AMG Advanced Metallurgical Group N.V. Announces Increased Lithium and Tantalum Mineral Resources at Mibra Mine

apr 3, 2017

Amsterdam, 3 April 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that its subsidiary AMG Mineração has updated its mineral resource estimates for its Mibra mine in Brazil in accordance with CIM Definition Standard and Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) Guidelines.

The Technical Report on Mineral Resources states that AMG Mineração’s Mibra mine has 20.3 million tonnes of measured and indicated resources, an increase of approximately 38% compared to the previous Mineral Resource Statement completed in 2013. Those resources include lithium, tantalum, niobium and tin. This report is based upon drillings and research done during the 2016-2017 core drilling campaign and certain economic assumptions that reflect today’s current market prices and extraction costs.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, commented, “The increase of our lithium resources, reflected in the updated 43-101 statement, affirms our target to double annual production capacity of lithium concentrate to 180k MT by 2020 as the next step in our lithium strategy. In support of this target, preliminary engineering work is currently being performed by both Hatch and Outotec.”

Based upon AMG’s targeted production level of 180k MT of lithium concentrate from 2020 onwards, AMG estimates that the current life of the mineral resource is approximately 20 years, based upon current extraction and processing costs, and current economic conditions.

Compared to the previous Mineral Resource Statement, which was completed in 2013:

• the measured and indicated mineral resource increased by 5.5 million tonnes, to 20.3 million tonnes, an increase of approximately 38%
• the inferred mineral resource decreased by 0.4 million to 4.2 million tonnes, indicating a positive migration from inferred to measured and indicate resources

The detailed table of the mineral resources is below:

Mineral Resource Statement*, SRK Consultores do Brasil Ltda., March 30, 2017

*Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. The mineral resources are reported within a conceptual pit shell at a cut-off grade of 80 ppm of Ta considering a selling price of R$316 per pound of Ta₂O₅, R$130 per tonne of feldspar and R$1,860 per tonne of concentrate 5.5% Li₂O, a metallurgic recovery of 55 percent of tantalum, 65 percent of lithium, 10% mass recovery for feldspar.

The mineral resource estimates have been prepared in accordance with the classification standards adopted by the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects. The construction of the mineral resource was a collaborative effort between AMG and SRK staff from the Belo Horizonte and Toronto offices. Mr. Caymon Assumpção (MAIG#5551), of AMG, constructed the wireframe interpretation of the boundaries of pegmatite dikes and provided input to all stages of resource modelling. The mineral resource modelling work was completed by Ms. Camila Passos (APGO#2431) with the assistance of Dr. Oy Leuangthong, PEng (PEO#90563867) for the geostatistical analysis. Pit optimization was conducted by Mr. Italo Koyama, a mining engineer in the Brazil office. The overall process benefited from the senior review of Dr. Jean-François Couture, PGeo (APGO#0196, OGQ#1106).

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

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

About AMG

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

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

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

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

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

AMG Advanced Metallurgical Group N.V. Receives Notice of Cancellation of Tantalum Supply Contract

mrt 27, 2017

Amsterdam, 27 March 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) announces that it has recently received a purported “notice of cancellation” of its tantalum supply contract from its customer, Global Advanced Metals USA Inc. (“GAM”). GAM has asserted that AMG has failed to provide adequate assurances of its ability to perform under the supply contract following the fire in January 2017 in one of AMG’s two tantalum concentrate production lines. 

AMG believes that it has supplied detailed empirical information that provides reasonable and adequate assurance of its ability to perform its obligations under the supply contract, notwithstanding the fire, and that GAM’s action has no legal or factual basis. AMG intends to take all steps to protect its rights under the contract.

AMG is currently assessing the financial impact of the purported contract cancellation, which will depend on a number of factors, including making tantalum product available to the market, as well as evaluating our rights under our business interruption insurance policy. AMG’s current best estimate of the financial impact on 2017 profitability, as a result of the purported contract cancellation, is approximately $5m.

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

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

About AMG

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

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

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

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

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

AMG Advanced Metallurgical Group N.V. Announces Changes in the Composition of its Supervisory Board

mrt 17, 2017

Amsterdam, 17 March 2017 (Regulated Information) — The Supervisory Board of AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) resolved during its meeting on March 17, 2017 to make the following changes to its composition.

