Amsterdam, 21 February 2024(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported record-setting adjusted EBITDA $350 million in 2023, due largely to strong profitability in our lithium and vanadium businesses. Fourth quarter 2023 revenue was $367 million, a 6% decrease versus the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA of $71 million decreased 32% compared to the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG’s history, and 33% higher than the $168 million in 2022.
In 000’s US dollars
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$367,235
$390,004
(6%)
$1,625,861
$1,642,774
(1%)
Adjusted EBITDA (1)
71,142
104,061
(32%)
350,491
342,550
2%
Cash from operating activities
44,704
56,969
(22%)
223,000
167,567
33%
Return on Capital Employed
26.3%
30.8%
26.3%
30.8%
Note: (1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG has achieved the highest adjusted EBITDA in its 16 year history with $350 million for the full year 2023. Market conditions for all products within our portfolio substantially weakened as the year progressed. The 32% decrease in adjusted EBITDA compared to the fourth quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium decreased over 76% and 26%, respectively, versus the average pricing in the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG’s history, and 33% higher than the $168 million in 2022. We were $38 million free cash flow positive for the year despite investing $169 million in capital projects as well as acquiring a 25% stake in Zinnwald in 2023. This underscores our low-cost position in both lithium and vanadium. We ended the year in a $323 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023. AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $350 million in new orders during 2023, the highest full year order intake in AMG’s history, and 24% higher than in 2022. This record order intake was driven by strong orders of remelting and heat treatment furnaces, representing a 1.27x book to bill ratio. AMG’s order backlog was $295 million as of December 31, 2023.
Through its critical materials science-based solutions, AMG, as its mission, seeks to contribute to CO2 reduction by way of “enabling” its customers to increase the efficiency of renewable energy production, and to “enable” energy saving strategies. We measure the enabled contribution to CO2 reduction at our customer level via stringent third-party developed life cycle assessments. We based this mission on the belief that in this obviously high growth environment, we could achieve both above average financial returns and use our proprietary technologies to be at the forefront of the industrial contribution to atmospheric CO2 reduction. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2023 enabled 110.3 million tons of CO2 reduction, 11% more than the 99.4 million tons of enabled CO2 reduction in 2022.”
Lithium
In Brazil, our lithium concentrate plant will temporarily stop production for the change-over period in March 2024 in order to facilitate the expansion from 90,000 tons to 130,000 tons. We expect to produce 93,000 tons for the full year of 2024 and will operate at the full expanded capacity rate, or 130,000 tons per year, in the fourth quarter of 2024.
AMG’s lithium hydroxide refinery’s first 20,000-ton module in Bitterfeld, Germany, is in advanced phases of commissioning, and the product qualification process is planned to start in the third quarter of 2024.
Vanadium
The Zanesville, Ohio facility exceeded our target production volumes in the fourth quarter of 2023. The production from both the roasting operation and the melt shop exceeded historical averages achieved by the Cambridge, Ohio operation.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualified for Section 45X effective from 2023 onwards, which provides a production credit for domestic manufacturing of critical materials. Based on preliminary regulations as issued by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. The ruling is still in the comment period and, as such, is subject to a final determination.
AMG’s innovative lithium vanadium battery (“LIVA”) projects are integral for industrial power management applications and accelerate the energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are currently under contract and being engineered, and 15 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 749 MWh.
AMG LIVA has agreed to acquire the Vanadium Redox Flow Battery (“VRFB”) activities from J.M. VOITH SE & CO. KG (“VOITH”). VOITH has developed an advanced technology for controlling and balancing large-scale high-voltage VRFB energy storage systems. The technology complements LIVA’s VRFB system development. LIVA will continue to develop the technology and integrate it into its large-scale energy storage systems.
The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. We expect to have nameplate capacity available by the second half of 2024.
AMG Vanadium has acquired the processing technologies and IP related activities from Transformation Technologies Inc. (“TTI”), a US company based in Oregon. This unique thermal treatment of spent catalyst and other oil refinery wastes into valuable products is complementary to AMG’s existing spent catalyst processing technology and know-how. AMG will integrate the TTI technology into its global strategic growth initiatives conducted through Shell & AMG Recycling (“SARBV”).
SARBV’s “Supercenter” project in the Middle East is a facility to produce high-purity vanadium oxides for applications such as chemicals and aerospace as well as vanadium electrolyte for the long duration energy storage market in the Kingdom of Saudi Arabia. The facility will operate under a long-term supply contract with Saudi Aramco for vanadium-containing gasification ash from its power plants in the Kingdom. For illustration purposes, Phase 1 of the Supercenter plans to produce 8 million pounds of vanadium oxide from 7,000 metric tons of gasification ash located at a site in Jubail, Kingdom of Saudi Arabia. The FEL3 basic engineering has been submitted. The full Supercenter project will also include the processing of spent catalysts, a Fresh Catalyst R&D facility and a LIVA Hybrid Energy Storage System.
Financial Highlights
AMG’s full year 2023 adjusted EBITDA was a record-setting $350 million due largely to high profitability in our lithium and vanadium businesses, offset by lower profit in AMG Critical Minerals.
Cash from operating activities was $223 million in 2023, compared to $168 million in 2022, largely driven by the lithium and vanadium expansion projects as well as strong cash flows from our Silicon business driven by energy sales.
AMG’s free cash flow(1) was $38 million in 2023.
AMG’s liquidity as of December 31, 2023 was $540 million, with $345 million of unrestricted cash and $195 million of revolving credit availability.
Annualized return on capital employed was 26.3% for 2023, compared to 30.8% in 2022.
AMG Engineering signed $350 million in new orders during 2023, the highest in AMG’s history and 24% higher than in 2022.
The total 2023 dividend proposed is €0.60 per ordinary share, including the interim dividend of €0.40, paid on August 9, 2023.
Note: (1) Free cash flow is defined as cash flows from operating activities less cash flows used in investing activities.
Key Figures
In 000’s US dollars
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$367,235
$390,004
(6%)
$1,625,861
$1,642,774
(1%)
Gross profit
55,252
119,981
(54%)
389,431
409,486
(5%)
Gross margin
15.0%
30.8%
24.0%
24.9%
Operating profit
19,503
82,319
(76%)
221,752
307,059
(28%)
Operating margin
5.3%
21.1%
13.6%
18.7%
Net income attributable to shareholders
2,173
60,697
(96%)
101,320
187,589
(46%)
EPS – Fully diluted
0.07
1.85
(96%)
3.12
5.73
(46%)
EBIT (1)
56,706
91,719
(38%)
295,855
297,251
—%
Adjusted EBITDA (2)
71,142
104,061
(32%)
350,491
342,550
2%
Adjusted EBITDA margin
19.4%
26.7%
21.6%
20.9%
Cash from operating activities
44,704
56,969
(22%)
223,000
167,567
33%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$157,594
$176,065
(10%)
$725,505
$667,804
9%
Gross profit
35,112
81,583
(57%)
274,387
267,862
2%
Operating profit
28,576
69,779
(59%)
217,309
222,590
(2%)
Adjusted EBITDA
55,924
80,347
(30%)
297,190
259,480
15%
AMG Clean Energy Materials’ revenue decreased 10% compared to the fourth quarter of 2022, to $158 million, driven mainly by the 76% and 26% decrease in prices for lithium carbonate and ferrovanadium, respectively, since the fourth quarter of 2022. This price decrease was partially offset by increased volumes in vanadium and lithium. Higher average annual prices for spodumene as well as higher sales volumes of vanadium, lithium concentrate, and tantalum propelled revenue for the segment 9% higher on a full year basis. In 2023, ferrovanadium and tantalum concentrate sales increased 45% and 56%, respectively, versus the prior year.
Gross profit for the quarter decreased 57% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver was the lithium price decline, which fell 76% since the fourth quarter of 2022. Full year gross profit increased 2% compared to 2022, due to the higher prices and volumes noted above.
SG&A expenses of $67 million in 2023 were 47% higher than in 2022, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs, professional fees and research and development costs.
The fourth quarter 2023 adjusted EBITDA decreased 30%, to $56 million, from $80 million in the fourth quarter of 2022, due to the decline in metal prices as noted above. Full year 2023 adjusted EBITDA, however, was 15% higher than in 2022, driven by higher prices and higher volumes as well as the incremental dividend noted below.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualifies for Section 45X which provides a production credit for domestic manufacturing of critical materials from 2023 onwards. Based on preliminary regulations as issued by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. This subsidy is included in gross profit. The ruling is still in the comment period and, as such, is subject to a final determination.
AMG received a $10 million dividend from an equity investment which is included in adjusted EBITDA.
During the fourth quarter of 2023, a total of 29,706 dry metric tons (“dmt”) of lithium concentrates were sold, 39% higher than the 21,329 dmt in the fourth quarter of 2022 due to shipping variances in 2023. The average realized sales price was $1,943/dmt CIF China for the quarter. The average cost per ton for the quarter was $498/dmt CIF China.
During 2023, a total of 95,097 dry metric tons (“dmt”) of lithium concentrates were sold, an increase of 8,384 dmt versus 2022. The average realized sales price for 2023 was $3,160/dmt CIF China, an increase of $355/dmt over 2022. The average cost per ton for 2023 was $475/dmt CIF China.
It is important to note that fourth quarter pricing benefited from the timing lag experienced related to the contractual pricing agreements with our lithium concentrate customers. The prices of lithium concentrate and lithium carbonate have declined 56% and 41%, respectively, since the end of the third quarter 2023.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. AMG is one of the lowest cost lithium concentrate mines in the world and we plan to maintain that position.
AMG Critical Minerals
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$54,903
$69,242
(21%)
$227,696
$364,502
(38%)
Gross (loss) profit
(6)
19,017
N/A
21,953
46,721
(53%)
Operating (loss) profit
(7,407)
10,961
N/A
(6,872)
63,995
N/A
Adjusted EBITDA
1,618
14,001
(88%)
6,947
38,280
(82%)
AMG Critical Minerals’ revenue for the fourth quarter of 2023 decreased by 21%, to $55 million, mainly due to lower volumes largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit in the fourth quarter of 2023 was $19 million lower compared to the same period in 2022, largely due to lower volumes in silicon and antimony in the current quarter.
SG&A expenses in 2023 of $29 million were 4% higher than in 2022 related to an increase in professional fees during the fourth quarter.
The fourth quarter 2023 adjusted EBITDA decreased 88% compared to the same period in 2022, to $2 million, largely driven by the silicon metal plant as well as the slowdown in the end-use markets for the segment in the current quarter. As a result, full year 2023 adjusted EBITDA decreased to $7 million from $38 million in the prior year.
AMG Silicon operated one of four furnaces in the fourth quarter of 2023. We plan to run two of four furnaces for the remainder of 2024. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon’s operations, the financial impact of the business will be excluded from adjusted EBITDA during this period of abnormal operations. However, AMG Silicon generated $26 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$154,738
$144,697
7%
$672,660
$610,468
10%
Gross profit
20,146
19,381
4%
93,091
94,903
(2%)
Operating (loss) profit
(1,666)
1,579
N/A
11,315
20,474
(45%)
Adjusted EBITDA
13,600
9,713
40%
46,354
44,790
3%
AMG Critical Materials Technologies’ fourth quarter 2023 revenue increased by $10 million, or 7%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of chrome metal and higher sales prices of titanium alloys, partially offset by lower chrome metal pricing. Revenue for the segment in 2023 increased 10% compared to prior year.
SG&A expenses increased by 10% in 2023 compared to 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the increased order backlog and business development, respectively.
AMG Critical Materials Technologies’ adjusted EBITDA was $14 million during the fourth quarter, 40% higher than in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the fourth quarter of 2023.
AMG Engineering signed $27 million in new orders during the fourth quarter of 2023. On a full year basis, AMG signed a record high of $350 million in new orders during 2023, 24% higher than in 2022, representing a 1.27x book to bill ratio. The 2023 order intake was driven by strong orders of remelting and heat treatment furnaces. Order backlog was $295 million as of December 31, 2023.
Financial Review
Tax
AMG recorded an income tax expense of $95 million in 2023, compared to $84 million in 2022. This variance was due to negative movements in the Brazilian real in 2023 as compared to 2022 as well as non-cash deferred tax expenses related to the derecognition of certain tax assets. These tax assets were associated with interest expense carryforwards in our US business as well as loss carryforwards in our German business. These deferred tax expenses were partially offset by the lower profitability in the current quarter relative to the same period in the prior year.
AMG paid taxes of $103 million in 2023, compared to tax payments of $42 million in 2022. The higher cash payments in 2023 were largely a result of the timing lag related to Brazil’s strong performance in late 2022 through the second quarter of 2023.
Exceptional Items
AMG’s fourth quarter and full year 2023 gross profit includes exceptional items, which are not included in the calculation of adjusted EBITDA.
A summary of exceptional items included in gross profit in 2023 and 2022 are below:
Exceptional items included in gross profit
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Gross profit
$55,252
$119,981
(54%)
$389,431
$409,486
(5%)
Inventory cost adjustment
15,260
1,589
860%
26,731
1,589
1,582%
Restructuring expense
6,115
389
1,472%
9,223
582
1,485%
Asset impairment expense (reversal)
9,585
(990)
N/A
8,818
10,597
(17%)
Silicon’s partial closure
(1,854)
—
N/A
(4,502)
—
N/A
Strategic project expense
107
1,201
(91%)
511
5,540
(91%)
Gross profit excluding exceptional items
84,465
122,170
(31%)
430,212
427,794
1%
AMG had $15 million non-cash expense during the fourth quarter of 2023 mainly driven by Lithium GmbH’s inventory cost adjustment of purchased lithium hydroxide which has been excluded in the calculation of adjusted EBITDA.
In mid 2023, AMG initiated a restructuring program to improve efficiencies and reduce headcount. The largest restructuring expenses are in AMG Titanium with $4 million, and in AMG Graphite with a restructuring expense of $1 million in the fourth quarter of 2023.
As a result of the restructuring program, certain non-core assets were also impacted. Asset impairments were recorded due to the retirement of these assets in the fourth quarter of 2023 at AMG Titanium and AMG Graphite of $3 million and $7 million, respectively.
SG&A
AMG’s fourth quarter 2023 SG&A expenses were $46 million compared to $37 million in the fourth quarter of 2022, with the increase largely due to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Full year 2023 SG&A expenses were $178 million, 20% higher than in 2022, due to increased professional fees associated with strategic projects during 2023 as well as higher personnel costs attributable to increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
December 31, 2023
December 31, 2022
Change
Senior secured debt
$337,402
$348,622
(3%)
Cash & cash equivalents
345,308
346,043
—%
Senior secured net (cash) debt
(7,906)
2,579
N/A
Other debt
13,105
14,959
(12%)
Net debt excluding municipal bond
5,199
17,538
(70%)
Municipal bond debt
319,002
319,244
—%
Restricted cash
1,451
6,920
(79%)
Net debt
322,750
329,862
(2%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023.
