Marco Levi: The picture is the following for us. Silicon metal, we see a slightly better situation than in the previous quarters. We think that the supply chain is rather empty. And we see our orders coming now more regularly than before. This is valid for silicon metal. While for — I think that to see the same situation for alloys, we have — at least for commodities, we have to wait the end of the year. Of course, we have the advantage of pharmaceutical, specialty and foundry that has a rather stable volume trend, but definitely, the supply chain of manganese alloys and ferrosilicon standard still suffers out of oversupply.
Martin Englert: Understood. And one last one here, and you did touch on this in the prepared remarks, but I think you said working capital, did you expect working capital relative to sales to increase quarter-over-quarter in 3Q? And then what was the — I didn’t catch the reason behind that, why that is expected to happen?
Marco Levi: Apologies. I was not clear, my fault, Martin. Let me try to repeat it more clearly. We expect an increase of working capital in Q3 driven by the fact that we will slow down production in France, where we have the core of our silicon metal production in Europe at the end of Q4. So we will need to start building inventory of silicon metal. So this means producing more finishing goods, but also by the right volumes of key raw materials.
Martin Englert: Okay. At a group level, any goalposts on how we should think of overall working capital as a percentage of sales in 3Q then?
Marco Levi: Well, the silicon metal will be higher than our target 21%, 22%. We expect to run at this level. Ferrosilicon and manganese will continue to be north of 25% of our sales.
Martin Englert: All right. Excellent. I appreciate the time and congratulations on navigating the environment and on the cost front.
Operator: [Operator Instructions]. And the next question comes from the line of John Rolfe from Crescent Capital.
John Rolfe: Nice quarter. Two questions for you. One, on the cash flow statement, there was a $62 million outflow related to the other line item. I was hoping you could provide a little bit of additional color around that. And then as my follow-up, could you just maybe give a bit of additional detail in terms of what is the practical impact of having the Department of Energy add silicon metal to its critical material list?
Beatriz García-Cos: John, let me answer the noncash items question. So there is mainly 2 items that you need to take into consideration. One is the PPA that we have in Spain. And the second element that you need to take into consideration is our energy agreement in France. So those are the 2 items that are playing a role on these noncash items.
John Rolfe: Got it. So what do you need to post collateral for those energy and power agreements? Or is it just a payable that you have to make at some point in the future?
Beatriz García-Cos: It’s a receivable. On the energy, it’s receivable. And on the PPA, it’s just what I explained before is the adjustment of the swap agreement that we have in Q2 2023.
Marco Levi: John, on your second question, the thing is that when we think about what’s happening in solar and batteries market, the idea in U.S., but also in other countries is to establish the full supply chain. And what is important is that everybody understands what are the elements of this supply chain and the fact that silicon is recognized like a critical and strategic raw material implies that silicon and investments related to silicon are going to be considered by legislators, by politicians, by investors. So this is really the essence. And as these things are moving pretty fast in the Western world where we have main footprint in silicon metal, puts us in a good position to exploit some of the coming opportunities.
