Ferroglobe PLC
For the period ended May 21, 2024. Filed May 21, 2024.
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May 21, 2024 · Filed May 21, 2024
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Contents
EX-99.2 · Commitments
Commitments
As of December 31, 2023 and 2022, the Company has capital expenditure commitments totaling $16,019 thousand and $16,607 thousand, respectively, primarily related to improvement works at plants.
| 9. | Financial assets and other receivables |
The company’s financial assets and their classification under IFRS 9 are as follows:
| 2023 classification | |||||
|---|---|---|---|---|---|
| Amortized cost · Fair value through profit or loss - mandatorily measured · Fair value through other comprehensive income - designated · Total | |||||
| Note | US$'000 | US$'000 | US$'000 | US$'000 | |
| Other financial assets | 9.1 | 12,992 | 1,080 | 5,722 | 19,794 |
| Receivables from related parties | 23 | 4,430 | — | — | 4,430 |
| Trade and other receivables | 9.2 | 310,243 | — | — | 310,243 |
| Restricted cash and cash equivalents | 1,179 | — | — | 1,179 | |
| Cash and cash equivalents | 136,470 | — | — | 136,470 | |
| Total financial assets | 465,314 | 1,080 | 5,722 | 472,116 | |
| 2022 classification | |||||
|---|---|---|---|---|---|
| Amortized cost · Fair value through profit or loss - mandatorily measured · Fair value through other comprehensive income - designated · Total | |||||
| Note | US$'000 | US$'000 | US$'000 | US$'000 | |
| Other financial assets | 9.1 | 13,253 | 936 | — | 14,189 |
| Receivables from related parties | 23 | 4,275 | — | — | 4,275 |
| Trade and other receivables | 9.2 | 425,474 | — | — | 425,474 |
| Restricted cash and cash equivalents | 5,008 | — | — | 5,008 | |
| Cash and cash equivalents | 317,935 | — | — | 317,935 | |
| Total financial assets | 765,945 | 936 | — | 766,881 | |
Restrictions on the use of group assets
As of year ended December 31, 2023 and 2022, Cash and cash equivalents and restricted cash comprise the following:
| 2023 | 2022 | |
|---|---|---|
| US$'000 | US$'000 | |
| Cash and cash equivalents | 136,470 | 317,935 |
| Non-Current restricted cash presented as Cash | — | 2,133 |
| Current restricted cash presented as Cash | 1,179 | 2,875 |
| Total | 137,649 | 322,943 |
As of December 31, 2023, the Company holds $1,179 thousand in current restricted cash associated with cash held explicitly to fund our Selma plant as part of the New Markets Tax Credit Program (NMTC Program). The NMTC helps economically distressed communities attract private capital. The Company intends to use the remaining restricted cash in early 2024.
The Company also has certain restrictions in the partnerships with Dow as of December 31, 2023 and 2022.
| 9.1 | Other financial assets |
As of December 31, 2023, other financial assets comprise the following:
| Non-Current | Current | Total | |
|---|---|---|---|
| US$'000 | US$'000 | US$'000 | |
| Other financial assets held with third parties: | |||
| Other financial assets at amortized cost | 12,992 | — | 12,992 |
| Equity securities | 1,078 | 2 | 1,080 |
| Derivative financial instruments (Note 20) | 5,722 | — | 5,722 |
| Total | 19,792 | 2 | 19,794 |
As of December 31, 2022, other financial assets comprise the following:
| Non-Current | Current | Total | |
|---|---|---|---|
| US$'000 | US$'000 | US$'000 | |
| Other financial assets held with third parties: | |||
| Other financial assets at amortized cost | 13,253 | — | 13,253 |
| Equity securities | 933 | 3 | 936 |
| Total | 14,186 | 3 | 14,189 |
Other financial assets at amortized cost
Other financial assets at amortized cost comprise the investment fund of $9,909 thousand in Selma Globe Investment Fund, LLC as a result of the NMTC Program. The reactivation of the plant in Selma, Alabama, in 2022 resulted in us being granted with a $13,230 thousand allocation by the end of fiscal year 2022 under the NMTC Program (SeeNote 16). This allocation was subscribed by Ferroglobe U.S.A Metallurgical, Inc. (also “FG USA Metallurgical”, formerly Globe Metallurgical, Inc.) as owner of the plant and United Bank as investor and beneficiary of the tax credit resulting from this grant.
Other financial assets at amortized cost also comprise deposits given to the French government by Ferroglobe France (formerly Ferropem) ($3,024 thousand in 2023 and $2,770 thousand in 2022), a Ferroglobe subsidiary, in respect ofeffort de construction. The law in France requires employers and companies of a certain size to invest a portion of their budgets in the construction or renovation of housing (including through direct investment, providing mortgages, and other) every year. In this case, the mandatory contributions are made in the form of a loan, to be returned by the French government in twenty years.
The carrying amount of other financial assets at amortized cost is considered to approximate their fair value.
| 9.2 | Trade and other receivables |
Trade and other receivables comprise the following at December 31:
| 2023 | 2022 | |
|---|---|---|
| US$'000 | US$'000 | |
| Trade receivables | 223,236 | 295,678 |
| Less – allowance for doubtful debts | (2,906) | (1,187) |
| 220,330 | 294,491 | |
| Tax receivables | 26,779 | 36,852 |
| Government grant receivables | 62,417 | 88,092 |
| Other receivables | 717 | 6,039 |
| Total trade and other receivables | 310,243 | 425,474 |
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 2023 and 2022 were as follows:
| Allowance | |
|---|---|
| Balance at January 1, 2022 | 1,006 |
| Impairment losses recognized | 361 |
| Collection of previously written off balances | (124) |
| Exchange differences | (56) |
| Balance at December 31, 2022 | 1,187 |
| Impairment losses recognized | 1,970 |
| Collection of previously written off balances | (300) |
| Exchange differences | 49 |
| Balance at December 31, 2023 | 2,906 |
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