AMG Advanced Metallurgical Group N.V. Reports First Quarter 2018 Results

Mai 2, 2018

Key Highlights

• Revenue increased by 20% to $308.4 million in the first quarter 2018 from $258.0 million in the first quarter 2017
• EBITDA⁽²⁾ was $44.5 million in the first quarter 2018, a 35% increase over the same period in 2017
• Net income attributable to shareholders increased by 18% to $18.4 million in the first quarter 2018 from $15.6 million in the first quarter 2017
• Cash from operating activities was $24.8 million in the first quarter 2018, an increase of $7.0 million over the same period in 2017
• Strong cashflows from operating activities caused net debt to decrease by $0.9 million in the first quarter of 2018, to $9.4 million, despite capital expenditures of $22.6 million during the period
• Annualized return on capital employed increased to 28.4% in the first quarter 2018, as compared to 25.5% in the first quarter 2017

Amsterdam, 2 May 2018 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) reported first quarter 2018 revenue of $308.4 million, a 20% increase from $258.0 million in the first quarter 2017. EBITDA for the first quarter 2018 was $44.5 million, a 35% increase from $33.0 million in the first quarter 2017. Net income attributable to shareholders increased 18% to $18.4 million in the first quarter 2018 from $15.6 million in the first quarter 2017.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, „AMG achieved a considerable improvement in profitability during the quarter, driven by improved pricing and higher sales volumes in AMG Critical Materials. In addition, continuing strong demand for our industry leading vacuum furnace solutions resulted in the highest quarterly order intake in 10 years and the highest order backlog in over 9 years.

AMG Critical Materials generated EBITDA of $37.1 million during the first quarter 2018, an increase of 44% from $25.7 million in the first quarter of 2017, thanks to strong financial performance in vanadium, silicon, titanium alloys, graphite, chrome and aluminum, driven by higher vanadium and silicon metal prices, and strong sales volumes.

AMG Engineering achieved EBITDA of $7.4 million during the first quarter 2018, a slight increase from $7.3 million in the first quarter 2017. AMG Engineering signed $104.8 million in new orders during the first quarter 2018, representing a 1.74x book to bill ratio, driven by strong orders of turbine blade coating and powder metallurgy furnaces for the aerospace market, heat treatment furnaces for the automotive market and induction heated quartz tube (IWQ) furnaces for fiber optic applications. Order backlog was $255.8 million as of March 31, 2018, an increase of 24% compared to December 31, 2017.

In the first quarter of 2018, AMG generated cash from operating activities of $24.8 million, an increase of $7.0 million compared to the same period in 2017. As a result of the strong cashflow generation, AMG’s net debt decreased by $0.9 million in the first quarter of 2018, despite capital expenditures of $22.6 million during the period. In summary, the Company is operating at record levels.“

Key Figures

Note: 

1. EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
2. EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Critical Materials

AMG Critical Materials revenue in the first quarter increased by $53.8 million, or 28%, to $248.4 million, driven by improved vanadium, silicon metal, aluminum, antimony, graphite and titanium prices, and higher sales volumes of vanadium, aluminum, chrome, graphite, tantalum and titanium products.

Gross profit in the first quarter increased by $15.7 million, or 43%, to $51.9 million. Strong financial performance in vanadium, silicon, titanium alloys, graphite, chrome and aluminum was partially offset by lower gross profit in tantalum. The strong financial performance was driven by higher vanadium and silicon metal prices, and strong sales volumes. The reduction in tantalum gross profit was driven by lower sales prices in the first quarter of 2018, compared to the first quarter of 2017, which benefited from the recognition of an additional $6.8 million in deferred revenue, following the early cancellation of AMG Mineração’s tantalum supply contract.

SG&A expenses in the first quarter 2018 increased by $2.3 million, or 11%, compared to the same period in the prior year, primarily due to foreign exchange effects related to the strengthening of the euro relative to the dollar and higher personnel costs.

First quarter 2018 EBITDA margin increased to 15%, compared to 13% in the first quarter 2017, due primarily to the improvement in vanadium and silicon metal pricing.

AMG Engineering

AMG Engineering signed $104.8 million in new orders during the first quarter 2018, representing a 1.74x book to bill ratio. Order backlog was $255.8 million as of March 31, 2018, an increase of 24% from December 31, 2017. This was driven by strong sales of turbine blade coating, powder metallurgy, heat treatment and induction heated quartz tube (IWQ) furnaces for fiber optic applications.

AMG Engineering’s first quarter 2018 revenue decreased $3.4 million, or 5%, to $60.1 million, primarily due to timing effects. Early stage engineering work underway on a number of large orders received in recent months resulted in lower levels of revenue in the quarter. Higher levels of revenue will be recognized on these projects as they progress into the build stage.

First quarter 2018 gross profit increased by $2.0 million, or 12%, to $18.2 million and gross margin increased to 30% from 26% in the first quarter 2017, due to favorable product mix effects.

SG&A expenses increased by $1.8 million, or 16%, compared to the prior year primarily due to foreign exchange effects related to the strengthening of the euro relative to the dollar and higher personnel costs. AMG Engineering is in the process of expanding its workforce in response to the increased level of order backlog, driven primarily by strong demand from the aerospace market.

