Ferroglobe Files Annual Report on Form 20-F with the SEC

LONDON, June 01, 2020 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ:GSM), (“Ferroglobe”, “the Company”, “we” or “our”), a global, leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, filed its Annual Report on Form 20-F, the annual SEC filing required of foreign private issuers with securities listed on U.S. exchanges on May 29, 2020.  The filing includes audited financial statements as of and for the year ended December 31, 2019 and is available at www.ferroglobe.com and www.sec.gov.  As reflected therein, the Company had an operating loss of $355.6 million and a net loss of $285.6 million for the year ended December 31, 2019.  As of that date, the Company had cash and cash equivalents of $123.2 million, of which $28.3 is restricted. 

The Company’s financial statements are accompanied by an unqualified audit opinion from its independent auditors.  However, the opinion does include a going concern explanatory paragraph.  This is attributable in part to the uncertainty created by the COVID-19 pandemic and the limited visibility of the impact on the business.  As of the date of the issuance of the financial statements, the COVID-19 pandemic has not had a material effect on the Company’s liquidity or financial position.  Management continues to monitor the impact the pandemic is having on the Company and the economies in which the Company operates.  Based on current visibility and scenario testing, our analysis supports an expectation that the Company will have sufficient cash to continue to operate through the next twelve months.

The audit opinion’s going concern explanatory language is also due in part to provisions of the Indenture governing the Company’s outstanding Senior Notes that, in the event of a change of control, would require the Company to offer to redeem its outstanding Senior Notes at 101% of par value plus any accrued and unpaid interest.  Management believes a change of control as defined in the Indenture is unlikely to occur, yet the matter is beyond the Company’s control. If such a change of control were to occur, the Company may not have sufficient financial resources available to satisfy all of its obligations.