AMG’s Lithium Operations Continue to Drive Record Earnings

Mai 3, 2023

Amsterdam, 3 May 2023 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported first quarter 2023 revenue of $451 million, a 12% increase versus the same period in 2022. First quarter 2023 EBITDA of $118 million was more than double the EBITDA of $55 million for the first three months of last year, and represents an all-time high for AMG’s quarterly EBITDA.

_{Note:
(1) EBITDA is defined as EBIT adjusted for depreciation and amortization.}

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “I am pleased to announce that AMG will change its name, subject to the approval of our shareholders in the upcoming Annual General Meeting, from AMG Advanced Metallurgical Group N.V. to AMG Critical Materials N.V. We have also achieved new record earnings and operating cash flow.

This is the third straight quarter in which AMG has exceeded $100 million of EBITDA. The $63 million, or 116%, EBITDA increase over the first quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $92 million.

AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.

The record results are due to our recent expansion projects. The profitability going forward is also driven by the strategic projects coming on stream in 2023 and 2024, in particular our lithium concentrate expansion and our first lithium hydroxide refinery module in Bitterfeld. We thereby confirm our guidance for 2023 to exceed $400 million in EBITDA.”

Strategic Highlights

Lithium

• The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
• AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
• Regarding its development of solid state battery materials, AMG Lithium GmbH has engaged in a joint production with Fraunhofer Institute, Münster University, Wacker, and Schunk to develop next generation solid-state batteries based on lithium-sulfur technology. AMG Lithium will provide lithium sulfide and solid electrolytes for this project.
• AMG has a 25% shareholding in Zinnwald Lithium PLC and is supporting the Zinnwald Board to accelerate the development of its lithium project in Eastern Germany.

Vanadium

• The new vanadium spent catalyst recycling facility in Zanesville, Ohio, continues to progress, with the roaster operating at its design capacity and the melt shop targeting full production capacity later in the second quarter of this year.
• AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are being executed as planned.
• AMG has completed the expansion of its vanadium oxide (“V₂O₅”) production in Nuremberg, either using gasification ash or spent catalyst as alternative feed. V₂O₅ is increasingly destined for the LIVA battery market.
• In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
• Shell & AMG Recycling B.V. (“SARBV”) continues to advance its projects in the Middle East including the first phase of the Supercenter project based on long-term supply agreements with ARAMCO. Front end engineering design for the first phase of the project, the conversion of gasification ash into V₂O₅, began in late 2022 and will be completed in the fourth quarter of 2023.

Financial Highlights

• Revenue increased by 12% to $451 million in the first quarter of 2023 from $404 million in the first quarter of 2022.
• EBITDA was $118 million in the first quarter of 2023, up 116% versus the first quarter 2022 EBITDA of $55 million.
• Annualized return on capital employed was 37.9% for the first quarter of 2023, compared to 19.8% for the first three months of 2022.
• Cash from operating activities was $93 million in the first quarter of 2023, an increase of $97 million over the same period in 2022.
• Net income attributable to shareholders for the first three months of 2023 was $56 million, yielding $1.72 diluted earnings per share compared to $0.89 for the same period in 2022.
• AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability.
• The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.

Key Figures

_Notes:

_{(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses.
(2) EBITDA is defined as EBIT adjusted for depreciation and amortization.}

Operational Review

AMG Clean Energy Materials

AMG Clean Energy Materials’ revenue increased 53% compared to the first quarter of 2022, to $219 million, driven mainly by higher prices in tantalum and lithium concentrates, as well as increased sales volumes of vanadium and tantalum concentrate.

Gross profit for the quarter increased 179% compared to the same period in the prior year, primarily due to the increased price environment.

SG&A expenses in the first quarter of 2023 were 23% higher than the same period in 2022, largely due to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects.

The first quarter 2023 EBITDA increased 185%, to $106 million, from $37 million in the first quarter of 2022, due to the improved gross profit as noted above.

