AMG’s Lithium Operations Continue to Drive Record Earnings with the Fourth Straight Quarter Exceeding $100 Million of EBITDA

Jul 26, 2023

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.

_{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

_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

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

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

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

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

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

_{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.}

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.

Attachment

• Second Quarter 2023 Earnings PR

AMG Announces Results of the Annual General Meeting

Mai 4, 2023

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.        +1 610 975 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.

Attachment

• Results of the 2023 AGM

AMG Announces Final 2022 Dividend

Mai 4, 2023

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.        +1 610 975 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.

Attachment

• Final Dividend May 2023

AMG’s Lithium Operations Continue to Drive Record Earnings

Mai 3, 2023

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.

_{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

_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

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

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

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

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

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

_{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.}

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.

Attachment

• First Quarter 2023 Earnings PR

AMG Advanced Metallurgical Group N.V. Announces Finalization of 25% Shareholding in Zinnwald Lithium Plc

Mrz 23, 2023

Amsterdam, 23 March 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.        +1 610 975 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.

Attachment

• Shareholding in Zinnwald

AMG Advanced Metallurgical Group N.V. Announces 25% Shareholding in Zinnwald Lithium Plc

Mrz 22, 2023

Amsterdam, 22 March 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.        +1 610 975 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.

Attachment

• Shareholding in Zinnwald Lithium Plc

AMGs kostengünstiger Lithium-Betrieb führt AMG zu rekordverdächtigem Gesamtjahresergebnis

Feb 22, 2023

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.

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

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

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

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

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

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

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        

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.

_{(1) Enthält ausstehende Forderungen im Zusammenhang mit Energie-Gutschriften im Silizium-Geschäft.}

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

Michele Fischer

mfischer@amg-nv.com

Haftungsausschuss

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.

Attachment

• Fourth Quarter & Full Year 2022 Earnings Release

AMG Advanced Metallurgical Group N.V. Announces Tantalum Strategic Partnership with Nippon Mining & Metals Corporation

Dez 22, 2022

Amsterdam, 22 December 2022 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) announces strategic partnership between AMG Brasil SA, JX Nippon Mining & Metals Corporation (“JXNMM”) and TANIOBIS GmbH for the production and supply of tantalum concentrate from AMG’s Mibra Mine located in the state of Minas Gerais in Brazil. JXNMM will invest in the expansion of tantalum concentrate production that is occurring in combination with AMG’s already announced expansion of spodumene capacity. All tantalum pre-concentrate will be processed at Mibra Mine and subsequently sold to TANIOBIS.

This partnership achieves greater vertical integration in tantalum for JXNMM and provides long-term stability in tantalum sales and corresponding by-product credits to lithium production costs for AMG Brasil.

“This agreement strengthens and builds upon the long-standing relationship between AMG Brasil, a renowned producer of conflict-free tantalum ore, and TANIOBIS, a global leading supplier of high-quality tantalum powders. I am excited to partner with JX Nippon Mining and Metals, and I believe this is the first step in the development of other mutually beneficial opportunities,” said Fabiano Costa, President of AMG Brasil SA.

“This partnership in tantalum business will further contribute a stable supply of advanced materials to the market with a transparent supply chain, as well as strengthen the partners’ integral business relationship in tantalum value chain,” said Nobuharu Masaki, Executive Officer, General Manager of Mineral Resources Division of JXNMM.

“Through our strong partnership among AMG Brasil, JXNMM, and TANIOBIS, we can fulfil our mission to enhance the stable supply of tantalum to the market. At the same time, we believe we can develop our overall tantalum relevant market with the steady growth in order to serve for the better world. I am really excited to go for our joint journey together with a great partner such as AMG Brasil,” said Kazuyuki Marukawa, Vice Chairman of TANIOBIS GmbH.

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 3,300 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.

Attachment

• AMG Tantalum Strategic Partnership

Lithium Performance Drives AMG to All-time Record Earnings and Increased Full Year Guidance

Nov 2, 2022

Amsterdam, 2 November 2022 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”), a global critical materials company at the forefront of CO₂ reduction trends, reported third quarter 2022 revenue of $425 million, a 36% increase versus the third quarter of 2021. Third quarter 2022 EBITDA of $103 million was the highest in AMG’s history, and a 210% increase versus the third quarter of 2021.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “This outstanding result was largely driven by AMG Lithium. The continued strength in both lithium demand and our low-cost position led to improved profitability in AMG Lithium in Brazil. The mission of AMG Lithium is to be the number one producer of electric vehicle battery materials in Europe by expanding production of battery-grade hydroxide, vertically integrating its Brazilian spodumene production and pursuing additional mineral resources.”

Outlook

Given the strong performance to date and the visibility into year end, AMG is increasing its EBITDA guidance for the full year 2022 to $320 million or higher, from a previous range of between $280 million and $300 million.

Important parameters for 2023 guidance are first and foremost the startup of the expanded production of lithium concentrate in Brazil in the second half of 2023; the market conditions primarily in lithium; and the ramp-up of the Zanesville refinery to full production. In view of this, AMG’s EBITDA guidance for 2023 is to exceed $400 million. It is important to note that since the increase of spodumene production will occur in the latter half of the year, 2023 EBITDA development will be back-end weighted.

