Grizzly Rock Capital's Kyle Mowery + Mike Holt on secular tailwinds for silicon metal producer $GSM

Oct 2, 2023

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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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