During the first quarter of 2023, a total of 20,509 dry metric tons (“dmt”) of lithium concentrates was sold. The average realized sales price was $4,846/dmt CIF China for the quarter. The average cost per ton for the quarter was $338/dmt CIF China. This exceptional cost per ton result was driven by high sales volumes of tantalum concentrate in the quarter, and drove a quarterly EBITDA figure for AMG Brazil of $92 million.

AMG Critical Minerals

AMG Critical Minerals’ revenue for the first quarter of 2023 decreased by $44 million, or 41%, to $63 million, mainly due to lower volumes across the segment which was primarily driven by the silicon metal plant care and maintenance plan for the first two months of 2023 prior to restarting and operating one furnace in March discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.

Gross profit of $7 million in the first quarter was $6 million lower compared to the first quarter of 2022, largely due to the lower volumes in the first three months of this year.

SG&A expenses in the first quarter of 2023 decreased by 3%, to $7 million, compared to the same period in 2022. This was driven by lower personnel costs and variable compensation expense in the current quarter due to the interruptions in AMG Silicon’s operations earlier this quarter.

The first quarter 2023 EBITDA decreased 68% compared to the same period in 2022, to $3 million, due to the lower gross profit as noted above.

As of March 1, 2023, AMG’s silicon metal plant in Pocking, Germany, restarted operating one furnace. AMG Silicon is operating one furnace throughout the second quarter and plans to operate one furnace in the third quarter. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis and will be adjusted as appropriate in line with favorable and predictable market conditions. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $11 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022. The financial impact of the care and maintenance program does not significantly impact AMG’s overall projected 2023 financial results.

AMG Critical Materials Technologies

AMG Critical Materials Technologies’ first quarter 2023 revenue increased by $15 million, or 10%, compared to the same period in 2022. This improvement was driven by higher sales volumes of titanium alloys and chrome metal.

SG&A expenses increased by 3% in the first quarter of 2023 compared to the same period in 2022, due to an increase in personnel costs and higher variable compensation expense in the current quarter.

AMG Critical Materials Technologies’ EBITDA was $9 million during the quarter compared to $10 million in the same period of 2022. The slight decrease was due to lower sequential chrome prices in the first quarter, partially offset by stronger profitability from our Engineering business.

AMG Engineering signed $76 million in new orders during the first quarter of 2023, driven by strong orders of remelting, turbine blade and heat treatment furnaces, representing a 1.21x book to bill ratio. Order backlog was $237 million as of March 31, 2023, the highest since March 31, 2020.

Financial Review

Tax

AMG recorded an income tax expense of $36 million in the first quarter of 2023, compared to a tax benefit of $1 million in the first quarter of 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax expense in the first three months of 2023, compared to a $15 million benefit in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.

AMG paid taxes of $21 million in the first quarter of 2023, compared to tax payments of $4 million in the first quarter of 2022. The higher cash payments this quarter were largely a result of higher profitability in Brazil.

Exceptional Items

AMG’s first quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.

A summary of exceptional items included in gross profit in the first quarters of 2023 and 2022 are below:

Exceptional items included in gross profit

The asset impairment reversal during the first quarter of 2023 was due to an insurance recovery on previously impaired machinery and equipment.

SG&A

AMG’s first quarter 2023 SG&A expenses were $40 million compared to $37 million in the first quarter of 2022, with the increase largely attributable to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects in our Clean Energy Materials segment.

Liquidity

AMG ended the quarter in a $311 million net debt position. This decrease versus year-end 2022 was mainly due to $10 million of debt repayment and higher unrestricted cash of $14 million, offset by the utilization of restricted cash associated with the municipal bond.

AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2023, the Company had $360 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $555 million of total liquidity as of March 31, 2023.

Net Finance Costs

AMG’s first quarter 2023 net finance cost was $7 million compared to $9 million in the first quarter of 2022. This variance was mainly driven by foreign exchange gains of $2 million during the quarter primarily due to non-cash intergroup balances.

AMG capitalized $2 million of interest costs in the first quarter of 2023 versus $4 million in the same period in 2022. This decrease is mainly driven by the interest associated with the expansion projects in AMG Lithium and Brazil operations compared to a higher capitalized interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio in prior year.