At the Annual Meeting on May 4, 2017 in Amsterdam, the Supervisory Board will nominate for appointment by the General Meeting of Shareholders, Mrs. Suzanne Rich Folsom and Mr. Willem van Hassel as new (independent) Supervisory Board members. Mrs. Folsom is a United States citizen and currently serves as the General Counsel, Chief Compliance Officer and SVP-Government Affairs, and is a member of the Executive Team, at the United States Steel Corporation. Mr. van Hassel is a Dutch citizen, senior lawyer and Dutch corporate governance expert. Full details of the Agenda of the Annual Meeting and the CV’s of Mrs. Folsom and Mr. van Hassel can be found on AMG’s website as of March 23, 2017, when AMG will publish the Agenda of its Annual Meeting to be held on May 4, 2017 in Amsterdam.

Mr. Martin Hoyos, who has been a Supervisory Board member since 2009, and chaired the Audit Committee since 2013, has requested to step down at the end of his term in May 2017 in view of other priorities and is not available for re-appointment. The Supervisory Board wishes to thank Mr. Hoyos for his dedication and services and his leadership of the Audit Committee during the past four years, and wishes him well in his future endeavors.

Furthermore, Mr. Petteri Soininen has requested to step down after having served on the Supervisory Board since 2015. Mr. Soininen joined the Supervisory Board in 2015 as non-independent nominee of AMG’s largest shareholder, RWC European Focus Master Inc. (RWC), after RWC had entered into a Relationship Agreement with AMG. The Relationship Agreement comes to an end after the General Meeting of Shareholders on May 4, 2017 and Mr. Soininen wishes to retire as a member of the Supervisory Board on that date. The Supervisory Board wishes to thank Mr. Soininen for his dedication and services and wishes him well in his future endeavors. 

During the period that Messrs. Hoyos and Soininen were members of the Supervisory Board, AMG has made important strategic decisions which have been positively reflected in AMG’s share price. The Supervisory Board is grateful for the services of Messrs. Hoyos and Soininen as members of the Supervisory Board and wishes to thank them for their valuable insights and contributions.

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

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

About AMG

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

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

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

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

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

AMG Reports Full Year and Fourth Quarter 2016 Results and Provides Update on Lithium Project

mrt 9, 2017

Key Highlights

• Revenue increased by 8% to $237.9 million in the fourth quarter 2016 from $220.8 million in the fourth quarter 2015
• EBITDA⁽²⁾ was $30.0 million in the fourth quarter 2016, a 210% increase over the same period in 2015, and represents the highest quarterly EBITDA in 5 years
• On a full year basis, EBITDA in 2016 increased by 33% to $100.7 million, from $75.6 million in the prior year
• Full year EPS, on a fully diluted basis, increased by 230% to $1.32 in 2016 from $0.40 in 2015
• Return on capital employed increased to 18.8% in 2016, as compared to 12.0% in 2015
• Total 2016 dividend proposed of €0.27 per ordinary share, including the interim dividend of €0.13, paid on August 16, 2016
• AMG’s lithium project is progressing in-line with expectations, with production expected to commence mid-2018

Amsterdam, 9 March 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported fourth quarter 2016 revenue of $237.9 million, an 8% increase from $220.8 million in the fourth quarter 2015. EBITDA for the fourth quarter 2016 was $30.0 million, a 210% increase from $9.7 million in the fourth quarter 2015. Net income attributable to shareholders increased to $10.0 million in the fourth quarter 2016 from a loss of $0.3 million in the fourth quarter 2015. On a full year basis, EBITDA increased by 33% to $100.7 million, from $75.6 million in the prior year, despite an increase in AMG’s Performance Share Unit (“PSU”) plan costs of $4.5 million, compared to the same period in 2015, driven by AMG’s strong share price performance in 2016.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG’s focus on operational excellence and price risk management resulted in very strong financial results in the fourth quarter 2016. Both AMG Critical Materials and AMG Engineering generated triple-digit percentage improvements in quarterly EBITDA compared to the same period in 2015.

AMG Critical Materials generated EBITDA of $22.1 million during the fourth quarter 2016, an increase of 214% from $7.0 million in the fourth quarter of 2015. All operating units within AMG Critical Materials performed well during the quarter, due to a combination of lower operating costs, improved product mix, strong sales volumes and improving vanadium prices. Despite improvements in select materials prices in 2016, current prices for many of our products still reside in the lowest quartile when analyzed over a 10-year timeframe.

AMG Engineering achieved EBITDA of $7.9 million during the fourth quarter 2016, an increase of 199% from $2.6 million in the fourth quarter of 2015. AMG Engineering signed $61.7 million in new orders during the fourth quarter of 2016, an increase of 29% from $48.0 million in the fourth quarter of 2015. New innovations continue to have a positive impact on the results of AMG Engineering, such as our industry leading SyncroTherm® heat treatment furnaces; powder metallurgy furnaces related to additive manufacturing; titanium remelting furnaces; and turbine blade coating plants. These innovative product offerings continue to drive a significant portion of sales and profitability for the division.

On a full year basis, AMG generated cash from operating activities of $56.2 million, a decrease of 26% from $76.3 million in 2015. The full year 2016 operating cash flows include voluntary cash contributions to the Company’s pension plans of $23.1 million made during the year. This strong cash generation enabled AMG to fund a substantial investment in growth capital expenditures during 2016.”

Key Figures

Notes: 

1. EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
2. EBITDA is defined as EBIT adjusted for depreciation and amortization.
3. Gross Profit has been restated to include restructuring expenses and asset impairment expenses, in order to take into consideration ESMA’s latest recommendations.

Operational Review

AMG Critical Materials

* Includes $4.4 million non-cash expense related to vanadium, nickel and molybdenum inventory adjustments in the fourth quarter 2015

** FY ’15 includes $6.5 million non-cash expense related to vanadium, nickel and molybdenum inventory adjustments in the full year 2015; FY ’16 includes $5.1 million non-cash benefit related to reversal of previously expensed vanadium, nickel and molybdenum inventory adjustments

AMG Critical Materials fourth quarter 2016 revenue of $166.0 million was in-line with prior year. Lower quarter-over-quarter sales in AMG Silicon, AMG Aluminum and AMG Brazil, were offset by stronger sales from AMG Vanadium, AMG Titanium Alloys & Coatings, AMG Antimony and AMG Superalloys.

Gross profit before non-recurring items in the fourth quarter increased by $11.1 million, or 53%, to $31.8 million, due to strong financial performance across all AMG Critical Materials business units. AMG Vanadium gross profit improved significantly in the fourth quarter 2016, due to higher volumes and improving vanadium prices. In addition, AMG Vanadium incurred a non-cash inventory adjustment expense of $4.4 million in the prior year due to rapidly falling vanadium, nickel and molybdenum prices.

AMG Titanium Alloys & Coatings and AMG Superalloys quarterly gross profits benefited from higher sales volumes of Titanium Aluminides and Chrome Metal, respectively, compared to the prior year. AMG Brazil, AMG Graphite and AMG Antimony quarterly gross profits also improved due to a combination of lower operating costs and product mix effects. Quarterly gross profits in AMG Silicon and AMG Aluminum were in-line with the prior year.

Gross margin before non-recurring items improved to 19% from 12% in the fourth quarter of 2015 due to improved vanadium pricing, higher volumes and lower costs.

EBITDA increased by $15.1 million to $22.1 million in the fourth quarter of 2016, driven primarily by higher gross profit and lower segment specific SG&A expenses.

AMG Engineering

AMG Engineering signed $61.7 million in new orders during the fourth quarter of 2016, representing a 0.86x book to bill ratio. Order backlog was $135.5 million as of December 31, 2016, a 4% reduction from $140.9 million as of December 31, 2015. On a full year basis, AMG Engineering signed $273.1 million in new orders, representing a 1.01x book to bill ratio.

AMG Engineering’s fourth quarter 2016 revenue increased $17.3 million, or 32%, to $71.9 million, the highest quarterly revenue in 5 years, due to strong sales of plasma remelting, induction and turbine blade coating furnaces for the aerospace market.

Fourth quarter 2016 gross profit before non-recurring items increased by $5.0 million, or 43%, to $16.6 million, due to higher revenues. Gross margin before non-recurring items improved to 23% from 21% in the fourth quarter of 2015 due to product mix effects.

EBITDA increased by $5.3 million to $7.9 million in the fourth quarter of 2016, driven by higher gross profit.

Financial Review

Tax

AMG recorded an income tax expense of $8.1 million in 2016 as compared to $18.7 million in 2015. The income tax expense in 2015 was negatively impacted by the currency effect of the Brazilian Real on deferred tax balances. Due to the volatile nature of the company’s deferred tax balances, AMG believes that the cash tax rate is a more meaningful metric.

AMG paid taxes of $6.6 million in 2016 as compared to $5.7 million in 2015. For 2016, AMG’s effective cash tax rate was 13%, as compared to 20% in 2015.

Non-Recurring Items

AMG’s fourth quarter 2016 and full year 2016 gross profit of $186.8 million includes non-recurring items, which are not included in the calculation of EBITDA.

A summary of non-recurring items in 2016 and 2015 are below:

Non-recurring items included in gross profit

Gross profit before non-recurring items by reporting segment

AMG Critical Materials and AMG Engineering gross profit in the fourth quarter 2016 was negatively impacted by restructuring related to cost reduction initiatives in Germany and France, respectively.

The Company decided to modify its income statement presentation in order to take into consideration ESMA’s latest recommendations. This new presentation resulted in a reclassification of restructuring expenses and asset impairment expenses into expenses by function, and consequently gross profit. Accordingly, the comparative figures of the 2016 consolidated financial statements have been restated to comply with IFRS requirements.

Environmental expense

During the fourth quarter 2016, AMG recorded non-recurring environmental expense of $1.3 million related to its Newfield, NJ site, which are not included in the calculation of EBITDA.

Liquidity

AMG had a net debt position of $7.3 million as of December 31, 2016. Net debt increased by $8.4 million from December 31, 2015, while gross debt increased by $41.3 million, driven by the increased term loan associated with the new debt facility.

Cash from operating activities decreased to $56.2 million in 2016 from $76.3 million in 2015. As noted above, the Company made $23.1 million of discretionary pension contributions during the year. These contributions drove the decline in cash from operating activities from prior year.

Capital expenditures increased to $44.1 million in 2016 compared to $23.3 million in 2015. Capital spending in 2016 included $18.4 million of maintenance capital, compared to $13.1 million in 2015. The largest expansion capital projects in 2016 were AMG’s lithium project in Brazil, Ancuabe graphite mine project in Mozambique, titanium aluminide expansion in Germany and silicon furnace upgrade in Germany.

Including the $161 million of cash, AMG had $343 million of total liquidity as of December 31, 2016.

Net Finance Costs

AMG’s fourth quarter 2016 net finance costs were less than $0.1 million compared to $2.3 million in the fourth quarter of 2015. The decrease was primarily due to currency gains associated with the Mozambique Metical during the quarter.

SG&A

AMG’s fourth quarter 2016 SG&A expenses were $30.0 million, down 1% from the same period in the prior year.

Full year 2016 SG&A expenses were $130.8 million, a 7% increase from $122.3 million in 2015, driven by an increase in PSU plan costs of $4.5 million and an increase in personnel costs of $2.4 million.

Final Dividend Proposed

AMG intends to declare a dividend of €0.27 per ordinary share over the financial year 2016. The interim dividend of €0.13, paid on August 16, 2016, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.14.

The full year dividend proposed in 2016 represents an increase of 29% compared to the full year dividend paid in 2015. This increase reflects AMG’s commitment to return value to shareholders.

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 4, 2017.

Lithium Project Update

AMG’s lithium project is progressing in-line with expectations, and production is expected to commence mid-2018. Capital expenditures in the fourth quarter 2016 related to the lithium project were $5.8 million.

On March 3, 2017, AMG announced that its subsidiary AMG Mineração, Brazil, had signed a multi-year contract to supply 90,000 tons per year of lithium concentrate, for conversion into lithium chemicals, with deliveries commencing in the second half of 2018. Sales prices under the agreement are partially indexed to the published market price of lithium carbonate, subject to a contractual minimum threshold. The sales price (CIF China), determined with reference to the current published lithium carbonate market price, would exceed $800 per ton lithium concentrate.

In the second quarter 2017, AMG Mineração will finalize and publish an updated resource statement for the Mibra mine. The Company targets to double its annual lithium concentrate production capacity to 180,000 tons by end of 2019.

Outlook and Strategy

AMG is well positioned to maintain full year 2016 levels of profitability in 2017, subject to a high degree of global uncertainty.

AMG’s management team is focused on delivering our highly accretive lithium project and executing our long term, transformational lithium strategy. In addition, we will continue to pursue other acquisition opportunities and organic growth projects in order to generate long term value for our shareholders.

*AMG modified December 31, 2015 Income Statement presentation in order to take into consideration ESMA’s latest recommendations.

*AMG modified December 31, 2015 Income Statement presentation in order to take into consideration ESMA’s latest recommendations.

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

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

About AMG

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

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

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

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

Disclaimer

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

AMG Advanced Metallurgical Group N.V. Provides Information on Incident at Mibra Mine in Brazil

jan 27, 2017

Amsterdam, 27 January 2017 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) wishes to provide information regarding a recent fire at the Mibra mine in Brazil on Thursday January 19^th 2017.

The fire occurred in the Gravimetric concentration section in one of AMG’s two tantalum production lines. AMG’s other tantalum production line, as well as crushing and grinding circuits and magnetic separation equipment, remain fully operational. There were no injuries to any employees or contractors as a result of the fire.

An assessment is underway to determine the length of the production interruption. AMG is insured for both the damage sustained to the concentrator and losses incurred as a result of a production interruption to our business. The assessment to date has concluded that we do not expect any material financial impact to AMG as a result of the fire.

The fire does not impact AMG’s Lithium project. Construction of AMG’s new lithium concentration plant at the Mibra mine site is unaffected by the fire.

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

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

About AMG

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

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

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

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

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

AMG Advanced Metallurgical Group N.V. Reports Third Quarter 2016 Results

nov 3, 2016

Key Highlights

• AMG ended the third quarter 2016 net debt free, with net cash of $1.9 million
• EBITDA⁽²⁾ was $23.4 million in the third quarter 2016, a 15% increase over the same period in 2015
• Net income attributable to shareholders increased by 5% to $5.2 million in the third quarter 2016 from $4.9 million in the third quarter 2015
• EPS, on a fully diluted basis, was $0.18 in the third quarter 2016, unchanged from third quarter 2015
• Annualized return on capital employed increased to 18.0% in the third quarter 2016, as compared to 14.7% in the third quarter 2015

Amsterdam, 3 November 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported third quarter 2016 revenue of $247.5 million, a 2% increase from $241.9 million in the third quarter 2015. EBITDA for the third quarter 2016 was $23.4 million, a 15% increase from $20.4 million in the third quarter 2015. Net income attributable to shareholders increased to $5.2 million in the third quarter 2016 from $4.9 million in the third quarter 2015. On a year to date basis, EBITDA increased by 7% to $70.6 million, from $65.9 million in the prior year, despite an increase in AMG’s Performance Share Unit (“PSU”) plan costs of $8.7 million, compared to the same period in 2015, driven by AMG’s strong share price performance.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG’s focus on operational excellence and price risk management resulted in solid financial results in the third quarter 2016. We are particularly pleased with the impact new innovations have had on the results of AMG Engineering, such as: our industry leading SyncroTherm® heat treatment furnaces; powder metallurgy furnaces related to additive manufacturing; titanium re-melting furnaces; and turbine blade coating plants. These innovative product offerings drove a significant portion of third quarter 2016 sales.

AMG Engineering achieved EBITDA of $8.9 million during the third quarter 2016, an 83% increase from $4.9 million in the third quarter of 2015. AMG Engineering signed $68.1 million in new orders during the third quarter of 2016, representing a 0.97x book to bill ratio. The Engineering division continues to experience strong demand for plasma remelting and induction furnaces for the aerospace market and heat treatment furnaces for the automotive market. Order backlog was $158.1 million as of September 30, 2016, consistent with June 30, 2016.

AMG Critical Materials generated EBITDA of $14.5 million during the third quarter 2016. Year-over-year double-digit declines in average quarterly prices of Chrome, Graphite, and Silicon negatively affected revenue in the third quarter of 2016 compared to the third quarter of 2015.

On a year to date basis, AMG generated cash flows from operating activities of $40.7 million, a decrease of 5% from $42.8 million in the same period in 2015. The year to date operating cash flows of $40.7 million includes voluntary cash contributions to the Company’s pension plans of $20.6 million made in the second quarter of 2016. This strong cash flow generation enabled AMG to end the third quarter net debt free, with net cash of $1.9 million.”

Key Figures

Note: 

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

Operational Review

AMG Critical Materials

* Includes $2.1 million non-cash expense related to vanadium, nickel and molybdenum inventory adjustments in the third quarter 2015

AMG Critical Materials continues to be impacted by weak metal prices, and as a result, revenue decreased by 5%, to $177.5 million.

Double-digit declines in average quarterly prices of Chrome, Graphite and Silicon negatively affected revenue in the third quarter of 2016 compared to the third quarter of 2015.

Gross profit in the third quarter increased by $4.9 million, or 18%, to $32.0 million, due to the strong performance of Aluminum Master Alloys and Tantalum. In addition, AMG Vanadium incurred a non-cash inventory adjustment expense of $2.1 million in the prior year due to rapidly falling vanadium, nickel and molybdenum prices.

SG&A expenses increased by $4.4 million, or 23%, compared to the prior year due to higher PSU plan costs.

Third quarter 2016 EBITDA margin remained steady at 8% compared to the third quarter 2015.

AMG Engineering

AMG Engineering signed $68.1 million in new orders during the third quarter of 2016, representing a 0.97x book to bill ratio. Order backlog was $158.1 million as of September 30, 2016, consistent with June 30, 2016. Year to date, AMG Engineering signed $211.4 million in new orders, representing a 1.07x book to bill ratio.

AMG Engineering’s third quarter 2016 revenue increased $15.9 million, or 29%, to $70.0 million, due to strong sales of plasma remelting and induction furnaces for the aerospace market.

Third quarter 2016 gross profit increased by $1.9 million, or 16%, to $14.5 million, due to higher revenues. Gross Margin decreased slightly to 21% from 23% in the third quarter of 2015 due to product mix effects.

SG&A expenses increased by $1.4 million, or 14%, compared to the prior year, due to higher PSU plan costs.

EBITDA increased by $4.1 million to $8.9 million in the third quarter of 2016, the highest quarterly EBITDA in nineteen quarters. The increase in EBITDA was driven by higher gross profit and the sale of an unused production facility in Berlin, which contributed $4.3 million to EBITDA during the quarter, offset by higher SG&A expenses.

Financial Review

Tax

AMG recorded an income tax expense of $4.1 million in the third quarter of 2016 as compared to a tax expense of $4.7 million in the same period in 2015. AMG paid taxes of $1.1 million in the third quarter of 2016 as compared to tax payments of $1.5 million in the same period in 2015. For the third quarter of 2016, AMG’s effective cash tax rate was 12%, compared to 15% in the same period in 2015.

Liquidity

AMG had a net cash position of $1.9 million as of September 30, 2016. Net debt decreased by $0.8 million from December 31, 2015, while gross debt increased by $45.5 million, driven by the increased term loan associated with the new debt facility.

Cash flows from operating activities decreased to $20.7 million in the third quarter 2016 from $27.7 million in the third quarter 2015.

Capital expenditures increased to $8.3 million in the third quarter of 2016 compared to $5.2 million in the same period in 2015. Capital spending in the third quarter of 2016 included $4.2 million of maintenance capital. The largest expansion capital project was for AMG’s Ancuabe graphite mine project.

Including the $174 million of cash, AMG had $350 million of total liquidity as of September 30, 2016. AMG successfully enlarged and extended its syndicated credit facility during the quarter. AMG incurred additional one-time financing costs of $4.0 million related to the new facility.

Net Finance Costs

AMG’s third quarter 2016 net finance costs were $6.8 million compared to net finance income of $1.5 million in the third quarter of 2015. The increase was primarily due to the write-off of $4.0 million of costs associated with the previous credit facility, following the refinancing exercise completed in July 2016. Furthermore, in the third quarter 2015, net finance expenses benefited from the reversal of $2.1 million of accrued finance expenses.

SG&A

AMG’s third quarter 2016 SG&A expenses were $34.7 million compared to $28.9 million in the third quarter of 2015, an increase of 20%. This increase was primarily due to higher costs associated with the PSU plan as a result of recent increases in the Company’s share price compared to the defined peer group.

On a year to date basis, the PSU plan costs increased by $8.7 million, compared to the same period in 2015.

Outlook

Without exception, throughout 2016, AMG has delivered quarter-over-quarter improvements in EBITDA relative to the prior year. We expect to continue this performance in the fourth quarter 2016.

In 2017, AMG expects to continue its strong financial performance.

While we remain focused on operating cash flow and return on capital employed, management’s priority in 2017 is to execute our transformational lithium 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 AMG

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

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

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

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

Disclaimer

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

AMG Advanced Metallurgical Group N.V. Reports Second Quarter 2016 Results

aug 4, 2016

Key Highlights

• EBITDA⁽²⁾ was $26.0 million in the second quarter 2016, a 4% increase over the same period in 2015
• Net income attributable to shareholders more than tripled to $13.4 million in the second quarter 2016 from $3.8 million in the second quarter 2015
• EPS, on a fully diluted basis, increased to $0.48 in the second quarter 2016, from $0.14 in the same period in 2015
• Cash flows from operating activities increased by 116% to $24.3 million in the second quarter 2016 from $11.3 million in the second quarter 2015
• Annualized return on capital employed increased to 17.8% in the second quarter 2016, as compared to 15.7% in the second quarter 2015

Amsterdam, 4 August 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported EBITDA for the second quarter 2016 of $26.0 million, a 4% increase from $25.1 million in the second quarter 2015. Net income attributable to shareholders increased to $13.4 million in the second quarter 2016 from $3.8 million in the second quarter 2015. On a year to date basis, EBITDA increased by 4% to $47.2 million, from $45.5 million in the prior year, despite an increase in AMG’s Performance Share Unit (PSU) plan costs of $3.2 million, compared to the same period in 2015, driven by AMG’s strong share price performance.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG’s focus on operational excellence, cost reduction and price risk management resulted in solid financial results in the second quarter 2016. Despite weak metals prices, AMG performed well across all key financial metrics during the quarter.

AMG Engineering achieved EBITDA of $5.6 million during the second quarter 2016, a 33% increase from $4.2 million in the second quarter of 2015.  AMG Engineering signed $92.8 million in new orders during the second quarter of 2016, the highest quarterly order intake since Q4 2010, representing a 1.39x book to bill ratio. The Engineering division continues to experience strong demand for plasma remelting, induction and turbine blade coating furnaces for the aerospace market and heat treatment furnaces for the automotive market. Order backlog was $158.8 million as of June 30, 2016, an increase of 17% from March 31, 2016.

AMG Critical Materials generated EBITDA of $20.5 million during the second quarter 2016. Year-over-year double-digit declines in average quarterly prices of Nickel, Aluminum, Chrome, Niobium and Antimony negatively affected revenue in the second quarter of 2016 compared to the second quarter of 2015.

Cash flows from operating activities increased to $24.3 million in the second quarter 2016 from $11.3 million in the second quarter 2015, due to lower levels of working capital driven by the advance payments received by AMG Engineering.”

Key Figures

Note: 

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

Operational Review

AMG Critical Materials

* Includes $3.6 million non-cash benefit related to reversal of previously expensed vanadium, nickel and molybdenum inventory adjustments

AMG Critical Materials continues to be impacted by weak metal prices, and as a result, revenue decreased by 10%, to $181.6 million.

Double-digit declines in average quarterly prices of Nickel, Aluminum, Chrome, Niobium and Antimony negatively affected revenue in the second quarter of 2016 compared to the second quarter of 2015.

Gross profit in the second quarter increased by $6.1 million, or 19%, to $38.2 million, due to strong sales of Aluminum combined with lower production costs in Aluminum, Tantalum, Chrome and Silicon. In addition, Vanadium gross profit in the second quarter 2016 benefited from a $3.6 million reversal of previously recorded inventory adjustment expenses, due to improving vanadium and molybdenum prices.

Second quarter 2016 EBITDA margin increased to 11% from 10% in the second quarter 2015.

AMG Engineering

AMG Engineering signed $92.8 million in new orders during the second quarter of 2016, representing a 1.39x book to bill ratio. Order backlog was $158.8 million as of June 30, 2016, an increase of 17% from March 31, 2016. Order intake in the quarter benefited from a number of orders which had been postponed from the first quarter of 2016. Year to date, AMG Engineering signed $143.3 million in new orders, representing a 1.12x book to bill ratio.

AMG Engineering’s second quarter 2016 revenue increased $10.5 million, or 19%, to $66.7 million, due to strong sales of plasma remelting and induction furnaces for the aerospace market and heat treatment furnaces for the automotive market.

Second quarter 2016 gross margin increased to 23% from 22% in the second quarter of 2015 due to higher revenue, product mix effects and improved project cost management.

EBITDA increased by $1.4 million to $5.6 million in the second quarter of 2016, the highest quarterly EBITDA in twelve quarters, due to higher levels of gross profit.

Financial Review

Tax

AMG recorded an income tax expense of $2.8 million in the second quarter of 2016 as compared to a tax expense of $4.1 million in the same period in 2015. The currency effect of the strengthening Brazilian Real on deferred taxes positively affected tax expense in the quarter.

AMG paid taxes of $1.8 million in the second quarter of 2016 as compared to tax payments of $1.6 million in the same period in 2015. For the second quarter of 2016, AMG’s effective cash tax rate was 11%.

Liquidity

AMG had a net debt position of $6.2 million as of June 30, 2016. Net debt and gross debt increased $7.2 million and $4.5 million, respectively, from December 31, 2015.

Cash flows from operating activities increased to $24.3 million in the second quarter 2016 from $11.3 million in the second quarter 2015, primarily due to lower levels of working capital driven by advance payments received by AMG Engineering.

Historic declines in discount rates have negatively influenced AMG’s defined benefit plan liabilities and the related funding status of those plans. In response, the Company made cash contributions to its pension plans of $20.6 million during the second quarter 2016. Voluntary contributions to the plans create flexibility in reducing plan liabilities and allow the Company to avoid certain future costs associated with plan deficits. The contributions made during the quarter negatively impacted cash flows from operating activities and the Company’s net debt balance.

Cash flow used in investing activities increased to $7.8 million in the second quarter of 2016 compared to $0.7 million in the same period in 2015, due to higher levels of capital expenditures.

Capital expenditures increased to $7.5 million in the second quarter of 2016 compared to $3.3 million in the same period in 2015. Capital spending in the second quarter of 2016 included $3.0 million of maintenance capital. The largest expansion capital project was for AMG’s Ancuabe graphite mine project.

Including the $125.1 million of cash, AMG had $268.0 million of total liquidity as of June 30, 2016.

SG&A

AMG’s second quarter 2016 SG&A expenses were $34.8 million compared to $32.9 million in the second quarter of 2015, an increase of 6%. This increase was primarily due to higher costs associated with AMG’s Performance Share Unit (PSU) plan as a result of recent increases in the Company’s share price compared to the defined peer group.

Interim Dividend

AMG has announced an interim dividend in respect of the period from January 1, 2016, to June 30, 2016, of €0.13 per ordinary share, an increase of €0.03, or 30%, compared to the interim dividend paid in September 2015.

The increased dividend reflects AMG’s ongoing commitment to return value to our shareholders and the Board’s confidence in our long term ability to generate solid cash flow.

Outlook

In this challenging market environment, AMG expects 2016 full year profitability to improve relative to 2015. AMG will also continue to generate strong operating cash flows throughout the year.

About AMG

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

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

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

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

Disclaimer

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

AMG Advanced Metallurgical Group N.V. Announces Interim Dividend

aug 4, 2016

Amsterdam, 4 August 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce an interim dividend in respect of the period from 1 January 2016 to 30 June 2016 of €0.13 per ordinary share, payable on or around 16 August 2016, to shareholders of record on 9 August 2016. The ex-dividend date will be 8 August 2016. Dutch withholding tax will be deducted from the dividend at a rate of 15%.

About AMG

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

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

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

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

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

AMG Advanced Metallurgical Group N.V. Completes Enlargement and Extension of Credit Facility

jul 20, 2016

Amsterdam, 20 July 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased
to announce the successful enlargement and extension of its syndicated credit facility. The new facility, which was oversubscribed, has been increased from $320 million to $400 million and the maturity has been extended from May 2018 to July 2021.

“Our amended credit facility has improved terms and conditions, additional capacity, and a new five-year maturity,” said Jackson Dunckel, AMG’s Chief Financial Officer. “The amended facility provides AMG with a stable capital base and additional liquidity for strategic growth opportunities. We are grateful to the entire bank group for their continued support of AMG.”

The amended facility maintains an accordion feature that allows the Company, subject to certain conditions, to increase the commitment amount by up to $100 million. HSBC Bank plc coordinated the financing and, together with Lloyds Securities Inc., UniCredit Bank AG, and Fifth Third Bank, served as Joint Bookrunners and Mandated Lead Arrangers. SEB AG and Citibank, N.A. also served as Mandated Lead Arrangers. 

The amendment and extension provides additional flexibility and a long-term liquidity resource for the AMG group. The expansion of the facility size will support AMG in funding strategic growth initiatives such as AMG’s lithium project.

About AMG

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

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

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

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

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

AMG Advanced Metallurgical Group N.V. Approves Lithium Project

jul 20, 2016

Key Highlights

• AMG’s Supervisory Board approves project to construct a lithium concentrate (spodumene) plant at the Mibra mine in Brazil, with an initial annual production of 90,000 tons, expandable to 140,000 tons
• Production is expected to commence in the first quarter of 2018 and capital investment is estimated at approximately $50 million
• AMG expects to be the low cost producer of lithium concentrate globally
• Pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE), will be completed in the fourth quarter 2016

Amsterdam, 20 July 2016 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that the Supervisory Board of AMG has approved the construction of a lithium concentrate (spodumene) plant at the Mibra mine in Brazil.

“Following a number of years spent on preparatory activities, including the operation of a pilot plant at AMG’s Mibra mine in Brazil, we are delighted to announce our entrance into the lithium market,” said Dr. Heinz Schimmelbusch, CEO and Chairman of the Management Board. “The recovery of lithium-bearing minerals from existing tailings will enable AMG to be a cost leader in the lithium market, creating significant value for our shareholders.”

AMG’s new business segment, AMG Lithium, will commence operations in the first quarter of 2018, with an initial annual production capacity of 90,000 tons of lithium concentrate, expandable to 140,000 tons. Total capital investment is estimated at approximately $50 million and will be incurred primarily in 2016 and 2017.

The recovery of lithium-bearing minerals from existing tailings, a by-product of AMG’s tantalum operations in Brazil, is expected to result in a cost-leading production process.

This announcement follows the press release distributed on March 10, 2016, in which AMG announced that Outotec completed an affirmative prefeasibility study for the recovery of lithium-bearing mineral Spodumene.

In addition, AMG has completed an affirmative scoping study for the downstream conversion of lithium concentrate into lithium hydroxide and/or lithium carbonate. As part of this analysis, AMG performed a global site location study to determine the best location for a new lithium chemical plant.

Following the successful completion of the scoping and location studies, AMG has commissioned Hatch to complete a pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE).

The previously published Technical Report on Mineral Resources states that AMG’s Mibra mine has 14.7 million tons of measured and indicated resources, including tantalum, niobium, tin and lithium. AMG estimates that the current life of the mineral resource is approximately 18 years, based upon current production levels.

Chemical grade lithium is primarily used in lithium-ion batteries and in the fine-chemical industry.

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

About AMG

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

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

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

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

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