Net Finance Costs
AMG’s fourth quarter 2023 net finance income was $2 million compared to $4 million of income in the fourth quarter of 2022. This decrease was mainly driven by lower capitalization of interest expense now that the Zanesville plant is fully operational.
Final Dividend Proposal
AMG intends to declare a dividend of €0.60 per ordinary share over the financial year 2023. The interim dividend of €0.40, paid on August 9, 2023, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.20.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 8, 2024.
Outlook
Our ongoing cost reduction and efficiency programs will reduce our headcount by approximately 200 which will essentially be offset by the ramp-up of our expansions in Germany and Brazil, as well as the growth in our LIVA and Engineering businesses.
Capital expenditures for 2024 are expected to be approximately $125 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.
AMG has no expected financing needs in 2024. AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $540 million can fully fund all of the approved capital expansion projects and all other financial obligations.
AMG’s two main lithium expansion projects are heading towards completion: our lithium concentrate expansion project from 90,000 tons to 130,000 tons in Brazil and module 1 of our lithium hydroxide refinery in Germany. We are reviewing our resource development projects and all other expansion activities in light of the present market conditions.
Regarding 2024 outlook, from the lithium concentrate and lithium carbonate market price highs in November 2022 of $6,110 per ton and $84,062 per ton, respectively, prices have each declined by 84%.
On November 8, 2023, we indicated an adjusted EBITDA for 2024 of approximately $200 million excluding any profitability from our Bitterfeld lithium hydroxide refinery and utilizing contemporary pricing. Since then, market prices for spodumene and lithium carbonate have declined 50% and 39%, respectively. Utilizing today’s price levels, lithium profitability will be $60 million lower and vanadium profitability will be $10 million lower, therefore AMG’s 2024 adjusted EBITDA will be approximately $130 million.
Our analysis of the long-term supply and demand trends in lithium gives us confidence that the present low prices are unsustainable.
Segmental Realignment
The Company has changed its organizational structure effective January 1, 2024, and will therefore report financials for the new segments starting in the first quarter of 2024. This change results in three reporting segments: AMG Lithium, AMG Vanadium, and AMG Technologies. Each of these segments have very specific trends and business models, and require very different management skill sets.
AMG’s 2023 pro forma segmental information for AMG Lithium, AMG Vanadium, and AMG Technologies is shown below:
AMG Lithium
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$130,668
$133,473
$62,346
$82,085
$408,572
Gross profit
92,013
90,006
26,769
20,569
229,357
Operating profit
83,589
79,904
16,390
7,900
187,783
Adjusted EBITDA
89,799
86,345
29,638
30,758
236,540
AMG Vanadium
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$194,280
$180,870
$174,436
$161,652
$711,238
Gross profit
26,424
17,227
17,182
16,237
77,070
Operating profit (loss)
13,103
(3,217)
3,539
13,524
26,949
Adjusted EBITDA
20,331
15,693
15,067
29,520
80,611
AMG Technologies
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$125,642
$124,976
$131,935
$123,498
$506,051
Gross profit
21,405
20,301
22,852
18,446
83,004
Operating profit (loss)
3,331
1,480
4,130
(1,921)
7,020
Adjusted EBITDA
7,981
5,415
9,080
10,864
33,340
Profit for the period to adjusted EBITDA reconciliation
Q4 ‘23
Q4 ‘22
FY ‘23
FY ‘22
Profit for the period
$1,266
$62,669
$102,288
$190,771
Income tax expense
19,958
23,827
95,002
84,097
Net finance (income) cost
(2,455)
(4,177)
20,739
30,941
Equity-settled share-based payment transactions
1,443
1,414
5,799
5,552
Restructuring expense
6,115
389
9,223
582
Pension adjustment
(1,410)
—
5,290
—
Net contract settlements
—
971
—
(45,436)
Silicon’s partial closure
(966)
—
(1,520)
—
Inventory cost adjustment
15,260
1,589
26,731
1,589
Asset impairment expense (reversal)
9,585
(990)
8,818
10,597
Strategic project expense (1)
6,777
5,885
19,179
17,070
Share of loss of associates
734
—
3,723
1,250
Others
399
142
583
238
EBIT
56,706
91,719
295,855
297,251
Depreciation and amortization
14,436
12,342
54,636
45,299
Adjusted EBITDA
71,142
104,061
350,491
342,550
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Consolidated Income Statement
For the quarter ended December 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
367,235
390,004
Cost of sales
(311,983)
(270,023)
Gross profit
55,252
119,981
Selling, general and administrative expenses
(45,582)
(36,579)
Other expenses
(313)
(1,083)
Other income
10,146
—
Net other operating income (expense)
9,833
(1,083)
Operating profit
19,503
82,319
Finance income
15,222
5,459
Finance cost
(12,767)
(1,282)
Net finance income
2,455
4,177
Share of loss of associates and joint ventures
(734)
—
Profit before income tax
21,224
86,496
Income tax expense
(19,958)
(23,827)
Profit for the period
1,266
62,669
Profit attributable to:
Shareholders of the Company
2,173
60,697
Non-controlling interests
(907)
1,972
Profit for the period
1,266
62,669
Basic earnings per share
Basic earnings per share
0.07
1.90
Diluted earnings per share
0.07
1.85
AMG Critical Materials N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Continuing operations
Revenue
1,625,861
1,642,774
Cost of sales
(1,236,430)
(1,233,288)
Gross profit
389,431
409,486
Selling, general and administrative expenses
(178,162)
(147,963)
Other expenses
(313)
(14,544)
Other income
10,796
60,080
Net other operating income
10,483
45,536
Operating profit
221,752
307,059
Finance income
28,989
9,061
Finance cost
(49,728)
(40,002)
Net finance cost
(20,739)
(30,941)
Share of loss of associates and joint ventures
(3,723)
(1,250)
Profit before income tax
197,290
274,868
Income tax expense
(95,002)
(84,097)
Profit for the period
102,288
190,771
Profit attributable to:
Shareholders of the Company
101,320
187,589
Non-controlling interests
968
3,182
Profit for the period
102,288
190,771
Earnings per share
Basic earnings per share
3.15
5.87
Diluted earnings per share
3.12
5.73
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
In thousands of US dollars
December 31, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
921,178
797,611
Goodwill and other intangible assets
40,313
41,404
Derivative financial instruments
22,847
33,042
Equity-accounted investees
18,266
—
Other investments
38,160
29,324
Deferred tax assets
26,882
37,181
Restricted cash
387
5,875
Other assets
12,060
8,612
Total non-current assets
1,080,093
953,049
Inventories
260,945
277,311
Derivative financial instruments
3,397
3,516
Trade and other receivables
164,027
162,548
Other assets
100,128
121,834
Current tax assets
7,845
7,289
Restricted cash
1,064
1,045
Cash and cash equivalents
345,308
346,043
Total current assets
882,714
919,586
Total assets
1,962,807
1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
December 31, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,593)
(14,685)
Other reserves
(52,269)
(44,869)
Retained earnings (deficit)
70,077
(4,461)
Equity attributable to shareholders of the Company
561,783
490,553
Non-controlling interests
44,220
27,296
Total equity
606,003
517,849
Liabilities
Loans and borrowings
656,265
661,270
Lease liabilities
46,629
44,224
Employee benefits
133,333
117,160
Provisions
17,951
12,361
Deferred revenue
17,836
20,000
Other liabilities
4,784
15,009
Derivative financial instruments
27
284
Deferred tax liabilities
6,664
27,269
Total non-current liabilities
883,489
897,577
Loans and borrowings
5,566
15,164
Lease liabilities
5,725
4,710
Short-term bank debt
7,678
6,391
Deferred revenue
14,083
28,277
Other liabilities
77,052
69,917
Trade and other payables
259,339
240,101
Derivative financial instruments
2,828
7,746
Advance payments from customers
60,561
51,054
Current tax liability
24,279
23,548
Provisions
16,204
10,301
Total current liabilities
473,315
457,209
Total liabilities
1,356,804
1,354,786
Total equity and liabilities
1,962,807
1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Cash from operating activities
Profit for the period
102,288
190,771
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
95,002
84,097
Depreciation and amortization
54,636
45,299
Asset impairment expense
8,818
10,597
Net finance cost
20,739
30,941
Share of loss of associates and joint ventures
3,723
1,250
Loss (gain) on sale or disposal of property, plant and equipment
145
(592)
Equity-settled share-based payment transactions
5,799
5,552
Movement in provisions, pensions, and government grants
(2,137)
(11,982)
Working capital and deferred revenue adjustments
58,187
(123,281)
Cash generated from operating activities
347,200
232,652
Finance costs paid, net
(21,028)
(23,289)
Income tax paid
(103,172)
(41,796)
Net cash from operating activities
223,000
167,567
Cash used in investing activities
Proceeds from sale of property, plant and equipment
39
2,538
Acquisition of property, plant and equipment and intangibles
(153,377)
(174,516)
Investments in associates and joint ventures
(21,989)
(1,250)
Use of restricted cash
5,469
86,514
Interest received on restricted cash
30
250
Capitalized borrowing cost paid
(15,519)
(16,652)
Other
3
12
Net cash used in investing activities
(185,344)
(103,104)
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
1,395
82
Repayment of borrowings
(15,995)
(33,863)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(28,212)
(19,885)
Payment of lease liabilities
(5,764)
(5,101)
Advanced contributions
—
11,000
Contributions by non-controlling interests
14,000
—
Net cash used in financing activities
(41,536)
(49,290)
Net (decrease) increase in cash and cash equivalents
(3,880)
15,173
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
3,145
(7,007)
Cash and cash equivalents at December 31
345,308
346,043
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG’s Lithium segment spans the lithium value chain, reducing the CO2 footprint of both suppliers and customers. AMG’s Vanadium segment is the world’s market leader in recycling vanadium from oil refining residues, spanning the Company’s vanadium, titanium, and chrome businesses. AMG’s Technologies segment is the established world market leader in advanced metallurgy and provides equipment engineering to the aerospace engine sector globally. It serves as the engineering home for the Company’s fast-growing LIVA batteries, and spans AMG’s mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 8 November 2023(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported third quarter 2023 revenue of $369 million, a 13% decrease versus the third quarter of 2022. Third quarter 2023 EBITDA of $54 million decreased 48% compared to the third quarter of 2022.
Cash from operating activities was $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
In 000’s US dollars
Q3 ‘23
Q3 ‘22
Change
YTD Sept ‘23
YTD Sept ‘22
Change
Revenue
$368,717
$424,813
(13%)
$1,258,626
$1,252,770
—%
EBITDA (1)
53,785
102,603
(48%)
279,349
238,489
17%
Cash from operating activities
24,926
74,747
(67%)
178,296
110,598
61%
Return on Capital Employed
28.4%
29.5%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “The 48% decrease in EBITDA compared to the third quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium have decreased over 50% and 29%, respectively, versus the average pricing in the third quarter of 2022. On a year-to-date basis, however, EBITDA has increased 17% compared to the first nine months of 2022.
We ended the third quarter in a $320 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity during the quarter. As of September 30, 2023, the Company had $347 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $542 million of total liquidity as of September 30, 2023. In today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $81 million in new orders during the third quarter of 2023, 51% higher year-to-date in 2023 than in the same period in 2022, driven by strong orders of remelting and heat treatment furnaces, representing a 1.02x book to bill ratio. AMG’s order backlog was $341 million as of September 30, 2023, the highest in AMG’s history for the second straight quarter. This is largely driven by the aerospace market, which is experiencing strong growth. Our third quarter 2023 order intake remains at a very high level, reaching $323 million year-to-date.”
Strategic Highlights
The Supervisory Board has authorized the implementation of a new corporate structure, which will be operational January 1, 2024. The present segmental reporting structure will be replaced by three corporate entities: AMG Lithium BV, AMG Vanadium BV, and AMG Technologies (AG/GmbH). Each entity will have its own leadership team and operating management.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “The three new 100% owned subsidiaries AMG Lithium, AMG Vanadium, and AMG Technologies, have very specific trends and business models, and require very different management skill sets. They will each be managed by newly installed Management Boards, which will exercise their control through respective Supervisory Boards that will reflect corporate governance principles that currently apply to AMG Critical Materials NV.
This updated structure will enable AMG to realize strategic, operational, and risk management synergies that will improve decision making, as well as strengthen the resiliency of the organization. This new structure will decrease the potential for overreliance on individual executives, improve succession planning, and improve collaboration throughout the organization. Additionally, the new structure will create strategic flexibility for various forms of equity diversification.”
Lithium
In Brazil, the lithium concentrate plant shutdown to facilitate the expansion from 90,000 tons to 130,000 tons will take place in the first quarter of 2024 due to delivery delays of electronic components for processing automation. This will negatively impact second quarter sales volumes. We expect to produce at full run rate capacity, which is 130,000 tons per year, starting in the third quarter of 2024.
AMG Brazil’s project with Grupo Lagoa will begin basic engineering in December 2023. From present data, we conclude that the plant will confirm the main assumptions for the construction of a 150,000-ton lithium concentrate plant at the site.
AMG’s lithium hydroxide refinery’s first 20,000-ton module in Bitterfeld, Germany, is in the initial phases of commissioning and the ramp-up and the qualification process is planned for the second and third quarters of 2024. We expect to produce approximately 7,000 tons of qualified battery-grade lithium hydroxide in 2024 which is not included in our EBITDA guidance for 2024. We expect to produce and sell a full 20,000 tons in 2025.
Vanadium
The spent catalyst roasting facility in Zanesville, Ohio operated at full capacity for the third quarter and outperformed our roasting facility in Cambridge, Ohio. The Zanesville melt shop has operated at full capacity utilization and the Vanadium team is focused on increasing operational availability, optimizing cycle time and increasing yield.
AMG’s innovative lithium vanadium battery (“LIVA”) projects are integral for industrial power management applications and accelerate the industrial energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are under construction, and 13 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 379 MWh.
The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. Production is expected to start in the first quarter of 2024.
Applying a newly developed process technology, AMG Titanium in Nuremberg, Germany has started to process spent roasted catalyst to V2O5.
Shell & AMG Recycling’s (“SARBV”) project development of a closed loop circular recycling facility in the Middle East is progressing. Phase I of the “Supercenter” project, a hydrometallurgical facility to process vanadium-containing gasification ash, is under a long-term contract with Aramco. The gasification ash will be processed into vanadium oxide and then to vanadium electrolytes for use in batteries in the Kingdom of Saudi Arabia. Phase I is expected to reach FEL3 status by the end of the year. The “Supercenter” concept also includes spent catalyst recycling projects, fresh catalyst production, and the manufacturing of vanadium batteries. The Phase I facility will also produce 6,000 m³ of electrolyte, which will support 100 MWh of vanadium redox flow battery capacity annually. In addition, a LIVA Hybrid Energy Storage System and a Fresh Catalyst R&D facility will be part of Phase 1.