EBITDA increased slightly by $0.1 million to $7.4 million in the first quarter 2018.

Financial Review

Tax

AMG recorded an income tax expense of $9.7 million in the first quarter 2018 as compared to a tax expense of $3.5 million in the same period in 2017. The increase in tax expense is driven by higher profitability and the full recognition of AMG’s US operating loss carry forwards in 2017.

Due to the volatile nature of the company’s deferred tax balances, AMG believes that the cash tax rate is a more meaningful metric. AMG paid taxes of $2.2 million in the first quarter 2018 as compared to tax payments of $1.5 million in the same period in 2017. For the first quarter 2018, AMG’s effective cash tax rate remained unchanged compared to the prior year at 8%.

Non-Recurring Items

AMG’s first quarter 2018 gross profit of $70.1 million includes non-recurring items, which are not included in the calculation of EBITDA.

A summary of non-recurring items included in gross profit in the first quarters of 2018 and 2017 are below:

Non-recurring items included in gross profit

Gross profit before non-recurring items by reporting segment

Liquidity

** As a result of the refinancing of AMG’s credit facility, cash of $17.1 million has been temporarily restricted and will be released during the course of 2018. Due to the nature of this balance, we have included the amount within the debt calculation disclosed above.

AMG had a net debt position of $9.4 million as of March 31, 2018. Net debt decreased by $0.9 million and total debt increased by $187.6 million from December 31, 2017.

Cash from operating activities increased by $7.0 million to $24.8 million in the first quarter 2018.

Capital expenditures increased to $22.6 million in the first quarter 2018 compared to $10.9 million in the same period in 2017. Capital spending in the first quarter 2018 included $6.9 million of maintenance capital. The largest expansion capital project was AMG’s lithium project in Brazil.

AMG had $519.8 million of total liquidity as of March 31, 2018, following the successful refinancing of AMG’s credit facilities during the quarter.

Net Finance Costs

AMG’s first quarter 2018 net finance costs increased to $6.5 million compared to $2.0 million in the first quarter 2017. The increase was partially due to the write-off of $2.9 million of costs associated with the previous credit facility, following the refinancing exercise completed in January 2018. In addition, interest expenses associated with AMG’s new, long term credit facility increased by $1.7 million, due to higher levels of gross debt and higher interest rates associated with the long term nature of the facility.

SG&A

AMG’s first quarter 2018 SG&A expenses were $35.6 million compared to $31.6 million in the first quarter 2017, primarily due to foreign exchange effects related to the strengthening of the euro relative to the dollar and, to a lesser extent, higher personnel costs.

Outlook

As demonstrated in the first quarter of 2018, AMG expects full year 2018 EBITDA to improve considerably compared to the prior year.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,300 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are „forward looking.“  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved.  These forward-looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.

AMG and Criterion Announce Negotiations to Form Spent-Catalyst Recycling Partnership

Apr 10, 2018

Amsterdam, 10 April 2018 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“) is pleased to announce that it is has entered into exclusive negotiations with Criterion Catalyst and Technologies („Criterion“), a wholly owned subsidiary of Royal Dutch Shell plc that supplies catalysts, technologies and services to global refining markets, to form a partnership that expands AMG’s global spent-catalyst processing capacity. Dr. Heinz Schimmelbusch, AMG’s Chairman of the Management Board and CEO stated, „We are pleased to pursue this opportunity to strengthen our relationship with Criterion, so as to provide the leading environmentally responsible solution for spent-catalyst management and recycling to our shared customer base“. 

The new partnership would bring together two world-class companies to help meet refiners‘ increasing demand for metals reclamation and disposal of spent catalyst, helping them to achieve regulatory compliance while producing the fuels and chemicals upon which people depend. Andy Gosse, President of Criterion stated, „The teaming up of AMG and Criterion, the acknowledged leaders in their respective markets, reinforces the 15-year relationship that the two companies have enjoyed and provides the foundation to deliver the final step of a sustainable ‚cradle-to-grave‘ solution for catalyst supply and reclamation“.

Feasibility studies are underway for the partnership’s potential sites. Locations in the Middle East, Asia and North America are under consideration.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With over 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

About Criterion Catalyst and Technologies
Criterion, a global leader in refining catalysts, is a wholly owned subsidiary of Royal Dutch Shell plc. Criterion supplies refining and hydroprocessing catalysts, process technologies and catalyst services for a wide range of refining applications to customers around the globe. Criterion has more than 50 years of experience developing, manufacturing, testing, marketing and servicing catalysts that are used in every type of hydroprocessing operation. Further information on Criterion is available at www.criterioncatalysts.com

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

AMG Advanced Metallurgical Group N.V. Reports Record Full Year and Fourth Quarter 2017 Results

Mrz 8, 2018

Key Highlights

• Revenue increased by 18% to $280.7 million in the fourth quarter 2017 from $237.9 million in the fourth quarter 2016
• EBITDA⁽²⁾ was $33.0 million in the fourth quarter 2017, a 10% increase over the same period in 2016
• On a full year basis, EBITDA in 2017 increased by 25% to $125.5 million, from $100.7 million in the prior year
• EPS, on a fully diluted basis, increased by 41% to $0.45 in the fourth quarter 2017 from $0.32 in the fourth quarter 2016
• Record high annual net income and EPS, on a fully diluted basis, in Company history
• Return on capital employed increased to 21.2% in 2017, as compared to 18.8% in 2016

