Jan 27, 2017
Amsterdam, 27 January 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) wishes to provide information regarding a recent fire at the Mibra mine in Brazil on Thursday January 19th 2017.
The fire occurred in the Gravimetric concentration section in one of AMG’s two tantalum production lines. AMG’s other tantalum production line, as well as crushing and grinding circuits and magnetic separation equipment, remain fully operational. There were no injuries to any employees or contractors as a result of the fire.
An assessment is underway to determine the length of the production interruption. AMG is insured for both the damage sustained to the concentrator and losses incurred as a result of a production interruption to our business. The assessment to date has concluded that we do not expect any material financial impact to AMG as a result of the fire.
The fire does not impact AMG’s Lithium project. Construction of AMG’s new lithium concentration plant at the Mibra mine site is unaffected by the fire.
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 produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@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.
Nov 3, 2016
Key Highlights
-
AMG ended the third quarter 2016 net debt free, with net cash of $1.9 million
-
EBITDA(2) was $23.4 million in the third quarter 2016, a 15% increase over the same period in 2015
-
Net income attributable to shareholders increased by 5% to $5.2 million in the third quarter 2016 from $4.9 million in the third quarter 2015
-
EPS, on a fully diluted basis, was $0.18 in the third quarter 2016, unchanged from third quarter 2015
-
Annualized return on capital employed increased to 18.0% in the third quarter 2016, as compared to 14.7% in the third quarter 2015
Amsterdam, 3 November 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) reported third quarter 2016 revenue of $247.5 million, a 2% increase from $241.9 million in the third quarter 2015. EBITDA for the third quarter 2016 was $23.4 million, a 15% increase from $20.4 million in the third quarter 2015. Net income attributable to shareholders increased to $5.2 million in the third quarter 2016 from $4.9 million in the third quarter 2015. On a year to date basis, EBITDA increased by 7% to $70.6 million, from $65.9 million in the prior year, despite an increase in AMG’s Performance Share Unit („PSU“) plan costs of $8.7 million, compared to the same period in 2015, driven by AMG’s strong share price performance.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, „AMG’s focus on operational excellence and price risk management resulted in solid financial results in the third quarter 2016. We are particularly pleased with the impact new innovations have had on the results of AMG Engineering, such as: our industry leading SyncroTherm® heat treatment furnaces; powder metallurgy furnaces related to additive manufacturing; titanium re-melting furnaces; and turbine blade coating plants. These innovative product offerings drove a significant portion of third quarter 2016 sales.
AMG Engineering achieved EBITDA of $8.9 million during the third quarter 2016, an 83% increase from $4.9 million in the third quarter of 2015. AMG Engineering signed $68.1 million in new orders during the third quarter of 2016, representing a 0.97x book to bill ratio. The Engineering division continues to experience strong demand for plasma remelting and induction furnaces for the aerospace market and heat treatment furnaces for the automotive market. Order backlog was $158.1 million as of September 30, 2016, consistent with June 30, 2016.
AMG Critical Materials generated EBITDA of $14.5 million during the third quarter 2016. Year-over-year double-digit declines in average quarterly prices of Chrome, Graphite, and Silicon negatively affected revenue in the third quarter of 2016 compared to the third quarter of 2015.
On a year to date basis, AMG generated cash flows from operating activities of $40.7 million, a decrease of 5% from $42.8 million in the same period in 2015. The year to date operating cash flows of $40.7 million includes voluntary cash contributions to the Company’s pension plans of $20.6 million made in the second quarter of 2016. This strong cash flow generation enabled AMG to end the third quarter net debt free, with net cash of $1.9 million.“
Key Figures
| In 000’s US Dollar |
|
|
|
| |
Q3 ’16 |
Q3 ’15 |
Change |
| Revenue |
$247,526 |
$241,867 |
2% |
| Gross profit |
46,532 |
39,660 |
17% |
| Gross margin |
18.8% |
16.4% |
|
| |
|
|
|
| Operating profit |
16,110 |
8,297 |
94% |
| Operating margin |
6.5% |
3.4% |
|
| |
|
|
|
| Net income attributable to shareholders |
5,181 |
4,933 |
5% |
| |
|
|
|
| EPS – Fully diluted |
0.18 |
0.18 |
– |
| |
|
|
|
| EBIT (1) |
16,231 |
12,751 |
27% |
| EBITDA (2) |
23,403 |
20,416 |
15% |
| EBITDA margin |
9.5% |
8.4% |
|
| |
|
|
|
| Cash flows from operating activities |
20,677 |
27,697 |
(25%) |
Note:
-
EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
-
EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Critical Materials
| |
Q3 ’16 |
Q3 ’15 |
Change |
| Revenue |
$177,490 |
$187,741 |
(5%) |
| Gross profit |
32,025 |
* 27,102 |
18% |
| Operating profit |
9,106 |
6,143 |
48% |
| EBITDA |
14,467 |
15,531 |
(7%) |
| |
|
|
|
* Includes $2.1 million non-cash expense related to vanadium, nickel and molybdenum inventory adjustments in the third quarter 2015
AMG Critical Materials continues to be impacted by weak metal prices, and as a result, revenue decreased by 5%, to $177.5 million.
Double-digit declines in average quarterly prices of Chrome, Graphite and Silicon negatively affected revenue in the third quarter of 2016 compared to the third quarter of 2015.