Financial Highlights
Cash from operating activities was $25 million in the third quarter of 2023, and $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
AMG’s liquidity as of September 30, 2023 was $542 million, with $347 million of unrestricted cash and $195 million of revolving credit availability.
Annualized return on capital employed was 28.4% for the first nine months of 2023, compared to 29.5% for the same period in 2022.
AMG Engineering’s order backlog of $341 million as of September 30, 2023, the highest in AMG’s history, was driven primarily by the aerospace industry.
Key Figures
In 000’s US dollars
Q3 ‘23
Q3 ‘22
Change
YTD Sept ‘23
YTD Sept ‘22
Change
Revenue
$368,717
$424,813
(13%)
$1,258,626
$1,252,770
—%
Gross profit
66,803
112,071
(40%)
334,179
289,505
15%
Gross margin
18.1%
26.4%
26.6%
23.1%
Operating profit
24,059
121,680
(80%)
202,249
224,740
(10%)
Operating margin
6.5%
28.6%
16.1%
17.9%
Net income attributable to shareholders
163
68,146
N/A
99,147
126,892
(22%)
EPS – Fully diluted
0.00
2.09
N/A
3.04
3.91
(22%)
EBIT (1)
40,225
91,536
(56%)
239,149
205,532
16%
EBITDA (2)
53,785
102,603
(48%)
279,349
238,489
17%
EBITDA margin
14.6%
24.2%
22.2%
19.0%
Cash from operating activities
24,926
74,747
(67%)
178,296
110,598
61%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q3 ‘23
Q3 ‘22
Change
Revenue
$140,344
$188,318
(25%)
Gross profit
34,333
86,454
(60%)
Operating profit
18,712
74,888
(75%)
EBITDA
39,155
83,674
(53%)
AMG Clean Energy Materials’ revenue decreased 25% compared to the third quarter of 2022, to $140 million, driven mainly by decreased prices in both lithium and vanadium as well as lower volumes in lithium concentrate, partially offset by increased volumes in vanadium. Ferrovanadium production increased 48% versus the third quarter of 2022.
Gross profit for the quarter decreased 60% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver is the lithium price decline. Also, vanadium gross profit was lower due to fixed price inventory being processed from global sources. All other existing contracts are under indexed prices. We are working towards long-term contracts similar to our Cambridge model.
SG&A expenses in the third quarter of 2023 were higher than the same period in 2022 at $15 million, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs.
The third quarter 2023 EBITDA decreased 53%, to $39 million, from $84 million in the third quarter of 2022, due to the decline in metal prices as noted above.
During the third quarter of 2023, a total of 16,012 dry metric tons (“dmt”) of lithium concentrates was sold. The third quarter experienced lower sales volumes due to shipping schedule variances noted in the second quarter. The average realized sales price was $2,395/dmt CIF China for the quarter. The average cost per ton for the quarter was $529/dmt CIF China. The cost per ton is lower than the second quarter due to higher sales volumes of tantalum concentrate in the current quarter.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. It is important to note that AMG is one of the lowest cost mines in the world and we plan to maintain that position.
AMG Critical Minerals
Q3 ‘23
Q3 ‘22
Change
Revenue
$52,593
$84,935
(38%)
Gross profit
6,887
674
922%
Operating (loss) profit
(269)
40,301
N/A
EBITDA
1,247
7,327
(83%)
AMG Critical Minerals’ revenue for the third quarter of 2023 decreased by 38%, to $53 million, mainly due to lower volumes across the segment largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit of $7 million in the third quarter of 2023 was $6 million higher compared to the same period last year, largely due to the significant increases in gas and electricity costs experienced in the third quarter of 2022.
SG&A expenses in the third quarter of 2023 of $7 million were in line with the same period in 2022.
The third quarter 2023 EBITDA decreased 83% compared to the same period in 2022, to $1 million, due to silicon shutdown as well as the slowdown in the end-use markets for the segment in the current quarter.
AMG Silicon operated one of four furnaces throughout the third quarter and plans to operate one furnace for the remainder of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon’s operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $10 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q3 ‘23
Q3 ‘22
Change
Revenue
$175,780
$151,560
16%
Gross profit
25,583
24,943
3%
Operating profit
5,616
6,491
(13%)
EBITDA
13,383
11,602
15%
AMG Critical Materials Technologies’ third quarter 2023 revenue increased by $24 million, or 16%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of titanium alloys and chrome metal, partially offset by lower chrome metal pricing.
SG&A expenses increased by 10% in the third quarter of 2023 compared to the same period in 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the record order backlog and business development, respectively.
AMG Critical Materials Technologies’ EBITDA was $13 million during the quarter compared to $12 million in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the third quarter of 2023.
AMG Engineering signed $81 million in new orders during the third quarter of 2023, driven by strong orders of remelting and heat treatment furnaces, representing a 1.02x book to bill ratio. Order backlog was $341 million as of September 30, 2023, the highest in AMG’s history.
AMG Engineering has been selected by PCC’s TIMET to supply the vacuum melting and re-melting furnaces for their new, state-of-the-art Titanium melt facility in Ravenswood, West Virginia. AMG’s scope includes several vacuum arc re-melting, electron beam welding, and electron beam melting furnaces, signifying one of the largest orders in all of AMG Engineering’s history.
Financial Review
Tax
AMG recorded an income tax expense of $13 million in the third quarter of 2023, compared to $39 million in the same period in 2022. This variance was mainly driven by lower profitability in the current quarter.
AMG paid taxes of $33 million in the third quarter of 2023, compared to tax payments of $10 million in the third quarter of 2022, primarily due to the timing lag in tax payments relative to tax expense recognition.
Exceptional Items
AMG’s third quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the third quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q3 ‘23
Q3 ‘22
Change
Gross profit
$66,803
$112,071
(40%)
Inventory cost adjustment
1,388
—
N/A
Restructuring expense
2,745
11
N/A
Asset impairment expense
—
11,587
N/A
Strategic project expense
4,924
1,241
297%
Gross profit excluding exceptional items
75,860
124,910
(39%)
AMG Vanadium had a $1.3 million non-cash expense during the third quarter of 2023. This is a result of inventory cost adjustments associated with declining prices and an increased inventory position of spent catalyst as we diversify our sourcing strategy which has been adjusted in EBITDA.
SG&A
AMG’s third quarter 2023 SG&A expenses were $43 million compared to $37 million in the third quarter of 2022, with the increase largely attributable to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
September 30, 2023
December 31, 2022
Change
Senior secured debt
$337,952
$348,622
(3%)
Cash & cash equivalents
347,293
346,043
—%
Senior secured net (cash) debt
(9,341)
2,579
N/A
Other debt
12,170
14,959
(19%)
Net debt excluding municipal bond
2,829
17,538
(84%)
Municipal bond debt
319,064
319,244
—%
Restricted cash
1,428
6,920
(79%)
Net debt
320,465
329,862
(3%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the third quarter. As of September 30, 2023, the Company had $347 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $542 million of total liquidity as of September 30, 2023.
Net Finance Costs
AMG’s third quarter 2023 net finance cost was $9 million compared to $14 million in the third quarter of 2022. This decrease was mainly driven by foreign exchange gains of $3 million during the quarter primarily due to non-cash intergroup balances and higher interest income earned on an increased cash and cash equivalents balance in the third quarter 2023 compared to the third quarter of 2022. Additionally, in today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities. AMG has an average interest rate charge across its two main debt instruments of 5%.
Outlook
Since the end of July when we issued the previous 2023 EBITDA guidance of between $350 million and $380 million, market prices for spodumene and lithium carbonate have decreased by 50% and 43%, respectively. Given these price decreases, AMG’s new EBITDA guidance for the full year 2023 is approximately $320 million.
Considering the ramp-up of the strategic projects explained above, as well as the volatility of our key material prices, specifically lithium, it is challenging to provide firm guidance for 2024. The recent fall in lithium prices has surprised every industry participant. Establishing the cause of the fall in prices and projecting future movements involves analyzing both the Chinese lithium industry as well as broader macroeconomic factors in China.
Given the difficulty of this analysis, and despite certain signs that the lithium supply and demand picture remains strong, there is high uncertainty with regard to near-term pricing dynamics. Therefore, utilizing today’s depressed price levels, AMG’s EBITDA will be approximately $200 million in 2024 with a stronger performance in the second half of the year.
Profit for the period to adjusted EBITDA reconciliation
Q3 ‘23
Q3 ‘22
Profit for the period
$1,002
$68,339
Income tax expense
12,565
38,603
Net finance cost
9,295
13,988
Equity-settled share-based payment transactions
1,392
1,386
Restructuring expense
2,745
11
Net contract settlements
—
(46,407)
Silicon’s partial closure
(739)
—
Inventory cost adjustment
1,388
—
Asset impairment expense
—
11,587
Strategic project expense (1)
11,196
3,282
Share of loss of associates
1,197
750
Others
184
(3)
EBIT
40,225
91,536
Depreciation and amortization
13,560
11,067
EBITDA
53,785
102,603
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
368,717
424,813
Cost of sales
(301,914)
(312,742)
Gross profit
66,803
112,071
Selling, general and administrative expenses
(42,800)
(36,888)
Other income, net
56
46,497
Net other operating income
56
46,497
Operating profit
24,059
121,680
Finance income
5,676
1,222
Finance cost
(14,971)
(15,210)
Net finance cost
(9,295)
(13,988)
Share of loss of associates and joint ventures
(1,197)
(750)
Profit before income tax
13,567
106,942
Income tax expense
(12,565)
(38,603)
Profit for the period
1,002
68,339
Profit attributable to:
Shareholders of the Company
163
68,146
Non-controlling interests
839
193
Profit for the period
1,002
68,339
Basic earnings per share
Basic earnings per share
0.01
2.13
Diluted earnings per share
0.00
2.09
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
1,258,626
1,252,770
Cost of sales
(924,447)
(963,265)
Gross profit
334,179
289,505
Selling, general and administrative expenses
(132,580)
(111,384)
Other income, net
650
46,619
Net other operating income
650
46,619
Operating profit
202,249
224,740
Finance income
14,843
3,602
Finance cost
(38,037)
(38,720)
Net finance cost
(23,194)
(35,118)
Share of loss of associates and joint ventures
(2,989)
(1,250)
Profit before income tax
176,066
188,372
Income tax expense
(75,044)
(60,270)
Profit for the period
101,022
128,102
Profit attributable to:
Shareholders of the Company
99,147
126,892
Non-controlling interests
1,875
1,210
Profit for the period
101,022
128,102
Earnings per share
Basic earnings per share
3.08
3.97
Diluted earnings per share
3.04
3.91
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
September 30, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
878,166
797,611
Goodwill and other intangible assets
40,113
41,404
Derivative financial instruments
32,532
33,042
Equity-accounted investees
16,950
—
Other investments
31,095
29,324
Deferred tax assets
38,524
37,181
Restricted cash
370
5,875
Other assets
10,989
8,612
Total non-current assets
1,048,739
953,049
Inventories
262,763
277,311
Derivative financial instruments
2,065
3,516
Trade and other receivables
173,506
162,548
Other assets
107,668
121,834
Current tax assets
6,792
7,289
Restricted cash
1,058
1,045
Cash and cash equivalents
347,293
346,043
Total current assets
901,145
919,586
Total assets
1,949,884
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
September 30, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(45,148)
(44,869)
Retained earnings (deficit)
77,610
(4,461)
Equity attributable to shareholders of the Company
576,300
490,553
Non-controlling interests
35,213
27,296
Total equity
611,513
517,849
Liabilities
Loans and borrowings
657,544
661,270
Lease liabilities
43,548
44,224
Employee benefits
124,819
117,160
Provisions
12,847
12,361
Deferred revenue
17,246
20,000
Other liabilities
3,801
15,009
Derivative financial instruments
224
284
Deferred tax liabilities
15,974
27,269
Total non-current liabilities
876,003
897,577
Loans and borrowings
5,497
15,164
Lease liabilities
5,149
4,710
Short-term bank debt
6,145
6,391
Deferred revenue
23,294
28,277
Other liabilities
73,064
69,917
Trade and other payables
249,598
240,101
Derivative financial instruments
3,986
7,746
Advance payments from customers
60,181
51,054
Current tax liability
20,569
23,548
Provisions
14,885
10,301
Total current liabilities
462,368
457,209
Total liabilities
1,338,371
1,354,786
Total equity and liabilities
1,949,884
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from operating activities
Profit for the period
101,022
128,102
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
75,044
60,270
Depreciation and amortization
40,200
32,957
Asset impairment (reversal) expense
(767)
11,587
Net finance cost
23,194
35,118
Share of loss of associates and joint ventures
2,989
1,250
Loss on sale or disposal of property, plant and equipment
33
12
Equity-settled share-based payment transactions
4,356
4,138
Movement in provisions, pensions, and government grants
8,470
(7,532)
Working capital and deferred revenue adjustments
31,609
(113,601)
Cash generated from operating activities
286,150
152,301
Finance costs paid, net
(19,163)
(19,014)
Income tax paid
(88,691)
(22,689)
Net cash from operating activities
178,296
110,598
Cash used in investing activities
Proceeds from sale of property, plant and equipment
34
151
Acquisition of property, plant and equipment and intangibles
(109,540)
(134,244)
Investments in associates and joint ventures
(19,939)
(1,250)
Use of restricted cash
5,492
76,365
Interest received on restricted cash
30
179
Capitalized borrowing cost paid
(11,583)
(15,307)
Other
4
12
Net cash used in investing activities
(135,502)
(74,094)
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
57
83
Repayment of borrowings
(14,355)
(23,948)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(28,212)
(19,885)
Payment of lease liabilities
(4,098)
(3,738)
Contributions by non-controlling interests
14,000
—
Net cash used in financing activities
(39,568)
(49,011)
Net increase (decrease) in cash and cash equivalents
3,226
(12,507)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
(1,976)
(18,954)
Cash and cash equivalents at September 30
347,293
306,416
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 26July 2023(Regulated Information)— AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) declares an interim dividend of €0.40 per ordinary share, from an interim dividend of €0.30 per ordinary share in the prior year.
The interim dividend of €0.40 per ordinary share, in respect of the period from January 1, 2023 to June 30, 2023, is payable on August 9, 2023 to shareholders of record as of August 1, 2023. The ex-dividend date will be July 31, 2023. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 26 July 2023(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported second quarter 2023 revenue of $439 million, a 4% increase versus the second quarter of 2022. Second quarter 2023 EBITDA of $107 million was 32% higher than the second quarter of 2022.