• Total 2017 dividend proposed of €0.28 per ordinary share, including the interim dividend of €0.14, paid on August 15, 2017

Amsterdam, 8 March 2018 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) reported fourth quarter 2017 revenue of $280.7 million, an 18% increase from $237.9 million in the fourth quarter 2016. EBITDA for the fourth quarter 2017 was $33.0 million, a 10% increase from $30.0 million in the fourth quarter 2016. On a full year basis, EBITDA increased by 25% to $125.5 million, from $100.7 million in the prior year.

Net income attributable to shareholders increased to $14.3 million in the fourth quarter 2017 from $10.0 million in the fourth quarter 2016, and EPS, on a fully diluted basis, increased by 41% to $0.45 in the fourth quarter 2017 from $0.32 in the fourth quarter 2016. On a full year basis, net income attributable to shareholders increased by 40% to $57.0 million in 2017 from $40.6 million in 2016, and EPS, on a fully diluted basis, increased by 36% to $1.80 in 2017 from $1.32 in 2016.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, „Very strong financial results in the fourth quarter 2017 resulted in the highest annual net income and earnings per share in the Company’s history. Furthermore, an exceptionally strong order intake in AMG Engineering of $91.0 million in the fourth quarter resulted in the highest level of order backlog in over 8 years.

AMG Critical Materials generated EBITDA of $26.9 million during the fourth quarter 2017, an increase of 22% from $22.1 million in the fourth quarter of 2016, due to a combination of higher vanadium prices, improved product mix and strong sales volumes.

AMG Engineering signed $91.0 million in new orders during the fourth quarter of 2017, representing a 1.36x book to bill ratio, due to strong orders of turbine blade coating and nuclear waste treatment furnaces. Order backlog was $207.0 million as of December 31, 2017, a 53% increase from $135.5 million as of December 31, 2016. AMG Engineering achieved EBITDA of $6.1 million during the fourth quarter 2017, a decrease of $1.8 million compared to the fourth quarter of 2016, due primarily to higher SG&A costs in the quarter.

In the fourth quarter of 2017, AMG generated cash from operating activities of $33.3 million, an increase of $17.7 million, or 114%, over the same period in 2016. On a full year basis, AMG generated cash from operating activities of $78.5 million in 2017, an increase of $22.3 million, or 40%, compared to the same period in 2016.

As regards to guidance, in our annual general meeting in May 2017, we introduced our new ‚Strategic Framework‘, and our long-term goal to increase EBITDA to $200 million or more, in 5 years or less, through the execution of a combination of well-developed, highly accretive growth projects, including AMG’s entrance into the lithium market.

This statement of long term strategy has to be amended in light of what we achieved and learned in 2017, and to date in 2018. We now believe we can achieve our goals earlier than previously expected and can commit to turning the present EBITDA level into $200 million, or more, in the fiscal year ending December 31, 2020.“

Key Figures

Notes: 

1. EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
2. EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Critical Materials

AMG Critical Materials‘ revenue in the fourth quarter increased by $48.0 million, or 29%, to $214.0 million, driven by improved vanadium, aluminum, titanium master alloys, antimony, silicon and graphite prices, and higher sales volumes of chrome, titanium, antimony, and silicon products.

Gross profit before non-recurring items in the fourth quarter increased by $8.3 million, or 26%, to $40.1 million. Strong financial performances in vanadium, aluminum, titanium alloys and silicon metal in the quarter were partially offset by lower gross profit in tantalum. The reduction in tantalum gross profit was driven by lower prices during the fourth quarter 2017, compared to the same period in the prior year.

SG&A expenses in the fourth quarter 2017 increased by $3.1 million, or 16%, compared to the same period in the prior year, due to higher personnel costs and professional fees.

EBITDA increased by $4.8 million, or 22%, to $26.9 million in the fourth quarter of 2017 due to higher levels of gross profit, partially offset by an increase in SG&A expenses.

AMG Engineering

AMG Engineering signed $91.0 million in new orders during the fourth quarter of 2017, representing a 1.36x book to bill ratio, due to strong orders of turbine blade coating and nuclear waste treatment furnaces. Order backlog was $207.0 million as of December 31, 2017, a 53% increase from $135.5 million as of December 31, 2016. On a full year basis, AMG Engineering signed $290.4 million in new orders, representing a 1.18x book to bill ratio.

AMG Engineering’s fourth quarter 2017 revenue decreased by $5.2 million, or 7%, to $66.7 million, due to lower sales of remelting, vacuum induction and heat treatment furnaces, partially offset by higher sales of turbine blade coating furnaces.

Fourth quarter 2017 gross profit before non-recurring items increased by $0.9 million, or 5%, to $17.5 million, and gross margin before non-recurring items improved to 26% from 23% in the fourth quarter of 2016, due to product mix effects.

SG&A expenses increased by $1.9 million in the fourth quarter 2017 due to higher employee related expenses and research & development costs.

