AMG subsidiary Timminco provides update on solar grade silicon customers and operations and announce proposed financing and new president and chief operating officer
Amsterdam, 20 April 2009 — AMG Advanced Metallurgical Group N.V.’s (“AMG,” EURONEXT AMSTERDAM: “AMG”) 50.7% owned subsidiary, Timminco Limited (“Timminco” or the “Company”; TSX: TIM), announced today an update on its on-going discussions with solar grade silicon customers. These discussions have focused on alternatives to the existing contractual commitments, in the context of maintaining long-term relationships with customers in light of the challenging economic environment and market conditions affecting the solar industry.
In the course of these negotiations, some of the Company’s solar grade silicon customers have asserted that their contracts have been terminated due to non-compliance. We are in active discussions with each of these customers with respect to their positions and the terms of future relationships, including quality, quantity and pricing for solar grade silicon. These customers have paid deposits, which were non-interest bearing pre-payments to be credited against future deliveries of solar grade silicon under the contracts. As described in more detail in the Company’s financial statements and management’s discussion and analysis, in the event of an early termination or completion of a supply contract without full utilization of the deposit amount, any remaining balance on the deposit is to be repaid to the customer within a specified time period.
Timminco also announced an update on its solar grade silicon production operations. For the first quarter of 2009, the Company shipped 131 metric tons (mt) of solar grade silicon. The average selling price for such shipments was $58 per kg, resulting in gross revenue of $7.6 million for this product line in the quarter.
Timminco is pursuing discussions with its controlling shareholder, AMG, regarding it leading a potential equity offering for aggregate gross proceeds of $15.0 million. Such offering is expected to be by way of a private placement, with AMG subscribing for a minimum of 50%, and up to 100%, of the common shares that may be issued. Such offering would be subject to AMG’s supervisory board approval, execution of definitive documents and receipt of all necessary regulatory approvals, including approval of the Toronto Stock Exchange. Clarus Securities Inc. has been appointed to represent the Company as the sole agent for this offering.
Timminco further announced the promotion of Mr. John Fenger, President – Light Metals, as the new President and Chief Operating Officer of Timminco. Most recently, Mr. Fenger was responsible for the restructuring of Timminco’s magnesium business. Mr. Fenger spent most of his career at Elkem AS where he had most recently been Corporate Vice President and General Manager of that company’s Foundry Market Division. In that position and as Senior Vice President of Elkem’s Materials Division, Mr. Fenger had full responsibility for its silicon business as well as other metals businesses throughout the world. Mr. Fenger has had extensive experience in the solar industry as a co-founder and a Director of Renewable Energy Corporation, Norway (REC). Mr. Fenger has also served with Deloitte & Touche LLP as Director of International Business Consulting and with Allied Resource Corporation.
Dr. Heinz C. Schimmelbusch, Chief Executive Officer of Timminco, stated: “Mr. Fenger’s performance in restructuring Timminco’s magnesium business, formerly our primary operating division, exhibited his strong managerial skills and operating experience. He will significantly increase the depth of our management team.”
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in the United States. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any other state securities laws and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions of businesses, Advanced Materials and Engineering Systems, and owns majority interests in publicly-listed companies Timminco Limited (TSX: “TIM”) and Graphit Kropfmühl AG (Deutsche Börse: GKR.DE).
The Advanced Materials Division develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminum, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.
Timminco Limited is a majority controlled, publicly listed subsidiary of AMG. Timminco is a leader in the production of upgraded metallurgical silicon for the rapidly growing solar photovoltaic energy industry. Timminco also produces silicon metal and magnesium products for use in a broad range of industrial applications.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.
AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4901
Director of Corporate Communications
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