Strategic Highlights

Lithium

• The project to expand the spodumene production in AMG Brazil is under construction. The objective is to be at full capacity in the second half of 2023.
• The AMG Lithium refinery in Bitterfeld, Germany, Europe’s first lithium hydroxide refinery, is under construction, and commissioning for the first 20,000-ton module of the battery-grade lithium hydroxide upgrader will commence in the fourth quarter of 2023.
• AMG Lithium’s battery-grade hydroxide refinery has signed a binding supply agreement with EcoPro, a leading South Korean cathode paste producer, for an initial three-year term to deliver a minimum of 5,000 tons per annum of battery-grade lithium hydroxide to EcoPro’s cathode materials production plant in Debrecen, Hungary.
• AMG has negotiated a strategic tolling contract for our spodumene production as well as third-party spodumene to supply technical-grade hydroxide to Bitterfeld.
• AMG has consolidated its lithium value chain under one legal entity and is currently aligning its lithium management and governance structures to further increase the long-term value of its lithium activities. Accordingly, we are preparing a re-segmentation of AMG to be approved by the Supervisory Board in December and become effective on January 1, 2023.

Vanadium

• The new vanadium spent catalyst recycling facility in Zanesville, Ohio, which started operating on October 29, 2022, is a clear manifestation of AMG’s industry leadership in the recycling of hazardous refinery waste globally. We are extremely pleased about the successful startup of both the roaster and the melt shop, and we expect the ramp-up to full production to take between three to four months.
• Shell & AMG Recycling B.V. (“SARBV”) and its partner, the United Company for Industry (“UCI”), continue to advance the first project of the Supercenter in conjunction with Saudi Arabian Oil Company (“Aramco”). Plant design optimization, site selection and permitting activities are progressing and the FEL3 partnering with Hatch is expected to begin later this month. The SARBV-UCI-Aramco consortium are also developing a pipeline of projects which will conclude with the deployment of AMG’s LIVA Hybrid Energy Storage System technology.
• AMG’s innovative lithium vanadium battery (“LIVA”) for industrial power management applications has successfully started up at our plant in Hauzenberg, Germany.

Financial Highlights

• Revenue increased by 36% to $425 million in the third quarter of 2022 from $312 million in the third quarter of 2021.
• EBITDA was a record $103 million in the third quarter of 2022, up 210% versus the third quarter 2021 EBITDA of $33 million.
• Annualized return on capital employed was 29.5% for the first nine months of 2022, more than double the 10.4% for the same period in 2021.
• Cash flow from operations was $75 million for the third quarter 2022, driven by the high profitability of AMG Lithium in Brazil.
• Net income attributable to shareholders for the third quarter of 2022 was $68 million, yielding $2.09 diluted earnings per share, compared to $0.02 diluted loss per share in the third quarter of 2021.
• AMG’s liquidity as of September 30, 2022 was $489 million, with $306 million of unrestricted cash and $183 million of revolving credit availability.

Key Figures

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

AMG Clean Energy Materials’ revenue increased 79% compared to the third quarter of 2021, to $188 million, driven mainly by higher prices in vanadium, tantalum and lithium concentrates, as well as increased sales volumes of lithium concentrate. Sales volumes were up due to shipping schedule variances from AMG Brazil. This increase in the third quarter of 2022 includes a catch up from the second quarter as well as additional volumes that shipped in the third quarter that were planned for the fourth quarter.

Gross profit before non-recurring items for the quarter increased 304% compared to the same period in the prior year, primarily due to the increased price environment.

SG&A expenses in the third quarter of 2022 were $12 million, 15% higher than the third quarter of 2021, largely due to strategic project costs and higher variable compensation expense in the current quarter.

The third quarter 2022 EBITDA increased 364%, to $84 million, from $18 million in the third quarter of 2021, due to the improved gross profit as noted above.

AMG Critical Minerals

AMG Critical Minerals’ revenue increased by $6 million, or 7%, to $85 million, driven by higher sales prices in all three businesses.

Gross profit before non-recurring items of $12 million in the third quarter was 13% higher compared to the third quarter of 2021. The higher revenue was due to the improved price environment, partially offset by increased raw material prices as well as the ongoing rise in energy and shipping costs.

SG&A expenses in the third quarter of 2022 slightly increased by 3%, to $7 million, compared to the same period in 2021.

Despite ongoing inflationary pressures, the third quarter 2022 EBITDA increased 13% compared to the same period in 2021.

Effective January 1, 2023, AMG will place its silicon metal plant in Pocking, Germany, on care and maintenance due to external economic factors and will review this decision on a quarterly basis. The overall EBITDA effect, should there be a shutdown longer than one quarter, is immaterial to AMG’s overall projected 2023 results.

Associated with this shutdown, AMG recorded income from the sale of an existing supply contract which positively impacted operating profit for the quarter. This income was offset by a settlement with a major customer and an impairment of existing assets. The future proceeds are also available to offset potential restructuring expenses in the future. The cost associated with retaining current employees for care and maintenance will be recorded as incurred in accordance with accounting standards.