Gross profit in the third quarter increased by $4.9 million, or 18%, to $32.0 million, due to the strong performance of Aluminum Master Alloys and Tantalum. In addition, AMG Vanadium incurred a non-cash inventory adjustment expense of $2.1 million in the prior year due to rapidly falling vanadium, nickel and molybdenum prices.
SG&A expenses increased by $4.4 million, or 23%, compared to the prior year due to higher PSU plan costs.
Third quarter 2016 EBITDA margin remained steady at 8% compared to the third quarter 2015.
AMG Engineering
| |
Q3 ’16 |
Q3 ’15 |
Change |
| Revenue |
$70,036 |
$54,126 |
29% |
| Gross profit |
14,507 |
12,558 |
16% |
| Operating profit |
7,004 |
2,154 |
225% |
| EBITDA |
8,936 |
4,885 |
83% |
| |
|
|
|
AMG Engineering signed $68.1 million in new orders during the third quarter of 2016, representing a 0.97x book to bill ratio. Order backlog was $158.1 million as of September 30, 2016, consistent with June 30, 2016. Year to date, AMG Engineering signed $211.4 million in new orders, representing a 1.07x book to bill ratio.
AMG Engineering’s third quarter 2016 revenue increased $15.9 million, or 29%, to $70.0 million, due to strong sales of plasma remelting and induction furnaces for the aerospace market.
Third quarter 2016 gross profit increased by $1.9 million, or 16%, to $14.5 million, due to higher revenues. Gross Margin decreased slightly to 21% from 23% in the third quarter of 2015 due to product mix effects.
SG&A expenses increased by $1.4 million, or 14%, compared to the prior year, due to higher PSU plan costs.
EBITDA increased by $4.1 million to $8.9 million in the third quarter of 2016, the highest quarterly EBITDA in nineteen quarters. The increase in EBITDA was driven by higher gross profit and the sale of an unused production facility in Berlin, which contributed $4.3 million to EBITDA during the quarter, offset by higher SG&A expenses.
Financial Review
Tax
AMG recorded an income tax expense of $4.1 million in the third quarter of 2016 as compared to a tax expense of $4.7 million in the same period in 2015. AMG paid taxes of $1.1 million in the third quarter of 2016 as compared to tax payments of $1.5 million in the same period in 2015. For the third quarter of 2016, AMG’s effective cash tax rate was 12%, compared to 15% in the same period in 2015.
Liquidity
| |
September 30, 2016 |
December 31, 2015 |
Change |
| Total debt |
$172,222 |
$126,743 |
36% |
| Cash and cash equivalents |
174,077 |
127,778 |
36% |
| Net debt (cash) |
(1,855) |
(1,035) |
79% |
AMG had a net cash position of $1.9 million as of September 30, 2016. Net debt decreased by $0.8 million from December 31, 2015, while gross debt increased by $45.5 million, driven by the increased term loan associated with the new debt facility.
Cash flows from operating activities decreased to $20.7 million in the third quarter 2016 from $27.7 million in the third quarter 2015.
Capital expenditures increased to $8.3 million in the third quarter of 2016 compared to $5.2 million in the same period in 2015. Capital spending in the third quarter of 2016 included $4.2 million of maintenance capital. The largest expansion capital project was for AMG’s Ancuabe graphite mine project.
Including the $174 million of cash, AMG had $350 million of total liquidity as of September 30, 2016. AMG successfully enlarged and extended its syndicated credit facility during the quarter. AMG incurred additional one-time financing costs of $4.0 million related to the new facility.
Net Finance Costs
AMG’s third quarter 2016 net finance costs were $6.8 million compared to net finance income of $1.5 million in the third quarter of 2015. The increase was primarily due to the write-off of $4.0 million of costs associated with the previous credit facility, following the refinancing exercise completed in July 2016. Furthermore, in the third quarter 2015, net finance expenses benefited from the reversal of $2.1 million of accrued finance expenses.
SG&A
AMG’s third quarter 2016 SG&A expenses were $34.7 million compared to $28.9 million in the third quarter of 2015, an increase of 20%. This increase was primarily due to higher costs associated with the PSU plan as a result of recent increases in the Company’s share price compared to the defined peer group.
On a year to date basis, the PSU plan costs increased by $8.7 million, compared to the same period in 2015.
Outlook
Without exception, throughout 2016, AMG has delivered quarter-over-quarter improvements in EBITDA relative to the prior year. We expect to continue this performance in the fourth quarter 2016.
In 2017, AMG expects to continue its strong financial performance.
While we remain focused on operating cash flow and return on capital employed, management’s priority in 2017 is to execute our transformational lithium project.
