Schedule of restricted cash and cash equivalents | 2020 2019 US$'000 US$'000 Cash and cash equivalents 102,714 94,852 Current - Non Current restricted cash presented as Cash 28,843 28,323 Escrow: Hydro sale 6,136 5,617 ABL 22,500 22,500 Others 207 206 Total 131,557 123,175 |
Schedule of other financial assets | 2020 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Other financial assets at amortised cost 3,456 — 3,456 Listed equity securities 1,601 1,008 2,609 Total 5,057 1,008 6,065 Other financial assets at amortized cost mainly comprises deposits given to French government by Ferropem ($2,679 thousands), a Ferroglobe subsidiary, in respect of effort de construction . The law in France requires employers and companies to provide a certain size to invest a portion of their budget in the construction or renovation of housing (including through direct investment, providing mortgages, and other). In this case, the mandatory contribution has been made in the form of a loan, to be returned by the French government in twenty years. Listed equity securities comprises investments held by Globe Argentina Metales in Pampa Energía. At December 31, 2019, other financial assets comprise the following: 2019 Non- Current Current Total US$'000 US$'000 US$'000 Other financial assets held with third parties: Other financial assets at amortised cost 2,618 — 2,618 Listed equity securities — 5,544 5,544 Total 2,618 5,544 8,162 |
Schedule of trade and other receivables | 2020 2019 US$'000 US$'000 Trade receivables 203,930 237,022 Less – allowance for doubtful debts (1,697) (4,543) 202,233 232,479 Tax receivables (1) 13,166 45,948 Government grant receivables 23,016 19,748 Other receivables 3,847 10,889 Total 242,262 309,064 (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. |
Schedule of changes in the allowance for doubtful debts | Allowance US$'000 Balance at January 1, 2019 4,964 Impairment losses recognized 2,517 Amounts written off as uncollectible (100) Changes in the scope of consolidation (2,750) Exchange differences (88) Balance at December 31, 2019 4,543 Impairment losses recognized 504 Amounts written off as uncollectible (3,666) Changes in the scope of consolidation — Exchange differences 315 Balance at December 31, 2020 1,697 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories. | |
Schedule of Inventory | 2020 2019 US$'000 US$'000 Finished goods 100,711 158,056 Raw materials in progress and industrial supplies 99,259 140,689 Other inventories 46,274 54,564 Advances to suppliers 305 812 Total 246,549 354,121 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other assets abstract | |
Schedule of other non current and current assets | 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Guarantees and deposits given 10,290 253 10,543 1,100 9 1,109 Prepayments and accrued income — 10,656 10,656 10 13,415 13,425 Other assets 1,614 9,805 11,419 487 10,252 10,739 Total 11,904 20,714 32,618 1,597 23,676 25,273 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [abstract] | |
Summary of majority shareholders | Number of Shares Percentage of Name Beneficially Owned Outstanding Shares (*) Grupo Villar Mir, S.A.U. 91,125,521 % (*) 169,197,366 ordinary shares were outstanding at 31 December 2020, comprising 170,863,773 shares in issue less 1,666,407 shares held in treasury |
The disclosure of valuation adjustments. | Valuation adjustments comprise the following at December 31: 2020 2019 US$'000 US$'000 Actuarial gains and losses 4,833 1,248 Hedging instruments and other 922 (3,417) Total 5,755 (2,169) |
Schedule of net financial debt | Management’s review of the Company’s capital structure includes monitoring of the leverage ratio, which was as follows at December 31: 2020 2019 2018 US$'000 US$'000 US$'000 Gross financial debt (*) 551,547 606,361 645,389 Cash, restricted cash and cash equivalents (131,557) (123,175) (216,647) Total net financial debt 419,990 483,186 428,742 Total equity (**) 365,719 602,297 884,372 Total net financial debt / total equity 114.84 % 80.22 % 48.48 % (*) (**) |
Summary of gross financial debt | 2020 2019 2018 Balance Balance Balance US$'000 % US$'000 % US$'000 % Non-current gross financial debt 394,985 71.61 % 548,531 90.46 % 560,738 86.88 % Current gross financial debt 156,562 28.39 % 57,830 9.54 % 84,651 13.12 % Total gross financial debt 551,547 100.00 % 606,361 100.00 % 645,389 100.00 % |
Schedule of changes in non-controlling interests | Balance US$'000 Balance at January 1, 2019 116,145 Loss for the year (5,039) Increase of Parent’s indirect ownership interest in FerroAtlántica de Venezuela S.A. 5,881 Translation differences and other 1,090 Balance at December 31, 2019 118,077 Loss for the year (3,419) Translation differences and other (154) Balance at December 31, 2020 114,504 |
Summary of financial information for non-controlling interests | 2020 2019 WVA QSLP WVA QSLP US$'000 US$'000 US$'000 US$'000 Statement of Financial Position Non-current assets 80,887 67,806 80,923 63,639 Current assets 58,404 37,095 56,839 30,931 Non-current liabilities 14,677 18,186 14,677 19,944 Current liabilities 23,208 16,320 27,579 7,277 Income Statement Sales 156,995 70,637 167,503 78,414 Operating profit 5,900 3,113 6,688 252 Profit before taxes 5,900 2,898 6,423 (36) Net (loss) income 3,008 1,666 3,276 (70) Cash Flow Statement Cash flows from operating activities 28,683 15,387 2,287 3,720 Cash flows from investing activities (7,977) (5,227) (2,256) (3,544) Cash flows from financing activities — — — 227 Exchange differences on cash and cash equivalents in foreign currencies — 45 — 149 Beginning balance of cash and cash equivalents 6,566 2,319 6,535 1,767 Ending balance of cash and cash equivalents 27,272 12,524 6,566 2,319 |
Earnings (loss) per ordinary _2
Earnings (loss) per ordinary share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of earnings (loss) per share calculation | 2020 2019 2018 Basic earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) (246,339) (280,601) 43,661 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Basic earnings (loss) per ordinary share (US$) (1.46) (1.66) 0.25 Diluted earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to the Parent (US$'000) (246,339) (280,601) 43,661 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Effect of dilutive securities — — 123,340 Weighted average dilutive shares outstanding 169,269,281 169,152,905 171,529,612 Diluted earnings (loss) per ordinary share (US$) (1.46) (1.66) 0.25 |
Provisions - (Tables)
Provisions - (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of other provisions [line items] | |
Schedule showing breakdown of non-current and current provisions | 2020 2019 Non- Current Current Total Non- Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Provision for pensions 56,395 191 56,586 56,679 1,050 57,729 Environmental provision 2,910 1,256 4,166 2,923 1,185 4,108 Provisions for litigation — 1,355 1,355 — 3,905 3,905 Provisions for third-party liability 10,759 — 10,759 9,263 — 9,263 Provisions for C02 emissions allowances — 40,161 40,161 5,776 29,162 34,938 Other provisions 38,423 12,333 50,756 10,211 10,789 21,000 Total 108,487 55,296 163,783 84,852 46,091 130,943 |
Schedule of changes in provisions | The changes in the various line items of provisions in 2020 and 2019 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$'000 Balance at January 1, 2019 52,726 3,211 2,399 7,270 27,970 22,781 116,357 Charges for the year 7,444 820 2,166 2,361 18,794 2,958 34,543 Provisions reversed with a credit to income (1,798) — — (74) — (1,101) (2,973) Amounts used (2,019) — (650) (179) (9,452) (723) (13,023) Provision against equity 2,244 — — — — — 2,244 Exchange differences and others (868) 77 (10) (115) (249) (441) (1,606) Disposals from business divestitures — — — — (2,125) (2,474) (4,599) Balance at December 31, 2019 57,729 4,108 3,905 9,263 34,938 21,000 130,943 Charges for the year 5,340 117 184 268 38,249 30,890 75,048 Provisions reversed with a credit to income (1,843) — — — — (1,972) (3,815) Amounts used (3,514) (26) (2,886) (198) (35,860) — (42,484) Provision against equity (3,260) — — 568 — — (2,692) Exchange differences and others 2,134 (33) 152 858 2,834 838 6,783 Balance at December 31, 2020 56,586 4,166 1,355 10,759 40,161 50,756 163,783 |
France | |
Disclosure of other provisions [line items] | |
Schedule of changes in obligation | 2020 2019 US$'000 US$'000 Obligations at the beginning of year 32,795 28,049 Current service cost 1,580 1,951 Borrowing costs 242 524 Actuarial differences (2,170) 4,432 Benefits paid (1,037) (1,581) Exchange differences 3,086 (580) Obligations at the end of year 34,496 32,795 |
Schedule of estimated future benefit payments | The following table reflects the gross benefit payments that are expected to be paid for the benefit plans for the year ended December 31, 2020: 2020 US$'000 2021 1,128 2022 1,129 2023 2,018 2024 2,322 2025 1,691 Years 2026-2030 9,065 |
South Africa | |
Disclosure of other provisions [line items] | |
Schedule of changes in obligation | In this regard, the changes of this provision in 2020 and 2019 were as follows: 2020 2019 US$'000 US$'000 Obligations at beginning of year 4,601 5,429 Current service cost 47 90 Borrowing costs 435 511 Actuarial differences (1,238) (1,291) Benefits paid (278) (254) Exchange differences (106) 116 Obligations at end of year 3,461 4,601 |
Schedule of breakdown in percentage of plan assets | The breakdown, in percentage, of the plan assets are as follows: 2020 2019 Cash 1.84 % 1.50 % Equity 41.70 % 42.25 % Bond 18.53 % 15.64 % Property 1.68 % 2.78 % International 32.02 % 32.51 % Others 4.23 % 5.32 % 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: 2020 2019 US$'000 US$'000 Fair value of plan assets at the beginning of the year 2,126 1,906 Interest income on assets 200 194 Benefits paid — — Actuarial differences (77) (81) Other (45) 107 Fair value of plan assets at the end of the year 2,204 2,126 Actual return on assets 122 113 |
Venezuela | |
Disclosure of other provisions [line items] | |
Schedule of changes in obligation | In this regards, the changes of this provision in 2020 and 2019 2020 2019 US$'000 US$'000 Obligations at the beginning of year 2,577 534 Current service cost 26 50 Borrowing costs 596 1,128 Benefits paid (2) (3) Exchange differences (956) (1,200) Other (2,220) 2,068 Obligations at the end of year 22 2,577 |
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 2020 2019 2020 2019 2020 2019 Salary increase 1.60%-6.10% 1.60%-6.10% 5.80%-9.10% 7.10%-7.60% % % % Discount rate 0.75% 0.75% 9.80%-13.2% 9.5%-10.7% % % % Expected inflation rate 1.60% 1.60% 4.80%-7.60% 5.1%-6.1% % % % Mortality TGH05/TGF05 TGH05/TGF05 SA 85-90 / PA (90) SA 85-90 / PA (90) GAM 83 UP94 Retirement age 65 65 63 63 62-63 |
North America | |
Disclosure of other provisions [line items] | |
Schedule of changes in obligation | The changes to these obligations in the current year ended December 31, 2020 were as follows: 2020 USA Canada Pension Pension Post-retirement Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 Obligations at the beginning of year 37,272 25,626 8,739 71,637 Service cost 147 149 330 626 Borrowing cost 1,085 800 275 2,160 Actuarial differences 3,020 2,252 278 5,550 Benefits paid (2,083) (1,249) (170) (3,502) Exchange differences 532 180 712 Expenses (227) — — (227) Obligations at the end of year 39,214 28,110 9,632 76,956 |
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 2021 3,281 192 2022 3,300 189 2023 3,363 204 2024 3,402 214 2025 3,492 240 Years 2026-2030 17,561 1,550 |
Schedule of breakdown in percentage of plan assets | The breakdown as of December 31, 2020 and 2019 of the assets by class are: 2020 2019 Cash 33 % 1 % Equity Mutual Funds 10 % 44 % Fixed Income Securities 32 % 55 % Assets held by insurance company 25 % — % Total 100 % 100 % |
Schedule showing fair value rollforward of plan assets | For the year ended December 31, 2020, the changes in plan assets were as follows: 2020 USA Canada Pension Pension Plans Plans Total US$'000 US$'000 US$'000 Fair value of plan assets at the beginning of the year Interest income on assets 973 530 1,503 Benefits paid (2,083) (1,187) (3,270) Actuarial return on plan assets 3,681 1,070 4,751 Exchange differences — 711 711 Other (180) 953 773 Fair value of plan assets at the end of the year 36,011 22,337 58,348 |
Summary of the main actuarial assumptions used to calculate obligations | The assumptions used to determine benefit obligations at December 31, 2020 and 2019 for the North American plans are as follows: North America – 2020 North America – 2019 USA Canada USA Canada Pension Pension Postretirement Pension Pension Postretirement Plan Plan Plan Plan Plan Plan Salary increase N/A 2.75% - 3.00% N/A N/A 2.75% - 3.00% N/A Discount rate 2.25% 2.61% 2.75% 3.00% 3.15% 3.15% Expected inflation rate N/A N/A N/A N/A N/A N/A Mortality Pri-2012 Blue Collar Mortality CPM2014-Private CPM2014-Private Scale CPM-B Pri-2012 Blue Collar Mortality CPM2014-Private CPM2014-Private Scale CPM-B Retirement age 65 58-60 58-60 65 58-60 58-60 |
Schedule showing reconciliation of benefit obligations, plan assets and funded status | Benefit Obligations and Funded Status – The following provides a reconciliation of the benefit obligations, plan assets and funded status of the North American plans as of December 31, 2020 and 2019: 2020 2019 USA Canada USA Canada Post- Post- Pension Pension retirement Pension Pension retirement Plans Plans Plans Total Plans Plans Plans Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Benefit obligation 39,214 28,110 9,632 76,956 37,272 25,626 8,739 71,637 Fair value of plan assets (36,011) (22,337) — (58,348) (33,620) (20,260) — (53,880) Provision for pensions 3,203 5,773 9,632 18,608 3,652 5,366 8,739 17,757 |
FerroPem, S.A.S. | |
Disclosure of other provisions [line items] | |
Schedule of estimated future benefit payments | The following table reflects the gross benefit payments that are expected to be paid for the benefit plans for the year ended December 31, 2020: 2020 US$'000 2021 - 2022 585 2023 293 2024 292 2025 293 Years 2026-2030 1,499 |
Bank borrowings - (Tables)
Bank borrowings - (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of non-current and current bank borrowings | 2020 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 100,000 — 27,237 27,237 Borrowings from receivable factoring facility 73,626 — 74,844 Other loans — 5,277 249 5,526 Total 5,277 102,330 107,607 2019 Non-Current Current Limit Amount Amount Total US$'000 US$'000 US$'000 US$'000 Borrowings carried at amortised cost: Credit facilities 100,000 45,449 12,600 58,049 Other loans 150,000 98,939 2,011 100,950 Total 144,388 14,611 158,999 |
Schedule of credit facilities | 2020 2019 US$'000 US$'000 Secured loans carried at amortised cost Principal amount 31,155 62,835 Unamortised issuance costs (3,918) (4,786) Accrued interest — — Total 27,237 58,049 Amount due for settlement within 12 months 27,237 12,600 Amount due for settlement after 12 months — 45,449 Total 27,237 58,049 |
Schedule of non-current and current bank borrowings by currency | The breakdown by currency of bank borrowings at December 31, is as follows: 2020 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars — 27,486 27,486 Borrowings in Euros 5,277 74,844 80,121 Total 5,277 102,330 107,607 2019 Non-Current Current Principal Principal Amount Amount Total US$'000 US$'000 US$'000 Borrowings in US Dollars 144,388 14,611 158,999 Borrowings in other currencies — — — Total 144,388 14,611 158,999 |
Schedule of non-current bank borrowings by maturity | 2020 2021 2022 Total US$'000 US$'000 US$'000 Credit facilities 27,237 — 27,237 Borrowings from supplier factoring facility 74,844 — 74,844 Other loans 249 5,277 5,526 Total 102,330 5,277 107,607 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of lease obligations | Lease obligations as at December 31 are as follows: 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Other leases 13,994 8,542 22,536 16,972 8,900 25,872 Total 13,994 8,542 22,536 16,972 8,900 25,872 |
Schedule of non-current payment obligations under leases by maturity | The detail, by maturity, of the non-current payment obligations under leases as of December 31, 2020 is as follows: 2022 2023 2024 2025 2026 and after Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Other leases 6,177 4,319 1,287 824 1,387 13,994 Total 6,177 4,319 1,287 824 1,387 13,994 |
Schedule of minimum lease payments | Undiscounted minimum lease payments Present value of minimum lease payments 2020 2019 2020 2019 US$'000 US$'000 US$'000 US$'000 Within 1 year 8,836 10,161 8,542 8,900 Between 1 and 5 years 13,488 17,569 12,608 16,256 After 5 years 1,748 911 1,386 716 Total minimum lease payments 24,072 28,641 22,536 25,872 Less: amounts representing finance lease charges 1,536 2,769 — — Present value of minimum lease payments 22,536 25,872 22,536 25,872 |
Schedule of effect on components of consolidated financial statements | 2020 US$'000 Balance at December 31, 2019 (25,872) Additions (5,471) Disposals and other 102 Interest (1,358) Lease payments 11,673 Exchange differences (1,610) Balance at December 31, 2020 (22,536) |
Schedule of leases presented in the statement of financial position | 2020 US$'000 Non-current assets Leased land and buildings 17,588 Leased plant and machinery 24,446 Accumulated depreciation (22,498) Non-current liabilities Lease liabilities (13,994) Current liabilities Lease liabilities (8,542) |
Schedule of leases presented in the consolidated income statement | 2020 US$'000 Depreciation and amortization charges, operating allowances and write-downs Depreciation of right of use assets 10,112 Finance costs Interest expense on lease liabilities 1,358 Exchange differences Currency translation gains on lease liabilities (1,610) Currency translation losses on right of use assets 2,138 |
Schedule of leases presented in the statement of cash flows | 2020 US$'000 Payments for: Principal 10,315 Interest 1,358 |
Debt instruments (Tables)
Debt instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of debt instruments | Debt instruments comprise the following at December 31: 2020 2019 US$'000 US$'000 Unsecured notes carried at amortised cost Principal amount 350,000 350,000 Unamortised issuance costs (3,380) (5,986) Accrued coupon interest 10,888 10,937 Total 357,508 354,951 Amount due for settlement within 12 months 10,888 10,937 Amount due for settlement after 12 months 346,620 344,014 Total 357,508 354,951 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of financial liabilities [abstract] | |
Schedule of other financial liabilities | Other financial liabilities comprise the following at December 31: 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Financial loans from government agencies 29,094 34,802 63,896 33,557 23,382 56,939 Derivative financial instruments — — — 9,600 — 9,600 Total 29,094 34,802 63,896 43,157 23,382 66,539 |
Schedule of Derivative financial instruments | 2020 2019 US$'000 US$'000 Derivatives designated as hedging instruments Cross currency swap — 7,481 Derivatives not designated as hedging instruments Cross currency swap — 2,119 — 9,600 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables. | |
Schedule of trade and other payables | Trade and other payables compose the following at December 31: 2020 2019 US$'000 US$'000 Payable to suppliers 147,512 189,092 Trade notes and bills payable 1,689 137 Total 149,201 189,229 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about business combination [line items] | |
Schedule of other liabilities | 2020 2019 Non- Non- Current Current Total Current Current Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Payable to non-current asset suppliers 130 2,633 2,763 182 6,989 7,171 Guarantees and deposits 17 266 283 18 — 18 Remuneration payable 20 27,552 27,572 38 33,003 33,041 Tax payables — 23,177 23,177 — 22,459 22,459 Contingent consideration 14,859 1,773 16,632 20,338 1,626 21,964 Other liabilities 1,741 10,592 12,333 5,330 32,352 37,682 Total 16,767 65,993 82,760 25,906 96,429 122,335 |
Schedule of tax payables | 2020 2019 Current Total Current Total US$'000 US$'000 US$'000 US$'000 VAT 4,061 4,061 8,234 8,234 Accrued social security taxes payable 13,266 13,266 7,781 7,781 Personal income tax withholding payable 1,111 1,111 1,351 1,351 Other 4,739 4,739 5,093 5,093 Total 23,177 23,177 22,459 22,459 |
Schedule of summary of options outstanding | Number of awards Outstanding as of December 31, 2018 1,025,042 Granted during the period 1,184,441 Expired/forfeited during the period (33,630) Outstanding as of December 31, 2019 2,175,853 Granted during the period 882,850 Exercised during the period (150,494) Outstanding as of December 31, 2020 2,908,209 Exercisable as of December 31, 2020 456,968 |
Schedule of share based payment arrangements | Performance Period Fair Value at Grant Date (three years ended) Expiration Date Exercise Price Grant Date 2020 2019 December 16, 2020 December 31, 2024 December 16, 2030 nil $ 1.23 882,850 — March 13, 2019 December 31, 2022 March 13, 2029 nil $ 2.69 1,184,441 1,184,441 June 14, 2018 N/A June 13, 2028 nil $ 9.34 78,694 129,930 March 21, 2018 December 31, 2021 March 20, 2028 nil $ 22.56 287,080 287,080 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 $ 10.96 834 19,463 June 1, 2017 December 31, 2020 June 1, 2027 nil $ 16.77 346,215 382,002 November 24, 2016 December 31, 2019 November 24, 2026 nil $ 16.66 110,753 155,595 2,908,209 2,175,853 |
Schedule of performance condition of share options granted | Vesting Conditions 40% base on share price 30% base on Operating (Loss) profit plus depreciation and amortization charges 20% based on net cash flow |
Schedule of assumptions used to estimate the fair value of Ferroglobe stock option | Grant date December 16, 2020 March 13, 2019 March 21, 2018 June 20, 2017 June 01, 2017 Fair value at grant date $ $ $ $ $ Grant date share price $ $ $ $ $ Exercise price Nil Nil Nil Nil Nil Expected volatility % % % % Option life 4.00 years 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 NA % 2.1 % (0.3) % 4.0 % Median comparator group TSR at grant date NA % (6.2) % (7.2) % (3.7) % Median index TSR at grant date NA % (8.4) % % % |
Globe Specialty Metals, Inc. | |
Disclosure of detailed information about business combination [line items] | |
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, 2018 103,630 $ 19.40 0.44 $ 1,774 Expired/forfeited during the period (78,630) 20.25 Outstanding as of December 31, 2019 25,000 $ 16.70 0.16 $ — Expired/forfeited during the period (25,000) — Outstanding as of December 31, 2020 — $ 0.16 $ — Exercisable as of December 31, 2020 — $ 0.16 $ — |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tax matters | |
Schedule of income taxes | 2020 2019 2018 US$'000 US$'000 US$'000 Consolidated income statement Current income tax Current income tax charge 4,307 2,133 22,795 Adjustments in current income tax in respect of prior years 901 4,753 (865) Adjustments in current income tax due to discounted operations — — (3,776) Total 5,208 6,886 18,154 Deferred tax Origination and reversal of temporary differences (48,618) 2,500 Impact of tax rate changes - (46) 98 Impairment of deferred tax assets 37,660 — — Adjustments in deferred tax in respect of prior years 33 237 (293) Total 16,732 (48,427) 2,305 Income tax expense (benefit) 21,939 (41,541) 20,459 |
