Kyle Mowery and Mike Holt, CFA, Managing Partner / Portfolio Manager and Senior Analyst, respectively, at Grizzly Rock Capital joins the podcast today to discuss their thesis on Ferroglobe PLC (NASDAQ: GSM), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys.
For more information about Grizzly Rock Capital, please visit: https://www.grizzlyrockcapital.com/
Chapters:
[0:00] Introduction + Episode sponsor: Stream by Alphasense
[1:47] Who is Ferroglobe PLC (NASDAQ: GSM) and why are they interesting?
[3:39] $GSM valuation
[7:52] What Grizzly Rock Capital thinks the market is misunderstanding about $GSM
[10:51] Global supply / demand curve for silicon metal in China + IRA demand
[17:51] How much of $GSM earnings come from solar currently
[20:01] Evaluating $GSM on an asset valuation basis
[23:53] Management evaluation and semi-controlling shareholder / long term vision
[29:40] Capital allocation strategy
[32:52] Inflation Reduction Act (IRA) and solar demand
[35:49] Plants coming online in North America and how that affects $GSM
[38:38] Outlook on European assets
[40:56] Licensing off EV patents and maintenance capex
[44:57] How Grizzly Rock Capital looking at 2024 earnings
[47:15] Bridging the gap of Grizzly Rock Capital's 2024 expectations vs. $GSM historical performance
[53:14] $GSM final thoughts
Today's episode is sponsored by: Alphasense
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