EBITDA decreased by $1.8 million to $6.1 million in the fourth quarter of 2017, due to higher SG&A expenses, partially offset by higher levels of gross profit before non-recurring items.

On a full year basis, EBITDA in 2017 reduced by 6% from $27.0 million in 2016 to $25.5 million. However, EBITDA in the prior year benefited from the sale of an unused production facility in Berlin during the third quarter 2016, which contributed $4.3 million in EBITDA. Excluding this benefit in 2016, EBITDA in 2017 increased by 27%, compared to the prior year.

Financial Review

Tax

AMG recorded an income tax expense of $13.9 million in 2017 as compared to $8.1 million in 2016. The increase in income tax expense was driven by higher levels of profitability in 2017, compared to the prior year.

Due to the volatile nature of the company’s deferred tax balances, AMG believes that the cash tax rate is a more meaningful metric. AMG paid taxes of $10.3 million in 2017 as compared to $6.6 million in 2016. For 2017, AMG’s effective cash tax rate was 14%, as compared to 13% in 2016.

Non-Recurring Items

AMG’s fourth quarter 2017 and full year 2017 gross profit include non-recurring items, which are not included in the calculation of EBITDA.

A summary of non-recurring items in 2017 and 2016 are below:

Non-recurring items included in gross profit

Gross profit before non-recurring items by reporting segment

AMG Critical Materials and AMG Engineering gross profit in the fourth quarter 2017 was negatively impacted by restructuring costs related to cost reduction initiatives in Germany. In addition, AMG Critical Materials incurred asset impairment expenses in both the USA and Germany during the quarter.

Environmental expense

During the fourth quarter 2017, AMG recorded a non-recurring environmental expense of $3.1 million related to its Newfield, NJ site, which is not included in the calculation of EBITDA.

Liquidity

AMG had a net debt position of $10.3 million as of December 31, 2017. Net debt increased by $3.0 million from December 31, 2016, while gross debt increased by $21.0 million.

Cash from operating activities increased to $78.5 million in 2017 from $56.2 million in 2016. In the prior year, the Company made $23.1 million of discretionary pension contributions, which reduced cash from operating activities.

Capital expenditures increased to $80.9 million in 2017 compared to $44.1 million in 2016. Capital spending in 2017 included $32.0 million of maintenance capital, compared to $18.4 million in 2016. The largest expansion capital projects in 2017 were AMG’s lithium project in Brazil and the titanium aluminide expansion in Germany.

Including the $178.8 million of cash, AMG had $329.4 million of total liquidity as of December 31, 2017.

Net Finance Costs

AMG’s fourth quarter 2017 net finance costs were $2.3 million compared to less than $0.1 million in the fourth quarter of 2016. The increase was primarily due to currency gains associated with the Mozambique Metical in the fourth quarter 2016.

SG&A

AMG’s fourth quarter 2017 SG&A expenses were $35.0 million, an increase of 17% from the same period in the prior year.

Full year 2017 SG&A expenses were $132.3 million, a 1% increase from $130.8 million in 2016, primarily due to an increase in research & development costs and professional fees.

Final Dividend Proposed

AMG intends to declare a dividend of €0.28 per ordinary share over the financial year 2017. The interim dividend of €0.14, paid on August 15, 2017, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.14.

A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 2, 2018.

Lithium Project Update

AMG’s lithium project is progressing in-line with expectations, and production is expected to commence mid-2018.

On December 12, 2017, AMG announced that the Supervisory Board of AMG had approved the construction of a second lithium concentrate plant at the Mibra mine in Brazil, with an annual production capacity of 90,000 tons.

AMG expects to complete the planned expansion by the end of 2019, and the total capital investment is approximately $110 million. Once completed, total annual production capacity from AMG’s Mibra mine will increase to 180,000 tons of lithium concentrate and 600,000 lbs of tantalum concentrate. As part of the investment, AMG will also expand and develop the existing mining infrastructure to support the expanded lithium and tantalum operations.

Outlook and Strategy

As regards to guidance, in our annual general meeting in May 2017, we introduced our new ‚Strategic Framework‘, and our long-term goal to increase EBITDA to $200 million or more, in 5 years or less, through the execution of a combination of well-developed, highly accretive growth projects, including AMG’s entrance into the lithium market.

This statement of long term strategy has to be amended in light of what we achieved and learned in 2017, and to date in 2018. We now believe we can achieve our goals earlier than previously expected and can commit to turning the present EBITDA level into $200 million, or more, in the fiscal year ending December 31, 2020.

2018 has started very well. For the year, we expect our financial performance to show significant improvement compared to 2017, on route to this long term strategic guidance.

*Reclassified share reserves from other reserves to retained earnings (deficit) for December 31, 2016

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are „forward looking.“  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved.  These forward-looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.

AMG Advanced Metallurgical Group N.V. Added to the Euronext AMX® Mid Cap Index

Mrz 7, 2018

Amsterdam, 7 March 2018 — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce that it has been promoted from the AScX^® (small cap) to the AMX^® (mid cap) index, effective Monday, March 19^th, 2018.

Euronext announced the results of the annual review of its AEX^®, AMX^® and AScX^® indices today, which are based on free-float adjusted market capitalization and liquidity.

