Amsterdam, 21 February 2024(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported record-setting adjusted EBITDA $350 million in 2023, due largely to strong profitability in our lithium and vanadium businesses. Fourth quarter 2023 revenue was $367 million, a 6% decrease versus the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA of $71 million decreased 32% compared to the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG’s history, and 33% higher than the $168 million in 2022.
In 000’s US dollars
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$367,235
$390,004
(6%)
$1,625,861
$1,642,774
(1%)
Adjusted EBITDA (1)
71,142
104,061
(32%)
350,491
342,550
2%
Cash from operating activities
44,704
56,969
(22%)
223,000
167,567
33%
Return on Capital Employed
26.3%
30.8%
26.3%
30.8%
Note: (1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG has achieved the highest adjusted EBITDA in its 16 year history with $350 million for the full year 2023. Market conditions for all products within our portfolio substantially weakened as the year progressed. The 32% decrease in adjusted EBITDA compared to the fourth quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium decreased over 76% and 26%, respectively, versus the average pricing in the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG’s history, and 33% higher than the $168 million in 2022. We were $38 million free cash flow positive for the year despite investing $169 million in capital projects as well as acquiring a 25% stake in Zinnwald in 2023. This underscores our low-cost position in both lithium and vanadium. We ended the year in a $323 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023. AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $350 million in new orders during 2023, the highest full year order intake in AMG’s history, and 24% higher than in 2022. This record order intake was driven by strong orders of remelting and heat treatment furnaces, representing a 1.27x book to bill ratio. AMG’s order backlog was $295 million as of December 31, 2023.
Through its critical materials science-based solutions, AMG, as its mission, seeks to contribute to CO2 reduction by way of “enabling” its customers to increase the efficiency of renewable energy production, and to “enable” energy saving strategies. We measure the enabled contribution to CO2 reduction at our customer level via stringent third-party developed life cycle assessments. We based this mission on the belief that in this obviously high growth environment, we could achieve both above average financial returns and use our proprietary technologies to be at the forefront of the industrial contribution to atmospheric CO2 reduction. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2023 enabled 110.3 million tons of CO2 reduction, 11% more than the 99.4 million tons of enabled CO2 reduction in 2022.”
Lithium
In Brazil, our lithium concentrate plant will temporarily stop production for the change-over period in March 2024 in order to facilitate the expansion from 90,000 tons to 130,000 tons. We expect to produce 93,000 tons for the full year of 2024 and will operate at the full expanded capacity rate, or 130,000 tons per year, in the fourth quarter of 2024.
AMG’s lithium hydroxide refinery’s first 20,000-ton module in Bitterfeld, Germany, is in advanced phases of commissioning, and the product qualification process is planned to start in the third quarter of 2024.
Vanadium
The Zanesville, Ohio facility exceeded our target production volumes in the fourth quarter of 2023. The production from both the roasting operation and the melt shop exceeded historical averages achieved by the Cambridge, Ohio operation.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualified for Section 45X effective from 2023 onwards, which provides a production credit for domestic manufacturing of critical materials. Based on preliminary regulations as issued by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. The ruling is still in the comment period and, as such, is subject to a final determination.
AMG’s innovative lithium vanadium battery (“LIVA”) projects are integral for industrial power management applications and accelerate the energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are currently under contract and being engineered, and 15 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 749 MWh.
AMG LIVA has agreed to acquire the Vanadium Redox Flow Battery (“VRFB”) activities from J.M. VOITH SE & CO. KG (“VOITH”). VOITH has developed an advanced technology for controlling and balancing large-scale high-voltage VRFB energy storage systems. The technology complements LIVA’s VRFB system development. LIVA will continue to develop the technology and integrate it into its large-scale energy storage systems.
The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. We expect to have nameplate capacity available by the second half of 2024.
AMG Vanadium has acquired the processing technologies and IP related activities from Transformation Technologies Inc. (“TTI”), a US company based in Oregon. This unique thermal treatment of spent catalyst and other oil refinery wastes into valuable products is complementary to AMG’s existing spent catalyst processing technology and know-how. AMG will integrate the TTI technology into its global strategic growth initiatives conducted through Shell & AMG Recycling (“SARBV”).
SARBV’s “Supercenter” project in the Middle East is a facility to produce high-purity vanadium oxides for applications such as chemicals and aerospace as well as vanadium electrolyte for the long duration energy storage market in the Kingdom of Saudi Arabia. The facility will operate under a long-term supply contract with Saudi Aramco for vanadium-containing gasification ash from its power plants in the Kingdom. For illustration purposes, Phase 1 of the Supercenter plans to produce 8 million pounds of vanadium oxide from 7,000 metric tons of gasification ash located at a site in Jubail, Kingdom of Saudi Arabia. The FEL3 basic engineering has been submitted. The full Supercenter project will also include the processing of spent catalysts, a Fresh Catalyst R&D facility and a LIVA Hybrid Energy Storage System.
Financial Highlights
AMG’s full year 2023 adjusted EBITDA was a record-setting $350 million due largely to high profitability in our lithium and vanadium businesses, offset by lower profit in AMG Critical Minerals.
Cash from operating activities was $223 million in 2023, compared to $168 million in 2022, largely driven by the lithium and vanadium expansion projects as well as strong cash flows from our Silicon business driven by energy sales.
AMG’s free cash flow(1) was $38 million in 2023.
AMG’s liquidity as of December 31, 2023 was $540 million, with $345 million of unrestricted cash and $195 million of revolving credit availability.
Annualized return on capital employed was 26.3% for 2023, compared to 30.8% in 2022.
AMG Engineering signed $350 million in new orders during 2023, the highest in AMG’s history and 24% higher than in 2022.
The total 2023 dividend proposed is €0.60 per ordinary share, including the interim dividend of €0.40, paid on August 9, 2023.
Note: (1) Free cash flow is defined as cash flows from operating activities less cash flows used in investing activities.
Key Figures
In 000’s US dollars
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$367,235
$390,004
(6%)
$1,625,861
$1,642,774
(1%)
Gross profit
55,252
119,981
(54%)
389,431
409,486
(5%)
Gross margin
15.0%
30.8%
24.0%
24.9%
Operating profit
19,503
82,319
(76%)
221,752
307,059
(28%)
Operating margin
5.3%
21.1%
13.6%
18.7%
Net income attributable to shareholders
2,173
60,697
(96%)
101,320
187,589
(46%)
EPS – Fully diluted
0.07
1.85
(96%)
3.12
5.73
(46%)
EBIT (1)
56,706
91,719
(38%)
295,855
297,251
—%
Adjusted EBITDA (2)
71,142
104,061
(32%)
350,491
342,550
2%
Adjusted EBITDA margin
19.4%
26.7%
21.6%
20.9%
Cash from operating activities
44,704
56,969
(22%)
223,000
167,567
33%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$157,594
$176,065
(10%)
$725,505
$667,804
9%
Gross profit
35,112
81,583
(57%)
274,387
267,862
2%
Operating profit
28,576
69,779
(59%)
217,309
222,590
(2%)
Adjusted EBITDA
55,924
80,347
(30%)
297,190
259,480
15%
AMG Clean Energy Materials’ revenue decreased 10% compared to the fourth quarter of 2022, to $158 million, driven mainly by the 76% and 26% decrease in prices for lithium carbonate and ferrovanadium, respectively, since the fourth quarter of 2022. This price decrease was partially offset by increased volumes in vanadium and lithium. Higher average annual prices for spodumene as well as higher sales volumes of vanadium, lithium concentrate, and tantalum propelled revenue for the segment 9% higher on a full year basis. In 2023, ferrovanadium and tantalum concentrate sales increased 45% and 56%, respectively, versus the prior year.
Gross profit for the quarter decreased 57% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver was the lithium price decline, which fell 76% since the fourth quarter of 2022. Full year gross profit increased 2% compared to 2022, due to the higher prices and volumes noted above.
SG&A expenses of $67 million in 2023 were 47% higher than in 2022, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs, professional fees and research and development costs.
The fourth quarter 2023 adjusted EBITDA decreased 30%, to $56 million, from $80 million in the fourth quarter of 2022, due to the decline in metal prices as noted above. Full year 2023 adjusted EBITDA, however, was 15% higher than in 2022, driven by higher prices and higher volumes as well as the incremental dividend noted below.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualifies for Section 45X which provides a production credit for domestic manufacturing of critical materials from 2023 onwards. Based on preliminary regulations as issued by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. This subsidy is included in gross profit. The ruling is still in the comment period and, as such, is subject to a final determination.
AMG received a $10 million dividend from an equity investment which is included in adjusted EBITDA.
During the fourth quarter of 2023, a total of 29,706 dry metric tons (“dmt”) of lithium concentrates were sold, 39% higher than the 21,329 dmt in the fourth quarter of 2022 due to shipping variances in 2023. The average realized sales price was $1,943/dmt CIF China for the quarter. The average cost per ton for the quarter was $498/dmt CIF China.
During 2023, a total of 95,097 dry metric tons (“dmt”) of lithium concentrates were sold, an increase of 8,384 dmt versus 2022. The average realized sales price for 2023 was $3,160/dmt CIF China, an increase of $355/dmt over 2022. The average cost per ton for 2023 was $475/dmt CIF China.
It is important to note that fourth quarter pricing benefited from the timing lag experienced related to the contractual pricing agreements with our lithium concentrate customers. The prices of lithium concentrate and lithium carbonate have declined 56% and 41%, respectively, since the end of the third quarter 2023.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. AMG is one of the lowest cost lithium concentrate mines in the world and we plan to maintain that position.
AMG Critical Minerals
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$54,903
$69,242
(21%)
$227,696
$364,502
(38%)
Gross (loss) profit
(6)
19,017
N/A
21,953
46,721
(53%)
Operating (loss) profit
(7,407)
10,961
N/A
(6,872)
63,995
N/A
Adjusted EBITDA
1,618
14,001
(88%)
6,947
38,280
(82%)
AMG Critical Minerals’ revenue for the fourth quarter of 2023 decreased by 21%, to $55 million, mainly due to lower volumes largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit in the fourth quarter of 2023 was $19 million lower compared to the same period in 2022, largely due to lower volumes in silicon and antimony in the current quarter.
SG&A expenses in 2023 of $29 million were 4% higher than in 2022 related to an increase in professional fees during the fourth quarter.
The fourth quarter 2023 adjusted EBITDA decreased 88% compared to the same period in 2022, to $2 million, largely driven by the silicon metal plant as well as the slowdown in the end-use markets for the segment in the current quarter. As a result, full year 2023 adjusted EBITDA decreased to $7 million from $38 million in the prior year.
AMG Silicon operated one of four furnaces in the fourth quarter of 2023. We plan to run two of four furnaces for the remainder of 2024. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon’s operations, the financial impact of the business will be excluded from adjusted EBITDA during this period of abnormal operations. However, AMG Silicon generated $26 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$154,738
$144,697
7%
$672,660
$610,468
10%
Gross profit
20,146
19,381
4%
93,091
94,903
(2%)
Operating (loss) profit
(1,666)
1,579
N/A
11,315
20,474
(45%)
Adjusted EBITDA
13,600
9,713
40%
46,354
44,790
3%
AMG Critical Materials Technologies‘ fourth quarter 2023 revenue increased by $10 million, or 7%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of chrome metal and higher sales prices of titanium alloys, partially offset by lower chrome metal pricing. Revenue for the segment in 2023 increased 10% compared to prior year.
SG&A expenses increased by 10% in 2023 compared to 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the increased order backlog and business development, respectively.
AMG Critical Materials Technologies’ adjusted EBITDA was $14 million during the fourth quarter, 40% higher than in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the fourth quarter of 2023.
AMG Engineering signed $27 million in new orders during the fourth quarter of 2023. On a full year basis, AMG signed a record high of $350 million in new orders during 2023, 24% higher than in 2022, representing a 1.27x book to bill ratio. The 2023 order intake was driven by strong orders of remelting and heat treatment furnaces. Order backlog was $295 million as of December 31, 2023.
Financial Review
Tax
AMG recorded an income tax expense of $95 million in 2023, compared to $84 million in 2022. This variance was due to negative movements in the Brazilian real in 2023 as compared to 2022 as well as non-cash deferred tax expenses related to the derecognition of certain tax assets. These tax assets were associated with interest expense carryforwards in our US business as well as loss carryforwards in our German business. These deferred tax expenses were partially offset by the lower profitability in the current quarter relative to the same period in the prior year.
AMG paid taxes of $103 million in 2023, compared to tax payments of $42 million in 2022. The higher cash payments in 2023 were largely a result of the timing lag related to Brazil’s strong performance in late 2022 through the second quarter of 2023.
Exceptional Items
AMG’s fourth quarter and full year 2023 gross profit includes exceptional items, which are not included in the calculation of adjusted EBITDA.
A summary of exceptional items included in gross profit in 2023 and 2022 are below:
Exceptional items included in gross profit
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Gross profit
$55,252
$119,981
(54%)
$389,431
$409,486
(5%)
Inventory cost adjustment
15,260
1,589
860%
26,731
1,589
1,582%
Restructuring expense
6,115
389
1,472%
9,223
582
1,485%
Asset impairment expense (reversal)
9,585
(990)
N/A
8,818
10,597
(17%)
Silicon’s partial closure
(1,854)
—
N/A
(4,502)
—
N/A
Strategic project expense
107
1,201
(91%)
511
5,540
(91%)
Gross profit excluding exceptional items
84,465
122,170
(31%)
430,212
427,794
1%
AMG had $15 million non-cash expense during the fourth quarter of 2023 mainly driven by Lithium GmbH’s inventory cost adjustment of purchased lithium hydroxide which has been excluded in the calculation of adjusted EBITDA.
In mid 2023, AMG initiated a restructuring program to improve efficiencies and reduce headcount. The largest restructuring expenses are in AMG Titanium with $4 million, and in AMG Graphite with a restructuring expense of $1 million in the fourth quarter of 2023.
As a result of the restructuring program, certain non-core assets were also impacted. Asset impairments were recorded due to the retirement of these assets in the fourth quarter of 2023 at AMG Titanium and AMG Graphite of $3 million and $7 million, respectively.
SG&A
AMG’s fourth quarter 2023 SG&A expenses were $46 million compared to $37 million in the fourth quarter of 2022, with the increase largely due to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Full year 2023 SG&A expenses were $178 million, 20% higher than in 2022, due to increased professional fees associated with strategic projects during 2023 as well as higher personnel costs attributable to increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
December 31, 2023
December 31, 2022
Change
Senior secured debt
$337,402
$348,622
(3%)
Cash & cash equivalents
345,308
346,043
—%
Senior secured net (cash) debt
(7,906)
2,579
N/A
Other debt
13,105
14,959
(12%)
Net debt excluding municipal bond
5,199
17,538
(70%)
Municipal bond debt
319,002
319,244
—%
Restricted cash
1,451
6,920
(79%)
Net debt
322,750
329,862
(2%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023.
Net Finance Costs
AMG’s fourth quarter 2023 net finance income was $2 million compared to $4 million of income in the fourth quarter of 2022. This decrease was mainly driven by lower capitalization of interest expense now that the Zanesville plant is fully operational.
Final Dividend Proposal
AMG intends to declare a dividend of €0.60 per ordinary share over the financial year 2023. The interim dividend of €0.40, paid on August 9, 2023, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.20.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 8, 2024.
Outlook
Our ongoing cost reduction and efficiency programs will reduce our headcount by approximately 200 which will essentially be offset by the ramp-up of our expansions in Germany and Brazil, as well as the growth in our LIVA and Engineering businesses.
Capital expenditures for 2024 are expected to be approximately $125 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.
AMG has no expected financing needs in 2024. AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $540 million can fully fund all of the approved capital expansion projects and all other financial obligations.
AMG’s two main lithium expansion projects are heading towards completion: our lithium concentrate expansion project from 90,000 tons to 130,000 tons in Brazil and module 1 of our lithium hydroxide refinery in Germany. We are reviewing our resource development projects and all other expansion activities in light of the present market conditions.
Regarding 2024 outlook, from the lithium concentrate and lithium carbonate market price highs in November 2022 of $6,110 per ton and $84,062 per ton, respectively, prices have each declined by 84%.
On November 8, 2023, we indicated an adjusted EBITDA for 2024 of approximately $200 million excluding any profitability from our Bitterfeld lithium hydroxide refinery and utilizing contemporary pricing. Since then, market prices for spodumene and lithium carbonate have declined 50% and 39%, respectively. Utilizing today’s price levels, lithium profitability will be $60 million lower and vanadium profitability will be $10 million lower, therefore AMG’s 2024 adjusted EBITDA will be approximately $130 million.
Our analysis of the long-term supply and demand trends in lithium gives us confidence that the present low prices are unsustainable.
Segmental Realignment
The Company has changed its organizational structure effective January 1, 2024, and will therefore report financials for the new segments starting in the first quarter of 2024. This change results in three reporting segments: AMG Lithium, AMG Vanadium, and AMG Technologies. Each of these segments have very specific trends and business models, and require very different management skill sets.
AMG’s 2023 pro forma segmental information for AMG Lithium, AMG Vanadium, and AMG Technologies is shown below:
AMG Lithium
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$130,668
$133,473
$62,346
$82,085
$408,572
Gross profit
92,013
90,006
26,769
20,569
229,357
Operating profit
83,589
79,904
16,390
7,900
187,783
Adjusted EBITDA
89,799
86,345
29,638
30,758
236,540
AMG Vanadium
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$194,280
$180,870
$174,436
$161,652
$711,238
Gross profit
26,424
17,227
17,182
16,237
77,070
Operating profit (loss)
13,103
(3,217)
3,539
13,524
26,949
Adjusted EBITDA
20,331
15,693
15,067
29,520
80,611
AMG Technologies
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$125,642
$124,976
$131,935
$123,498
$506,051
Gross profit
21,405
20,301
22,852
18,446
83,004
Operating profit (loss)
3,331
1,480
4,130
(1,921)
7,020
Adjusted EBITDA
7,981
5,415
9,080
10,864
33,340
Profit for the period to adjusted EBITDA reconciliation
Q4 ‘23
Q4 ‘22
FY ‘23
FY ‘22
Profit for the period
$1,266
$62,669
$102,288
$190,771
Income tax expense
19,958
23,827
95,002
84,097
Net finance (income) cost
(2,455)
(4,177)
20,739
30,941
Equity-settled share-based payment transactions
1,443
1,414
5,799
5,552
Restructuring expense
6,115
389
9,223
582
Pension adjustment
(1,410)
—
5,290
—
Net contract settlements
—
971
—
(45,436)
Silicon’s partial closure
(966)
—
(1,520)
—
Inventory cost adjustment
15,260
1,589
26,731
1,589
Asset impairment expense (reversal)
9,585
(990)
8,818
10,597
Strategic project expense (1)
6,777
5,885
19,179
17,070
Share of loss of associates
734
—
3,723
1,250
Others
399
142
583
238
EBIT
56,706
91,719
295,855
297,251
Depreciation and amortization
14,436
12,342
54,636
45,299
Adjusted EBITDA
71,142
104,061
350,491
342,550
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Consolidated Income Statement
For the quarter ended December 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
367,235
390,004
Cost of sales
(311,983)
(270,023)
Gross profit
55,252
119,981
Selling, general and administrative expenses
(45,582)
(36,579)
Other expenses
(313)
(1,083)
Other income
10,146
—
Net other operating income (expense)
9,833
(1,083)
Operating profit
19,503
82,319
Finance income
15,222
5,459
Finance cost
(12,767)
(1,282)
Net finance income
2,455
4,177
Share of loss of associates and joint ventures
(734)
—
Profit before income tax
21,224
86,496
Income tax expense
(19,958)
(23,827)
Profit for the period
1,266
62,669
Profit attributable to:
Shareholders of the Company
2,173
60,697
Non-controlling interests
(907)
1,972
Profit for the period
1,266
62,669
Basic earnings per share
Basic earnings per share
0.07
1.90
Diluted earnings per share
0.07
1.85
AMG Critical Materials N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Continuing operations
Revenue
1,625,861
1,642,774
Cost of sales
(1,236,430)
(1,233,288)
Gross profit
389,431
409,486
Selling, general and administrative expenses
(178,162)
(147,963)
Other expenses
(313)
(14,544)
Other income
10,796
60,080
Net other operating income
10,483
45,536
Operating profit
221,752
307,059
Finance income
28,989
9,061
Finance cost
(49,728)
(40,002)
Net finance cost
(20,739)
(30,941)
Share of loss of associates and joint ventures
(3,723)
(1,250)
Profit before income tax
197,290
274,868
Income tax expense
(95,002)
(84,097)
Profit for the period
102,288
190,771
Profit attributable to:
Shareholders of the Company
101,320
187,589
Non-controlling interests
968
3,182
Profit for the period
102,288
190,771
Earnings per share
Basic earnings per share
3.15
5.87
Diluted earnings per share
3.12
5.73
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
In thousands of US dollars
December 31, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
921,178
797,611
Goodwill and other intangible assets
40,313
41,404
Derivative financial instruments
22,847
33,042
Equity-accounted investees
18,266
—
Other investments
38,160
29,324
Deferred tax assets
26,882
37,181
Restricted cash
387
5,875
Other assets
12,060
8,612
Total non-current assets
1,080,093
953,049
Inventories
260,945
277,311
Derivative financial instruments
3,397
3,516
Trade and other receivables
164,027
162,548
Other assets
100,128
121,834
Current tax assets
7,845
7,289
Restricted cash
1,064
1,045
Cash and cash equivalents
345,308
346,043
Total current assets
882,714
919,586
Total assets
1,962,807
1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
December 31, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,593)
(14,685)
Other reserves
(52,269)
(44,869)
Retained earnings (deficit)
70,077
(4,461)
Equity attributable to shareholders of the Company
561,783
490,553
Non-controlling interests
44,220
27,296
Total equity
606,003
517,849
Liabilities
Loans and borrowings
656,265
661,270
Lease liabilities
46,629
44,224
Employee benefits
133,333
117,160
Provisions
17,951
12,361
Deferred revenue
17,836
20,000
Other liabilities
4,784
15,009
Derivative financial instruments
27
284
Deferred tax liabilities
6,664
27,269
Total non-current liabilities
883,489
897,577
Loans and borrowings
5,566
15,164
Lease liabilities
5,725
4,710
Short-term bank debt
7,678
6,391
Deferred revenue
14,083
28,277
Other liabilities
77,052
69,917
Trade and other payables
259,339
240,101
Derivative financial instruments
2,828
7,746
Advance payments from customers
60,561
51,054
Current tax liability
24,279
23,548
Provisions
16,204
10,301
Total current liabilities
473,315
457,209
Total liabilities
1,356,804
1,354,786
Total equity and liabilities
1,962,807
1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Cash from operating activities
Profit for the period
102,288
190,771
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
95,002
84,097
Depreciation and amortization
54,636
45,299
Asset impairment expense
8,818
10,597
Net finance cost
20,739
30,941
Share of loss of associates and joint ventures
3,723
1,250
Loss (gain) on sale or disposal of property, plant and equipment
145
(592)
Equity-settled share-based payment transactions
5,799
5,552
Movement in provisions, pensions, and government grants
(2,137)
(11,982)
Working capital and deferred revenue adjustments
58,187
(123,281)
Cash generated from operating activities
347,200
232,652
Finance costs paid, net
(21,028)
(23,289)
Income tax paid
(103,172)
(41,796)
Net cash from operating activities
223,000
167,567
Cash used in investing activities
Proceeds from sale of property, plant and equipment
39
2,538
Acquisition of property, plant and equipment and intangibles
(153,377)
(174,516)
Investments in associates and joint ventures
(21,989)
(1,250)
Use of restricted cash
5,469
86,514
Interest received on restricted cash
30
250
Capitalized borrowing cost paid
(15,519)
(16,652)
Other
3
12
Net cash used in investing activities
(185,344)
(103,104)
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
1,395
82
Repayment of borrowings
(15,995)
(33,863)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(28,212)
(19,885)
Payment of lease liabilities
(5,764)
(5,101)
Advanced contributions
—
11,000
Contributions by non-controlling interests
14,000
—
Net cash used in financing activities
(41,536)
(49,290)
Net (decrease) increase in cash and cash equivalents
(3,880)
15,173
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
3,145
(7,007)
Cash and cash equivalents at December 31
345,308
346,043
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG’s Lithium segment spans the lithium value chain, reducing the CO2 footprint of both suppliers and customers. AMG’s Vanadium segment is the world’s market leader in recycling vanadium from oil refining residues, spanning the Company’s vanadium, titanium, and chrome businesses. AMG’s Technologies segment is the established world market leader in advanced metallurgy and provides equipment engineering to the aerospace engine sector globally. It serves as the engineering home for the Company’s fast-growing LIVA batteries, and spans AMG’s mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 8 November 2023(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported third quarter 2023 revenue of $369 million, a 13% decrease versus the third quarter of 2022. Third quarter 2023 EBITDA of $54 million decreased 48% compared to the third quarter of 2022.
Cash from operating activities was $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
In 000’s US dollars
Q3 ‘23
Q3 ‘22
Change
YTD Sept ‘23
YTD Sept ‘22
Change
Revenue
$368,717
$424,813
(13%)
$1,258,626
$1,252,770
—%
EBITDA (1)
53,785
102,603
(48%)
279,349
238,489
17%
Cash from operating activities
24,926
74,747
(67%)
178,296
110,598
61%
Return on Capital Employed
28.4%
29.5%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “The 48% decrease in EBITDA compared to the third quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium have decreased over 50% and 29%, respectively, versus the average pricing in the third quarter of 2022. On a year-to-date basis, however, EBITDA has increased 17% compared to the first nine months of 2022.
We ended the third quarter in a $320 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity during the quarter. As of September 30, 2023, the Company had $347 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $542 million of total liquidity as of September 30, 2023. In today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $81 million in new orders during the third quarter of 2023, 51% higher year-to-date in 2023 than in the same period in 2022, driven by strong orders of remelting and heat treatment furnaces, representing a 1.02x book to bill ratio. AMG’s order backlog was $341 million as of September 30, 2023, the highest in AMG’s history for the second straight quarter. This is largely driven by the aerospace market, which is experiencing strong growth. Our third quarter 2023 order intake remains at a very high level, reaching $323 million year-to-date.”
Strategic Highlights
The Supervisory Board has authorized the implementation of a new corporate structure, which will be operational January 1, 2024. The present segmental reporting structure will be replaced by three corporate entities: AMG Lithium BV, AMG Vanadium BV, and AMG Technologies (AG/GmbH). Each entity will have its own leadership team and operating management.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “The three new 100% owned subsidiaries AMG Lithium, AMG Vanadium, and AMG Technologies, have very specific trends and business models, and require very different management skill sets. They will each be managed by newly installed Management Boards, which will exercise their control through respective Supervisory Boards that will reflect corporate governance principles that currently apply to AMG Critical Materials NV.
This updated structure will enable AMG to realize strategic, operational, and risk management synergies that will improve decision making, as well as strengthen the resiliency of the organization. This new structure will decrease the potential for overreliance on individual executives, improve succession planning, and improve collaboration throughout the organization. Additionally, the new structure will create strategic flexibility for various forms of equity diversification.”
Lithium
In Brazil, the lithium concentrate plant shutdown to facilitate the expansion from 90,000 tons to 130,000 tons will take place in the first quarter of 2024 due to delivery delays of electronic components for processing automation. This will negatively impact second quarter sales volumes. We expect to produce at full run rate capacity, which is 130,000 tons per year, starting in the third quarter of 2024.
AMG Brazil’s project with Grupo Lagoa will begin basic engineering in December 2023. From present data, we conclude that the plant will confirm the main assumptions for the construction of a 150,000-ton lithium concentrate plant at the site.
AMG’s lithium hydroxide refinery’s first 20,000-ton module in Bitterfeld, Germany, is in the initial phases of commissioning and the ramp-up and the qualification process is planned for the second and third quarters of 2024. We expect to produce approximately 7,000 tons of qualified battery-grade lithium hydroxide in 2024 which is not included in our EBITDA guidance for 2024. We expect to produce and sell a full 20,000 tons in 2025.
Vanadium
The spent catalyst roasting facility in Zanesville, Ohio operated at full capacity for the third quarter and outperformed our roasting facility in Cambridge, Ohio. The Zanesville melt shop has operated at full capacity utilization and the Vanadium team is focused on increasing operational availability, optimizing cycle time and increasing yield.
AMG’s innovative lithium vanadium battery (“LIVA”) projects are integral for industrial power management applications and accelerate the industrial energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are under construction, and 13 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 379 MWh.
The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. Production is expected to start in the first quarter of 2024.
Applying a newly developed process technology, AMG Titanium in Nuremberg, Germany has started to process spent roasted catalyst to V2O5.
Shell & AMG Recycling’s (“SARBV”) project development of a closed loop circular recycling facility in the Middle East is progressing. Phase I of the “Supercenter” project, a hydrometallurgical facility to process vanadium-containing gasification ash, is under a long-term contract with Aramco. The gasification ash will be processed into vanadium oxide and then to vanadium electrolytes for use in batteries in the Kingdom of Saudi Arabia. Phase I is expected to reach FEL3 status by the end of the year. The “Supercenter” concept also includes spent catalyst recycling projects, fresh catalyst production, and the manufacturing of vanadium batteries. The Phase I facility will also produce 6,000 m³ of electrolyte, which will support 100 MWh of vanadium redox flow battery capacity annually. In addition, a LIVA Hybrid Energy Storage System and a Fresh Catalyst R&D facility will be part of Phase 1.
Financial Highlights
Cash from operating activities was $25 million in the third quarter of 2023, and $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
AMG’s liquidity as of September 30, 2023 was $542 million, with $347 million of unrestricted cash and $195 million of revolving credit availability.
Annualized return on capital employed was 28.4% for the first nine months of 2023, compared to 29.5% for the same period in 2022.
AMG Engineering’s order backlog of $341 million as of September 30, 2023, the highest in AMG’s history, was driven primarily by the aerospace industry.
Key Figures
In 000’s US dollars
Q3 ‘23
Q3 ‘22
Change
YTD Sept ‘23
YTD Sept ‘22
Change
Revenue
$368,717
$424,813
(13%)
$1,258,626
$1,252,770
—%
Gross profit
66,803
112,071
(40%)
334,179
289,505
15%
Gross margin
18.1%
26.4%
26.6%
23.1%
Operating profit
24,059
121,680
(80%)
202,249
224,740
(10%)
Operating margin
6.5%
28.6%
16.1%
17.9%
Net income attributable to shareholders
163
68,146
N/A
99,147
126,892
(22%)
EPS – Fully diluted
0.00
2.09
N/A
3.04
3.91
(22%)
EBIT (1)
40,225
91,536
(56%)
239,149
205,532
16%
EBITDA (2)
53,785
102,603
(48%)
279,349
238,489
17%
EBITDA margin
14.6%
24.2%
22.2%
19.0%
Cash from operating activities
24,926
74,747
(67%)
178,296
110,598
61%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q3 ‘23
Q3 ‘22
Change
Revenue
$140,344
$188,318
(25%)
Gross profit
34,333
86,454
(60%)
Operating profit
18,712
74,888
(75%)
EBITDA
39,155
83,674
(53%)
AMG Clean Energy Materials’ revenue decreased 25% compared to the third quarter of 2022, to $140 million, driven mainly by decreased prices in both lithium and vanadium as well as lower volumes in lithium concentrate, partially offset by increased volumes in vanadium. Ferrovanadium production increased 48% versus the third quarter of 2022.
Gross profit for the quarter decreased 60% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver is the lithium price decline. Also, vanadium gross profit was lower due to fixed price inventory being processed from global sources. All other existing contracts are under indexed prices. We are working towards long-term contracts similar to our Cambridge model.
SG&A expenses in the third quarter of 2023 were higher than the same period in 2022 at $15 million, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs.
The third quarter 2023 EBITDA decreased 53%, to $39 million, from $84 million in the third quarter of 2022, due to the decline in metal prices as noted above.
During the third quarter of 2023, a total of 16,012 dry metric tons (“dmt”) of lithium concentrates was sold. The third quarter experienced lower sales volumes due to shipping schedule variances noted in the second quarter. The average realized sales price was $2,395/dmt CIF China for the quarter. The average cost per ton for the quarter was $529/dmt CIF China. The cost per ton is lower than the second quarter due to higher sales volumes of tantalum concentrate in the current quarter.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. It is important to note that AMG is one of the lowest cost mines in the world and we plan to maintain that position.
AMG Critical Minerals
Q3 ‘23
Q3 ‘22
Change
Revenue
$52,593
$84,935
(38%)
Gross profit
6,887
674
922%
Operating (loss) profit
(269)
40,301
N/A
EBITDA
1,247
7,327
(83%)
AMG Critical Minerals’ revenue for the third quarter of 2023 decreased by 38%, to $53 million, mainly due to lower volumes across the segment largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit of $7 million in the third quarter of 2023 was $6 million higher compared to the same period last year, largely due to the significant increases in gas and electricity costs experienced in the third quarter of 2022.
SG&A expenses in the third quarter of 2023 of $7 million were in line with the same period in 2022.
The third quarter 2023 EBITDA decreased 83% compared to the same period in 2022, to $1 million, due to silicon shutdown as well as the slowdown in the end-use markets for the segment in the current quarter.
AMG Silicon operated one of four furnaces throughout the third quarter and plans to operate one furnace for the remainder of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon’s operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $10 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q3 ‘23
Q3 ‘22
Change
Revenue
$175,780
$151,560
16%
Gross profit
25,583
24,943
3%
Operating profit
5,616
6,491
(13%)
EBITDA
13,383
11,602
15%
AMG Critical Materials Technologies‘ third quarter 2023 revenue increased by $24 million, or 16%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of titanium alloys and chrome metal, partially offset by lower chrome metal pricing.
SG&A expenses increased by 10% in the third quarter of 2023 compared to the same period in 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the record order backlog and business development, respectively.
AMG Critical Materials Technologies’ EBITDA was $13 million during the quarter compared to $12 million in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the third quarter of 2023.
AMG Engineering signed $81 million in new orders during the third quarter of 2023, driven by strong orders of remelting and heat treatment furnaces, representing a 1.02x book to bill ratio. Order backlog was $341 million as of September 30, 2023, the highest in AMG’s history.
AMG Engineering has been selected by PCC’s TIMET to supply the vacuum melting and re-melting furnaces for their new, state-of-the-art Titanium melt facility in Ravenswood, West Virginia. AMG’s scope includes several vacuum arc re-melting, electron beam welding, and electron beam melting furnaces, signifying one of the largest orders in all of AMG Engineering’s history.
Financial Review
Tax
AMG recorded an income tax expense of $13 million in the third quarter of 2023, compared to $39 million in the same period in 2022. This variance was mainly driven by lower profitability in the current quarter.
AMG paid taxes of $33 million in the third quarter of 2023, compared to tax payments of $10 million in the third quarter of 2022, primarily due to the timing lag in tax payments relative to tax expense recognition.
Exceptional Items
AMG’s third quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the third quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q3 ‘23
Q3 ‘22
Change
Gross profit
$66,803
$112,071
(40%)
Inventory cost adjustment
1,388
—
N/A
Restructuring expense
2,745
11
N/A
Asset impairment expense
—
11,587
N/A
Strategic project expense
4,924
1,241
297%
Gross profit excluding exceptional items
75,860
124,910
(39%)
AMG Vanadium had a $1.3 million non-cash expense during the third quarter of 2023. This is a result of inventory cost adjustments associated with declining prices and an increased inventory position of spent catalyst as we diversify our sourcing strategy which has been adjusted in EBITDA.
SG&A
AMG’s third quarter 2023 SG&A expenses were $43 million compared to $37 million in the third quarter of 2022, with the increase largely attributable to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
September 30, 2023
December 31, 2022
Change
Senior secured debt
$337,952
$348,622
(3%)
Cash & cash equivalents
347,293
346,043
—%
Senior secured net (cash) debt
(9,341)
2,579
N/A
Other debt
12,170
14,959
(19%)
Net debt excluding municipal bond
2,829
17,538
(84%)
Municipal bond debt
319,064
319,244
—%
Restricted cash
1,428
6,920
(79%)
Net debt
320,465
329,862
(3%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the third quarter. As of September 30, 2023, the Company had $347 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $542 million of total liquidity as of September 30, 2023.
Net Finance Costs
AMG’s third quarter 2023 net finance cost was $9 million compared to $14 million in the third quarter of 2022. This decrease was mainly driven by foreign exchange gains of $3 million during the quarter primarily due to non-cash intergroup balances and higher interest income earned on an increased cash and cash equivalents balance in the third quarter 2023 compared to the third quarter of 2022. Additionally, in today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities. AMG has an average interest rate charge across its two main debt instruments of 5%.
Outlook
Since the end of July when we issued the previous 2023 EBITDA guidance of between $350 million and $380 million, market prices for spodumene and lithium carbonate have decreased by 50% and 43%, respectively. Given these price decreases, AMG’s new EBITDA guidance for the full year 2023 is approximately $320 million.
Considering the ramp-up of the strategic projects explained above, as well as the volatility of our key material prices, specifically lithium, it is challenging to provide firm guidance for 2024. The recent fall in lithium prices has surprised every industry participant. Establishing the cause of the fall in prices and projecting future movements involves analyzing both the Chinese lithium industry as well as broader macroeconomic factors in China.
Given the difficulty of this analysis, and despite certain signs that the lithium supply and demand picture remains strong, there is high uncertainty with regard to near-term pricing dynamics. Therefore, utilizing today’s depressed price levels, AMG’s EBITDA will be approximately $200 million in 2024 with a stronger performance in the second half of the year.
Profit for the period to adjusted EBITDA reconciliation
Q3 ‘23
Q3 ‘22
Profit for the period
$1,002
$68,339
Income tax expense
12,565
38,603
Net finance cost
9,295
13,988
Equity-settled share-based payment transactions
1,392
1,386
Restructuring expense
2,745
11
Net contract settlements
—
(46,407)
Silicon’s partial closure
(739)
—
Inventory cost adjustment
1,388
—
Asset impairment expense
—
11,587
Strategic project expense (1)
11,196
3,282
Share of loss of associates
1,197
750
Others
184
(3)
EBIT
40,225
91,536
Depreciation and amortization
13,560
11,067
EBITDA
53,785
102,603
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
368,717
424,813
Cost of sales
(301,914)
(312,742)
Gross profit
66,803
112,071
Selling, general and administrative expenses
(42,800)
(36,888)
Other income, net
56
46,497
Net other operating income
56
46,497
Operating profit
24,059
121,680
Finance income
5,676
1,222
Finance cost
(14,971)
(15,210)
Net finance cost
(9,295)
(13,988)
Share of loss of associates and joint ventures
(1,197)
(750)
Profit before income tax
13,567
106,942
Income tax expense
(12,565)
(38,603)
Profit for the period
1,002
68,339
Profit attributable to:
Shareholders of the Company
163
68,146
Non-controlling interests
839
193
Profit for the period
1,002
68,339
Basic earnings per share
Basic earnings per share
0.01
2.13
Diluted earnings per share
0.00
2.09
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
1,258,626
1,252,770
Cost of sales
(924,447)
(963,265)
Gross profit
334,179
289,505
Selling, general and administrative expenses
(132,580)
(111,384)
Other income, net
650
46,619
Net other operating income
650
46,619
Operating profit
202,249
224,740
Finance income
14,843
3,602
Finance cost
(38,037)
(38,720)
Net finance cost
(23,194)
(35,118)
Share of loss of associates and joint ventures
(2,989)
(1,250)
Profit before income tax
176,066
188,372
Income tax expense
(75,044)
(60,270)
Profit for the period
101,022
128,102
Profit attributable to:
Shareholders of the Company
99,147
126,892
Non-controlling interests
1,875
1,210
Profit for the period
101,022
128,102
Earnings per share
Basic earnings per share
3.08
3.97
Diluted earnings per share
3.04
3.91
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
September 30, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
878,166
797,611
Goodwill and other intangible assets
40,113
41,404
Derivative financial instruments
32,532
33,042
Equity-accounted investees
16,950
—
Other investments
31,095
29,324
Deferred tax assets
38,524
37,181
Restricted cash
370
5,875
Other assets
10,989
8,612
Total non-current assets
1,048,739
953,049
Inventories
262,763
277,311
Derivative financial instruments
2,065
3,516
Trade and other receivables
173,506
162,548
Other assets
107,668
121,834
Current tax assets
6,792
7,289
Restricted cash
1,058
1,045
Cash and cash equivalents
347,293
346,043
Total current assets
901,145
919,586
Total assets
1,949,884
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
September 30, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(45,148)
(44,869)
Retained earnings (deficit)
77,610
(4,461)
Equity attributable to shareholders of the Company
576,300
490,553
Non-controlling interests
35,213
27,296
Total equity
611,513
517,849
Liabilities
Loans and borrowings
657,544
661,270
Lease liabilities
43,548
44,224
Employee benefits
124,819
117,160
Provisions
12,847
12,361
Deferred revenue
17,246
20,000
Other liabilities
3,801
15,009
Derivative financial instruments
224
284
Deferred tax liabilities
15,974
27,269
Total non-current liabilities
876,003
897,577
Loans and borrowings
5,497
15,164
Lease liabilities
5,149
4,710
Short-term bank debt
6,145
6,391
Deferred revenue
23,294
28,277
Other liabilities
73,064
69,917
Trade and other payables
249,598
240,101
Derivative financial instruments
3,986
7,746
Advance payments from customers
60,181
51,054
Current tax liability
20,569
23,548
Provisions
14,885
10,301
Total current liabilities
462,368
457,209
Total liabilities
1,338,371
1,354,786
Total equity and liabilities
1,949,884
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from operating activities
Profit for the period
101,022
128,102
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
75,044
60,270
Depreciation and amortization
40,200
32,957
Asset impairment (reversal) expense
(767)
11,587
Net finance cost
23,194
35,118
Share of loss of associates and joint ventures
2,989
1,250
Loss on sale or disposal of property, plant and equipment
33
12
Equity-settled share-based payment transactions
4,356
4,138
Movement in provisions, pensions, and government grants
8,470
(7,532)
Working capital and deferred revenue adjustments
31,609
(113,601)
Cash generated from operating activities
286,150
152,301
Finance costs paid, net
(19,163)
(19,014)
Income tax paid
(88,691)
(22,689)
Net cash from operating activities
178,296
110,598
Cash used in investing activities
Proceeds from sale of property, plant and equipment
34
151
Acquisition of property, plant and equipment and intangibles
(109,540)
(134,244)
Investments in associates and joint ventures
(19,939)
(1,250)
Use of restricted cash
5,492
76,365
Interest received on restricted cash
30
179
Capitalized borrowing cost paid
(11,583)
(15,307)
Other
4
12
Net cash used in investing activities
(135,502)
(74,094)
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
57
83
Repayment of borrowings
(14,355)
(23,948)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(28,212)
(19,885)
Payment of lease liabilities
(4,098)
(3,738)
Contributions by non-controlling interests
14,000
—
Net cash used in financing activities
(39,568)
(49,011)
Net increase (decrease) in cash and cash equivalents
3,226
(12,507)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
(1,976)
(18,954)
Cash and cash equivalents at September 30
347,293
306,416
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 26July 2023(Regulated Information)— AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) declares an interim dividend of €0.40 per ordinary share, from an interim dividend of €0.30 per ordinary share in the prior year.
The interim dividend of €0.40 per ordinary share, in respect of the period from January 1, 2023 to June 30, 2023, is payable on August 9, 2023 to shareholders of record as of August 1, 2023. The ex-dividend date will be July 31, 2023. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 26 July 2023(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported second quarter 2023 revenue of $439 million, a 4% increase versus the second quarter of 2022. Second quarter 2023 EBITDA of $107 million was 32% higher than the second quarter of 2022.
In 000’s US dollars
Q2 ‘23
Q2 ‘22
Change
Revenue
$439,319
$424,094
4%
EBITDA (1)
107,453
81,126
32%
Cash from operating activities
59,975
39,505
52%
Net income attributable to shareholders
42,763
29,631
44%
EPS – Fully diluted
1.28
0.91
Return on Capital Employed
35.7%
25.5%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “This is the fourth straight quarter in which AMG has exceeded $100 million of EBITDA. The $26 million, or 32%, EBITDA increase over the second quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium’s Brazilian operation with an EBITDA contribution of $89 million.
AMG’s liquidity as of June 30, 2023 was $586 million, with $391 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay an interim 2023 dividend of €0.40 per ordinary share on or around August 9, 2023, to shareholders of record on August 1, 2023.
AMG Engineering signed $167 million in new orders during the second quarter of 2023, driven by strong orders of remelting and induction furnaces, representing a 2.48x book to bill ratio. AMG’s order backlog of $337 million as of June 30, 2023, which is the highest in AMG’s history. This is largely driven by the US aerospace market. Our second quarter 2023 US order intake has essentially doubled from our second quarter 2022 US order intake.
We continue to drive our lithium strategy forward and are pleased to announce that we have signed a mandate letter with KfW IPEX-Bank GmbH and with Citi to structure and arrange the financing for the construction of our proposed technical-grade lithium chemical plant in Brazil. The financing structure is expected to cover all the funding requirements and be supported by Euler Hermes (the German Export Credit Agency representing its government) under its Untied Loan Guarantee program for projects which deliver critical raw materials into Germany. This proposed financing is a cornerstone of our lithium strategy to be the premier supplier of battery-grade lithium hydroxide in Europe, and another important step towards an independent and sustainable lithium supply chain for Europe. In addition, this project conforms with AMG Brazil’s commitment to upgrade its operations to produce a higher value product, while significantly contributing to reducing CO2 emissions by lowering total volumes shipped.”
Strategic Highlights
Lithium
The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
AMG signed a mandate letter with KfW IPEX-Bank GmbH and Citi to structure and arrange the financing for the construction of our proposed technical-grade lithium chemical plant in Brazil. The financing structure is expected to cover all the funding requirements and be supported by Euler Hermes (the German Export Credit Agency representing its government) under its Untied Loan Guarantee program for projects which deliver critical raw materials into Germany. This proposed financing is a cornerstone of our strategy to be the premier supplier of battery-grade lithium hydroxide in Europe.
AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is expected to start commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
AMG Lithium signed a non-binding memorandum of understanding (“MOU”) in May 2023 with Fortum Battery Recycling Oy (“Fortum”), a Nordic clean energy provider. Fortum’s new commercial scale hydrometallurgical plant is able to efficiently recover valuable metals from old electric vehicle lithium-ion batteries. The lithium product recovered by Fortum will be delivered to AMG Lithium for further processing.
Vanadium
The new vanadium spent catalyst recycling facility in Zanesville, Ohio, is currently running at full capacity and targeting full run rate production for the second half of 2023.
AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are under various stages of construction.
In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
Shell & AMG Recycling B.V. (“SARBV”) project development in the Middle East are progressing. The Supercenter project in the Kingdom of Saudi Arabia is completing the FEL3 feasibility study later this year.
Financial Highlights
Revenue increased by 4% to $439 million in the second quarter of 2023 from $424 million in the second quarter of 2022.
EBITDA was $107 million in the second quarter of 2023, up 32% versus the second quarter 2022 EBITDA of $81 million.
Annualized return on capital employed was 35.7% for the first six months of 2023, compared to 25.5% for the same period in 2022.
Cash from operations was $60 million for the second quarter of 2023, compared to $40 million in the second quarter of 2022, driven by the high profitability of AMG Lithium in Brazil.
Net income attributable to shareholders for the second quarter of 2023 was $43 million, yielding $1.28 diluted earnings per share compared to $0.91 in the same period in 2022.
AMG’s liquidity as of June 30, 2023 was $586 million, with $391 million of unrestricted cash and $195 million of revolving credit availability.
AMG declares an interim dividend of €0.40 per ordinary share, to be paid in the third quarter of 2023.
Key Figures
In 000’s US dollars
Q2 ‘23
Q2 ‘22
Change
Revenue
$439,319
$424,094
4%
Gross profit
127,534
102,240
25%
Gross margin
29.0%
24.1%
Operating profit
78,167
65,246
20%
Operating margin
17.8%
15.4%
Net income attributable to shareholders
42,763
29,631
44%
EPS – Fully diluted
1.28
0.91
41%
EBIT (1)
93,780
69,763
34%
EBITDA (2)
107,453
81,126
32%
EBITDA margin
24.5%
19.1%
Cash from operating activities
59,975
39,505
52%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q2 ‘23
Q2 ‘22
Change
Revenue
$208,487
$159,762
30%
Gross profit
95,985
60,821
58%
Operating profit
74,378
49,704
50%
EBITDA
95,974
58,232
65%
AMG Clean Energy Materials’ revenue increased 30% compared to the second quarter of 2022, to $208 million, driven mainly by increased sales volumes and increased prices in lithium concentrates.
Gross profit for the quarter increased 58% compared to the same period in the prior year, primarily due to the higher sales volumes across the segment as well as higher lithium pricing.
SG&A expenses in the second quarter of 2023 were higher than the same period in 2022 at $21 million, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs.
The second quarter 2023 EBITDA increased 65%, to $96 million, from $58 million in the second quarter of 2022, due to the improved gross profit as noted above.
AMG Vanadium’s production was negatively impacted by a defective fan provided by a supplier at our new Zanesville facility. AMG has commenced an arbitration claim seeking compensatory damages, which include costs incurred and lost profitability.
During the second quarter of 2023, a total of 28,870 dry metric tons (“dmt”) of lithium concentrates was sold. The second quarter experienced increased sales volumes due to shipping schedule variances which will negatively impact the third quarter. The average realized sales price was $3,633/dmt CIF China for the quarter. The average cost per ton for the quarter was $547/dmt CIF China. The cost per ton is higher than the first quarter due to lower volumes and pricing in tantalum concentrate in the quarter. The additional lithium concentrate shipments and slightly higher costs in tantalum concentrate resulted in quarterly EBITDA for AMG Brazil of $89 million.
AMG Critical Minerals
Q2 ‘23
Q2 ‘22
Change
Revenue
$57,271
$103,416
(45%)
Gross profit
7,806
14,028
(44%)
Operating profit
169
7,086
(98%)
EBITDA
1,532
9,069
(83%)
AMG Critical Minerals’ revenue for the second quarter of 2023 decreased by 45%, to $57 million, mainly due to lower volumes across the segment largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.
Gross profit of $8 million in the second quarter was 44% lower compared to the second quarter of 2022, largely due to the lower volumes in the current quarter.
SG&A expenses in the second quarter of 2023 increased by 8%, to $8 million, compared to the same period in 2022. This was largely driven by higher professional fees in the current quarter.
The second quarter 2023 EBITDA decreased 83% compared to the same period in 2022, to $2 million, due to the lower gross profit as noted above.
AMG Silicon operated one of four furnaces throughout the second quarter and plans to operate one furnace for the remainder of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $9 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q2 ‘23
Q2 ‘22
Change
Revenue
$173,561
$160,916
8%
Gross profit
23,743
27,391
(13%)
Operating profit
3,620
8,456
(57%)
EBITDA
9,947
13,825
(28%)
AMG Critical Materials Technologies‘ second quarter 2023 revenue increased by $13 million, or 8%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of titanium alloys and chrome metal, partially offset by lower chrome metal pricing.
SG&A expenses increased by 8% in the second quarter of 2023 compared to the same period in 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the record order backlog and business development, respectively.
AMG Critical Materials Technologies’ EBITDA was $10 million during the quarter compared to $14 million in the same period of 2022. The decrease was primarily due to lower chrome prices in the second quarter of 2023 partially offset by higher profitability in Engineering and Titanium.
AMG Engineering signed $167 million in new orders during the second quarter of 2023, driven by strong orders of remelting and induction furnaces, representing a 2.48x book to bill ratio. Order backlog was $337 million as of June 30, 2023, the highest in AMG’s history.
Financial Review
Tax
AMG recorded an income tax expense of $27 million in the second quarter of 2023, compared to $23 million in the same period in 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation, offset by US tax expense and movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax benefit in the second quarter of 2023, compared to a $4 million tax expense in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $35 million in the second quarter of 2023, compared to tax payments of $9 million in the second quarter of 2022. The higher cash taxes in the current quarter were a result of tax payments tracking the consistent upward trend in Brazil results.
Exceptional Items
AMG’s second quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the second quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q2 ‘23
Q2 ‘22
Change
Gross profit
$127,534
$102,240
25%
Inventory cost adjustment
3,678
—
N/A
Restructuring expense
626
41
1427%
Silicon’s partial closure
(1,011)
—
N/A
Strategic project (reversal) expense
(55)
833
N/A
Gross profit excluding exceptional items
130,772
103,114
27%
AMG Vanadium had a $3.7 million non-cash expense during the second quarter of 2023. This is a result of inventory cost adjustments associated with declining prices and inventory specification issues due to the acquisition and testing of global refinery waste which has been adjusted in EBITDA.
SG&A
AMG’s second quarter 2023 SG&A expenses were $49 million compared to $37 million in the second quarter of 2022, with the increase largely attributable to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses. It was also driven by a one-time pension expense of $6.7 million due to the restructuring of executive employee benefit plans.
Liquidity
June 30, 2023
December 31, 2022
Change
Senior secured debt
$338,505
$348,622
(3%)
Cash & cash equivalents
391,251
346,043
13%
Senior secured net (cash) debt
(52,746)
2,579
N/A
Other debt
14,987
14,959
—%
Net (cash) debt excluding municipal bond
(37,759)
17,538
N/A
Municipal bond debt
319,124
319,244
—%
Restricted cash
1,440
6,920
(79%)
Net debt
279,925
329,862
(15%)
AMG ended the second quarter in a $280 million net debt position. This decrease versus year-end 2022 was mainly due to higher cash balances from strong operating cash flow.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the second quarter. As of June 30, 2023, the Company had $391 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $586 million of total liquidity as of June 30, 2023.
Net Finance Costs
AMG’s second quarter 2023 net finance cost was $7 million compared to $12 million in the second quarter of 2022. This variance was mainly driven by higher interest income earned, due to the overall increase in global interest rates, and an increase in cash and cash equivalents balances as well as foreign exchange losses in the prior period. Additionally, in today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities. AMG has an average interest rate charge across its two main debt instruments of 5%.
Outlook
Given the global economic uncertainty and the slowdown in China, current spot prices across AMG’s critical materials portfolio are significantly below the prices we experienced when we announced our initial guidance for 2023 in November 2022. The price of lithium carbonate in November 2022, the date of our $400 million EBITDA guidance, has now almost halved and our other relevant portfolio prices are down an average of 25%.
Therefore, we have changed our full year EBITDA guidance for 2023 from “exceeding $400 million in EBITDA” to “a range between $350 million to $380 million in EBITDA.” An EBITDA in this range represents the highest EBITDA in the history of AMG.
As previously disclosed, third quarter profitability will be negatively impacted by lower volumes associated with the spodumene expansion project. Volumes will recover in the fourth quarter as the project begins to ramp up.
Regarding our long-term guidance, we are extremely pleased with the advancement of our strategic projects. We are moving forward with our lithium concentrate expansion in Brazil. We’ve signed a mandate letter to fund the chemical upgrader in Brazil, and our lithium hydroxide refinery in Bitterfeld, Germany, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
These transformational projects in lithium, our newly complete ferrovanadium spent catalyst recycling facility in Ohio, and the continued ramp-up in our AMG Critical Materials Technologies segment will drive increased volumes across our Clean Energy Materials segment and confirm our confidence in our long-term guidance. Our long-term guidance therefore remains unchanged at an EBITDA level of $650 million, or more, in 5 years, or earlier.
Profit for the period to adjusted EBITDA reconciliation
Q2 ‘23
Q2 ‘22
Profit for the period
$43,573
$29,879
Income tax expense
26,552
23,156
Net finance cost
7,282
12,211
Equity-settled share-based payment transactions
1,495
1,372
Restructuring expense
626
41
Pension adjustment
6,700
—
Silicon’s partial closure
(362)
—
Inventory cost adjustment
3,678
—
Strategic project expense (1)
3,476
3,107
Share of loss of associates
760
—
Others
—
(3)
EBIT
93,780
69,763
Depreciation and amortization
13,673
11,363
EBITDA
107,453
81,126
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
439,319
424,094
Cost of sales
(311,785)
(321,854)
Gross profit
127,534
102,240
Selling, general and administrative expenses
(49,420)
(37,034)
Other income, net
53
40
Net other operating income
53
40
Operating profit
78,167
65,246
Finance income
5,550
2,081
Finance cost
(12,832)
(14,292)
Net finance cost
(7,282)
(12,211)
Share of loss of associates and joint ventures
(760)
—
Profit before income tax
70,125
53,035
Income tax expense
(26,552)
(23,156)
Profit for the period
43,573
29,879
Profit attributable to:
Shareholders of the Company
42,763
29,631
Non-controlling interests
810
248
Profit for the period
43,573
29,879
Earnings per share
Basic earnings per share
1.33
0.93
Diluted earnings per share
1.28
0.91
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
889,909
827,957
Cost of sales
(622,533)
(650,523)
Gross profit
267,376
177,434
Selling, general and administrative expenses
(89,780)
(74,496)
Other income, net
594
122
Net other operating income
594
122
Operating profit
178,190
103,060
Finance income
11,026
2,380
Finance cost
(24,925)
(23,510)
Net finance cost
(13,899)
(21,130)
Share of loss of associates and joint ventures
(1,792)
(500)
Profit before income tax
162,499
81,430
Income tax expense
(62,479)
(21,667)
Profit for the period
100,020
59,763
Profit attributable to:
Shareholders of the Company
98,984
58,746
Non-controlling interests
1,036
1,017
Profit for the period
100,020
59,763
Earnings per share
Basic earnings per share
3.08
1.84
Diluted earnings per share
3.01
1.81
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
June 30, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
851,805
797,611
Goodwill and other intangible assets
41,235
41,404
Derivative financial instruments
31,839
33,042
Equity-accounted investees
16,147
—
Other investments
31,339
29,324
Deferred tax assets
37,924
37,181
Restricted cash
381
5,875
Other assets
10,445
8,612
Total non-current assets
1,021,115
953,049
Inventories
252,435
277,311
Derivative financial instruments
2,412
3,516
Trade and other receivables
179,727
162,548
Other assets
117,828
121,834
Current tax assets
6,627
7,289
Restricted cash
1,059
1,045
Cash and cash equivalents
391,251
346,043
Total current assets
951,339
919,586
Total assets
1,972,454
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
June 30, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(39,334)
(44,869)
Retained earnings (deficit)
90,543
(4,461)
Equity attributable to shareholders of the Company
595,047
490,553
Non-controlling interests
35,185
27,296
Total equity
630,232
517,849
Liabilities
Loans and borrowings
658,722
661,270
Lease liabilities
43,912
44,224
Employee benefits
127,827
117,160
Provisions
12,969
12,361
Deferred revenue
20,000
20,000
Other liabilities
3,931
15,009
Derivative financial instruments
191
284
Deferred tax liabilities
18,515
27,269
Total non-current liabilities
886,067
897,577
Loans and borrowings
5,778
15,164
Lease liabilities
4,892
4,710
Short-term bank debt
8,116
6,391
Deferred revenue
14,533
28,277
Other liabilities
71,088
69,917
Trade and other payables
245,889
240,101
Derivative financial instruments
2,711
7,746
Advance payments from customers
51,947
51,054
Current tax liability
38,778
23,548
Provisions
12,423
10,301
Total current liabilities
456,155
457,209
Total liabilities
1,342,222
1,354,786
Total equity and liabilities
1,972,454
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from operating activities
Profit for the period
100,020
59,763
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
62,479
21,667
Depreciation and amortization
26,640
21,890
Asset impairment reversal
(767)
—
Net finance cost
13,899
21,130
Share of loss of associates and joint ventures
1,792
500
Loss on sale or disposal of property, plant and equipment
35
33
Equity-settled share-based payment transactions
2,964
2,752
Movement in provisions, pensions, and government grants
8,104
(2,917)
Working capital and deferred revenue adjustments
3,901
(63,774)
Cash generated from operating activities
219,067
61,044
Finance costs paid, net
(9,716)
(12,153)
Income tax paid
(55,981)
(13,040)
Net cash from operating activities
153,370
35,851
Cash used in investing activities
Proceeds from sale of property, plant and equipment
26
93
Acquisition of property, plant and equipment and intangibles
(69,291)
(82,608)
Investments in associates and joint ventures
(17,939)
(500)
Use of restricted cash
5,480
51,252
Interest received on restricted cash
30
76
Capitalized borrowing cost paid
(8,366)
(8,321)
Other
(1)
8
Net cash used in investing activities
(90,061)
(40,000)
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
2,041
152
Repayment of borrowings
(12,755)
(8,437)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(14,087)
(10,098)
Payment of lease liabilities
(2,659)
(2,588)
Advanced contributions
14,000
—
Net cash used in financing activities
(20,420)
(22,494)
Net increase (decrease) in cash and cash equivalents
42,889
(26,643)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
2,319
(10,476)
Cash and cash equivalents at June 30
391,251
300,758
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 4 May 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during its Annual General Meeting held on May 4, 2023, shareholders approved all agenda items presented, including the reappointment of Dr. Heinz Schimmelbusch as Chief Executive Officer and Chairman of the Management Board for an additional term of two years, with effect from May 4, 2023.
During the meeting, Professor Steve Hanke and Mr. Herb Depp were reappointed as independent members of the Supervisory Board for terms of two years each, beginning May 4, 2023.
Ms. Dagmar Bottenbruch has decided to step down from AMG’s Supervisory Board in view of other pressing priorities in her career, having served on AMG’s Supervisory Board since 2019. Given the vacancy created by the departure of Ms. Bottenbruch, Dr. Anne Roby was appointed as an independent member of the Supervisory Board for a term of four years beginning May 4, 2023.
Approval was also granted for the Company’s articles of association to be amended to accommodate the name change of the Company to “AMG Critical Materials N.V.“ The reason for the change from AMG Advanced Metallurgical Group N.V. is explained in the Letter to Shareholders of the 2022 Annual Report.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 4 May 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during the Annual General Meeting, held on May 4, 2023, AMG’s shareholders approved the payment of a dividend of €0.70 per ordinary share over the financial year 2022. The interim dividend of €0.30, paid on August 10, 2022, was deducted from the amount distributed to shareholders. The final dividend per ordinary share therefore amounts to €0.40.
Payment of the final dividend will be completed on or around May 11, 2023, to shareholders of record on May 9, 2023. The ex-dividend date is May 8, 2023. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 3 May 2023(Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported first quarter 2023 revenue of $451 million, a 12% increase versus the same period in 2022. First quarter 2023 EBITDA of $118 million was more than double the EBITDA of $55 million for the first three months of last year, and represents an all-time high for AMG’s quarterly EBITDA.
In 000’s US dollars
Q1 ‘23
Q1 ‘22
Change
Revenue
$450,590
$403,863
12%
EBITDA (1)
118,111
54,760
116%
Cash from (used in) operating activities
93,395
(3,654)
N/A
Net income attributable to shareholders
56,221
29,115
93%
EPS – Fully diluted
1.72
0.89
93%
Return on Capital Employed
37.9%
19.8%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “I am pleased to announce that AMG will change its name, subject to the approval of our shareholders in the upcoming Annual General Meeting, from AMG Advanced Metallurgical Group N.V. to AMG Critical Materials N.V. We have also achieved new record earnings and operating cash flow.
This is the third straight quarter in which AMG has exceeded $100 million of EBITDA. The $63 million, or 116%, EBITDA increase over the first quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $92 million.
AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.
The record results are due to our recent expansion projects. The profitability going forward is also driven by the strategic projects coming on stream in 2023 and 2024, in particular our lithium concentrate expansion and our first lithium hydroxide refinery module in Bitterfeld. We thereby confirm our guidance for 2023 to exceed $400 million in EBITDA.”
Strategic Highlights
Lithium
The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
Regarding its development of solid state battery materials, AMG Lithium GmbH has engaged in a joint production with Fraunhofer Institute, Münster University, Wacker, and Schunk to develop next generation solid-state batteries based on lithium-sulfur technology. AMG Lithium will provide lithium sulfide and solid electrolytes for this project.
AMG has a 25% shareholding in Zinnwald Lithium PLC and is supporting the Zinnwald Board to accelerate the development of its lithium project in Eastern Germany.
Vanadium
The new vanadium spent catalyst recycling facility in Zanesville, Ohio, continues to progress, with the roaster operating at its design capacity and the melt shop targeting full production capacity later in the second quarter of this year.
AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are being executed as planned.
AMG has completed the expansion of its vanadium oxide (“V2O5”) production in Nuremberg, either using gasification ash or spent catalyst as alternative feed. V2O5 is increasingly destined for the LIVA battery market.
In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
Shell & AMG Recycling B.V. (“SARBV”) continues to advance its projects in the Middle East including the first phase of the Supercenter project based on long-term supply agreements with ARAMCO. Front end engineering design for the first phase of the project, the conversion of gasification ash into V2O5, began in late 2022 and will be completed in the fourth quarter of 2023.
Financial Highlights
Revenue increased by 12% to $451 million in the first quarter of 2023 from $404 million in the first quarter of 2022.
EBITDA was $118 million in the first quarter of 2023, up 116% versus the first quarter 2022 EBITDA of $55 million.
Annualized return on capital employed was 37.9% for the first quarter of 2023, compared to 19.8% for the first three months of 2022.
Cash from operating activities was $93 million in the first quarter of 2023, an increase of $97 million over the same period in 2022.
Net income attributable to shareholders for the first three months of 2023 was $56 million, yielding $1.72 diluted earnings per share compared to $0.89 for the same period in 2022.
AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability.
The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.
Key Figures
In 000’s US dollars
Q1 ‘23
Q1 ‘22
Change
Revenue
$450,590
$403,863
12%
Gross profit
139,842
75,194
86%
Gross margin
31.0%
18.6%
Operating profit
100,023
37,814
165%
Operating margin
22.2%
9.4%
Net income attributable to shareholders
56,221
29,115
93%
EPS – Fully diluted
1.72
0.89
93%
EBIT (1)
105,144
44,233
138%
EBITDA (2)
118,111
54,760
116%
EBITDA margin
26.2%
13.6%
Cash from (used in) operating activities
93,395
(3,654)
N/A
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q1 ‘23
Q1 ‘22
Change
Revenue
$219,080
$143,659
53%
Gross profit
108,957
39,004
179%
Operating profit
95,643
28,219
239%
EBITDA
106,137
37,227
185%
AMG Clean Energy Materials’ revenue increased 53% compared to the first quarter of 2022, to $219 million, driven mainly by higher prices in tantalum and lithium concentrates, as well as increased sales volumes of vanadium and tantalum concentrate.
Gross profit for the quarter increased 179% compared to the same period in the prior year, primarily due to the increased price environment.
SG&A expenses in the first quarter of 2023 were 23% higher than the same period in 2022, largely due to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects.
The first quarter 2023 EBITDA increased 185%, to $106 million, from $37 million in the first quarter of 2022, due to the improved gross profit as noted above.
During the first quarter of 2023, a total of 20,509 dry metric tons (“dmt”) of lithium concentrates was sold. The average realized sales price was $4,846/dmt CIF China for the quarter. The average cost per ton for the quarter was $338/dmt CIF China. This exceptional cost per ton result was driven by high sales volumes of tantalum concentrate in the quarter, and drove a quarterly EBITDA figure for AMG Brazil of $92 million.
AMG Critical Minerals
Q1 ‘23
Q1 ‘22
Change
Revenue
$62,929
$106,909
(41%)
Gross profit
7,266
13,002
(44%)
Operating profit
635
5,647
(89%)
EBITDA
2,550
7,883
(68%)
AMG Critical Minerals’ revenue for the first quarter of 2023 decreased by $44 million, or 41%, to $63 million, mainly due to lower volumes across the segment which was primarily driven by the silicon metal plant care and maintenance plan for the first two months of 2023 prior to restarting and operating one furnace in March discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.
Gross profit of $7 million in the first quarter was $6 million lower compared to the first quarter of 2022, largely due to the lower volumes in the first three months of this year.
SG&A expenses in the first quarter of 2023 decreased by 3%, to $7 million, compared to the same period in 2022. This was driven by lower personnel costs and variable compensation expense in the current quarter due to the interruptions in AMG Silicon’s operations earlier this quarter.
The first quarter 2023 EBITDA decreased 68% compared to the same period in 2022, to $3 million, due to the lower gross profit as noted above.
As of March 1, 2023, AMG’s silicon metal plant in Pocking, Germany, restarted operating one furnace. AMG Silicon is operating one furnace throughout the second quarter and plans to operate one furnace in the third quarter. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis and will be adjusted as appropriate in line with favorable and predictable market conditions. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $11 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022. The financial impact of the care and maintenance program does not significantly impact AMG’s overall projected 2023 financial results.
AMG Critical Materials Technologies
Q1 ‘23
Q1 ‘22
Change
Revenue
$168,581
$153,295
10%
Gross profit
23,619
23,188
2%
Operating profit
3,745
3,948
(5%)
EBITDA
9,424
9,650
(2%)
AMG Critical Materials Technologies‘ first quarter 2023 revenue increased by $15 million, or 10%, compared to the same period in 2022. This improvement was driven by higher sales volumes of titanium alloys and chrome metal.
SG&A expenses increased by 3% in the first quarter of 2023 compared to the same period in 2022, due to an increase in personnel costs and higher variable compensation expense in the current quarter.
AMG Critical Materials Technologies’ EBITDA was $9 million during the quarter compared to $10 million in the same period of 2022. The slight decrease was due to lower sequential chrome prices in the first quarter, partially offset by stronger profitability from our Engineering business.
AMG Engineering signed $76 million in new orders during the first quarter of 2023, driven by strong orders of remelting, turbine blade and heat treatment furnaces, representing a 1.21x book to bill ratio. Order backlog was $237 million as of March 31, 2023, the highest since March 31, 2020.
Financial Review
Tax
AMG recorded an income tax expense of $36 million in the first quarter of 2023, compared to a tax benefit of $1 million in the first quarter of 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax expense in the first three months of 2023, compared to a $15 million benefit in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $21 million in the first quarter of 2023, compared to tax payments of $4 million in the first quarter of 2022. The higher cash payments this quarter were largely a result of higher profitability in Brazil.
Exceptional Items
AMG’s first quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the first quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q1 ‘23
Q1 ‘22
Change
Gross profit
$139,842
$75,194
86%
Inventory cost adjustment
510
—
N/A
Restructuring (reversal) expense
(263)
141
N/A
Asset impairment reversal
(767)
—
N/A
Silicon’s partial closure
(156)
—
N/A
Strategic project (reversal) expense
(51)
2,265
N/A
Gross profit excluding exceptional items
139,115
77,600
79%
The asset impairment reversal during the first quarter of 2023 was due to an insurance recovery on previously impaired machinery and equipment.
SG&A
AMG’s first quarter 2023 SG&A expenses were $40 million compared to $37 million in the first quarter of 2022, with the increase largely attributable to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects in our Clean Energy Materials segment.
Liquidity
March 31, 2023
December 31, 2022
Change
Senior secured debt
$339,061
$348,622
(3%)
Cash & cash equivalents
359,525
346,043
4%
Senior secured net (cash) debt
(20,464)
2,579
N/A
Other debt
14,801
14,959
(1%)
Net (cash) debt excluding municipal bond
(5,663)
17,538
N/A
Municipal bond debt
319,185
319,244
—%
Restricted cash
2,911
6,920
(58%)
Net debt
310,611
329,862
(6%)
AMG ended the quarter in a $311 million net debt position. This decrease versus year-end 2022 was mainly due to $10 million of debt repayment and higher unrestricted cash of $14 million, offset by the utilization of restricted cash associated with the municipal bond.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2023, the Company had $360 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $555 million of total liquidity as of March 31, 2023.
Net Finance Costs
AMG’s first quarter 2023 net finance cost was $7 million compared to $9 million in the first quarter of 2022. This variance was mainly driven by foreign exchange gains of $2 million during the quarter primarily due to non-cash intergroup balances.
AMG capitalized $2 million of interest costs in the first quarter of 2023 versus $4 million in the same period in 2022. This decrease is mainly driven by the interest associated with the expansion projects in AMG Lithium and Brazil operations compared to a higher capitalized interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio in prior year.
Outlook
AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.
Regarding AMG’s 5-year guidance, the outstanding progress we have made with our strategic growth projects and given the compelling long-term supply and demand dynamics in the lithium market, we are issuing new guidance to achieve $650 million EBITDA, or more, in 5 years or earlier.
Profit for the period to adjusted EBITDA reconciliation
Q1 ‘23
Q1 ‘22
Profit for the period
$56,447
$29,884
Income tax expense (benefit)
35,927
(1,489)
Net finance cost
6,617
8,919
Equity-settled share-based payment transactions
1,469
1,380
Restructuring (reversal) expense
(263)
141
Silicon’s partial closure
547
—
Inventory cost adjustment
510
—
Asset impairment reversal
(767)
—
Strategic project expense (1)
3,625
4,796
Share of loss of associates
1,032
500
Others
—
102
EBIT
105,144
44,233
Depreciation and amortization
12,967
10,527
EBITDA
118,111
54,760
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
450,590
403,863
Cost of sales
(310,748)
(328,669)
Gross profit
139,842
75,194
Selling, general and administrative expenses
(40,360)
(37,462)
Other income, net
541
82
Net other operating income
541
82
Operating profit
100,023
37,814
Finance income
5,476
299
Finance cost
(12,093)
(9,218)
Net finance cost
(6,617)
(8,919)
Share of loss of associates and joint ventures
(1,032)
(500)
Profit before income tax
92,374
28,395
Income tax (expense) benefit
(35,927)
1,489
Profit for the period
56,447
29,884
Profit attributable to:
Shareholders of the Company
56,221
29,115
Non-controlling interests
226
769
Profit for the period
56,447
29,884
Earnings per share
Basic earnings per share
1.76
0.91
Diluted earnings per share
1.72
0.89
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
March 31, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
833,444
797,611
Goodwill and other intangible assets
41,757
41,404
Derivative financial instruments
28,015
33,042
Other investments
46,213
29,324
Deferred tax assets
36,813
37,181
Restricted cash
1,860
5,875
Other assets
9,245
8,612
Total non-current assets
997,347
953,049
Inventories
266,214
277,311
Derivative financial instruments
2,951
3,516
Trade and other receivables
189,983
162,548
Other assets
116,434
121,834
Current tax assets
7,912
7,289
Restricted cash
1,051
1,045
Cash and cash equivalents
359,525
346,043
Total current assets
944,070
919,586
Total assets
1,941,417
1,872,635
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
March 31, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(43,449)
(44,869)
Retained earnings (deficit)
60,898
(4,461)
Equity attributable to shareholders of the Company
561,287
490,553
Non-controlling interests
34,376
27,296
Total equity
595,663
517,849
Liabilities
Loans and borrowings
660,246
661,270
Lease liabilities
44,020
44,224
Employee benefits
118,734
117,160
Provisions
12,512
12,361
Deferred revenue
20,000
20,000
Other liabilities
4,157
15,009
Derivative financial instruments
171
284
Deferred tax liabilities
25,777
27,269
Total non-current liabilities
885,617
897,577
Loans and borrowings
5,948
15,164
Lease liabilities
4,720
4,710
Short-term bank debt
6,853
6,391
Deferred revenue
37,719
28,277
Other liabilities
68,572
69,917
Trade and other payables
231,407
240,101
Derivative financial instruments
4,705
7,746
Advance payments from customers
44,446
51,054
Current tax liability
41,343
23,548
Provisions
14,424
10,301
Total current liabilities
460,137
457,209
Total liabilities
1,345,754
1,354,786
Total equity and liabilities
1,941,417
1,872,635
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from (used in) operating activities
Profit for the period
56,447
29,884
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense (benefit)
35,927
(1,489)
Depreciation and amortization
12,967
10,527
Asset impairment reversal
(767)
—
Net finance cost
6,617
8,919
Share of loss of associates and joint ventures
1,032
500
Loss (gain) on sale or disposal of property, plant and equipment
9
(55)
Equity-settled share-based payment transactions
1,469
1,380
Movement in provisions, pensions, and government grants
2,755
(1,685)
Working capital and deferred revenue adjustments
4,905
(41,819)
Cash generated from operating activities
121,361
6,162
Finance costs paid, net
(7,012)
(5,917)
Income tax paid
(20,954)
(3,899)
Net cash from (used in) operating activities
93,395
(3,654)
Cash used in investing activities
Proceeds from sale of property, plant and equipment
—
59
Acquisition of property, plant and equipment and intangibles
(44,718)
(43,763)
Investments in associates and joint ventures
(17,500)
(500)
Use of restricted cash
4,009
31,295
Interest received on restricted cash
19
9
Capitalized borrowing cost paid
(5,739)
(7,886)
Other
3
8
Net cash used in investing activities
(63,926)
(20,778)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
423
1,835
Repayment of borrowings
(10,750)
(1,718)
Net repurchase of common shares
(6,672)
(1,523)
Payment of lease liabilities
(1,316)
(1,291)
Net cash used in financing activities
(18,315)
(2,697)
Net increase (decrease) in cash and cash equivalents
11,154
(27,129)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
2,328
(2,266)
Cash and cash equivalents at March 31
359,525
308,482
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 23March 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that Zinnwald Lithium Plc („Zinnwald”) (ZNWD, AIM) will issue 118,996,738 newly issued ordinary shares to AMG for a total subscription amount of £12,387,560.40 resulting in a 25.13% shareholding.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About Zinnwald
Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 22March 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that it has agreed with Zinnwald Lithium Plc („Zinnwald”) (ZNWD, AIM) to subscribe for up to 124 million newly issued ordinary shares as a cornerstone investor to Zinnwald’s accelerated book build. The shares will be subscribed for at a 10% premium to the 20-day Volume Weighted Average Price (“VWAP”) as of the close of market on March 20, 2023, that is, a price of 10.41 pence per share. Upon admission of the newly issued ordinary shares, expected on March 29, AMG will become a 25% shareholder of Zinnwald.