Schedule of statutory income tax rate | 2020 2019 2018 US$'000 US$'000 US$'000 Accounting profit/(loss) before income tax (222,420) (411,818) 35,568 Adjustment for discontinued operations (5,399) (28,135) — Accounting profit/(loss) before income tax (227,819) (439,954) — At weighted effective tax rate of 24% (2019: 24% and 2018: 49%) (54,294) (105,369) 17,409 Non-taxable income/(expenses) — (17,020) (14,856) Non-deductible expenses 6,779 49,390 25,079 Movements in unprovided deferred tax — 4,604 7,620 Differing territorial tax rates 3,064 (3,987) (2,262) Adjustments in respect of prior periods (50) 2,160 (1,038) Other items 70,123 20,407 (4,936) Elimination of effect of interest in joint ventures 899 917 1,079 Other permanent differences (389) 9,234 1,242 Incentives and deductions (2,456) (1,302) (6,944) US State taxes (1,737) (824) 1,235 Taxable capital gains — 249 607 Adjustments in current income tax due to discontinued operations — — (3,776) Income tax (expense)/benefit 21,939 (41,541) 20,459 |
Schedule of current tax assets and liabilities | 2020 2019 US$'000 US$'000 Current tax assets Income tax receivable 12,072 27,930 Current tax liabilities Income tax payable 2,538 3,048 Net tax assets 9,534 24,882 |
Schedule of changes in deferred tax assets and liabilities | Deferred tax assets and liabilities For the year ended December 31, 2020: Opening Prior Year Recognised in Impairment of Reclassifications Exchange Closing Balance Charge P&L Deferred Tax Assets Differences Balance US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Intangible assets (414) — (44) — (0) (458) Biological assets (1) — — — — (1) Provisions 15,928 — 2,757 (3,357) (1,655) 562 14,235 Property, plant & equipment (64,697) — 16,094 (219) 434 125 (48,263) Inventories (2,542) — 639 1,993 (26) 64 Hedging Instruments — — — — 0 0 Tax losses 41,728 — (1,073) (33,162) (154) 2,187 9,525 Incentives & credits 2,139 — — (921) 169 40 1,426 Partnership interest (9,890) — 1,647 (740) — (8,983) Other 3,243 — 909 533 (10) 4,674 Total (14,506) — 20,928 (37,660) 580 2,878 (27,781) Ferroglobe has writen off the deferred tax assets in relation to Spanish $18,896 thousand, French $15,826 thousand, SouthAfrica $1,044 thousand and Argentinean $1,894 thousand, from the balance sheet. In these tax jurisdictions there is not sufficient taxable temporary differences that can be utilised against the unused tax losses. Presented in the statement of financial position as follows: 2020 2019 US$'000 US$'000 Deferred tax assets 31,528 68,404 Deferred tax liabilities (59,309) (82,910) Net Total Deferred Tax (Liability) (27,781) (14,506) |
Schedule of unrecognised deductible temporary differences, unused tax losses and unused tax credits | 2020 2019 US$'000 US$'000 Unused tax losses 513,189 428,665 Unused tax credits 8,685 7,949 Unrecognised deductible temporary differences 106,952 79,733 Total 628,826 516,347 |
Related party transactions an_2
Related party transactions and balances (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |
Schedule of balances with related parties | Balances with related parties at December 31 are as follows: 2020 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 3,078 — — Villar Mir Energía, S.L.U. 2,454 — — 2,458 Espacio Information Technology, S.A.U. — — — 701 Other related parties — (2) — 37 Total 2,454 3,076 — 3,196 2019 Receivables Payables Non-Current Current Non-Current Current US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — 2,953 — — Villar Mir Energía, S.L.U. 2,247 — — 2,022 Espacio Information Technology, S.A.U. — — — 2,651 Other related parties — 2 — 157 Total 2,247 2,955 — 4,830 |
Schedule of transactions with related parties and other related parties | 2020 Sales and Other Finance Operating Operating Income Income Cost of Sales Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — — 16 Villar Mir Energía, S.L.U. — 39,900 647 — Espacio Information Technology, S.A.U. — — 3,171 — Enérgya VM Gestión, S.L — — 79 — Aurinka — 1 308 — Other related parties — — 3 — Total — 39,901 4,208 16 2019 Sales and Other Finance Operating Operating Income Income Cost of Sales Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — 1 68 Villar Mir Energía, S.L.U. — 65,406 681 — Espacio Information Technology, S.A.U. — — 3,566 — Enérgya VM Generación, S.L 1 — 1 — Enérgya VM Gestión, S.L — 1 89 — Aurinka — — 3,206 — Other related parties 143 — 7 — Total 144 65,407 7,551 68 2018 Sales and Other Finance Operating Operating Income Income Cost of Sales Expenses (Note 25.4) US$'000 US$'000 US$'000 US$'000 Inmobiliaria Espacio, S.A. — — 6 72 Villar Mir Energía, S.L.U. — 99,939 803 — Espacio Information Technology, S.A.U. — — 4,226 — Enérgya VM Generación, S.L 11,874 — 48 — Enérgya VM Gestión, S.L — — 76 — Other related parties 20 — 119 — Total 11,894 99,939 5,278 72 |
Discontinued operations | |
Disclosure of transactions between related parties [line items] | |
Schedule of transactions with related parties and other related parties | At 31 December, 2020, there were not discontinued transactions considered with Related Parties. Transactions with related parties in 2019 and 2018 are as follows: 2019 Sales and Other Operating Operating Income Cost of Sales Expenses US$'000 US$'000 US$'000 Villar Mir Energía, S.L.U. — — 373 Enérgya VM Generación, S.L 12,635 — 117 Enérgya VM Gestión, S.L — 66 — Total 12,635 66 490 2018 Sales and Other Operating Operating Income Cost of Sales Expenses US$'000 US$'000 US$'000 Villar Mir Energía, S.L.U. — — 664 Enérgya VM Generación, S.L 31,898 — 224 Enérgya VM Gestión, S.L — 42 43 Total 31,898 42 931 |
Income and expenses (Tables)
Income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income and expenses | |
Sales by segment | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Electrometallurgy - North America 425,277 551,500 710,716 Electrometallurgy - Europe 661,624 1,049,576 1,447,973 Electrometallurgy - South Africa 80,572 136,292 208,543 Other segments 25,334 43,147 62,075 Eliminations (48,373) (165,293) (187,305) Total 1,144,434 1,615,222 2,242,002 |
Sales by geographical area | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Spain 133,370 Germany 191,107 Italy 42,067 Other EU Countries 167,934 USA 404,633 Rest of World 205,323 Total 1,144,434 (*) |
Schedule of average monthly number of employees | Staff costs are comprised of the following for the years ended December 31: 2020 2019 2018 (*) US$'000 US$'000 US$'000 Wages, salaries and similar expenses Pension plan contributions Employee benefit costs Total |
Schedule of staff costs | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Wages, salaries and similar expenses Pension plan contributions Employee benefit costs Total (*) |
Schedule of depreciation and amortization charges, operating allowances and write-downs | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Amortization of intangible assets (Note 8) 7,183 7,305 9,312 Depreciation of property, plant and equipment (Note 9) 101,006 112,824 104,532 Other write-downs and reversals — 65 (7) Total 108,189 120,194 113,837 (*) |
Schedule of finance income | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Finance income of related parties (Note 23) 16 68 72 Other finance income 161 1,312 4,786 Total 177 1,380 4,858 (*) |
Schedule of finance costs | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Interest on debt instruments 34,989 33,705 34,188 Interest on loans and credit facilities 8,404 15,533 8,249 Interest on note and bill discounting 363 373 205 Interest on leases 1,358 1,972 119 Trade receivables securitization expense (Note 10) 15,044 9,192 11,708 Other finance costs 6,810 2,450 2,597 Total 66,968 63,225 57,066 (*) |
Schedule of changes in impairment losses | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Impairment of goodwill (Note 7) — 174,008 — Impairment of intangible assets (Note 8) — 211 16,073 Impairment of property, plant and equipment (Note 9) 71,929 1,224 42,846 Impairment of non-current financial assets — 456 — Impairment of other 1,415 — — Impairment losses 73,344 175,899 58,919 (Increase) decrease in fair value of biological assets (Note 28) — 530 7,615 Other loss / (profit) (158) 1,044 8 Net gain (loss) due to changes in the value of assets (158) 1,574 7,623 (*) |
Schedule of (loss) gain on disposal of non-current assets | 2020 2019 2018 (*) US$'000 US$'000 US$'000 Gain on disposal of intangible assets (1,692) — — Gain on disposal of property, plant and equipment (473) (353) (2,950) Loss on disposal of property, plant and equipment 873 1,761 162 Gain on disposal of other non-current assets — (6) (29) Loss (gain) on disposal of subsidiary — 821 (11,747) Total (1,292) 2,223 (14,564) (*) During 2020, Ferroglobe has sold CO2 emissions rights that have been derecognized from the balance sheet against the cash received, as the price per emission right was lower to the fair value per emission right at the time they were granted, an income of $1,692 thousand has been recognized on the disposal of intangible assets. |
Remuneration of key managemen_2
Remuneration of key management personnel (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Remuneration of key management personnel | |
Schedule of remuneration of key management personal | 2020 2019 2018 US$'000 US$'000 US$'000 Fixed remuneration 5,086 5,404 6,068 Variable remuneration 756 254 — Contributions to pension plans and insurance policies 319 350 379 Share-based compensation 2,017 4,882 1,777 Termination benefits 1,886 1,147 2,284 Other remuneration 9 7 23 Total 10,073 12,044 10,531 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial risk management | |
Schedule of interest bearing financial liabilities | At December 31, the Company’s interest-bearing financial liabilities were as follows: 2020 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 107,607 107,607 Obligations under finance leases — 22,537 22,537 Debt instruments 357,508 — 357,508 Other financial liabilities (*) 63,896 — 63,896 421,404 130,144 551,548 (*) Note 19). 2019 Fixed rate Floating rate Total US$'000 US$'000 US$'000 Bank borrowings — 158,999 158,999 Obligations under finance leases — 25,872 25,872 Debt instruments 354,951 — 354,951 Other financial liabilities (*) 56,939 — 56,939 411,890 184,871 596,761 (*) Note 19). |
Schedule of undiscounted cash flow maturities | 2020 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$'000 Bank borrowings 108,613 5,277 — — 113,890 Leases 8,796 6,350 7,130 1,748 24,024 Debt instruments 32,813 366,406 — — 399,219 Financial loans from government agencies 36,672 7,209 18,274 6,501 68,656 Derivative financial instruments — — — — — Payables to related parties 3,196 — — — 3,196 Payable to non-current asset suppliers 130 2,633 — — 2,763 Contingent consideration 1,772 4,175 15,892 3,277 25,116 Trade and other payables 149,201 — — — 149,201 341,193 392,050 41,296 11,526 786,065 2019 Less than 1 year Between 1-2 years Between 2-5 years After 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 23,743 163,154 — — 186,897 Finance leases 10,161 7,356 10,213 911 28,641 Debt instruments 32,813 32,813 366,406 — 432,032 Financial loans from government agencies 27,311 10,527 15,992 9,513 63,343 Derivative financial instruments 2,049 2,049 (4,911) — (813) Payables to related parties 4,830 — — — 4,830 Payable to non-current asset suppliers 7,283 182 — — 7,465 Contingent consideration 1,626 5,006 18,170 8,916 33,718 Trade and other payables 189,229 — — — 189,229 299,045 221,087 405,870 19,340 945,342 |
Schedule of gross inflows and outflows by instrument maturity | 2019 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$'000 Inflows 18,047 18,047 201,523 — 237,617 Outflows (15,998) (15,998) (206,434) — (238,430) Net cash flow 2,049 2,049 (4,911) — (813) Discounted at the applicable interbank rates 1,859 1,437 (12,896) — (9,600) |
Schedule of changes in liabilities arising from financing activities | January 1, Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Change in scope of consolidation Other changes December 31, 2020 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 158,998 (67,343) 10,295 — — 5,657 107,607 Obligations under finance leases 25,873 (10,315) 1,608 — — 5,370 22,536 Debt instruments 354,952 (32,812) — — 35,368 357,508 Financial loans from government agencies (Note 19) 56,939 — 4,865 — — 2,092 63,896 Derivative financial instruments (Note 19) 9,600 3,608 (86) (14,329) — 1,207 — Total liabilities from financing activities 606,362 (106,862) 16,682 (14,329) — 49,694 551,547 Dividends paid — Proceeds from stock option exercises — Other amounts paid due to financing activities (6,471) Payments to acquire or redeem own shares — Net cash (used) by financing activities (113,333) January 1, Changes from financing cash flows Effect of changes in foreign exchange rates Changes in fair values Change in scope of consolidation Other changes December 31, 2019 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Bank borrowings 141,012 (107,718) (1,485) — 112,226 14,963 158,998 Obligations under finance leases 66,471 (55,352) (1,895) — — 16,649 25,873 Debt instruments 352,594 (34,304) — — — 36,662 354,952 Financial loans from government agencies (Note 19) 61,849 — (1,147) — — (3,763) 56,939 Derivative financial instruments (Note 19) 23,463 — (532) (12,770) — (561) 9,600 Total liabilities from financing activities 645,389 (197,374) (5,059) (12,770) 112,226 63,950 606,362 Dividends paid — Proceeds from stock option exercises — Other amounts paid due to financing activities (26,631) Payments to acquire or redeem own shares — Net cash provided by financing activities (224,005) |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of financial liabilities [abstract] | |
Schedule of assets and liabilities measured at fair value | December 31, 2020 Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) US$'000 US$'000 US$'000 US$'000 Other financial assets (Note 10): Listed equity securities 2,609 2,609 — — Other liabilities (Note 21) Contingent consideration in a business combinations (16,632) — — (16,632) December 31, 2019 Quoted prices in active markets Significant observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) US$'000 US$'000 US$'000 US$'000 Other financial assets (Note 10): Listed equity securities 5,544 5,544 — — Other financial liabilities (Note 19): Derivative financial instruments - cross currency swap (9,600) — (9,600) — Derivative financial instruments - interest rate swaps — — — — Other liabilities (Note 21) Contingent consideration in a business combinations (21,965) — — (21,965) |
Schedule of changes fair value of biological assets classified at level 3 in the hierarchy | Level 3 US$'000 January 1, 2019 7,790 Loss recognised in profit or loss (Note 25.5) (530) Disposal of biological assets (7,365) Translation differences 105 December 31, 2019 — Loss recognised in profit or loss (Note 25.5) — Disposal of biological assets — Translation differences — December 31, 2020 — |
Non-current assets held for s_2
Non-current assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Non-current assets held for sale | |
Schedule of profit and loss statement from discontinued operations | 2020 2019 2018 US$'000 US$'000 US$'000 Sales — 13,164 32,035 Cost of sales — (271) (677) Other operating income — 365 193 Staff costs — (1,450) (2,201) Other operating expense — (1,995) (6,370) Depreciation and amortization charges, operating allowances and write-downs — (2,830) (5,300) Impairment losses — — — Operating Profit (loss) — 6,983 17,680 Net finance expense — (6,433) (4,440) (LOSS) PROFIT BEFORE TAXES FROM DISCONTINUED OPERATIONS — 550 13,240 Income tax expense — (1,015) (3,776) Gain on sale of discontinued operation (5,399) 85,102 — (LOSS) PROFIT AFTER TAXES FROM DISCONTINUED OPERATIONS (5,399) 84,637 9,464 |
Schedule of earnings per share from discontinued operations | 2020 2019 2018 Basic earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to Discontinued Operations (US$'000) (5,399) 84,637 9,464 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Basic earnings (loss) per ordinary share (US$) (0.03) 0.50 0.05 Diluted earnings (loss) per ordinary share computation Numerator: Profit (loss) attributable to Discontinued Operations (US$'000) (5,399) 84,637 9,464 Denominator: Weighted average basic shares outstanding 169,269,281 169,152,905 171,406,272 Effect of dilutive securities — — 123,340 Weighted average dilutive shares outstanding 169,269,281 169,152,905 171,529,612 Diluted earnings (loss) per ordinary share (US$) (0.03) 0.50 0.05 |
Schedule of cash flows from discontinued operations | 2020 2019 US$'000 US$'000 Cash flows from operating activities: Profit for the period (5,399) 84,637 Adjustments to reconcile net (loss) profit to net cash provided by operating activities: Income tax expense (benefit) — 1,015 Depreciation and amortization charges, operating allowances and write-downs — 2,830 Net Finance expense — 6,433 Gains on disposals of non-current and financial assets 5,399 (85,102) Changes in working capital Decrease / (increase) in accounts receivable — (10,341) Decrease / (increase) in inventories — 2 Increase / (Decrease) in accounts payable — 89 Other changes in operating assets and liabilities Other, net (24) 69,243 Income tax paid — — Interest paid — (2,307) Total cash flow from operating activities (24) 66,499 Cash flows from investing activities: Payments due to investments: Property, plant and equipment — (126) Disposals: Disposal of business, net of cash — — Total cash flow from investing activities — (126) Cash flows from financing activities: Other financing activities — (66,457) Total cash flow from financing activities — (66,457) INCREASE / (DECREASE) IN CASH (24) (84) CASH AT BEGINNING OF PERIOD 24 108 CASH AT END OF PERIOD — 24 |
Organization and Subsidiaries -
Organization and Subsidiaries - Percentage of ownership (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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% |
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% |
Laurel Ford Resources, 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 del Cinca, S.L. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 99.90% |
Ferroatlántica de Sabón, S.L.U. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlántica de Boo, S.L.U. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
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% |
FerroPem, S.A.S. | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferrous Receivables DAC | 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 | 100.00% |
Proportion of ownership interest in subsidiary | 100.00% |
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 | 100.00% |
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% |
Cuarzos Industriales de Venezuela (Cuarzoven), S.A. | 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. | Electrometallurgy - North America | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica de Mexico, S.A. de C.V. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlántica de Venezuela (FerroVen), S.A. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 99.90% |
Ferroatlantica Deutschland, GmbH | 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 I+D, S.L.U. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferroatlantica Participaciones, S.L.U. | Electrometallurgy - Europe | |
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 | 100.00% |
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 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% |
Ferrosolar OPCO Group SL. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ferrosolar R&D SL. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 50.00% |
FerroTambao, SARL | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 90.00% |
GBG Financial 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% |
Globe Argentina Holdco, LLC | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Globe BG, LLC | Electrometallurgy - North America | |
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 Specialty Metals, Inc. | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary - Direct | 100.00% |
Proportion of ownership interest in subsidiary | 100.00% |
Grupo FerroAtlántica de Servicios, S.A.U | Electrometallurgy - Europe | |
Disclosure of subsidiaries [line items] | |
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% |
Hidroelectricité de Saint Beron, S.A.S | Other segments | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Mangshi FerroAtlantica Mining Industry Service Company Ltd | 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% |
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% |
Ultracore Energy SA | 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 - Basis of Presentation (Details) € in Thousands, $ in Thousands | Apr. 30, 2021 | Apr. 21, 2021 | Mar. 27, 2021USD ($) | Feb. 15, 2017USD ($) | Oct. 13, 2015EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | ||
Financial risk management | ||||||||||||
Cash, restricted cash and cash equivalents | $ 131,557 | $ 123,175 | [1] | $ 216,647 | [1] | $ 184,472 | ||||||
Current restricted cash and cash equivalents | 28,843 | |||||||||||
Profit (loss) from operating activities | (184,350) | (355,586) | 99,074 | [2] | ||||||||
Profit (loss) | $ (249,758) | (285,640) | [1] | 24,573 | [1],[2] | |||||||
Issue of equity | € 50,000 | $ 240 | ||||||||||
Grupo Villar Mir, S.A.U. | ||||||||||||
Financial risk management | ||||||||||||
Percentage of ownership interest held by related party | 53.90% | 54.00% | ||||||||||
Senior Notes due 2022 | ||||||||||||
Financial risk management | ||||||||||||
Principal amount | $ 350,000 | $ 350,000 | $ 350,000 | |||||||||
Redemption price of notes at change of control | 101.00% | 101.00% | ||||||||||
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% | |||||||||||
Agreement in Principle on the Terms of Financing Proposal | ||||||||||||
Financial risk management | ||||||||||||
Issue of equity | $ 40,000 | |||||||||||
Percentage of noteholders entered into lock up agreement | 96.00% | 95.92% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Senior Notes due 2022 | ||||||||||||
Financial risk management | ||||||||||||
Minimum percentage of note holders | 60.00% | |||||||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | ||||||||||||
Financial risk management | ||||||||||||
Principal amount | 60,000 | |||||||||||
Agreement in Principle on the Terms of Financing Proposal | Minimum | ||||||||||||
Financial risk management | ||||||||||||
Issue of equity | $ 40,000 | |||||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. | |||||||||||
[2] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Accounting policies (Details)
Accounting policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Capitalised development expenditure | Minimum | |
Useful lives | |
Useful life | 4 years |
Capitalised development expenditure | Maximum | |
Useful lives | |
Useful life | 10 years |
Rights of use | Minimum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 10 years |
Rights of use | Maximum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 20 years |
Computer software | Minimum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 2 years |
Computer software | Maximum | |