The promotion reflects AMG’s strong financial performance and the Company’s commitment to execute a combination of well-developed, highly accretive growth projects, including AMG’s entrance into the lithium market.

About AMG

AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

About Euronext

Euronext is the leading pan-European exchange in the Eurozone with nearly 1,300 listed issuers worth close to €3.6 trillion in market capitalisation as of end December 2017, an unmatched blue chip franchise consisting of 24 issuers in the Morningstar® Eurozone 50 IndexSM and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets. Its total product offering includes Equities, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, Euronext also operates Euronext GrowthTM (formerly known as Alternext) and Euronext AccessTM (formerly known as the Free Market). For the latest news, find us on Twitter (twitter.com/euronext) and LinkedIn (linkedin.com/euronext).

Disclaimer: The compiler retains the right to change the published selection, for instance in case of a removal due to a take-over, till the publication of the final data after close of Wednesday 14 March 2018. All events happening after that date will not lead to a replacement of the selected company that possibly needs to be removed from the final selection.

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

AMG Announces Changes to the Composition of its Supervisory Board and Nominates its CEO for Re-Appointment When His Term Ends in 2019

Mrz 7, 2018

Amsterdam, 7 March 2018 (Regulated Information) — The Supervisory Board of AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) resolved during its meeting on March 7^th, 2018 to make the following changes to its composition and to nominate Dr. Heinz Schimmelbusch as CEO for an additional term of two years when his current term expires in 2019.

Supervisory Board Composition

At the Annual General Meeting („AGM“) in May 2018, Mr. Norbert Quinkert and Mr. Guy de Selliers will have both served eleven years on the Supervisory Board of AMG when their current terms end. Both gentlemen have indicated that they wish to retire from the Supervisory Board in May 2018, given other priorities and the term limits for Supervisory Directors of the new Code. The Supervisory Board is deeply grateful for the long service and dedication to AMG by Messrs. Quinkert and de Selliers.

Before becoming Chairman in 2015, Mr. Quinkert was a long-serving member of AMG’s Selection & Appointment Committee and has been a major contributor to the excellent quality of AMG’s current leadership team. As Chairman, Mr. Quinkert successfully guided AMG through a challenging period during the past three years.

Mr. de Selliers has served throughout his tenure at AMG as a highly respected member of AMG’s Audit & Risk Management Committee and has been an important force in establishing AMG’s state of the art risk management system.
The Supervisory Board thanks both gentlemen for their valuable insights and contributions and wishes them well in their future endeavors.

Mr. Robert Meuter has also indicated that he wishes to step down at the AGM 2018 after having served three years. Mr. Meuter feels that his mandate has ended and wishes to prioritize other engagements. The Supervisory Board respects and accepts Mr. Meuter’s decision and thanks him for his valuable insights and contributions and wishes him well in his future endeavors. Mr. Meuter will continue to advise the Company on specific banking & finance matters in the forthcoming year, if so requested.

Dr. Donatella Ceccarelli will have served four years on the Supervisory Board in May 2018 and AMG is very pleased to announce that Dr. Ceccarelli will make herself available for re-appointment for a term of four years at the AGM in May of this year.

Given the retirement of Mr. Quinkert as member and Chairman of the Supervisory Board in May 2018, AMG is pleased to announce that the Supervisory Board has appointed Mr. Jack Messman, currently Vice-Chairman, as successor to Mr. Quinkert as Chairman of the Supervisory Board as of May 2^nd, 2018 after the AGM.  Mr. Messman’s term as member of the Supervisory Board ends in 2019.  The Supervisory Board has further resolved to appoint Mr. Willem van Hassel as Vice-Chairman, as of May 2^nd, 2018 after the AGM, succeeding Mr. Messman. Mr. van Hassel’s term as member of the Supervisory Board ends in 2021.

The Supervisory Board has further resolved that it will reduce the size of the Supervisory Board from nine to six members, effective May 2^nd, 2018. The Supervisory Board believes that with its new composition, it will continue to cover the necessary areas of expertise as set forth in AMG’s Supervisory Board profile.

Management Board Composition

The Supervisory Board has reviewed the respective terms of the three Management Board members who all received high praise at their annual evaluation by the Supervisory Board in November of last year. The term of the CEO and Chairman of the Management Board (Dr. Schimmelbusch) will expire in 2019. The term of the CFO (Mr. Dunckel) will expire in 2020, and the term of the COO (Mr. Jackson) will expire in 2021.

AMG is in a critical phase of its development. The expansion of lithium and tantalum operations in Brazil, as well as the related new credit facilities and continued recognition of AMG as investment opportunity or strategic partner, demand a stable corporate atmosphere with clear continuity in leadership and strategy.

The Supervisory Board evaluates on an ongoing basis the scope and composition of the Management Board and the succession of the members of the Management Board. The Supervisory Board recognizes that in meetings with investors and banks relating to strategic issues for AMG and its business, questions were asked about the leadership continuity.

AMG’s current CEO, Dr. Heinz Schimmelbusch, is one of the incorporators of AMG and the intellectual designer of AMG’s successful strategy. His appraisals have all been excellent and, where needed, he has demonstrated ample and continuous innovation and agility.