In 000’s US dollars
Q2 ‘23
Q2 ‘22
Change
Revenue
$439,319
$424,094
4%
EBITDA (1)
107,453
81,126
32%
Cash from operating activities
59,975
39,505
52%
Net income attributable to shareholders
42,763
29,631
44%
EPS – Fully diluted
1.28
0.91
Return on Capital Employed
35.7%
25.5%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “This is the fourth straight quarter in which AMG has exceeded $100 million of EBITDA. The $26 million, or 32%, EBITDA increase over the second quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium’s Brazilian operation with an EBITDA contribution of $89 million.
AMG’s liquidity as of June 30, 2023 was $586 million, with $391 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay an interim 2023 dividend of €0.40 per ordinary share on or around August 9, 2023, to shareholders of record on August 1, 2023.
AMG Engineering signed $167 million in new orders during the second quarter of 2023, driven by strong orders of remelting and induction furnaces, representing a 2.48x book to bill ratio. AMG’s order backlog of $337 million as of June 30, 2023, which is the highest in AMG’s history. This is largely driven by the US aerospace market. Our second quarter 2023 US order intake has essentially doubled from our second quarter 2022 US order intake.
We continue to drive our lithium strategy forward and are pleased to announce that we have signed a mandate letter with KfW IPEX-Bank GmbH and with Citi to structure and arrange the financing for the construction of our proposed technical-grade lithium chemical plant in Brazil. The financing structure is expected to cover all the funding requirements and be supported by Euler Hermes (the German Export Credit Agency representing its government) under its Untied Loan Guarantee program for projects which deliver critical raw materials into Germany. This proposed financing is a cornerstone of our lithium strategy to be the premier supplier of battery-grade lithium hydroxide in Europe, and another important step towards an independent and sustainable lithium supply chain for Europe. In addition, this project conforms with AMG Brazil’s commitment to upgrade its operations to produce a higher value product, while significantly contributing to reducing CO2 emissions by lowering total volumes shipped.”
Strategic Highlights
Lithium
The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
AMG signed a mandate letter with KfW IPEX-Bank GmbH and Citi to structure and arrange the financing for the construction of our proposed technical-grade lithium chemical plant in Brazil. The financing structure is expected to cover all the funding requirements and be supported by Euler Hermes (the German Export Credit Agency representing its government) under its Untied Loan Guarantee program for projects which deliver critical raw materials into Germany. This proposed financing is a cornerstone of our strategy to be the premier supplier of battery-grade lithium hydroxide in Europe.
AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is expected to start commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
AMG Lithium signed a non-binding memorandum of understanding (“MOU”) in May 2023 with Fortum Battery Recycling Oy (“Fortum”), a Nordic clean energy provider. Fortum’s new commercial scale hydrometallurgical plant is able to efficiently recover valuable metals from old electric vehicle lithium-ion batteries. The lithium product recovered by Fortum will be delivered to AMG Lithium for further processing.
Vanadium
The new vanadium spent catalyst recycling facility in Zanesville, Ohio, is currently running at full capacity and targeting full run rate production for the second half of 2023.
AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are under various stages of construction.
In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
Shell & AMG Recycling B.V. (“SARBV”) project development in the Middle East are progressing. The Supercenter project in the Kingdom of Saudi Arabia is completing the FEL3 feasibility study later this year.
Financial Highlights
Revenue increased by 4% to $439 million in the second quarter of 2023 from $424 million in the second quarter of 2022.
EBITDA was $107 million in the second quarter of 2023, up 32% versus the second quarter 2022 EBITDA of $81 million.
Annualized return on capital employed was 35.7% for the first six months of 2023, compared to 25.5% for the same period in 2022.
Cash from operations was $60 million for the second quarter of 2023, compared to $40 million in the second quarter of 2022, driven by the high profitability of AMG Lithium in Brazil.
Net income attributable to shareholders for the second quarter of 2023 was $43 million, yielding $1.28 diluted earnings per share compared to $0.91 in the same period in 2022.
AMG’s liquidity as of June 30, 2023 was $586 million, with $391 million of unrestricted cash and $195 million of revolving credit availability.
AMG declares an interim dividend of €0.40 per ordinary share, to be paid in the third quarter of 2023.
Key Figures
In 000’s US dollars
Q2 ‘23
Q2 ‘22
Change
Revenue
$439,319
$424,094
4%
Gross profit
127,534
102,240
25%
Gross margin
29.0%
24.1%
Operating profit
78,167
65,246
20%
Operating margin
17.8%
15.4%
Net income attributable to shareholders
42,763
29,631
44%
EPS – Fully diluted
1.28
0.91
41%
EBIT (1)
93,780
69,763
34%
EBITDA (2)
107,453
81,126
32%
EBITDA margin
24.5%
19.1%
Cash from operating activities
59,975
39,505
52%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q2 ‘23
Q2 ‘22
Change
Revenue
$208,487
$159,762
30%
Gross profit
95,985
60,821
58%
Operating profit
74,378
49,704
50%
EBITDA
95,974
58,232
65%
AMG Clean Energy Materials’ revenue increased 30% compared to the second quarter of 2022, to $208 million, driven mainly by increased sales volumes and increased prices in lithium concentrates.
Gross profit for the quarter increased 58% compared to the same period in the prior year, primarily due to the higher sales volumes across the segment as well as higher lithium pricing.
SG&A expenses in the second quarter of 2023 were higher than the same period in 2022 at $21 million, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs.
The second quarter 2023 EBITDA increased 65%, to $96 million, from $58 million in the second quarter of 2022, due to the improved gross profit as noted above.
AMG Vanadium’s production was negatively impacted by a defective fan provided by a supplier at our new Zanesville facility. AMG has commenced an arbitration claim seeking compensatory damages, which include costs incurred and lost profitability.
During the second quarter of 2023, a total of 28,870 dry metric tons (“dmt”) of lithium concentrates was sold. The second quarter experienced increased sales volumes due to shipping schedule variances which will negatively impact the third quarter. The average realized sales price was $3,633/dmt CIF China for the quarter. The average cost per ton for the quarter was $547/dmt CIF China. The cost per ton is higher than the first quarter due to lower volumes and pricing in tantalum concentrate in the quarter. The additional lithium concentrate shipments and slightly higher costs in tantalum concentrate resulted in quarterly EBITDA for AMG Brazil of $89 million.
AMG Critical Minerals
Q2 ‘23
Q2 ‘22
Change
Revenue
$57,271
$103,416
(45%)
Gross profit
7,806
14,028
(44%)
Operating profit
169
7,086
(98%)
EBITDA
1,532
9,069
(83%)
AMG Critical Minerals’ revenue for the second quarter of 2023 decreased by 45%, to $57 million, mainly due to lower volumes across the segment largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.
Gross profit of $8 million in the second quarter was 44% lower compared to the second quarter of 2022, largely due to the lower volumes in the current quarter.
SG&A expenses in the second quarter of 2023 increased by 8%, to $8 million, compared to the same period in 2022. This was largely driven by higher professional fees in the current quarter.
The second quarter 2023 EBITDA decreased 83% compared to the same period in 2022, to $2 million, due to the lower gross profit as noted above.
AMG Silicon operated one of four furnaces throughout the second quarter and plans to operate one furnace for the remainder of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $9 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q2 ‘23
Q2 ‘22
Change
Revenue
$173,561
$160,916
8%
Gross profit
23,743
27,391
(13%)
Operating profit
3,620
8,456
(57%)
EBITDA
9,947
13,825
(28%)
AMG Critical Materials Technologies’ second quarter 2023 revenue increased by $13 million, or 8%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of titanium alloys and chrome metal, partially offset by lower chrome metal pricing.
SG&A expenses increased by 8% in the second quarter of 2023 compared to the same period in 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the record order backlog and business development, respectively.
AMG Critical Materials Technologies’ EBITDA was $10 million during the quarter compared to $14 million in the same period of 2022. The decrease was primarily due to lower chrome prices in the second quarter of 2023 partially offset by higher profitability in Engineering and Titanium.
AMG Engineering signed $167 million in new orders during the second quarter of 2023, driven by strong orders of remelting and induction furnaces, representing a 2.48x book to bill ratio. Order backlog was $337 million as of June 30, 2023, the highest in AMG’s history.
Financial Review
Tax
AMG recorded an income tax expense of $27 million in the second quarter of 2023, compared to $23 million in the same period in 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation, offset by US tax expense and movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax benefit in the second quarter of 2023, compared to a $4 million tax expense in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $35 million in the second quarter of 2023, compared to tax payments of $9 million in the second quarter of 2022. The higher cash taxes in the current quarter were a result of tax payments tracking the consistent upward trend in Brazil results.
Exceptional Items
AMG’s second quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the second quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q2 ‘23
Q2 ‘22
Change
Gross profit
$127,534
$102,240
25%
Inventory cost adjustment
3,678
—
N/A
Restructuring expense
626
41
1427%
Silicon’s partial closure
(1,011)
—
N/A
Strategic project (reversal) expense
(55)
833
N/A
Gross profit excluding exceptional items
130,772
103,114
27%
AMG Vanadium had a $3.7 million non-cash expense during the second quarter of 2023. This is a result of inventory cost adjustments associated with declining prices and inventory specification issues due to the acquisition and testing of global refinery waste which has been adjusted in EBITDA.
SG&A
AMG’s second quarter 2023 SG&A expenses were $49 million compared to $37 million in the second quarter of 2022, with the increase largely attributable to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses. It was also driven by a one-time pension expense of $6.7 million due to the restructuring of executive employee benefit plans.
Liquidity
June 30, 2023
December 31, 2022
Change
Senior secured debt
$338,505
$348,622
(3%)
Cash & cash equivalents
391,251
346,043
13%
Senior secured net (cash) debt
(52,746)
2,579
N/A
Other debt
14,987
14,959
—%
Net (cash) debt excluding municipal bond
(37,759)
17,538
N/A
Municipal bond debt
319,124
319,244
—%
Restricted cash
1,440
6,920
(79%)
Net debt
279,925
329,862
(15%)
AMG ended the second quarter in a $280 million net debt position. This decrease versus year-end 2022 was mainly due to higher cash balances from strong operating cash flow.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the second quarter. As of June 30, 2023, the Company had $391 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $586 million of total liquidity as of June 30, 2023.
Net Finance Costs
AMG’s second quarter 2023 net finance cost was $7 million compared to $12 million in the second quarter of 2022. This variance was mainly driven by higher interest income earned, due to the overall increase in global interest rates, and an increase in cash and cash equivalents balances as well as foreign exchange losses in the prior period. Additionally, in today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities. AMG has an average interest rate charge across its two main debt instruments of 5%.
Outlook
Given the global economic uncertainty and the slowdown in China, current spot prices across AMG’s critical materials portfolio are significantly below the prices we experienced when we announced our initial guidance for 2023 in November 2022. The price of lithium carbonate in November 2022, the date of our $400 million EBITDA guidance, has now almost halved and our other relevant portfolio prices are down an average of 25%.
Therefore, we have changed our full year EBITDA guidance for 2023 from “exceeding $400 million in EBITDA” to “a range between $350 million to $380 million in EBITDA.” An EBITDA in this range represents the highest EBITDA in the history of AMG.
As previously disclosed, third quarter profitability will be negatively impacted by lower volumes associated with the spodumene expansion project. Volumes will recover in the fourth quarter as the project begins to ramp up.
Regarding our long-term guidance, we are extremely pleased with the advancement of our strategic projects. We are moving forward with our lithium concentrate expansion in Brazil. We’ve signed a mandate letter to fund the chemical upgrader in Brazil, and our lithium hydroxide refinery in Bitterfeld, Germany, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
These transformational projects in lithium, our newly complete ferrovanadium spent catalyst recycling facility in Ohio, and the continued ramp-up in our AMG Critical Materials Technologies segment will drive increased volumes across our Clean Energy Materials segment and confirm our confidence in our long-term guidance. Our long-term guidance therefore remains unchanged at an EBITDA level of $650 million, or more, in 5 years, or earlier.
Profit for the period to adjusted EBITDA reconciliation
Q2 ‘23
Q2 ‘22
Profit for the period
$43,573
$29,879
Income tax expense
26,552
23,156
Net finance cost
7,282
12,211
Equity-settled share-based payment transactions
1,495
1,372
Restructuring expense
626
41
Pension adjustment
6,700
—
Silicon’s partial closure
(362)
—
Inventory cost adjustment
3,678
—
Strategic project expense (1)
3,476
3,107
Share of loss of associates
760
—
Others
—
(3)
EBIT
93,780
69,763
Depreciation and amortization
13,673
11,363
EBITDA
107,453
81,126
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
439,319
424,094
Cost of sales
(311,785)
(321,854)
Gross profit
127,534
102,240
Selling, general and administrative expenses
(49,420)
(37,034)
Other income, net
53
40
Net other operating income
53
40
Operating profit
78,167
65,246
Finance income
5,550
2,081
Finance cost
(12,832)
(14,292)
Net finance cost
(7,282)
(12,211)
Share of loss of associates and joint ventures
(760)
—
Profit before income tax
70,125
53,035
Income tax expense
(26,552)
(23,156)
Profit for the period
43,573
29,879
Profit attributable to:
Shareholders of the Company
42,763
29,631
Non-controlling interests
810
248
Profit for the period
43,573
29,879
Earnings per share
Basic earnings per share
1.33
0.93
Diluted earnings per share
1.28
0.91
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
889,909
827,957
Cost of sales
(622,533)
(650,523)
Gross profit
267,376
177,434
Selling, general and administrative expenses
(89,780)
(74,496)
Other income, net
594
122
Net other operating income
594
122
Operating profit
178,190
103,060
Finance income
11,026
2,380
Finance cost
(24,925)
(23,510)
Net finance cost
(13,899)
(21,130)
Share of loss of associates and joint ventures
(1,792)
(500)
Profit before income tax
162,499
81,430
Income tax expense
(62,479)
(21,667)
Profit for the period
100,020
59,763
Profit attributable to:
Shareholders of the Company
98,984
58,746
Non-controlling interests
1,036
1,017
Profit for the period
100,020
59,763
Earnings per share
Basic earnings per share
3.08
1.84
Diluted earnings per share
3.01
1.81
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
June 30, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
851,805
797,611
Goodwill and other intangible assets
41,235
41,404
Derivative financial instruments
31,839
33,042
Equity-accounted investees
16,147
—
Other investments
31,339
29,324
Deferred tax assets
37,924
37,181
Restricted cash
381
5,875
Other assets
10,445
8,612
Total non-current assets
1,021,115
953,049
Inventories
252,435
277,311
Derivative financial instruments
2,412
3,516
Trade and other receivables
179,727
162,548
Other assets
117,828
121,834
Current tax assets
6,627
7,289
Restricted cash
1,059
1,045
Cash and cash equivalents
391,251
346,043
Total current assets
951,339
919,586
Total assets
1,972,454
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
June 30, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(39,334)
(44,869)
Retained earnings (deficit)
90,543
(4,461)
Equity attributable to shareholders of the Company
595,047
490,553
Non-controlling interests
35,185
27,296
Total equity
630,232
517,849
Liabilities
Loans and borrowings
658,722
661,270
Lease liabilities
43,912
44,224
Employee benefits
127,827
117,160
Provisions
12,969
12,361
Deferred revenue
20,000
20,000
Other liabilities
3,931
15,009
Derivative financial instruments
191
284
Deferred tax liabilities
18,515
27,269
Total non-current liabilities
886,067
897,577
Loans and borrowings
5,778
15,164
Lease liabilities
4,892
4,710
Short-term bank debt
8,116
6,391
Deferred revenue
14,533
28,277
Other liabilities
71,088
69,917
Trade and other payables
245,889
240,101
Derivative financial instruments
2,711
7,746
Advance payments from customers
51,947
51,054
Current tax liability
38,778
23,548
Provisions
12,423
10,301
Total current liabilities
456,155
457,209
Total liabilities
1,342,222
1,354,786
Total equity and liabilities
1,972,454
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from operating activities
Profit for the period
100,020
59,763
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
62,479
21,667
Depreciation and amortization
26,640
21,890
Asset impairment reversal
(767)
—
Net finance cost
13,899
21,130
Share of loss of associates and joint ventures
1,792
500
Loss on sale or disposal of property, plant and equipment
35
33
Equity-settled share-based payment transactions
2,964
2,752
Movement in provisions, pensions, and government grants
8,104
(2,917)
Working capital and deferred revenue adjustments
3,901
(63,774)
Cash generated from operating activities
219,067
61,044
Finance costs paid, net
(9,716)
(12,153)
Income tax paid
(55,981)
(13,040)
Net cash from operating activities
153,370
35,851
Cash used in investing activities
Proceeds from sale of property, plant and equipment
26
93
Acquisition of property, plant and equipment and intangibles
(69,291)
(82,608)
Investments in associates and joint ventures
(17,939)
(500)
Use of restricted cash
5,480
51,252
Interest received on restricted cash
30
76
Capitalized borrowing cost paid
(8,366)
(8,321)
Other
(1)
8
Net cash used in investing activities
(90,061)
(40,000)
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
2,041
152
Repayment of borrowings
(12,755)
(8,437)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(14,087)
(10,098)
Payment of lease liabilities
(2,659)
(2,588)
Advanced contributions
14,000
—
Net cash used in financing activities
(20,420)
(22,494)
Net increase (decrease) in cash and cash equivalents
42,889
(26,643)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
2,319
(10,476)
Cash and cash equivalents at June 30
391,251
300,758
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 4 May 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during its Annual General Meeting held on May 4, 2023, shareholders approved all agenda items presented, including the reappointment of Dr. Heinz Schimmelbusch as Chief Executive Officer and Chairman of the Management Board for an additional term of two years, with effect from May 4, 2023.