Outlook

AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.

Regarding AMG’s 5-year guidance, the outstanding progress we have made with our strategic growth projects and given the compelling long-term supply and demand dynamics in the lithium market, we are issuing new guidance to achieve $650 million EBITDA, or more, in 5 years or earlier.

Profit for the period to adjusted EBITDA reconciliation

_{Notes:
(1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.}

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

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

About AMG

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

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• First Quarter 2023 Earnings PR

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

Mar 23, 2023

Amsterdam, 23 March 2023 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that Zinnwald Lithium Plc (« Zinnwald”) (ZNWD, AIM) will issue 118,996,738 newly issued ordinary shares to AMG for a total subscription amount of £12,387,560.40 resulting in a 25.13% shareholding.

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

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

About Zinnwald

Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.

About AMG

AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO₂ in aerospace engines, as well as critical materials addressing CO₂ reduction in a variety of other end use markets.

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• Shareholding in Zinnwald

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

Mar 22, 2023

Amsterdam, 22 March 2023 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that it has agreed with Zinnwald Lithium Plc (« Zinnwald”) (ZNWD, AIM) to subscribe for up to 124 million newly issued ordinary shares as a cornerstone investor to Zinnwald’s accelerated book build. The shares will be subscribed for at a 10% premium to the 20-day Volume Weighted Average Price (“VWAP”) as of the close of market on March 20, 2023, that is, a price of 10.41 pence per share. Upon admission of the newly issued ordinary shares, expected on March 29, AMG will become a 25% shareholder of Zinnwald.

Dr. Heinz Schimmelbusch, AMG’s CEO, commented, “AMG’s investment in Zinnwald is a valuable strategic opportunity. As a partner with Zinnwald, together we will pursue a definitive feasibility study for their project in Eastern Germany. Establishing a raw material base in Germany close to our Bitterfeld operations has obvious logistical and strategic benefits for AMG, and we look forward to working with Zinnwald on this exciting project.”

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

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

About Zinnwald

Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.

About AMG

AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO₂ in aerospace engines, as well as critical materials addressing CO₂ reduction in a variety of other end use markets.

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• Shareholding in Zinnwald Lithium Plc

Grâce à ses opérations au lithium à faible coût, AMG réalise des bénéfices record sur l’ensemble de l’année

Fév 22, 2023

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.

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

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

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

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

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

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

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      

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.

_{(1) Inclut les créances impayées liées aux crédits d’énergie à base de silicium}

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

Michele Fischer

mfischer@amg-nv.com

Clause de non-responsabilité

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.

Attachment

• Fourth Quarter & Full Year 2022 Earnings Release

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

Déc 22, 2022

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

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

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

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

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

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

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

About AMG

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

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

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

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• AMG Tantalum Strategic Partnership

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

Nov 2, 2022

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

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

Outlook

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

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

Strategic Highlights

Lithium

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

Vanadium

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

Financial Highlights

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

Key Figures

Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses.
(2) EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Clean Energy Materials

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

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

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

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

AMG Critical Minerals

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

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

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

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

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

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

AMG Critical Materials Technologies

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

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

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

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

Financial Review

Tax

AMG recorded an income tax expense of $39 million in the third quarter of 2022, compared to $10 million in the same period in 2021. This variance was mainly driven by enhanced operating results coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $2 million deferred tax benefit in the third quarter of 2022 (2021: $8 million tax expense). Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.

AMG paid taxes of $10 million in the third quarter of 2022, compared to tax payments of $4 million in the third quarter of 2021.

Exceptional Items

AMG’s third quarter 2022 gross profit includes exceptional items, which are not included in the calculation of EBITDA.

A summary of exceptional items included in gross profit in the third quarters of 2022 and 2021 are below:

Exceptional items included in gross profit

Energy Costs

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

SG&A

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

Net Other Operating Income

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

Liquidity

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

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

Net Finance Costs

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

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

Profit (loss) for the period to EBITDA reconciliation

(1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.