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated income statement |
|
|
| |
|
|
| For the quarter ended September 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Continuing operations |
|
|
| Revenue |
247,526 |
241,867 |
| Cost of sales |
200,994 |
202,207 |
| Gross profit |
46,532 |
39,660 |
| |
|
|
| Selling, general and administrative expenses |
34,701 |
28,925 |
| Restructuring expense |
234 |
2,455 |
| Environmental |
45 |
– |
| Other income, net |
(4,558) |
(17) |
| Operating profit |
16,110 |
8,297 |
| |
|
|
| Finance income |
(165) |
(70) |
| Finance expense |
6,293 |
52 |
| Foreign exchange loss (gain) |
708 |
(1,460) |
| Net finance costs |
6,836 |
(1,478) |
| |
|
|
| Share of profit of associates and joint ventures |
368 |
53 |
| Profit before income tax |
9,642 |
9,828 |
| |
|
|
| Income tax expense |
4,132 |
4,679 |
| Profit for the period |
5,510 |
5,149 |
| |
|
|
| |
|
|
| Attributable to: |
|
|
| Shareholders of the Company |
5,181 |
4,933 |
| Non-controlling interests |
329 |
216 |
| Profit for the period |
5,510 |
5,149 |
| |
|
|
| Earnings per share |
|
|
| Basic earnings per share |
0.19 |
0.18 |
| Diluted earnings per share |
0.18 |
0.18 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated income statement |
|
|
| |
|
|
| For the nine months ended September 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Continuing operations |
|
|
| Revenue |
733,274 |
756,301 |
| Cost of sales |
588,695 |
628,726 |
| Gross profit |
144,579 |
127,575 |
| |
|
|
| Selling, general and administrative expenses |
100,761 |
91,931 |
| Restructuring expense |
756 |
6,114 |
| Environmental |
45 |
(2,286) |
| Other income, net |
(4,993) |
(156) |
| Operating profit |
48,010 |
31,972 |
| |
|
|
| Finance income |
(459) |
(542) |
| Finance expense |
10,806 |
9,048 |
| Foreign exchange loss (gain) |
1,644 |
(2,577) |
| Net finance costs |
11,991 |
5,929 |
| |
|
|
| Share of profit of associates and joint ventures |
1,804 |
250 |
| Profit before income tax |
37,823 |
26,293 |
| |
|
|
| Income tax expense |
7,217 |
14,235 |
| Profit for the period |
30,606 |
12,058 |
| |
|
|
| |
|
|
| Attributable to: |
|
|
| Shareholders of the Company |
30,602 |
11,417 |
| Non-controlling interests |
4 |
641 |
| Profit for the period |
30,606 |
12,058 |
| |
|
|
| Earnings per share |
|
|
| Basic earnings per share |
1.10 |
0.41 |
| Diluted earnings per share |
1.04 |
0.41 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of financial position |
|
|
| |
|
|
| |
|
|
| In thousands of US Dollars |
September 30, 2016 Unaudited |
December 31, 2015 |
| Assets |
|
|
| Property, plant and equipment |
213,444 |
215,833 |
| Goodwill |
23,723 |
18,676 |
| Intangible assets |
10,260 |
10,246 |
| Investments in associates and joint ventures |
– |
2,230 |
| Other investments |
15,000 |
14,000 |
| Deferred tax assets |
31,212 |
31,551 |
| Restricted cash |
2,474 |
2,527 |
| Other assets |
20,750 |
19,883 |
| Total non-current assets |
316,863 |
314,946 |
| Inventories |
144,541 |
126,389 |
| Trade and other receivables |
137,084 |
124,270 |
| Derivative financial instruments |
1,972 |
978 |
| Other assets |
32,509 |
27,648 |
| Assets held for sale |
– |
673 |
| Cash and cash equivalents |
174,077 |
127,778 |
| Total current assets |
490,183 |
407,736 |
| Total assets |
807,046 |
722,682 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of financial position |
|
|
| (continued) |
|
|
| |
|
|
| |
|
|
| In thousands of US Dollars |
September 30, 2016 Unaudited |
December 31, 2015 |
| Equity |
|
|
| Issued capital |
760 |
745 |
| Share premium |
389,466 |
382,978 |
| Treasury shares |
(1,612) |
– |
| Other reserves |
(66,545) |
(49,500) |
| Retained earnings (deficit) |
(184,554) |
(205,662) |
| Equity attributable to shareholders of the Company |
137,515 |
128,561 |
| |
|
|
| Non-controlling interests |
22,015 |
25,006 |
| Total equity |
159,530 |
153,567 |
| |
|
|
| Liabilities |
|
|
| Loans and borrowings |
160,542 |
112,217 |
| Employee benefits |
141,024 |
137,853 |
| Provisions |
29,985 |
29,617 |
| Deferred revenue |
4,615 |
13,539 |
| Government grants |
449 |
536 |
| Other liabilities |
20,167 |
8,821 |
| Derivative financial instruments |
890 |
5,642 |
| Deferred tax liabilities |
12,327 |
11,691 |
| Total non-current liabilities |
369,999 |
319,916 |
| |
|
|
| Loans and borrowings |
2,566 |
3,222 |
| Short term bank debt |
9,114 |
11,304 |
| Government grants |
101 |
99 |
| Liabilities associated with assets held for sale |
– |
423 |
| Other liabilities |
48,412 |
42,872 |
| Trade and other payables |
137,762 |
108,019 |
| Derivative financial instruments |
3,841 |
8,379 |
| Advance payments |
40,546 |
44,184 |
| Deferred revenue |
11,915 |
16,124 |
| Current taxes payable |
7,942 |
3,093 |
| Provisions |
15,318 |
11,480 |
| Total current liabilities |
277,517 |
249,199 |
| Total liabilities |
647,516 |
569,115 |
| Total equity and liabilities |
807,046 |
722,682 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of cash flows |
|
|
For the nine months ended September 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Cash flows from operating activities |
|
|
| Profit for the year |
30,606 |
12,058 |
| Adjustments to reconcile net profit to net cash flows: |
|
|
| Non-cash: |
|
|
| Income tax expense |
7,217 |
14,235 |
| Depreciation and amortization |
22,010 |
21,957 |
| Net finance costs |
11,991 |
5,929 |
| Share of profit of associates and joint ventures |
(1,804) |
(250) |
| Gain on sale or disposal of property, plant and equipment |
(4,193) |
(179) |
| Equity-settled share-based payment transactions |
1,509 |
3,326 |
| Movement in provisions, pensions and government grants |
(14,834) |
1,340 |
| Working capital and deferred revenue adjustments |
(2,043) |
(2,049) |
| Cash flows from operating activities |
50,459 |
56,367 |
| Finance costs paid, net |
(4,994) |
(9,935) |
| Income tax paid, net |
(4,793) |
(3,674) |
| Net cash flows from operating activities |
40,672 |
42,758 |
| |
|
|
| Cash flows used in investing activities |
|
|
| Proceeds from sale of property, plant and equipment |
522 |
951 |
| Proceeds from sale of subsidiaries (net of cash divested of $1,820 and $1,347, respectively) |
6,512 |
(1,567) |
| Acquisition of property, plant and equipment and intangibles |
(22,738) |
(12,260) |
| Acquisition of subsidiaries (net of cash acquired of $35 in 2016) |
(4,961) |
– |
| Acquisition of other non-current investments |
(1,000) |
– |
| Change in restricted cash |
116 |
4,861 |
| Other |
(46) |
(10) |
| Net cash flows used in investing activities |
(21,595) |
(8,025) |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of cash flows |
|
|
| (continued) |
|
|
| For the nine months ended September 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Cash flows from (used in) financing activities |
|
|
| Proceeds from issuance of debt |
163,755 |
177,205 |
| Payment of transaction costs related to debt issuance |
(3,267) |
(5,199) |
| Repayment of borrowings |
(121,640) |
(230,780) |
| Change in non-controlling interests |
(2,695) |
37,530 |
| Repurchase of common stock |
(1,705) |
– |
| Dividends paid |
(7,558) |
(2,669) |
| Other |
(68) |
(167) |
| Net cash flows from (used in) financing activities |
26,822 |
(24,080) |
| |
|
|
| Net increase in cash and cash equivalents |
45,899 |
10,653 |
| |
|
|
| Cash and cash equivalents at January 1 |
127,778 |
108,029 |
| Effect of exchange rate fluctuations on cash held |
400 |
(4,612) |
| Cash and cash equivalents at September 30 |
174,077 |
114,070 |
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 Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@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.
Aug 4, 2016
Key Highlights
-
EBITDA(2) was $26.0 million in the second quarter 2016, a 4% increase over the same period in 2015
-
Net income attributable to shareholders more than tripled to $13.4 million in the second quarter 2016 from $3.8 million in the second quarter 2015
-
EPS, on a fully diluted basis, increased to $0.48 in the second quarter 2016, from $0.14 in the same period in 2015
-
Cash flows from operating activities increased by 116% to $24.3 million in the second quarter 2016 from $11.3 million in the second quarter 2015
-
Annualized return on capital employed increased to 17.8% in the second quarter 2016, as compared to 15.7% in the second quarter 2015
Amsterdam, 4 August 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) reported EBITDA for the second quarter 2016 of $26.0 million, a 4% increase from $25.1 million in the second quarter 2015. Net income attributable to shareholders increased to $13.4 million in the second quarter 2016 from $3.8 million in the second quarter 2015. On a year to date basis, EBITDA increased by 4% to $47.2 million, from $45.5 million in the prior year, despite an increase in AMG’s Performance Share Unit (PSU) plan costs of $3.2 million, compared to the same period in 2015, driven by AMG’s strong share price performance.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, „AMG’s focus on operational excellence, cost reduction and price risk management resulted in solid financial results in the second quarter 2016. Despite weak metals prices, AMG performed well across all key financial metrics during the quarter.
AMG Engineering achieved EBITDA of $5.6 million during the second quarter 2016, a 33% increase from $4.2 million in the second quarter of 2015. AMG Engineering signed $92.8 million in new orders during the second quarter of 2016, the highest quarterly order intake since Q4 2010, representing a 1.39x book to bill ratio. The Engineering division continues to experience strong demand for plasma remelting, induction and turbine blade coating furnaces for the aerospace market and heat treatment furnaces for the automotive market. Order backlog was $158.8 million as of June 30, 2016, an increase of 17% from March 31, 2016.
AMG Critical Materials generated EBITDA of $20.5 million during the second quarter 2016. Year-over-year double-digit declines in average quarterly prices of Nickel, Aluminum, Chrome, Niobium and Antimony negatively affected revenue in the second quarter of 2016 compared to the second quarter of 2015.
Cash flows from operating activities increased to $24.3 million in the second quarter 2016 from $11.3 million in the second quarter 2015, due to lower levels of working capital driven by the advance payments received by AMG Engineering.“
Key Figures
| In 000’s US Dollar |
|
|
|
| |
Q2 ’16 |
Q2 ’15 |
Change |
| Revenue |
$248,349 |
$257,443 |
(4%) |
| Gross profit |
53,756 |
44,613 |
20% |
| Gross margin |
21.6% |
17.3% |
|
| |
|
|
|
| Operating profit |
18,967 |
12,122 |
56% |
| Operating margin |
7.6% |
4.7% |
|
| |
|
|
|
| Net income attributable to shareholders |
13,447 |
3,808 |
253% |
| |
|
|
|
| EPS – Fully diluted |
0.48 |
0.14 |
243% |
| |
|
|
|
| EBIT (1) |
18,585 |
18,031 |
3% |
| EBITDA (2) |
26,049 |
25,142 |
4% |
| EBITDA margin |
10.5% |
9.8% |
|
| |
|
|
|
| Cash flows from operating activities |
24,315 |
11,264 |
116% |
Note:
-
EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
-
EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Critical Materials
| |
Q2 ’16 |
Q2 ’15 |
Change |
| Revenue |
$181,619 |
$201,188 |
(10%) |
| Gross profit |
* 38,230 |
32,112 |
19% |
| Operating profit |
15,016 |
12,272 |
22% |
| EBITDA |
20,485 |
20,955 |
(2%) |
| |
|
|
|
* Includes $3.6 million non-cash benefit related to reversal of previously expensed vanadium, nickel and molybdenum inventory adjustments
AMG Critical Materials continues to be impacted by weak metal prices, and as a result, revenue decreased by 10%, to $181.6 million.
Double-digit declines in average quarterly prices of Nickel, Aluminum, Chrome, Niobium and Antimony negatively affected revenue in the second quarter of 2016 compared to the second quarter of 2015.
Gross profit in the second quarter increased by $6.1 million, or 19%, to $38.2 million, due to strong sales of Aluminum combined with lower production costs in Aluminum, Tantalum, Chrome and Silicon. In addition, Vanadium gross profit in the second quarter 2016 benefited from a $3.6 million reversal of previously recorded inventory adjustment expenses, due to improving vanadium and molybdenum prices.
Second quarter 2016 EBITDA margin increased to 11% from 10% in the second quarter 2015.
AMG Engineering
| |
Q2 ’16 |
Q2 ’15 |
Change |
| Revenue |
$66,730 |
$56,255 |
19% |
| Gross profit |
15,526 |
12,501 |
24% |
| Operating profit |
3,951 |
(150) |
N/A |
| EBITDA |
5,564 |
4,187 |
33% |
| |
|
|
|
AMG Engineering signed $92.8 million in new orders during the second quarter of 2016, representing a 1.39x book to bill ratio. Order backlog was $158.8 million as of June 30, 2016, an increase of 17% from March 31, 2016. Order intake in the quarter benefited from a number of orders which had been postponed from the first quarter of 2016. Year to date, AMG Engineering signed $143.3 million in new orders, representing a 1.12x book to bill ratio.
AMG Engineering’s second quarter 2016 revenue increased $10.5 million, or 19%, to $66.7 million, due to strong sales of plasma remelting and induction furnaces for the aerospace market and heat treatment furnaces for the automotive market.
Second quarter 2016 gross margin increased to 23% from 22% in the second quarter of 2015 due to higher revenue, product mix effects and improved project cost management.
EBITDA increased by $1.4 million to $5.6 million in the second quarter of 2016, the highest quarterly EBITDA in twelve quarters, due to higher levels of gross profit.
Financial Review
Tax
AMG recorded an income tax expense of $2.8 million in the second quarter of 2016 as compared to a tax expense of $4.1 million in the same period in 2015. The currency effect of the strengthening Brazilian Real on deferred taxes positively affected tax expense in the quarter.
AMG paid taxes of $1.8 million in the second quarter of 2016 as compared to tax payments of $1.6 million in the same period in 2015. For the second quarter of 2016, AMG’s effective cash tax rate was 11%.
Liquidity
| |
June 30, 2016 |
December 31, 2015 |
Change |
| Total debt |
$131,251 |
$126,743 |
4% |
| Cash and cash equivalents |
125,075 |
127,778 |
(2%) |
| Net debt (cash) |
6,176 |
(1,035) |
N/A |
AMG had a net debt position of $6.2 million as of June 30, 2016. Net debt and gross debt increased $7.2 million and $4.5 million, respectively, from December 31, 2015.
Cash flows from operating activities increased to $24.3 million in the second quarter 2016 from $11.3 million in the second quarter 2015, primarily due to lower levels of working capital driven by advance payments received by AMG Engineering.
Historic declines in discount rates have negatively influenced AMG’s defined benefit plan liabilities and the related funding status of those plans. In response, the Company made cash contributions to its pension plans of $20.6 million during the second quarter 2016. Voluntary contributions to the plans create flexibility in reducing plan liabilities and allow the Company to avoid certain future costs associated with plan deficits. The contributions made during the quarter negatively impacted cash flows from operating activities and the Company’s net debt balance.
Cash flow used in investing activities increased to $7.8 million in the second quarter of 2016 compared to $0.7 million in the same period in 2015, due to higher levels of capital expenditures.
Capital expenditures increased to $7.5 million in the second quarter of 2016 compared to $3.3 million in the same period in 2015. Capital spending in the second quarter of 2016 included $3.0 million of maintenance capital. The largest expansion capital project was for AMG’s Ancuabe graphite mine project.
Including the $125.1 million of cash, AMG had $268.0 million of total liquidity as of June 30, 2016.
SG&A
AMG’s second quarter 2016 SG&A expenses were $34.8 million compared to $32.9 million in the second quarter of 2015, an increase of 6%. This increase was primarily due to higher costs associated with AMG’s Performance Share Unit (PSU) plan as a result of recent increases in the Company’s share price compared to the defined peer group.
Interim Dividend
AMG has announced an interim dividend in respect of the period from January 1, 2016, to June 30, 2016, of €0.13 per ordinary share, an increase of €0.03, or 30%, compared to the interim dividend paid in September 2015.
The increased dividend reflects AMG’s ongoing commitment to return value to our shareholders and the Board’s confidence in our long term ability to generate solid cash flow.
Outlook
In this challenging market environment, AMG expects 2016 full year profitability to improve relative to 2015. AMG will also continue to generate strong operating cash flows throughout the year.
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated income statement |
|
|
| |
|
|
| For the quarter ended June 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Continuing operations |
|
|
| Revenue |
248,349 |
257,443 |
| Cost of sales |
194,593 |
212,830 |
| Gross profit |
53,756 |
44,613 |
| |
|
|
| Selling, general and administrative expenses |
34,762 |
32,863 |
| Restructuring expense |
454 |
1,965 |
| Environmental |
– |
(2,286) |
| Other income, net |
(427) |
(51) |
| Operating profit |
18,967 |
12,122 |
| |
|
|
| Finance income |
(179) |
(134) |
| Finance expense |
2,423 |
5,324 |
| Foreign exchange loss (gain) |
1,082 |
(1,289) |
| Net finance costs |
3,326 |
3,901 |
| |
|
|
| Share of (loss) profit of associates and joint ventures |
(14) |
122 |
| Profit before income tax |
15,627 |
8,343 |
| |
|
|
| Income tax expense |
2,802 |
4,091 |
| Profit for the period |
12,825 |
4,252 |
| |
|
|
| |
|
|
| Attributable to: |
|
|
| Shareholders of the Company |
13,447 |
3,808 |
| Non-controlling interests |
(622) |
444 |
| Profit for the period |
12,825 |
4,252 |
| |
|
|
| Earnings per share |
|
|
| Basic earnings per share |
0.48 |
0.14 |
| Diluted earnings per share |
0.48 |
0.14 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated income statement |
|
|
| |
|
|
| For the six months ended June 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Continuing operations |
|
|
| Revenue |
485,748 |
514,434 |
| Cost of sales |
387,701 |
426,519 |
| Gross profit |
98,047 |
87,915 |
| |
|
|
| Selling, general and administrative expenses |
66,060 |
63,006 |
| Restructuring expense |
522 |
3,659 |
| Environmental |
– |
(2,286) |
| Other income, net |
(435) |
(139) |
| Operating profit |
31,900 |
23,675 |
| |
|
|
| Finance income |
(294) |
(472) |
| Finance expense |
4,513 |
8,996 |
| Foreign exchange loss (gain) |
936 |
(1,117) |
| Net finance costs |
5,155 |
7,407 |
| |
|
|
| Share of profit of associates and joint ventures |
1,436 |
197 |
| Profit before income tax |
28,181 |
16,465 |
| |
|
|
| Income tax expense |
3,085 |
9,556 |
| Profit for the period |
25,096 |
6,909 |
| |
|
|
| |
|
|
| Attributable to: |
|
|
| Shareholders of the Company |
25,421 |
6,484 |
| Non-controlling interests |
(325) |
425 |
| Profit for the period |
25,096 |
6,909 |
| |
|
|
| Earnings per share |
|
|
| Basic earnings per share |
0.91 |
0.23 |
| Diluted earnings per share |
0.90 |
0.23 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of financial position |
|
|
| |
|
|
| |
|
|
| In thousands of US Dollars |
June 30, 2016 Unaudited |
December 31, 2015 |
| Assets |
|
|
| Property, plant and equipment |
211,897 |
215,833 |
| Goodwill |
23,141 |
18,676 |
| Intangible assets |
10,522 |
10,246 |
| Investments in associates and joint ventures |
– |
2,230 |
| Other investments |
15,000 |
14,000 |
| Deferred tax assets |
32,037 |
31,551 |
| Restricted cash |
2,548 |
2,527 |
| Other assets |
21,429 |
19,883 |
| Total non-current assets |
316,574 |
314,946 |
| Inventories |
131,422 |
126,389 |
| Trade and other receivables |
143,174 |
124,270 |
| Derivative financial instruments |
3,099 |
978 |
| Other assets |
31,660 |
27,648 |
| Assets held for sale |
2,431 |
673 |
| Cash and cash equivalents |
125,075 |
127,778 |
| Total current assets |
436,861 |
407,736 |
| Total assets |
753,435 |
722,682 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of financial position |
|
|
| (continued) |
|
|
| |
|
|
| |
|
|
| In thousands of US Dollars |
June 30, 2016 Unaudited |
December 31, 2015 |
| Equity |
|
|
| Issued capital |
760 |
745 |
| Share premium |
389,387 |
382,978 |
| Treasury shares |
(1,716) |
– |
| Other reserves |
(64,166) |
(49,500) |
| Retained earnings (deficit) |
(182,660) |
(205,662) |
| Equity attributable to shareholders of the Company |
141,605 |
