Good morning, ladies and gentlemen, and welcome to the Ferroglobe's Fourth Quarter and Full Year 2018 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. As a reminder, this conference call may be recorded. I would now like to turn the call over to Pedro Larrea, Ferroglobe's Chief Executive Officer. You may begin.

Good morning and thank you for joining the Ferroglobe fourth quarter and full year 2018 conference call. As we stated in our earnings release, Phil Murnane, has taken a temporary medical leave of absence from his duties as Chief Financial Officer and we expect him to be on leave for the next few weeks. During Phil's absence, José María Calvo-Sotelo, Deputy CFO and EVP, Corporate Development, is assuming the duties of the CFO. Joining me on today's call are José María Calvo-Sotelo himself; and Brian Sikora, Ferroglobe's VP, Global Corporate Controller. Before we get started with some prepared remarks, I am going to read a brief statement. Please turn to and review slide 1 at this time. Statements made by management during this conference call that are forward-looking statements are based on current expectations. Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and the exhibits to those filings, which are available on our webpage, www.ferroglobe.com. In addition, this discussion includes EBITDA, adjusted EBITDA and adjusted diluted earnings per share, which are non-IFRS measures. Reconciliations of these non-IFRS measures to IFRS may be found in our most recent SEC filings. Please turn to slide 2. Today we will be presenting the Q4 and full year 2018 overview of results then we will dig a bit further into the financial highlights and we will close with some comments on near-term outlook for our industry. Turning to slide 3. Before we enter into the detailed analysis of results I would like to highlight that Ferroglobe's fourth quarter results underscore the challenges we pointed out on the previous earnings call in terms of price erosion across our products and negative contribution from our manganese-based alloys business. On the one…

[Operator Instructions] Our first question comes from the line of Vincent Anderson of Stifel. Your line is now open. Q – Vincent Anderson: Yeah. Thank you for taking my question. Just first and foremost, are you able to address in any way the financial health of Grupo Villar Mir right now? And are you aware of any plans by Grupo Villar Mir to improve its transparency for the benefit of the shareholders of its publicly traded subsidiaries? A – Pedro Larrea: Well as you know Vincent, I'm afraid I'm not in a position to comment on GVM's intention or situation. That of course is a matter for GVM. And you need to address the question of what they intend to do really directly to them. Q – Vincent Anderson: Okay. Thank you. With regards to the manganese alloys shipments in 4Q 2018, can you just talk about predominantly where those volumes went? Did they go into trader channels? Did they make it all the way to the end user? And do you feel that -- in your effort to reduce net working capital, could there have been any kind of impact on market pricing in the near-term? A – Pedro Larrea: Well what I think as I mentioned during this call and also partly in the Q3 call, there were some delays in Q3 shipments. So really when you look at Q3 plus Q4 in average, that really gives you a better view of what is the normalized level of manganese alloys volumes for the second half of the year. So really the main driver of increased volumes in Q4 compared to Q3 is the spillover from Q3 to Q4. Q – Vincent Anderson: Understood. So they all had buyers lined up? A – Pedro Larrea: Most of it. There is some volumes that always go to traders. We have also been having shipments to North America for instance that are at good price but carry significant logistic costs. So, of course, we are trying to increase our market share and our position in the market that sometimes carry in the beginning additional costs which have had some impact on the profitability of that business. But that is I would say business as usual.

That's helpful. Thank you. And just one more from me. Has there been any progress in your discussions with New York State with regards to the power supply agreement for your Niagara Falls plant?

Not really. I mean the only -- what we have been doing is a negotiation mostly which was successful in terms of the fixed cost. The fixed cost we would have had to face for the Niagara facility while it was idled and we had got waiver on those costs. That is the only specific I would say positive news we have there.

Okay. Are you still working on negotiating a renewal of your prior power supply agreement?

We are always negotiating with our suppliers and with the authorities wherever it is required in Niagara and in other places around the world.

Okay. Thank you very much.

And our next question comes from the line of Martin Englert of Jefferies. Your line is now open.

Hi, good day everyone.

Hi Martin.

I wanted to see if you can maybe touch on the fixed price contracts for silicon metal both respectively within the U.S. as well as the European market and how that maybe compare to more recent spot price trends?