The Supervisory Board has therefore concluded that it is of utmost importance that AMG secure his leadership for the coming years as CEO and Chairman of the Management Board, given the transformational change the Company is currently executing.

As a result, the Supervisory Board announces that it will nominate Dr. Heinz Schimmelbusch for re-appointment at the AGM in May of this year as CEO and Chairman of the Management Board for an additional two-year term, covering 2020 and 2021, after his current term expires in 2019, to secure AMG’s leadership for the next three years and to provide ample time to decide on succession as well as a reasonable induction period for a new incoming CEO.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

About AMG

AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

AMG Announces Long-Term Spent Catalyst Recycling Agreement and Recycling Capacity Expansion

Feb 21, 2018

Amsterdam, 21 February 2018 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce that AMG Vanadium has signed a long-term multi-year agreement, with an existing customer, to process and recycle spent catalysts from a major oil refinery in North America.

In order to meet increasing demand from both existing and new customers, AMG has approved the expansion of its spent catalyst recycling operations. The total investment is estimated at $35 million and will primarily involve the installation of a new flue gas desulfurization unit at AMG Vanadium’s facility in Cambridge, Ohio. AMG expects to complete the expansion by the end of 2019 and once completed, AMG Vanadium’s spent catalyst recycling capacity will increase by approximately 30%. The expansion is subject to environmental permitting, which is expected to be completed in the third quarter 2018.

„As the largest producer of ferrovanadium in North America, the expansion will solidify our existing market position and enable AMG Vanadium to better meet our customers‘ future requirements“, said Mr. Hoy Frakes, President of AMG Vanadium. „In addition, the expansion of our spent catalyst recycling operations in Cambridge, Ohio, will allow AMG Vanadium to continue to provide our partners with an industry-leading environmental solution for their spent catalyst recycling needs as their requirements grow“.

Located in Cambridge, Ohio, AMG Vanadium specializes in the environmentally beneficial conversion of oil refinery and power plant waste products into ferrovanadium, nickel and molybdenum primarily used by global steel producers in automotive, energy transmission and infrastructure applications. By using materials that would otherwise be discarded as waste, AMG Vanadium encourages environmental stewardship, energy conservation and resource recovery.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
  

About AMG

AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

AMG Advanced Metallurgical Group N.V. Completes Issuance of $650 Million of Credit Facilities

Feb 1, 2018

Amsterdam, 1 February 2018 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce that it has entered into a new $350 million 7-year senior secured term loan B facility („term loan“), a $200 million 5-year senior secured revolving credit facility, and a $100 million 5-year letter of credit facility to support AMG Engineering. The total facility amount of $650 million replaces AMG’s existing credit facilities which total $400 million. AMG will use the proceeds of the new term loan to refinance its existing credit facility, which was due to expire in July 2021, and provide capital to fund strategic expansion projects.

The refinancing was well received in the debt markets, allowing AMG to secure attractive pricing while enhancing liquidity, improving flexibility and extending its debt maturity profile.

Dr. Heinz Schimmelbusch, Chief Executive Officer of AMG, stated, „We want to thank our lead arrangers, HSBC and Citigroup, for their efficient work. The new long-term facility represents one very important building block in the execution of our stated target to increase EBITDA to $200 million, or more, in 5 years, or less. Given the positive steps we have taken in 2017, we will provide a full strategic update during the annual general meeting of shareholders in May 2018.“

HSBC Securities (USA) Inc. and Citigroup Global Markets Inc. acted as joint lead arrangers and joint bookrunners on the credit facilities. Fifth Third Bank and ABN AMRO Capital USA LLC acted as co-managers. The letter of credit facility was arranged bi-laterally with UniCredit Bank AG, Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch and Raiffeisen Bank International AG.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
  

About AMG

AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

AMG Advanced Metallurgical Group N.V. Approves Expansion of Lithium and Tantalum Operations in Brazil

Dez 12, 2017

Amsterdam, 12 December 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce that the Supervisory Board of AMG has approved the construction of a second lithium concentrate plant at the Mibra mine in Brazil, with an annual production capacity of 90,000 tons.

AMG expects to complete the planned expansion by the end of 2019, and the total capital investment is approximately $110 million. Once completed, total annual production capacity from AMG’s Mibra mine will increase to 180,000 tons of lithium concentrate and 600,000 lbs of tantalum concentrate. As part of the investment, AMG will also expand and develop the existing mining infrastructure to support the expanded lithium and tantalum operations. Construction permits for the new lithium concentrate and tantalum concentrate plants have already been secured.

In conjunction with this investment, AMG has mandated HSBC and Citi to raise $500 million in new credit facilities, comprised of a $300 million seven-year Term Loan B and a $200 million undrawn Revolving Credit facility. The new facilities are intended to refinance AMG’s existing term loan as well as fund incremental capital expenditures. AMG expects to finalize the new facility in the first quarter of 2018.

The construction of AMG’s first lithium concentrate plant is proceeding on time and on budget, with production start-up scheduled for June 2018.