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

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

About AMG

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

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

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

For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• Third Quarter 2022 Earnings Release

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

Sep 6, 2022

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

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

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

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

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

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

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

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

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

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• AMG Lithium Announcement September 6 2022 Final PDF

AMG Advanced Metallurgical Group N.V. Announces Interim Dividend

Juil 28, 2022

Amsterdam, 28 July 2022 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) declares an interim dividend of €0.30 per ordinary share, from an interim dividend of €0.10 per ordinary share in the prior year.

The interim dividend of €0.30 per ordinary share, in respect of the period from January 1, 2022 to June 30, 2022, is payable on August 10, 2022 to shareholders of record as of August 2, 2022. The ex-dividend date will be August 1, 2022. 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 is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

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

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• Interim Dividend July 2022 PR

AMG Advanced Metallurgical Group N.V. Reports Record Earnings for Second Quarter 2022

Juil 28, 2022

Strategic Highlights

• Construction and commissioning of the new vanadium spent catalyst recycling facility in Zanesville, Ohio is proceeding as planned. The roaster is fully operational, and the entire plant is expected to be at run-rate capacity by the end of the fourth quarter of 2022.
• The project to expand the spodumene production in AMG Brazil is on time and on budget. The objective is to be in full production in the second half of 2023 or earlier.
• AMG Lithium has started construction of the first European lithium refinery, and commissioning for the first module of the battery-grade lithium hydroxide upgrader will commence in the second half of 2023.
• AMG’s first lithium vanadium battery (“LIVA”) for industrial power management applications is proceeding as planned and the objective is to be fully operational in the fourth quarter of 2022.
• Shell & AMG Recycling B.V. (“SARBV”) and its partner, the United Company for Industry (“UCI”), have signed an agreement with Saudi Arabian Oil Company (“Aramco”). Basic engineering has begun on the first of four projects to build, own and operate a conversion plant of vanadium-containing gasification ash supplied by Aramco into vanadium oxide and vanadium electrolyte.

Financial Highlights

• Revenue increased by 42% to $424.1 million in the second quarter of 2022 from $298.4 million in the second quarter of 2021.
• EBITDA was $81.1 million in the second quarter of 2022, up 158% versus the second quarter 2021 EBITDA of $31.4 million, marking the highest six-month and quarterly EBITDA in AMG’s history and its eighth straight quarter of sequential improvement.
• Annualized return on capital employed was 25.5% for the first six months of 2022, more than double the 10.0% for the same period in 2021.
• Net income to shareholders for the second quarter of 2022 was $29.6 million, yielding 91 cents diluted earnings per share, compared to $3.6 million of net income to shareholders in the same period in the prior year and 11 cents diluted earnings per share.
• AMG’s liquidity as of June 30, 2022, was $476 million, with $301 million of unrestricted cash and $175 million of revolving credit availability.
• AMG declares an interim dividend of €0.30 per ordinary share, to be paid in the third quarter of 2022.

Amsterdam, 28 July 2022 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported second quarter 2022 revenue of $424.1 million, a 42% increase versus the second quarter of 2021. EBITDA for the second quarter of 2022 was $81.1 million, a 158% increase versus the second quarter of 2021. This also marks the eighth straight quarter of sequential growth after the pandemic low point in the second quarter of 2020.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG generated the highest quarterly EBITDA in our history in the second quarter of 2022. EBITDA for the second quarter of 2022 was $81 million, up 158% from the same period in 2021, and 48% higher than the first quarter of 2022. This outstanding result is mainly driven by our AMG Clean Energy Materials segment, where strong lithium prices lead to improved profitability in AMG Brazil, as well as by increased aerospace activity within our AMG Critical Materials Technologies segment.

“All of AMG’s strategic projects cluster in our AMG Clean Energy Materials segment and all of these projects are proceeding as planned. Each of these projects is oriented toward growing our production of electricity storage materials or increasing our footprint in the circular economy.