During the meeting, Professor Steve Hanke and Mr. Herb Depp were reappointed as independent members of the Supervisory Board for terms of two years each, beginning May 4, 2023.
Ms. Dagmar Bottenbruch has decided to step down from AMG’s Supervisory Board in view of other pressing priorities in her career, having served on AMG’s Supervisory Board since 2019. Given the vacancy created by the departure of Ms. Bottenbruch, Dr. Anne Roby was appointed as an independent member of the Supervisory Board for a term of four years beginning May 4, 2023.
Approval was also granted for the Company’s articles of association to be amended to accommodate the name change of the Company to »AMG Critical Materials N.V. » The reason for the change from AMG Advanced Metallurgical Group N.V. is explained in the Letter to Shareholders of the 2022 Annual Report.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 4 May 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during the Annual General Meeting, held on May 4, 2023, AMG’s shareholders approved the payment of a dividend of €0.70 per ordinary share over the financial year 2022. The interim dividend of €0.30, paid on August 10, 2022, was deducted from the amount distributed to shareholders. The final dividend per ordinary share therefore amounts to €0.40.
Payment of the final dividend will be completed on or around May 11, 2023, to shareholders of record on May 9, 2023. The ex-dividend date is May 8, 2023. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 3 May 2023(Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported first quarter 2023 revenue of $451 million, a 12% increase versus the same period in 2022. First quarter 2023 EBITDA of $118 million was more than double the EBITDA of $55 million for the first three months of last year, and represents an all-time high for AMG’s quarterly EBITDA.
In 000’s US dollars
Q1 ‘23
Q1 ‘22
Change
Revenue
$450,590
$403,863
12%
EBITDA (1)
118,111
54,760
116%
Cash from (used in) operating activities
93,395
(3,654)
N/A
Net income attributable to shareholders
56,221
29,115
93%
EPS – Fully diluted
1.72
0.89
93%
Return on Capital Employed
37.9%
19.8%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “I am pleased to announce that AMG will change its name, subject to the approval of our shareholders in the upcoming Annual General Meeting, from AMG Advanced Metallurgical Group N.V. to AMG Critical Materials N.V. We have also achieved new record earnings and operating cash flow.
This is the third straight quarter in which AMG has exceeded $100 million of EBITDA. The $63 million, or 116%, EBITDA increase over the first quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $92 million.
AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.
The record results are due to our recent expansion projects. The profitability going forward is also driven by the strategic projects coming on stream in 2023 and 2024, in particular our lithium concentrate expansion and our first lithium hydroxide refinery module in Bitterfeld. We thereby confirm our guidance for 2023 to exceed $400 million in EBITDA.”
Strategic Highlights
Lithium
The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
Regarding its development of solid state battery materials, AMG Lithium GmbH has engaged in a joint production with Fraunhofer Institute, Münster University, Wacker, and Schunk to develop next generation solid-state batteries based on lithium-sulfur technology. AMG Lithium will provide lithium sulfide and solid electrolytes for this project.
AMG has a 25% shareholding in Zinnwald Lithium PLC and is supporting the Zinnwald Board to accelerate the development of its lithium project in Eastern Germany.
Vanadium
The new vanadium spent catalyst recycling facility in Zanesville, Ohio, continues to progress, with the roaster operating at its design capacity and the melt shop targeting full production capacity later in the second quarter of this year.
AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are being executed as planned.
AMG has completed the expansion of its vanadium oxide (“V2O5”) production in Nuremberg, either using gasification ash or spent catalyst as alternative feed. V2O5 is increasingly destined for the LIVA battery market.
In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
Shell & AMG Recycling B.V. (“SARBV”) continues to advance its projects in the Middle East including the first phase of the Supercenter project based on long-term supply agreements with ARAMCO. Front end engineering design for the first phase of the project, the conversion of gasification ash into V2O5, began in late 2022 and will be completed in the fourth quarter of 2023.
Financial Highlights
Revenue increased by 12% to $451 million in the first quarter of 2023 from $404 million in the first quarter of 2022.
EBITDA was $118 million in the first quarter of 2023, up 116% versus the first quarter 2022 EBITDA of $55 million.
Annualized return on capital employed was 37.9% for the first quarter of 2023, compared to 19.8% for the first three months of 2022.
Cash from operating activities was $93 million in the first quarter of 2023, an increase of $97 million over the same period in 2022.
Net income attributable to shareholders for the first three months of 2023 was $56 million, yielding $1.72 diluted earnings per share compared to $0.89 for the same period in 2022.
AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability.
The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.
Key Figures
In 000’s US dollars
Q1 ‘23
Q1 ‘22
Change
Revenue
$450,590
$403,863
12%
Gross profit
139,842
75,194
86%
Gross margin
31.0%
18.6%
Operating profit
100,023
37,814
165%
Operating margin
22.2%
9.4%
Net income attributable to shareholders
56,221
29,115
93%
EPS – Fully diluted
1.72
0.89
93%
EBIT (1)
105,144
44,233
138%
EBITDA (2)
118,111
54,760
116%
EBITDA margin
26.2%
13.6%
Cash from (used in) operating activities
93,395
(3,654)
N/A
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q1 ‘23
Q1 ‘22
Change
Revenue
$219,080
$143,659
53%
Gross profit
108,957
39,004
179%
Operating profit
95,643
28,219
239%
EBITDA
106,137
37,227
185%
AMG Clean Energy Materials’ revenue increased 53% compared to the first quarter of 2022, to $219 million, driven mainly by higher prices in tantalum and lithium concentrates, as well as increased sales volumes of vanadium and tantalum concentrate.
Gross profit for the quarter increased 179% compared to the same period in the prior year, primarily due to the increased price environment.
SG&A expenses in the first quarter of 2023 were 23% higher than the same period in 2022, largely due to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects.
The first quarter 2023 EBITDA increased 185%, to $106 million, from $37 million in the first quarter of 2022, due to the improved gross profit as noted above.
During the first quarter of 2023, a total of 20,509 dry metric tons (“dmt”) of lithium concentrates was sold. The average realized sales price was $4,846/dmt CIF China for the quarter. The average cost per ton for the quarter was $338/dmt CIF China. This exceptional cost per ton result was driven by high sales volumes of tantalum concentrate in the quarter, and drove a quarterly EBITDA figure for AMG Brazil of $92 million.
AMG Critical Minerals
Q1 ‘23
Q1 ‘22
Change
Revenue
$62,929
$106,909
(41%)
Gross profit
7,266
13,002
(44%)
Operating profit
635
5,647
(89%)
EBITDA
2,550
7,883
(68%)
AMG Critical Minerals’ revenue for the first quarter of 2023 decreased by $44 million, or 41%, to $63 million, mainly due to lower volumes across the segment which was primarily driven by the silicon metal plant care and maintenance plan for the first two months of 2023 prior to restarting and operating one furnace in March discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.
Gross profit of $7 million in the first quarter was $6 million lower compared to the first quarter of 2022, largely due to the lower volumes in the first three months of this year.
SG&A expenses in the first quarter of 2023 decreased by 3%, to $7 million, compared to the same period in 2022. This was driven by lower personnel costs and variable compensation expense in the current quarter due to the interruptions in AMG Silicon’s operations earlier this quarter.
The first quarter 2023 EBITDA decreased 68% compared to the same period in 2022, to $3 million, due to the lower gross profit as noted above.
As of March 1, 2023, AMG’s silicon metal plant in Pocking, Germany, restarted operating one furnace. AMG Silicon is operating one furnace throughout the second quarter and plans to operate one furnace in the third quarter. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis and will be adjusted as appropriate in line with favorable and predictable market conditions. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $11 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022. The financial impact of the care and maintenance program does not significantly impact AMG’s overall projected 2023 financial results.
AMG Critical Materials Technologies
Q1 ‘23
Q1 ‘22
Change
Revenue
$168,581
$153,295
10%
Gross profit
23,619
23,188
2%
Operating profit
3,745
3,948
(5%)
EBITDA
9,424
9,650
(2%)
AMG Critical Materials Technologies’ first quarter 2023 revenue increased by $15 million, or 10%, compared to the same period in 2022. This improvement was driven by higher sales volumes of titanium alloys and chrome metal.
SG&A expenses increased by 3% in the first quarter of 2023 compared to the same period in 2022, due to an increase in personnel costs and higher variable compensation expense in the current quarter.
AMG Critical Materials Technologies’ EBITDA was $9 million during the quarter compared to $10 million in the same period of 2022. The slight decrease was due to lower sequential chrome prices in the first quarter, partially offset by stronger profitability from our Engineering business.
AMG Engineering signed $76 million in new orders during the first quarter of 2023, driven by strong orders of remelting, turbine blade and heat treatment furnaces, representing a 1.21x book to bill ratio. Order backlog was $237 million as of March 31, 2023, the highest since March 31, 2020.
Financial Review
Tax
AMG recorded an income tax expense of $36 million in the first quarter of 2023, compared to a tax benefit of $1 million in the first quarter of 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax expense in the first three months of 2023, compared to a $15 million benefit in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $21 million in the first quarter of 2023, compared to tax payments of $4 million in the first quarter of 2022. The higher cash payments this quarter were largely a result of higher profitability in Brazil.
Exceptional Items
AMG’s first quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the first quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q1 ‘23
Q1 ‘22
Change
Gross profit
$139,842
$75,194
86%
Inventory cost adjustment
510
—
N/A
Restructuring (reversal) expense
(263)
141
N/A
Asset impairment reversal
(767)
—
N/A
Silicon’s partial closure
(156)
—
N/A
Strategic project (reversal) expense
(51)
2,265
N/A
Gross profit excluding exceptional items
139,115
77,600
79%
The asset impairment reversal during the first quarter of 2023 was due to an insurance recovery on previously impaired machinery and equipment.
SG&A
AMG’s first quarter 2023 SG&A expenses were $40 million compared to $37 million in the first quarter of 2022, with the increase largely attributable to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects in our Clean Energy Materials segment.
Liquidity
March 31, 2023
December 31, 2022
Change
Senior secured debt
$339,061
$348,622
(3%)
Cash & cash equivalents
359,525
346,043
4%
Senior secured net (cash) debt
(20,464)
2,579
N/A
Other debt
14,801
14,959
(1%)
Net (cash) debt excluding municipal bond
(5,663)
17,538
N/A
Municipal bond debt
319,185
319,244
—%
Restricted cash
2,911
6,920
(58%)
Net debt
310,611
329,862
(6%)
AMG ended the quarter in a $311 million net debt position. This decrease versus year-end 2022 was mainly due to $10 million of debt repayment and higher unrestricted cash of $14 million, offset by the utilization of restricted cash associated with the municipal bond.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2023, the Company had $360 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $555 million of total liquidity as of March 31, 2023.
Net Finance Costs
AMG’s first quarter 2023 net finance cost was $7 million compared to $9 million in the first quarter of 2022. This variance was mainly driven by foreign exchange gains of $2 million during the quarter primarily due to non-cash intergroup balances.
AMG capitalized $2 million of interest costs in the first quarter of 2023 versus $4 million in the same period in 2022. This decrease is mainly driven by the interest associated with the expansion projects in AMG Lithium and Brazil operations compared to a higher capitalized interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio in prior year.
Outlook
AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.
Regarding AMG’s 5-year guidance, the outstanding progress we have made with our strategic growth projects and given the compelling long-term supply and demand dynamics in the lithium market, we are issuing new guidance to achieve $650 million EBITDA, or more, in 5 years or earlier.
