GSM - Ferroglobe to restart South African plant to meet silicon metal demand

Ferroglobe ( NASDAQ: GSM ) +3.9% post-market Monday, following a 6.6% rise in regular trading, as the silicon metal producer said it will restart its 55K-ton silicon metal facility in Polokwane, South Africa, in response to strong market demand.

The company said the Polokwane plant will allow it to add capacity that is lower cost and strategically located, optimizing its asset footprint, and providing flexibility in addressing Europe's volatile energy markets.

Ferroglobe ( GSM ) said the decision to restart the plant was contingent on its ability to secure multi-year contracts with strategic customers, which are now being finalized.

The company expects to begin production of Polokwane's three-furnace operation in November, with initial monthly production of 1,150 metric tons gradually ramping up to 3,750 tons/month by the end of Q2 2023.

Ferroglobe ( GSM ) is on pace for more than $1B of adjusted EBITDA and $900M of free cash flow this year, CashFlow Hunter said in an analysis posted on Seeking Alpha .

For further details see: