Amsterdam, 21 February 2024(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported record-setting adjusted EBITDA $350 million in 2023, due largely to strong profitability in our lithium and vanadium businesses. Fourth quarter 2023 revenue was $367 million, a 6% decrease versus the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA of $71 million decreased 32% compared to the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG’s history, and 33% higher than the $168 million in 2022.
In 000’s US dollars
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$367,235
$390,004
(6%)
$1,625,861
$1,642,774
(1%)
Adjusted EBITDA (1)
71,142
104,061
(32%)
350,491
342,550
2%
Cash from operating activities
44,704
56,969
(22%)
223,000
167,567
33%
Return on Capital Employed
26.3%
30.8%
26.3%
30.8%
Note: (1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG has achieved the highest adjusted EBITDA in its 16 year history with $350 million for the full year 2023. Market conditions for all products within our portfolio substantially weakened as the year progressed. The 32% decrease in adjusted EBITDA compared to the fourth quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium decreased over 76% and 26%, respectively, versus the average pricing in the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG’s history, and 33% higher than the $168 million in 2022. We were $38 million free cash flow positive for the year despite investing $169 million in capital projects as well as acquiring a 25% stake in Zinnwald in 2023. This underscores our low-cost position in both lithium and vanadium. We ended the year in a $323 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023. AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $350 million in new orders during 2023, the highest full year order intake in AMG’s history, and 24% higher than in 2022. This record order intake was driven by strong orders of remelting and heat treatment furnaces, representing a 1.27x book to bill ratio. AMG’s order backlog was $295 million as of December 31, 2023.
Through its critical materials science-based solutions, AMG, as its mission, seeks to contribute to CO2 reduction by way of “enabling” its customers to increase the efficiency of renewable energy production, and to “enable” energy saving strategies. We measure the enabled contribution to CO2 reduction at our customer level via stringent third-party developed life cycle assessments. We based this mission on the belief that in this obviously high growth environment, we could achieve both above average financial returns and use our proprietary technologies to be at the forefront of the industrial contribution to atmospheric CO2 reduction. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2023 enabled 110.3 million tons of CO2 reduction, 11% more than the 99.4 million tons of enabled CO2 reduction in 2022.”
Lithium
In Brazil, our lithium concentrate plant will temporarily stop production for the change-over period in March 2024 in order to facilitate the expansion from 90,000 tons to 130,000 tons. We expect to produce 93,000 tons for the full year of 2024 and will operate at the full expanded capacity rate, or 130,000 tons per year, in the fourth quarter of 2024.
AMG’s lithium hydroxide refinery’s first 20,000-ton module in Bitterfeld, Germany, is in advanced phases of commissioning, and the product qualification process is planned to start in the third quarter of 2024.
Vanadium
The Zanesville, Ohio facility exceeded our target production volumes in the fourth quarter of 2023. The production from both the roasting operation and the melt shop exceeded historical averages achieved by the Cambridge, Ohio operation.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualified for Section 45X effective from 2023 onwards, which provides a production credit for domestic manufacturing of critical materials. Based on preliminary regulations as issued by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. The ruling is still in the comment period and, as such, is subject to a final determination.
AMG’s innovative lithium vanadium battery (“LIVA”) projects are integral for industrial power management applications and accelerate the energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are currently under contract and being engineered, and 15 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 749 MWh.
AMG LIVA has agreed to acquire the Vanadium Redox Flow Battery (“VRFB”) activities from J.M. VOITH SE & CO. KG (“VOITH”). VOITH has developed an advanced technology for controlling and balancing large-scale high-voltage VRFB energy storage systems. The technology complements LIVA’s VRFB system development. LIVA will continue to develop the technology and integrate it into its large-scale energy storage systems.
The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. We expect to have nameplate capacity available by the second half of 2024.
AMG Vanadium has acquired the processing technologies and IP related activities from Transformation Technologies Inc. (“TTI”), a US company based in Oregon. This unique thermal treatment of spent catalyst and other oil refinery wastes into valuable products is complementary to AMG’s existing spent catalyst processing technology and know-how. AMG will integrate the TTI technology into its global strategic growth initiatives conducted through Shell & AMG Recycling (“SARBV”).
SARBV’s “Supercenter” project in the Middle East is a facility to produce high-purity vanadium oxides for applications such as chemicals and aerospace as well as vanadium electrolyte for the long duration energy storage market in the Kingdom of Saudi Arabia. The facility will operate under a long-term supply contract with Saudi Aramco for vanadium-containing gasification ash from its power plants in the Kingdom. For illustration purposes, Phase 1 of the Supercenter plans to produce 8 million pounds of vanadium oxide from 7,000 metric tons of gasification ash located at a site in Jubail, Kingdom of Saudi Arabia. The FEL3 basic engineering has been submitted. The full Supercenter project will also include the processing of spent catalysts, a Fresh Catalyst R&D facility and a LIVA Hybrid Energy Storage System.
Financial Highlights
AMG’s full year 2023 adjusted EBITDA was a record-setting $350 million due largely to high profitability in our lithium and vanadium businesses, offset by lower profit in AMG Critical Minerals.
Cash from operating activities was $223 million in 2023, compared to $168 million in 2022, largely driven by the lithium and vanadium expansion projects as well as strong cash flows from our Silicon business driven by energy sales.
AMG’s free cash flow(1) was $38 million in 2023.
AMG’s liquidity as of December 31, 2023 was $540 million, with $345 million of unrestricted cash and $195 million of revolving credit availability.
Annualized return on capital employed was 26.3% for 2023, compared to 30.8% in 2022.
AMG Engineering signed $350 million in new orders during 2023, the highest in AMG’s history and 24% higher than in 2022.
The total 2023 dividend proposed is €0.60 per ordinary share, including the interim dividend of €0.40, paid on August 9, 2023.
Note: (1) Free cash flow is defined as cash flows from operating activities less cash flows used in investing activities.
Key Figures
In 000’s US dollars
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$367,235
$390,004
(6%)
$1,625,861
$1,642,774
(1%)
Gross profit
55,252
119,981
(54%)
389,431
409,486
(5%)
Gross margin
15.0%
30.8%
24.0%
24.9%
Operating profit
19,503
82,319
(76%)
221,752
307,059
(28%)
Operating margin
5.3%
21.1%
13.6%
18.7%
Net income attributable to shareholders
2,173
60,697
(96%)
101,320
187,589
(46%)
EPS – Fully diluted
0.07
1.85
(96%)
3.12
5.73
(46%)
EBIT (1)
56,706
91,719
(38%)
295,855
297,251
—%
Adjusted EBITDA (2)
71,142
104,061
(32%)
350,491
342,550
2%
Adjusted EBITDA margin
19.4%
26.7%
21.6%
20.9%
Cash from operating activities
44,704
56,969
(22%)
223,000
167,567
33%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$157,594
$176,065
(10%)
$725,505
$667,804
9%
Gross profit
35,112
81,583
(57%)
274,387
267,862
2%
Operating profit
28,576
69,779
(59%)
217,309
222,590
(2%)
Adjusted EBITDA
55,924
80,347
(30%)
297,190
259,480
15%
AMG Clean Energy Materials’ revenue decreased 10% compared to the fourth quarter of 2022, to $158 million, driven mainly by the 76% and 26% decrease in prices for lithium carbonate and ferrovanadium, respectively, since the fourth quarter of 2022. This price decrease was partially offset by increased volumes in vanadium and lithium. Higher average annual prices for spodumene as well as higher sales volumes of vanadium, lithium concentrate, and tantalum propelled revenue for the segment 9% higher on a full year basis. In 2023, ferrovanadium and tantalum concentrate sales increased 45% and 56%, respectively, versus the prior year.
Gross profit for the quarter decreased 57% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver was the lithium price decline, which fell 76% since the fourth quarter of 2022. Full year gross profit increased 2% compared to 2022, due to the higher prices and volumes noted above.
SG&A expenses of $67 million in 2023 were 47% higher than in 2022, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs, professional fees and research and development costs.
The fourth quarter 2023 adjusted EBITDA decreased 30%, to $56 million, from $80 million in the fourth quarter of 2022, due to the decline in metal prices as noted above. Full year 2023 adjusted EBITDA, however, was 15% higher than in 2022, driven by higher prices and higher volumes as well as the incremental dividend noted below.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualifies for Section 45X which provides a production credit for domestic manufacturing of critical materials from 2023 onwards. Based on preliminary regulations as issued by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. This subsidy is included in gross profit. The ruling is still in the comment period and, as such, is subject to a final determination.
AMG received a $10 million dividend from an equity investment which is included in adjusted EBITDA.
During the fourth quarter of 2023, a total of 29,706 dry metric tons (“dmt”) of lithium concentrates were sold, 39% higher than the 21,329 dmt in the fourth quarter of 2022 due to shipping variances in 2023. The average realized sales price was $1,943/dmt CIF China for the quarter. The average cost per ton for the quarter was $498/dmt CIF China.
During 2023, a total of 95,097 dry metric tons (“dmt”) of lithium concentrates were sold, an increase of 8,384 dmt versus 2022. The average realized sales price for 2023 was $3,160/dmt CIF China, an increase of $355/dmt over 2022. The average cost per ton for 2023 was $475/dmt CIF China.
It is important to note that fourth quarter pricing benefited from the timing lag experienced related to the contractual pricing agreements with our lithium concentrate customers. The prices of lithium concentrate and lithium carbonate have declined 56% and 41%, respectively, since the end of the third quarter 2023.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. AMG is one of the lowest cost lithium concentrate mines in the world and we plan to maintain that position.
AMG Critical Minerals
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$54,903
$69,242
(21%)
$227,696
$364,502
(38%)
Gross (loss) profit
(6)
19,017
N/A
21,953
46,721
(53%)
Operating (loss) profit
(7,407)
10,961
N/A
(6,872)
63,995
N/A
Adjusted EBITDA
1,618
14,001
(88%)
6,947
38,280
(82%)
AMG Critical Minerals’ revenue for the fourth quarter of 2023 decreased by 21%, to $55 million, mainly due to lower volumes largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit in the fourth quarter of 2023 was $19 million lower compared to the same period in 2022, largely due to lower volumes in silicon and antimony in the current quarter.
SG&A expenses in 2023 of $29 million were 4% higher than in 2022 related to an increase in professional fees during the fourth quarter.
The fourth quarter 2023 adjusted EBITDA decreased 88% compared to the same period in 2022, to $2 million, largely driven by the silicon metal plant as well as the slowdown in the end-use markets for the segment in the current quarter. As a result, full year 2023 adjusted EBITDA decreased to $7 million from $38 million in the prior year.
AMG Silicon operated one of four furnaces in the fourth quarter of 2023. We plan to run two of four furnaces for the remainder of 2024. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon’s operations, the financial impact of the business will be excluded from adjusted EBITDA during this period of abnormal operations. However, AMG Silicon generated $26 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Revenue
$154,738
$144,697
7%
$672,660
$610,468
10%
Gross profit
20,146
19,381
4%
93,091
94,903
(2%)
Operating (loss) profit
(1,666)
1,579
N/A
11,315
20,474
(45%)
Adjusted EBITDA
13,600
9,713
40%
46,354
44,790
3%
AMG Critical Materials Technologies’ fourth quarter 2023 revenue increased by $10 million, or 7%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of chrome metal and higher sales prices of titanium alloys, partially offset by lower chrome metal pricing. Revenue for the segment in 2023 increased 10% compared to prior year.
SG&A expenses increased by 10% in 2023 compared to 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the increased order backlog and business development, respectively.
AMG Critical Materials Technologies’ adjusted EBITDA was $14 million during the fourth quarter, 40% higher than in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the fourth quarter of 2023.
AMG Engineering signed $27 million in new orders during the fourth quarter of 2023. On a full year basis, AMG signed a record high of $350 million in new orders during 2023, 24% higher than in 2022, representing a 1.27x book to bill ratio. The 2023 order intake was driven by strong orders of remelting and heat treatment furnaces. Order backlog was $295 million as of December 31, 2023.
Financial Review
Tax
AMG recorded an income tax expense of $95 million in 2023, compared to $84 million in 2022. This variance was due to negative movements in the Brazilian real in 2023 as compared to 2022 as well as non-cash deferred tax expenses related to the derecognition of certain tax assets. These tax assets were associated with interest expense carryforwards in our US business as well as loss carryforwards in our German business. These deferred tax expenses were partially offset by the lower profitability in the current quarter relative to the same period in the prior year.
AMG paid taxes of $103 million in 2023, compared to tax payments of $42 million in 2022. The higher cash payments in 2023 were largely a result of the timing lag related to Brazil’s strong performance in late 2022 through the second quarter of 2023.
Exceptional Items
AMG’s fourth quarter and full year 2023 gross profit includes exceptional items, which are not included in the calculation of adjusted EBITDA.
A summary of exceptional items included in gross profit in 2023 and 2022 are below:
Exceptional items included in gross profit
Q4 ‘23
Q4 ‘22
Change
FY ‘23
FY ‘22
Change
Gross profit
$55,252
$119,981
(54%)
$389,431
$409,486
(5%)
Inventory cost adjustment
15,260
1,589
860%
26,731
1,589
1,582%
Restructuring expense
6,115
389
1,472%
9,223
582
1,485%
Asset impairment expense (reversal)
9,585
(990)
N/A
8,818
10,597
(17%)
Silicon’s partial closure
(1,854)
—
N/A
(4,502)
—
N/A
Strategic project expense
107
1,201
(91%)
511
5,540
(91%)
Gross profit excluding exceptional items
84,465
122,170
(31%)
430,212
427,794
1%
AMG had $15 million non-cash expense during the fourth quarter of 2023 mainly driven by Lithium GmbH’s inventory cost adjustment of purchased lithium hydroxide which has been excluded in the calculation of adjusted EBITDA.
In mid 2023, AMG initiated a restructuring program to improve efficiencies and reduce headcount. The largest restructuring expenses are in AMG Titanium with $4 million, and in AMG Graphite with a restructuring expense of $1 million in the fourth quarter of 2023.
As a result of the restructuring program, certain non-core assets were also impacted. Asset impairments were recorded due to the retirement of these assets in the fourth quarter of 2023 at AMG Titanium and AMG Graphite of $3 million and $7 million, respectively.
SG&A
AMG’s fourth quarter 2023 SG&A expenses were $46 million compared to $37 million in the fourth quarter of 2022, with the increase largely due to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Full year 2023 SG&A expenses were $178 million, 20% higher than in 2022, due to increased professional fees associated with strategic projects during 2023 as well as higher personnel costs attributable to increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
December 31, 2023
December 31, 2022
Change
Senior secured debt
$337,402
$348,622
(3%)
Cash & cash equivalents
345,308
346,043
—%
Senior secured net (cash) debt
(7,906)
2,579
N/A
Other debt
13,105
14,959
(12%)
Net debt excluding municipal bond
5,199
17,538
(70%)
Municipal bond debt
319,002
319,244
—%
Restricted cash
1,451
6,920
(79%)
Net debt
322,750
329,862
(2%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023.
Net Finance Costs
AMG’s fourth quarter 2023 net finance income was $2 million compared to $4 million of income in the fourth quarter of 2022. This decrease was mainly driven by lower capitalization of interest expense now that the Zanesville plant is fully operational.
Final Dividend Proposal
AMG intends to declare a dividend of €0.60 per ordinary share over the financial year 2023. The interim dividend of €0.40, paid on August 9, 2023, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.20.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 8, 2024.
Outlook
Our ongoing cost reduction and efficiency programs will reduce our headcount by approximately 200 which will essentially be offset by the ramp-up of our expansions in Germany and Brazil, as well as the growth in our LIVA and Engineering businesses.
Capital expenditures for 2024 are expected to be approximately $125 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.
AMG has no expected financing needs in 2024. AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $540 million can fully fund all of the approved capital expansion projects and all other financial obligations.
AMG’s two main lithium expansion projects are heading towards completion: our lithium concentrate expansion project from 90,000 tons to 130,000 tons in Brazil and module 1 of our lithium hydroxide refinery in Germany. We are reviewing our resource development projects and all other expansion activities in light of the present market conditions.
Regarding 2024 outlook, from the lithium concentrate and lithium carbonate market price highs in November 2022 of $6,110 per ton and $84,062 per ton, respectively, prices have each declined by 84%.
On November 8, 2023, we indicated an adjusted EBITDA for 2024 of approximately $200 million excluding any profitability from our Bitterfeld lithium hydroxide refinery and utilizing contemporary pricing. Since then, market prices for spodumene and lithium carbonate have declined 50% and 39%, respectively. Utilizing today’s price levels, lithium profitability will be $60 million lower and vanadium profitability will be $10 million lower, therefore AMG’s 2024 adjusted EBITDA will be approximately $130 million.
Our analysis of the long-term supply and demand trends in lithium gives us confidence that the present low prices are unsustainable.
Segmental Realignment
The Company has changed its organizational structure effective January 1, 2024, and will therefore report financials for the new segments starting in the first quarter of 2024. This change results in three reporting segments: AMG Lithium, AMG Vanadium, and AMG Technologies. Each of these segments have very specific trends and business models, and require very different management skill sets.
AMG’s 2023 pro forma segmental information for AMG Lithium, AMG Vanadium, and AMG Technologies is shown below:
AMG Lithium
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$130,668
$133,473
$62,346
$82,085
$408,572
Gross profit
92,013
90,006
26,769
20,569
229,357
Operating profit
83,589
79,904
16,390
7,900
187,783
Adjusted EBITDA
89,799
86,345
29,638
30,758
236,540
AMG Vanadium
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$194,280
$180,870
$174,436
$161,652
$711,238
Gross profit
26,424
17,227
17,182
16,237
77,070
Operating profit (loss)
13,103
(3,217)
3,539
13,524
26,949
Adjusted EBITDA
20,331
15,693
15,067
29,520
80,611
AMG Technologies
Q1 ‘23
Q2 ‘23
Q3 ‘23
Q4 ‘23
FY ‘23
Revenue
$125,642
$124,976
$131,935
$123,498
$506,051
Gross profit
21,405
20,301
22,852
18,446
83,004
Operating profit (loss)
3,331
1,480
4,130
(1,921)
7,020
Adjusted EBITDA
7,981
5,415
9,080
10,864
33,340
Profit for the period to adjusted EBITDA reconciliation
Q4 ‘23
Q4 ‘22
FY ‘23
FY ‘22
Profit for the period
$1,266
$62,669
$102,288
$190,771
Income tax expense
19,958
23,827
95,002
84,097
Net finance (income) cost
(2,455)
(4,177)
20,739
30,941
Equity-settled share-based payment transactions
1,443
1,414
5,799
5,552
Restructuring expense
6,115
389
9,223
582
Pension adjustment
(1,410)
—
5,290
—
Net contract settlements
—
971
—
(45,436)
Silicon’s partial closure
(966)
—
(1,520)
—
Inventory cost adjustment
15,260
1,589
26,731
1,589
Asset impairment expense (reversal)
9,585
(990)
8,818
10,597
Strategic project expense (1)
6,777
5,885
19,179
17,070
Share of loss of associates
734
—
3,723
1,250
Others
399
142
583
238
EBIT
56,706
91,719
295,855
297,251
Depreciation and amortization
14,436
12,342
54,636
45,299
Adjusted EBITDA
71,142
104,061
350,491
342,550
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Consolidated Income Statement
For the quarter ended December 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
367,235
390,004
Cost of sales
(311,983)
(270,023)
Gross profit
55,252
119,981
Selling, general and administrative expenses
(45,582)
(36,579)
Other expenses
(313)
(1,083)
Other income
10,146
—
Net other operating income (expense)
9,833
(1,083)
Operating profit
19,503
82,319
Finance income
15,222
5,459
Finance cost
(12,767)
(1,282)
Net finance income
2,455
4,177
Share of loss of associates and joint ventures
(734)
—
Profit before income tax
21,224
86,496
Income tax expense
(19,958)
(23,827)
Profit for the period
1,266
62,669
Profit attributable to:
Shareholders of the Company
2,173
60,697
Non-controlling interests
(907)
1,972
Profit for the period
1,266
62,669
Basic earnings per share
Basic earnings per share
0.07
1.90
Diluted earnings per share
0.07
1.85
AMG Critical Materials N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Continuing operations
Revenue
1,625,861
1,642,774
Cost of sales
(1,236,430)
(1,233,288)
Gross profit
389,431
409,486
Selling, general and administrative expenses
(178,162)
(147,963)
Other expenses
(313)
(14,544)
Other income
10,796
60,080
Net other operating income
10,483
45,536
Operating profit
221,752
307,059
Finance income
28,989
9,061
Finance cost
(49,728)
(40,002)
Net finance cost
(20,739)
(30,941)
Share of loss of associates and joint ventures
(3,723)
(1,250)
Profit before income tax
197,290
274,868
Income tax expense
(95,002)
(84,097)
Profit for the period
102,288
190,771
Profit attributable to:
Shareholders of the Company
101,320
187,589
Non-controlling interests
968
3,182
Profit for the period
102,288
190,771
Earnings per share
Basic earnings per share
3.15
5.87
Diluted earnings per share
3.12
5.73
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
In thousands of US dollars
December 31, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
921,178
797,611
Goodwill and other intangible assets
40,313
41,404
Derivative financial instruments
22,847
33,042
Equity-accounted investees
18,266
—
Other investments
38,160
29,324
Deferred tax assets
26,882
37,181
Restricted cash
387
5,875
Other assets
12,060
8,612
Total non-current assets
1,080,093
953,049
Inventories
260,945
277,311
Derivative financial instruments
3,397
3,516
Trade and other receivables
164,027
162,548
Other assets
100,128
121,834
Current tax assets
7,845
7,289
Restricted cash
1,064
1,045
Cash and cash equivalents
345,308
346,043
Total current assets
882,714
919,586
Total assets
1,962,807
1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
December 31, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,593)
(14,685)
Other reserves
(52,269)
(44,869)
Retained earnings (deficit)
70,077
(4,461)
Equity attributable to shareholders of the Company
561,783
490,553
Non-controlling interests
44,220
27,296
Total equity
606,003
517,849
Liabilities
Loans and borrowings
656,265
661,270
Lease liabilities
46,629
44,224
Employee benefits
133,333
117,160
Provisions
17,951
12,361
Deferred revenue
17,836
20,000
Other liabilities
4,784
15,009
Derivative financial instruments
27
284
Deferred tax liabilities
6,664
27,269
Total non-current liabilities
883,489
897,577
Loans and borrowings
5,566
15,164
Lease liabilities
5,725
4,710
Short-term bank debt
7,678
6,391
Deferred revenue
14,083
28,277
Other liabilities
77,052
69,917
Trade and other payables
259,339
240,101
Derivative financial instruments
2,828
7,746
Advance payments from customers
60,561
51,054
Current tax liability
24,279
23,548
Provisions
16,204
10,301
Total current liabilities
473,315
457,209
Total liabilities
1,356,804
1,354,786
Total equity and liabilities
1,962,807
1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Cash from operating activities
Profit for the period
102,288
190,771
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
95,002
84,097
Depreciation and amortization
54,636
45,299
Asset impairment expense
8,818
10,597
Net finance cost
20,739
30,941
Share of loss of associates and joint ventures
3,723
1,250
Loss (gain) on sale or disposal of property, plant and equipment
145
(592)
Equity-settled share-based payment transactions
5,799
5,552
Movement in provisions, pensions, and government grants
(2,137)
(11,982)
Working capital and deferred revenue adjustments
58,187
(123,281)
Cash generated from operating activities
347,200
232,652
Finance costs paid, net
(21,028)
(23,289)
Income tax paid
(103,172)
(41,796)
Net cash from operating activities
223,000
167,567
Cash used in investing activities
Proceeds from sale of property, plant and equipment
39
2,538
Acquisition of property, plant and equipment and intangibles
(153,377)
(174,516)
Investments in associates and joint ventures
(21,989)
(1,250)
Use of restricted cash
5,469
86,514
Interest received on restricted cash
30
250
Capitalized borrowing cost paid
(15,519)
(16,652)
Other
3
12
Net cash used in investing activities
(185,344)
(103,104)
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
In thousands of US dollars
2023
2022
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
1,395
82
Repayment of borrowings
(15,995)
(33,863)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(28,212)
(19,885)
Payment of lease liabilities
(5,764)
(5,101)
Advanced contributions
—
11,000
Contributions by non-controlling interests
14,000
—
Net cash used in financing activities
(41,536)
(49,290)
Net (decrease) increase in cash and cash equivalents
(3,880)
15,173
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
3,145
(7,007)
Cash and cash equivalents at December 31
345,308
346,043
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG’s Lithium segment spans the lithium value chain, reducing the CO2 footprint of both suppliers and customers. AMG’s Vanadium segment is the world’s market leader in recycling vanadium from oil refining residues, spanning the Company’s vanadium, titanium, and chrome businesses. AMG’s Technologies segment is the established world market leader in advanced metallurgy and provides equipment engineering to the aerospace engine sector globally. It serves as the engineering home for the Company’s fast-growing LIVA batteries, and spans AMG’s mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 8 November 2023(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported third quarter 2023 revenue of $369 million, a 13% decrease versus the third quarter of 2022. Third quarter 2023 EBITDA of $54 million decreased 48% compared to the third quarter of 2022.
Cash from operating activities was $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
In 000’s US dollars
Q3 ‘23
Q3 ‘22
Change
YTD Sept ‘23
YTD Sept ‘22
Change
Revenue
$368,717
$424,813
(13%)
$1,258,626
$1,252,770
—%
EBITDA (1)
53,785
102,603
(48%)
279,349
238,489
17%
Cash from operating activities
24,926
74,747
(67%)
178,296
110,598
61%
Return on Capital Employed
28.4%
29.5%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “The 48% decrease in EBITDA compared to the third quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium have decreased over 50% and 29%, respectively, versus the average pricing in the third quarter of 2022. On a year-to-date basis, however, EBITDA has increased 17% compared to the first nine months of 2022.
We ended the third quarter in a $320 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity during the quarter. As of September 30, 2023, the Company had $347 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $542 million of total liquidity as of September 30, 2023. In today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $81 million in new orders during the third quarter of 2023, 51% higher year-to-date in 2023 than in the same period in 2022, driven by strong orders of remelting and heat treatment furnaces, representing a 1.02x book to bill ratio. AMG’s order backlog was $341 million as of September 30, 2023, the highest in AMG’s history for the second straight quarter. This is largely driven by the aerospace market, which is experiencing strong growth. Our third quarter 2023 order intake remains at a very high level, reaching $323 million year-to-date.”
Strategic Highlights
The Supervisory Board has authorized the implementation of a new corporate structure, which will be operational January 1, 2024. The present segmental reporting structure will be replaced by three corporate entities: AMG Lithium BV, AMG Vanadium BV, and AMG Technologies (AG/GmbH). Each entity will have its own leadership team and operating management.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “The three new 100% owned subsidiaries AMG Lithium, AMG Vanadium, and AMG Technologies, have very specific trends and business models, and require very different management skill sets. They will each be managed by newly installed Management Boards, which will exercise their control through respective Supervisory Boards that will reflect corporate governance principles that currently apply to AMG Critical Materials NV.
This updated structure will enable AMG to realize strategic, operational, and risk management synergies that will improve decision making, as well as strengthen the resiliency of the organization. This new structure will decrease the potential for overreliance on individual executives, improve succession planning, and improve collaboration throughout the organization. Additionally, the new structure will create strategic flexibility for various forms of equity diversification.”
Lithium
In Brazil, the lithium concentrate plant shutdown to facilitate the expansion from 90,000 tons to 130,000 tons will take place in the first quarter of 2024 due to delivery delays of electronic components for processing automation. This will negatively impact second quarter sales volumes. We expect to produce at full run rate capacity, which is 130,000 tons per year, starting in the third quarter of 2024.
AMG Brazil’s project with Grupo Lagoa will begin basic engineering in December 2023. From present data, we conclude that the plant will confirm the main assumptions for the construction of a 150,000-ton lithium concentrate plant at the site.
AMG’s lithium hydroxide refinery’s first 20,000-ton module in Bitterfeld, Germany, is in the initial phases of commissioning and the ramp-up and the qualification process is planned for the second and third quarters of 2024. We expect to produce approximately 7,000 tons of qualified battery-grade lithium hydroxide in 2024 which is not included in our EBITDA guidance for 2024. We expect to produce and sell a full 20,000 tons in 2025.
Vanadium
The spent catalyst roasting facility in Zanesville, Ohio operated at full capacity for the third quarter and outperformed our roasting facility in Cambridge, Ohio. The Zanesville melt shop has operated at full capacity utilization and the Vanadium team is focused on increasing operational availability, optimizing cycle time and increasing yield.
AMG’s innovative lithium vanadium battery (“LIVA”) projects are integral for industrial power management applications and accelerate the industrial energy transition. The batteries are currently under various stages of bidding and development. One is operational, three are under construction, and 13 are in bidding and development stages, with a total megawatt hour (MWh) capacity of 379 MWh.
The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is under construction. The target capacity is 6,000 m³ vanadium electrolyte, the equivalent of approximately 100 MWh, which will serve the electricity storage market, including a vertical integration into LIVA batteries. Production is expected to start in the first quarter of 2024.
Applying a newly developed process technology, AMG Titanium in Nuremberg, Germany has started to process spent roasted catalyst to V2O5.
Shell & AMG Recycling’s (“SARBV”) project development of a closed loop circular recycling facility in the Middle East is progressing. Phase I of the “Supercenter” project, a hydrometallurgical facility to process vanadium-containing gasification ash, is under a long-term contract with Aramco. The gasification ash will be processed into vanadium oxide and then to vanadium electrolytes for use in batteries in the Kingdom of Saudi Arabia. Phase I is expected to reach FEL3 status by the end of the year. The “Supercenter” concept also includes spent catalyst recycling projects, fresh catalyst production, and the manufacturing of vanadium batteries. The Phase I facility will also produce 6,000 m³ of electrolyte, which will support 100 MWh of vanadium redox flow battery capacity annually. In addition, a LIVA Hybrid Energy Storage System and a Fresh Catalyst R&D facility will be part of Phase 1.
Financial Highlights
Cash from operating activities was $25 million in the third quarter of 2023, and $178 million on a year-to-date basis, compared to $111 million for the first nine months of 2022.
AMG’s liquidity as of September 30, 2023 was $542 million, with $347 million of unrestricted cash and $195 million of revolving credit availability.
Annualized return on capital employed was 28.4% for the first nine months of 2023, compared to 29.5% for the same period in 2022.
AMG Engineering’s order backlog of $341 million as of September 30, 2023, the highest in AMG’s history, was driven primarily by the aerospace industry.
Key Figures
In 000’s US dollars
Q3 ‘23
Q3 ‘22
Change
YTD Sept ‘23
YTD Sept ‘22
Change
Revenue
$368,717
$424,813
(13%)
$1,258,626
$1,252,770
—%
Gross profit
66,803
112,071
(40%)
334,179
289,505
15%
Gross margin
18.1%
26.4%
26.6%
23.1%
Operating profit
24,059
121,680
(80%)
202,249
224,740
(10%)
Operating margin
6.5%
28.6%
16.1%
17.9%
Net income attributable to shareholders
163
68,146
N/A
99,147
126,892
(22%)
EPS – Fully diluted
0.00
2.09
N/A
3.04
3.91
(22%)
EBIT (1)
40,225
91,536
(56%)
239,149
205,532
16%
EBITDA (2)
53,785
102,603
(48%)
279,349
238,489
17%
EBITDA margin
14.6%
24.2%
22.2%
19.0%
Cash from operating activities
24,926
74,747
(67%)
178,296
110,598
61%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q3 ‘23
Q3 ‘22
Change
Revenue
$140,344
$188,318
(25%)
Gross profit
34,333
86,454
(60%)
Operating profit
18,712
74,888
(75%)
EBITDA
39,155
83,674
(53%)
AMG Clean Energy Materials’ revenue decreased 25% compared to the third quarter of 2022, to $140 million, driven mainly by decreased prices in both lithium and vanadium as well as lower volumes in lithium concentrate, partially offset by increased volumes in vanadium. Ferrovanadium production increased 48% versus the third quarter of 2022.
Gross profit for the quarter decreased 60% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver is the lithium price decline. Also, vanadium gross profit was lower due to fixed price inventory being processed from global sources. All other existing contracts are under indexed prices. We are working towards long-term contracts similar to our Cambridge model.
SG&A expenses in the third quarter of 2023 were higher than the same period in 2022 at $15 million, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs.
The third quarter 2023 EBITDA decreased 53%, to $39 million, from $84 million in the third quarter of 2022, due to the decline in metal prices as noted above.
During the third quarter of 2023, a total of 16,012 dry metric tons (“dmt”) of lithium concentrates was sold. The third quarter experienced lower sales volumes due to shipping schedule variances noted in the second quarter. The average realized sales price was $2,395/dmt CIF China for the quarter. The average cost per ton for the quarter was $529/dmt CIF China. The cost per ton is lower than the second quarter due to higher sales volumes of tantalum concentrate in the current quarter.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. It is important to note that AMG is one of the lowest cost mines in the world and we plan to maintain that position.
AMG Critical Minerals
Q3 ‘23
Q3 ‘22
Change
Revenue
$52,593
$84,935
(38%)
Gross profit
6,887
674
922%
Operating (loss) profit
(269)
40,301
N/A
EBITDA
1,247
7,327
(83%)
AMG Critical Minerals’ revenue for the third quarter of 2023 decreased by 38%, to $53 million, mainly due to lower volumes across the segment largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit of $7 million in the third quarter of 2023 was $6 million higher compared to the same period last year, largely due to the significant increases in gas and electricity costs experienced in the third quarter of 2022.
SG&A expenses in the third quarter of 2023 of $7 million were in line with the same period in 2022.
The third quarter 2023 EBITDA decreased 83% compared to the same period in 2022, to $1 million, due to silicon shutdown as well as the slowdown in the end-use markets for the segment in the current quarter.
AMG Silicon operated one of four furnaces throughout the third quarter and plans to operate one furnace for the remainder of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon’s operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $10 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q3 ‘23
Q3 ‘22
Change
Revenue
$175,780
$151,560
16%
Gross profit
25,583
24,943
3%
Operating profit
5,616
6,491
(13%)
EBITDA
13,383
11,602
15%
AMG Critical Materials Technologies’ third quarter 2023 revenue increased by $24 million, or 16%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of titanium alloys and chrome metal, partially offset by lower chrome metal pricing.
SG&A expenses increased by 10% in the third quarter of 2023 compared to the same period in 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the record order backlog and business development, respectively.
AMG Critical Materials Technologies’ EBITDA was $13 million during the quarter compared to $12 million in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the third quarter of 2023.
AMG Engineering signed $81 million in new orders during the third quarter of 2023, driven by strong orders of remelting and heat treatment furnaces, representing a 1.02x book to bill ratio. Order backlog was $341 million as of September 30, 2023, the highest in AMG’s history.
AMG Engineering has been selected by PCC’s TIMET to supply the vacuum melting and re-melting furnaces for their new, state-of-the-art Titanium melt facility in Ravenswood, West Virginia. AMG’s scope includes several vacuum arc re-melting, electron beam welding, and electron beam melting furnaces, signifying one of the largest orders in all of AMG Engineering’s history.
Financial Review
Tax
AMG recorded an income tax expense of $13 million in the third quarter of 2023, compared to $39 million in the same period in 2022. This variance was mainly driven by lower profitability in the current quarter.
AMG paid taxes of $33 million in the third quarter of 2023, compared to tax payments of $10 million in the third quarter of 2022, primarily due to the timing lag in tax payments relative to tax expense recognition.
Exceptional Items
AMG’s third quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the third quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q3 ‘23
Q3 ‘22
Change
Gross profit
$66,803
$112,071
(40%)
Inventory cost adjustment
1,388
—
N/A
Restructuring expense
2,745
11
N/A
Asset impairment expense
—
11,587
N/A
Strategic project expense
4,924
1,241
297%
Gross profit excluding exceptional items
75,860
124,910
(39%)
AMG Vanadium had a $1.3 million non-cash expense during the third quarter of 2023. This is a result of inventory cost adjustments associated with declining prices and an increased inventory position of spent catalyst as we diversify our sourcing strategy which has been adjusted in EBITDA.
SG&A
AMG’s third quarter 2023 SG&A expenses were $43 million compared to $37 million in the third quarter of 2022, with the increase largely attributable to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
September 30, 2023
December 31, 2022
Change
Senior secured debt
$337,952
$348,622
(3%)
Cash & cash equivalents
347,293
346,043
—%
Senior secured net (cash) debt
(9,341)
2,579
N/A
Other debt
12,170
14,959
(19%)
Net debt excluding municipal bond
2,829
17,538
(84%)
Municipal bond debt
319,064
319,244
—%
Restricted cash
1,428
6,920
(79%)
Net debt
320,465
329,862
(3%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the third quarter. As of September 30, 2023, the Company had $347 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $542 million of total liquidity as of September 30, 2023.
Net Finance Costs
AMG’s third quarter 2023 net finance cost was $9 million compared to $14 million in the third quarter of 2022. This decrease was mainly driven by foreign exchange gains of $3 million during the quarter primarily due to non-cash intergroup balances and higher interest income earned on an increased cash and cash equivalents balance in the third quarter 2023 compared to the third quarter of 2022. Additionally, in today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities. AMG has an average interest rate charge across its two main debt instruments of 5%.
Outlook
Since the end of July when we issued the previous 2023 EBITDA guidance of between $350 million and $380 million, market prices for spodumene and lithium carbonate have decreased by 50% and 43%, respectively. Given these price decreases, AMG’s new EBITDA guidance for the full year 2023 is approximately $320 million.
Considering the ramp-up of the strategic projects explained above, as well as the volatility of our key material prices, specifically lithium, it is challenging to provide firm guidance for 2024. The recent fall in lithium prices has surprised every industry participant. Establishing the cause of the fall in prices and projecting future movements involves analyzing both the Chinese lithium industry as well as broader macroeconomic factors in China.
Given the difficulty of this analysis, and despite certain signs that the lithium supply and demand picture remains strong, there is high uncertainty with regard to near-term pricing dynamics. Therefore, utilizing today’s depressed price levels, AMG’s EBITDA will be approximately $200 million in 2024 with a stronger performance in the second half of the year.
Profit for the period to adjusted EBITDA reconciliation
Q3 ‘23
Q3 ‘22
Profit for the period
$1,002
$68,339
Income tax expense
12,565
38,603
Net finance cost
9,295
13,988
Equity-settled share-based payment transactions
1,392
1,386
Restructuring expense
2,745
11
Net contract settlements
—
(46,407)
Silicon’s partial closure
(739)
—
Inventory cost adjustment
1,388
—
Asset impairment expense
—
11,587
Strategic project expense (1)
11,196
3,282
Share of loss of associates
1,197
750
Others
184
(3)
EBIT
40,225
91,536
Depreciation and amortization
13,560
11,067
EBITDA
53,785
102,603
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
368,717
424,813
Cost of sales
(301,914)
(312,742)
Gross profit
66,803
112,071
Selling, general and administrative expenses
(42,800)
(36,888)
Other income, net
56
46,497
Net other operating income
56
46,497
Operating profit
24,059
121,680
Finance income
5,676
1,222
Finance cost
(14,971)
(15,210)
Net finance cost
(9,295)
(13,988)
Share of loss of associates and joint ventures
(1,197)
(750)
Profit before income tax
13,567
106,942
Income tax expense
(12,565)
(38,603)
Profit for the period
1,002
68,339
Profit attributable to:
Shareholders of the Company
163
68,146
Non-controlling interests
839
193
Profit for the period
1,002
68,339
Basic earnings per share
Basic earnings per share
0.01
2.13
Diluted earnings per share
0.00
2.09
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
1,258,626
1,252,770
Cost of sales
(924,447)
(963,265)
Gross profit
334,179
289,505
Selling, general and administrative expenses
(132,580)
(111,384)
Other income, net
650
46,619
Net other operating income
650
46,619
Operating profit
202,249
224,740
Finance income
14,843
3,602
Finance cost
(38,037)
(38,720)
Net finance cost
(23,194)
(35,118)
Share of loss of associates and joint ventures
(2,989)
(1,250)
Profit before income tax
176,066
188,372
Income tax expense
(75,044)
(60,270)
Profit for the period
101,022
128,102
Profit attributable to:
Shareholders of the Company
99,147
126,892
Non-controlling interests
1,875
1,210
Profit for the period
101,022
128,102
Earnings per share
Basic earnings per share
3.08
3.97
Diluted earnings per share
3.04
3.91
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
September 30, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
878,166
797,611
Goodwill and other intangible assets
40,113
41,404
Derivative financial instruments
32,532
33,042
Equity-accounted investees
16,950
—
Other investments
31,095
29,324
Deferred tax assets
38,524
37,181
Restricted cash
370
5,875
Other assets
10,989
8,612
Total non-current assets
1,048,739
953,049
Inventories
262,763
277,311
Derivative financial instruments
2,065
3,516
Trade and other receivables
173,506
162,548
Other assets
107,668
121,834
Current tax assets
6,792
7,289
Restricted cash
1,058
1,045
Cash and cash equivalents
347,293
346,043
Total current assets
901,145
919,586
Total assets
1,949,884
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
September 30, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(45,148)
(44,869)
Retained earnings (deficit)
77,610
(4,461)
Equity attributable to shareholders of the Company
576,300
490,553
Non-controlling interests
35,213
27,296
Total equity
611,513
517,849
Liabilities
Loans and borrowings
657,544
661,270
Lease liabilities
43,548
44,224
Employee benefits
124,819
117,160
Provisions
12,847
12,361
Deferred revenue
17,246
20,000
Other liabilities
3,801
15,009
Derivative financial instruments
224
284
Deferred tax liabilities
15,974
27,269
Total non-current liabilities
876,003
897,577
Loans and borrowings
5,497
15,164
Lease liabilities
5,149
4,710
Short-term bank debt
6,145
6,391
Deferred revenue
23,294
28,277
Other liabilities
73,064
69,917
Trade and other payables
249,598
240,101
Derivative financial instruments
3,986
7,746
Advance payments from customers
60,181
51,054
Current tax liability
20,569
23,548
Provisions
14,885
10,301
Total current liabilities
462,368
457,209
Total liabilities
1,338,371
1,354,786
Total equity and liabilities
1,949,884
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from operating activities
Profit for the period
101,022
128,102
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
75,044
60,270
Depreciation and amortization
40,200
32,957
Asset impairment (reversal) expense
(767)
11,587
Net finance cost
23,194
35,118
Share of loss of associates and joint ventures
2,989
1,250
Loss on sale or disposal of property, plant and equipment
33
12
Equity-settled share-based payment transactions
4,356
4,138
Movement in provisions, pensions, and government grants
8,470
(7,532)
Working capital and deferred revenue adjustments
31,609
(113,601)
Cash generated from operating activities
286,150
152,301
Finance costs paid, net
(19,163)
(19,014)
Income tax paid
(88,691)
(22,689)
Net cash from operating activities
178,296
110,598
Cash used in investing activities
Proceeds from sale of property, plant and equipment
34
151
Acquisition of property, plant and equipment and intangibles
(109,540)
(134,244)
Investments in associates and joint ventures
(19,939)
(1,250)
Use of restricted cash
5,492
76,365
Interest received on restricted cash
30
179
Capitalized borrowing cost paid
(11,583)
(15,307)
Other
4
12
Net cash used in investing activities
(135,502)
(74,094)
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the nine months ended September 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
57
83
Repayment of borrowings
(14,355)
(23,948)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(28,212)
(19,885)
Payment of lease liabilities
(4,098)
(3,738)
Contributions by non-controlling interests
14,000
—
Net cash used in financing activities
(39,568)
(49,011)
Net increase (decrease) in cash and cash equivalents
3,226
(12,507)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
(1,976)
(18,954)
Cash and cash equivalents at September 30
347,293
306,416
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 26July 2023(Regulated Information)— AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) declares an interim dividend of €0.40 per ordinary share, from an interim dividend of €0.30 per ordinary share in the prior year.
The interim dividend of €0.40 per ordinary share, in respect of the period from January 1, 2023 to June 30, 2023, is payable on August 9, 2023 to shareholders of record as of August 1, 2023. The ex-dividend date will be July 31, 2023. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 26 July 2023(Regulated Information) — AMG Critical Materials N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported second quarter 2023 revenue of $439 million, a 4% increase versus the second quarter of 2022. Second quarter 2023 EBITDA of $107 million was 32% higher than the second quarter of 2022.
In 000’s US dollars
Q2 ‘23
Q2 ‘22
Change
Revenue
$439,319
$424,094
4%
EBITDA (1)
107,453
81,126
32%
Cash from operating activities
59,975
39,505
52%
Net income attributable to shareholders
42,763
29,631
44%
EPS – Fully diluted
1.28
0.91
Return on Capital Employed
35.7%
25.5%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “This is the fourth straight quarter in which AMG has exceeded $100 million of EBITDA. The $26 million, or 32%, EBITDA increase over the second quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium’s Brazilian operation with an EBITDA contribution of $89 million.
AMG’s liquidity as of June 30, 2023 was $586 million, with $391 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay an interim 2023 dividend of €0.40 per ordinary share on or around August 9, 2023, to shareholders of record on August 1, 2023.
AMG Engineering signed $167 million in new orders during the second quarter of 2023, driven by strong orders of remelting and induction furnaces, representing a 2.48x book to bill ratio. AMG’s order backlog of $337 million as of June 30, 2023, which is the highest in AMG’s history. This is largely driven by the US aerospace market. Our second quarter 2023 US order intake has essentially doubled from our second quarter 2022 US order intake.
We continue to drive our lithium strategy forward and are pleased to announce that we have signed a mandate letter with KfW IPEX-Bank GmbH and with Citi to structure and arrange the financing for the construction of our proposed technical-grade lithium chemical plant in Brazil. The financing structure is expected to cover all the funding requirements and be supported by Euler Hermes (the German Export Credit Agency representing its government) under its Untied Loan Guarantee program for projects which deliver critical raw materials into Germany. This proposed financing is a cornerstone of our lithium strategy to be the premier supplier of battery-grade lithium hydroxide in Europe, and another important step towards an independent and sustainable lithium supply chain for Europe. In addition, this project conforms with AMG Brazil’s commitment to upgrade its operations to produce a higher value product, while significantly contributing to reducing CO2 emissions by lowering total volumes shipped.”
Strategic Highlights
Lithium
The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
AMG signed a mandate letter with KfW IPEX-Bank GmbH and Citi to structure and arrange the financing for the construction of our proposed technical-grade lithium chemical plant in Brazil. The financing structure is expected to cover all the funding requirements and be supported by Euler Hermes (the German Export Credit Agency representing its government) under its Untied Loan Guarantee program for projects which deliver critical raw materials into Germany. This proposed financing is a cornerstone of our strategy to be the premier supplier of battery-grade lithium hydroxide in Europe.
AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is expected to start commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
AMG Lithium signed a non-binding memorandum of understanding (“MOU”) in May 2023 with Fortum Battery Recycling Oy (“Fortum”), a Nordic clean energy provider. Fortum’s new commercial scale hydrometallurgical plant is able to efficiently recover valuable metals from old electric vehicle lithium-ion batteries. The lithium product recovered by Fortum will be delivered to AMG Lithium for further processing.
Vanadium
The new vanadium spent catalyst recycling facility in Zanesville, Ohio, is currently running at full capacity and targeting full run rate production for the second half of 2023.
AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are under various stages of construction.
In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
Shell & AMG Recycling B.V. (“SARBV”) project development in the Middle East are progressing. The Supercenter project in the Kingdom of Saudi Arabia is completing the FEL3 feasibility study later this year.
Financial Highlights
Revenue increased by 4% to $439 million in the second quarter of 2023 from $424 million in the second quarter of 2022.
EBITDA was $107 million in the second quarter of 2023, up 32% versus the second quarter 2022 EBITDA of $81 million.
Annualized return on capital employed was 35.7% for the first six months of 2023, compared to 25.5% for the same period in 2022.
Cash from operations was $60 million for the second quarter of 2023, compared to $40 million in the second quarter of 2022, driven by the high profitability of AMG Lithium in Brazil.
Net income attributable to shareholders for the second quarter of 2023 was $43 million, yielding $1.28 diluted earnings per share compared to $0.91 in the same period in 2022.
AMG’s liquidity as of June 30, 2023 was $586 million, with $391 million of unrestricted cash and $195 million of revolving credit availability.
AMG declares an interim dividend of €0.40 per ordinary share, to be paid in the third quarter of 2023.
Key Figures
In 000’s US dollars
Q2 ‘23
Q2 ‘22
Change
Revenue
$439,319
$424,094
4%
Gross profit
127,534
102,240
25%
Gross margin
29.0%
24.1%
Operating profit
78,167
65,246
20%
Operating margin
17.8%
15.4%
Net income attributable to shareholders
42,763
29,631
44%
EPS – Fully diluted
1.28
0.91
41%
EBIT (1)
93,780
69,763
34%
EBITDA (2)
107,453
81,126
32%
EBITDA margin
24.5%
19.1%
Cash from operating activities
59,975
39,505
52%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q2 ‘23
Q2 ‘22
Change
Revenue
$208,487
$159,762
30%
Gross profit
95,985
60,821
58%
Operating profit
74,378
49,704
50%
EBITDA
95,974
58,232
65%
AMG Clean Energy Materials’ revenue increased 30% compared to the second quarter of 2022, to $208 million, driven mainly by increased sales volumes and increased prices in lithium concentrates.
Gross profit for the quarter increased 58% compared to the same period in the prior year, primarily due to the higher sales volumes across the segment as well as higher lithium pricing.
SG&A expenses in the second quarter of 2023 were higher than the same period in 2022 at $21 million, mainly driven by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs.
The second quarter 2023 EBITDA increased 65%, to $96 million, from $58 million in the second quarter of 2022, due to the improved gross profit as noted above.
AMG Vanadium’s production was negatively impacted by a defective fan provided by a supplier at our new Zanesville facility. AMG has commenced an arbitration claim seeking compensatory damages, which include costs incurred and lost profitability.
During the second quarter of 2023, a total of 28,870 dry metric tons (“dmt”) of lithium concentrates was sold. The second quarter experienced increased sales volumes due to shipping schedule variances which will negatively impact the third quarter. The average realized sales price was $3,633/dmt CIF China for the quarter. The average cost per ton for the quarter was $547/dmt CIF China. The cost per ton is higher than the first quarter due to lower volumes and pricing in tantalum concentrate in the quarter. The additional lithium concentrate shipments and slightly higher costs in tantalum concentrate resulted in quarterly EBITDA for AMG Brazil of $89 million.
AMG Critical Minerals
Q2 ‘23
Q2 ‘22
Change
Revenue
$57,271
$103,416
(45%)
Gross profit
7,806
14,028
(44%)
Operating profit
169
7,086
(98%)
EBITDA
1,532
9,069
(83%)
AMG Critical Minerals’ revenue for the second quarter of 2023 decreased by 45%, to $57 million, mainly due to lower volumes across the segment largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.
Gross profit of $8 million in the second quarter was 44% lower compared to the second quarter of 2022, largely due to the lower volumes in the current quarter.
SG&A expenses in the second quarter of 2023 increased by 8%, to $8 million, compared to the same period in 2022. This was largely driven by higher professional fees in the current quarter.
The second quarter 2023 EBITDA decreased 83% compared to the same period in 2022, to $2 million, due to the lower gross profit as noted above.
AMG Silicon operated one of four furnaces throughout the second quarter and plans to operate one furnace for the remainder of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $9 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q2 ‘23
Q2 ‘22
Change
Revenue
$173,561
$160,916
8%
Gross profit
23,743
27,391
(13%)
Operating profit
3,620
8,456
(57%)
EBITDA
9,947
13,825
(28%)
AMG Critical Materials Technologies’ second quarter 2023 revenue increased by $13 million, or 8%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of titanium alloys and chrome metal, partially offset by lower chrome metal pricing.
SG&A expenses increased by 8% in the second quarter of 2023 compared to the same period in 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the record order backlog and business development, respectively.
AMG Critical Materials Technologies’ EBITDA was $10 million during the quarter compared to $14 million in the same period of 2022. The decrease was primarily due to lower chrome prices in the second quarter of 2023 partially offset by higher profitability in Engineering and Titanium.
AMG Engineering signed $167 million in new orders during the second quarter of 2023, driven by strong orders of remelting and induction furnaces, representing a 2.48x book to bill ratio. Order backlog was $337 million as of June 30, 2023, the highest in AMG’s history.
Financial Review
Tax
AMG recorded an income tax expense of $27 million in the second quarter of 2023, compared to $23 million in the same period in 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation, offset by US tax expense and movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax benefit in the second quarter of 2023, compared to a $4 million tax expense in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $35 million in the second quarter of 2023, compared to tax payments of $9 million in the second quarter of 2022. The higher cash taxes in the current quarter were a result of tax payments tracking the consistent upward trend in Brazil results.
Exceptional Items
AMG’s second quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the second quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q2 ‘23
Q2 ‘22
Change
Gross profit
$127,534
$102,240
25%
Inventory cost adjustment
3,678
—
N/A
Restructuring expense
626
41
1427%
Silicon’s partial closure
(1,011)
—
N/A
Strategic project (reversal) expense
(55)
833
N/A
Gross profit excluding exceptional items
130,772
103,114
27%
AMG Vanadium had a $3.7 million non-cash expense during the second quarter of 2023. This is a result of inventory cost adjustments associated with declining prices and inventory specification issues due to the acquisition and testing of global refinery waste which has been adjusted in EBITDA.
SG&A
AMG’s second quarter 2023 SG&A expenses were $49 million compared to $37 million in the second quarter of 2022, with the increase largely attributable to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses. It was also driven by a one-time pension expense of $6.7 million due to the restructuring of executive employee benefit plans.
Liquidity
June 30, 2023
December 31, 2022
Change
Senior secured debt
$338,505
$348,622
(3%)
Cash & cash equivalents
391,251
346,043
13%
Senior secured net (cash) debt
(52,746)
2,579
N/A
Other debt
14,987
14,959
—%
Net (cash) debt excluding municipal bond
(37,759)
17,538
N/A
Municipal bond debt
319,124
319,244
—%
Restricted cash
1,440
6,920
(79%)
Net debt
279,925
329,862
(15%)
AMG ended the second quarter in a $280 million net debt position. This decrease versus year-end 2022 was mainly due to higher cash balances from strong operating cash flow.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the second quarter. As of June 30, 2023, the Company had $391 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $586 million of total liquidity as of June 30, 2023.
Net Finance Costs
AMG’s second quarter 2023 net finance cost was $7 million compared to $12 million in the second quarter of 2022. This variance was mainly driven by higher interest income earned, due to the overall increase in global interest rates, and an increase in cash and cash equivalents balances as well as foreign exchange losses in the prior period. Additionally, in today’s rising rate environment, AMG continues to benefit from its low-cost fixed-rate debt facilities. AMG has an average interest rate charge across its two main debt instruments of 5%.
Outlook
Given the global economic uncertainty and the slowdown in China, current spot prices across AMG’s critical materials portfolio are significantly below the prices we experienced when we announced our initial guidance for 2023 in November 2022. The price of lithium carbonate in November 2022, the date of our $400 million EBITDA guidance, has now almost halved and our other relevant portfolio prices are down an average of 25%.
Therefore, we have changed our full year EBITDA guidance for 2023 from “exceeding $400 million in EBITDA” to “a range between $350 million to $380 million in EBITDA.” An EBITDA in this range represents the highest EBITDA in the history of AMG.
As previously disclosed, third quarter profitability will be negatively impacted by lower volumes associated with the spodumene expansion project. Volumes will recover in the fourth quarter as the project begins to ramp up.
Regarding our long-term guidance, we are extremely pleased with the advancement of our strategic projects. We are moving forward with our lithium concentrate expansion in Brazil. We’ve signed a mandate letter to fund the chemical upgrader in Brazil, and our lithium hydroxide refinery in Bitterfeld, Germany, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
These transformational projects in lithium, our newly complete ferrovanadium spent catalyst recycling facility in Ohio, and the continued ramp-up in our AMG Critical Materials Technologies segment will drive increased volumes across our Clean Energy Materials segment and confirm our confidence in our long-term guidance. Our long-term guidance therefore remains unchanged at an EBITDA level of $650 million, or more, in 5 years, or earlier.
Profit for the period to adjusted EBITDA reconciliation
Q2 ‘23
Q2 ‘22
Profit for the period
$43,573
$29,879
Income tax expense
26,552
23,156
Net finance cost
7,282
12,211
Equity-settled share-based payment transactions
1,495
1,372
Restructuring expense
626
41
Pension adjustment
6,700
—
Silicon’s partial closure
(362)
—
Inventory cost adjustment
3,678
—
Strategic project expense (1)
3,476
3,107
Share of loss of associates
760
—
Others
—
(3)
EBIT
93,780
69,763
Depreciation and amortization
13,673
11,363
EBITDA
107,453
81,126
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
439,319
424,094
Cost of sales
(311,785)
(321,854)
Gross profit
127,534
102,240
Selling, general and administrative expenses
(49,420)
(37,034)
Other income, net
53
40
Net other operating income
53
40
Operating profit
78,167
65,246
Finance income
5,550
2,081
Finance cost
(12,832)
(14,292)
Net finance cost
(7,282)
(12,211)
Share of loss of associates and joint ventures
(760)
—
Profit before income tax
70,125
53,035
Income tax expense
(26,552)
(23,156)
Profit for the period
43,573
29,879
Profit attributable to:
Shareholders of the Company
42,763
29,631
Non-controlling interests
810
248
Profit for the period
43,573
29,879
Earnings per share
Basic earnings per share
1.33
0.93
Diluted earnings per share
1.28
0.91
AMG Critical Materials N.V.
Condensed Interim Consolidated Income Statement
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
889,909
827,957
Cost of sales
(622,533)
(650,523)
Gross profit
267,376
177,434
Selling, general and administrative expenses
(89,780)
(74,496)
Other income, net
594
122
Net other operating income
594
122
Operating profit
178,190
103,060
Finance income
11,026
2,380
Finance cost
(24,925)
(23,510)
Net finance cost
(13,899)
(21,130)
Share of loss of associates and joint ventures
(1,792)
(500)
Profit before income tax
162,499
81,430
Income tax expense
(62,479)
(21,667)
Profit for the period
100,020
59,763
Profit attributable to:
Shareholders of the Company
98,984
58,746
Non-controlling interests
1,036
1,017
Profit for the period
100,020
59,763
Earnings per share
Basic earnings per share
3.08
1.84
Diluted earnings per share
3.01
1.81
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
June 30, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
851,805
797,611
Goodwill and other intangible assets
41,235
41,404
Derivative financial instruments
31,839
33,042
Equity-accounted investees
16,147
—
Other investments
31,339
29,324
Deferred tax assets
37,924
37,181
Restricted cash
381
5,875
Other assets
10,445
8,612
Total non-current assets
1,021,115
953,049
Inventories
252,435
277,311
Derivative financial instruments
2,412
3,516
Trade and other receivables
179,727
162,548
Other assets
117,828
121,834
Current tax assets
6,627
7,289
Restricted cash
1,059
1,045
Cash and cash equivalents
391,251
346,043
Total current assets
951,339
919,586
Total assets
1,972,454
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
June 30, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(39,334)
(44,869)
Retained earnings (deficit)
90,543
(4,461)
Equity attributable to shareholders of the Company
595,047
490,553
Non-controlling interests
35,185
27,296
Total equity
630,232
517,849
Liabilities
Loans and borrowings
658,722
661,270
Lease liabilities
43,912
44,224
Employee benefits
127,827
117,160
Provisions
12,969
12,361
Deferred revenue
20,000
20,000
Other liabilities
3,931
15,009
Derivative financial instruments
191
284
Deferred tax liabilities
18,515
27,269
Total non-current liabilities
886,067
897,577
Loans and borrowings
5,778
15,164
Lease liabilities
4,892
4,710
Short-term bank debt
8,116
6,391
Deferred revenue
14,533
28,277
Other liabilities
71,088
69,917
Trade and other payables
245,889
240,101
Derivative financial instruments
2,711
7,746
Advance payments from customers
51,947
51,054
Current tax liability
38,778
23,548
Provisions
12,423
10,301
Total current liabilities
456,155
457,209
Total liabilities
1,342,222
1,354,786
Total equity and liabilities
1,972,454
1,872,635
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from operating activities
Profit for the period
100,020
59,763
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense
62,479
21,667
Depreciation and amortization
26,640
21,890
Asset impairment reversal
(767)
—
Net finance cost
13,899
21,130
Share of loss of associates and joint ventures
1,792
500
Loss on sale or disposal of property, plant and equipment
35
33
Equity-settled share-based payment transactions
2,964
2,752
Movement in provisions, pensions, and government grants
8,104
(2,917)
Working capital and deferred revenue adjustments
3,901
(63,774)
Cash generated from operating activities
219,067
61,044
Finance costs paid, net
(9,716)
(12,153)
Income tax paid
(55,981)
(13,040)
Net cash from operating activities
153,370
35,851
Cash used in investing activities
Proceeds from sale of property, plant and equipment
26
93
Acquisition of property, plant and equipment and intangibles
(69,291)
(82,608)
Investments in associates and joint ventures
(17,939)
(500)
Use of restricted cash
5,480
51,252
Interest received on restricted cash
30
76
Capitalized borrowing cost paid
(8,366)
(8,321)
Other
(1)
8
Net cash used in investing activities
(90,061)
(40,000)
AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the six months ended June 30
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
2,041
152
Repayment of borrowings
(12,755)
(8,437)
Net repurchase of common shares
(6,960)
(1,523)
Dividends paid
(14,087)
(10,098)
Payment of lease liabilities
(2,659)
(2,588)
Advanced contributions
14,000
—
Net cash used in financing activities
(20,420)
(22,494)
Net increase (decrease) in cash and cash equivalents
42,889
(26,643)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
2,319
(10,476)
Cash and cash equivalents at June 30
391,251
300,758
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Critical Materials N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 4 May 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during its Annual General Meeting held on May 4, 2023, shareholders approved all agenda items presented, including the reappointment of Dr. Heinz Schimmelbusch as Chief Executive Officer and Chairman of the Management Board for an additional term of two years, with effect from May 4, 2023.
During the meeting, Professor Steve Hanke and Mr. Herb Depp were reappointed as independent members of the Supervisory Board for terms of two years each, beginning May 4, 2023.
Ms. Dagmar Bottenbruch has decided to step down from AMG’s Supervisory Board in view of other pressing priorities in her career, having served on AMG’s Supervisory Board since 2019. Given the vacancy created by the departure of Ms. Bottenbruch, Dr. Anne Roby was appointed as an independent member of the Supervisory Board for a term of four years beginning May 4, 2023.
Approval was also granted for the Company’s articles of association to be amended to accommodate the name change of the Company to ”AMG Critical Materials N.V.” The reason for the change from AMG Advanced Metallurgical Group N.V. is explained in the Letter to Shareholders of the 2022 Annual Report.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 4 May 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during the Annual General Meeting, held on May 4, 2023, AMG’s shareholders approved the payment of a dividend of €0.70 per ordinary share over the financial year 2022. The interim dividend of €0.30, paid on August 10, 2022, was deducted from the amount distributed to shareholders. The final dividend per ordinary share therefore amounts to €0.40.
Payment of the final dividend will be completed on or around May 11, 2023, to shareholders of record on May 9, 2023. The ex-dividend date is May 8, 2023. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 3 May 2023(Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported first quarter 2023 revenue of $451 million, a 12% increase versus the same period in 2022. First quarter 2023 EBITDA of $118 million was more than double the EBITDA of $55 million for the first three months of last year, and represents an all-time high for AMG’s quarterly EBITDA.
In 000’s US dollars
Q1 ‘23
Q1 ‘22
Change
Revenue
$450,590
$403,863
12%
EBITDA (1)
118,111
54,760
116%
Cash from (used in) operating activities
93,395
(3,654)
N/A
Net income attributable to shareholders
56,221
29,115
93%
EPS – Fully diluted
1.72
0.89
93%
Return on Capital Employed
37.9%
19.8%
Note: (1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “I am pleased to announce that AMG will change its name, subject to the approval of our shareholders in the upcoming Annual General Meeting, from AMG Advanced Metallurgical Group N.V. to AMG Critical Materials N.V. We have also achieved new record earnings and operating cash flow.
This is the third straight quarter in which AMG has exceeded $100 million of EBITDA. The $63 million, or 116%, EBITDA increase over the first quarter of 2022 was driven largely by our Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $92 million.
AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability. The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.
The record results are due to our recent expansion projects. The profitability going forward is also driven by the strategic projects coming on stream in 2023 and 2024, in particular our lithium concentrate expansion and our first lithium hydroxide refinery module in Bitterfeld. We thereby confirm our guidance for 2023 to exceed $400 million in EBITDA.”
Strategic Highlights
Lithium
The lithium concentrate production expansion project in AMG Brazil is progressing as planned.
AMG Lithium’s hydroxide refinery in Bitterfeld, Germany, Europe’s first, is under construction, with commissioning for the first 20,000-ton module expected in the fourth quarter of 2023.
Regarding its development of solid state battery materials, AMG Lithium GmbH has engaged in a joint production with Fraunhofer Institute, Münster University, Wacker, and Schunk to develop next generation solid-state batteries based on lithium-sulfur technology. AMG Lithium will provide lithium sulfide and solid electrolytes for this project.
AMG has a 25% shareholding in Zinnwald Lithium PLC and is supporting the Zinnwald Board to accelerate the development of its lithium project in Eastern Germany.
Vanadium
The new vanadium spent catalyst recycling facility in Zanesville, Ohio, continues to progress, with the roaster operating at its design capacity and the melt shop targeting full production capacity later in the second quarter of this year.
AMG’s innovative lithium vanadium battery (“LIVA”) projects for industrial power management applications outlined at our Capital Markets Day are being executed as planned.
AMG has completed the expansion of its vanadium oxide (“V2O5”) production in Nuremberg, either using gasification ash or spent catalyst as alternative feed. V2O5 is increasingly destined for the LIVA battery market.
In January 2023, AMG started building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte, which will serve the electricity storage market. Production is expected to start at the end of this year.
Shell & AMG Recycling B.V. (“SARBV”) continues to advance its projects in the Middle East including the first phase of the Supercenter project based on long-term supply agreements with ARAMCO. Front end engineering design for the first phase of the project, the conversion of gasification ash into V2O5, began in late 2022 and will be completed in the fourth quarter of 2023.
Financial Highlights
Revenue increased by 12% to $451 million in the first quarter of 2023 from $404 million in the first quarter of 2022.
EBITDA was $118 million in the first quarter of 2023, up 116% versus the first quarter 2022 EBITDA of $55 million.
Annualized return on capital employed was 37.9% for the first quarter of 2023, compared to 19.8% for the first three months of 2022.
Cash from operating activities was $93 million in the first quarter of 2023, an increase of $97 million over the same period in 2022.
Net income attributable to shareholders for the first three months of 2023 was $56 million, yielding $1.72 diluted earnings per share compared to $0.89 for the same period in 2022.
AMG’s liquidity as of March 31, 2023 was $555 million, with $360 million of unrestricted cash and $195 million of revolving credit availability.
The Company will pay its final 2022 declared dividend of €0.40 per ordinary share on or around May 11, 2023, to shareholders of record on May 9, 2023.
Key Figures
In 000’s US dollars
Q1 ‘23
Q1 ‘22
Change
Revenue
$450,590
$403,863
12%
Gross profit
139,842
75,194
86%
Gross margin
31.0%
18.6%
Operating profit
100,023
37,814
165%
Operating margin
22.2%
9.4%
Net income attributable to shareholders
56,221
29,115
93%
EPS – Fully diluted
1.72
0.89
93%
EBIT (1)
105,144
44,233
138%
EBITDA (2)
118,111
54,760
116%
EBITDA margin
26.2%
13.6%
Cash from (used in) operating activities
93,395
(3,654)
N/A
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses. (2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q1 ‘23
Q1 ‘22
Change
Revenue
$219,080
$143,659
53%
Gross profit
108,957
39,004
179%
Operating profit
95,643
28,219
239%
EBITDA
106,137
37,227
185%
AMG Clean Energy Materials’ revenue increased 53% compared to the first quarter of 2022, to $219 million, driven mainly by higher prices in tantalum and lithium concentrates, as well as increased sales volumes of vanadium and tantalum concentrate.
Gross profit for the quarter increased 179% compared to the same period in the prior year, primarily due to the increased price environment.
SG&A expenses in the first quarter of 2023 were 23% higher than the same period in 2022, largely due to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects.
The first quarter 2023 EBITDA increased 185%, to $106 million, from $37 million in the first quarter of 2022, due to the improved gross profit as noted above.
During the first quarter of 2023, a total of 20,509 dry metric tons (“dmt”) of lithium concentrates was sold. The average realized sales price was $4,846/dmt CIF China for the quarter. The average cost per ton for the quarter was $338/dmt CIF China. This exceptional cost per ton result was driven by high sales volumes of tantalum concentrate in the quarter, and drove a quarterly EBITDA figure for AMG Brazil of $92 million.
AMG Critical Minerals
Q1 ‘23
Q1 ‘22
Change
Revenue
$62,929
$106,909
(41%)
Gross profit
7,266
13,002
(44%)
Operating profit
635
5,647
(89%)
EBITDA
2,550
7,883
(68%)
AMG Critical Minerals’ revenue for the first quarter of 2023 decreased by $44 million, or 41%, to $63 million, mainly due to lower volumes across the segment which was primarily driven by the silicon metal plant care and maintenance plan for the first two months of 2023 prior to restarting and operating one furnace in March discussed in detail below. The segment also suffered from a slowdown in the European industrial economy.
Gross profit of $7 million in the first quarter was $6 million lower compared to the first quarter of 2022, largely due to the lower volumes in the first three months of this year.
SG&A expenses in the first quarter of 2023 decreased by 3%, to $7 million, compared to the same period in 2022. This was driven by lower personnel costs and variable compensation expense in the current quarter due to the interruptions in AMG Silicon’s operations earlier this quarter.
The first quarter 2023 EBITDA decreased 68% compared to the same period in 2022, to $3 million, due to the lower gross profit as noted above.
As of March 1, 2023, AMG’s silicon metal plant in Pocking, Germany, restarted operating one furnace. AMG Silicon is operating one furnace throughout the second quarter and plans to operate one furnace in the third quarter. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis and will be adjusted as appropriate in line with favorable and predictable market conditions. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. However, AMG Silicon generated $11 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022. The financial impact of the care and maintenance program does not significantly impact AMG’s overall projected 2023 financial results.
AMG Critical Materials Technologies
Q1 ‘23
Q1 ‘22
Change
Revenue
$168,581
$153,295
10%
Gross profit
23,619
23,188
2%
Operating profit
3,745
3,948
(5%)
EBITDA
9,424
9,650
(2%)
AMG Critical Materials Technologies’ first quarter 2023 revenue increased by $15 million, or 10%, compared to the same period in 2022. This improvement was driven by higher sales volumes of titanium alloys and chrome metal.
SG&A expenses increased by 3% in the first quarter of 2023 compared to the same period in 2022, due to an increase in personnel costs and higher variable compensation expense in the current quarter.
AMG Critical Materials Technologies’ EBITDA was $9 million during the quarter compared to $10 million in the same period of 2022. The slight decrease was due to lower sequential chrome prices in the first quarter, partially offset by stronger profitability from our Engineering business.
AMG Engineering signed $76 million in new orders during the first quarter of 2023, driven by strong orders of remelting, turbine blade and heat treatment furnaces, representing a 1.21x book to bill ratio. Order backlog was $237 million as of March 31, 2023, the highest since March 31, 2020.
Financial Review
Tax
AMG recorded an income tax expense of $36 million in the first quarter of 2023, compared to a tax benefit of $1 million in the first quarter of 2022. This variance was mainly driven by higher profitability in AMG Lithium at its Brazil operation coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $2 million tax expense in the first three months of 2023, compared to a $15 million benefit in the same period in 2022. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $21 million in the first quarter of 2023, compared to tax payments of $4 million in the first quarter of 2022. The higher cash payments this quarter were largely a result of higher profitability in Brazil.
Exceptional Items
AMG’s first quarter 2023 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the first quarters of 2023 and 2022 are below:
Exceptional items included in gross profit
Q1 ‘23
Q1 ‘22
Change
Gross profit
$139,842
$75,194
86%
Inventory cost adjustment
510
—
N/A
Restructuring (reversal) expense
(263)
141
N/A
Asset impairment reversal
(767)
—
N/A
Silicon’s partial closure
(156)
—
N/A
Strategic project (reversal) expense
(51)
2,265
N/A
Gross profit excluding exceptional items
139,115
77,600
79%
The asset impairment reversal during the first quarter of 2023 was due to an insurance recovery on previously impaired machinery and equipment.
SG&A
AMG’s first quarter 2023 SG&A expenses were $40 million compared to $37 million in the first quarter of 2022, with the increase largely attributable to higher personnel costs and variable compensation expense mainly driven by the increase in headcount related to the lithium and vanadium expansion projects in our Clean Energy Materials segment.
Liquidity
March 31, 2023
December 31, 2022
Change
Senior secured debt
$339,061
$348,622
(3%)
Cash & cash equivalents
359,525
346,043
4%
Senior secured net (cash) debt
(20,464)
2,579
N/A
Other debt
14,801
14,959
(1%)
Net (cash) debt excluding municipal bond
(5,663)
17,538
N/A
Municipal bond debt
319,185
319,244
—%
Restricted cash
2,911
6,920
(58%)
Net debt
310,611
329,862
(6%)
AMG ended the quarter in a $311 million net debt position. This decrease versus year-end 2022 was mainly due to $10 million of debt repayment and higher unrestricted cash of $14 million, offset by the utilization of restricted cash associated with the municipal bond.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2023, the Company had $360 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $555 million of total liquidity as of March 31, 2023.
Net Finance Costs
AMG’s first quarter 2023 net finance cost was $7 million compared to $9 million in the first quarter of 2022. This variance was mainly driven by foreign exchange gains of $2 million during the quarter primarily due to non-cash intergroup balances.
AMG capitalized $2 million of interest costs in the first quarter of 2023 versus $4 million in the same period in 2022. This decrease is mainly driven by the interest associated with the expansion projects in AMG Lithium and Brazil operations compared to a higher capitalized interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio in prior year.
Outlook
AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.
Regarding AMG’s 5-year guidance, the outstanding progress we have made with our strategic growth projects and given the compelling long-term supply and demand dynamics in the lithium market, we are issuing new guidance to achieve $650 million EBITDA, or more, in 5 years or earlier.
Profit for the period to adjusted EBITDA reconciliation
Q1 ‘23
Q1 ‘22
Profit for the period
$56,447
$29,884
Income tax expense (benefit)
35,927
(1,489)
Net finance cost
6,617
8,919
Equity-settled share-based payment transactions
1,469
1,380
Restructuring (reversal) expense
(263)
141
Silicon’s partial closure
547
—
Inventory cost adjustment
510
—
Asset impairment reversal
(767)
—
Strategic project expense (1)
3,625
4,796
Share of loss of associates
1,032
500
Others
—
102
EBIT
105,144
44,233
Depreciation and amortization
12,967
10,527
EBITDA
118,111
54,760
Notes: (1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Income Statement
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Continuing operations
Revenue
450,590
403,863
Cost of sales
(310,748)
(328,669)
Gross profit
139,842
75,194
Selling, general and administrative expenses
(40,360)
(37,462)
Other income, net
541
82
Net other operating income
541
82
Operating profit
100,023
37,814
Finance income
5,476
299
Finance cost
(12,093)
(9,218)
Net finance cost
(6,617)
(8,919)
Share of loss of associates and joint ventures
(1,032)
(500)
Profit before income tax
92,374
28,395
Income tax (expense) benefit
(35,927)
1,489
Profit for the period
56,447
29,884
Profit attributable to:
Shareholders of the Company
56,221
29,115
Non-controlling interests
226
769
Profit for the period
56,447
29,884
Earnings per share
Basic earnings per share
1.76
0.91
Diluted earnings per share
1.72
0.89
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
March 31, 2023 Unaudited
December 31, 2022
Assets
Property, plant and equipment
833,444
797,611
Goodwill and other intangible assets
41,757
41,404
Derivative financial instruments
28,015
33,042
Other investments
46,213
29,324
Deferred tax assets
36,813
37,181
Restricted cash
1,860
5,875
Other assets
9,245
8,612
Total non-current assets
997,347
953,049
Inventories
266,214
277,311
Derivative financial instruments
2,951
3,516
Trade and other receivables
189,983
162,548
Other assets
116,434
121,834
Current tax assets
7,912
7,289
Restricted cash
1,051
1,045
Cash and cash equivalents
359,525
346,043
Total current assets
944,070
919,586
Total assets
1,941,417
1,872,635
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
March 31, 2023 Unaudited
December 31, 2022
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(10,730)
(14,685)
Other reserves
(43,449)
(44,869)
Retained earnings (deficit)
60,898
(4,461)
Equity attributable to shareholders of the Company
561,287
490,553
Non-controlling interests
34,376
27,296
Total equity
595,663
517,849
Liabilities
Loans and borrowings
660,246
661,270
Lease liabilities
44,020
44,224
Employee benefits
118,734
117,160
Provisions
12,512
12,361
Deferred revenue
20,000
20,000
Other liabilities
4,157
15,009
Derivative financial instruments
171
284
Deferred tax liabilities
25,777
27,269
Total non-current liabilities
885,617
897,577
Loans and borrowings
5,948
15,164
Lease liabilities
4,720
4,710
Short-term bank debt
6,853
6,391
Deferred revenue
37,719
28,277
Other liabilities
68,572
69,917
Trade and other payables
231,407
240,101
Derivative financial instruments
4,705
7,746
Advance payments from customers
44,446
51,054
Current tax liability
41,343
23,548
Provisions
14,424
10,301
Total current liabilities
460,137
457,209
Total liabilities
1,345,754
1,354,786
Total equity and liabilities
1,941,417
1,872,635
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash from (used in) operating activities
Profit for the period
56,447
29,884
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax expense (benefit)
35,927
(1,489)
Depreciation and amortization
12,967
10,527
Asset impairment reversal
(767)
—
Net finance cost
6,617
8,919
Share of loss of associates and joint ventures
1,032
500
Loss (gain) on sale or disposal of property, plant and equipment
9
(55)
Equity-settled share-based payment transactions
1,469
1,380
Movement in provisions, pensions, and government grants
2,755
(1,685)
Working capital and deferred revenue adjustments
4,905
(41,819)
Cash generated from operating activities
121,361
6,162
Finance costs paid, net
(7,012)
(5,917)
Income tax paid
(20,954)
(3,899)
Net cash from (used in) operating activities
93,395
(3,654)
Cash used in investing activities
Proceeds from sale of property, plant and equipment
—
59
Acquisition of property, plant and equipment and intangibles
(44,718)
(43,763)
Investments in associates and joint ventures
(17,500)
(500)
Use of restricted cash
4,009
31,295
Interest received on restricted cash
19
9
Capitalized borrowing cost paid
(5,739)
(7,886)
Other
3
8
Net cash used in investing activities
(63,926)
(20,778)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the quarter ended March 31
In thousands of US dollars
2023
2022
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
423
1,835
Repayment of borrowings
(10,750)
(1,718)
Net repurchase of common shares
(6,672)
(1,523)
Payment of lease liabilities
(1,316)
(1,291)
Net cash used in financing activities
(18,315)
(2,697)
Net increase (decrease) in cash and cash equivalents
11,154
(27,129)
Cash and cash equivalents at January 1
346,043
337,877
Effect of exchange rate fluctuations on cash held
2,328
(2,266)
Cash and cash equivalents at March 31
359,525
308,482
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 23March 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that Zinnwald Lithium Plc (“Zinnwald”) (ZNWD, AIM) will issue 118,996,738 newly issued ordinary shares to AMG for a total subscription amount of £12,387,560.40 resulting in a 25.13% shareholding.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About Zinnwald
Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 22March 2023(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that it has agreed with Zinnwald Lithium Plc (“Zinnwald”) (ZNWD, AIM) to subscribe for up to 124 million newly issued ordinary shares as a cornerstone investor to Zinnwald’s accelerated book build. The shares will be subscribed for at a 10% premium to the 20-day Volume Weighted Average Price (“VWAP”) as of the close of market on March 20, 2023, that is, a price of 10.41 pence per share. Upon admission of the newly issued ordinary shares, expected on March 29, AMG will become a 25% shareholder of Zinnwald.
Dr. Heinz Schimmelbusch, AMG’s CEO, commented, “AMG’s investment in Zinnwald is a valuable strategic opportunity. As a partner with Zinnwald, together we will pursue a definitive feasibility study for their project in Eastern Germany. Establishing a raw material base in Germany close to our Bitterfeld operations has obvious logistical and strategic benefits for AMG, and we look forward to working with Zinnwald on this exciting project.”
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About Zinnwald
Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe’s fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe’s chemical and automotive industries and has the potential to be one of Europe’s more advanced battery grade lithium projects.
About AMG
AMG’s mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG’s products include highly engineered systems to reduce CO2 in aerospace engines, as well as critical materials addressing CO2 reduction in a variety of other end use markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 6109754979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam, 22 februari 2023(gereguleerde informatie) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) meldde een omzet van $ 390 miljoen in het vierde kwartaal van 2022, een stijging van 18% ten opzichte van het vierde kwartaal van 2021. De EBITDA van het vierde kwartaal van 2022 van $ 104 miljoen was meer dan het dubbele van het vierde kwartaal van 2021 en stuwde AMG naar een record-EBITDA van $ 343 miljoen voor het hele jaar.
In 1.000 USD
BJ ‘22
BJ ‘21
Wijziging
Omzet
$1.642.774
$1.204.666
36%
EBITDA (1)
342.550
136.676
151%
Kasmiddelen uit bedrijfsactiviteiten
167.567
90.788
85%
Nettoresultaat toerekenbaar aan aandeelhouders
187.589
13.771
WPA – Volledig verwaterd
5,73
0,44
Rendement op geïnvesteerd kapitaal
30,8%
11,9%
Opmerking:
EBITDA wordt gedefinieerd als EBIT gecorrigeerd voor afschrijvingen en waardeverminderingen.
Dr. Heinz Schimmelbusch, voorzitter van de Raad van Bestuur en CEO, zei: “De EBITDA, omzet, brutowinst, operationele kasstromen, het rendement van het geïnvesteerde kapitaal en het nettoresultaat van AMG voor het volledige jaar 2022 waren het hoogst in de geschiedenis van het bedrijf met aanzienlijke marges. Dit resultaat is te danken aan het AMG Clean Energy Materials-segment, met name AMG Lithium en zijn Braziliaanse activiteiten met een EBITDA-bijdrage van $ 215 miljoen, of 63% van de totale EBITDA voor het jaar. Bovendien overschreed AMG $ 100 miljoen aan EBITDA voor het tweede opeenvolgende kwartaal. De EBITDA voor het vierde kwartaal van 2022 was $ 104 miljoen vergeleken met $ 44 miljoen in het vierde kwartaal van 2021, een stijging van $ 60 miljoen, of 137%. Onze Enabling CO2 Reduction Portfolio (ECO2RP) in 2022 maakte 99,4 miljoen ton CO2-reductie mogelijk, 26% meer dan de 79,0 miljoen ton CO2-reductie in 2021.”
Vooruitzicht
AMG herbevestigt zijn verwachting voor het volledige jaar 2023 om de EBITDA van $ 400 miljoen te overschrijden.
AMG verwacht dat de totale personeelsbezetting van ongeveer 3.400 aan het einde van 2022 met 5% zal toenemen als gevolg van de aanwerving in verband met de opmars van de vanadiumuitbreiding in Ohio en de lithiumuitbreiding in Duitsland.
De kapitaaluitgaven voor 2023 zullen naar verwachting tussen $ 175 miljoen en $ 200 miljoen bedragen, voornamelijk gedreven door de uitbreiding van lithiumconcentraat in Brazilië en uitgaven in verband met de bouw van de lithiumhydroxidefabriek in Duitsland.
Met betrekking tot de financiering in 2023 heeft AMG zijn termijnlening van $ 350 miljoen en zijn kredietfaciliteit van $ 200 miljoen in november 2021 geherfinancierd, waardoor de looptijden van de kredietfaciliteit en de termijnlening werden verlengd tot respectievelijk 2026 en 2028. AMG heeft geen significante schuldverplichtingen op de korte termijn. En hoewel we onze financiële structuur consequent willen optimaliseren, kan onze huidige liquiditeit van $ 532 miljoen alle goedgekeurde kapitaaluitbreidingsprojecten en alle andere financiële verplichtingen volledig financieren.
Daarnaast bevestigen we onze tweeledige inzet om onze CO2-uitstoot te verminderen en onze CO2-besparingen tot en met 2030 te verhogen.
Strategische hoogtepunten
Lithium
Het project voor de uitbreiding van de spodumeenproductie in AMG Brasil vordert. Het project zal de lage-kostenpositie van AMG versterken. Het doel is om in de tweede helft van 2023 op volle capaciteit te zijn.
De AMG Lithium-raffinaderij in Bitterfeld, Duitsland, Europa’s eerste lithiumhydroxide-raffinaderij, is in aanbouw en de inbedrijfstelling van de eerste 20.000 ton module van de lithiumhydroxide-upgrader van batterijkwaliteit zal in het vierde kwartaal van 2023 beginnen.
AMG Lithium heeft een niet-bindend memorandum van overeenstemming ondertekend met FREYR Battery. De basis daarvan is dat AMG Lithium tussen 3.000 en 5.000 ton lithiumhydroxide van batterijkwaliteit per jaar aan FREYR zal leveren.
AMG Brasil, JX Nippon Mining & Metals Corporation (“JXNMM”) en TANIOBIS GmbH kondigden in december 2022 een strategisch partnerschap aan voor de productie en levering van tantaalconcentraat uit de Mibra-mijn van AMG in Brazilië. JXNMM zal investeren in de uitbreiding van de productie van tantaalconcentraat die plaatsvindt in combinatie met de reeds aangekondigde uitbreiding van de spodumeencapaciteit van AMG. Al het tantaal-preconcentraat zal worden verkocht aan TANIOBIS, wat stabiliteit op lange termijn biedt in de verkoop van tantaal en overeenkomstige bijproductkredieten voor de productiekosten van lithium voor AMG Brasil.
Vanadium
AMG heeft de voltooiing van de nieuwe recyclinginstallatie voor gebruikte vanadiumkatalysatoren in Zanesville, Ohio, afgerond. De activiteiten begonnen op 29 oktober 2022 en we streven naar volledige productiecapaciteit in het tweede kwartaal van 2023.
Shell & AMG Recycling B.V. (“SARBV”) zet zijn projecten in het Midden-Oosten voort, met name de eerste fase van het Supercenter-project op basis van langlopende leveringsovereenkomsten met Saudi Arabian Oil Company (“Aramco”). De optimalisatie van het fabrieksontwerp, de locatieselectie en de vergunningsactiviteiten zijn aan de gang en het FEL3-partnerschap met Hatch begon in december 2022.
AMG LIVA heeft in november 2022 zijn eerste industriële batterij – het Hybrid Energy Storage System (“HESS”) – in volledig automatische bedrijfsmodus gezet in de fabriek van AMG Graphite in Hauzenberg.
AMG LIVA verkocht zijn eerste HESS in december 2022 aan een derde partij, Wipotec GmbH, een toonaangevende wereldwijde leverancier van intelligente weeg- en inspectietechnologie in Zuid-Duitsland. De batterij wordt geïntegreerd in het stroomvoorzieningssysteem van de faciliteit.
In januari 2023 heeft AMG de bouw goedgekeurd van een fabriek voor vanadiumelektrolyten bij zijn dochteronderneming AMG Titanium in Neurenberg, Duitsland. De doelcapaciteit is 6.000 m³ vanadiumelektrolyten. De basistechniek voor de fabriek werd in november voltooid, de CAPEX zal naar verwachting $ 15 miljoen bedragen en de productie zal naar verwachting eind 2023 beginnen.
Financiële hoogtepunten
De omzet steeg met 18% naar $ 390 miljoen in het vierde kwartaal van 2022, van $ 330 miljoen in het vierde kwartaal van 2021. Op jaarbasis steeg de omzet met 36%.
De EBITDA bedroeg $ 104 miljoen in het vierde kwartaal van 2022, een stijging van 137% ten opzichte van de EBITDA van $ 44 miljoen in het vierde kwartaal van 2021. De EBITDA voor het volledige jaar van $ 343 miljoen is 151% hoger dan het voorgaande jaar.
Het rendement op het geïnvesteerde kapitaal op jaarbasis bedroeg 30,8% voor 2022, meer dan het dubbele van 11,9% voor 2021.
De kasstroom uit bedrijfsactiviteiten bedroeg $ 168 miljoen voor het volledige jaar 2022, vergeleken met $ 91 miljoen in 2021, gedreven door de hoge winstgevendheid van AMG Lithium in Brazilië.
Het nettoresultaat toe te schrijven aan aandeelhouders voor het volledige jaar 2022 was $ 188 miljoen, wat $ 5,73 verwaterde winst per aandeel opleverde, vergeleken met $ 0,44 in 2021.
De liquiditeit van AMG bedroeg per 31 december 2022 $ 532 miljoen, met $ 346 miljoen aan onbeperkte liquide middelen en $ 186 miljoen aan doorlopend krediet.
Het totaal voor 2022 voorgestelde dividend bedraagt € 0,70 per gewoon aandeel, inclusief het interimdividend van € 0,30, betaald op 10 augustus 2022.
Belangrijkste cijfers
In 1.000 USD
K4 ‘22
K4 ‘21
Wijziging
BJ ‘22
BJ ‘21
Wijziging
Omzet
$390.004
$330.360
18%
$1.642.774
$1.204.666
36%
Brutowinst
119.981
61.797
94%
409.486
208.243
97%
Brutomarge
30,8%
18,7%
24,9%
17,3%
Bedrijfswinst
82.319
22.295
269%
307.059
57.141
437%
Operationele marge
21,1%
6,7%
18,7%
4,7%
Nettoresultaat toe te schrijven aan aandeelhouders
60.697
5.705
964%
187.589
13.771
1.262%
WPA – Volledig verwaterd
1,85
0,18
928%
5,73
0,44
1.202%
EBIT (1)
91.719
32.678
181%
297.251
92.991
220%
EBITDA (2)
104.061
43.885
137%
342.550
136.676
151%
EBITDA-marge
26,7%
13,3%
20,9%
11,3%
Kasmiddelen uit bedrijfsactiviteiten
56.969
30.225
88%
167.567
90.788
85%
Opmerkingen:
EBIT wordt gedefinieerd als inkomsten vóór rente en inkomstenbelasting. EBIT is exclusief herstructurering, waardevermindering van activa, voorraadkostenaanpassingen, milieuvoorzieningen, uitzonderlijke juridische kosten en andere uitzonderlijke posten, op aandelen afgewikkelde betalingen en strategische kosten.
EBITDA wordt gedefinieerd als EBIT gecorrigeerd voor afschrijvingen en waardeverminderingen.
Operationele beoordeling
AMG Clean Energy Materials
K4 ‘22
K4 ‘21
Wijziging
BJ ‘22
BJ ‘21
Wijziging
Omzet
$176.065
$115.405
53%
$667.804
$381.475
75%
Brutowinst
81.583
27.950
192%
267.862
75.095
257%
Brutowinst vóór eenmalige posten
82.784
29.038
185%
273.417
80.264
241%
Bedrijfswinst
69.779
16.301
328%
222.590
22.476
890%
EBITDA
80.347
25.753
212%
259.480
66.622
289%
De omzet van AMG Clean Energy Materials steeg met 53% in vergelijking met het vierde kwartaal van 2021 tot $ 176 miljoen, voornamelijk gedreven door hogere prijzen in vanadium-, tantaal- en lithiumconcentraten, evenals verhoogde verkoopvolumes van vanadium- en tantaalconcentraat. De hogere prijzen en volumes in 2022 stuwden de omzet voor het segment 75% hoger dan in 2021.
De brutowinst vóór eenmalige posten over het kwartaal steeg met 185% ten opzichte van dezelfde periode in het voorgaande jaar. De brutowinst van het segment over het gehele jaar 2022 vóór eenmalige posten groeide met 241% ten opzichte van 2021, voornamelijk door de toegenomen prijsomgeving.
De VAA-kosten in het vierde kwartaal van 2022 kwamen overeen met dezelfde periode in 2021, namelijk $ 12 miljoen. De VAA-kosten voor het volledige jaar 2022 waren 11% hoger dan in 2021, grotendeels als gevolg van verhoogde professionele vergoedingen in verband met strategische projecten in 2022, gecompenseerd door lagere op aandelen gebaseerde compensatie.
De EBITDA van het vierde kwartaal van 2022 steeg met 212%, naar $ 80 miljoen, van $ 26 miljoen in het vierde kwartaal van 2021, als gevolg van de verbeterde brutowinst zoals hierboven vermeld. De EBITDA voor het volledige jaar 2022 van het segment van $ 259 miljoen was 289% hoger dan de EBITDA voor 2021, grotendeels gedreven door de lithiumdivisie. De winstgevendheid van vanadium werd in het vierde kwartaal van 2022 beïnvloed door een sequentiële daling van de indexprijzen van 16% ten opzichte van het derde kwartaal en de impact van opstartkosten voor Zanesville.
In het vierde kwartaal van 2022 werd in totaal 21.329 droge metrische ton (“dmt”) spodumeen verkocht. De gemiddelde gerealiseerde verkoopprijs bedroeg $ 3.682/dmt CIF China voor het kwartaal. De gemiddelde kosten per ton voor het kwartaal bedroegen $ 228/dmt CIF China. Deze uitzonderlijke kosten per ton resultaat werd gedreven door hoge verkoopvolumes van tantaalconcentraat in het kwartaal en bracht een driemaandelijks EBITDA-cijfer voor AMG Brasil van $ 73 miljoen.
Voor het gehele jaar 2022 is in totaal 86.713 dmt spodumeen verkocht. De gemiddelde gerealiseerde verkoopprijs bedroeg $ 2.805/dmt CIF China en de gemiddelde kosten per ton voor het volledige jaar bedroegen $ 461/dmt CIF China. De totale EBITDA voor AMG Brasil bedroeg $ 215 miljoen.
AMG Critical Minerals
K4 ‘22
K4 ‘21
Wijziging
BJ ‘22
BJ ‘21
Wijziging
Omzet
$69.242
$79.422
(13%)
$364.502
$308.523
18%
Brutowinst
19.017
11.189
70%
46.721
48.735
(4%)
Brutowinst vóór eenmalige posten
18.641
11.379
64%
57.928
48.690
19%
Bedrijfswinst
10.961
2.584
324%
63.995
20.181
217%
EBITDA
14.001
6.459
117%
38.280
31.200
23%
De omzet van AMG Critical Minerals voor het vierde kwartaal van 2022 daalde met $ 10 miljoen, of 13%, naar $ 69 miljoen, voornamelijk als gevolg van lagere volumes in het segment. Op jaarbasis steeg de omzet met 18% ten opzichte van 2021.
De brutowinst vóór eenmalige posten van $ 19 miljoen in het vierde kwartaal was 64% hoger in vergelijking met het vierde kwartaal van 2021. De brutowinst van het segment over het gehele jaar 2022 vóór eenmalige posten was 19% hoger dan in 2021, grotendeels gedreven door de verbeterde prijsomgeving en gunstige energiecontracten voor de productie van silicium in het vierde kwartaal.
De VAA-kosten in het vierde kwartaal van 2022 daalden met 20% tot $ 7 miljoen, vergeleken met dezelfde periode in 2021. Dit werd grotendeels veroorzaakt door lagere op aandelen gebaseerde compensatiekosten in het huidige kwartaal die verband hielden met een terugboeking die in het voorgaande jaar was geregistreerd. De VAA-kosten voor het gehele jaar 2022 lagen iets lager, $ 0,6 miljoen lager, dan in 2021.
De EBITDA van het vierde kwartaal van 2022 steeg met 117% ten opzichte van dezelfde periode in 2021, tot $ 14 miljoen, als gevolg van de verbeterde brutowinst zoals hierboven vermeld en gunstige energiecontracten bij AMG Silicon in het kwartaal. De verbeterde prijzen in 2022 leidden tot een stijging van 23% van de EBITDA voor het gehele jaar voor het segment ten opzichte van 2021.
Met ingang van 1 januari 2023 heeft AMG zijn siliciummetaalfabriek in Pocking, Duitsland, in onderhoud genomen. De fabriek zal in maart 2023 opnieuw opstarten en één oven in bedrijf nemen. De operationele parameters van de siliciumactiviteiten zullen voortdurend worden herzien en waar nodig worden aangepast in overeenstemming met gunstige en voorspelbare marktomstandigheden. Vanwege de opgemerkte onderbrekingen in siliciumactiviteiten, zal de financiële impact van het bedrijf worden uitgesloten van de EBITDA tijdens deze periode van abnormale activiteiten. De financiële impact van het onderhoudsprogramma heeft geen significante invloed op de algemene verwachte financiële resultaten van AMG voor 2023.
AMG Critical Materials Technologies
K4 ‘22
K4 ‘21
Wijziging
BJ ‘22
BJ ‘21
Wijziging
Omzet
$144.697
$135.533
7%
$610.468
$514.668
19%
Brutowinst
19.381
22.658
(14%)
94.903
84.413
12%
Brutowinst vóór eenmalige posten
20.745
22.388
(7%)
96.449
84.309
14%
Bedrijfswinst
1.579
3.410
(54%)
20.474
14.484
41%
EBITDA
9.713
11.673
(17%)
44.790
38.854
15%
De omzet van AMG Critical Materials Technologies in het vierde kwartaal van 2022 steeg met $ 9 miljoen, of 7%, vergeleken met dezelfde periode in 2021. Deze verbetering werd gedreven door hogere verkoopvolumes van titaniumaluminiden en hogere prijzen voor chroommetaal. De omzet over het hele jaar 2022 was 19% hoger dan het voorgaande jaar en de brutowinst vóór eenmalige posten voor 2022 van $ 96 miljoen was 14% hoger dan de $ 84 miljoen in 2021, grotendeels als gevolg van de verbeterde prijsomgeving ten opzichte van het voorgaande jaar in verband met het voortdurende herstel van de ruimtevaartmarkt na de pandemie.
In de eerste helft van het jaar hadden marktverstoringen in verband met de Russische invasie van Oekraïne invloed op de toeleveringsketen van chroommetaal, waardoor de prijs van grondstoffen en de beperkte beschikbaarheid sterk stegen. Ter bescherming tegen operationele onderbrekingen heeft het bedrijf zich verzekerd van aanvullende grondstofvolumes tegen marktvoorwaarden aan vaste prijzen. In het vierde kwartaal werden de verstoringen van de toeleveringsketen verlicht en daalden de prijzen drastisch. Dit had tot gevolg dat de chroommarges van het bedrijf in het vierde kwartaal negatief werden beïnvloed en dat de voorraden met $ 1,6 miljoen werden afgewaardeerd.
De VAA-kosten zijn in het vierde kwartaal van 2022 met 7% gedaald ten opzichte van dezelfde periode in 2021, als gevolg van lagere op aandelen gebaseerde kosten in het huidige kwartaal die verband houden met een terugboeking in het voorgaande jaar.
De EBITDA van AMG Critical Materials Technologies bedroeg $ 10 miljoen gedurende het kwartaal, vergeleken met $ 12 miljoen in dezelfde periode van 2021. De daling is het gevolg van de hierboven vermelde verstoring van de chroommarkt, gecompenseerd door een sterkere winstgevendheid van onze Engineering-activiteiten. De EBITDA voor het hele jaar 2022 voor het segment van $ 45 miljoen was 15% hoger dan in 2021. Dit was voornamelijk het gevolg van het aanhoudende herstel in de luchtvaartsector in 2022.
AMG Engineering heeft in het vierde kwartaal van 2022 $ 67 miljoen aan nieuwe orders ondertekend, gedreven door sterke orders van turbinebladen en inductieovens, wat een 1,28x boek-tot-rekeningverhouding vertegenwoordigt. In januari 2023 werd de sterke orderinname van het bedrijf voortgezet met $ 44 miljoen aan nieuwe orders, voornamelijk als gevolg van de verkoop van turbinebladcoaters. De orderachterstand was $ 220 miljoen per 31 december 2022, de hoogste waarde sinds 31 maart 2020.
Financiële beoordeling
Belasting
AMG boekte in 2022 een belastinglast van $ 84 miljoen, vergeleken met $ 9 miljoen in 2021. Dit verschil werd voornamelijk gedreven door verbeterde bedrijfsresultaten in AMG Lithium bij zijn Braziliaanse activiteiten in combinatie met bewegingen in de Braziliaanse real. De effecten van de Braziliaanse real zorgden voor een voordeel van $ 7 miljoen in 2022, vergeleken met een belastingvoordeel van $ 4 miljoen in 2021. Schommelingen in de wisselkoers van de Braziliaanse real zijn van invloed op de waardering van de netto uitgestelde belastingposities van het bedrijf in verband met onze activiteiten in Brazilië.
AMG betaalde belastingen ter waarde van $ 42 miljoen in 2022, vergeleken met belastingbetalingen van $ 10 miljoen in 2021. De hogere contante betalingen in 2022 waren grotendeels het gevolg van verbeterde bedrijfsresultaten.
Uitzonderlijke posten
De brutowinst van AMG over het vierde kwartaal en het volledige jaar 2022 omvat uitzonderlijke posten, die niet zijn opgenomen in de berekening van de EBITDA.
Hieronder vindt u een overzicht van uitzonderlijke posten opgenomen in de brutowinst in 2022 en 2021:
Uitzonderlijke posten opgenomen in brutowinst
K4 ‘22
K4 ‘21
Wijziging
BJ ‘22
BJ ‘21
Wijziging
Brutowinst
$119.981
$61.797
94%
$409.486
$208.243
97%
Aanpassing voorraadkosten
1.589
—
N.v.t.
1.589
1.164
37%
Herstructureringskosten (terugboeking)
389
(140)
N.v.t.
582
522
11%
Kosten bijzondere waardevermindering (terugneming) van activa
(990)
153
N.v.t.
10.597
(711)
N.v.t.
Strategische projectkosten
1.201
1.501
(20%)
5.540
4.045
37%
Overige
—
(506)
N.v.t.
—
—
N.v.t.
Brutowinst exclusief uitzonderlijke posten
122.170
62.805
95%
427.794
213.263
101%
Energiekosten
De totale energiekosten waren $ 16 miljoen hoger in 2022 ten opzichte van 2021 als gevolg van de stijgingen in gas- en elektriciteitskosten gedurende het jaar. Het grootste deel van deze stijging vond plaats in onze siliciumdivisie in Duitsland, maar die onderneming profiteerde van volledig afgedekte energiekosten. Andere bedrijfseenheden profiteerden van langdurige elektriciteitscontracten zonder prijs-escalatieclausules, en de bedrijfseenheden die wel te maken hadden met stijgingen van de energiekosten, konden de meeste van deze verhoogde kosten doorberekenen aan hun klanten.
VAA
De VAA-kosten van AMG in het vierde kwartaal van 2022 waren $ 37 miljoen, vergeleken met $ 40 miljoen in het vierde kwartaal van 2021, waarbij de daling als gevolg van lagere op aandelen gebaseerde compensatiekosten gepaard ging met een terugboeking in het voorgaande jaar.
De VAA-kosten voor het volledige jaar 2022 waren $ 148 miljoen, 6% hoger dan in 2021, en het verschil was als gevolg van verhoogde professionele kosten in verband met strategische projecten tijdens de huidige periode, gecompenseerd door lagere op aandelen gebaseerde compensatiekosten.
Liquiditeit
31 december 2022
31 december 2021
Wijziging
Senior gedekte schuld
$348.622
$371.897
(6%)
Kasmiddelen en equivalenten daarvan
346.043
337.877
2%
Senior gedekte nettoschuld
2.579
34.020
(92%)
Overige schuld
14.959
24.398
(39%)
Nettoschuld exclusief gemeentelijke obligatie
17.538
58.418
(70%)
Gemeentelijke obligatieschuld
319.244
319.476
— %
Beperkte kasmiddelen
6.920
93.434
(93%)
Nettoschuld
329.862
284.460
16%
AMG eindigde het jaar in een nettoschuldpositie van $ 330 miljoen. Deze stijging was voornamelijk het gevolg van de aanzienlijke investeringen in groei-initiatieven gedurende het jaar, met name in onze vestiging in Zanesville, waarbij de aan de gemeentelijke obligatielening gekoppelde beperkte kasmiddelen werden gebruikt. Dit gebruik van beperkte kasmiddelen werd gecompenseerd door $ 34 miljoen aan schuldaflossing en hogere onbeperkte kasmiddelen.
AMG bleef in het vierde kwartaal een sterke balans en adequate liquiditeitsbronnen aanhouden. Per 31 december 2022 had het bedrijf $ 346 miljoen aan onbeperkte kasmiddelen en $ 186 miljoen beschikbaar op zijn doorlopende kredietfaciliteit. Als zodanig had AMG per 31 december 2022 $ 532 miljoen aan totale kasmiddelen.
Netto financiële kosten
De netto financiële inkomsten van AMG in het vierde kwartaal van 2022 bedroegen $ 4 miljoen, vergeleken met een kostenpost van $ 13 miljoen in het vierde kwartaal van 2021. Dit verschil werd voornamelijk veroorzaakt door wisselkoerswinsten van $ 10 miljoen tijdens het kwartaal, voornamelijk als gevolg van niet-contante intergroepsaldi.
AMG heeft in het vierde kwartaal van 2022 $ 1 miljoen aan rentekosten gekapitaliseerd versus $ 4 miljoen in dezelfde periode in 2021, gedreven door rente in verband met de belastingvrije gemeentelijke obligatie van het bedrijf ter ondersteuning van de vanadiumuitbreiding in Ohio. Deze daling is te wijten aan een deel van de rentekosten van gemeentelijke obligaties die niet langer worden geactiveerd door de toename van de productie in onze vestiging in Zanesville.
Definitief dividendvoorstel
AMG is voornemens over het boekjaar 2022 een dividend van € 0,70 per gewoon aandeel vast te stellen. Het interimdividend van € 0,30, uitgekeerd op 10 augustus 2022, zal in mindering worden gebracht op het aan aandeelhouders uit te keren bedrag. Het voorgestelde einddividend per gewoon aandeel bedraagt derhalve € 0,40.
Op de agenda van de jaarlijkse algemene vergadering van 4 mei 2023 zal een voorstel tot besluit over de definitieve dividenduitkering worden geplaatst.
Winst over de periode tot aangepaste EBITDA-afstemming
K4 ‘22
K4 ‘21
BJ ‘22
BJ ‘21
Winst over de periode
$62.669
$4.139
$190.771
$13.779
Kosten inkomstenbelasting
23.827
5.293
84.097
8.707
Netto financieringskosten (inkomsten)
(4.177)
12.644
30.941
33.602
Door aandelen afgewikkelde op aandelen gebaseerde betalingstransacties
1.414
6.883
5.552
10.206
Herstructureringskosten (terugboeking)
389
(140)
582
522
Netto contractafrekeningen (1)
971
—
(45.436)
—
Aanpassing voorraadkosten
1.589
—
1.589
1.164
Kosten bijzondere waardevermindering (terugneming) van activa (1)
(990)
153
10.597
(711)
Milieuvoorziening
143
230
133
11.941
Strategische projectkosten (2)
5.885
3.769
17.070
12.157
Aandeel verlies van medewerkers
—
219
1.250
1.053
Overige
(1)
(512)
105
571
EBIT
91.719
32.678
297.251
92.991
Afschrijvingen en waardeverminderingen
12.342
11.207
45.299
43.685
EBITDA
104.061
43.885
342.550
136.676
Opmerkingen:
In verband met de sluiting van siliciummetaal boekte AMG inkomsten uit de verkoop van een bestaand leveringscontract dat een positieve invloed had op de bedrijfswinst voor het jaar. Deze baten werden gecompenseerd door een afwikkeling met een grote klant en een bijzondere waardevermindering van bestaande activa.
Het bedrijf bevindt zich in de eerste ontwikkelings- en uitbreidingsfase voor verschillende strategische uitbreidingsprojecten, waaronder het uitbreidingsproject van AMG Vanadium, de joint venture met Shell, het hybride lithium vanadium Redox-stroomaccusysteem en de lithiumuitbreiding in Duitsland, waarvoor in de loop van het kwartaal projectkosten zijn gemaakt, maar die nog niet operationeel zijn. AMG past de EBITDA aan voor deze uitzonderlijke kosten.
AMG Advanced Metallurgical Group N.V.
Geconsolideerde winst- en verliesrekening
Voor het kwartaal eindigend op 31 december
In 1.000 USD
2022
2021
Niet-gecontroleerd
Niet-gecontroleerd
Voortzetting van de activiteiten
Omzet
390.004
330.360
Verkoopkosten
(270.023)
(268.563)
Brutowinst
119.981
61.797
Verkoop-, algemene en administratieve kosten
(36.579)
(39.501)
Milieukosten
(143)
(230)
Overige kosten
(940)
—
Overige inkomsten
—
229
Netto overige bedrijfskosten
(1.083)
(1)
Bedrijfswinst
82.319
22.295
Financieringsinkomsten
5.459
1.107
Financiële kosten
(1.282)
(13.751)
Netto financieringsinkomsten (kosten)
4.177
(12.644)
Aandeel verlies van geassocieerde deelnemingen en joint ventures
—
(219)
Winst vóór inkomstenbelasting
86.496
9.432
Kosten inkomstenbelasting
(23.827)
(5.293)
Winst over de periode
62.669
4.139
Winst toerekenbaar aan:
Aandeelhouders van het bedrijf
60.697
5.705
Minderheidsbelangen
1.972
(1.566)
Winst over de periode
62.669
4.139
Winst per aandeel
Basiswinst per aandeel
1,90
0,18
Verwaterde winst per aandeel
1,85
0,18
AMG Advanced Metallurgical Group N.V.
Geconsolideerde winst- en verliesrekening
Voor het jaar eindigend op 31 december
In 1.000 USD
2022
2021
Niet-gecontroleerd
Voortzetting van de activiteiten
Omzet
1.642.774
1.204.666
Verkoopkosten
(1.233.288)
(996.423)
Brutowinst
409.486
208.243
Verkoop-, algemene en administratieve kosten
(147.963)
(139.576)
Milieukosten
(133)
(11.941)
Overige kosten
(14.411)
—
Overige inkomsten
60.080
415
Netto overige bedrijfsopbrengsten (uitgaven)
45.536
(11.526)
Bedrijfswinst
307.059
57.141
Financieringsinkomsten
9.061
1.938
Financiële kosten
(40.002)
(35.540)
Netto financieringskosten
(30.941)
(33.602)
Aandeel verlies van geassocieerde deelnemingen en joint ventures
(1.250)
(1.053)
Winst vóór inkomstenbelasting
274.868
22.486
Kosten inkomstenbelasting
(84.097)
(8.707)
Winst over de periode
190.771
13.779
Winst toerekenbaar aan:
Aandeelhouders van het bedrijf
187.589
13.771
Minderheidsbelangen
3.182
8
Winst over de periode
190.771
13.779
Winst per aandeel
Basiswinst per aandeel
5,87
0,44
Verwaterde winst per aandeel
5,73
0,44
AMG Advanced Metallurgical Group N.V.
Geconsolideerde balans
In 1.000 USD
31 december 2022 Niet-gecontroleerd
31 december 2021
Activa
Materiële vaste activa
797.611
693.624
Goodwill en andere immateriële activa
41.404
44.684
Afgeleide financiële instrumenten
33.042
95
Overige beleggingen
29.324
29.830
Uitgestelde belastingvorderingen
37.181
52.937
Beperkte kasmiddelen
5.875
85.023
Overige activa
8.612
8.471
Totaal vaste activa
953.049
914.664
Voorraden
277.311
218.320
Afgeleide financiële instrumenten
3.516
4.056
Handels- en overige vorderingen
162.548
145.435
Overige activa
121.834
65.066
Actuele belastingvorderingen
7.289
5.888
Beperkte kasmiddelen
1.045
8.411
Kasmiddelen en kasequivalenten
346.043
337.877
Totaal vlottende activa
919.586
785.053
Totaal activa
1.872.635
1.699.717
AMG Advanced Metallurgical Group N.V.
Geconsolideerde balans
(vervolg)
In 1.000 USD
31 december 2022 Niet-gecontroleerd
31 december 2021
Eigen vermogen
Uitgegeven kapitaal
853
853
Agioreserve
553.715
553.715
Eigen aandelen
(14.685)
(16.596)
Overige reserves
(44.869)
(96.421)
Ingehouden winst (tekort)
(4.461)
(173.117)
Eigen vermogen toerekenbaar aan aandeelhouders van het bedrijf
490.553
268.434
Minderheidsbelangen
27.296
25.718
Totaal eigen vermogen
517.849
294.152
Aansprakelijkheid
Leningen en kredieten
661.270
675.384
Leaseverplichtingen
44.224
45.692
Voordelen voor werknemers
117.160
162.628
Voorzieningen
12.361
14.298
Uitgestelde inkomsten
20.000
22.341
Overige verplichtingen
15.009
11.098
Afgeleide financiële instrumenten
284
2.064
Uitgestelde belastingverplichtingen
27.269
5.617
Totaal langlopende verplichtingen
897.577
939.122
Leningen en kredieten
15.164
27.341
Leaseverplichtingen
4.710
4.857
Kortlopende bankschuld
6.391
13.046
Uitgestelde inkomsten
28.277
18.478
Overige verplichtingen
69.917
80.672
Handels- en andere schulden
240.101
252.765
Afgeleide financiële instrumenten
7.746
6.010
Voorschotten van klanten
51.054
35.091
Huidige belastingverplichting
23.548
10.586
Voorzieningen
10.301
17.597
Totaal kortlopende verplichtingen
457.209
466.443
Totaal passiva
1.354.786
1.405.565
Totaal eigen vermogen en schulden
1.872.635
1.699.717
AMG Advanced Metallurgical Group N.V.
Geconsolideerd kasstroomoverzicht
Voor het jaar eindigend op 31 december
In 1.000 USD
2022
2021
Niet-gecontroleerd
Kasmiddelen uit bedrijfsactiviteiten
Winst over de periode
190.771
13.779
Aanpassingen om de nettowinst af te stemmen op de nettokasstromen:
Aandeel verlies van geassocieerde deelnemingen en joint ventures
1.250
1.053
Winst op verkoop of verwijdering van materiële vaste activa
(592)
(65)
Door aandelen afgewikkelde op aandelen gebaseerde betalingstransacties
5.552
10.028
Mutatie voorzieningen, pensioenen en overheidssubsidies
(11.982)
(10.184)
Aanpassingen werkkapitaal en uitgestelde inkomsten1
(123.281)
22.747
Kasmiddelen uit bedrijfsactiviteiten
232.652
122.641
Betaalde financiële kosten, netto
(23.289)
(21.950)
Betaalde inkomstenbelasting
(41.796)
(9.903)
Netto kasmiddelen uit bedrijfsactiviteiten
167.567
90.788
Kasmiddelen gebruikt voor beleggingsactiviteiten
Opbrengsten uit de verkoop van materiële vaste activa
2.538
1.029
Overname van materiële vaste activa en immateriële activa
(174.516)
(162.240)
Overnames van dochterondernemingen
—
(458)
Investeringen in geassocieerde deelnemingen en joint ventures
(1.250)
(1.000)
Gebruik van beperkte kasmiddelen
86.514
115.485
Rente ontvangen op beperkte kasmiddelen
250
39
Betaalde geactiveerde financieringskosten
(16.652)
(15.838)
Overig
12
30
Netto kasmiddelen gebruikt voor beleggingsactiviteiten
(103.104)
(62.953)
(1) Omvat uitstaande vorderingen met betrekking tot siliciumenergiekredieten.
AMG Advanced Metallurgical Group N.V.
Geconsolideerd kasstroomoverzicht
(vervolg)
Voor het jaar eindigend op 31 december
In 1.000 USD
2022
2021
Niet-gecontroleerd
Kasmiddelen (gebruikt voor) uit financieringsactiviteiten
Opbrengsten uit de uitgifte van schuldbewijzen
82
352.152
Betaling van transactiekosten met betrekking tot schulden
—
(7.630)
Terugbetaling van leningen
(33.863)
(342.781)
Opbrengsten uit uitgifte van gewone aandelen
—
123.627
Netto inkoop van gewone aandelen
(1.523)
(2.058)
Betaalde dividenden
(19.885)
(7.598)
Betaling van leaseverplichtingen
(5.101)
(5.313)
Vooruitbetaalde bijdragen
11.000
—
Bijdragen van minderheidsbelangen
—
667
Netto kasmiddelen (gebruikt voor) uit financieringsactiviteiten
(49.290)
111.066
Netto stijging van kasmiddelen en kasequivalenten
15.173
138.901
Kasmiddelen en kasequivalenten per 1 januari
337.877
207.366
Effect van wisselkoersschommelingen op aangehouden kasmiddelen
(7.007)
(8.390)
Kasmiddelen en kasequivalenten op 31 december
346.043
337.877
Dit persbericht bevat voorwetenschap in de zin van artikel 7(1) van de EU-verordening marktmisbruik.
Dit persbericht bevat gereguleerde informatie zoals gedefinieerd in de Wet op het financieel toezicht.
Over AMG
AMG is een wereldwijd bedrijf dat zich bezighoudt met kritieke materialen dat toonaangevend is op het gebied van CO2-reductietrends. AMG produceert hoogontwikkelde gespecialiseerde metalen en minerale producten en levert gerelateerde vacuümovensystemen en -diensten aan de eindmarkten voor transport, infrastructuur, energie en gespecialiseerde metalen en chemicaliën.
Het segment Clean Energy Materials van AMG combineert de recycling- en mijnbouwactiviteiten van AMG, waarbij materialen worden geproduceerd voor infrastructuur- en energieopslagoplossingen en tegelijkertijd de CO2-voetafdruk van zowel leveranciers als klanten wordt verminderd. Het segment AMG Clean Energy Materials omvat de waardeketens van vanadium, lithium en tantaal. Het segment AMG Critical Materials Technologies combineert de toonaangevende technologielijn van AMG voor vacuümovens met zeer zuivere materialen die wereldwijd toonaangevend zijn in de ruimtevaartsector. Het AMG Critical Minerals-segment bestaat uit de minerale verwerkingsactiviteiten van AMG in antimoon, grafiet en siliciummetaal.
Met ongeveer 3.400 werknemers is AMG wereldwijd actief met productiefaciliteiten in Duitsland, het Verenigd Koninkrijk, Frankrijk, de Verenigde Staten, China, Mexico, Brazilië, India, Sri Lanka en Mozambique en het bedrijf heeft verkoop- en servicekantoren in Japan (www.amg-nv.com).
Neem voor meer informatie contact op met:
AMG Advanced Metallurgical Group N.V. +1 610 975 4979
Bepaalde verklaringen in dit persbericht zijn geen historische feiten en zijn “toekomstgericht”. Toekomstgerichte verklaringen omvatten verklaringen betreffende AMG’s plannen, verwachtingen, prognoses, doelstellingen, doelen, strategieën, toekomstige gebeurtenissen, toekomstige inkomsten of prestaties, kapitaaluitgaven, financieringsbehoeften, plannen en voornemens met betrekking tot overnames, AMG’s sterke en zwakke punten in de concurrentiestrijd, plannen of doelen met betrekking tot verwachte productie, reserves, financiële positie en toekomstige activiteiten en ontwikkeling, AMG’s bedrijfsstrategie en de trends die AMG verwacht in de industrieën en het politieke en juridische klimaat waarin het opereert en andere informatie die geen historische informatie is. Wanneer in dit persbericht de woorden “verwacht”, “gelooft”, “anticipeert”, “plant”, “kan”, “zal”, “zou” en soortgelijke uitdrukkingen, en de ontkenningen daarvan worden gebruikt, dan worden deze gebruikt om toekomstgerichte verklaringen aan te duiden. Toekomstgerichte verklaringen houden per definitie inherente risico’s en onzekerheden in, zowel van algemene als van specifieke aard, en het risico bestaat dat de voorspellingen, prognoses, projecties en andere toekomstgerichte verklaringen niet zullen worden verwezenlijkt. Deze toekomstgerichte verklaringen gelden alleen per de datum van dit persbericht. AMG wijst uitdrukkelijk elke verplichting of verbintenis af om alle updates of herzieningen van een toekomstgerichte verklaring die hierin is opgenomen openbaar te maken om elke wijziging in de verwachtingen van AMG met betrekking daartoe of elke wijziging in gebeurtenissen, voorwaarden of omstandigheden waarop een toekomstgerichte verklaring is gebaseerd, weer te geven.