Dr. Heinz Schimmelbusch, AMG’s CEO, commented, “AMG’s investment in Zinnwald is a valuable strategic opportunity. As a partner with Zinnwald, together we will pursue a definitive feasibility study for their project in Eastern Germany. Establishing a raw material base in Germany close to our Bitterfeld operations has obvious logistical and strategic benefits for AMG, and we look forward to working with Zinnwald on this exciting project.”
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About Zinnwald
Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 22. Februar 2023(Vorgeschriebene Informationen) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) meldete im vierten Quartal 2022 einen Umsatz von 390 Mio. USD, was einem Anstieg von 18 % gegenüber dem vierten Quartal 2021 entspricht. Das EBITDA für das vierte Quartal 2022 war mit 104 Mio. USD mehr als doppelt so hoch wie im vierten Quartal 2021 und führte AMG zu einem Rekord-EBITDA für das Gesamtjahr von 343 Mio. USD.
In Tsd. US-Dollar
GJ 22
GJ 21
Änderung
Umsatz
$1.642.774
$1.204.666
36 %
EBITDA (1)
342.550
136.676
151 %
Zahlungsmittel aus betrieblicher Tätigkeit
167.567
90.788
85 %
Den Aktionären zuzurechnender Nettogewinn
187.589
13.771
EPS – Vollständig verwässert
5,73
0,44
Kapitalrendite
30,8 %
11,9 %
Hinweis:
Das EBITDA ist definiert als EBIT, bereinigt um Abschreibungen.
Dr. Heinz Schimmelbusch, Vorstandsvorsitzender und CEO, sagte: „Das EBITDA für das Gesamtjahr 2022, der Umsatz, der Bruttogewinn, die operativen Cashflows, die Kapitalrendite und der Nettogewinn waren mit großem Abstand die höchsten in der Geschichte des Unternehmens. Dieses Ergebnis ist auf das Segment AMG Clean Energy Materials zurückzuführen, insbesondere auf AMG Lithium und seinen Betrieb in Brasilien mit einem EBITDA-Beitrag von 215 Mio. USD oder 63 % des Gesamt-EBITDA für das Jahr. Darüber hinaus übertraf AMG das zweite Quartal in Folge ein EBITDA von 100 Mio. USD. Das EBITDA für das vierte Quartal 2022 betrug 104 Mio. USD gegenüber 44 Mio. USD im vierten Quartal 2021, was einem Anstieg von 60 Mio. USD oder 137 % entspricht. Unser Enabling CO2 Reduction Portfolio (ECO2RP) unterstützte 2022 eine CO2-Reduktion von 99,4 Mio. Tonnen – 26 % mehr als die 79,0 Mio. Tonnen CO2-Reduktion, die im Jahr 2021 ermöglicht wurden.“
Ausblick
AMG bekräftigt seine Prognose für das Gesamtjahr 2023, das EBITDA von 400 Mio. USD zu übersteigen.
AMG geht davon aus, dass das Unternehmen aufgrund der Einstellungen im Zusammenhang mit dem Hochfahren der Vanadium-Expansion in Ohio und der Lithium-Expansion in Deutschland den Gesamtpersonalbestand von etwa 3.400 Ende 2022 um 5 % erhöhen wird.
Die Investitionsausgaben für 2023 werden voraussichtlich zwischen 175 und 200 Mio. USD liegen, im Zentrum stehen dabei die Lithiumkonzentrat-Expansion in Brasilien und die Ausgaben im Zusammenhang mit dem Bau der Lithiumhydroxid-Anlage in Deutschland.
Im Hinblick auf die Finanzierung im Jahr 2023 hat AMG sein Laufzeitdarlehen in Höhe von 350 Mio. USD und sein revolvierendes Darlehen in Höhe von 200 Mio. USD im November 2021 refinanziert und die Laufzeiten des Laufzeit- und des revolvierenden Darlehens bis 2026 bzw. 2028 verlängert. AMG hat keine wesentlichen, kurzfristig fälligen Schulden. Und obwohl wir bestrebt sind, unsere Finanzstruktur konsequent zu optimieren, kann unsere aktuelle Liquidität von 532 Mio. USD alle genehmigten Kapitalinvestitionsprojekte und alle anderen finanziellen Verpflichtungen vollständig finanzieren.
Darüber hinaus bekräftigen wir unser zweigleisiges Engagement, unsere CO2-Emissionen zu reduzieren und unsere ermöglichten CO2-Einsparungen bis 2030 zu erhöhen.
Strategische Schwerpunkte
Lithium
Das Projekt zur Erweiterung der Spodumen-Produktion in der AMG Brasil befindet sich im Aufbau. Das Projekt wird die kostengünstige Position von AMG festigen. Ziel ist es, in der zweiten Jahreshälfte 2023 die volle Kapazität zu erreichen.
Die AMG Lithium-Raffinerie in Bitterfeld, Deutschland, Europas erste Lithiumhydroxid-Raffinerie, befindet sich im Bau, und die Inbetriebnahme für das erste 20.000-Tonnen-Modul der Aufbereitungsanlage für batterietaugliches Lithiumhydroxid beginnt im vierten Quartal 2023.
AMG Lithium hat mit FREYR Battery eine unverbindliche Absichtserklärung unterzeichnet, auf dessen Grundlage AMG Lithium jährlich zwischen 3.000 und 5.000 Tonnen Lithiumhydroxid in Batteriequalität an FREYR liefern soll.
Die AMG Brasil, die JX Nippon Mining & Metals Corporation („JXNMM“) und die TANIOBIS GmbH gaben im Dezember 2022 eine strategische Partnerschaft für die Produktion und Lieferung von Tantalkonzentrat aus der AMG Mibra Mine in Brasilien bekannt. JXNMM wird in die Erweiterung der Tantalkonzentratproduktion investieren, die in Kombination mit dem bereits angekündigten Ausbau der Spodumen-Kapazität durch AMG stattfindet. Alle Tantal-Vorkonzentrate werden an TANIOBIS verkauft, was eine langfristige Stabilität beim Tantalumsatz und die entsprechenden Nebenprodukt-Gutschriften auf die Lithiumproduktionskosten für AMG Brasil bietet.
Vanadium
AMG hat den Bau der neuen Recyclinganlage für verbrauchte Vanadium-Katalysatoren in Zanesville, Ohio, abgeschlossen. Der Betrieb begann am 29. Oktober 2022 und wir streben die volle Produktionskapazität im zweiten Quartal 2023 an.
Shell & AMG Recycling B.V. („SARBV“) treibt seine Projekte im Nahen Osten voran, insbesondere die erste Phase des Supercenter-Projekts auf der Grundlage langfristiger Lieferverträge mit der Saudi Arabian Oil Company („Aramco“). Die Optimierung des Anlagendesigns, die Standortauswahl und die Genehmigungsaktivitäten sind im Gange, und die Zusammenarbeit mit Hatch bei der Vorprojektplanung begann im Dezember 2022.
AMG LIVA hat im November 2022 seine erste industrielle Batterie – das Hybrid-Energiespeichersystem („HESS“) – im Werk von AMG Graphite in Hauzenberg in den vollautomatischen Betrieb genommen.
AMG LIVA verkaufte sein erstes HESS im Dezember 2022 an einen Dritten, an die Wipotec GmbH, einen weltweit führenden Anbieter von intelligenter Wäge- und Inspektionstechnologie mit Sitz in Süddeutschland. Die Batterie wird in das Stromversorgungssystem der Einrichtung integriert.
Im Januar 2023 genehmigte AMG den Bau einer Vanadium-Elektrolyt-Anlage im Werk seiner Tochtergesellschaft AMG Titanium in Nürnberg. Die Zielkapazität beträgt 6.000 m³ Vanadium-Elektrolyt. Die Entwurfsplanung für das Werk wurde im November abgeschlossen, die Investitionskosten werden voraussichtlich 15 Mio. USD betragen und die Produktion soll Ende 2023 beginnen.
Wichtige Finanzdaten
Der Umsatz stieg von 330 Mio. USD im vierten Quartal 2021 um 18 % auf 390 Mio. USD im vierten Quartal 2022. Auf Jahresbasis stieg der Umsatz um 36 %.
Das EBITDA belief sich im vierten Quartal 2022 auf 104 Mio. USD, was einem Anstieg von 137 % gegenüber dem vierten Quartal 2021 mit einem EBITDA von 44 Mio. USD Das EBITDA für das Gesamtjahr liegt mit 343 Mio. USD um 151 % höher als im Vorjahr.
Die annualisierte Rendite auf das eingesetzte Kapital betrug 30,8 % für 2022, mehr als das Doppelte der 11,9 % für 2021.
Der Cashflow aus dem operativen Geschäft belief sich im Gesamtjahr 2022 auf 168 Mio. USD gegenüber 91 Mio. USD im Jahr 2021, angetrieben durch die hohe Rentabilität von AMG Lithium in Brasilien.
Der den Aktionären zuzurechnende Nettogewinn für das Gesamtjahr 2022 betrug 188 Mio. USD, was ein verwässertes Ergebnis je Aktie von 5,73 USD im Vergleich zu 0,44 USD im Jahr 2021 ergab.
Die Liquidität von AMG zum Dezember 2022 betrug 532 Mio. USD, mit 346 Mio. USD an frei verfügbaren Zahlungsmitteln und 186 Mio. USD Verfügbarkeit von revolvierenden Krediten.
Die vorgeschlagene Gesamtdividende für 2022 beträgt 0,70 EUR pro Stammaktie, einschließlich der am 10. August 2022 gezahlten Zwischendividende von 0,30 EUR.
Kennzahlen
In Tsd. US-Dollar
Q4 22
Q4 21
Änderung
GJ 22
GJ 21
Änderung
Umsatz
$390.004
$330.360
18 %
$1.642.774
$1.204.666
36 %
Bruttogewinn
119.981
61.797
94 %
409.486
208.243
97 %
Bruttomarge
30,8 %
18,7 %
24,9 %
17,3 %
Operativer Gewinn
82.319
22.295
269 %
307.059
57.141
437 %
Operative Marge
21,1 %
6,7 %
18,7 %
4,7 %
Nettogewinn zurechenbar auf Aktionäre
60.697
5.705
964 %
187.589
13.771
1.262 %
EPS – Vollständig
1,85
0,18
928 %
5,73
0,44
1.202 %
verwässert
EBIT (1)
91.719
32.678
181 %
297.251
92.991
220 %
EBITDA (2)
104.061
43.885
137 %
342.550
136.676
151 %
EBITDA-Marge
26,7 %
13,3 %
20,9 %
11,3 %
Zahlungsmittel aus betrieblicher Tätigkeit
56.969
30.225
88 %
167.567
90.788
85 %
Hinweise:
EBIT ist definiert als Ergebnis vor Zinsen und Ertragssteuern. Das EBIT schließt Restrukturierungen, Wertminderungen von Vermögenswerten, Bestandskostenanpassungen, Umweltrückstellungen, außerordentliche Rechtskosten und andere außerordentliche Posten, anteilsbasierte Vergütungen mit Ausgleich durch Eigenkapitalinstrumente und strategische Ausgaben aus.
Das EBITDA ist definiert als EBIT, bereinigt um Abschreibungen.
Operativer Rückblick
AMG Clean Energy Materials
Q4 22
Q4 21
Änderung
GJ 22
GJ 21
Änderung
Umsatz
$176.065
$115.405
53 %
$667.804
$381.475
75 %
Bruttogewinn
81.583
27.950
192 %
267.862
75.095
257 %
Bruttogewinn vor Einmaleffekten
82.784
29.038
185 %
273.417
80.264
241 %
Operativer Gewinn
69.779
16.301
328 %
222.590
22.476
890 %
EBITDA
80.347
25.753
212 %
259.480
66.622
289 %
Der Umsatz von AMG Clean Energy Materials stieg im Vergleich zum vierten Quartal 2021 um 53 % auf 176 Mio. USD, was hauptsächlich auf höhere Preise für Vanadium-, Tantal- und Lithium-Konzentrate sowie auf höhere Absatzmengen von Vanadium- und Tantal-Konzentrat zurückzuführen ist. Die höheren Preise und Mengen im Jahr 2022 ließen den Umsatz für das Segment gegenüber 2021 um 75 % steigen.
Der Bruttogewinn vor Einmaleffekten für das Quartal stieg um 185 % im Vergleich zum Vorjahreszeitraum. Der Bruttogewinn des Segments für das Gesamtjahr 2022 vor Einmaleffekten stieg um 241 % im Vergleich zu 2021, hauptsächlich aufgrund der Preisentwicklung.
Die VVG-Kosten im vierten Quartal 2022 entsprachen mit 12 Mio. USD dem gleichen Zeitraum im Jahr 2021. Die VVG-Kosten für das Gesamtjahr 2022 lagen 11 % höher als im Jahr 2021, was hauptsächlich auf die gestiegenen Honorare im Zusammenhang mit strategischen Projekten im Jahr 2022 zurückzuführen ist, die durch eine geringere aktienbasierte Vergütung ausgeglichen wurden.
Das EBITDA im vierten Quartal 2022 stieg von 26 Mio. USD im vierten Quartal 2021 um 212 % auf 80 Mio. USD, was, wie oben erwähnt, auf den höheren Bruttogewinn zurückzuführen ist. Das EBITDA des Segments für das Gesamtjahr 2022 in Höhe von 259 Mio. USD lag 289 % höher als das EBITDA von 2021, was größtenteils durch das Lithiumgeschäft angetrieben wurde. Die Rentabilität von Vanadium wurde im vierten Quartal 2022 durch einen sequenziellen Rückgang der Indexpreise um 16 % gegenüber dem dritten Quartal und die Auswirkungen der Inbetriebnahmekosten für Zanesville beeinflusst.
Im vierten Quartal 2022 wurden insgesamt 21.329 metrische Trockentonnen (dmt) Spodumen verkauft. Der durchschnittliche realisierte Verkaufspreis lag im Quartal bei 3.682 USD/dmt CIF China. Die durchschnittlichen Kosten pro Tonne beliefen sich im Quartal auf 228 USD/dmt CIF China. Dieses außergewöhnliche Kosten-pro-Tonne-Ergebnis basiert auf hohen Verkaufsmengen an Tantalkonzentrat im Quartal und führte zu einem vierteljährlichen EBITDA-Wert für AMG Brasil von 73 Mio. USD.
Im Gesamtjahr 2022 wurden insgesamt 86.713 dmt Spodumen verkauft. Der durchschnittliche realisierte Verkaufspreis lag bei 2.805 USD/dmt CIF China und die durchschnittlichen Kosten pro Tonne für das Gesamtjahr betrugen 461 USD/dmt CIF China. Das Gesamt-EBITDA für AMG Brasil betrug 215 Mio. USD.
AMG Critical Minerals
Q4 22
Q4 21
Änderung
GJ 22
GJ 21
Änderung
Umsatz
$69.242
$79.422
(13 %)
$364.502
$308.523
18 %
Bruttogewinn
19.017
11.189
70 %
46.721
48.735
(4 %)
Bruttogewinn vor Einmaleffekten
18.641
11.379
64 %
57.928
48.690
19 %
Operativer Gewinn
10.961
2.584
324 %
63.995
20.181
217 %
EBITDA
14.001
6.459
117 %
38.280
31.200
23 %
Der Umsatz von AMG Critical Minerals für das vierte Quartal 2022 sank um 10 Mio. USD bzw. 13 % auf 69 Mio. USD, was hauptsächlich auf geringere Absatzmengen im gesamten Segment zurückzuführen ist. Auf Jahresbasis stieg der Umsatz im Vergleich zu 2021 um 18 %.
Der Bruttogewinn vor Einmaleffekten in Höhe von 19 Mio. USD im vierten Quartal lag im Vergleich zum vierten Quartal 2021 um 64 % höher. Der Bruttogewinn des Segments für das Gesamtjahr 2022 vor Einmaleffekten lag um 19 % höher als 2021, was größtenteils auf das verbesserte Preisumfeld und günstige Energieverträge für die Siliziumproduktion im vierten Quartal zurückzuführen ist.
Die VVG-Kosten sanken im vierten Quartal 2022 um 20 % auf 7 Mio. USD gegenüber dem gleichen Zeitraum im Jahr 2021. Dies war größtenteils auf den niedrigeren aktienbasierten Vergütungsaufwand im aktuellen Quartal zurückzuführen, der mit einer im Vorjahr ausgewiesenen Rückbuchung verbunden war. Die VVG-Kosten für das Gesamtjahr 2022 wiesen einen leichten Rückgang um 0,6 Mio. USD gegenüber 2021 auf.
Das EBITDA für das vierte Quartal 2022 stieg gegenüber dem gleichen Zeitraum im Jahr 2021 um 117 % auf 14 Mio. USD, was, wie oben erwähnt, auf einen höheren Bruttogewinn und günstige Energieverträge bei AMG Silicon in diesem Quartal zurückzuführen ist. Die verbesserten Preise im Jahr 2022 führten zu einem Anstieg des EBITDA für das Segment im Gesamtjahr um 23 % gegenüber 2021.
Mit Wirkung zum 1. Januar 2023 hat AMG sein Werk für die Herstellung von metallurgischem Silizium in Pocking, Deutschland, für Instandhaltung und Wartung außer Betrieb genommen. Die Anlage wird im März 2023 wieder anlaufen und einen Ofen in Betrieb nehmen. Die betrieblichen Parameter des Siliziumgeschäfts werden weiterhin laufend überprüft und entsprechend den günstigen und vorhersehbaren Marktbedingungen angepasst. Aufgrund der vermerkten Unterbrechungen im Siliziumbetrieb werden die finanziellen Auswirkungen des Geschäfts während dieser Periode des abnormalen Betriebs vom EBITDA ausgeschlossen. Die finanziellen Auswirkungen des Instandhaltungs- und Wartungsprogramms haben keine wesentlichen Auswirkungen auf die für 2023 prognostizierten Gesamtergebnisse von AMG.
AMG Critical Materials Technologies
Q4 22
Q4 21
Änderung
GJ 22
GJ 21
Änderung
Umsatz
$144.697
$135.533
7 %
$610.468
$514.668
19 %
Bruttogewinn
19.381
22.658
(14 %)
94.903
84.413
12 %
Bruttogewinn vor Einmaleffekten
20.745
22.388
(7 %)
96.449
84.309
14 %
Operativer Gewinn
1.579
3.410
(54 %)
20.474
14.484
41 %
EBITDA
9.713
11.673
(17 %)
44.790
38.854
15 %
Der Umsatz von AMG Critical Materials Technologies stieg im vierten Quartal 2022 um 9 Millionen USD bzw. 7 % gegenüber dem gleichen Zeitraum 2021. Diese Verbesserung wurde durch größere Absatzvolumen von Titanaluminiden und höhere Preise für Chrommetall angetrieben. Der Umsatz für das gesamte Jahr 2022 legte gegenüber dem Vorjahr um 19 % zu, der Bruttogewinn vor Einmaleffekten für 2022 lag mit 96 Mio. USD 14 % über den 84 Mio. USD im Jahr 2021, was hauptsächlich auf das verbesserte Preisumfeld im Vergleich zum Vorjahr zurückzuführen ist, das mit der anhaltenden Erholung des Luft- und Raumfahrtmarktes nach der Pandemie verbunden war.
In der ersten Jahreshälfte wirkten sich Marktstörungen im Zusammenhang mit der russischen Invasion der Ukraine auf die Chrommetall-Lieferkette aus, was zu einem dramatischen Anstieg der Rohstoffpreise und einer begrenzten Verfügbarkeit führte. Zum Schutz vor Betriebsunterbrechungen sicherte sich das Unternehmen zusätzliche Rohstoffmengen unter Marktbedingungen zu Festpreisen. Im vierten Quartal wurden die Störungen der Lieferkette gemildert und die Preise fielen drastisch. Dies führte zu negativen Auswirkungen auf die Chrome-Margen des Unternehmens im vierten Quartal und zu einer Bestandsabschreibung von 1,6 Mio. USD.
Die VVG-Kosten sanken im vierten Quartal 2022 gegenüber dem gleichen Zeitraum 2021 um 7 % aufgrund des geringeren aktienbasierten Aufwands im laufenden Quartal, verbunden mit einer Rückbuchung im Vorjahr.
Das EBITDA von AMG Critical Materials Technologies betrug im Quartal 10 Mio. USD gegenüber 12 Mio. USD im gleichen Zeitraum 2021. Der Rückgang ist auf die oben erwähnte Verwerfung des Chrom-Marktes zurückzuführen, die durch eine stärkere Rentabilität unseres Engineering-Geschäfts ausgeglichen wurde. Das EBITDA für das Segment lag mit 45 Mio. USD für das Gesamtjahr 2022 um 15 % höher als 2021. Dies ist vor allem auf die anhaltende Erholung im Luft- und Raumfahrtsektor im Jahr 2022 zurückzuführen.
AMG Engineering hat im vierten Quartal 2022 Neuaufträge im Umfang von 67 Mio. USD unterzeichnet, was auf umfangreiche Bestellungen von Turbinenschaufeln und Induktionsöfen zurückzuführen ist und in einem Verhältnis von Auftragseingang zu Umsatz (Book-to-Bill-Quotient) von 1,28 zum Ausdruck kommt. Im Januar 2023 setzte sich der starke Auftragseingang des Unternehmens mit 44 Mio. USD an Neuaufträgen fort, hauptsächlich aufgrund des Umsatzes im Bereich Turbinenschaufelbeschichtung. Der Auftragsbestand belief sich zum 31. Dezember 2022 auf 220 Mio. USD, der höchste seit dem 31. März 2020.
Finanzbericht
Steuer
AMG verbuchte 2022 einen Ertragsteueraufwand von 84 Mio. USD gegenüber 9 Mio. USD im Jahr 2021. Diese Abweichung wurde hauptsächlich durch verbesserte Betriebsergebnisse bei AMG Lithium in seinem brasilianischen Betrieb in Verbindung mit Bewegungen beim brasilianischen Real verursacht. Die Auswirkungen des brasilianischen Reals bewirkten 2022 einen Steuervorteil in Höhe von 7 Mio. USD, im Jahr 2021 hatte dieser bei 4 Mio. USD gelegen. Wechselkursschwankungen beim brasilianischen Real wirken sich auf die Bewertung der Nettoposition der latenten Steuern des Unternehmens im Zusammenhang mit unserer Geschäftstätigkeit in Brasilien aus.
AMG zahlte im Jahr 2022 Steuern in Höhe von 42 Mio. USD, im Jahr 2021 lagen diese bei 10 Mio. USD. Die höheren Zahlungen im Jahr 2022 waren weitgehend auf verbesserte Betriebsergebnisse zurückzuführen.
Außerordentliche Posten
Der AMG-Bruttogewinn für das vierte Quartal und das Gesamtjahr 2022 beinhaltet außerordentliche Posten, die nicht in die EBITDA-Berechnung einbezogen werden.
Eine Zusammenfassung der im Bruttogewinn 2022 und 2021 enthaltenen außerordentlichen Posten finden Sie unten:
Im Bruttogewinn enthaltene außerordentliche Posten
Q4 22
Q4 21
Änderung
GJ 22
GJ 21
Änderung
Bruttogewinn
$119.981
$61.797
94 %
$409.486
$208.243
97 %
Anpassung der Bestandskosten
1.589
—
N/A
1.589
1.164
37 %
Restrukturierungsaufwand (Rückbuchung)
389
(140)
N/A
582
522
11 %
Wertminderungsaufwand für Vermögenswerte (Rückbuchung)
(990)
153
N/A
10.597
(711)
N/A
Aufwand für strategische Projekte
1.201
1.501
(20 %)
5.540
4.045
37 %
Sonstige
—
(506)
N/A
—
—
N/A
Bruttogewinn ohne außerordentliche Posten
122.170
62.805
95 %
427.794
213.263
101 %
Energiekosten
Infolge des Anstiegs der Gas- und Stromkosten im Laufe des Jahres lagen die gesamten Energiekosten 2022 um 16 Mio. USD höher als 2021. Der Großteil dieses Anstiegs betraf unser Siliziumgeschäft in Deutschland, aber dieses Geschäft profitierte von vollständig abgesicherten Stromkosten. Andere Geschäftseinheiten profitierten von langfristigen Stromverträgen ohne Preisgleitklauseln, und die Geschäftseinheiten, deren Energiekosten stiegen, konnten einen Großteil dieser höheren Kosten an ihre Kunden weitergeben.
VVG-Kosten
Die VVG-Kosten von AMG für das vierte Quartal 2022 beliefen sich auf 37 Mio. USD gegenüber 40 Mio. USD im vierten Quartal 2021, wobei der Rückgang auf einem geringeren aktienbasierten Vergütungsaufwand basiert, verbunden mit einer Rückbuchung im Vorjahr.
Die VVG-Kosten für das Gesamtjahr 2022 lagen bei 148 Mio. USD und damit 6 % höher als im Jahr 2021, wobei die Abweichung hauptsächlich auf die gestiegenen Honorare im Zusammenhang mit strategischen Projekten in der laufenden Periode zurückzuführen ist, die durch eine geringere aktienbasierte Vergütung ausgeglichen wurden.
Liquidität
31. Dezember 2022
31. Dezember 2021
Änderung
Vorrangig besicherte Schulden
$348.622
$371.897
(6 %)
Zahlungsmittel und Zahlungsmitteläquivalente
346.043
337.877
2 %
Vorrangige besicherte Nettoverschuldung
2.579
34.020
(92 %)
Sonstige Schulden
14.959
24.398
(39 %)
Nettoverschuldung ohne Kommunalanleihen
17.538
58.418
(70 %)
Kommunalanleihen
319.244
319.476
— %
Verfügungsbeschränkte Zahlungsmittel
6.920
93.434
(93 %)
Nettoverschuldung
329.862
284.460
16 %
AMG beendete das Jahr mit einer Nettoverschuldung von 330 Mio. USD. Dieser Anstieg war hauptsächlich auf die erheblichen Investitionen in Wachstumsinitiativen im Laufe des Jahres zurückzuführen, insbesondere in unserem Werk in Zanesville, das die mit der Kommunalanleihe verbundenen verfügungsbeschränkten Zahlungsmittel nutzte. Diese Verwendung von verfügungsbeschränkten Zahlungsmitteln wurde durch die Rückzahlung von Schulden in Höhe von 34 Mio. USD und höhere frei verfügbare Zahlungsmittel ausgeglichen.
AMG weist im vierten Quartal weiterhin eine solide Bilanz und ausreichende Liquiditätsquellen auf. Zum 31. Dezember 2022 verfügte das Unternehmen über 346 Mio. USD an frei verfügbaren Zahlungsmitteln und Zahlungsmitteläquivalenten sowie über 186 Mio. USD auf seine revolvierende Kreditfazilität. Somit verfügte AMG zum 31. Dezember 2022 über insgesamt 532 Mio. USD an liquiden Mitteln.
Nettofinanzkosten
Der Nettofinanzertrag von AMG für das vierte Quartal 2022 betrug 4 Mio. USD, im vierten Quartal 2021 hatten die Kosten bei 13 Mio USD gelegen. Diese Abweichung beruht hauptsächlich auf Wechselkursgewinnen von 10 Mio. USD im Quartal, in erster Linie aufgrund von nicht zahlungswirksamen konzerninternen Salden.
AMG aktivierte im vierten Quartal 2022 1 Mio. USD an Zinskosten gegenüber 4 Mio. USD im gleichen Zeitraum 2021. Die Zinsen stehen im Zusammenhang mit der steuerbefreiten Kommunalanleihe des Unternehmens, die die Vanadium-Expansion in Ohio unterstützt. Dieser Rückgang ist auf einen Teil der Zinskosten der Kommunalanleihe zurückzuführen, die aufgrund des Hochfahrens der Produktion in unserem Werk in Zanesville nicht mehr aktiviert werden.