Disclosure of intangible assets material to entity [abstract] | |
Amortisation period of intangible assets | 5 years |
Properties for own use | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 25 years |
Properties for own use | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 50 years |
Plant and machinery | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 8 years |
Plant and machinery | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 20 years |
Tools | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 12 years 6 months |
Tools | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 15 years |
Furniture and fixtures | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 10 years |
Furniture and fixtures | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 15 years |
Computer hardware | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 4 years |
Computer hardware | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 8 years |
Transport equipment | Minimum | |
Useful lives | |
Years of Estimated Useful Life | 10 years |
Transport equipment | Maximum | |
Useful lives | |
Years of Estimated Useful Life | 15 years |
Business Combinations - Total a
Business Combinations - Total acquisition consideration (Details) | 1 Months Ended | |
Feb. 28, 2018 | Feb. 01, 2018 | |
Kintuk | ||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Satisfied by: | ||||||
Gain on bargain purchase | [1],[2] | $ 40,142 | ||||
Kintuk | ||||||
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 assets acquired | 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 | $ 16,632 | $ 21,965 | |||
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 | |||||
Gain loss relating to acquired receivables | $ 0 | |||||
Period of contingent consideration applied to sales | 8 years 6 months | |||||
Kintuk | Minimum | ||||||
Satisfied by: | ||||||
Contingent consideration | $ 0 | |||||
Kintuk | Maximum | ||||||
Satisfied by: | ||||||
Contingent consideration | $ 60,000 | |||||
Ferroglobe Mangan Norge | ||||||
Satisfied by: | ||||||
Discount rates (as a percent) | 11.50% | 12.50% | 11.50% | |||
Revenue of acquiree | $ 112,445 | |||||
Loss of acquiree | 10,148 | |||||
Ferroglobe Manganese France | ||||||
Satisfied by: | ||||||
Discount rates (as a percent) | 11.00% | 11.50% | 11.00% | |||
Revenue of acquiree | 117,852 | |||||
Loss of acquiree | $ 10,436 | |||||
Ferroglobe Mangan Norge and Ferroglobe Manganese France | ||||||
Satisfied by: | ||||||
Revenue of combined entity | 2,289,931 | |||||
Profit of combined entity | $ 45,007 | |||||
Ferroglobe Mangan Norge and Ferroglobe Manganese France | Minimum | ||||||
Satisfied by: | ||||||
Average simulated revenues | $ 135,868 | $ 157,276 | ||||
Ferroglobe Mangan Norge and Ferroglobe Manganese France | Maximum | ||||||
Satisfied by: | ||||||
Average simulated revenues | $ 262,441 | $ 317,507 | ||||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). | |||||
[2] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Segment reporting - Consolidate
Segment reporting - Consolidated income statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Profit (loss) [abstract] | ||||||
Sales | $ 1,144,434 | $ 1,615,222 | $ 2,242,002 | [1] | ||
Cost of sales | (835,486) | (1,214,397) | (1,446,677) | [1] | ||
Other operating income | 33,627 | 54,213 | 45,844 | [1] | ||
Staff costs | (214,782) | (285,029) | (338,862) | [1] | ||
Other operating expense | (132,059) | (225,705) | (277,560) | [1] | ||
Depreciation and amortization charges, operating allowances and write-downs | (108,189) | (120,194) | (113,837) | [1] | ||
Impairment losses | (73,344) | (175,899) | (58,919) | [1] | ||
Net (loss) gain due to changes in the value of assets | 158 | (1,574) | (7,623) | [1] | ||
(Loss) gain on disposal of non-current assets | 1,292 | (2,223) | 14,564 | [1] | ||
Bargain purchase gain | [1],[2] | 40,142 | ||||
Other (loss) gain | (1) | |||||
Operating (loss) profit | (184,350) | (355,586) | 99,074 | [1] | ||
Finance income | 177 | 1,380 | 4,858 | [1] | ||
Finance costs | (66,968) | (63,225) | (57,066) | [1] | ||
Financial derivative gain (loss) | 3,168 | 2,729 | 2,838 | [1] | ||
Exchange differences | 25,553 | 2,884 | (14,136) | [1] | ||
(Loss) profit before tax | (222,420) | (411,818) | 35,568 | [1] | ||
Income tax benefit (expense) | (21,939) | 41,541 | (20,459) | [1] | ||
(Loss) profit from continuing operations | (244,359) | (370,277) | 15,109 | [1] | ||
(Loss) profit from discontinued operations | (5,399) | 84,637 | 9,464 | [1] | ||
(Loss) profit for the year | (249,758) | (285,640) | [2] | 24,573 | [1],[2] | |
Loss (profit) attributable to non-controlling interests | 3,419 | 5,039 | 19,088 | [1] | ||
(Loss) profit attributable to the Parent | (246,339) | (280,601) | 43,661 | [1] | ||
Adjustments/Eliminations | ||||||
Profit (loss) [abstract] | ||||||
Sales | (48,373) | (165,293) | (187,305) | |||
Cost of sales | 47,723 | 165,714 | 187,212 | |||
Other operating income | (18,719) | (24,613) | (19,002) | |||
Other operating expense | 19,369 | 24,192 | 19,095 | |||
Finance income | (17,320) | (23,008) | (39,220) | |||
Finance costs | 17,320 | 23,008 | 39,220 | |||
Electrometallurgy - North America | Operating segments | ||||||
Profit (loss) [abstract] | ||||||
Sales | 425,277 | 551,500 | 710,716 | |||
Cost of sales | (280,858) | (366,711) | (394,044) | |||
Other operating income | 2,916 | 10,418 | 4,943 | |||
Staff costs | (73,988) | (87,954) | (115,555) | |||
Other operating expense | (34,315) | (60,105) | (77,670) | |||
Depreciation and amortization charges, operating allowances and write-downs | (61,664) | (72,251) | (69,009) | |||
Impairment losses | (35,685) | (174,013) | ||||
(Loss) gain on disposal of non-current assets | (869) | (1,601) | (208) | |||
Operating (loss) profit | (59,186) | (200,717) | 59,173 | |||
Finance income | 679 | 529 | 804 | |||
Finance costs | (857) | (3,914) | (4,109) | |||
Exchange differences | (485) | (407) | (1,194) | |||
(Loss) profit before tax | (59,849) | (204,509) | 54,674 | |||
Income tax benefit (expense) | 14,213 | 8,520 | 4,949 | |||
(Loss) profit from continuing operations | (45,636) | (195,989) | 59,623 | |||
(Loss) profit for the year | (45,636) | (195,989) | 59,623 | |||
Loss (profit) attributable to non-controlling interests | 3,033 | 5,123 | 4,785 | |||
(Loss) profit attributable to the Parent | (42,603) | (190,866) | 64,408 | |||
Electrometallurgy - Europe | Operating segments | ||||||
Profit (loss) [abstract] | ||||||
Sales | 661,624 | 1,049,576 | 1,447,973 | |||
Cost of sales | (526,771) | (868,654) | (1,059,474) | |||
Other operating income | 35,575 | 47,672 | 39,817 | |||
Staff costs | (121,103) | (145,712) | (177,047) | |||
Other operating expense | (81,590) | (142,929) | (146,143) | |||
Depreciation and amortization charges, operating allowances and write-downs | (38,616) | (39,844) | (34,974) | |||
Impairment losses | (17,941) | (465) | ||||
Net (loss) gain due to changes in the value of assets | (7) | |||||
(Loss) gain on disposal of non-current assets | 2,156 | 180 | (8,369) | |||
Bargain purchase gain | 40,142 | |||||
Other (loss) gain | 4 | |||||
Operating (loss) profit | (86,662) | (100,176) | 101,918 | |||
Finance income | 4,262 | 9,220 | 11,035 | |||
Finance costs | (30,637) | (22,547) | (40,831) | |||
Exchange differences | (507) | 3,139 | (10,561) | |||
(Loss) profit before tax | (113,544) | (110,364) | 61,561 | |||
Income tax benefit (expense) | (34,618) | 22,470 | (15,048) | |||
(Loss) profit from continuing operations | (148,162) | (87,894) | 46,513 | |||
(Loss) profit from discontinued operations | (5,399) | 3,280 | ||||
(Loss) profit for the year | (153,561) | (84,614) | 46,513 | |||
Loss (profit) attributable to non-controlling interests | 5 | (332) | ||||
(Loss) profit attributable to the Parent | (153,556) | (84,614) | 46,181 | |||
Electrometallurgy - South Africa | Operating segments | ||||||
Profit (loss) [abstract] | ||||||
Sales | 80,572 | 136,292 | 208,543 | |||
Cost of sales | (56,062) | (108,823) | (137,177) | |||
Other operating income | 131 | 1,323 | 3,420 | |||
Staff costs | (11,013) | (20,333) | (23,735) | |||
Other operating expense | (14,098) | (19,457) | (26,353) | |||
Depreciation and amortization charges, operating allowances and write-downs | (7,141) | (6,459) | (5,526) | |||
Impairment losses | (8,677) | |||||
Net (loss) gain due to changes in the value of assets | (530) | (7,616) | ||||
(Loss) gain on disposal of non-current assets | (261) | |||||
Operating (loss) profit | (16,288) | (17,987) | 11,295 | |||
Finance income | 90 | 156 | 199 | |||
Finance costs | (3,796) | (4,507) | (5,298) | |||
Exchange differences | (1,405) | (1,179) | 2,284 | |||
(Loss) profit before tax | (21,399) | (23,517) | 8,480 | |||
Income tax benefit (expense) | (1,049) | 7,761 | (3,582) | |||
(Loss) profit from continuing operations | (22,448) | (15,756) | 4,898 | |||
(Loss) profit for the year | (22,448) | (15,756) | 4,898 | |||
Loss (profit) attributable to non-controlling interests | 242 | (368) | 358 | |||
(Loss) profit attributable to the Parent | (22,206) | (16,124) | 5,256 | |||
Other segments | Operating segments | ||||||
Profit (loss) [abstract] | ||||||
Sales | 25,334 | 43,147 | 62,075 | |||
Cost of sales | (19,518) | (35,923) | (43,194) | |||
Other operating income | 13,724 | 19,413 | 16,666 | |||
Staff costs | (8,678) | (31,030) | (22,525) | |||
Other operating expense | (21,425) | (27,406) | (46,489) | |||
Depreciation and amortization charges, operating allowances and write-downs | (768) | (1,640) | (4,328) | |||
Impairment losses | (11,041) | (1,421) | (58,919) | |||
Net (loss) gain due to changes in the value of assets | 158 | (1,044) | ||||
(Loss) gain on disposal of non-current assets | 5 | (802) | 23,402 | |||
Other (loss) gain | (5) | |||||
Operating (loss) profit | (22,214) | (36,706) | (73,312) | |||
Finance income | 12,466 | 14,483 | 32,040 | |||
Finance costs | (48,998) | (55,265) | (46,048) | |||
Financial derivative gain (loss) | 3,168 | 2,729 | 2,838 | |||
Exchange differences | 27,950 | 1,331 | (4,665) | |||
(Loss) profit before tax | (27,628) | (73,428) | (89,147) | |||
Income tax benefit (expense) | (485) | 2,790 | (6,778) | |||
(Loss) profit from continuing operations | (28,113) | (70,638) | (95,925) | |||
(Loss) profit from discontinued operations | 81,357 | 9,464 | ||||
(Loss) profit for the year | (28,113) | 10,719 | (86,461) | |||
Loss (profit) attributable to non-controlling interests | 139 | 284 | 14,277 | |||
(Loss) profit attributable to the Parent | $ (27,974) | $ 11,003 | $ (72,184) | |||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). | |||||
[2] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Segment reporting - Consolida_2
Segment reporting - Consolidated statements of financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Assets [abstract] | |||||||
Goodwill | $ 29,702 | $ 29,702 | $ 202,848 | ||||
Other intangible assets | 20,756 | 51,267 | 51,822 | ||||
Property, plant and equipment | 620,034 | 740,906 | 888,862 | ||||
Inventories | 246,549 | 354,121 | |||||
Trade and other receivables | 247,792 | 314,266 | |||||
Cash, restricted cash and cash equivalents | 131,557 | 123,175 | [1] | 216,647 | [1] | $ 184,472 | [1] |
Other | 50,755 | 120,916 | |||||
Total assets | 1,347,145 | 1,734,353 | |||||
Equity and liabilities [abstract] | |||||||
Equity | 365,719 | 602,297 | 884,372 | $ 937,758 | |||
Provisions | 163,783 | 130,943 | $ 116,357 | ||||
Bank borrowings | 107,607 | 158,999 | |||||
Obligations under finance leases | 22,536 | 25,872 | |||||
Debt instruments | 357,508 | 354,951 | |||||
Other financial liabilities | 63,896 | 66,539 | |||||
Trade and other payables | 152,397 | 194,059 | |||||
Other | 113,699 | 200,693 | |||||
Total equity and liabilities | 1,347,145 | 1,734,353 | |||||
Adjustments/Eliminations | |||||||
Assets [abstract] | |||||||
Trade and other receivables | (1,812,969) | (1,430,186) | |||||
Total assets | (1,812,969) | (1,430,186) | |||||
Equity and liabilities [abstract] | |||||||
Trade and other payables | (1,854,661) | (1,465,859) | |||||
Other | 41,692 | 35,673 | |||||
Total equity and liabilities | (1,812,969) | (1,430,186) | |||||
Electrometallurgy - North America | Operating segments | |||||||
Assets [abstract] | |||||||
Goodwill | 29,702 | 29,702 | |||||
Other intangible assets | 14,604 | 18,504 | |||||
Property, plant and equipment | 353,145 | 419,695 | |||||
Inventories | 63,765 | 91,619 | |||||
Trade and other receivables | 609,456 | 427,871 | |||||
Cash, restricted cash and cash equivalents | 48,127 | 25,194 | |||||
Other | (37,007) | 11,932 | |||||
Total assets | 1,081,792 | 1,024,517 | |||||
Equity and liabilities [abstract] | |||||||
Equity | 412,729 | 459,637 | |||||
Provisions | 33,812 | 31,220 | |||||
Obligations under finance leases | 4,260 | 6,473 | |||||
Other financial liabilities | 3,140 | ||||||
Trade and other payables | 615,690 | 464,592 | |||||
Other | 12,161 | 62,595 | |||||
Total equity and liabilities | 1,081,792 | 1,024,517 | |||||
Electrometallurgy - Europe | Operating segments | |||||||
Assets [abstract] | |||||||
Other intangible assets | 3,631 | 30,248 | |||||
Property, plant and equipment | 191,211 | 216,809 | |||||
Inventories | 152,680 | 215,509 | |||||
Trade and other receivables | 477,440 | 504,294 | |||||
Cash, restricted cash and cash equivalents | 48,661 | 65,216 | |||||
Other | 32,413 | 60,619 | |||||
Total assets | 906,036 | 1,092,695 | |||||
Equity and liabilities [abstract] | |||||||
Equity | 174,247 | 307,131 | |||||
Provisions | 120,413 | 85,167 | |||||
Bank borrowings | 80,121 | 100,070 | |||||
Obligations under finance leases | 17,403 | 18,128 | |||||
Other financial liabilities | 331 | 454 | |||||
Trade and other payables | 478,931 | 520,937 | |||||
Other | 34,590 | 60,808 | |||||
Total equity and liabilities | 906,036 | 1,092,695 | |||||
Electrometallurgy - South Africa | Operating segments | |||||||
Assets [abstract] | |||||||
Other intangible assets | 1,265 | 1,322 | |||||
Property, plant and equipment | 37,526 | 53,650 | |||||
Inventories | 20,375 | 32,886 | |||||
Trade and other receivables | 43,121 | 47,755 | |||||
Cash, restricted cash and cash equivalents | 2,777 | 3,321 | |||||
Other | 9,808 | 14,921 | |||||
Total assets | 114,872 | 153,855 | |||||
Equity and liabilities [abstract] | |||||||
Equity | 17,856 | 43,466 | |||||
Provisions | 5,956 | 7,108 | |||||
Obligations under finance leases | 318 | 14 | |||||
Trade and other payables | 78,807 | 86,837 | |||||
Other | 11,935 | 16,430 | |||||
Total equity and liabilities | 114,872 | 153,855 | |||||
Other segments | Operating segments | |||||||
Assets [abstract] | |||||||
Other intangible assets | 1,256 | 1,193 | |||||
Property, plant and equipment | 38,152 | 50,752 | |||||
Inventories | 9,729 | 14,107 | |||||
Trade and other receivables | 930,744 | 764,532 | |||||
Cash, restricted cash and cash equivalents | 31,992 | 29,444 | |||||
Other | 45,541 | 33,444 | |||||
Total assets | 1,057,414 | 893,472 | |||||
Equity and liabilities [abstract] | |||||||
Equity | (239,113) | (207,937) | |||||
Provisions | 3,602 | 7,448 | |||||
Bank borrowings | 27,486 | 58,929 | |||||
Obligations under finance leases | 555 | 1,257 | |||||
Debt instruments | 357,508 | 354,951 | |||||
Other financial liabilities | 60,425 | 66,085 | |||||
Trade and other payables | 833,630 | 587,552 | |||||
Other | 13,321 | 25,187 | |||||
Total equity and liabilities | $ 1,057,414 | $ 893,472 | |||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Segment reporting - Sales by pr
Segment reporting - Sales by product line (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of products and services [abstract] | ||||
Sales | $ 1,144,434 | $ 1,615,222 | $ 2,242,002 | [1] |
Silicon Metal Product Line [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | 463,217 | 539,872 | 933,366 | |
Manganese Alloys Product Line [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | 267,469 | 447,311 | 527,757 | |
Ferrosilicon Product Line [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | 176,447 | 275,368 | 359,374 | |
Other Silicon Based Alloys Product Line [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | 126,817 | 181,736 | 215,697 | |
Silica Fume Product Line [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | 25,888 | 33,540 | 37,061 | |
Energy Product Line [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | 12,149 | |||
Other Product Lines [Member] | ||||
Disclosure of products and services [abstract] | ||||
Sales | $ 84,596 | $ 137,395 | $ 156,598 | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Segment reporting - Major custo
Segment reporting - Major customers (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($)customer | ||
Disclosure of major customers [abstract] | ||||
Sales | $ 1,144,434,000 | $ 1,615,222,000 | $ 2,242,002,000 | [1] |
Number of customers representing 10% or more of sales | 0 | 0 | ||
Top Ten Customers | ||||
Disclosure of major customers [abstract] | ||||
Sales | $ 580,570,000 | $ 643,689,000 | $ 758,894,000 | |
Number of major customers | customer | 10 | 10 | 10 | |
Dow Corning Corporation | ||||
Disclosure of major customers [abstract] | ||||
Percentage of Company's sales | 13.20% | |||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Goodwill - Changes in carrying
Goodwill - Changes in carrying amount and impairment testing (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 23, 2015 | |
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at beginning of period | $ 29,702 | $ 202,848 | |
Impairment | (174,008) | ||
Exchange differences | 862 | ||
Goodwill at end of period | 29,702 | 29,702 | |
Globe Specialty Metals Inc | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at beginning of period | 29,702 | 202,848 | |
Impairment | (174,008) | (174,008) | |
Exchange differences | 862 | ||
Goodwill at end of period | 29,702 | $ 29,702 | |
Percentage of equity interests acquired | 100.00% | ||
Electrometallurgy United States Segment | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | 29,700 | ||
Electrometallurgy United States Segment | Globe Specialty Metals Inc | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | 29,702 | ||
Electrometallurgy Canada Segment | Globe Specialty Metals Inc | |||
Reconciliation of changes in goodwill [abstract] | |||
Goodwill at end of period | $ 0 |
Goodwill - Key assumptions used
Goodwill - Key assumptions used in the determination of recoverable value (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Electrometallurgy United States Segment | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Long-Term Growth Rate | 0.020 | 0.020 |
Normalized Tax Rate | 0.210 | 0.210 |
Electrometallurgy United States Segment | Weighted average cost of capital | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.103 | 0.111 |
Electrometallurgy Canada Segment | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Long-Term Growth Rate | 0.020 | |
Normalized Tax Rate | 0.266 | |
Electrometallurgy Canada Segment | Weighted average cost of capital | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.115 |
Goodwill - Sensitivity to chang
Goodwill - Sensitivity to changes in assumptions (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | |||
Goodwill | $ 29,702 | $ 29,702 | $ 202,848 |
Excess of recoverable value over carrying value | 96,032 | ||
Electrometallurgy United States Segment | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [abstract] | |||
Goodwill | 29,700 | ||
Excess of recoverable value over carrying value | 96,000 | ||
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 | 59,400 | ||
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 | (46,500) | ||
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 | (6,800) | ||
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 | 7,100 | ||
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 | (86,600) | ||
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 | $ 86,600 |
Other intangible assets (Detail
Other intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | $ 51,267 | $ 51,822 |
Additions | 35,640 | 16,196 |
Disposals | (68,713) | (6,097) |
Exchange differences | 2,562 | (217) |
Business disposal | (10,437) | |
Other intangible assets at end of the year | 20,756 | 51,267 |
Intangible assets pledged as security | 0 | 0 |
Accumulated depreciation and amortisation | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | (82,283) | (79,517) |
Additions | (7,183) | (7,305) |
Disposals | 3,845 | |
Exchange differences | (3,576) | 694 |
Other intangible assets at end of the year | (93,042) | (82,283) |
Accumulated impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | (18,964) | (25,613) |
Additions | (211) | |
Disposals | 5,281 | |
Exchange differences | (1,118) | 468 |
Business disposal | 1,111 | |
Other intangible assets at end of the year | (20,082) | (18,964) |
Capitalised development expenditure | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | 50,326 | 50,985 |
Additions | 262 | 870 |
Disposals | (553) | |
Exchange differences | 4,286 | (976) |
Other intangible assets at end of the year | 54,874 | 50,326 |
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 |
Rights of use | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Disposals | (34,209) | |
Rights of use | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | 16,533 | 22,391 |
Disposals | (5,595) | |
Exchange differences | 516 | (263) |
Other intangible assets at end of the year | 17,049 | 16,533 |
Computer software | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | 5,149 | 5,927 |
Disposals | (780) | |
Exchange differences | 100 | 2 |
Other intangible assets at end of the year | 5,249 | 5,149 |
Other intangible assets | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Net reduction to other intangible assets | 32,517 | |
Other intangible assets | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Other intangible assets at beginning of the year | 42,670 | 39,813 |
Additions | 42,561 | 22,842 |
Disposals | (68,713) | (8,295) |
Exchange differences | 2,354 | (142) |
Business disposal | (11,548) | |
Other intangible assets at end of the year | $ 18,872 | $ 42,670 |
Property, plant and equipment -
Property, plant and equipment - Detail net of accumulated depreciation and impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | $ 740,906 | $ 888,862 |
IFRS 16 Adjustments at 1 January 2019 | 20,769 | |
Additions | (128,279) | 64,925 |
Disposals and other | (3,430) | (7,619) |
Transfers from/(to) other accounts | (6,937) | |
Exchange differences | 17,774 | (1,780) |
Business disposals | (94,401) | |
Property, plant and equipment at end of the year | 620,034 | 740,906 |
Gross carrying amount | Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 196,586 | 235,309 |
Additions | 1,391 | (74) |
Disposals and other | (780) | (13,160) |
Transfers from/(to) other accounts | 904 | 408 |
Exchange differences | 9,924 | (2,822) |
Business disposals | (23,223) | |
Property, plant and equipment at end of the year | 208,025 | 196,586 |
Gross carrying amount | Plant and Machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 1,273,837 | 1,487,047 |
Additions | 11,095 | (1,409) |
Disposals and other | (17,664) | (78,774) |
Transfers from/(to) other accounts | 15,830 | 38,445 |
Exchange differences | 48,487 | (8,908) |