Profit for the period to adjusted EBITDA reconciliation
Q1 ‘23
Q1 ‘22
Profit for the period
$56,447
$29,884
Income tax expense (benefit)
35,927
(1,489)
Net finance cost
6,617
8,919
Equity-settled share-based payment transactions
1,469
1,380
Restructuring (reversal) expense
(263)
141
Silicon’s partial closure
547
—
Inventory cost adjustment
510
—
Asset impairment reversal
(767)
—
Strategic project expense (1)
3,625
4,796
Share of loss of associates
1,032
500
Others
—
102
EBIT
105,144
44,233
Depreciation and amortization
12,967
10,527
EBITDA
118,111
54,760
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
450,590
403,863
Cost of sales
(310,748)
(328,669)
Gross profit
139,842
75,194
Selling, general and administrative expenses
(40,360)
(37,462)
Other income, net
541
82
Net other operating income
541
82
Operating profit
100,023
37,814
Finance income
5,476
299
Finance cost
(12,093)
(9,218)
Net finance cost
(6,617)
(8,919)
Share of loss of associates and joint ventures
(1,032)
(500)
Profit before income tax
92,374
28,395
Income tax (expense) benefit
(35,927)
1,489
Profit for the period
56,447
29,884
Profit attributable to:
Shareholders of the Company
56,221
29,115
Non-controlling interests
226
769
Profit for the period
56,447
29,884
Earnings per share
Basic earnings per share
1.76
0.91
Diluted earnings per share
1.72
0.89
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
March 31, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
833,444
797,611
Goodwill and other intangible assets
41,757
41,404
Derivative financial instruments
28,015
33,042
Other investments
46,213
29,324
Deferred tax assets
36,813
37,181
Restricted cash
1,860
5,875
Other assets
9,245
8,612
Total non-current assets
997,347
953,049
Inventories
266,214
277,311
Derivative financial instruments
2,951
3,516
Trade and other receivables
189,983
162,548
Other assets
116,434
121,834
Current tax assets
7,912
7,289
Restricted cash
1,051
1,045
Cash and cash equivalents
359,525
346,043
Total current assets
944,070
919,586
Total assets
1,941,417
1,872,635
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
March 31, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(43,449)
(44,869)
Retained earnings (deficit)
60,898
(4,461)
Equity attributable to shareholders of the Company
561,287
490,553
Non-controlling interests
34,376
27,296
Total equity
595,663
517,849
Liabilities
Loans and borrowings
660,246
661,270
Lease liabilities
44,020
44,224
Employee benefits
118,734
117,160
Provisions
12,512
12,361
Deferred revenue
20,000
20,000
Other liabilities
4,157
15,009
Derivative financial instruments
171
284
Deferred tax liabilities
25,777
27,269
Total non-current liabilities
885,617
897,577
Loans and borrowings
5,948
15,164
Lease liabilities
4,720
4,710
Short-term bank debt
6,853
6,391
Deferred revenue
37,719
28,277
Other liabilities
68,572
69,917
Trade and other payables
231,407
240,101
Derivative financial instruments
4,705
7,746
Advance payments from customers
44,446
51,054
Current tax liability
41,343
23,548
Provisions
14,424
10,301
Total current liabilities
460,137
457,209
Total liabilities
1,345,754
1,354,786
Total equity and liabilities
1,941,417
1,872,635
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from (used in) operating activities
Profit for the period
56,447
29,884
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense (benefit)
35,927
(1,489)
Depreciation and amortization
12,967
10,527
Asset impairment reversal
(767)
—
Net finance cost
6,617
8,919
Share of loss of associates and joint ventures
1,032
500
Loss (gain) on sale or disposal of property, plant and equipment
9
(55)
Equity-settled share-based payment transactions
1,469
1,380
Movement in provisions, pensions, and government grants
2,755
(1,685)
Working capital and deferred revenue adjustments
4,905
(41,819)
Cash generated from operating activities
121,361
6,162
Finance costs paid, net
(7,012)
(5,917)
Income tax paid
(20,954)
(3,899)
Net cash from (used in) operating activities
93,395
(3,654)
Cash used in investing activities
Proceeds from sale of property, plant and equipment
—
59
Acquisition of property, plant and equipment and intangibles
(44,718)
(43,763)
Investments in associates and joint ventures
(17,500)
(500)
Use of restricted cash
4,009
31,295
Interest received on restricted cash
19
9
Capitalized borrowing cost paid
(5,739)
(7,886)
Other
3
8
Net cash used in investing activities
(63,926)
(20,778)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
423
1,835
Repayment of borrowings
(10,750)
(1,718)
Net repurchase of common shares
(6,672)
(1,523)
Payment of lease liabilities
(1,316)
(1,291)
Net cash used in financing activities
(18,315)
(2,697)
Net increase (decrease) in cash and cash equivalents
11,154
(27,129)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
2,328
(2,266)
Cash and cash equivalents at March 31
359,525
308,482
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 23March 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that Zinnwald Lithium Plc (« Zinnwald”) (ZNWD, AIM) will issue 118,996,738 newly issued ordinary shares to AMG for a total subscription amount of £12,387,560.40 resulting in a 25.13% shareholding.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About Zinnwald
Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 22March 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that it has agreed with Zinnwald Lithium Plc (« Zinnwald”) (ZNWD, AIM) to subscribe for up to 124 million newly issued ordinary shares as a cornerstone investor to Zinnwald’s accelerated book build. The shares will be subscribed for at a 10% premium to the 20-day Volume Weighted Average Price (“VWAP”) as of the close of market on March 20, 2023, that is, a price of 10.41 pence per share. Upon admission of the newly issued ordinary shares, expected on March 29, AMG will become a 25% shareholder of Zinnwald.
Dr. Heinz Schimmelbusch, AMG’s CEO, commented, “AMG’s investment in Zinnwald is a valuable strategic opportunity. As a partner with Zinnwald, together we will pursue a definitive feasibility study for their project in Eastern Germany. Establishing a raw material base in Germany close to our Bitterfeld operations has obvious logistical and strategic benefits for AMG, and we look forward to working with Zinnwald on this exciting project.”
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About Zinnwald
Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, le 22 février 2023(Informations réglementées) — AMG Advanced Metallurgical Group N.V. (« AMG », EURONEXT AMSTERDAM : « AMG ») a déclaré un chiffre d’affaires de 390 millions USD au quatrième trimestre 2022, soit une augmentation de 18 % par rapport au quatrième trimestre 2021. L’EBITDA de 104 millions USD du quatrième trimestre 2022 a plus que doublé le quatrième trimestre 2021, de sorte qu’AMG a établi un EBITDA record de 343 millions USD sur l’ensemble de l’année.
En milliers de dollars américains
Exercice 2022
Exercice 2021
Changement
Revenus
$1 642 774
$1 204 666
36 %
EBITDA(1)
342 550
136 676
151 %
Trésorerie provenant des activités d’exploitation
167 567
90 788
85 %
Résultat net attribuable aux actionnaires
187 589
13 771
BPA (bénéfice par action) – entièrement dilué
5,73
0,44
Rendement du capital employé
30,8 %
11,9 %
Remarque :
L’EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization – revenus avant les déductions des impôts, des intérêts, des dotations aux amortissements et des provisions sur immobilisations) est défini comme l’EBIT (bénéfice avant intérêts et impôts) ajusté pour les dotations aux amortissements et les provisions sur immobilisations.
Le Dr Heinz Schimmelbusch, président du conseil d’administration et PDG, a déclaré : « L’EBITDA, le chiffre d’affaires, le bénéfice brut, les flux de trésorerie d’exploitation, le rendement du capital employé et le revenu net d’AMG pour l’exercice 2022 ont été les plus élevés de toute l’histoire de la société en termes de marges significatives. Ce résultat est dû au segment Matériaux d’énergie propre d’AMG, en particulier AMG Lithium et son exploitation au Brésil, qui a affiché une contribution EBITDA de 215 millions USD, soit 63 % du total EBITDA pour l’année. En outre, AMG a dépassé 100 millions USD d’EBITDA pour le deuxième trimestre consécutif. L’EBITDA pour le quatrième trimestre 2022 s’est élevé à 104 millions USD, contre 44 millions USD au quatrième trimestre 2021, soit une augmentation de 60 millions USD, ou 137 %. Notre portefeuille de réduction des émissions de CO2 (ECO2RP) en 2022 a permis une réduction de 99,4 millions de tonnes de CO2, soit 26 % de plus que les 79,0 millions de tonnes de réduction de CO2 en 2021. »
Perspectives
AMG réaffirme ses prévisions pour l’exercice 2023 indiquant un EBITDA supérieur à 400 millions USD.
AMG prévoit d’augmenter de 5 % le personnel global de la Société qui comptait environ 3 400 employés à la fin de l’année 2022, en raison de l’embauche associée à l’accélération de l’expansion du vanadium dans l’Ohio et de l’expansion du lithium en Allemagne.
Les dépenses d’investissement pour 2023 devraient se situer entre 175 millions USD et 200 millions USD, principalement justifiées par l’expansion du concentré de lithium au Brésil et les dépenses liées à la construction de l’usine d’hydroxyde de lithium en Allemagne.
En ce qui concerne le financement en 2023, AMG a refinancé son prêt à terme de 350 millions USD et son crédit permanent (revolver) de 200 millions USD en novembre 2021, étendant les échéances du crédit permanent et du prêt à terme à 2026 et 2028, respectivement. AMG n’a pas d’échéances de dette à court terme significatives. Et bien que nous cherchions à optimiser constamment notre structure financière, notre liquidité actuelle de 532 millions USD peut financer entièrement tous les projets d’expansion de capital approuvés et toutes les autres obligations financières.
En outre, nous réaffirmons notre engagement à deux volets : réduire nos émissions de CO2 et augmenter nos économies de CO2 d’ici 2030.
Points forts stratégiques
Lithium
Le projet d’expansion de la production de spodumène à AMG Brasil Le projet consolidera la position à faible coût d’AMG. L’objectif est d’être à pleine capacité au deuxième semestre 2023.
La raffinerie AMG Lithium de Bitterfeld, en Allemagne, la première raffinerie d’hydroxyde de lithium en Europe, est en cours de construction, et la mise en service du premier module de 20 000 tonnes de la valorisation de l’hydroxyde de lithium de qualité batterie commencera au quatrième trimestre 2023.
AMG Lithium a signé un protocole d’accord non contraignant avec FREYR Battery, qui consiste essentiellement pour AMG Lithium à fournir à FREYR entre 3 000 et 5 000 tonnes d’hydroxyde de lithium de qualité batterie par an.
AMG Brasil, JX Nippon Mining & Metals Corporation (« JXNMM ») et TANIOBIS GmbH ont annoncé un partenariat stratégique en décembre 2022 pour la production et l’approvisionnement de concentré de tantale de la mine Mibra d’AMG au Brésil. JXNMM investira dans l’expansion de la production de concentré de tantale qui se produit en combinaison avec l’expansion déjà annoncée de la capacité de spodumène d’AMG. Tout le préconcentré de tantale sera vendu à TANIOBIS, offrant une stabilité à long terme des ventes de tantale et des crédits de sous-produit correspondants aux coûts de production de lithium pour AMG Brasil.
Vanadium
AMG a finalisé l’achèvement de la nouvelle installation de recyclage de catalyseurs usagés de vanadium à Zanesville, dans l’Ohio. Les opérations ont commencé le 29 octobre 2022, et nous comptons atteindre une pleine capacité de production au deuxième trimestre 2023.
Shell & AMG Recycling B.V. (« SARBV ») fait progresser ses projets au Moyen-Orient, en particulier la première phase du projet Supercenter sur la base d’accords d’approvisionnement à long terme avec Saudi Arabian Oil Company (« Aramco »). L’optimisation de la conception de l’usine, la sélection du site et les activités d’autorisation progressent et le partenariat FEL3 avec Hatch a commencé en décembre 2022.
AMG LIVA a mis sa première batterie industrielle, l’Hybrid Energy Storage System (« HESS » – système de stockage d’énergie hybride), en mode de fonctionnement entièrement automatique dans l’usine d’AMG Graphite à Hauzenberg en novembre 2022.
AMG LIVA a vendu son premier HESS à un tiers en décembre 2022, Wipotec GmbH, l’un des principaux fournisseurs mondiaux de technologie intelligente de pesée et d’inspection, situé dans le sud de l’Allemagne. La batterie sera intégrée au système d’alimentation de l’établissement.
En janvier 2023, AMG a approuvé la construction d’une usine d’électrolytes de vanadium dans sa filiale, AMG Titanium, à Nuremberg, en Allemagne. La capacité cible est de 6 000 m3 d’électrolyte de vanadium. Les principaux travaux d’ingénierie de l’usine ont été achevés en novembre, les dépenses d’investissement devraient s’élever à 15 millions USD, et la production devrait commencer fin 2023.
Points forts financiers
Le chiffre d’affaires a augmenté de 18 % pour atteindre 390 millions USD au quatrième trimestre 2022, contre 330 millions USD au quatrième trimestre 2021. Sur une base annuelle complète, le chiffre d’affaires a augmenté de 36 %.
L’EBITDA s’est élevé à 104 millions USD au quatrième trimestre 2022, marquant une hausse de 137 % par rapport à l’EBITDA de 44 millions USD du quatrième trimestre 2021. L’EBITDA de 343 millions USD pour l’exercice est supérieur de 151 % à celui de l’année précédente.
Le rendement annualisé du capital employé a été de 30,8 % en 2022, soit plus du double des 11,9 % en 2021.
Le flux de trésorerie lié à l’exploitation s’est élevé à 168millions USD pour l’exercice 2022, contre 91 millions USD en 2021, en raison de la rentabilité élevée d’AMG Lithium au Brésil.
Le revenu net attribuable aux actionnaires pour l’exercice 2022 de 188 millions USD a généré un bénéfice dilué par action de 5,73 USD, contre 0,44 USD en 2021.
Au 31 décembre 2022, AMG avait 532 millions USD de liquidités : 346 millions USD d’encaisse non affectée et 186 millions USD de disponibilité de crédit permanent.
Le dividende total proposé pour 2022 est de 0,70 EUR par action ordinaire, y compris l’acompte sur dividende de 0,30 EUR, payé le 10 août 2022.
Chiffres clés
En milliers de dollars américains
T4 2022
T4 2021
Changement
Exercice 2022
Exercice 2021
Changement
Revenus
$390 004
$330 360
18 %
$1 642 774
$1 204 666
36 %
Bénéfice brut
119 981
61 797
94 %
409 486
208 243
97 %
Marge brute
30,8 %
18,7 %
24,9 %
17,3 %
Bénéfice d’exploitation
82 319
22 295
269 %
307 059
57 141
437 %
Marge d’exploitation
21,1 %
6,7 %
18,7 %
4,7 %
Résultat net attribuable aux actionnaires
60 697
5 705
964 %
187 589
13 771
1 262 %
BPA (bénéfice par action) – entièrement dilué
1,85
0,18
928 %
5,73
0,44
1 202 %
EBIT(1)
91 719
32 678
181 %
297 251
92 991
220 %
EBITDA(2)
104 061
43 885
137 %
342 550
136 676
151 %
Marge EBITDA
26,7 %
13,3 %
20,9 %
11,3 %
Espèces provenant des activités d’exploitation
56 969
30 225
88 %
167 567
90 788
85 %
Remarques :
L’EBIT (Earnings Before Interest and Tax) est défini comme le bénéfice avant intérêts et impôts sur le revenu. L’EBIT exclut la restructuration, la dépréciation des actifs, les ajustements des coûts d’inventaire, les provisions environnementales, les frais juridiques exceptionnels et autres éléments exceptionnels, les paiements fondés sur des actions et réglées en instruments de capitaux propres, et les dépenses stratégiques.