128,561 |
| |
|
|
| Non-controlling interests |
24,758 |
25,006 |
| Total equity |
166,363 |
153,567 |
| |
|
|
| Liabilities |
|
|
| Loans and borrowings |
118,262 |
112,217 |
| Employee benefits |
136,704 |
137,853 |
| Provisions |
29,807 |
29,617 |
| Deferred revenue |
6,131 |
13,539 |
| Government grants |
460 |
536 |
| Other liabilities |
14,171 |
8,821 |
| Derivative financial instruments |
1,895 |
5,642 |
| Deferred tax liabilities |
11,286 |
11,691 |
| Total non-current liabilities |
318,716 |
319,916 |
| |
|
|
| Loans and borrowings |
2,945 |
3,222 |
| Short term bank debt |
10,044 |
11,304 |
| Government grants |
101 |
99 |
| Liabilities associated with assets held for sale |
1,087 |
423 |
| Other liabilities |
43,927 |
42,872 |
| Trade and other payables |
129,441 |
108,019 |
| Derivative financial instruments |
4,288 |
8,379 |
| Advance payments |
41,454 |
44,184 |
| Deferred revenue |
14,294 |
16,124 |
| Current taxes payable |
6,031 |
3,093 |
| Provisions |
14,744 |
11,480 |
| Total current liabilities |
268,356 |
249,199 |
| Total liabilities |
587,072 |
569,115 |
| Total equity and liabilities |
753,435 |
722,682 |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of cash flows |
|
|
For the six months ended June 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Cash flows from operating activities |
|
|
| Profit for the year |
25,096 |
6,909 |
| Adjustments to reconcile net profit to net cash flows: |
|
|
| Non-cash: |
|
|
| Income tax expense |
3,085 |
9,556 |
| Depreciation and amortization |
14,838 |
14,292 |
| Net finance costs |
5,155 |
7,407 |
| Share of profit of associates and joint ventures |
(1,436) |
(197) |
| Gain on sale or disposal of property, plant and equipment |
(80) |
(156) |
| Equity-settled share-based payment transactions |
914 |
2,788 |
| Movement in provisions, pensions and government grants |
(15,735) |
(896) |
| Working capital and deferred revenue adjustments |
(5,006) |
(15,524) |
| Cash flows from operating activities |
26,831 |
24,179 |
| Finance costs paid, net |
(3,162) |
(6,946) |
| Income tax paid, net |
(3,674) |
(2,172) |
| Net cash flows from operating activities |
19,995 |
15,061 |
| |
|
|
| Cash flows used in investing activities |
|
|
| Proceeds from sale of property, plant and equipment |
368 |
931 |
| Proceeds from sale of subsidiaries (net of cash divested of $35 and $1,347, respectively) |
675 |
(550) |
| Acquisition of property, plant and equipment and intangibles |
(14,389) |
(7,040) |
| Acquisition of subsidiaries (net of cash acquired of $35 in 2016) |
(4,961) |
– |
| Acquisition of other non-current investments |
(1,000) |
– |
| Change in restricted cash |
19 |
437 |
| Other |
28 |
26 |
| Net cash flows used in investing activities |
(19,260) |
(6,196) |
| AMG Advanced Metallurgical Group N.V. |
|
|
| Condensed interim consolidated statement of cash flows |
|
|
| (continued) |
|
|
| For the six months ended June 30 |
|
|
| In thousands of US Dollars |
2016 |
2015 |
| |
Unaudited |
Unaudited |
| Cash flows (used in) from financing activities |
|
|
| Proceeds from issuance of debt |
1,573 |
177,272 |
| Payment of transaction costs related to debt issuance |
– |
(4,371) |
| Repayment of borrowings |
– |
(184,871) |
| Change in non-controlling interests |
– |
37,530 |
| Repurchase of common stock |
(1,785) |
– |
| Dividends paid |
(3,503) |
– |
| Other |
1 |
(132) |
| Net cash flows (used in) from financing activities |
(3,714) |
25,428 |
| |
|
|
| Net (decrease) increase in cash and cash equivalents |
(2,979) |
34,293 |
| |
|
|
| Cash and cash equivalents at January 1 |
127,778 |
108,029 |
| Effect of exchange rate fluctuations on cash held |
276 |
(5,199) |
| Cash and cash equivalents at June 30 |
125,075 |
137,123 |
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 Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@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.
Aug 4, 2016
Amsterdam, 4 August 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce an interim dividend in respect of the period from 1 January 2016 to 30 June 2016 of €0.13 per ordinary share, payable on or around 16 August 2016, to shareholders of record on 9 August 2016. The ex-dividend date will be 8 August 2016. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
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 produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Steve Daniels
Vice President of Investor Relations
sdaniels@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.
Jul 20, 2016
Amsterdam, 20 July 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased
to announce the successful enlargement and extension of its syndicated credit facility. The new facility, which was oversubscribed, has been increased from $320 million to $400 million and the maturity has been extended from May 2018 to July 2021.