The previously published Technical Report on Mineral Resources states that AMG’s Mibra mine has 20.3 million tons of measured and indicated resources, including tantalum, niobium, tin and lithium. Based upon the expanded production level of 180,000 tons of lithium concentrate from 2020 onwards, AMG estimates that the current life of the mineral resource is approximately 20 years.

Further details of AMG’s lithium project can be found on AMG’s website under www.amg-nv.com/Investors/Presentations.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
  

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal.  AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

AMG Advanced Metallurgical Group N.V. Reports Third Quarter 2017 Results

Nov 2, 2017

Key Highlights

• Revenue increased by 5% to $258.9 million in the third quarter 2017 from $247.5 million in the third quarter 2016
• EBITDA⁽²⁾ was $27.6 million in the third quarter 2017, an increase of $4.2 million, or 18%, over the same period in 2016
• Operating profit increased by 10% to $17.8 million in the third quarter 2017 from $16.1 million in the third quarter 2016
• Net income attributable to shareholders increased by 169% to $14.0 million in the third quarter 2017 from $5.2 million in the third quarter 2016
• EPS, on a fully diluted basis, was $0.44 in the third quarter 2017, an increase of $0.26, or 144%, over the same period in 2016
• Cash from operating activities on a year to date basis was $45.3 million, an increase of $4.6 million, or 11%, over the same period in 2016
• Annualized return on capital employed increased to 21.5% in the third quarter 2017, as compared to 18.0% in the third quarter 2016
• AMG has mandated Outotec OYJ, Finland, to complete engineering work for a second lithium concentrate plant at the Mibra mine in Brazil

Amsterdam, 2 November 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) reported third quarter 2017 EBITDA of $27.6 million, an 18% increase from $23.4 million in the third quarter 2016. Revenue increased to $258.9 million in the third quarter 2017, an increase of $11.4 million, or 5%, from the third quarter 2016. Net income attributable to shareholders for the third quarter 2017 was $14.0 million, a 169% increase from $5.2 million in the third quarter 2016.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, „AMG’s third quarter 2017 performance was once again strong across all of our key financial and operational metrics, driven primarily by improved pricing and volume in our Critical Materials business. On a year to date basis, net income attributable to shareholders has increased by $12.0 million, or 39%, to $42.6 million, resulting in a 29% year to date improvement in EPS, on a fully diluted basis.

I am pleased to announce that during the quarter, we further advanced our work on the first lithium concentrate plant at the Mibra mine in Brazil, in accordance with our EPC contract development schedule with Outotec OYJ, Finland. Furthermore, as announced today, we have signed a contract with Outotec to complete engineering work for a second lithium concentrate plant at the Mibra mine in Brazil. The annual design capacity of the second lithium concentrate plant will be 90,000 tons, leading to a combined annual production capacity of 180,000 tons. We expect to make a final investment decision for the second plant in December 2017 and reach full operating capacity by the end of 2019.

AMG Critical Materials generated EBITDA of $23.5 million during the third quarter 2017, thanks to strong financial performance in vanadium and titanium alloys, and the recognition of $4.6 million in business interruption insurance, following the fire at the Mibra mine in Brazil.

AMG Engineering’s EBITDA of $4.1 million in the third quarter 2017 was down compared to the third quarter 2016, mainly due to the $4.3 million gain on the sale of an unused production facility recognized in the prior year.

In the third quarter of 2017, AMG generated cash from operating activities of $16.8 million, a decrease of $3.9 million, or 19%, over the same period in 2016. On a year to date basis, AMG generated cash from operating activities of $45.3 million in 2017, an increase of $4.6 million, or 11%, compared to the same period in 2016.“

Key Figures

Note: 

1. EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
2. EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Critical Materials

AMG Critical Materials‘ revenue in the third quarter increased by $25.9 million, or 15%, to $203.4 million, driven by improved vanadium, aluminum, titanium, antimony, chrome and graphite prices, and higher sales volumes of vanadium, chrome, antimony, and titanium products.

Gross profit in the third quarter increased by $4.8 million, or 15%, to $36.7 million. Strong financial performance in vanadium and titanium alloys in the quarter was partially offset by lower gross profit in tantalum, aluminum and antimony. The reduction in tantalum gross profit was driven by lower sales volumes due to the fire damage sustained at the Mibra mine in Brazil in the first quarter of 2017, and lower sales prices.

AMG is insured for the interruption to the tantalum business and has recorded insurance proceeds of $4.6 million during the third quarter 2017, which is included within gross profit and EBITDA.

Additional insurance proceeds, in respect of both business interruption and property damage, are expected to be recorded in the fourth quarter 2017. In accordance with IFRS, AMG is recognizing the insurance proceeds as recovery amounts are finalized.

SG&A expenses in the third quarter 2017 decreased by $1.8 million, or 8%, compared to the same period in the prior year, primarily due to a reduction in share-based compensation expenses.

Third quarter 2017 EBITDA margin increased to 12%, compared to 8% in the third quarter 2016.

AMG Engineering

AMG Engineering signed $40.5 million in new orders during the third quarter 2017, representing a 0.73x book to bill ratio. Order backlog was $175.9 million as of September 30, 2017, an increase of $40.4 million, or 30%, from December 31, 2016. Order intake in the third quarter was adversely impacted by the timing of a number of large orders which are expected to be finalized in the near term.