1. Commissioning has started at the Zanesville, Ohio, spent catalyst recycling facility. The roasting plant has reached its design capacity and is presently undergoing the final performance test. The “melt shop” is starting its commissioning process. With this new recycling plant, AMG solidifies its position as the world leader in the recycling of refinery waste. We are pleased to announce that large scale shipments of refinery waste from overseas have started.
2. The expansion project of AMG Brazil’s lithium concentrate production is proceeding as planned and the production is fully sold at market price via long-term contracts.
3. AMG Lithium has begun construction of the first European lithium refinery. The first module of the battery-grade lithium hydroxide upgrader will commence commissioning in the second half of 2023.
4. AMG’s first lithium vanadium battery (“LIVA”) for industrial power management applications has begun commissioning.
5. SARBV and UCI recently signed agreements in the Kingdom of Saudi Arabia. The joint venture plans to execute four distinct projects under an entity currently being formed, Advanced Circular Materials Company (“ACMC”):
   1. Build, own and operate a conversion plant of vanadium-containing gasification ash into vanadium oxide and vanadium electrolyte for redox flow batteries;
   2. A spent catalyst recycling facility;
   3. A fresh catalyst R&D laboratory;
   4. Mass energy storage facilities (vanadium redox flow battery manufacturing).

Basic engineering for the first project has begun and it will lay the foundation for all other projects with the Supercenter. It will produce and sell high-purity vanadium oxide and vanadium electrolyte. This is the largest such project in the world and is under long-term market-based contracts with Aramco. The materials this project will produce are destined to feed the emerging vanadium redox flow battery market.

“We are extremely pleased to announce the accomplishments of these strategic projects along with the best quarterly results in the history of the Company.”

Key Figures

Notes:

(1)   EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses, equity-settled share-based payments, and strategic expenses.
(2)   EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Clean Energy Materials

AMG Clean Energy Materials’ revenue increased 77% compared to the second quarter of 2021, to $159.8 million, driven mainly by higher prices in vanadium, tantalum and lithium concentrates. Sales volumes were down due to shipping schedule variances from AMG Brazil and maintenance downtime at our Cambridge facility.

Gross profit before non-recurring items for the quarter increased 282% compared to the same period in the prior year, primarily due to the increased price environment.

SG&A expenses in the second quarter of 2022 were $11.1 million, $1.6 million higher than the second quarter of 2021, largely due to higher share-based and variable compensation expense.

The second quarter 2022 EBITDA increased 364%, to $58.2 million, from $12.6 million in the second quarter of 2021, due to the improved gross profit as noted above.

AMG Critical Minerals

AMG Critical Minerals’ revenue increased by $26.6 million, or 35%, to $103.4 million, driven by strong sales volumes of antimony and graphite as well as higher sales prices in silicon and antimony.

Gross profit before non-recurring items of $14.0 million in the second quarter was $0.6 million higher compared to the second quarter of 2021. The higher revenue was due to the improved pricing and higher sales volumes noted above and was offset by increased raw material prices as well as the ongoing rise in energy and shipping costs.

SG&A expenses in the second quarter of 2022 slightly increased by 2%, to $7.0 million, compared to the same period in 2021.

The second quarter 2022 EBITDA was consistent with the same period in the prior year despite ongoing inflationary pressures including energy and shipping cost increases.

AMG Critical Materials Technologies

AMG Critical Materials Technologies’ second quarter 2022 revenue increased by $29.5 million, or 22%, compared to the same period in 2021. This improvement was due to increased titanium alloys sales, as well as higher chrome metal pricing associated with improving conditions in the aerospace sector. Second quarter 2022 gross profit before non-recurring items increased by $6.4 million, or 30%, to $27.4 million due to the higher volumes and prices.

SG&A expenses increased by $2.1 million in the second quarter of 2022 compared to the same period in 2021, mainly driven by higher share-based and variable compensation expense and higher professional fees in the current quarter.

AMG Critical Materials Technologies’ EBITDA increased to $13.8 million during the quarter, compared to $9.6 million in the second quarter of 2021. This was primarily due to higher profitability in chrome metal and titanium alloys.