L’EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization – revenus avant les déductions des impôts, des intérêts, des dotations aux amortissements et des provisions sur immobilisations) est défini comme l’EBIT (bénéfice avant intérêts et impôts) ajusté pour les dotations aux amortissements et les provisions sur immobilisations.
Examen opérationnel
Matériaux énergétiques propres AMG
T4 2022
T4 2021
Changement
Exercice 2022
Exercice 2021
Changement
Revenus
$176 065
$115 405
53 %
$667 804
$381 475
75 %
Bénéfice brut
81 583
27 950
192 %
267 862
75 095
257 %
Bénéfice brut avant éléments non récurrents
82 784
29 038
185 %
273 417
80 264
241 %
Bénéfice d’exploitation
69 779
16 301
328 %
222 590
22 476
890 %
EBITDA
80 347
25 753
212 %
259 480
66 622
289 %
Le chiffre d’affaires d’AMG Clean Energy Materials a augmenté de 53 % par rapport au quatrième trimestre 2021, pour atteindre 176 millions USD, principalement en raison de la hausse des prix des concentrés de vanadium, de tantale et de lithium, et de l’augmentation des volumes de ventes de concentrés de vanadium et de tantale. La hausse des prix et des volumes en 2022 a propulsé le chiffre d’affaires du segment de 75 % par rapport à 2021.
Le bénéfice brut avant éléments non récurrents pour le trimestre a augmenté de 185 % vs la même période de l’année précédente. Le bénéfice brut du segment pour l’exercice 2022 avant éléments non récurrents a augmenté de 241 % par rapport à 2021, principalement en raison de l’augmentation de l’environnement tarifaire.
Les dépenses SG&A (Selling, General and Administrative – frais de vente, dépenses administratives et autres frais généraux) de 12 millions USD.au quatrième trimestre 2022 ont correspondu à ceux de la même période en 2021. Les dépenses SG&A pour l’exercice 2022 ont augmenté de 11 % par rapport à 2021, en grande partie en raison de l’augmentation des frais professionnels associés aux projets stratégiques en 2022, compensée par une moindre rémunération à base d’actions.
L’EBITDA du quatrième trimestre 2022 a augmenté de 212 %, pour atteindre 80 millions USD, par rapport à 26 millions USD au quatrième trimestre 2021, en raison de l’amélioration du bénéfice brut comme indiqué ci-dessus. L’EBITDA du segment de 259 millions USD pour l’exercice 2022 a été supérieur de 289 % à l’EBITDA de 2021, cette augmentation étant largement attribuable à l’activité lithium. La rentabilité du vanadium a été impactée au quatrième trimestre 2022 par une baisse séquentielle des prix de l’indice de 16 % par rapport au troisième trimestre et l’impact des coûts de démarrage de Zanesville.
Au cours du quatrième trimestre 2022, un total de 21 329 tonnes métriques sèches (dry metric tons, « dmt ») de spodumène a été vendu. Le prix de vente moyen réalisé a été de 3 682 USD/dmt CIF Chine pour le trimestre. Le coût moyen par tonne pour le trimestre a été de 228 USD/dmt FIC Chine. Ce résultat exceptionnel du coût par tonne a été facilité par des volumes de ventes élevés de concentré de tantale au cours du trimestre, et a généré un chiffre d’EBITDA trimestriel pour AMG Brasil de 73 millions USD.
Pour l’ensemble de l’année 2022, un total de 86 713 dmt de spodumène a été vendu. Le prix de vente moyen réalisé a été de 2 805 USD/dmt CIF Chine et le coût moyen par tonne pour l’exercice a été de 461 USD/dmt CIF Chine. L’EBITDA total pour AMG Brasil s’est élevé à 215 millions USD.
Minerais critiques d’AMG
T4 2022
T4 2021
Changement
Exercice 2022
Exercice 2021
Changement
Revenus
$69 242
$79 422
(13 %)
$364 502
$308 523
18 %
Bénéfice brut
19 017
11 189
70 %
46 721
48 735
(4 %)
Bénéfice brut avant éléments non récurrents
18 641
11 379
64 %
57 928
48 690
19 %
Bénéfice d’exploitation
10 961
2 584
324 %
63 995
20 181
217 %
EBITDA
14 001
6 459
117 %
38 280
31 200
23 %
Le chiffre d’affaires d’AMG Critical Minerals pour le quatrième trimestre 2022 a baissé de 10 millions USD, soit de 13 %, affichant 69 millions USD, principalement en raison de volumes plus faibles dans l’ensemble du segment. Sur une base annuelle, le chiffre d’affaires a augmenté de 18 % vs 2021.
Le bénéfice brut avant éléments non récurrents de 19 millions USD au quatrième trimestre a dépassé de 64 % celui du quatrième trimestre 2021. Le bénéfice brut du segment pour l’exercice 2022 avant éléments non récurrents a été supérieur de 19 % par rapport à 2021, en grande partie en raison de l’amélioration de l’environnement tarifaire et des contrats énergétiques favorables pour la production de silicium au quatrième trimestre.
Les dépenses SG&A du quatrième trimestre 2022 ont diminué de 20 %, se situant à 7 millions USD, par rapport à la même période en 2021. Cela a été en grande partie dû à la baisse des charges de rémunération à base d’actions au cours du trimestre en cours, associée à l’enregistrement d’une contrepassation l’année précédente. Les dépenses SG&A de l’exercice 2022 ont été légèrement inférieures à 2021, présentant un écart de 0,6 million USD.
L’EBITDA du quatrième trimestre 2022 a augmenté de 117 % par rapport à la même période en 2021, pour atteindre 14 millions USD, en raison de l’amélioration du bénéfice brut comme indiqué ci-dessus et des contrats énergétiques favorables chez AMG Silicon au cours du trimestre. L’amélioration des prix en 2022 a entraîné une augmentation de 23 % de l’EBITDA au cours de l’exercice pour le segment par rapport à 2021.
À compter du 1er janvier 2023, AMG a placé son usine de silicium métallique de Pocking, en Allemagne, en mode d’entretien et de maintenance. L’usine redémarrera et exploitera un four en mars 2023. Les paramètres opérationnels de l’activité silicium continueront d’être examinés de manière continue et seront ajustés selon les besoins en fonction des conditions favorables et prévisibles du marché. En raison des interruptions constatées dans la production de silicium, l’impact financier de l’activité sera exclu de l’EBITDA pendant cette période d’opérations anormales. L’impact financier du programme d’entretien et de maintenance n’a pas d’impact important sur les résultats financiers globaux d’AMG prévus pour 2023.
Technologies des matériaux critiques d’AMG
T4 2022
T4 2021
Changement
Exercice 2022
Exercice 2021
Changement
Revenus
$144 697
$135 533
7 %
$610 468
$514 668
19 %
Bénéfice brut
19 381
22 658
(14 %)
94 903
84 413
12 %
Bénéfice brut avant éléments non récurrents
20 745
22 388
(7 %)
96 449
84 309
14 %
Bénéfice d’exploitation
1 579
3 410
(54 %)
20 474
14 484
41 %
EBITDA
9 713
11 673
(17 %)
44 790
38 854
15 %
Le chiffre d’affaires d’AMG Critical Materials Technologies pour le quatrième trimestre 2022 a augmenté de 9 millions USD, soit 7 %, par rapport à la même période en 2021. Cette amélioration est due à des volumes de ventes plus élevés d’aluminides de titane et à de meilleurs prix pour le métal chromé. Le chiffre d’affaires de l’exercice 2022 a été supérieur de 19 % à celui de l’année précédente et le bénéfice brut avant éléments non récurrents pour 2022 de 96 millions USD a dépassé de 14 % les 84 millions USD de 2021, en grande partie en raison de l’amélioration de l’environnement des prix par rapport à l’année précédente associée à la reprise continue du marché de l’aérospatiale après la pandémie.
Au cours du premier semestre, les perturbations du marché associées à l’invasion russe de l’Ukraine ont eu un impact sur la chaîne d’approvisionnement du métal chromé, créant une augmentation spectaculaire du prix des matières premières et une disponibilité limitée. Pour se protéger contre les interruptions opérationnelles, la Société a obtenu des volumes de matières premières supplémentaires aux conditions du marché à des prix fixes. Au quatrième trimestre, les perturbations de la chaîne d’approvisionnement ont été atténuées et les prix ont considérablement chuté. Cela a entraîné un impact négatif sur les marges du chrome de la société au quatrième trimestre et une dépréciation de l’inventaire de 1,6 million USD.
Les dépenses SG&A ont diminué de 7 % au quatrième trimestre 2022 par rapport à la même période en 2021, en raison de la baisse des charges liées aux actions au cours du trimestre en cours associée à une contrepassation l’année précédente.
L’EBITDA d’AMG Critical Materials Technologies s’est élevé à 10 millions USD au cours du trimestre, contre 12 millions USD à la même période en 2021. Cette baisse est due à la dislocation du marché du chrome indiquée ci-dessus, contrebalancée par une rentabilité plus forte de notre activité d’ingénierie. L’EBITDA de l’exercice 2022 pour le segment, qui se situe à 45 millions USD a dépassé de 15 % celui de 2021. Cela a principalement été dû à la reprise continue du secteur de l’aérospatiale en 2022.
AMG Engineering a signé 67 millions USD de nouvelles commandes au cours du quatrième trimestre 2022, en réponse à de fortes commandes d’aubes de turbine et de fours à induction, ce qui représente un ratio livre/facture de 1,28x. En janvier 2023, la Société a continué à recevoir de nombreuses commandes d’un montant de 44 millions USD, principalement dans le domaine du revêtement des aubes de turbine. Au 31 décembre 2022, son carnet de commandes s’élevait à 220 millions USD, le plus élevé depuis le 31 mars 2020.
Examen financier
Taxe
AMG a enregistré une charge d’impôt sur le revenu de 84 millions USD en 2022, contre 9 millions USD en 2021. Cet écart est principalement dû à l’amélioration des résultats d’exploitation d’AMG Lithium dans son exploitation brésilienne, couplée à des variations du réal brésilien. Les effets du réal brésilien ont généré un avantage de 7 millions USD en 2022, contre un avantage fiscal de 4 millions USD en 2021. Les fluctuations du taux de change du réal brésilien ont un impact sur l’évaluation des positions nettes d’impôt différé de la Société liées à ses opérations au Brésil.
AMG a payé 42 millions USD en impôts en 2022, contre des paiements fiscaux de 10 millions USD en 2021. Les paiements en espèces plus élevés en 2022 ont largement été dus à l’amélioration des résultats d’exploitation.
Éléments exceptionnels
Le bénéfice brut d’AMG pour le quatrième trimestre et l’exercice 2022 comprend des éléments exceptionnels, qui ne sont pas inclus dans le calcul de l’EBITDA.
Un résumé des éléments exceptionnels inclus dans le bénéfice brut en 2022 et 2021 est présenté ci-dessous :
Éléments exceptionnels inclus dans le bénéfice brut
T4 2022
T4 2021
Changement
Exercice 2022
Exercice 2021
Changement
Bénéfice brut
$119 981
$61 797
94 %
$409 486
$208 243
97 %
Ajustement des coûts d’inventaire
1 589
—
S.O.
1 589
1 164
37 %
Dépenses de restructuration (contrepassation)
389
(140)
S.O.
582
522
11 %
Dépenses liées à la dépréciation d’actifs (contrepassation)
(990)
153
S.O.
10 597
(711)
S.O.
Dépenses liées aux projets stratégiques
1 201
1 501
(20 %)
5 540
4 045
37 %
Autres
—
(506)
S.O.
—
—
S.O.
Bénéfice brut hors éléments exceptionnels
122 170
62 805
95 %
427 794
213 263
101 %
Coûts énergétiques
Les coûts énergétiques totaux ont augmenté de 16 millions USD en 2022 par rapport à 2021 en raison de l’augmentation des coûts du gaz et de l’électricité au cours de l’année. La majeure partie de cette augmentation a eu lieu dans notre activité silicium en Allemagne, mais cette activité a bénéficié de coûts d’électricité entièrement couverts. D’autres unités commerciales ont bénéficié de contrats d’électricité à long terme qui n’ont pas de clauses d’escalade de prix, et les unités commerciales qui ont connu une augmentation des coûts énergétiques ont pu transmettre la plupart de ces coûts accrus à leurs clients.
SG&A
Les dépenses SG&A du quatrième trimestre 2022 d’AMG se sont élevées à 37 millions USD, contre 40 millions USD au quatrième trimestre 2021, la baisse étant due à de moindres charges de rémunération liées aux actions associées à une contrepassation au cours de l’année précédente.
Les dépenses SG&A pour l’exercice 2022, qui se sont élevées à 148 millions USD, ont augmenté de 6 % par rapport à 2021, écart principalement dû à l’augmentation des frais professionnels associés aux projets stratégiques au cours de la période actuelle, compensée par de moindres dépenses en matière de rémunération à base d’actions.
Liquidités
31 décembre
2022
31 décembre
2021
Changement
Dette garantie senior
$348 622
$371 897
(6 %)
Trésorerie et équivalents de trésorerie
346 043
337 877
2 %
Dette garantie senior
2 579
34 020
(92 %)
Autre dette
14 959
24 398
(39 %)
Dette nette hors obligations municipales
17 538
58 418
(70 %)
Obligations municipales
319 244
319 476
— %
Encaisse affectée
6 920
93 434
(93 %)
Dette nette
329 862
284 460
16 %
AMG a terminé l’année en position d’endettement net de 330 millions USD. Cette augmentation est principalement due à l’investissement important dans des initiatives de croissance au cours de l’année, en particulier dans notre installation de Zanesville, qui a utilisé l’encaisse affectée associée aux obligations municipales. Cette utilisation de l’encaisse affectée a été compensée par un remboursement de la dette de 34 millions USD et une trésorerie non affectée plus élevée.
AMG a continué à maintenir un bilan solide et des sources de liquidité adéquates au cours du quatrième trimestre. Au 31 décembre 2022, la Société disposait de 346 millions USD d’encaisse non affectée et d’équivalents de trésorerie, et de 186 millions USD disponibles dans le cadre de sa facilité de crédit permanente. À ce titre, AMG disposait de 532 millions USD de liquidités totales au 31 décembre 2022.
Coûts financiers nets
Le revenu financier net d’AMG pour le quatrième trimestre 2022 s’élevait à 4 millions USD, contre un coût de 13 millions USD au quatrième trimestre 2021. Cet écart a principalement été dû à des gains de change de 10 millions USD au cours du trimestre, principalement dus à des soldes intergroupes non monétaires.