Business disposals | (165,382) | |
Property, plant and equipment at end of the year | 1,331,585 | 1,273,837 |
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 | 8,819 | 11,945 |
Additions | 302 | (32) |
Disposals and other | (612) | (3,399) |
Transfers from/(to) other accounts | 220 | |
Exchange differences | (87) | 36 |
Business disposals | (15) | |
Property, plant and equipment at end of the year | 8,422 | 8,819 |
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 | 106,651 | 123,364 |
Additions | 27,059 | (34,039) |
Disposals and other | (1,715) | (7,426) |
Transfers from/(to) other accounts | (16,861) | (39,073) |
Exchange differences | 8,895 | (1,881) |
Business disposals | (2,372) | |
Property, plant and equipment at end of the year | 124,029 | 106,651 |
Gross carrying amount | Mineral Reserves | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 59,502 | 59,408 |
Exchange differences | (177) | 94 |
Property, plant and equipment at end of the year | 59,325 | 59,502 |
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 | 34,463 | 36,341 |
Additions | 30 | |
Disposals and other | (2,195) | |
Exchange differences | (1,305) | 317 |
Property, plant and equipment at end of the year | 33,188 | 34,463 |
Gross carrying amount | Leased Land and Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 13,298 | |
IFRS 16 Adjustments at 1 January 2019 | 12,417 | |
Additions | 3,374 | (777) |
Exchange differences | 916 | 104 |
Property, plant and equipment at end of the year | 17,588 | 13,298 |
Gross carrying amount | Leased Plant and Machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | 21,333 | |
IFRS 16 Adjustments at 1 January 2019 | 18,055 | |
Additions | 1,405 | (3,089) |
Transfers from/(to) other accounts | 127 | |
Exchange differences | 1,581 | 189 |
Property, plant and equipment at end of the year | 24,446 | 21,333 |
Accumulated depreciation and amortisation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | (865,937) | (907,355) |
IFRS 16 Adjustments at 1 January 2019 | (9,703) | |
Additions | (101,006) | 103,121 |
Disposals and other | 17,337 | 48,560 |
Exchange differences | (45,901) | 9,091 |
Business disposals | 96,591 | |
Property, plant and equipment at end of the year | (995,507) | (865,937) |
Accumulated impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of the year | (107,646) | (157,197) |
Additions | (71,929) | 1,224 |
Disposals and other | 4 | 48,775 |
Transfers from/(to) other accounts | (6,937) | |
Exchange differences | (4,559) | 2,000 |
Property, plant and equipment at end of the year | $ (191,066) | $ (107,646) |
Property, plant and equipment_2
Property, plant and equipment - Impairment, disposals and pledged as security (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Business disposals | $ 94,401 | ||
Impairment charge related to property, plant and equipment | $ 71,929 | ||
Property, plant and equipment pledged as security for outstanding bank loans and other payables | 0 | ||
Property, plant and equipment | 620,034 | 740,906 | $ 888,862 |
Transfers from/(to) other accounts | (6,937) | ||
Ganzi Ferroatlantica Silicon Industry Company, Ltd and MangShi Sinice Silicon Industry Company Limited | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Net reduction of property, plant and equipment | 48,775 | ||
Ferroatlantica S.A.U. and Ultracore Polska Zoo | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Business disposals | 94,401 | ||
Niagara Falls | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to property, plant and equipment | 34,270 | ||
South Africa | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to property, plant and equipment | 8,677 | ||
Spain | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to property, plant and equipment | 11,041 | ||
Chateau Feuillet Facility In Europe | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to property, plant and equipment | 17,941 | ||
Other segments | Spain | |||
Disclosure of impairment loss and reversal of impairment loss [abstract] | |||
Impairment charge related to property, plant and equipment | 11,041 | $ 40,537 | |
Property, plant and equipment | $ 33,537 | $ 40,590 |
Property, plant and equipment_3
Property, plant and equipment - Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of joint ventures [abstract] | ||
Capital expenditure commitments | $ 2,605 | $ 15,635 |
Financial assets and other re_3
Financial assets and other receivables - Financial assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of financial assets [line items] | |
Total financial assets | $ 349,232 |
Other financial assets | |
Disclosure of financial assets [line items] | |
Total financial assets | 6,065 |
Receivables from related parties | |
Disclosure of financial assets [line items] | |
Total financial assets | 5,530 |
Trade receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 202,233 |
Other receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 3,847 |
Cash and cash equivalents | |
Disclosure of financial assets [line items] | |
Total financial assets | 102,714 |
Restricted cash | |
Disclosure of financial assets [line items] | |
Total financial assets | 28,843 |
Amortised cost | |
Disclosure of financial assets [line items] | |
Total financial assets | 346,623 |
Amortised cost | Other financial assets | |
Disclosure of financial assets [line items] | |
Total financial assets | 3,456 |
Amortised cost | Receivables from related parties | |
Disclosure of financial assets [line items] | |
Total financial assets | 5,530 |
Amortised cost | Trade receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 202,233 |
Amortised cost | Other receivables | |
Disclosure of financial assets [line items] | |
Total financial assets | 3,847 |
Amortised cost | Cash and cash equivalents | |
Disclosure of financial assets [line items] | |
Total financial assets | 102,714 |
Amortised cost | Restricted cash | |
Disclosure of financial assets [line items] | |
Total financial assets | 28,843 |
Fair value through profit or loss - mandatorily measured | |
Disclosure of financial assets [line items] | |
Total financial assets | 2,609 |
Fair value through profit or loss - mandatorily measured | Other financial assets | |
Disclosure of financial assets [line items] | |
Total financial assets | $ 2,609 |
Financial assets and other re_4
Financial assets and other receivables - Cash and cash equivalents and Restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | $ 102,714 | $ 94,852 | |||||
Current - Non Current restricted cash presented as Cash | 28,843 | 28,323 | |||||
Total | 131,557 | 123,175 | [1] | $ 216,647 | $ 184,472 | ||
Escrow: Hydro sale | |||||||
Disclosure of financial assets [line items] | |||||||
Current - Non Current restricted cash presented as Cash | 6,136 | 5,617 | |||||
ABL | |||||||
Disclosure of financial assets [line items] | |||||||
Current - Non Current restricted cash presented as Cash | 22,500 | 22,500 | |||||
Others | |||||||
Disclosure of financial assets [line items] | |||||||
Current - Non Current restricted cash presented as Cash | $ 207 | $ 206 | |||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Financial assets and other re_5
Financial assets and other receivables - Other financial assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | $ 5,057 | $ 2,618 |
Other current financial assets held with third parties | 1,008 | 5,544 |
Other total financial assets held with third parties | 6,065 | 8,162 |
Amortised cost | Other financial assets | ||
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | 3,456 | 2,618 |
Other total financial assets held with third parties | 3,456 | 2,618 |
Amortised cost | Other financial assets | FerroPem SAS | ||
Disclosure of financial assets [line items] | ||
Deposits given to the French government | $ 2,679 | |
Period for return of deposits | 20 years | |
Fair value through other comprehensive income - designated | Equity securities | ||
Disclosure of financial assets [line items] | ||
Other non-current financial assets held with third parties | $ 1,601 | |
Other current financial assets held with third parties | 1,008 | 5,544 |
Other total financial assets held with third parties | $ 2,609 | $ 5,544 |
Financial assets and other re_6
Financial assets and other receivables - Securitization of trade receivables (Details) € in Thousands, $ in Thousands | Oct. 02, 2020USD ($) | Feb. 06, 2020USD ($) | Dec. 10, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 04, 2019USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 09, 2019USD ($) | ||
Securitization of trade receivables | ||||||||||||
Borrowings | $ 107,607 | $ 107,607 | $ 158,999 | |||||||||
Restricted cash and cash equivalents | 28,843 | 28,843 | 28,323 | |||||||||
Repaid | 235,296 | 329,501 | [1] | $ 106,514 | [1] | |||||||
Trade receivables securitization expense (Note 10) | $ 7,591 | 15,044 | 9,192 | 11,708 | ||||||||
Interest earned on SPE loans | 1,130 | |||||||||||
Fixed-rate servicing fees | 1,531 | |||||||||||
Additional servicing fees earned | 4,790 | |||||||||||
SPE held trade receivables | 203,930 | 203,930 | 237,022 | |||||||||
Ferrous Receivables DAC | ||||||||||||
Securitization of trade receivables | ||||||||||||
Cash | 0 | 0 | 38,778 | |||||||||
Cash held by SPE | 3,448 | |||||||||||
SPE held trade receivables | 53,100 | 90,100 | 0 | |||||||||
Securitizations | ||||||||||||
Securitization of trade receivables | ||||||||||||
Upfront cash consideration | $ 2,808 | |||||||||||
Senior loan commitments | $ 150,000 | |||||||||||
Repaid | € 95,695 | 107,657 | ||||||||||
Trade receivables sold under securitization program | $ 1,127,000 | |||||||||||
Loss on transferral of trade receivables | 12,210 | |||||||||||
ING | Securitizations | Ferrous Receivables DAC | ||||||||||||
Securitization of trade receivables | ||||||||||||
Upfront cash consideration | 227,360 | |||||||||||
Senior loan commitments | $ 75,000 | |||||||||||
New senior loans | Securitizations | Ferrous Receivables DAC | ||||||||||||
Securitization of trade receivables | ||||||||||||
Senior loan commitments | $ 150,000 | |||||||||||
Borrowings | 104,130 | |||||||||||
Term of the securitization program | 2 years | |||||||||||
Factoring of receivables | ||||||||||||
Securitization of trade receivables | ||||||||||||
Upfront cash consideration | 48,800 | 169,105 | ||||||||||
Borrowings | 74,844 | 74,844 | ||||||||||
Restricted cash release | $ 18,000 | |||||||||||
Repaid | 95,800 | |||||||||||
Maximum | ING | Securitizations | Ferrous Receivables DAC | ||||||||||||
Securitization of trade receivables | ||||||||||||
Upfront cash consideration | $ 303,000 | |||||||||||
ABL | ||||||||||||
Securitization of trade receivables | ||||||||||||
Restricted cash and cash equivalents | 22,500 | 22,500 | 22,500 | |||||||||
Escrow: Hydro sale | ||||||||||||
Securitization of trade receivables | ||||||||||||
Restricted cash and cash equivalents | $ 6,136 | $ 6,136 | $ 5,617 | |||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Financial assets and other re_7
Financial assets and other receivables - Trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other current receivables [abstract] | ||
Trade receivables | $ 203,930 | $ 237,022 |
Less – allowance for doubtful debts | (1,697) | (4,543) |
Trade receivables, net | 202,233 | 232,479 |
Tax receivables | 13,166 | 45,948 |
Government grant receivables | 23,016 | 19,748 |
Other receivables | 3,847 | 10,889 |
Trade and other receivables | $ 242,262 | $ 309,064 |
Financial assets and other re_8
Financial assets and other receivables - Changes in impairment losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Change in scope of consolidation | $ 112,226 | |
Financial assets at end of period | $ (349,232) | |
Accumulated impairment | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Financial assets at beginning of period | 4,543 | 4,964 |
Impairment losses recognized | 504 | 2,517 |
Amounts written off as uncollectible | (3,666) | (100) |
Change in scope of consolidation | (2,750) | |
Exchange differences | 315 | (88) |
Financial assets at end of period | $ 1,697 | $ 4,543 |
Financial assets and other re_9
Financial assets and other receivables - Factoring of trade receivables (Details) € in Thousands, $ in Thousands | Oct. 02, 2020EUR (€) | Oct. 02, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Disclosure of financial assets [line items] | ||||||||
Repaid | $ 235,296 | $ 329,501 | [1] | $ 106,514 | [1] | |||
Borrowings | $ 107,607 | 107,607 | 158,999 | |||||
Accounts receivables | 247,792 | 247,792 | 314,266 | |||||
Finance costs | 66,968 | $ 63,225 | $ 57,066 | [2] | ||||
Factoring of receivables | ||||||||
Disclosure of financial assets [line items] | ||||||||
Upfront Cash Consideration | $ 48,800 | 169,105 | ||||||
Cash consideration advanced for the financing facility | € | € 60,000 | |||||||
Percentage of accounts receivable | 10.00% | 10.00% | ||||||
Percentage of annual agent fee | 0.15% | 0.15% | ||||||
Percentage of financing commission | 1.00% | 1.00% | ||||||
Repaid | 95,800 | |||||||
Borrowings | 74,844 | 74,844 | ||||||
Bad debt losses | € | € 5,000 | |||||||
Accounts receivables | $ 89,154 | 89,154 | ||||||
Finance costs | $ 916 | |||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. | |||||||
[2] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Financial assets and other r_10
Financial assets and other receivables - Government Grants (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | ||
Income from government grants | $ 30,420 | $ 33,327 |
Expense related to government grants | 33,327 | |
Factoring of receivables | ||
Disclosure of financial assets [line items] | ||
Factored receivable | $ 2,190 | $ 0 |
Inventories - Schedule (Details
Inventories - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories. | ||
Finished goods | $ 100,711 | $ 158,056 |
Raw materials in progress and industrial supplies | 99,259 | 140,689 |
Other inventories | 46,274 | 54,564 |
Advances to suppliers | 305 | 812 |
Total inventories | $ 246,549 | $ 354,121 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Write-downs (reversals of write-downs) of inventories [abstract] | ||
Inventory write-down | $ 1,939 | $ 4,295 |
Purchase Commitments And Collateral [Abstract] | ||
Inventories pledged as collateral | $ 25,000 | $ 33,000 |
Other assets - Non-current and
Other assets - Non-current and current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other assets abstract | ||
Guarantees and deposits given - Non-Current | $ 10,290 | $ 1,100 |
Guarantees and deposits given - Current | 253 | 9 |
Guarantees and deposits given - Total | 10,543 | 1,109 |
Prepayments and accrued income - Non-Current | 10 | |
Prepayments and accrued income - Current | 10,656 | 13,415 |
Prepayments and accrued income - Total | 10,656 | 13,425 |
Other assets - Non-Current | 1,614 | 487 |
Other assets - Current | 9,805 | 10,252 |
Other assets - Total | 11,419 | 10,739 |
Non-Current | 11,904 | 1,597 |
Current | 20,714 | 23,676 |
Total | $ 32,618 | $ 25,273 |
Equity - Share capital (Details
Equity - Share capital (Details) € / shares in Units, $ / shares in Units, € in Thousands | Oct. 13, 2015EUR (€) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 22, 2016$ / shares | Jun. 21, 2016$ / shares | 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] | ||||||||||||
Issue of equity | € 50,000 | $ 240,000 | ||||||||||
Par value per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 7.50 | ||||||||
Par value per consolidated share | $ / shares | $ 1 | |||||||||||
Number of shares outstanding | 169,197,366 | |||||||||||
Number of shares outstanding, including treasury shares | 170,863,773 | 170,863,773 | ||||||||||
Treasury shares | $ | $ 1,666,407 | |||||||||||
Issued capital | $ | $ 1,784,000 | $ 1,784,000 | ||||||||||
Number of ordinary shares issued | 0 | 0 | ||||||||||
Equity | $ | $ 365,719,000 | $ 602,297,000 | $ 884,372,000 | $ 937,758,000 | ||||||||
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 | $ 7.50 | |||||||||||
Preference shares [member] | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Shares issued (in shares) | 50,000 | |||||||||||
Grupo Villar Mir SAU | ||||||||||||
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) | 53.86% | |||||||||||
Grupo Villar Mir SAU | Grupo FerroAtlantica S.A.U. | ||||||||||||
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, 2020 | Dec. 31, 2019 |
Equity [abstract] | ||
Actuarial gains and losses | $ 4,833 | $ 1,248 |
Hedging instruments and other | 922 | (3,417) |
Valuation adjustments | $ 5,755 | $ (2,169) |
Equity - Capital Raising (Detai
Equity - Capital Raising (Details) € in Thousands, $ in Thousands | Apr. 30, 2021 | Apr. 21, 2021 | Mar. 27, 2021USD ($) | Oct. 13, 2015EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 15, 2017USD ($) |
Events after the reporting period | ||||||||
Issue of equity | € 50,000 | $ 240 | ||||||
Senior Notes due 2022 | ||||||||
Events after the reporting period | ||||||||
Principal amount | $ 350,000 | $ 350,000 | $ 350,000 | |||||
Agreement in Principle on the Terms of Financing Proposal | ||||||||
Events after the reporting period | ||||||||
Issue of equity | $ 40,000 | |||||||
Percentage of noteholders entered into lock up agreement | 96.00% | 95.92% | ||||||
Agreement in Principle on the Terms of Financing Proposal | Minimum | ||||||||
Events after the reporting period | ||||||||
Issue of equity | 40,000 | |||||||
Agreement in Principle on the Terms of Financing Proposal | Senior Notes due 2022 | ||||||||
Events after the reporting period | ||||||||
Minimum percentage of note holders | 60.00% | |||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | ||||||||
Events after the reporting period | ||||||||
Principal amount | $ 60,000 |
Equity - Net financial debt (De
Equity - Net financial debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Equity [abstract] | |||||||
Gross financial debt | $ 551,547 | $ 606,361 | $ 645,389 | ||||
Cash, restricted cash and cash equivalents | (131,557) | (123,175) | [1] | (216,647) | [1] | $ (184,472) | [1] |
Net financial debt | 419,990 | 483,186 | 428,742 | ||||
Consolidated equity | $ 365,719 | $ 602,297 | $ 884,372 | $ 937,758 | |||
Net financial debt/Consolidated equity | 114.84% | 80.22% | 48.48% | ||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Equity - Distribution of borrow
Equity - Distribution of borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [abstract] | |||
Non-current gross financial debt | $ 394,985 | $ 548,531 | $ 560,738 |
Current gross financial debt | 156,562 | 57,830 | 84,651 |
Gross financial debt | $ 551,547 | $ 606,361 | $ 645,389 |
Non-current gross financial debt to total gross financial debt (as a percentage) | 71.61% | 90.46% | 86.88% |
Current gross financial debt to total gross financial debt (as a percentage) | 28.39% | 9.54% | 13.12% |
Gross financial debt (as a percentage) | 100.00% | 100.00% | 100.00% |
Equity - Share Repurchase Progr
Equity - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 07, 2018 | Aug. 03, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | 0 | 0 | |||
Total consideration | $ 20,100 | $ 20,100 | [1] | |||
Stamp duty | $ 100 | |||||
Average price paid per share | $ 6.89 | |||||
Purchased and cancelled | 1,152,958 | |||||
Ordinary shares purchased into treasury | 1,741,091 | |||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Equity - Dividends (Details)
Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 20, 2018 | Aug. 20, 2018 | Jun. 29, 2018 | May 21, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [abstract] | ||||||
Dividends paid, per share | $ 0.06 | $ 0.06 | $ 0 | $ 0 | ||
Dividends paid, ordinary shares | $ 10,321 | $ 10,321 |
Equity - Changes in non-control
Equity - Changes in non-controlling interests (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Equity at beginning of period | $ 602,297 | $ 884,372 | $ 937,758 | |
Loss for the year | (3,419) | (5,039) | (19,088) | [1] |
Equity at end of period | 365,719 | 602,297 | 884,372 | |
Noncontrolling interests | ||||
Equity at beginning of period | 118,077 | 116,145 | 121,734 | |
Loss for the year | (3,419) | (5,039) | ||
Increase of Parent's ownership interest | 5,881 | |||
Translation differences and other | (154) | 1,090 | ||
Equity at end of period | $ 114,504 | $ 118,077 | $ 116,145 | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Equity - Non-controlling intere
Equity - Non-controlling interests financial information (Details) | Nov. 05, 2009USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
Non-current assets | $ 689,907,000 | $ 916,211,000 | |||||
Current assets | 657,238,000 | 818,142,000 | |||||
Non-current liabilities | 548,640,000 | 734,599,000 | |||||
Current liabilities | 432,786,000 | 397,457,000 | |||||
CONSOLIDATED INCOME STATEMENT | |||||||
Sales | 1,144,434,000 | 1,615,222,000 | $ 2,242,002,000 | [1] | |||
Operating profit | (184,350,000) | (355,586,000) | 99,074,000 | [1] | |||
Profit before taxes | (222,420,000) | (411,818,000) | 35,568,000 | [1] | |||
Net (loss) profit | (249,758,000) | (285,640,000) | [2] | 24,573,000 | [1],[2] | ||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Cash flows from operating activities | 154,268,000 | (31,194,000) | [2] | 116,795,000 | [2] | ||
Cash flows from investing activities | (31,940,000) | 165,910,000 | [2] | (85,875,000) | [2] | ||
Cash flows from financing activities | (113,333,000) | (224,005,000) | [2] | 10,285,000 | [2] | ||
Exchange differences on cash and cash equivalents in foreign currencies | (613,000) | (4,183,000) | [2] | (9,030,000) | [2] | ||
Beginning balance of cash and cash equivalents | 94,852,000 | ||||||
Ending balance of cash and cash equivalents | 102,714,000 | 94,852,000 | |||||
Non-controlling interests | 114,504,000 | 118,077,000 | |||||
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 | 70,270,000 | 73,945,000 | |||||
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 | 80,887,000 | 80,923,000 | |||||
Current assets | 58,404,000 | 56,839,000 | |||||
Non-current liabilities | 14,677,000 | 14,677,000 | |||||
Current liabilities | 23,208,000 | 27,579,000 | |||||
CONSOLIDATED INCOME STATEMENT | |||||||
Sales | 156,995,000 | 167,503,000 | |||||
Operating profit | 5,900,000 | 6,688,000 | |||||
Profit before taxes | 5,900,000 | 6,423,000 | |||||
Net (loss) profit | 3,008,000 | 3,276,000 | |||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Cash flows from operating activities | 28,683,000 | 2,287,000 | |||||
Cash flows from investing activities | (7,977,000) | (2,256,000) | |||||
Beginning balance of cash and cash equivalents | 6,566,000 | 6,535,000 | |||||
Ending balance of cash and cash equivalents | 27,272,000 | 6,566,000 | 6,535,000 | ||||
WVA Manufacturing, LLC | Dow Corning Corporation | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Production output sold (as a percentage) | 49.00% | ||||||
WVA Manufacturing, LLC | Dow Corning Corporation | 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 | $ 44,808,000 | 44,224,000 | |||||
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 | $ 67,806,000 | 63,639,000 | |||||
Current assets | 37,095,000 | 30,931,000 | |||||
Non-current liabilities | 18,186,000 | 19,944,000 | |||||
Current liabilities | 16,320,000 | 7,277,000 | |||||
CONSOLIDATED INCOME STATEMENT | |||||||
Sales | 70,637,000 | 78,414,000 | |||||