AMG Critical Materials Technologies

AMG Critical Materials Technologies‘ third quarter 2022 revenue increased by $24 million, or 19%, compared to the same period in 2021. This improvement was due to increased titanium alloys sales, as well as higher titanium alloy and chrome metal pricing. Third quarter 2022 gross profit before non-recurring items increased by $5 million, or 23%, to $25 million due to the higher volumes and prices.

SG&A expenses increased by 9% in the third quarter of 2022 compared to the same period in 2021, mainly driven by higher share-based and variable compensation expense and higher professional fees in the current quarter.

AMG Critical Materials Technologies’ EBITDA increased to $12 million during the quarter, compared to $9 million in the third quarter of 2021. This was primarily due to higher profitability in chrome metal and titanium alloys.

AMG Engineering signed $93 million in new orders during the third quarter of 2022, driven by strong orders of remelting, induction and heat treatment furnaces, representing a 1.73x book to bill ratio. Order backlog was $211 million as of September 30, 2022, 17% greater than the $181 million as of June 30, 2022.

Financial Review

Tax

AMG recorded an income tax expense of $39 million in the third quarter of 2022, compared to $10 million in the same period in 2021. This variance was mainly driven by enhanced operating results coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $2 million deferred tax benefit in the third quarter of 2022 (2021: $8 million tax expense). 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 $10 million in the third quarter of 2022, compared to tax payments of $4 million in the third quarter of 2021.

Exceptional Items

AMG’s third quarter 2022 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 2022 and 2021 are below:

Exceptional items included in gross profit

Energy Costs

Total energy costs were $5 million higher in the third quarter of 2022 versus the same period in 2021 due to significant increases in gas and electricity costs during the quarter. The majority of this increase was at our silicon business in Germany, but that business benefited from fully hedged power costs. Other business units benefited from long-term electricity contracts that have no price escalation clauses, and the business units that did experience energy cost increases were able to pass through most of these increased costs to their customers.

SG&A

AMG’s third quarter 2022 SG&A expenses were $37 million compared to $34 million in the third quarter of 2021, with the variance largely driven by higher compensation expense due to higher profitability forecasted for the year and increased professional fees associated with strategic projects.

Net Other Operating Income

AMG recorded a net contract settlement benefit of $46 million associated with the cancellation of a supply contract for AMG Silicon, offset by a settlement with a major customer.

Liquidity

AMG had a net debt position of $368 million as of September 30, 2022. This increase was mainly due to the significant investment in growth initiatives during the quarter.

AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the third quarter. As of September 30, 2022, the Company had $306 million in unrestricted cash and cash equivalents and $183 million available on its revolving credit facility. As such, AMG had $489 million of total liquidity as of September 30, 2022.

Net Finance Costs

AMG’s third quarter 2022 net finance costs were $14 million compared to $8 million in the third quarter of 2021. This increase was mainly driven by foreign exchange losses of $6 million during the quarter primarily due to non-cash intergroup balances.

AMG capitalized $2 million of interest costs in the third quarter of 2022 versus $4 million in the same period in 2021, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio. This decrease is due to a portion of the municipal bond interest costs which are no longer being capitalized due to the ramp-up of production at our Zanesville facility.

Profit (loss) for the period to EBITDA reconciliation

(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.

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 3,300 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.

Attachment

• Third Quarter 2022 Earnings Release

AMG Lithium Signs Binding Multiyear Agreement to Supply Battery-grade Lithium Hydroxide with EcoPro, the Holding Company of Cathode Materials Manufacturer EcoPro BM

Sep 6, 2022

Amsterdam, 6 September 2022 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) announces its wholly owned subsidiary, AMG Lithium GmbH of Frankfurt (“AMG Lithium”), has signed a binding supply agreement („Agreement“) with Korean company EcoPro („EcoPro“), for an initial three-year term. AMG Lithium will supply EcoPro with battery-grade lithium hydroxide from its plant in Bitterfeld-Wolfen, Germany, which is recently under construction and scheduled to start commissioning in Q3 2023.

Under the Agreement, AMG Lithium will deliver a minimum of 5,000 tonnes per annum (“tpa”) of battery-grade lithium hydroxide to EcoPro BM’s cathode materials production plant in Debrecen, Hungary. The contract includes an option for additional volumes.

Initial quantities for qualification purposes are scheduled to be delivered in late 2023 – with regular quantities to follow in 2024.

AMG Lithium plans to produce an annual amount of 20,000 tpa of battery-grade lithium hydroxide in the first module in Bitterfeld-Wolfen with four additional modules planned to achieve a total annual production capacity of 100,000 tpa.

“We are happy to have reached this Agreement to supply EcoPro’s European cathode materials plant out of our Bitterfeld refinery. We are looking forward to growing our future business with EcoPro with additional quantities and potentially dedicating an entire module on an exclusive basis,” said Stefan Scherer, CEO of AMG Lithium.

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 3,300 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.

Attachment

• AMG Lithium Announcement September 6 2022 Final PDF