AMG Engineering signed $59.8 million in new orders during the second quarter of 2022, driven by strong orders of induction furnaces, representing a 1.10x book to bill ratio. Order backlog was $181.0 million as of June 30, 2022, slightly lower than the $183.5 million as of March 31, 2022.

Financial Review

Tax

AMG recorded an income tax expense of $23.2 million in the second quarter of 2022, compared to an income tax benefit of $5.6 million in the same period in 2021. This variance was mainly driven by higher pre-tax income compared to the prior period and movements in the Brazilian real versus the US dollar. The effects of the Brazilian real caused a $3.8 million non-cash tax expense in the second quarter of 2022 compared to a $12.4 million non-cash tax benefit in the second quarter of 2021. Movements 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 $9.1 million in the second quarter of 2022, compared to tax payments of $2.5 million in the second quarter of 2021.

Exceptional Items

AMG’s second quarter 2022 gross profit includes exceptional items, which are not included in the calculation of EBITDA.

A summary of exceptional items included in gross profit in the second quarters of 2022 and 2021 are below:

Exceptional items included in gross profit

Energy Costs

Total energy costs were $9.9 million higher in the second quarter of 2022 versus the same period in 2021 due to significant increases in gas and electricity costs during the quarter. The majority of this increase was at our silicon business in Germany, but that business benefited from fully hedged power costs. Other business units benefited from long-term electricity contracts that have no price escalation clauses, and the business units that did experience energy cost increases were able to pass through most of these increased costs to their customers.

SG&A

AMG’s second quarter 2022 SG&A expenses were $37.0 million compared to $33.2 million in the second quarter of 2021, with the variance largely driven by higher compensation expense due to higher profitability forecasted for the year and increased professional fees associated with strategic projects.

Liquidity

AMG had a net debt position of $364.8 million as of June 30, 2022. This increase was mainly due to the significant investment in growth initiatives during the quarter.

AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the second quarter. Employee benefit liabilities decreased $55 million during the quarter to $108 million mainly due to rising discount rates. This decrease in employee benefit liabilities combined with AMG’s higher earnings have increased our equity attributable to shareholders to $357 million, a 33% increase over the year-end value.

As of June 30, 2022, the Company had $301 million in unrestricted cash and cash equivalents and $175 million available on its revolving credit facility. As such, AMG had $476 million of total liquidity as of June 30, 2022.

Net Finance Costs

AMG’s second quarter 2022 net finance costs were $12.2 million compared to $4.8 million in the second quarter of 2021. This increase was mainly driven by non-cash intergroup related foreign exchange losses of $7.5 million during the quarter.

AMG capitalized $2.1 million of interest costs in the second quarter of 2022 versus $3.8 million in the same period in 2021, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio. This decrease is due to a portion of the municipal bond interest costs which are no longer being capitalized due to the ramp up of production at our Zanesville facility.

Outlook

AMG continues to provide strong and consistent results despite the global economic fallout from the geopolitical turbulence in recent months. We are continuing to focus on the things we can control and are extremely pleased with the noted achievements in our strategic initiatives which will drive long-term value creation. EBITDA was $81.1 million in the second quarter of 2022, the highest quarterly EBITDA in AMG’s history. As mentioned, it was the eighth straight quarter of sequential improvement.

As the year has progressed and more information is available, AMG is increasing its EBITDA guidance for the full year 2022 to a range of between $280 million and $300 million. This range is supported by AMG’s geographic diversification and the strength of the global lithium market.

Net income to EBITDA reconciliation

(1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.

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

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

About AMG

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

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

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

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• Second Quarter 2022 PR

AMG Advanced Metallurgical Group N.V. Announces Results of the Annual General Meeting

Mai 5, 2022

Amsterdam, 5 May 2022 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during its Annual General Meeting held virtually on May 5, 2022, shareholders approved all agenda items presented, including the reappointment of Dr. Donatella Ceccarelli as an independent member of the Supervisory Board for a term of two years beginning May 5, 2022.

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

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

About AMG

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

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

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

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

Attachment

• AMG Announces Results of the AGM