13 Best Magnesium Stocks to Buy Right Now

7. Ferroglobe PLC (NASDAQ:GSM)

Number of Hedge Fund Holders: 27

Ferroglobe PLC (NASDAQ:GSM) boasts a broad portfolio of silicon and manganese-based alloys, making it to our list of the best manganese stocks to buy. The company distributes key materials to the steel, chemical, and aluminum industries and operates internationally. Nodularisers, ferrosilicon alloys containing magnesium, further emphasize Ferroglobe’s role in magnesium-based applications within the foundry sector.

Ferroglobe PLC (NASDAQ:GSM) reported sales of $367.5 million, a drop of 15.2% from Q3 and 2.2% from the prior year. Despite the growth in manganese-based alloy shipments, the decrease was fueled by lower overall sales volumes. Weaker silicon-based alloy sales were mitigated by the surge in manganese-based alloy revenue, as the revenue for the full year stood at $1,644 million, moderately lower than $1,650 million in 2023.

Moreover, manganese-based alloy revenue achieved $78.5 million in Q4, declining 12.5% QoQ but up by 29.8% year-over-year. The segment witnessed a 16.7% drop in average realized prices while shipments rose by 5%. Lower pricing and high manganese ore costs led to adjusted EBITDA for the manganese segment to decline $7.1 million from $27.9 million in Q3. Raw material and energy costs rose to 68.2% of sales in Q4, surging nearly 10% from Q3, affecting the company’s profitability.

However, despite the challenges, for the first time, Ferroglobe PLC (NASDAQ:GSM) secured a net cash position and initiated a capital return program, including share buybacks and dividends. The company is also set to take advantage of U.S. trade measures by imposing over 1,000% in duties on Russian ferrosilicon imports, with possible additional restrictions on Brazil, Malaysia, and Kazakhstan. Alongside that, its market position could be solidified by the European Commission’s ongoing investigation into silicon metal and manganese alloy imports.

Moving ahead, with pricing pressure in silicon metal and alloys due to high imports, Ferroglobe PLC (NASDAQ:GSM) predicts soft market conditions in early 2025. However, as destocking trends ease and steel production enhances, the demand is expected to recover in the second half. The company has fixed a 2025 adjusted EBITDA forecast range of $100 million to $170 million, with trade policies, raw material costs, and geopolitical factors as prominent variables. Furthermore, Ferroglobe is further positioned for long-term growth with investments in silicon metal for EV batteries.

With magnesium demand expected to grow in the coming years, we can expect to see GSM increasing its exposure in the sector, which is why it makes it to our list of the best magnesium stocks.