AMG Engineering’s third quarter 2017 revenue decreased $14.4 million, or 21%, to $55.6 million. Revenue in the quarter was adversely impacted due to a high proportion of early stage, large contracts in the engineering division which increase quarterly volatility. We do not expect any significant impact on revenue or earnings on an annualized basis as a result of the higher proportion of large contracts within the order backlog.

Third quarter 2017 gross profit increased slightly by $0.2 million, or 1%, to $14.6 million, and gross margin increased to 26% from 21%, due to a greater proportion of revenue being generated from high margin, aerospace market facing products in the quarter.

SG&A expenses increased by $0.9 million, or 8%, compared to the third quarter 2016, primarily due to higher employee related expenses and research & development costs, offset by lower share-based compensation expenses.

EBITDA decreased by $4.8 million to $4.1 million in the third quarter 2017. The year over year reduction was primarily due to the recognition of a $4.3 million gain on the sale of an unused production facility in Berlin in the third quarter of 2016.

Financial Review

Tax

AMG recorded an income tax expense of $1.7 million in the third quarter 2017 as compared to a tax expense of $4.1 million in the same period in 2016. The lower tax expense in the third quarter 2017 was primarily due to a drop in the Brazilian Real, which reduced income tax expense.

Due to the volatile nature of the Company’s deferred tax balances caused by items such as the Brazil currency fluctuations, AMG focuses on cash tax payments.  AMG paid taxes of $3.2 million in the third quarter 2017 as compared to tax payments of $1.1 million in the same period in 2016. For the third quarter 2017, AMG’s effective cash tax rate was 21%, compared to 12% in the same period in 2016. The increase is due to higher profitability in countries where the Company does not have tax losses carried forward to reduce tax liabilities.

Non-Recurring Items

AMG’s third quarter 2017 gross profit of $51.3 million includes non-recurring items, which are not included in the calculation of EBITDA.

A summary of non-recurring items included in gross profit in the third quarters of 2017 and 2016 are below:

Non-recurring items included in gross profit

Gross profit before non-recurring items by reporting segment

As noted in AMG’s 2016 financial statements, the Company modified its income statement presentation in order to take into consideration ESMA’s latest recommendations. This resulted in the reclassification of restructuring expenses and asset impairment expenses into expenses by function, and consequently gross profit.

Liquidity

AMG had a net debt position of $15.4 million as of September 30, 2017. Total debt increased by $19.1 million and net debt increased $8.1 million from December 31, 2016, as we borrowed in Brazil for our first spodumene plant.

Cash from operating activities decreased by $3.9 million, or 19%, to $16.8 million in the third quarter 2017, due to an increase in working capital during the quarter which was largely driven by an increase in accounts receivable related to increases in price and volume in AMG Critical Materials.

Capital expenditures increased to $23.2 million in the third quarter 2017 compared to $8.3 million in the same period in 2016. Capital spending in the third quarter 2017 included $9.2 million of maintenance capital. The largest expansion capital projects were the lithium project in Brazil, and the titanium aluminide expansion in Germany.

Including the $171.8 million of cash, AMG had $338 million of total liquidity as of September 30, 2017.

Net Finance Costs

AMG’s third quarter 2017 net finance costs decreased to $2.3 million from $6.8 million in the third quarter 2016, due to significant finance costs recognized in the third quarter of 2016 as a result of refinancing the credit facility.

SG&A

AMG’s third quarter 2017 SG&A expenses were $33.8 million compared to $34.7 million in the third quarter 2016, primarily due to a decrease in share-based compensation expenses of $4.3 million, partially offset by higher employee related expenses of $2.8 million.

Outlook

AMG expects full year 2017 EBITDA to improve by 10%, or more, relative to 2016.

In 2018, AMG expects to continue its strong financial performance and improve profitability relative to 2017.

*Reclassified share reserves from other reserves to retained earnings (deficit) for December 31, 2016

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs, engineers, and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, China, Mexico, Brazil, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are „forward looking.“  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved.  These forward-looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.

AMG Advanced Metallurgical Group N.V. Signs Engineering Contract for Lithium Concentrate Expansion

Nov 2, 2017

Amsterdam, 2 November 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) is pleased to announce that it has mandated Outotec OYJ, Finland, to complete detailed engineering for a second lithium concentrate plant at the Mibra mine in Brazil. The annual design capacity of the second plant will be 90,000 tons, leading to a combined annual production capacity of 180,000 tons of lithium concentrate.

Parallel to the engineering work on the second lithium concentrate plant, AMG is finalizing plans to double the operating capacity of the Mibra mine.

The final investment decision for the second lithium concentrate plant is scheduled for December 2017. AMG expects the second lithium concentrate plant to be in production by the end of 2019.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
  

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal.  AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).  

For further information, please contact:
AMG Advanced Metallurgical Group N.V.         +1 610 293 5804
Steve Daniels
Senior Vice President
sdaniels@amg-nv.com

Disclaimer
Certain statements in this press release are not historical facts and are „forward looking“.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words „expects,“ „believes,“ „anticipates,“ „plans,“ „may,“ „will,“ „should,“ and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.