AMG a capitalisé 1 million USD de coûts d’intérêts au quatrième trimestre 2022 contre 4 millions USD à la même période en 2021, en raison des intérêts associés à l’obligation municipale exonérée d’impôt de la Société soutenant l’expansion du vanadium dans l’Ohio. Cette baisse est due à une partie des coûts d’intérêts des obligations municipales qui ne sont plus capitalisés en raison de l’accélération de la production dans notre usine de Zanesville.
Proposition finale de dividende
AMG entend déclarer un dividende de 0,70 EUR par action ordinaire sur l’exercice 2022. L’acompte sur dividende de 0,30 EUR, versé le 10 août 2022, sera déduit du montant à distribuer aux actionnaires. Le dividende final proposé par action ordinaire s’élève donc à 0,40 EUR.
Une proposition de résolution de la distribution finale des dividendes sera incluse à l’ordre du jour de l’Assemblée générale annuelle qui se tiendra le 4 mai 2023.
Bénéfice pour la période de rapprochement de l’EBITDA ajusté
T4 2022
T4 2021
Exercice 2022
Exercice 2021
Bénéfice pour la période
$62 669
$4 139
$190 771
$13 779
Charge d’impôt sur le revenu
23 827
5 293
84 097
8 707
Coût financier net (revenu)
(4 177)
12 644
30 941
33 602
Transactions de paiement fondés sur des actions et réglées en instruments de capitaux
1 414
6 883
5 552
10 206
Dépenses de restructuration (contrepassation)
389
(140)
582
522
Règlements contractuels nets(1)
971
—
(45 436)
—
Ajustement des coûts d’inventaire
1 589
—
1 589
1 164
Dépenses liées à la dépréciation d’actifs (contrepassation)(1)
(990)
153
10 597
(711)
Disposition environnementale
143
230
133
11 941
Dépenses liées aux projets stratégiques(2)
5 885
3 769
17 070
12 157
Part de perte des associés
—
219
1 250
1 053
Autres
(1)
(512)
105
571
EBIT
91 719
32 678
297 251
92 991
Dotations aux amortissements et provisions sur immobilisations.
12 342
11 207
45 299
43 685
EBITDA
104 061
43 885
342 550
136 676
Remarques :
En lien avec l’arrêt du silicium métal, AMG a enregistré un résultat de la vente d’un contrat d’approvisionnement existant qui a eu un impact positif sur le bénéfice d’exploitation de l’année. Ce revenu a été compensé par un règlement avec un client important et une dépréciation des actifs existants.
La Société est en phase initiale de développement et d’accélération de plusieurs projets d’expansion stratégique, y compris le projet d’expansion d’AMG Vanadium, la coentreprise avec Shell, le système hybride de batterie au lithium-vanadium à flux redox, et l’expansion du lithium en Allemagne, projet qui ont nécessité d’engager des dépenses au cours du trimestre, mais qui ne sont pas encore opérationnels. AMG ajuste l’EBITDA pour ces charges exceptionnelles.
AMG Advanced Metallurgical Group N.V.
Compte de résultat consolidé
Pour le trimestre clos le 31 décembre
En milliers de dollars américains
2022
2021
Non audité
Non audité
Poursuite des opérations
Revenus
390 004
330 360
Coût des ventes
(270 023)
(268 563)
Bénéfice brut
119 981
61 797
Frais de vente, dépenses administratives et autres frais généraux
(36 579)
(39 501)
Dépenses environnementales
(143)
(230)
Autres dépenses
(940)
—
Autres revenus
—
229
Autres charges d’exploitation nettes
(1 083)
(1)
Bénéfice d’exploitation
82 319
22 295
Revenu financier
5 459
1 107
Coût financier
(1 282)
(13 751)
Revenu financier net (coût)
4 177
(12 644)
Part de perte d’associés et de coentreprises
—
(219)
Bénéfice avant impôt sur le revenu
86 496
9 432
Charge d’impôt sur le revenu
(23 827)
(5 293)
Bénéfice pour la période
62 669
4 139
Bénéfice attribuable à :
Actionnaires de la Société
60 697
5 705
Participations minoritaires
1 972
(1 566)
Bénéfice pour la période
62 669
4 139
Bénéfices par action
Bénéfices de base par action
1,90
0,18
Bénéfices dilués par action
1,85
0,18
AMG Advanced Metallurgical Group N.V.
Compte de résultat consolidé
Pour l’exercice clos le 31 décembre
En milliers de dollars américains
2022
2021
Non audité
Poursuite des opérations
Revenus
1,642 774
1,204 666
Coût des ventes
(1,233 288)
(996 423)
Bénéfice brut
409 486
208 243
Frais de vente, dépenses administratives et autres frais généraux
(147 963)
(139 576)
Dépenses environnementales
(133)
(11 941)
Autres dépenses
(14 411)
—
Autres revenus
60 080
415
Autres produits nets d’exploitation (dépenses)
45 536
(11 526)
Bénéfice d’exploitation
307 059
57 141
Revenu financier
9 061
1 938
Coût financier
(40 002)
(35 540)
Coût financier net
(30 941)
(33 602)
Part de perte d’associés et de coentreprises
(1 250)
(1 053)
Bénéfice avant impôt sur le revenu
274 868
22 486
Charge d’impôt sur le revenu
(84 097)
(8 707)
Bénéfice pour la période
190 771
13 779
Bénéfice attribuable à :
Actionnaires de la Société
187 589
13 771
Participations minoritaires
3 182
8
Bénéfice pour la période
190 771
13 779
Bénéfices par action
Bénéfices de base par action
5,87
0,44
Bénéfices dilués par action
5,73
0,44
AMG Advanced Metallurgical Group N.V.
État consolidé de la situation financière
En milliers de dollars américains
31 décembre 2022 Non audité
31 décembre 2021
Actifs
Biens, usine et équipement
797 611
693 624
Écarts d’acquisition et autres actifs incorporels
41 404
44 684
Instruments financiers dérivés
33 042
95
Autres investissements
29 324
29 830
Actifs fiscaux différés
37 181
52 937
Encaisse affectée
5 875
85 023
Autres actifs
8 612
8 471
Total des actifs non courants
953 049
914 664
Inventaires
277 311
218 320
Instruments financiers dérivés
3 516
4 056
Créances commerciales et autres créances
162 548
145 435
Autres actifs
121 834
65 066
Actifs fiscaux courants
7 289
5 888
Encaisse affectée
1 045
8 411
Trésorerie et équivalents de trésorerie
346 043
337 877
Total des actifs courants
919 586
785 053
Total des actifs
1,872 635
1,699 717
AMG Advanced Metallurgical Group N.V.
État consolidé de la situation financière
(suite)
En milliers de dollars américains
31 décembre 2022 Non audité
31 décembre 2021
Capitaux propres
Capital émis
853
853
Prime d’émission
553 715
553 715
Actions du Trésor
(14 685)
(16 596)
Autres réserves
(44 869)
(96 421)
Bénéfices non répartis (déficit)
(4 461)
(173 117)
Capitaux propres attribuables aux actionnaires de la Société
490 553
268 434
Participations minoritaires
27 296
25 718
Total des capitaux propres
517 849
294 152
Passifs
Prêts et emprunts
661 270
675 384
Dettes locatives
44 224
45 692
Avantages sociaux des employés
117 160
162 628
Provisions
12 361
14 298
Revenus différés
20 000
22 341
Autres passifs
15 009
11 098
Instruments financiers dérivés
284
2 064
Dettes fiscales différées
27 269
5 617
Total des passifs non courants
897 577
939 122
Prêts et emprunts
15 164
27 341
Dettes locatives
4 710
4 857
Dette bancaire à court terme
6 391
13 046
Revenus différés
28 277
18 478
Autres passifs
69 917
80 672
Dettes commerciales et autres dettes
240 101
252 765
Instruments financiers dérivés
7 746
6 010
Paiements anticipés des clients
51 054
35 091
Passif fiscal actuel
23 548
10 586
Provisions
10 301
17 597
Total des passifs courants
457 209
466 443
Total des passifs
1,354 786
1,405 565
Total des capitaux propres et des passifs
1,872 635
1,699 717
AMG Advanced Metallurgical Group N.V.
État consolidé des flux de trésorerie
Pour l’exercice clos le 31 décembre
En milliers de dollars américains
2022
2021
Non audité
Trésorerie provenant des activités d’exploitation
Bénéfice pour la période
190 771
13 779
Ajustements pour rapprocher le bénéfice net des flux de trésorerie nets :
Éléments non monétaires :
Charge d’impôt sur le revenu
84 097
8 707
Dotations aux amortissements et provisions sur immobilisations.
45 299
43 685
Dépenses liées à la dépréciation d’actifs (contrepassation)
10 597
(711)
Coût financier net
30 941
33 602
Part de perte d’associés et de coentreprises
1 250
1 053
Gain sur la vente ou l’élimination de biens, d’usines et d’équipements
(592)
(65)
Transactions de paiement fondés sur des actions et réglées en instruments de capitaux
5 552
10 028
Mouvement des provisions, retraites et subventions gouvernementales
(11 982)
(10 184)
Ajustements du fonds de roulement et des revenus différés1
(123 281)
22 747
Trésorerie générée par les activités d’exploitation
232 652
122 641
Coûts financiers payés, nets
(23 289)
(21 950)
Impôt sur le revenu payé
(41 796)
(9 903)
Trésorerie nette provenant des activités d’exploitation
167 567
90 788
Trésorerie utilisée dans les activités d’investissement
Produit de la vente de biens, d’usines et d’équipements
2 538
1 029
Acquisition de biens, d’usines, d’équipements et d’immobilisations incorporelles
(174 516)
(162 240)
Acquisitions de filiales
—
(458)
Investissements dans des associés et des coentreprises
(1 250)
(1 000)
Utilisation d’encaisse affectée
86 514
115 485
Intérêts perçus sur l’encaisse affectée
250
39
Coût d’emprunt capitalisé payé
(16 652)
(15 838)
Autre
12
30
Trésorerie nette utilisée dans les activités d’investissement
(103 104)
(62 953)
(1) Inclut les créances impayées liées aux crédits d’énergie à base de silicium
AMG Advanced Metallurgical Group N.V.
État consolidé des flux de trésorerie
(suite)
Pour l’exercice clos le 31 décembre
En milliers de dollars américains
2022
2021
Non audité
Trésorerie (consacrée à) provenant des activités de financement
Produit de l’émission de la dette
82
352 152
Paiement des frais de transaction liés à la dette
—
(7 630)
Remboursement des emprunts
(33 863)
(342 781)
Produit de l’émission d’actions ordinaires
—
123 627
Rachat net d’actions ordinaires
(1 523)
(2 058)
Dividendes versés
(19 885)
(7 598)
Paiement des passifs de location
(5 101)
(5 313)
Contributions avancées
11 000
—
Contributions des participations minoritaires
—
667
Trésorerie (consacrée à) provenant des activités de financement
(49 290)
111 066
Augmentation nette de la trésorerie et des équivalents de trésorerie
15 173
138 901
Trésorerie et équivalents de trésorerie au 1er janvier
337 877
207 366
Effet des fluctuations des taux de change sur les liquidités détenues
(7 007)
(8 390)
Trésorerie et équivalents de trésorerie au 31 décembre
346 043
337 877
Le présent communiqué de presse contient des informations privilégiées au sens de l’article 7, paragraphe 1 du Règlement de l’Union européenne (UE) sur les abus de marché.
Ce communiqué de presse contient des informations réglementées telles que définies dans la loi néerlandaise sur la supervision des marchés financiers (Wet op het financieel toezicht).
À propos d’AMG
AMG est une société mondiale de matériaux critiques à l’avant-garde des tendances de réduction du CO2. AMG produit des métaux et des produits de minerais spécialisés de haute technologie et fournit des systèmes et des services de fours à vide connexes aux marchés finaux des transports, des infrastructures, de l’énergie et des métaux et produits chimiques spécialisés.
Le segment Clean Energy Materials d’AMG combine les opérations de recyclage et d’exploitation minière d’AMG, et produit des matériaux pour les infrastructures et les solutions de stockage d’énergie tout en réduisant l’empreinte CO2 des fournisseurs et des clients. Le segment Clean Energy Materials d’AMG couvre les chaînes de valeur du vanadium, du lithium et du tantale. Le segment Critical Materials Technologies d’AMG combine la gamme de technologies des fours à vide leader d’AMG avec des matériaux d’excellente pureté au service des leaders mondiaux du secteur aérospatial. Le segment Critical Minerals d’AMG comprend les opérations de traitement des minerais d’antimoine, de graphite et de silicium métal d’AMG.
Employant un personnel d’environ 3 400 employés, AMG opère dans le monde entier. La Société exploite des sites de production en Allemagne, au Royaume-Uni, en France, aux États-Unis, en Chine, au Mexique, au Brésil, en Inde, au Sri Lanka et au Mozambique et dispose de bureaux de vente et de service à la clientèle au Japon. (www.amg-nv.com).
Pour plus d’informations, veuillez contacter :
AMG Advanced Metallurgical Group N.V. +1 610 975 4979
Certaines déclarations qui figurent dans le présent communiqué de presse ne sont pas des faits historiques et sont « prévisionnelles ». Les déclarations prévisionnelles comprennent des déclarations concernant les plans d’AMG, ses attentes, projections, objectifs, cibles, buts, stratégies, des événements futurs, ses revenus ou sa performances futurs/future, ses dépenses d’investissement, besoins de financement, plans et intentions relatifs à ses acquisitions, Les forces et faiblesses concurrentielles d’AMG, ses plans ou objectifs relatifs à la production prévue, ses réserves, sa situation financière et ses opérations et son développement futur(s), la stratégie commerciale d’AMG et les tendances qu’AMG anticipe dans les industries et l’environnement politique et juridique dans lequel la Société elle opère, ainsi que d’autres informations qui ne sont pas des informations historiques. Lorsqu’ils sont utilisés dans le présent communiqué de presse, les termes « s’attend à », « pense », « anticipe », « prévoit », « peut », « fera », « devrait » et autres expressions similaires, ainsi que leurs formes négatives, sont destinés à identifier les déclarations prévisionnelles. De par leur nature même, les déclarations prévisionnelles impliquent des risques et incertitudes inhérents, à la fois généraux et spécifiques, et les prédictions, prévisions, projections et autres déclarations prévisionnelles risquent de ne pas se réaliser. Ces déclarations prévisionnelles ne sont valables qu’à la date du présent communiqué de presse. AMG décline expressément toute obligation ou engagement de publier toute mise à jour ou révision des déclarations prévisionnelles contenues dans les présentes pour refléter tout changement dans les attentes d’AMG à leur égard ou tout changement dans les événements, conditions ou circonstances qui sont à la base des déclarations prévisionnelles.