Endgültiger Dividendenvorschlag
AMG beabsichtigt, im Geschäftsjahr 2022 eine Dividende von 0,70 EUR pro Stammaktie bekanntzugeben. Die am 10. August 2022 ausgezahlte Zwischendividende von 0,30 EUR wird von dem an die Aktionäre auszuschüttenden Betrag abgezogen. Die vorgeschlagene Schlussdividende je Stammaktie beträgt daher 0,40 EUR.
Ein Vorschlag zur Beschlussfassung über die endgültige Dividendenausschüttung wird in die Tagesordnung der Hauptversammlung am 4. Mai 2023 aufgenommen.
Periodenergebnis bis zur Überleitung zum bereinigten EBITDA
Q4 22
Q4 21
GJ 22
GJ 21
Periodenergebnis
$62.669
$4.139
$190.771
$13.779
Ertragsteueraufwand
23.827
5.293
84.097
8.707
Nettofinanzkosten (Erträge)
(4.177)
12.644
30.941
33.602
Anteilsbasierte Vergütungstransaktionen mit Ausgleich durch Eigenkapitalinstrumente
1.414
6.883
5.552
10.206
Restrukturierungsaufwand (Rückbuchung)
389
(140)
582
522
Netto-Vertragsabwicklungen (1)
971
—
(45.436)
—
Anpassung der Bestandskosten
1.589
—
1.589
1.164
Wertminderungsaufwand für Vermögenswerte (Rückbuchung) (1)
(990)
153
10.597
(711)
Umweltrückstellung
143
230
133
11.941
Aufwand für strategische Projekte (2)
5.885
3.769
17.070
12.157
Anteil am Verlust von assoziierten Unternehmen
—
219
1.250
1.053
Sonstige
(1)
(512)
105
571
EBIT
91.719
32.678
297.251
92.991
Abschreibung und Amortisation
12.342
11.207
45.299
43.685
EBITDA
104.061
43.885
342.550
136.676
Hinweise:
Im Zusammenhang mit der Produktionsunterbrechung im Siliziumwerk verzeichnete AMG Erträge aus dem Verkauf eines bestehenden Liefervertrags, der sich positiv auf den Betriebsgewinn für das Jahr auswirkte. Dieser Ertrag wurde durch einen Vergleich mit einem Großkunden und eine Wertminderung bestehender Vermögenswerte ausgeglichen.
Mehrere strategische Expansionsprojekte des Unternehmens befinden sich in der anfänglichen Entwicklungs- und Anlaufphase und haben im Laufe des Quartals Projektkosten verursacht, sind aber noch nicht in Betrieb, dazu zählen das Erweiterungsprojekt von AMG Vanadium, das Joint Venture mit Shell, das Hybride Lithium-Vanadium-Redox-Flow-Batterie-System und die Lithium-Expansion in Deutschland. AMG passt das EBITDA für diese außerordentlichen Kosten an.
AMG Advanced Metallurgical Group N.V.
Konsolidierte Gewinn- und Verlustrechnung
Für das Quartal zum 31. Dezember
In Tausend USD
2022
2021
Ungeprüft
Ungeprüft
Fortgeführte Aktivitäten
Umsatz
390.004
330.360
Umsatzkosten
(270.023)
(268.563)
Bruttogewinn
119.981
61.797
Vertriebs-, Verwaltungs- und Gemeinkosten
(36.579)
(39.501)
Umweltaufwendungen
(143)
(230)
Sonstige Aufwendungen
(940)
—
Sonstige Erträge
—
229
Sonstige betriebliche Nettoaufwendungen
(1.083)
(1)
Operativer Gewinn
82.319
22.295
Finanzertrag
5.459
1.107
Finanzkosten
(1.282)
(13.751)
Nettofinanzertrag (Kosten)
4.177
(12.644)
Anteil am Verlust von assoziierten Unternehmen und Joint Ventures
Anteil am Verlust von assoziierten Unternehmen und Joint Ventures
(1.250)
(1.053)
Gewinn vor Ertragsteuern
274.868
22.486
Ertragsteueraufwand
(84.097)
(8.707)
Periodenergebnis
190.771
13.779
Zurechenbarer Gewinn auf:
Aktionäre des Unternehmens
187.589
13.771
Nicht beherrschende Anteile
3.182
8
Periodenergebnis
190.771
13.779
Ergebnis je Aktie
Unverwässertes Ergebnis je Aktie
5,87
0,44
Verwässertes Ergebnis je Aktie
5,73
0,44
AMG Advanced Metallurgical Group N.V.
Konzernbilanz
In Tausend USD
31. Dezember 2022 Ungeprüft
31. Dezember 2021
Vermögenswerte
Sachanlagen
797.611
693.624
Goodwill und andere immaterielle Vermögenswerte
41.404
44.684
Derivative Finanzinstrumente
33.042
95
Sonstige Investitionen
29.324
29.830
Latente Steueransprüche
37.181
52.937
Verfügungsbeschränkte Zahlungsmittel
5.875
85.023
Sonstige Vermögenswerte
8.612
8.471
Summe der langfristigen Vermögenswerte
953.049
914.664
Vorratsvermögen
277.311
218.320
Derivative Finanzinstrumente
3.516
4.056
Forderungen aus Lieferungen und Leistungen und sonstigen Forderungen
162.548
145.435
Sonstige Vermögenswerte
121.834
65.066
Tatsächliche Steueransprüche
7.289
5.888
Verfügungsbeschränkte Zahlungsmittel
1.045
8.411
Zahlungsmittel und Zahlungsmitteläquivalente
346.043
337.877
Summe Umlaufvermögen
919.586
785.053
Gesamtvermögen
1.872.635
1.699.717
AMG Advanced Metallurgical Group N.V.
Konzernbilanz
(Fortsetzung)
In Tausend USD
31. Dezember 2022 Ungeprüft
31. Dezember 2021
Eigenkapital
Aktienkapital
853
853
Aktienagio
553.715
553.715
Eigene Aktien
(14.685)
(16.596)
Sonstige Rücklagen
(44.869)
(96.421)
Gewinnrücklagen (Defizit)
(4.461)
(173.117)
Den Aktionären der Gesellschaft zuzurechnendes Eigenkapital
490.553
268.434
Nicht beherrschende Anteile
27.296
25.718
Eigenkapital gesamt
517.849
294.152
Verbindlichkeiten
Darlehen und Kredite
661.270
675.384
Leasing-Verbindlichkeiten
44.224
45.692
Sozialleistungen für Mitarbeiter
117.160
162.628
Rückstellungen
12.361
14.298
Abgegrenzte Umsatzerlöse
20.000
22.341
Sonstige Verbindlichkeiten
15.009
11.098
Derivative Finanzinstrumente
284
2.064
Latente Steuerverbindlichkeiten
27.269
5.617
Summe der langfristigen Verbindlichkeiten
897.577
939.122
Darlehen und Kredite
15.164
27.341
Leasing-Verbindlichkeiten
4.710
4.857
Kurzfristige Bankschulden
6.391
13.046
Abgegrenzte Umsatzerlöse
28.277
18.478
Sonstige Verbindlichkeiten
69.917
80.672
Verbindlichkeiten aus Lieferungen und Leistungen und sonstigen Verbindlichkeiten
240.101
252.765
Derivative Finanzinstrumente
7.746
6.010
Vorauszahlungen von Kunden
51.054
35.091
Tatsächliche Steuerschuld
23.548
10.586
Rückstellungen
10.301
17.597
Summe kurzfristige Verbindlichkeiten
457.209
466.443
Summe Verbindlichkeiten
1.354.786
1.405.565
Summe Eigenkapital und Verbindlichkeiten
1.872.635
1.699.717
AMG Advanced Metallurgical Group N.V.
Konsolidierte Kapitalflussrechnung
Für das Jahr zum 31. Dezember
In Tausend USD
2022
2021
Ungeprüft
Zahlungsmittel aus betrieblicher Tätigkeit
Periodenergebnis
190.771
13.779
Anpassungen zur Abstimmung des Nettogewinns mit den Netto-Cashflows:
Nicht zahlungswirksam:
Ertragsteueraufwand
84.097
8.707
Abschreibung und Amortisation
45.299
43.685
Wertminderungsaufwand für Vermögenswerte (Rückbuchung)
10.597
(711)
Nettofinanzkosten
30.941
33.602
Anteil am Verlust von assoziierten Unternehmen und Joint Ventures
1.250
1.053
Erlöse aus dem Verkauf oder der Veräußerung von Sachanlagen
(592)
(65)
Anteilsbasierte Vergütungstransaktionen mit Ausgleich durch Eigenkapitalinstrumente
5.552
10.028
Veränderungen bei Rückstellungen, Pensionen und staatlichen Zuschüssen
(11.982)
(10.184)
Anpassungen des Betriebskapitals und der abgegrenzten Umsatzerlöse1
(123.281)
22.747
Zahlungsmittel, generiert aus betrieblicher Tätigkeit
232.652
122.641
Gezahlte Finanzkosten, netto
(23.289)
(21.950)
Gezahlte Ertragsteuer
(41.796)
(9.903)
Nettozahlungsmittel aus betrieblicher Tätigkeit
167.567
90.788
Zahlungsmittel, die für Investitionstätigkeiten verwendet werden
Erlöse aus dem Verkauf von Sachanlagen
2.538
1.029
Erwerb von Sachanlagen und immateriellen Vermögenswerten
(174.516)
(162.240)
Erwerb von Tochtergesellschaften
—
(458)
Investitionen in verbundene Unternehmen und Joint Ventures
(1.250)
(1.000)
Verwendung von verfügungsbeschränkten Zahlungsmitteln
86.514
115.485
Erhaltene Zinsen auf verfügungsbeschränkte Zahlungsmittel
250
39
Gezahlte aktivierte Fremdkapitalkosten
(16.652)
(15.838)
Sonstiges
12
30
Für Investitionstätigkeiten verwendete Nettozahlungsmittel
(103.104)
(62.953)
(1) Enthält ausstehende Forderungen im Zusammenhang mit Energie-Gutschriften im Silizium-Geschäft.
AMG Advanced Metallurgical Group N.V.
Konsolidierte Kapitalflussrechnung
(Fortsetzung)
Für das Jahr zum 31. Dezember
In Tausend USD
2022
2021
Ungeprüft
Zahlungsmittel (verwendet in) aus Finanzierungstätigkeiten
Einnahmen aus der Emission von Schuldtiteln
82
352.152
Zahlung von Transaktionskosten im Zusammenhang mit Schulden
—
(7.630)
Rückzahlung von Fremdkapital
(33.863)
(342.781)
Einnahmen aus der Emission von Stammaktien
—
123.627
Netto-Rückkauf von Stammaktien
(1.523)
(2.058)
Gezahlte Dividenden
(19.885)
(7.598)
Zahlung der Leasingverbindlichkeiten
(5.101)
(5.313)
Vorleistungen
11.000
—
Beiträge von Minderheitsbeteiligungen
—
667
Nettozahlungsmittel (verwendet in) aus Finanzierungsaktivitäten
(49.290)
111.066
Nettozunahme der Zahlungsmittel und Zahlungsmitteläquivalente
15.173
138.901
Zahlungsmittel und Zahlungsmitteläquivalente zum 1. Januar
337.877
207.366
Auswirkung von Wechselkursschwankungen auf Zahlungsmittelbestand
(7.007)
(8.390)
Zahlungsmittel und Zahlungsmitteläquivalente zum 31. Dezember
346.043
337.877
Diese Pressemitteilung enthält Insiderinformationen im Sinne von Artikel 7(1) der EU-Marktmissbrauchsverordnung.
Diese Pressemitteilung enthält vorgeschriebene Informationen im Sinne des niederländischen Finanzmarktaufsichtsgesetzes (Wet op het financieel toezicht).
Über AMG
AMG ist ein globales Unternehmen für kritische Materialien an der Spitze der CO2-Reduktionstrends. AMG produziert hochentwickelte Spezialmetalle und Mineralprodukte und bietet Vakuumofensysteme und Dienstleistungen für die Endmärkte Transport, Infrastruktur, Energie sowie Spezialmetalle und -chemikalien an.
Das Segment Clean Energy Materials von AMG kombiniert dessen Recycling- und Bergbaubetriebe, produziert Materialien für Infrastruktur- und Energiespeicherlösungen und reduziert gleichzeitig den CO2-Fußabdruck von Lieferanten und Kunden. Das Segment AMG Clean Energy Materials umfasst die Wertschöpfungsketten von Vanadium, Lithium und Tantal. Das Segment AMG Critical Materials Technologies kombiniert AMGs führende Vakuumofen-Technologielinie mit hochreinen Materialien für weltweit führende Unternehmen im Luft- und Raumfahrtsektor. Das Segment AMG Critical Minerals umfasst die Mineralaufbereitungsbetriebe von AMG für Antimon, Graphit und Siliziummetall.
AMG beschäftigt rund 3.400 Mitarbeiter und ist weltweit mit Produktionsstätten in Deutschland, Großbritannien, Frankreich, den Vereinigten Staaten, China, Mexiko, Brasilien, Indien, Sri Lanka und Mosambik tätig und verfügt über Vertriebs- und Kundendienstbüros in Japan. (www.amg-nv.com).
Für weitere Informationen wenden Sie sich bitte an:
AMG Advanced Metallurgical Group N.V. +1 610 975 4979
Bestimmte Aussagen in dieser Pressemitteilung sind keine historischen Fakten, sie sind „zukunftsorientiert“. Zu den zukunftsgerichteten Aussagen gehören Aussagen über AMGs Pläne, Erwartungen, Prognosen, Zielsetzungen, Vorgaben, Ziele, Strategien, zukünftige Ereignisse, künftige Erträge oder Leistungen, Investitionsausgaben, Finanzierungsbedarf, Pläne und Absichten im Zusammenhang mit Übernahmen, die Stärken und Schwächen von AMG im Wettbewerb, Pläne oder Ziele in Bezug auf die prognostizierte Produktion, Reserven, Finanzlage und zukünftige Tätigkeiten und Entwicklungen, die Geschäftsstrategie von AMG und die Trends, die AMG in den Branchen und dem politischen und rechtlichen Umfeld, in dem das Unternehmen tätig ist, antizipiert, sowie andere Informationen, die keine historischen Informationen sind. Bei Verwendung in dieser Pressemitteilung sollen die Wörter „erwartet“, „glaubt“, „antizipiert“, „plant“, „kann“, „wird“, „sollte“ und ähnliche Ausdrücke sowie deren verneinte Formen zukunftsgerichtete Aussagen identifizieren. Naturgemäß beinhalten zukunftsgerichtete Aussagen inhärente Risiken und Unsicherheiten, sowohl allgemeine als auch spezifische, und es bestehen Risiken, dass die Ausblicke, Vorhersagen, Prognosen und andere zukunftsgerichtete Aussagen nicht erreicht werden. Diese zukunftsgerichteten Aussagen reflektieren ausschließlich den Informationsstand zum Zeitpunkt dieser Pressemitteilung. AMG lehnt ausdrücklich jede Verpflichtung oder Zusage ab, Aktualisierungen oder Überarbeitungen von hierin enthaltenen zukunftsgerichteten Aussagen öffentlich bekannt zu geben, um Änderungen der diesbezüglichen Erwartungen von AMG oder Änderungen bei Ereignissen, Bedingungen oder Umständen, auf denen solche zukunftsgerichteten Aussagen beruhen, widerzuspiegeln.