That's actually -- that's a good question. I don't have the numbers with me right now and -- but I would say that in general fixed price contract that we have been closing both in North America and in Europe are not below where you see index prices today. So, if any, we do have some fixed price contracts that are above current index prices. What I think I have also been mentioning in the past is that this year we do have -- and of course, we are now talking about silicon metal I presume, but most of -- one shift we have seen this year and also in the past couple years is a greater proportion of index price contracts. So, that I think is more of the trend today. And also shorter term contracts which means that even if we got some relatively good priced contract if index continue to go down, then that would reflect in following quarters.

Great. Thanks. That's helpful. And I want to see can you touch on the gross margin trends? So, I know some things and you called it out on the call were baked into that and on the gross profit line item and then there were some stuff about the gross profit. So, I wanted to get a sense of what are gross margins -- what's the expectation as far as like a run rate here near term? If things wouldn't change too much would we still see something in the 20% here?

Well, as I was saying I think the -- right now for Q1 if you look at trends of prices and I would say mostly in silicon metal and ferrosilicon index prices both in silicon metal and ferrosilicon have continued to go down. Not a lot in the case of silicon metal, but they have during Q4, I mean, and partly, also depending on regions at the beginning of Q1. So, one would expect with this trend that selling prices for those two categories of products could actually be lower in Q1 than they have been in Q4. And in terms of volumes, the name of the game, I would say today is uncertainty and caution. So, it is clear that a lot of our customers in our view are retrenching and being very cautious in terms of their order commitments.

Okay. And I'm just circling back on the gross margins was around like mid-20s, I believe for the quarter. Would something like that kind of continue to persist assuming no notable changes in market dynamics with demand and price levels?

Well, you know, we don't provide a specific guidance with those kind of numbers. But as I was saying we do see in the market in terms of both prices and demand or current demand some erosion, so that could translate into our margins, of course.

Okay. I appreciate all the color there. Thank you and good luck.

Thank you, Martin.

And our next question comes from the line of Sarkis Sherbetchyan of B. Riley FBR. Your line is now open.

Hey, thanks for taking my question here. What's the optimum working capital level and most importantly inventory given the backdrop of the business environment that you described?

Well, as I was saying, we are still aiming for a further reduction of around $20 million of working capital during the first half of 2019. So, we still think there is some room for improvement, but not really a huge one. When you look at the newly acquired assets at the end of the year we landed at $67 million of working capital. And we had been insisting that that kind of level between $60 million and $70 million is, I would say normalized run rate working capital for those facilities. When you look at the rest of our platform, working capital has been slightly up in 2018, at the end of 2018 compared to 2017, but that is mainly because we have shifted production from North America with very favorable logistics to South Africa with less favorable logistics. And there is just a natural working capital increase there. So, all-in-all, I would say we are today close to normalized working capital levels at current activity level. We should be seeing some decrease in working capital during 2019, but it is not going to be terribly significant.

Understood. And I think you mentioned about $40 million of additional non-core asset build that you've outlined. Can you maybe talk about what those assets are specifically, and if there's any anticipated regulatory hurdle that you need to overcome to monetize those?

No -- well, the second part of the answer is no. So, the first part of the question the answer, of course, is yes, I can provide some more detail. So, we have always been talking about two specific assets which is hydro facilities in France of around 15 megawatts and we have always been saying that is just as a rule of thumb around $15 million. Then we have timber farms in South Africa which we should be also near to closing that would deliver $10 million to $15 million as well. And then the rest is small little things here and there. We are looking at alternatives for our Polish assets and some other smaller things. All of those, again, do not require -- and I take it back. In the case of South Africa, they have to go through competition anti-trust authorities as a rule always, but we don't foresee any obstacle there. The rest do not have any regulatory hurdles to go through. They just do have administrative hurdles in France and South Africa and those sometimes are lengthier than we would like to. So, we don't think we will be able to close in Q1, but we are certainly aiming to close in Q2.

Great. That's helpful. I will take the rest offline. Thank you.

Thank you, Sarkis.

And I'm not showing any further questions at this time. I would now like to turn the call back to Pedro Larrea for closing remarks.

Well, thanks. Thank you everybody. I guess, this concludes our Q4 and full year 2018 earnings call. Thanks again for your participation and have a great day.

And ladies and gentlemen thank you for participating in today's conference. This does conclude the program and you may all disconnect. Everyone have a great day.