„Our amended credit facility has improved terms and conditions, additional capacity, and a new five-year maturity,“ said Jackson Dunckel, AMG’s Chief Financial Officer. „The amended facility provides AMG with a stable capital base and additional liquidity for strategic growth opportunities. We are grateful to the entire bank group for their continued support of AMG.“
The amended facility maintains an accordion feature that allows the Company, subject to certain conditions, to increase the commitment amount by up to $100 million. HSBC Bank plc coordinated the financing and, together with Lloyds Securities Inc., UniCredit Bank AG, and Fifth Third Bank, served as Joint Bookrunners and Mandated Lead Arrangers. SEB AG and Citibank, N.A. also served as Mandated Lead Arrangers.
The amendment and extension provides additional flexibility and a long-term liquidity resource for the AMG group. The expansion of the facility size will support AMG in funding strategic growth initiatives such as AMG’s lithium project.
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 produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@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.
Jul 20, 2016
Key Highlights
- AMG’s Supervisory Board approves project to construct a lithium concentrate (spodumene) plant at the Mibra mine in Brazil, with an initial annual production of 90,000 tons, expandable to 140,000 tons
- Production is expected to commence in the first quarter of 2018 and capital investment is estimated at approximately $50 million
- AMG expects to be the low cost producer of lithium concentrate globally
- Pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE), will be completed in the fourth quarter 2016
Amsterdam, 20 July 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce that the Supervisory Board of AMG has approved the construction of a lithium concentrate (spodumene) plant at the Mibra mine in Brazil.
„Following a number of years spent on preparatory activities, including the operation of a pilot plant at AMG’s Mibra mine in Brazil, we are delighted to announce our entrance into the lithium market,“ said Dr. Heinz Schimmelbusch, CEO and Chairman of the Management Board. „The recovery of lithium-bearing minerals from existing tailings will enable AMG to be a cost leader in the lithium market, creating significant value for our shareholders.“
AMG’s new business segment, AMG Lithium, will commence operations in the first quarter of 2018, with an initial annual production capacity of 90,000 tons of lithium concentrate, expandable to 140,000 tons. Total capital investment is estimated at approximately $50 million and will be incurred primarily in 2016 and 2017.
The recovery of lithium-bearing minerals from existing tailings, a by-product of AMG’s tantalum operations in Brazil, is expected to result in a cost-leading production process.
This announcement follows the press release distributed on March 10, 2016, in which AMG announced that Outotec completed an affirmative prefeasibility study for the recovery of lithium-bearing mineral Spodumene.
In addition, AMG has completed an affirmative scoping study for the downstream conversion of lithium concentrate into lithium hydroxide and/or lithium carbonate. As part of this analysis, AMG performed a global site location study to determine the best location for a new lithium chemical plant.
Following the successful completion of the scoping and location studies, AMG has commissioned Hatch to complete a pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE).
The previously published Technical Report on Mineral Resources states that AMG’s Mibra mine has 14.7 million tons of measured and indicated resources, including tantalum, niobium, tin and lithium. AMG estimates that the current life of the mineral resource is approximately 18 years, based upon current production levels.
Chemical grade lithium is primarily used in lithium-ion batteries and in the fine-chemical industry.
Further details of AMG’s lithium project can be found on AMG’s website under www.amg-nv.com/Investors/Presentations.
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 produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@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.
Aug 10, 2007
Amsterdam, August 10, 2007: AMG Advanced Metallurgical Group N.V. („AMG“, Euronext: AMG, ISIN: NL0000888691), announced today that it will host its Half Year investor conference call Tuesday, August 14, 2007 at 16:00 CET (15:00 GMT and 10:00 am EDT). Heinz C. Schimmelbusch, Chief Executive Officer; Arthur Spector, Deputy Chairman; and Bill Levy, Chief Financial Officer, will review AMG’s results for the six months ended June 30, 2007.
The conference call can be accessed by dialing 1-888-457-4228 (U.S. domestic) and +49 (0) 6958 999 0806 (international). For those unable to listen to the live broadcast, a replay will be available on our website www.amg-nv.com in the section Investor Relations approximately two hours after the event.
A press release, including financial statements and segment information, will be released prior to the conference call after the close of markets on Monday, August 13, 2007. The release will be available on AMG’s website.
About AMG
AMG, incorporated in the Netherlands, is a leading global specialty materials company offering highly engineered metallurgical products and advanced vacuum furnace systems to a broad range of end markets. AMG utilises its proprietary know-how to supply sophisticated metals and materials through its production and sales activities in 12 countries on five continents. In addition, AMG designs, engineers and produces advanced vacuum furnace systems for growing industries globally. AMG’s metallurgical expertise has enabled it to capture leading market positions for many of its products and systems. Most of AMG’s products and systems are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG is organised into two business units: Advanced Materials and Engineering Systems.
The Advanced Materials unit develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, ferrotitanium, aluminium master alloys and additives, silicon metal (including solar grade), chromium metal and magnesium alloys, used by steel, aluminium, silicones and superalloy producers for aerospace, energy, electronics, optics, chemicals, construction and transportation applications.
The Engineering Systems unit designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG sells vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear),
transportation, electronics, superalloys and specialty steel industries.
AMG operates globally with production facilities in Germany, the United Kingdom,
France, the United States, Canada, Mexico, Brazil and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website:
http://www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4909
Arthur Spector
Deputy Chairman of the Management Board
aspector@amg-nv.com