Operating profit | 3,113,000 | 252,000 | |||||
Profit before taxes | 2,898,000 | (36,000) | |||||
Net (loss) profit | 1,666,000 | (70,000) | |||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Cash flows from operating activities | 15,387,000 | 3,720,000 | |||||
Cash flows from investing activities | (5,227,000) | (3,544,000) | |||||
Cash flows from financing activities | 227,000 | ||||||
Exchange differences on cash and cash equivalents in foreign currencies | 45,000 | 149,000 | |||||
Beginning balance of cash and cash equivalents | 2,319,000 | 1,767,000 | |||||
Ending balance of cash and cash equivalents | $ 12,524,000 | $ 2,319,000 | $ 1,767,000 | ||||
Quebec Silicon Limited Partnership [Member] | Dow Corning Corporation | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
Production output sold (as a percentage) | 49.00% | 49.00% | |||||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). | ||||||
[2] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Earnings (loss) per ordinary _3
Earnings (loss) per ordinary share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Numerator: | |||||
Profit (loss) attributable to the Parent (US$'000) | $ (246,339) | $ (280,601) | $ 43,661 | [1] | |
Denominator: | |||||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | [1] | |
Basic (loss) earnings per ordinary share (US$) | $ (1.46) | $ (1.66) | $ 0.25 | [1] | |
Numerator: | |||||
Profit (loss) attributable to the Parent (US$'000) | $ (246,339) | $ (280,601) | $ 43,661 | [1] | |
Denominator: | |||||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | [1] | |
Effect of dilutive securities | [1] | 123,340 | |||
Weighted average dilutive shares outstanding | 169,269,281 | 169,152,905 | 171,529,612 | [1] | |
Diluted (loss) earnings per ordinary share (US$) | $ (1.46) | $ (1.66) | $ 0.25 | [1] | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Earnings (loss) per ordinary _4
Earnings (loss) per ordinary share - Antidilutive (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | |||
Potential ordinary shares excluded from calculation of diluted (loss) earnings per share because their effect would be anti-dilutive | 57,458 | 445,008 | 269,116 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of other provisions [line items] | |||
Non-current provisions | $ 108,487 | $ 84,852 | |
Current provisions | 55,296 | 46,091 | |
Provisions | 163,783 | 130,943 | $ 116,357 |
Provisions For Pensions [Member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 56,395 | 56,679 | |
Current provisions | 191 | 1,050 | |
Provisions | 56,586 | 57,729 | 52,726 |
Environment provision [member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 2,910 | 2,923 | |
Current provisions | 1,256 | 1,185 | |
Provisions | 4,166 | 4,108 | 3,211 |
Provisions for litigation [member] | |||
Disclosure of other provisions [line items] | |||
Current provisions | 1,355 | 3,905 | |
Provisions | 1,355 | 3,905 | 2,399 |
Provisions for third-party liability | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 10,759 | 9,263 | |
Provisions | 10,759 | 9,263 | 7,270 |
Provisions for C02 emissions allowances [Member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 5,776 | ||
Current provisions | 40,161 | 29,162 | |
Provisions | 40,161 | 34,938 | 27,970 |
Other provisions [member] | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 38,423 | 10,211 | |
Current provisions | 12,333 | 10,789 | |
Provisions | $ 50,756 | $ 21,000 | $ 22,781 |
Provisions - Changes - (Details
Provisions - Changes - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | $ 130,943 | $ 116,357 |
Charges for the year | 75,048 | 34,543 |
Provisions reversed with a credit to income | (3,815) | (2,973) |
Amounts used | (42,484) | (13,023) |
Provision against equity | (2,692) | 2,244 |
Exchange differences and others | 6,783 | (1,606) |
Disposals from business divestitures | (4,599) | |
Balance at end of period | 163,783 | 130,943 |
Provisions For Pensions [Member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 57,729 | 52,726 |
Charges for the year | 5,340 | 7,444 |
Provisions reversed with a credit to income | (1,843) | (1,798) |
Amounts used | (3,514) | (2,019) |
Provision against equity | (3,260) | 2,244 |
Exchange differences and others | 2,134 | (868) |
Balance at end of period | 56,586 | 57,729 |
Environment provision [member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 4,108 | 3,211 |
Charges for the year | 117 | 820 |
Amounts used | (26) | |
Exchange differences and others | (33) | 77 |
Balance at end of period | 4,166 | 4,108 |
Provisions for litigation [member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 3,905 | 2,399 |
Charges for the year | 184 | 2,166 |
Amounts used | (2,886) | (650) |
Exchange differences and others | 152 | (10) |
Balance at end of period | 1,355 | 3,905 |
Provisions for third-party liability | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 9,263 | 7,270 |
Charges for the year | 268 | 2,361 |
Provisions reversed with a credit to income | (74) | |
Amounts used | (198) | (179) |
Provision against equity | 568 | |
Exchange differences and others | 858 | (115) |
Balance at end of period | 10,759 | 9,263 |
Provisions for C02 emissions allowances [Member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 34,938 | 27,970 |
Charges for the year | 38,249 | 18,794 |
Amounts used | (35,860) | (9,452) |
Exchange differences and others | 2,834 | (249) |
Disposals from business divestitures | (2,125) | |
Balance at end of period | 40,161 | 34,938 |
Other provisions [member] | ||
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | 21,000 | 22,781 |
Charges for the year | 30,890 | 2,958 |
Provisions reversed with a credit to income | (1,972) | (1,101) |
Amounts used | (723) | |
Exchange differences and others | 838 | (441) |
Disposals from business divestitures | (2,474) | |
Balance at end of period | $ 50,756 | $ 21,000 |
Provisions - Employee obligatio
Provisions - Employee obligations - France - (Details) - France - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Percentage change in cost of provision | 1.00% | |
Change in obligation | $ 4,953 | $ 4,767 |
Not later than one year | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 1,128 | |
Later than one year and not later than two years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 1,129 | |
Later than two years and not later than three years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 2,018 | |
Later than three years and not later than four years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 2,322 | |
Later than four years and not later than five years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 1,691 | |
Later than five years and not later than ten years | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 9,065 | |
FerroPem SAS | Present value of defined benefit obligation [member] | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 32,795 | 28,049 |
Current service cost | 1,580 | 1,951 |
Borrowing costs | 242 | 524 |
Actuarial differences | (2,170) | 4,432 |
Benefits paid | (1,037) | (1,581) |
Exchange differences | 3,086 | (580) |
Obligations at end of year | $ 34,496 | $ 32,795 |
Provisions - Employee obligat_2
Provisions - Employee obligations - South Africa - (Details) - South Africa - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Percentage change in cost of medical aid | 1.00% | |
Change in provision due to reasonably possible change in the cost of medical aid | $ 378 | $ 562 |
Disclosure of fair value of plan assets [abstract] | ||
Cash | 1.84% | 1.50% |
Equity | 41.70% | 42.25% |
Bond | 18.53% | 15.64% |
Property | 1.68% | 2.78% |
International | 32.02% | 32.51% |
Others | 4.23% | 5.32% |
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 | $ 4,601 | $ 5,429 |
Current service cost | 47 | 90 |
Borrowing costs | 435 | 511 |
Actuarial differences | (1,238) | (1,291) |
Benefits paid | (278) | (254) |
Exchange differences | (106) | 116 |
Obligations at end of year | 3,461 | 4,601 |
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 | 2,126 | 1,906 |
Interest income on assets | 200 | 194 |
Actuarial differences | (77) | (81) |
Other | (45) | 107 |
Fair value of plan assets at the end of the year | 2,204 | 2,126 |
Actual return on assets | $ 122 | $ 113 |
Provisions - Employee obligat_3
Provisions - Employee obligations - Venezuela - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Venezuela | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 500.00% | |
Salary increase | 7374.00% | |
Discount rate | 536.00% | |
Discount rate | 7673.00% | |
Expected inflation rate | 550.00% | |
Expected inflation rate | 7374.00% | |
Actuarial assumption of retirement age | 65 years | |
Venezuela | Minimum | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Actuarial assumption of retirement age | 62 years | |
Venezuela | Maximum | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Actuarial assumption of retirement age | 63 years | |
France | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 0.75% | 0.75% |
Expected inflation rate | 1.60% | 1.60% |
Actuarial assumption of retirement age | 65 years | 65 years |
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] | ||
Actuarial assumption of retirement age | 63 years | 63 years |
South Africa | Minimum | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 5.80% | 7.10% |
Discount rate | 9.80% | 9.50% |
Expected inflation rate | 4.80% | 5.10% |
South Africa | Maximum | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 9.10% | 7.60% |
Discount rate | 13.20% | 10.70% |
Expected inflation rate | 7.60% | 6.10% |
FerroAtlantica De Venezuela SA | Venezuela | ||
Disclosure of defined benefit plans [line items] | ||
Years of service | 15 years | |
Percentage of basic salary guaranteed by IVSS | 80.00% | |
Present value of defined benefit obligation [member] | South Africa | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | $ 4,601 | $ 5,429 |
Current service cost | 47 | 90 |
Borrowing costs | 435 | 511 |
Actuarial differences | 1,238 | 1,291 |
Benefits paid | 278 | 254 |
Exchange differences | (106) | 116 |
Obligations at end of year | 3,461 | 4,601 |
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 | 2,577 | 534 |
Current service cost | 26 | 50 |
Borrowing costs | 596 | 1,128 |
Benefits paid | (2) | (3) |
Exchange differences | (956) | (1,200) |
Other | (2,220) | 2,068 |
Obligations at end of year | $ 22 | $ 2,577 |
Provisions - Employee obligat_4
Provisions - Employee obligations - North America - Provisions- (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | |
Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 2,085 | $ 1,809 |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ (1,567) | (1,374) |
North America | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 76,956 | 71,637 |
Fair value of plan assets | (58,348) | (53,880) |
Provision for pensions | 18,608 | 17,757 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discretionary contributions to the defined benefit pension and postretirement plans | 1,304 | |
North America | Pension Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 67,324 | 62,898 |
North America | Post Retirement Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 9,632 | 8,739 |
USA | Pension Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | 39,214 | 37,272 |
Fair value of plan assets | (36,011) | (33,620) |
Provision for pensions | $ 3,203 | $ 3,652 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 2.25% | 3.00% |
Retirement age | 65 years | 65 years |
CANADA | Pension Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | $ 28,110 | $ 25,626 |
Fair value of plan assets | (22,337) | (20,260) |
Provision for pensions | $ 5,773 | $ 5,366 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 2.61% | 3.15% |
Retirement age | 60 years | |
CANADA | Post Retirement Plans | ||
Reconciliation Of Benefit Obligation Plan Assets And Funded Status [Abstract] | ||
Benefit obligation | $ 9,632 | $ 8,739 |
Provision for pensions | $ 9,632 | $ 8,739 |
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Discount rate | 2.75% | 3.15% |
Minimum | CANADA | Pension Plans | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 2.75% | 2.75% |
Retirement age | 58 years | 58 years |
Minimum | CANADA | Post Retirement Plans | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Retirement age | 58 years | 58 years |
Maximum | CANADA | Pension Plans | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Salary increase | 3.00% | 3.00% |
Retirement age | 60 years | |
Maximum | CANADA | Post Retirement Plans | ||
Actuarial Assumptions Used To Calculate Defined Benefit Obligation [Abstract] | ||
Retirement age | 60 years | 60 years |
Not later than one year | Actuarial assumption of medical cost trend rates [member] | ||
Estimated Future Benefit Payments [Abstract] | ||
Health care cost trend rate | 5.20% | |
Not later than one year | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | $ 3,281 | |
Not later than one year | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 192 | |
Later than one year and not later than two years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,300 | |
Later than one year and not later than two years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 189 | |
Later than two years and not later than three years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,363 | |
Later than two years and not later than three years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 204 | |
Later than three years and not later than four years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,402 | |
Later than three years and not later than four years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 214 | |
Later than four years and not later than five years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 3,492 | |
Later than four years and not later than five years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 240 | |
Later than five years and not later than ten years | North America | Pension Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | 17,561 | |
Later than five years and not later than ten years | North America | Post Retirement Plans | ||
Estimated Future Benefit Payments [Abstract] | ||
Estimated future benefit payments | $ 1,550 | |
Later than twenty years and not later than twenty-five years | Actuarial assumption of medical cost trend rates [member] | ||
Estimated Future Benefit Payments [Abstract] | ||
Health care cost trend rate | 4.00% | |
Globe Metallurgical Inc | 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, 2020 | Dec. 31, 2019 | |
North America | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | $ 71,637 | |
Obligations at end of year | $ 76,956 | $ 71,637 |
Disclosure of fair value of plan assets [abstract] | ||
Cash | 33.00% | 1.00% |
Equity Mutual Funds | 10.00% | 44.00% |
Fixed Income Securities | 32.00% | 55.00% |
Assets held by insurance company | 25.00% | |
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 | $ 53,880 | |
Fair value of plan assets at the end of the year | 58,348 | $ 53,880 |
North America | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 62,898 | |
Obligations at end of year | 67,324 | 62,898 |
North America | Post Retirement Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 8,739 | |
Obligations at end of year | 9,632 | 8,739 |
USA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 37,272 | |
Obligations at end of year | 39,214 | 37,272 |
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 33,620 | |
Fair value of plan assets at the end of the year | 36,011 | 33,620 |
CANADA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 25,626 | |
Obligations at end of year | 28,110 | 25,626 |
Ifrs Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 20,260 | |
Fair value of plan assets at the end of the year | 22,337 | 20,260 |
CANADA | Post Retirement Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 8,739 | |
Obligations at end of year | 9,632 | 8,739 |
Present value of defined benefit obligation [member] | North America | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 71,637 | |
Service cost | 626 | |
Borrowing costs | 2,160 | |
Actuarial differences | 5,550 | |
Benefits paid | (3,502) | |
Exchange differences | 712 | |
Expenses | (227) | |
Obligations at end of year | 76,956 | 71,637 |
Present value of defined benefit obligation [member] | USA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 37,272 | |
Service cost | 147 | |
Borrowing costs | 1,085 | |
Actuarial differences | 3,020 | |
Benefits paid | (2,083) | |
Expenses | (227) | |
Obligations at end of year | 39,214 | 37,272 |
Present value of defined benefit obligation [member] | CANADA | Pension Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 25,626 | |
Service cost | 149 | |
Borrowing costs | 800 | |
Actuarial differences | 2,252 | |
Benefits paid | (1,249) | |
Exchange differences | 532 | |
Obligations at end of year | 28,110 | 25,626 |
Present value of defined benefit obligation [member] | CANADA | Post Retirement Plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Obligations at beginning of year | 8,739 | |
Service cost | 330 | |
Borrowing costs | 275 | |
Actuarial differences | 278 | |
Benefits paid | (170) | |
Exchange differences | 180 | |
Obligations at end of year | 9,632 | 8,739 |
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 | 53,880 | |
Interest income on assets | 1,503 | |
Benefits paid | (3,270) | |
Actuarial return (loss) on plan assets | 4,751 | |
Exchange Differences | 711 | |
Other | 773 | |
Fair value of plan assets at the end of the year | 58,348 | 53,880 |
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 | 33,620 | |
Interest income on assets | 973 | |
Benefits paid | (2,083) | |
Actuarial return (loss) on plan assets | 3,681 | |
Other | (180) | |
Fair value of plan assets at the end of the year | 36,011 | 33,620 |
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 | 20,260 | |
Interest income on assets | 530 | |
Benefits paid | (1,187) | |
Actuarial return (loss) on plan assets | 1,070 | |
Exchange Differences | 711 | |
Other | 953 | |
Fair value of plan assets at the end of the year | $ 22,337 | $ 20,260 |
Provisions - Third-Party Liabil
Provisions - Third-Party Liability (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Other provisions [abstract] | |||
Non-current provisions | $ 108,487 | $ 84,852 | |
Current provisions | 55,296 | 46,091 | |
Provisions | $ 163,783 | 130,943 | $ 116,357 |
Globe Metallurgical Inc | |||
Other Benefit Plans [Abstract] | |||
Company match percentage | 25.00% | ||
Globe Metallurgical Inc | North America | |||
Other Benefit Plans [Abstract] | |||
Number of defined contribution plans provided | plan | 2 | ||
Maximum | Globe Metallurgical Inc | |||
Other Benefit Plans [Abstract] | |||
Percentage of compensation | 6.00% | ||
Environmental rehabilitation | |||
Other provisions [abstract] | |||
Non-current provisions | $ 2,910 | 2,923 | |
Current provisions | 1,256 | 1,185 | |
Provisions for litigation - FerroPem France | |||
Other provisions [abstract] | |||
Current provisions | 1,080 | 1,166 | |
Provisions for third-party liability | |||
Other provisions [abstract] | |||
Non-current provisions | 10,759 | 9,263 | |
Provisions | 10,759 | $ 9,263 | $ 7,270 |
Later than one year and not later than two years | Provisions for third-party liability | FerroPem, S.A.S. | |||
Other Benefit Plans [Abstract] | |||
Estimated future benefit payments | 585 | ||
Later than two years and not later than three years | Provisions for third-party liability | FerroPem, S.A.S. | |||
Other Benefit Plans [Abstract] | |||
Estimated future benefit payments | 293 | ||
Later than three years and not later than four years | Provisions for third-party liability | FerroPem, S.A.S. | |||
Other Benefit Plans [Abstract] | |||
Estimated future benefit payments | 292 | ||
Later than four years and not later than five years | Provisions for third-party liability | FerroPem, S.A.S. | |||
Other Benefit Plans [Abstract] | |||
Estimated future benefit payments | 293 | ||
Later than five years and not later than ten years | Provisions for third-party liability | FerroPem, S.A.S. | |||
Other Benefit Plans [Abstract] | |||
Estimated future benefit payments | $ 1,499 |
Provisions - Other Benefit Plan
Provisions - Other Benefit Plans (Details) € in Thousands, $ in Thousands | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Other provisions [abstract] | ||||
Provisions | $ 163,783 | $ 130,943 | $ 116,357 | |
Other Provisions Provisions For Taxes | ||||
Other provisions [abstract] | ||||
Provisions | 6,053 | 4,866 | ||
Other Provisions Other | ||||
Other provisions [abstract] | ||||
Provisions | 44,703 | $ 16,134 | ||
Other Provisions Cee Dumbria Hydroelectric Plants Litigation | ||||
Other provisions [abstract] | ||||
Provisions | € 25,927 | 31,815 | ||
Other Provisions for Reclaiming Land | ||||
Other provisions [abstract] | ||||
Provisions | $ 7,118 |
Bank borrowings - (Details)
Bank borrowings - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings [abstract] | ||
Non-Current Amount | $ 5,277 | $ 144,388 |
Current Amount | 102,330 | 14,611 |
Principal amount - Gross | 5,277 | 144,388 |
Total | 107,607 | 158,999 |
Amount due for settlement after 12 months | 5,277 | 144,388 |
Credit facilities | ||
Borrowings [abstract] | ||
Principal amount | 100,000 | 100,000 |
Non-Current Amount | 45,449 | |
Current Amount | 27,237 | 12,600 |
Principal amount - Gross | 31,155 | 62,835 |
Unamortised issuance costs | (3,918) | (4,786) |
Total | 27,237 | 58,049 |
Amount due for settlement within 12 months | 27,237 | 12,600 |
Amount due for settlement after 12 months | 45,449 | |
Receivable Factoring Facility | ||
Borrowings [abstract] | ||
Principal amount | 73,626 | |
Current Amount | 74,844 | |
Total | 74,844 | |
Other | ||
Borrowings [abstract] | ||
Principal amount | 150,000 | |
Non-Current Amount | 5,277 | 98,939 |
Current Amount | 249 | 2,011 |
Total | 5,526 | 100,950 |
Amount due for settlement after 12 months | $ 5,277 | $ 98,939 |
Bank borrowings - Amended Revol
Bank borrowings - Amended Revolving Credit Facility - (Details) - USD ($) $ in Thousands | Oct. 11, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2019 | Sep. 29, 2019 | Feb. 22, 2019 | Feb. 21, 2019 | Feb. 27, 2018 |
Borrowings [abstract] | |||||||||||
Repayment of debt | $ 235,296 | $ 329,501 | $ 106,514 | ||||||||
Revolving Credit Facility | |||||||||||
Borrowings [abstract] | |||||||||||
Maximum borrowing capacity | $ 150,000 | $ 200,000 | $ 200,000 | $ 250,000 | $ 250,000 | ||||||
Repayment of debt | $ 134,570 | ||||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Bank borrowings - Credit and Se
Bank borrowings - Credit and Security Agreement - (Details) - USD ($) $ in Thousands | Mar. 16, 2021 | Oct. 11, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Bank Borrowings | |||||||
Restricted cash reserve | $ 28,843 | $ 28,323 | |||||
Inventory pledged as security | 25,000 | 33,000 | |||||
Outstanding balance | 107,607 | 158,999 | |||||
Repayment of debt | 235,296 | $ 329,501 | [1] | $ 106,514 | |||
Repayment of North-American Asset Based Loan | |||||||
Bank Borrowings | |||||||
Repayment of debt | $ 39,476 | ||||||
ABL Revolver | |||||||
Bank Borrowings | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Credit facility term | 5 years | ||||||
Spring forward repayment term | 3 months | ||||||
Undrawn availability | $ 100,000 | ||||||
Reserves | 600 | ||||||
Maximum undrawn availability of outstanding letters of credit | 10,000 | ||||||
Outstanding amount of revolving advances and swing loans limit | 45,000 | ||||||
Restricted cash reserve | 22,500 | ||||||
Receivables pledged as security | 31,000 | ||||||
Inventory pledged as security | 25,000 | ||||||
Outstanding balance | $ 6,000 | $ 38,000 | |||||
ABL Revolver | Level 1 | |||||||
Bank Borrowings | |||||||
Percentage of average undrawn availability | 66.70% | ||||||
ABL Revolver | Level 3 | |||||||
Bank Borrowings | |||||||
Percentage of average undrawn availability | 33.30% | ||||||
ABL Revolver | Overnight bank funding rate | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 0.50% | ||||||
ABL Revolver | LIBOR | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 1.00% | ||||||
ABL Revolver | LIBOR | Level 1 | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 2.50% | ||||||
ABL Revolver | LIBOR | Level 2 | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 2.75% | ||||||
ABL Revolver | LIBOR | Level 3 | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 3.00% | ||||||
ABL Revolver | Domestic rate | Level 1 | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 1.50% | ||||||
ABL Revolver | Domestic rate | Level 2 | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 1.75% | ||||||
ABL Revolver | Domestic rate | Level 3 | |||||||
Bank Borrowings | |||||||
Applicable margin (as a percent) | 2.00% | ||||||
ABL Revolver | Minimum | |||||||
Bank Borrowings | |||||||
Formula amount receivable period | 90 days | ||||||
Undrawn availability | $ 10,000 | ||||||
ABL Revolver | Minimum | Level 2 | |||||||
Bank Borrowings | |||||||
Percentage of average undrawn availability | 33.30% | ||||||
ABL Revolver | Maximum | |||||||
Bank Borrowings | |||||||
Formula amount as percentage of eligible receivables | 85.00% | ||||||
Formula amount as percentage of inventory and inventory in transit | 75.00% | ||||||
Formula amount as percentage of inventory and inventory in transit appraised net orderly liquidation value of Eligible inventory over reserves | 85.00% | ||||||
Formula amount subject to percentage of inventory | 65.00% | ||||||
Formula amount receivable period | 120 days | ||||||
Formula amount subject to receivable | $ 5,000 | ||||||
ABL Revolver | Maximum | Level 2 | |||||||
Bank Borrowings | |||||||
Percentage of average undrawn availability | 66.70% | ||||||
ABL Revolver | CANADA | |||||||
Bank Borrowings | |||||||
Undrawn availability | $ 10,000 | ||||||
ABL Revolver | CANADA | Maximum | |||||||
Bank Borrowings | |||||||
Formula amount subject to inventory | 20,000 | ||||||
ABL Revolver | Eligible in-transit inventory | Maximum | |||||||
Bank Borrowings | |||||||
Formula amount subject to inventory | 10,000 | ||||||
ABL Revolver | Consigned inventory | Minimum | |||||||
Bank Borrowings | |||||||
Formula amount subject to inventory | 7,500 | ||||||
ABL Revolver | Consigned inventory | Maximum | |||||||
Bank Borrowings | |||||||
Formula amount subject to inventory | 10,000 | ||||||
ABL Revolver | Stores and spare parts inventory | Maximum | |||||||
Bank Borrowings | |||||||
Formula amount subject to inventory | 2,000 | ||||||
ABL Revolver | Packaging materials inventory | Maximum | |||||||
Bank Borrowings | |||||||
Formula amount subject to inventory | $ 500 | ||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Bank borrowings - Borrowings fr
Bank borrowings - Borrowings from receivable factoring facility - (Details) - Factoring of receivables € in Thousands, $ in Thousands | Oct. 02, 2020EUR (€) | Oct. 02, 2020USD ($) | Dec. 31, 2020USD ($) |
Disclosure of detailed information about borrowings [line items] | |||
Upfront Cash Consideration | $ | $ 48,800 | $ 169,105 | |
Cash consideration advanced for the financing facility | € 60,000 | ||
Percentage of accounts receivable | 10.00% | 10.00% | |
Percentage of annual agent fee | 0.15% | 0.15% | |
Percentage of financing commission | 1.00% | 1.00% | |
Bad debt losses | € 5,000 |
Bank borrowings - Other Loans -
Bank borrowings - Other Loans - (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Feb. 06, 2020 | Dec. 10, 2019 | Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 09, 2019 | |
Bank Borrowings | |||||||||||
Outstanding balance | $ 107,607 | $ 107,607 | $ 158,999 | ||||||||
Repayment of debt | 235,296 | 329,501 | [1] | $ 106,514 | |||||||
Securitizations | |||||||||||
Bank Borrowings | |||||||||||
Repayment of debt | 107,657 | ||||||||||
Factoring of receivables | |||||||||||
Bank Borrowings | |||||||||||
Outstanding balance | 74,844 | $ 74,844 | |||||||||
Upfront cash consideration | $ 48,800 | 169,105 | |||||||||
Repayment of debt | $ 95,800 | ||||||||||
ING | Securitizations | |||||||||||
Bank Borrowings | |||||||||||
Senior loan commitments | $ 75,000 | ||||||||||
New senior loans | Securitizations | |||||||||||
Bank Borrowings | |||||||||||
Senior loan commitments | $ 150,000 | $ 150,000 | |||||||||
Outstanding balance | $ 104,130 | ||||||||||
Term of the securitization program | 2 years | ||||||||||
Upfront cash consideration | $ 2,808 | ||||||||||
Other Loans | |||||||||||
Bank Borrowings | |||||||||||
Principal amount | $ 5,277 | ||||||||||
Interest rate (as a percent) | 0.00% | ||||||||||
Other Loans | Minimum | |||||||||||
Bank Borrowings | |||||||||||
Credit facility term | 1 year | ||||||||||
Other Loans | Maximum | |||||||||||
Bank Borrowings | |||||||||||
Credit facility term | 5 years | ||||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Bank borrowings - Borrowing det
Bank borrowings - Borrowing detail by currency - (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Borrowings [abstract] | ||
Non-Current Principal Amount | $ 5,277 | $ 144,388 |
Current Principal Amount | 102,330 | 14,611 |
Total | 107,607 | 158,999 |
US Dollars | ||
Borrowings [abstract] | ||
Non-Current Principal Amount | 144,388 | |
Current Principal Amount | 27,486 | 14,611 |
Total | 27,486 | $ 158,999 |
Euros | ||
Borrowings [abstract] | ||
Non-Current Principal Amount | 5,277 | |
Current Principal Amount | 74,844 | |
Total | $ 80,121 |
Bank borrowings - Borrowing d_2
Bank borrowings - Borrowing detail by maturity - (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Borrowings [abstract] | ||
Borrowings | $ 107,607 | $ 158,999 |
Later than one year [member] | ||
Borrowings [abstract] | ||
Borrowings | 102,330 | |
Later than one year and not later than two years | ||
Borrowings [abstract] | ||
Borrowings | 5,277 | |
Credit facilities | ||
Borrowings [abstract] | ||
Borrowings | 27,237 | 58,049 |
Credit facilities | Later than one year [member] | ||
Borrowings [abstract] | ||
Borrowings | 27,237 | |
Receivable Factoring Facility | ||
Borrowings [abstract] | ||
Borrowings | 74,844 | |
Receivable Factoring Facility | Later than one year [member] | ||
Borrowings [abstract] | ||
Borrowings | 74,844 | |
Other | ||
Borrowings [abstract] | ||
Borrowings | 5,526 | $ 100,950 |
Other | Later than one year [member] | ||
Borrowings [abstract] | ||
Borrowings | 249 | |
Other | Later than one year and not later than two years | ||
Borrowings [abstract] | ||
Borrowings | $ 5,277 |
Leases - Obligations and Maturi
Leases - Obligations and Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Lease liabilities [abstract] | ||
Non-current | $ 16,972 | $ 13,994 |
Current | 8,900 | 8,542 |
Total lease liabilities | 25,872 | 22,536 |
Gross finance lease obligations | 28,641 | 24,072 |
Less: amounts representing finance charge on finance lease | 2,769 | 1,536 |
Present value of minimum lease payments | $ 25,872 | 22,536 |
Ferroatlantica, S.A.U. | ||
Lease liabilities [abstract] | ||
Percentage of interest in subsidiary sold | 100.00% | |
Other leases | ||
Lease liabilities [abstract] | ||
Non-current | $ 16,972 | 13,994 |
Current | 8,900 | 8,542 |
Total lease liabilities | 25,872 | 22,536 |
Not later than one year | ||
Lease liabilities [abstract] | ||
Gross finance lease obligations | 10,161 | 8,836 |
Present value of minimum lease payments | 8,900 | 8,542 |
Later than one year and not later than two years | ||
Lease liabilities [abstract] | ||
Non-current | 6,177 | |
Gross finance lease obligations | 17,569 | 13,488 |
Present value of minimum lease payments | 16,256 | 12,608 |
Later than one year and not later than two years | Other leases | ||
Lease liabilities [abstract] | ||
Non-current | 6,177 | |
Later than two years and not later than three years | ||
Lease liabilities [abstract] | ||
Non-current | 4,319 | |
Later than two years and not later than three years | Other leases | ||
Lease liabilities [abstract] | ||
Non-current | 4,319 | |
Later than three years and not later than four years | ||
Lease liabilities [abstract] | ||
Non-current | 1,287 | |
Later than three years and not later than four years | Other leases | ||
Lease liabilities [abstract] | ||
Non-current | 1,287 | |
Later than four years and not later than five years | ||
Lease liabilities [abstract] | ||
Non-current | 824 | |
Later than four years and not later than five years | Other leases | ||
Lease liabilities [abstract] | ||
Non-current | 824 | |
Later than five years | ||
Lease liabilities [abstract] | ||
Non-current | 1,387 | |
Gross finance lease obligations | 911 | 1,748 |
Present value of minimum lease payments | $ 716 | 1,386 |
Later than five years | Other leases | ||
Lease liabilities [abstract] | ||
Non-current | $ 1,387 |
Leases - IFRS 16 Impact (Detail
Leases - IFRS 16 Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | |||
Weighted average discount rate | 5.50% | ||
Movement In Lease Liabilities [Roll Forward] | |||
Balance at December 31, 2019 | $ (25,872) | ||
Additions | (5,471) | ||
Disposals and other | 102 | ||
Interest | (1,358) | $ (1,972) | $ (119) |
Lease payments | 11,673 | ||
Exchange differences | (1,610) | ||
Balance at December 31, 2020 | $ (22,536) | $ (25,872) |
Leases - Financial position (De
Leases - Financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Non-current lease liabilities | $ (13,994) | $ (16,972) |
Current lease liabilities | (8,542) | $ (8,900) |
Accumulated depreciation and amortisation | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Noncurrent assets | (22,498) | |
Land and buildings | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Noncurrent assets | 17,588 | |
Property, plant & equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Noncurrent assets | $ 24,446 |
Leases - Income statement and c
Leases - Income statement and cash flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Leases | ||||
Depreciation, right-of-use assets | $ 10,112 | |||
Interest expense on lease liabilities | 1,358 | $ 1,972 | $ 119 | |
Currency translation gains on lease liabilities | (1,610) | |||
Currency translation losses on right of use assets | 2,138 | |||
Principal | 10,315 | $ 18,105 | [1] | |
Interest | $ 1,358 | |||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Debt instruments (Details)
Debt instruments (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 21, 2021 | Feb. 15, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instruments | |||||
Amount due for settlement within 12 months | $ 10,888 | $ 10,937 | |||
Amount due for settlement after 12 months | 346,620 | 344,014 | |||
Total debt instruments | 357,508 | 354,951 | |||
Senior Notes due 2022 | |||||
Debt Instruments | |||||
Principal amount | $ 350,000 | 350,000 | 350,000 | ||
Unamortised issuance costs | (3,380) | (5,986) | |||
Accrued coupon interest | 10,888 | 10,937 | |||
Issuance costs | $ 12,116 | ||||
Amount due for settlement within 12 months | 10,888 | 10,937 | |||
Amount due for settlement after 12 months | 346,620 | 344,014 | |||
Total debt instruments | $ 357,508 | 354,951 | |||
Fixed Interest Rate | 9.375% | ||||
Redemption price of notes | 109.375% | ||||
Redemption price of notes at change of control | 101.00% | 101.00% | |||
Fair value of notes | $ 268,538 | $ 219,118 | |||
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% | 54.00% | |||
Agreement in Principle on the Terms of Financing Proposal | |||||
Debt Instruments | |||||
Percentage of noteholders entered into lock up agreement | 96.00% | 95.92% |
Other financial Liabilities (De
Other financial Liabilities (Details) € in Thousands, $ in Thousands | Sep. 08, 2016installment | Apr. 30, 2018EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | [1] | Dec. 31, 2018USD ($) | [1] | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Sep. 08, 2016item | Sep. 08, 2016agreement | Sep. 08, 2016EUR (€) |
Categories of financial liabilities [abstract] | ||||||||||||||
Non-Current | $ 29,094 | $ 43,157 | ||||||||||||
Current | 34,802 | 23,382 | ||||||||||||
Total | 63,896 | 66,539 | ||||||||||||
Financial Loans With Governments Agencies [Abstract] | ||||||||||||||
Repayment of debt | $ 235,296 | $ 329,501 | $ 106,514 | |||||||||||
Financial Loans With Governments Agencies | ||||||||||||||
Categories of financial liabilities [abstract] | ||||||||||||||
Non-Current | 29,094 | 33,557 | ||||||||||||
Current | 34,802 | 23,382 | ||||||||||||
Total | 63,896 | 56,939 | ||||||||||||
Derivatives | ||||||||||||||
Categories of financial liabilities [abstract] | ||||||||||||||
Non-Current | 9,600 | |||||||||||||
Total | 9,600 | |||||||||||||
REINDUS Loan | ||||||||||||||
Financial Loans With Governments Agencies [Abstract] | ||||||||||||||
Financial liabilities, at fair value | $ 57,366 | |||||||||||||
Ferroatlantica, S.A.U. | Financial Loans With Governments Agencies | ||||||||||||||
Financial Loans With Governments Agencies [Abstract] | ||||||||||||||
Number of loan agreements | 2 | 2 | ||||||||||||
Interest rate (as a percent) | 3.55% | 3.55% | ||||||||||||
Ferroatlantica, S.A.U. | Loan Number 1 | ||||||||||||||
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 | |||||||||||||
Amortized cost | € 44,824 | $ 55,004 | € 44,765 | $ 50,289 | ||||||||||
Ferroatlantica, S.A.U. | Loan Number 2 | ||||||||||||||
Financial Loans With Governments Agencies [Abstract] | ||||||||||||||
Loans received | € | € 26,909 | |||||||||||||
Repayment of debt | € | € 26,909 | |||||||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Other financial Liabilities - D
Other financial Liabilities - Derivative financial instruments (Details) € in Thousands, $ in Thousands | May 12, 2017EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 12, 2017USD ($) | Feb. 15, 2017USD ($) |
Derivatives | ||||||
Other financial liabilities | ||||||
Nominal Amount | $ 9,600 | |||||
Cross currency swap | ||||||
Other financial liabilities | ||||||
Nominal Amount | € 176,638 | $ 42,500 | $ 192,500 | |||
Market value | 0 | 9,600 | ||||
Cash receipts from swap | $ 3,608 | |||||
Foreign Currency Swaps | ||||||
Interest receivable (as a percent) | 9.375% | |||||
Fixed Interest Rate | 8.062% | 8.062% | ||||
Income (Expense) recorded in financial derivative loss | $ 3,164 | 2,736 | ||||
Cash flow hedges | Cross currency swap | ||||||
Foreign Currency Swaps | ||||||
Percentage of derivative designated as a hedge | 77.00% | |||||
Gain on change in fair value of hedged item used as basis for recognising hedge ineffectiveness | $ 11,161 | |||||
Balance of CCS remained in the valuation adjustment reserve | (2,226) | |||||
Cash flow hedges | Cross currency swap | Exchange differences | ||||||
Foreign Currency Swaps | ||||||
Gain transferred from valuation adjustment reserve to income statement | 5,090 | 2,874 | ||||
Cash flow hedges | Cross currency swap | Finance costs | ||||||
Foreign Currency Swaps | ||||||
Gain transferred from valuation adjustment reserve to income statement | 429 | 1,639 | ||||
Derivatives designated as hedging instruments | Cross currency swap | ||||||
Other financial liabilities | ||||||
Nominal Amount | 7,481 | |||||
Derivatives designated as hedging instruments | Cash flow hedges | Cross currency swap | ||||||
Foreign Currency Swaps | ||||||
Gain recognized in other comprehensive income | 11,161 | 9,663 | ||||
Derivatives not designated as hedging instruments | Cross currency swap | ||||||
Other financial liabilities | ||||||
Nominal Amount | 2,119 | |||||
Derivatives not designated as hedging instruments | Cash flow hedges | Cross currency swap | ||||||
Foreign Currency Swaps | ||||||
Gain (loss) recognised in profit or loss | 3,168 | $ 2,729 | ||||
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 | Cross currency swap | ||||||
Other financial liabilities | ||||||
Nominal Amount | $ 150,000 | |||||
Ferroatlantica, S.A.U. | ||||||
Foreign Currency Swaps | ||||||
Percentage of interest in subsidiary sold | 100.00% |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other payables. | ||
Payable to suppliers | $ 147,512 | $ 189,092 |
Trade notes and bills payable | 1,689 | 137 |
Total | $ 149,201 | $ 189,229 |
Other liabilities - Other Curre
Other liabilities - Other Current and Non-current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other liabilities | ||
Payable to non-current asset suppliers - Non-Current | $ 130 | $ 182 |
Payable to non-current asset suppliers - Current | 2,633 | 6,989 |
Payable to non-current asset suppliers | 2,763 | 7,171 |
Guarantees and deposits - non-current | 17 | 18 |
Guarantees and deposits - current | 266 | |
Guarantees and deposits | 283 | 18 |
Remuneration payable - Non- current | 20 | 38 |
Remuneration payable - current | 27,552 | 33,003 |
Remuneration payable | 27,572 | 33,041 |
Tax payables - current | 23,177 | 22,459 |
Total tax payables | 23,177 | 22,459 |
Contingent consideration - non -current | 14,859 | 20,338 |
Contingent consideration - current | 1,773 | 1,626 |
Contingent consideration | 16,632 | 21,964 |
Other liabilities - non-current | 1,741 | 5,330 |
Other liabilities - current | 10,592 | 32,352 |
Other liabilities | 12,333 | 37,682 |
Total other non current liabilities | 16,767 | 25,906 |
Total other current liabilities | 65,993 | 96,429 |
Total other liabilities | $ 82,760 | $ 122,335 |
Other liabilities - Tax Payable
Other liabilities - Tax Payables and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other liabilities | ||
VAT, current | $ 4,061 | $ 8,234 |
VAT | 4,061 | 8,234 |
Accrued social security taxes payable, current | 13,266 | 7,781 |
Accrued social security taxes payable | 13,266 | 7,781 |
Personal income tax withholding payable, current | 1,111 | 1,351 |
Personal income tax withholding payable | 1,111 | 1,351 |
Other tax payables, current | 4,739 | 5,093 |
Other tax payables | 4,739 | 5,093 |
Total current tax payables | 23,177 | 22,459 |
Total tax payables | $ 23,177 | $ 22,459 |
Other liabilities - Stock Optio
Other liabilities - Stock Options (Details) - Ferroglobe PLC Equity Incentive Plan | May 29, 2016 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Term of service condition | 3 years | 3 years | |
Outstanding at beginning of the period | 2,175,853 | 1,025,042 | |
Granted during the period | 882,850 | 1,184,441 | |
Exercised during the period | (150,494) | ||
Expired/forfeited during the period | shares | (33,630) | ||
Outstanding at end of the period | 2,908,209 | 2,175,853 | |
Exercisable as of December 31, 2020 | 456,968 |
Other liabilities - Share-based
Other liabilities - Share-based payment arrangements (Details) - Ferroglobe PLC Equity Incentive Plan | Dec. 16, 2020USD ($)Y$ / shares | Mar. 13, 2019USD ($)Y$ / shares | Jun. 14, 2018USD ($)$ / shares | Mar. 21, 2018USD ($)Y$ / shares | Jun. 20, 2017USD ($)Y$ / shares | Jun. 01, 2017USD ($)Y$ / shares | Nov. 24, 2016USD ($)$ / shares | May 29, 2016 | Dec. 31, 2020USD ($)EquityInstrumentsY$ / sharesshares | Dec. 31, 2019USD ($)EquityInstrumentsY$ / sharesshares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 2,908,209 | 2,175,853 | ||||||||
Shares subject to performance conditions Outstanding | shares | 2,828,681 | 2,026,460 | ||||||||
Service condition | 3 years | 3 years | ||||||||
Percentage of share price | 40.00% | |||||||||
Percentage of operating (loss) profit | 30.00% | |||||||||
Percentage of net cash flow | 20.00% | |||||||||
Number of options with no performance obligations | 79,528 | 149,393 | ||||||||
Weighted average fair value of share options granted | $ 1.23 | $ 2.69 | $ 22.56 | $ 15.90 | $ 16.77 | |||||
Grant date share price | $ / shares | $ 1.61 | $ 2.44 | $ 15.19 | $ 10.50 | $ 10.96 | |||||
Exercise price | $ / shares | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1.23 | $ 2.69 | |||
Expected volatility | 91.30% | 53.54% | 49.86% | 43.15% | 43.09% | |||||
Option life | Y | 4 | 3 | 3 | 3 | 3 | 11.93 | 8.52 | |||
Risk-free interest rate | 0.27% | 2.40% | 2.48% | 1.52% | 1.44% | |||||
Performance period remaining at grant date | 4 years 15 days | 2 years 9 months 22 days | 2 years 9 months 11 days | 2 years 6 months 11 days | 2 years 6 months 29 days | 3 years | ||||
Company TSR at grant date | (48.10%) | 2.10% | (0.30%) | 4.00% | ||||||
Median comparator group TSR at grant date | (4.80%) | (6.20%) | (7.20%) | (3.70%) | ||||||
Median index TSR at grant date | 10.90% | (8.40%) | 0.60% | 4.80% | ||||||
Share based compensation expense | $ 2,017,000 | $ 4,879,000 | ||||||||
Grant date of December 16, 2020 | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 882,850 | |||||||||
Weighted average fair value of share options granted | $ 1.23 | |||||||||
Exercise price | $ / shares | ||||||||||
Grant date of March 13, 2019 | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 1,184,441 | 1,184,441 | ||||||||
Weighted average fair value of share options granted | $ 2.69 | |||||||||
Exercise price | $ / shares | ||||||||||
Grant date of June 14, 2018 | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 78,694 | 129,930 | ||||||||
Weighted average fair value of share options granted | $ 9.34 | |||||||||
Exercise price | $ / shares | ||||||||||
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 | 287,080 | ||||||||
Weighted average fair value of share options granted | $ 22.56 | |||||||||
Exercise price | $ / shares | ||||||||||
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 | ||||||||
Weighted average fair value of share options granted | $ 15.90 | |||||||||
Exercise price | $ / shares | ||||||||||
Grant date of June 1, 2017 | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 834 | 19,463 | ||||||||
Weighted average fair value of share options granted | $ 10.96 | |||||||||
Exercise price | $ / shares | ||||||||||
Grant date of June 1, 2017 | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 346,215 | 382,002 | ||||||||
Weighted average fair value of share options granted | $ 16.77 | |||||||||
Exercise price | $ / shares | ||||||||||
Grant date of November 24, 2016 | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of instruments granted | EquityInstruments | 110,753 | 155,595 | ||||||||
Weighted average fair value of share options granted | $ 16.66 | |||||||||
Exercise price | $ / shares | ||||||||||
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% | |||||||||
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) - Ferroglobe Stock Option Replacement Awards | 12 Months Ended | |||
Dec. 31, 2020USD ($)EquityInstruments$ / sharesshares | Dec. 31, 2019USD ($)EquityInstruments$ / sharesshares | Dec. 31, 2018USD ($)EquityInstruments$ / shares | Dec. 23, 2015 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share ratio exchanged upon business combination | 1 | |||
Outstanding at beginning of the period | EquityInstruments | 25,000 | 103,630 | ||
Exercised during the period | $ | 0 | 0 | ||
Expired/forfeited during the period | shares | (25,000) | (78,630) | ||
Outstanding at end of the period | EquityInstruments | 25,000 | 103,630 | ||
Weighted average exercise price at the beginning of the period | $ / shares | $ 16.70 | $ 19.40 | ||
Weighted average exercise price, expired/forfeited | $ / shares | 20.25 | |||
Weighted average exercise price at the end of the period | $ / shares | 16.70 | $ 16.70 | $ 19.40 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ / shares | $ 16.70 | |||
Weighted average remaining contractual life of outstanding share options | 1 month 28 days | 1 month 28 days | 5 months 9 days | |
Weighted average remaining contractual term, exercisable | 1 month 28 days | |||
Aggregate intrinsic value of options outstanding | $ | $ 1,774,000 | |||
Number of options vested | shares | 0 | 25,000 | ||
Number of options unvested | shares | 0 | 0 | ||
Share based compensation expense | $ | $ 0 | $ 0 | ||
Payment settled for equity shares | $ | $ 12,000 |
Other liabilities - RSUs and SA
Other liabilities - RSUs and SARs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted stock units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting life of share-based awards | 3 years | |
Share options exercised | 0 | 0 |
Outstanding | 26,268,000 | 26,268,000 |
Share based compensation expense | $ 18,000 | $ 17,000 |
Share based compensation expense, after tax | 11,000 | |
Current liability from share based payments | $ 43,000 | $ 26,000 |
Stock appreciation rights | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting life of share-based awards | 3 years | |
Vesting percentage of share-based awards | 33.33% | |
Cancelled | 443,511 | 150,000 |
Exercised | 0 | 0 |
Outstanding | 16,510 | 460,021 |
Share based compensation expense | $ 1,000 | $ 61,000 |
Share based compensation expense, after tax | 1,000 | 39,000 |
Current liability from share based payments | $ 0 | $ 2,000 |
Other liabilities - Contingent
Other liabilities - Contingent Consideration (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Kintuk | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Percentage of equity interests acquired | 100.00% | ||
Contingent consideration | $ 26,222 | $ 16,632 | $ 21,965 |
Kintuk | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Contingent consideration | 0 | ||
Kintuk | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Contingent consideration | $ 60,000 | ||
Ferroglobe Mangan Norge and Ferroglobe Manganese France | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Period for contingent consideration | 8 years 6 months | ||
Ferroglobe Mangan Norge and Ferroglobe Manganese France | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Contingent consideration arrangements | $ 0 | ||
Average simulated revenues | 135,868 | 157,276 | |
Ferroglobe Mangan Norge and Ferroglobe Manganese France | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Contingent consideration arrangements | $ 60,000 | ||
Average simulated revenues | $ 262,441 | $ 317,507 | |
Ferroglobe Mangan Norge | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Discount rates (as a percent) | 11.50% | 12.50% | 11.50% |
Ferroglobe Manganese France | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Discount rates (as a percent) | 11.00% | 11.50% | 11.00% |
Tax matters - Components of cur
Tax matters - Components of current and deferred tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Tax matters | ||||
Current income tax charge | $ 4,307 | $ 2,133 | $ 22,795 | |
Adjustments in current income tax in respect of prior period years | 901 | 4,753 | (865) | |
Adjustments in current income tax due to discounted operations | (3,776) | |||
Total | 5,208 | 6,886 | 18,154 | |
Origination and reversal of temporary differences | (20,961) | (48,618) | 2,500 | |
Impact of tax rate changes | (46) | 98 | ||
Impairment of deferred tax assets | 37,660 | |||
Adjustments in deferred tax in respect of prior years | 33 | 237 | (293) | |
Total | 16,732 | (48,427) | 2,305 | |
Income tax expense (benefit) | $ 21,939 | $ (41,541) | $ 20,459 | [1] |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Tax matters - Statutory tax rat
Tax matters - Statutory tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Tax matters | ||||
Accounting profit/(loss) before income tax | $ (222,420) | $ (411,818) | $ 35,568 | |
Adjustment for discontinued operations | (5,399) | (28,135) | ||
Accounting profit/(loss) before income tax | $ (227,819) | $ (439,954) | ||
Effective tax rate | 24.00% | 24.00% | 49.00% | |
At weighted effective tax rate of 24% (2018: 49% and 2017: 43%) | $ (54,294) | $ (105,369) | $ 17,409 | |
Non-taxable income/(expenses) | (17,020) | (14,856) | ||
Non-deductible expenses | 6,779 | 49,390 | 25,079 | |
Movements in unprovided deferred tax | 4,604 | 7,620 | ||
Differing territorial tax rates | 3,064 | (3,987) | (2,262) | |
Adjustments in respect of prior periods | (50) | 2,160 | (1,038) | |
Other items | 70,123 | 20,407 | (4,936) | |
Elimination of effect of interest in joint ventures | 899 | 917 | 1,079 | |
Other permanent differences | (389) | 9,234 | 1,242 | |
Incentives and deductions | (2,456) | (1,302) | (6,944) | |
US State taxes | (1,737) | (824) | 1,235 | |
Taxable capital gains | 249 | 607 | ||
Adjustments in current income tax due to discounted operations | (3,776) | |||
Income tax expense (benefit) | $ 21,939 | $ (41,541) | $ 20,459 | [1] |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Tax matters - Tax Cuts and Jobs
Tax matters - Tax Cuts and Jobs Act (Details) - USD ($) $ in Millions | Jan. 01, 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, 2020 | Dec. 31, 2019 |
Current tax assets | ||
Income tax receivable | $ 12,072 | $ 27,930 |
Current tax liabilities | ||
Income tax payable | 2,538 | 3,048 |
Net tax assets | $ 9,534 | $ 24,882 |
Tax matters - Deferred tax asse
Tax matters - Deferred tax assets and liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Deferred tax assets and liabilities | |
Opening balance | $ (14,506) |
Recognised in P&L | 20,928 |
Impairment of deferred tax assets | (37,660) |
Reclassifications | (580) |
Exchange Differences | 2,878 |
Closing balance | (27,781) |
Spain | |
Deferred tax assets and liabilities | |
Write-off of deferred tax assets during the period | 18,896 |
France | |
Deferred tax assets and liabilities | |
Write-off of deferred tax assets during the period | 15,826 |
South Africa | |
Deferred tax assets and liabilities | |
Write-off of deferred tax assets during the period | 1,044 |
Argentina | |
Deferred tax assets and liabilities | |
Write-off of deferred tax assets during the period | 1,894 |
Intangible assets | |
Deferred tax assets and liabilities | |
Opening balance | (414) |
Recognised in P&L | (44) |
Exchange Differences | 0 |
Closing balance | (458) |
Biological assets | |
Deferred tax assets and liabilities | |
Opening balance | (1) |
Closing balance | (1) |
Provisions | |
Deferred tax assets and liabilities | |
Opening balance | 15,928 |
Recognised in P&L | 2,757 |
Impairment of deferred tax assets | (3,357) |
Reclassifications | 1,655 |
Exchange Differences | 562 |
Closing balance | 14,235 |
Property, plant & equipment | |
Deferred tax assets and liabilities | |
Opening balance | (64,697) |
Recognised in P&L | 16,094 |
Impairment of deferred tax assets | (219) |
Reclassifications | (434) |
Exchange Differences | 125 |
Closing balance | (48,263) |
Inventories | |
Deferred tax assets and liabilities | |
Opening balance | (2,542) |
Recognised in P&L | 639 |
Reclassifications | (1,993) |
Exchange Differences | (26) |
Closing balance | 64 |
Hedging instruments | |
Deferred tax assets and liabilities | |
Exchange Differences | 0 |
Closing balance | 0 |
Tax losses | |
Deferred tax assets and liabilities | |
Opening balance | 41,728 |
Recognised in P&L | (1,073) |
Impairment of deferred tax assets | (33,162) |
Reclassifications | 154 |
Exchange Differences | 2,187 |
Closing balance | 9,525 |
Incentives and credits | |
Deferred tax assets and liabilities | |
Opening balance | 2,139 |
Impairment of deferred tax assets | (921) |
Reclassifications | (169) |
Exchange Differences | 40 |
Closing balance | 1,426 |
Partnership Interest | |
Deferred tax assets and liabilities | |
Opening balance | (9,890) |
Recognised in P&L | 1,647 |
Reclassifications | 740 |
Closing balance | (8,983) |
Other | |
Deferred tax assets and liabilities | |
Opening balance | 3,243 |
Recognised in P&L | 909 |
Reclassifications | (533) |
Exchange Differences | (10) |
Closing balance | $ 4,674 |
Tax matters - Significant compo
Tax matters - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 31,528 | $ 68,404 |
Deferred tax liabilities | (59,309) | (82,910) |
Net Total Deferred Tax (Liability) | (27,781) | (14,506) |
Total | $ 628,826 | 516,347 |
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 | $ 513,189 | 428,665 |
Unused tax credits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total | 8,685 | 7,949 |
Unrecognised deductible temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total | $ 106,952 | $ 79,733 |
Related party transactions an_3
Related party transactions and balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transactions and balances | |||
Receivables, Non Current | $ 2,454 | $ 2,247 | |
Receivables, Current | 3,076 | 2,955 | |
Payables, Current | 3,196 | 4,830 | |
Sales and Operating Income | 144 | $ 11,894 | |
Cost of Sales | 39,901 | 65,407 | 99,939 |
Other Operating Expenses | 4,208 | 7,551 | 5,278 |
Finance Income | 16 | 68 | 72 |
Inmobiliaria Espacio, S.A. | |||
Related party transactions and balances | |||
Receivables, Current | $ 3,078 | 2,953 | |
Short term loan maturity | P1Y | ||
Other Operating Expenses | 1 | 6 | |
Finance Income | $ 16 | 68 | 72 |
Villar Mir Energia, S.L.U. | |||
Related party transactions and balances | |||
Receivables, Non Current | 2,454 | 2,247 | |
Payables, Current | 2,458 | 2,022 | |
Cost of Sales | 39,900 | 65,406 | 99,939 |
Other Operating Expenses | 647 | 681 | 803 |
Villar Mir Energia, S.L.U. | Ferroatlántica de Boo, S.L.U. | |||
Related party transactions and balances | |||
Obligation for purchase of energy plus service charge | 16,923 | ||
Villar Mir Energia, S.L.U. | Ferroatlántica de Sabón, S.L.U. | |||
Related party transactions and balances | |||
Obligation for purchase of energy plus service charge | 14,334 | ||
Villar Mir Energia, S.L.U. | Ferroatlántica del Cinca, S.L. | |||
Related party transactions and balances | |||
Obligation for purchase of energy plus service charge | 8,643 | ||
Espacio Information Technology, S.A.U. | |||
Related party transactions and balances | |||
Payables, Current | 701 | 2,651 | |
Other Operating Expenses | 3,171 | 3,566 | 4,226 |
Energya VM Generacion, S.L | |||
Related party transactions and balances | |||
Sales and Operating Income | 1 | 11,874 | |
Other Operating Expenses | 1 | 48 | |
Energya VM Generacion, S.L | Grupo FerroAtlantica, S.A.U | |||
Related party transactions and balances | |||
Sales and Operating Income | 31,898 | ||
Energya VM Generacion, S.L | Hidro-Nitro Espanola, S.A. - Other segments - Energy | |||
Related party transactions and balances | |||
Sales and Operating Income | 11,874 | ||
Energya VM Gestion, S.L | |||
Related party transactions and balances | |||
Cost of Sales | 1 | ||
Other Operating Expenses | 79 | 89 | 76 |
Aurinka | |||
Related party transactions and balances | |||
Cost of Sales | 1 | ||
Other Operating Expenses | 308 | 3,206 | |
Aurinka | Grupo FerroAtlantica, S.A.U | |||
Related party transactions and balances | |||
Other Operating Expenses | 2,800 | ||
Other related parties | |||
Related party transactions and balances | |||
Receivables, Current | (2) | 2 | |
Payables, Current | 37 | 157 | |
Sales and Operating Income | 143 | 20 | |
Other Operating Expenses | $ 3 | 7 | 119 |
Discontinued operations | |||
Related party transactions and balances | |||
Sales and Operating Income | 12,635 | 31,898 | |
Cost of Sales | 66 | 42 | |
Other Operating Expenses | 490 | 931 | |
Discontinued operations | Villar Mir Energia, S.L.U. | |||
Related party transactions and balances | |||
Other Operating Expenses | 373 | 664 | |
Discontinued operations | Energya VM Generacion, S.L | |||
Related party transactions and balances | |||
Sales and Operating Income | 12,635 | 31,898 | |
Other Operating Expenses | 117 | 224 | |
Discontinued operations | Energya VM Gestion, S.L | |||
Related party transactions and balances | |||
Cost of Sales | $ 66 | 42 | |
Other Operating Expenses | 43 | ||
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 |
Guarantee commitments to thir_2
Guarantee commitments to third parties and contingent liabilities (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2021EUR (€) | Dec. 31, 2020USD ($)caseemployee | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Guarantee commitments to third parties and other contingent assets and liabilities | |||||
Bank guarantees commitments to third parties | $ 19,969 | $ 17,260 | |||
Statutory maximum penalty per day per violation of standard provisions | $ 93,750 | ||||
Cee-Dumbria Hydroelectric Plants | |||||
Guarantee commitments to third parties and other contingent assets and liabilities | |||||
Accrued amount | € 25,927 | 31,815 | |||
Stamp Tax Litigation | |||||
Guarantee commitments to third parties and other contingent assets and liabilities | |||||
Loss contingency tax reassessment | € | € 1,400 | ||||
Loss contingency tax penalty | € | € 600 | ||||
Stamp Tax Litigation | Minimum | |||||
Guarantee commitments to third parties and other contingent assets and liabilities | |||||
Loss contingency period | 2 years | ||||
Stamp Tax Litigation | Maximum | |||||
Guarantee commitments to third parties and other contingent assets and liabilities | |||||
Loss contingency period | 4 years | ||||
Asbestos-related claims | |||||
Guarantee commitments to third parties and other contingent assets and liabilities | |||||
Number of employees | employee | 100 | ||||
Number of grave cases | case | 3 | ||||
Bond to guarantee civil financial responsibility | $ 1,080 |
Income and expenses - Sale by S
Income and expenses - Sale by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Sales by segment | ||||
Sales | $ 1,144,434 | $ 1,615,222 | $ 2,242,002 | [1] |
Eliminations | ||||
Sales by segment | ||||
Sales | (48,373) | (165,293) | (187,305) | |
Electrometallurgy - North America | Operating segments | ||||
Sales by segment | ||||
Sales | 425,277 | 551,500 | 710,716 | |
Electrometallurgy - Europe | Operating segments | ||||
Sales by segment | ||||
Sales | 661,624 | 1,049,576 | 1,447,973 | |
Electrometallurgy - South Africa | Operating segments | ||||
Sales by segment | ||||
Sales | 80,572 | 136,292 | 208,543 | |
Other segments | Operating segments | ||||
Sales by segment | ||||
Sales | $ 25,334 | $ 43,147 | $ 62,075 | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Income and expenses - Sale by G
Income and expenses - Sale by Geographical Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Sales by Geographical Area | ||||
Sales | $ 1,144,434 | $ 1,615,222 | $ 2,242,002 | [1] |
Spain | ||||
Sales by Geographical Area | ||||
Sales | 133,370 | 183,969 | 242,733 | |
Germany | ||||
Sales by Geographical Area | ||||
Sales | 191,107 | 249,911 | 359,737 | |
Italy | ||||
Sales by Geographical Area | ||||
Sales | 42,067 | 99,796 | 138,796 | |
Other EU Countries | ||||
Sales by Geographical Area | ||||
Sales | 167,934 | 329,988 | 487,340 | |
USA | ||||
Sales by Geographical Area | ||||
Sales | 404,633 | 533,764 | 674,243 | |
Rest of World | ||||
Sales by Geographical Area | ||||
Sales | $ 205,323 | $ 217,794 | $ 339,153 | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Income and expenses - Staff Cos
Income and expenses - Staff Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Staff costs | ||||
Average number of employees | 3,317 | 3,736 | 4,480 | |
Wages, salaries and similar expenses | $ 161,957 | $ 208,317 | $ 263,794 | |
Pension plan contributions | 3,641 | 12,787 | 12,084 | |
Employee benefit costs | 49,184 | 63,925 | 62,984 | |
Staff costs | $ 214,782 | $ 285,029 | $ 338,862 | [1] |
Directors | ||||
Staff costs | ||||
Average number of employees | 6 | 8 | 9 | |
Key management personnel | ||||
Staff costs | ||||
Average number of employees | 291 | 345 | 315 | |
Employees | ||||
Staff costs | ||||
Average number of employees | 3,020 | 3,383 | 4,156 | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Income and expenses - Depreciat
Income and expenses - Depreciation and Amortization charges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Depreciation and amortization charges, operating allowances and write-downs | ||||
Amortization of intangible assets (Note 8) | $ 7,183 | $ 7,305 | $ 9,312 | |
Depreciation of property, plant and equipment (Note 9) | 101,006 | 112,824 | 104,532 | |
Other write-downs and reversals | 65 | (7) | ||
Depreciation and amortization charges, operating allowances and write-downs | $ 108,189 | $ 120,194 | $ 113,837 | [1] |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Income and expenses - Finance I
Income and expenses - Finance Income and Finance Costs (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finance income | |||||
Finance income of related parties (Note 23) | $ 16 | $ 68 | $ 72 | ||
Other finance income | 161 | 1,312 | 4,786 | ||
Finance income | 177 | 1,380 | 4,858 | [1] | |
Finance costs | |||||
Interest on debt instruments | 34,989 | 33,705 | 34,188 | ||
Interest on loans and credit facilities | 8,404 | 15,533 | 8,249 | ||
Interest on note and bill discounting | 363 | 373 | 205 | ||
Interest expense on lease liabilities | 1,358 | 1,972 | 119 | ||
Trade receivables securitization expense (Note 10) | $ 7,591 | 15,044 | 9,192 | 11,708 | |
Other finance costs | 6,810 | 2,450 | 2,597 | ||
Finance costs | $ 66,968 | $ 63,225 | $ 57,066 | [1] | |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Income and expenses - Impairmen
Income and expenses - Impairment Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Impairment losses | ||||
Impairment charge related to goodwill | $ 174,008 | |||
Impairment of intangible assets | 211 | $ 16,073 | ||
Impairment of property, plant and equipment | $ 71,929 | 1,224 | 42,846 | |
Impairment of property, plant and equipment | 71,929 | |||
Impairment of non-current financial assets | 456 | |||
Impairment of other | 1,415 | |||
Impairment losses | 73,344 | 175,899 | 58,919 | [1] |
Net (loss) gain due to changes in the value of assets | ||||
(Increase) decrease in fair value of biological assets | 530 | 7,615 | ||
Other loss / (profit) | (158) | 1,044 | 8 | |
Net gains/losses due to changes in the value of assets | (158) | 1,574 | 7,623 | [1] |
(Loss) gain on disposal of non-current assets | ||||
Gain on disposal of intangible assets | (1,692) | |||
Gain on disposal of property, plant and equipment | (473) | (353) | (2,950) | |
Loss on disposal of Property, plant and equipment | 873 | 1,761 | 162 | |
Gain on disposal of other non-current assets | (6) | (29) | ||
Loss (gain) on disposal of subsidiary | 821 | (11,747) | ||
Total | $ (1,292) | $ 2,223 | $ (14,564) | [1] |
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Income and expenses - Gains and
Income and expenses - Gains and Losses (Details) - USD ($) $ in Thousands | Sep. 19, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Gain on disposal of intangible assets | $ 1,692 | ||||
Gain (loss) on disposal | $ (821) | $ 11,747 | |||
Ultracore Polska Zoo | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Gain (loss) on disposal | $ (821) | ||||
Hidro Nitro Española S.A. | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Cash proceeds | $ 20,533 | ||||
Gain (loss) on disposal | $ 11,747 |
Remuneration of key managemen_3
Remuneration of key management personnel (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Remuneration and other benefits paid to key management personnel | |||
Fixed remuneration | $ 5,086 | $ 5,404 | $ 6,068 |
Variable remuneration | 756 | 254 | |
Contributions to pension plans and insurance policies | 319 | 350 | 379 |
Share-based compensation | 2,017 | 4,882 | 1,777 |
Termination benefits | 1,886 | 1,147 | 2,284 |
Other remuneration | 9 | 7 | 23 |
Total | 10,073 | 12,044 | 10,531 |
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, $ in Thousands | Oct. 02, 2020USD ($) | Feb. 06, 2020USD ($) | Oct. 11, 2019USD ($) | Feb. 15, 2017USD ($) | Sep. 08, 2016installment | Mar. 31, 2020USD ($) | Apr. 30, 2018EUR (€) | Feb. 28, 2017USD ($) | Sep. 04, 2019USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | [1] | Dec. 31, 2018USD ($) | [1] | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | May 12, 2017EUR (€) | May 12, 2017USD ($) | Sep. 08, 2016item | Sep. 08, 2016agreement | Sep. 08, 2016EUR (€) |
Financial risk management | |||||||||||||||||||||||
Principal amount - Gross | $ 5,277 | $ 144,388 | |||||||||||||||||||||
Borrowings | 107,607 | 158,999 | |||||||||||||||||||||
Repayment of debt | $ 235,296 | $ 329,501 | $ 106,514 | ||||||||||||||||||||
Credit facilities | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Principal amount | 100,000 | 100,000 | |||||||||||||||||||||
Principal amount - Gross | 31,155 | 62,835 | |||||||||||||||||||||
Borrowings | 27,237 | 58,049 | |||||||||||||||||||||
ABL Revolver | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Borrowings | $ 6,000 | 38,000 | |||||||||||||||||||||
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% | 101.00% | 101.00% | ||||||||||||||||||||
Senior Notes due 2022 issued by Ferroglobe PLC | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Principal amount | $ 150,000 | ||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Repayment of debt | $ 134,570 | ||||||||||||||||||||||
Cross currency swap | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Principal amount | 42,500 | € 176,638 | $ 192,500 | ||||||||||||||||||||
Fixed Interest Rate | 8.062% | 8.062% | |||||||||||||||||||||
Cash receipts from futures contracts, forward contracts, option contracts and swap contracts, classified as investing activities | $ 3,608 | ||||||||||||||||||||||
Interest rate risk | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Borrowings | 107,607 | 158,999 | |||||||||||||||||||||
Interest rate risk | Credit facilities | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Principal amount - Gross | 28,168 | 62,835 | |||||||||||||||||||||
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 | ||||||||||||||||||||||
Foreign currency risk | Cross currency swap | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Percentage of Principal and Interest Payments | 55.00% | ||||||||||||||||||||||
Cash receipts from futures contracts, forward contracts, option contracts and swap contracts, classified as investing activities | $ 3,608 | ||||||||||||||||||||||
Liquidity risk | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Cessation of percentage of voting interest which occur in change in control | 100.00% | ||||||||||||||||||||||
Liquidity risk | ABL Revolver | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Principal amount | 100,000 | ||||||||||||||||||||||
Repayment term of revolver | 3 months | 3 months | |||||||||||||||||||||
Borrowings | $ 31,155 | ||||||||||||||||||||||
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% | ||||||||||||||||||||||
Grupo Villar Mir, S.A.U. | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Ownership interest as a percentage | 53.90% | 54.00% | 54.00% | ||||||||||||||||||||
Grupo Villar Mir, S.A.U. | Liquidity risk | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Ownership interest as a percentage | 54.00% | 54.00% | |||||||||||||||||||||
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% | 35.00% | |||||||||||||||||||||
Minimum | Liquidity risk | |||||||||||||||||||||||
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% | ||||||||||||||||||||||
Securitizations | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Trade receivables sold under securitization program | $ 1,127,000 | ||||||||||||||||||||||
Upfront cash consideration | $ 2,808 | ||||||||||||||||||||||
Repayment of debt | € 95,695 | $ 107,657 | |||||||||||||||||||||
Factoring of receivables | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Upfront cash consideration | $ 48,800 | ||||||||||||||||||||||
Restricted cash release | $ 18,000 | ||||||||||||||||||||||
Ferroatlantica, S.A.U. | Financial Loans With Governments Agencies | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Fixed Interest Rate | 3.55% | 3.55% | |||||||||||||||||||||
Number of loan agreements | 2 | 2 | |||||||||||||||||||||
Ferroatlantica, S.A.U. | Loan Number 1 | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Loans received | € | € 44,999 | ||||||||||||||||||||||
Number of loan installments | installment | 7 | ||||||||||||||||||||||
Borrowings Term | 10 years | ||||||||||||||||||||||
Grace period at start of loan | 3 years | ||||||||||||||||||||||
Amortized cost | € 44,824 | $ 55,004 | € 44,765 | $ 50,289 | |||||||||||||||||||
Ferroatlantica, S.A.U. | Loan Number 2 | |||||||||||||||||||||||
Financial risk management | |||||||||||||||||||||||
Loans received | € | € 26,909 | ||||||||||||||||||||||
Repayment of debt | € | € 26,909 | ||||||||||||||||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Financial risk management - Int
Financial risk management - Interest-bearing financial liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial instruments by type of interest rate [line items] | ||
Borrowings | $ 107,607 | $ 158,999 |
Obligations under finance leases | 22,536 | 25,872 |
Debt instruments | 357,508 | 354,951 |
Other financial liabilities | 29,094 | 43,157 |
Interest rate risk | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Borrowings | 107,607 | 158,999 |
Obligations under finance leases | 22,537 | 25,872 |
Debt instruments | 357,508 | 354,951 |
Other financial liabilities | 63,896 | 56,939 |
Interest-bearing financial liabilities | $ 551,548 | 596,761 |
Increase in floating interest rate, Percentage | 1.00% | |
Additional borrowing cost if 1% increase in floating interest rate | $ 1,064 | 2,232 |
Interest rate risk | Fixed rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Debt instruments | 357,508 | 354,951 |
Other financial liabilities | 63,896 | 56,939 |
Interest-bearing financial liabilities | 421,404 | 411,890 |
Interest rate risk | Floating rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Borrowings | 107,607 | 158,999 |
Obligations under finance leases | 22,537 | 25,872 |
Interest-bearing financial liabilities | $ 130,144 | $ 184,871 |
Financial risk management - For
Financial risk management - Foreign currency risk (Details) - Senior Notes due 2022 issued by Ferroglobe PLC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Feb. 15, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Principal amount | $ 150,000 | |
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, 2019 | Dec. 31, 2020 | |
Net undiscounted cash flows | ||
Finance leases | $ 28,641 | $ 24,072 |
Payable to non-current asset suppliers | 7,171 | 2,763 |
Liquidity risk | ||
Net undiscounted cash flows | ||
Bank borrowings | 186,897 | 113,890 |
Finance leases | 28,641 | 24,024 |
Debt instruments | 432,032 | 399,219 |
Financial loans from government agencies | 63,343 | 68,656 |
Derivative financial instruments | (813) | |
Payables to related parties | 4,830 | 3,196 |
Payable to non-current asset suppliers | 7,465 | 2,763 |
Contingent consideration | 33,718 | 25,116 |
Trade and other payables | 189,229 | 149,201 |
Contractual undiscounted payments | 945,342 | 786,065 |
Gross inflows and outflows | ||
Inflows | 237,617 | |
Outflows | (238,430) | |
Net cash flow | (813) | |
Discounted at the applicable interbank rates | (9,600) | |
Not later than one year | ||
Net undiscounted cash flows | ||
Finance leases | 10,161 | 8,836 |
Not later than one year | Liquidity risk | ||
Net undiscounted cash flows | ||
Bank borrowings | 23,743 | 108,613 |
Finance leases | 10,161 | 8,796 |
Debt instruments | 32,813 | 32,813 |
Financial loans from government agencies | 27,311 | 36,672 |
Derivative financial instruments | 2,049 | |
Payables to related parties | 4,830 | 3,196 |
Payable to non-current asset suppliers | 7,283 | 130 |
Contingent consideration | 1,626 | 1,772 |
Trade and other payables | 189,229 | 149,201 |
Contractual undiscounted payments | 299,045 | 341,193 |
Gross inflows and outflows | ||
Inflows | 18,047 | |
Outflows | (15,998) | |
Net cash flow | 2,049 | |
Discounted at the applicable interbank rates | 1,859 | |
Later than one year and not later than two years | ||
Net undiscounted cash flows | ||
Finance leases | 17,569 | 13,488 |
Later than one year and not later than two years | Liquidity risk | ||
Net undiscounted cash flows | ||
Bank borrowings | 163,154 | 5,277 |
Finance leases | 7,356 | 6,350 |
Debt instruments | 32,813 | 366,406 |
Financial loans from government agencies | 10,527 | 7,209 |
Derivative financial instruments | 2,049 | |
Payable to non-current asset suppliers | 182 | 2,633 |
Contingent consideration | 5,006 | 4,175 |
Contractual undiscounted payments | 221,087 | 392,050 |
Gross inflows and outflows | ||
Inflows | 18,047 | |
Outflows | (15,998) | |
Net cash flow | 2,049 | |
Discounted at the applicable interbank rates | 1,437 | |
Later than two years and not later than five years [member] | Liquidity risk | ||
Net undiscounted cash flows | ||
Finance leases | 10,213 | 7,130 |
Debt instruments | 366,406 | |
Financial loans from government agencies | 15,992 | 18,274 |
Derivative financial instruments | (4,911) | |
Contingent consideration | 18,170 | 15,892 |
Contractual undiscounted payments | 405,870 | 41,296 |
Gross inflows and outflows | ||
Inflows | 201,523 | |
Outflows | (206,434) | |
Net cash flow | (4,911) | |
Discounted at the applicable interbank rates | (12,896) | |
Later than five years | ||
Net undiscounted cash flows | ||
Finance leases | 911 | 1,748 |
Later than five years | Liquidity risk | ||
Net undiscounted cash flows | ||
Finance leases | 911 | 1,748 |
Financial loans from government agencies | 9,513 | 6,501 |
Contingent consideration | 8,916 | 3,277 |
Contractual undiscounted payments | $ 19,340 | $ 11,526 |
Financial risk management - Cha
Financial risk management - Changes in liabilities (Details) - USD ($) $ in Thousands | Nov. 07, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Changes in liabilities arising from financing activities [abstract] | |||||||
Beginning of period | $ 606,362 | $ 645,389 | |||||
Changes from financing cash flows | (106,862) | (197,374) | |||||
Effect of changes in foreign exchange rates | 16,682 | (5,059) | |||||
Changes in fair value | (14,329) | (12,770) | |||||
Change in scope of consolidation | 112,226 | ||||||
Other changes | 49,694 | 63,950 | |||||
End of period | 551,547 | 606,362 | $ 645,389 | ||||
Dividends paid | [1] | (20,642) | |||||
Proceeds from stock option exercises | [1] | 240 | |||||
Other amounts paid due to financing activities | (6,471) | (26,631) | |||||
Payments to acquire or redeem own shares | $ (20,100) | (20,100) | [1] | ||||
Cash flows from (used in) financing activities | (113,333) | (224,005) | [1] | 10,285 | [1] | ||
Bank borrowings. | |||||||
Changes in liabilities arising from financing activities [abstract] | |||||||
Beginning of period | 158,998 | 141,012 | |||||
Changes from financing cash flows | (67,343) | (107,718) | |||||
Effect of changes in foreign exchange rates | 10,295 | (1,485) | |||||
Change in scope of consolidation | 112,226 | ||||||
Other changes | 5,657 | 14,963 | |||||
End of period | 107,607 | 158,998 | 141,012 | ||||
Obligations under finance leases. | |||||||
Changes in liabilities arising from financing activities [abstract] | |||||||
Beginning of period | 25,873 | 66,471 | |||||
Changes from financing cash flows | (10,315) | (55,352) | |||||
Effect of changes in foreign exchange rates | 1,608 | (1,895) | |||||
Other changes | 5,370 | 16,649 | |||||
End of period | 22,536 | 25,873 | 66,471 | ||||
Debt instruments | |||||||
Changes in liabilities arising from financing activities [abstract] | |||||||
Beginning of period | 354,952 | 352,594 | |||||
Changes from financing cash flows | (32,812) | (34,304) | |||||
Other changes | 35,368 | 36,662 | |||||
End of period | 357,508 | 354,952 | 352,594 | ||||
Financial loans from government agencies | |||||||
Changes in liabilities arising from financing activities [abstract] | |||||||
Beginning of period | 56,939 | 61,849 | |||||
Effect of changes in foreign exchange rates | 4,865 | (1,147) | |||||
Other changes | 2,092 | (3,763) | |||||
End of period | 63,896 | 56,939 | 61,849 | ||||
Derivative financial instruments | |||||||
Changes in liabilities arising from financing activities [abstract] | |||||||
Beginning of period | 9,600 | 23,463 | |||||
Changes from financing cash flows | 3,608 | ||||||
Effect of changes in foreign exchange rates | (86) | (532) | |||||
Changes in fair value | (14,329) | (12,770) | |||||
Other changes | $ 1,207 | (561) | |||||
End of period | $ 9,600 | $ 23,463 | |||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Fair value measurement - Estima
Fair value measurement - Estimate of fair value (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other assets | ||||
Assets | $ 1,347,145 | $ 1,734,353 | ||
Other financial assets | ||||
Other financial assets. | 6,065 | 8,162 | ||
Assets and liabilities measured at fair value | ||||
Gain/Loss recognised in profit or loos | 530 | $ 7,615 | ||
At fair value | ||||
Other financial liabilities | ||||
Other financial liabilities - derivatives | (21,965) | |||
Other liabilities | ||||
Contingent consideration in a business combinations | (16,632) | |||
Level 3 of fair value hierarchy | At fair value | ||||
Other financial liabilities | ||||
Other financial liabilities - derivatives | (21,965) | |||
Other liabilities | ||||
Contingent consideration in a business combinations | (16,632) | |||
Equity securities | At fair value | ||||
Other assets | ||||
Assets | 2,609 | |||
Other financial assets | ||||
Other financial assets. | 5,544 | |||
Equity securities | Level 1 of fair value hierarchy | At fair value | ||||
Other assets | ||||
Assets | 2,609 | |||
Other financial assets | ||||
Other financial assets. | 5,544 | |||
Biological assets | ||||
Assets and liabilities measured at fair value | ||||
Cash proceeds | 8,668 | |||
Biological assets | Level 3 of fair value hierarchy | At fair value | ||||
Assets and liabilities measured at fair value | ||||
Beginning of period | 0 | 7,790 | ||
Gain/Loss recognised in profit or loos | (530) | |||
Disposals of biological assets | (7,365) | |||
Translation differences and other | 105 | |||
End of period | 0 | $ 7,790 | ||
Cross currency swap | ||||
Disclosure of financial liabilities [line items] | ||||
Cash receipts from swap | $ 3,608 | |||
Cross currency swap | At fair value | ||||
Other financial liabilities | ||||
Other financial liabilities - derivatives | $ 0 | (9,600) | ||
Cross currency swap | Level 2 of fair value hierarchy | At fair value | ||||
Other financial liabilities | ||||
Other financial liabilities - derivatives | $ (9,600) |
Non-current assets held for s_3
Non-current assets held for sale and discontinued operations - Discontinued operations (Details) - USD ($) $ in Thousands | Aug. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Gain on disposal of discontinued operation | $ (5,399) | $ 85,101 | [1] | |
Spanish Hydroelectric Business, Disposal Group And Discontinued Operation | ||||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Purchase price adjustment on sale | 5,399 | |||
Cash proceeds | $ 177,627 | |||
Gain on disposal of discontinued operation | $ 85,102 | $ (5,399) | $ 85,102 | |
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Non-current assets held for s_4
Non-current assets held for sale and discontinued operations - Profit and loss (Details) - USD ($) $ in Thousands | Aug. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Profit (loss) [abstract] | ||||||
Sales | $ 1,144,434 | $ 1,615,222 | $ 2,242,002 | [1] | ||
Cost of sales | (835,486) | (1,214,397) | (1,446,677) | [1] | ||
Other operating income | 33,627 | 54,213 | 45,844 | [1] | ||
Staff costs | (214,782) | (285,029) | (338,862) | [1] | ||
Other operating expense | (132,059) | (225,705) | (277,560) | [1] | ||
Depreciation and amortization charges, operating allowances and write-downs | (108,189) | (120,194) | (113,837) | [1] | ||
Operating (loss) profit | (184,350) | (355,586) | 99,074 | [1] | ||
(Loss) profit before tax | (222,420) | (411,818) | 35,568 | [1] | ||
Gain on sale of discontinued operation | (5,399) | 85,101 | [2] | |||
(Loss) profit after taxes from discontinued operations | (5,399) | 84,637 | 9,464 | [1] | ||
Spanish Hydroelectric Business, Disposal Group And Discontinued Operation | ||||||
Profit (loss) [abstract] | ||||||
Sales | 13,164 | 32,035 | ||||
Cost of sales | (271) | (677) | ||||
Other operating income | 365 | 193 | ||||
Staff costs | (1,450) | (2,201) | ||||
Other operating expense | (1,995) | (6,370) | ||||
Depreciation and amortization charges, operating allowances and write-downs | (2,830) | (5,300) | ||||
Operating (loss) profit | 6,983 | 17,680 | ||||
Net finance expense | (6,433) | (4,440) | ||||
(Loss) profit before tax | 550 | 13,240 | ||||
Income tax expense | (1,015) | (3,776) | ||||
Gain on sale of discontinued operation | $ 85,102 | (5,399) | 85,102 | |||
(Loss) profit after taxes from discontinued operations | $ (5,399) | $ 84,637 | $ 9,464 | |||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). | |||||
[2] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |
Non-current assets held for s_5
Non-current assets held for sale and discontinued operations - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Numerator: | |||||
(Loss) profit after taxes from discontinued operations | $ (5,399) | $ 84,637 | $ 9,464 | [1] | |
Denominator: | |||||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | [1] | |
Numerator: | |||||
(Loss) profit after taxes from discontinued operations | $ (5,399) | $ 84,637 | $ 9,464 | [1] | |
Denominator: | |||||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | [1] | |
Effect of dilutive securities | [1] | 123,340 | |||
Weighted average dilutive shares outstanding | 169,269,281 | 169,152,905 | 171,529,612 | [1] | |
Spanish Hydroelectric Business, Disposal Group And Discontinued Operation | |||||
Numerator: | |||||
(Loss) profit after taxes from discontinued operations | $ (5,399) | $ 84,637 | $ 9,464 | ||
Denominator: | |||||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | ||
Basic (loss) earnings per ordinary share (US$) | $ (0.03) | $ 0.50 | $ 0.05 | ||
Numerator: | |||||
(Loss) profit after taxes from discontinued operations | $ (5,399) | $ 84,637 | $ 9,464 | ||
Denominator: | |||||
Weighted average basic shares outstanding | 169,269,281 | 169,152,905 | 171,406,272 | ||
Effect of dilutive securities | 123,340 | ||||
Weighted average dilutive shares outstanding | 169,269,281 | 169,152,905 | 171,529,612 | ||
Diluted (loss) earnings per ordinary share (US$) | $ (0.03) | $ 0.50 | $ 0.05 | ||
[1] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Non-current assets held for s_6
Non-current assets held for sale and discontinued operations - Cash flows (Details) - USD ($) $ in Thousands | Aug. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities: | ||||||
(Loss) profit for the year | $ (249,758) | $ (285,640) | [1] | $ 24,573 | [1],[2] | |
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | ||||||
Income tax expense (benefit) | 21,939 | (40,528) | [1] | 24,235 | [1] | |
Depreciation and amortization charges, operating allowances and write-downs | 108,189 | 123,024 | [1] | 119,137 | [1] | |
Gain on disposal of discontinued operations | 5,399 | (85,101) | [1] | |||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in inventories | 114,585 | 91,531 | [1] | (101,024) | [1] | |
Other, net | 14,473 | (45,878) | [1] | (25,901) | [1] | |
Income tax paid | 11,831 | (3,589) | [1] | (36,408) | [1] | |
Net cash (used) provided by operating activities | 154,268 | (31,194) | [1] | 116,795 | [1] | |
Payments due to investments: | ||||||
Property, plant and equipment | (30,257) | (32,445) | [1] | (106,136) | [1] | |
Net cash provided (used) by investing activities | (31,940) | 165,910 | [1] | (85,875) | [1] | |
Cash flows from financing activities: | ||||||
Other inflows (outflows) of cash, classified as financing activities | (2,863) | (8,526) | [1] | (13,880) | [1] | |
Net cash (used) provided by financing activities | (113,333) | (224,005) | [1] | 10,285 | [1] | |
Total net cash flows for the year | 8,995 | (89,289) | [1] | 41,205 | [1] | |
Beginning balance of cash and cash equivalents | 94,852 | |||||
Ending balance of cash and cash equivalents | 102,714 | 94,852 | ||||
Spanish Hydroelectric Business, Disposal Group And Discontinued Operation | ||||||
Cash flows from operating activities: | ||||||
(Loss) profit for the year | (5,399) | 84,637 | ||||
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | ||||||
Income tax expense (benefit) | 1,015 | |||||
Depreciation and amortization charges, operating allowances and write-downs | 2,830 | |||||
Net finance expense | 6,433 | 4,440 | ||||
Gain on disposal of discontinued operations | $ (85,102) | 5,399 | (85,102) | |||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in trade and other receivables | (10,341) | |||||
Decrease (increase) in inventories | 2 | |||||
Increase / (Decrease) in accounts payable | 89 | |||||
Other, net | (24) | 69,243 | ||||
Interest paid | (2,307) | |||||
Net cash (used) provided by operating activities | (24) | 66,499 | ||||
Payments due to investments: | ||||||
Property, plant and equipment | (126) | |||||
Net cash provided (used) by investing activities | (126) | |||||
Cash flows from financing activities: | ||||||
Other inflows (outflows) of cash, classified as financing activities | (66,457) | |||||
Net cash (used) provided by financing activities | (66,457) | |||||
Total net cash flows for the year | (24) | (84) | ||||
Beginning balance of cash and cash equivalents | $ 24 | 108 | ||||
Ending balance of cash and cash equivalents | $ 24 | $ 108 | ||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. | |||||
[2] | The amounts for prior periods have been restated to reclassify the results of the Company´s Spanish hydroelectric assets within profit (loss) from discontinued operations (see Note 29). |
Events after the reporting pe_2
Events after the reporting period (Details) € in Thousands, $ in Thousands | Mar. 27, 2021USD ($) | Mar. 16, 2021USD ($) | Feb. 15, 2017USD ($) | Oct. 13, 2015EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 21, 2021 | Jan. 26, 2021 | ||
Events after the reporting period | |||||||||||
Repayment of debt | $ 235,296 | $ 329,501 | [1] | $ 106,514 | [1] | ||||||
Issue of equity | € 50,000 | $ 240 | |||||||||
Senior Notes due 2022 | |||||||||||
Events after the reporting period | |||||||||||
Interest rate (as a percent) | 9.375% | ||||||||||
Principal amount | $ 350,000 | $ 350,000 | $ 350,000 | ||||||||
Redemption price of notes | 109.375% | ||||||||||
Modification of Contractual Terms in REINDUS Loan | Minimum | |||||||||||
Events after the reporting period | |||||||||||
Interest rate (as a percent) | 2.29% | ||||||||||
Modification of Contractual Terms in REINDUS Loan | Maximum | |||||||||||
Events after the reporting period | |||||||||||
Interest rate (as a percent) | 3.55% | ||||||||||
Repayment of North-American Asset Based Loan | |||||||||||
Events after the reporting period | |||||||||||
Repayment of debt | $ 39,476 | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | |||||||||||
Events after the reporting period | |||||||||||
Issue of equity | $ 40,000 | ||||||||||
Percentage of discount on volume weighted average closing share price. | 40.00% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Minimum | |||||||||||
Events after the reporting period | |||||||||||
Issue of equity | $ 40,000 | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Senior Notes due 2022 | |||||||||||
Events after the reporting period | |||||||||||
Minimum percentage of note holders | 60.00% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | |||||||||||
Events after the reporting period | |||||||||||
Interest rate (as a percent) | 9.00% | ||||||||||
Principal amount | $ 60,000 | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | Immediately as soon as possible | |||||||||||
Events after the reporting period | |||||||||||
Principal amount | 40,000 | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | Completion of proposed restructuring | |||||||||||
Events after the reporting period | |||||||||||
Principal amount | 20,000 | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | Redemption of Initial Tranche Debt Prior to Transaction Effective Date | |||||||||||
Events after the reporting period | |||||||||||
Debt redemption premium | $ 17,500 | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Super Senior Notes | Redemption Further Subsequent One Year Period | |||||||||||
Events after the reporting period | |||||||||||
Redemption price of notes | 104.50% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Amendment senior notes due 2025 | |||||||||||
Events after the reporting period | |||||||||||
Interest rate (as a percent) | 9.375% | ||||||||||
Minimum percentage of note holders | 96.00% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Amendment senior notes due 2025 | Redemption First Subsequent One Year Period | |||||||||||
Events after the reporting period | |||||||||||
Redemption price of notes | 104.6875% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Amendment senior notes due 2025 | Redemption Second Subsequent One Year Period | |||||||||||
Events after the reporting period | |||||||||||
Redemption price of notes | 102.3437% | ||||||||||
Agreement in Principle on the Terms of Financing Proposal | Amendment senior notes due 2025 | Redemption Third Subsequent One Year Period | |||||||||||
Events after the reporting period | |||||||||||
Redemption price of notes | 101.00% | ||||||||||
[1] | While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a fairer presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities. |