We continue to apply all safety measures at our disposal with the highest degree of attention to ensure our employees are working in the lowest risk environment possible. As a result, AMG has zero hospitalizations presently and has not experienced a facility closure or operational interruption.
Strategic Highlights
The commissioning of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio is proceeding as planned. We continue our ramp up phase and the plant is forecast to achieve at run rate capacity in the fourth quarter of 2022.
AMG Brazil will increase its spodumene production by 40,000 tons, bringing its production capacity to 130,000 tons per annum. The project is proceeding as planned, construction will begin in the third quarter of 2022; and commissioning will commence in the second quarter of 2023.
AMG Lithium has started construction and will celebrate a groundbreaking ceremony at the Bitterfeld-Wolfen Chemical Park on May 11, 2022, for the first European lithium refinery, and commissioning for the first module of the battery grade lithium hydroxide upgrader will commence in the third quarter of 2023.
AMG’s first lithium vanadium battery (“LIVA”) for industrial power management applications is proceeding as planned and commissioning has begun at AMG Graphite located in Hauzenberg, Germany.
Financial Highlights
Revenue increased by 53% to $403.9 million in the first quarter of 2022 from $264.0 million in the first quarter of 2021.
EBITDA was $54.8 million in the first quarter of 2022, 93% higher than the first quarter 2021 EBITDA of $28.3 million, marking the seventh straight quarter of sequential improvement.
Annualized return on capital employed was 19.8% for the first three months of 2022, more than double the 9.4% for the same period in 2021.
AMG’s liquidity as of March 31, 2022, was $478 million, with $308 million of unrestricted cash and $170 million of revolving credit availability.
The Company has maintained its final 2021 declared dividend of €0.30 to be paid on May 12, 2022 to shareholders of record on May 10, 2022.
Amsterdam, 4 May 2022(Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported first quarter 2022 revenue of $403.9 million, a 53% increase over $264.0 million in the first quarter of 2021. EBITDA for the first quarter of 2022 was $54.8 million, a 93% increase over $28.3 million in the first quarter of 2021. This also marks the seventh straight quarter of sequential growth after the pandemic low point in the second quarter of 2020.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “With regard to COVID, we continue to apply all safety measures at our disposal with the highest degree of attention to ensure our employees are working in the lowest risk environment possible. Nothing is more important to AMG than the safety, health, and well-being of our workers and their families. All injuries and occupational illnesses are preventable, and we firmly believe that there is no job worth doing in an unsafe manner. Safety is understood across business units as our number one priority.
“AMG continued to sequentially improve EBITDA in the first quarter for the seventh time as prices increased and demand remains robust throughout our portfolio. We expect this to continue throughout the year. Our Clean Energy Materials segment continues to deliver strong EBITDA, which more than tripled since the first quarter of 2021, its eighth straight quarter of sequentially increasing EBITDA. The global lithium market has experienced very strong price increases. Ferrovanadium prices have recovered to a level above long-term averages. We have increased EBITDA guidance for 2022 twice since our initial guidance, and in the outlook section of this press release we do so again today.
“AMG’s key strategic projects are all proceeding as planned. The commissioning of the ferrovanadium plant in Zanesville, Ohio, which will essentially double our recycling capacity for refinery residues, is proceeding well and is expected to be producing at run rate capacity in the fourth quarter of 2022. Shell & AMG Recycling B.V. continues to pursue refinery residue opportunities globally to convert refinery waste streams into valuable products, including battery materials that will enable the acceleration of sustainable energy transition goals. AMG Brazil is expanding its lithium concentrate production by 40,000 tons, bringing its production capacity to 130,000 tons per annum. The groundbreaking for our new lithium hydroxide production facility in Germany will take place on May 11, 2022. AMG’s first lithium vanadium battery (“LIVA”) for industrial power management applications has begun commissioning.”
Key Figures
In 000’s US dollars
Q1 ‘22
Q1 ‘21
Change
Revenue
$403,863
$263,986
53%
Gross profit
75,194
46,864
60%
Gross margin
18.6%
17.8%
Operating profit
37,814
13,809
174%
Operating margin
9.4%
5.2%
Net income attributable to shareholders
29,115
5,099
471%
EPS – Fully diluted
0.89
0.18
394%
EBIT (1)
44,233
17,376
155%
EBITDA (2)
54,760
28,339
93%
EBITDA margin
13.6%
10.7%
Cash (used in) from operating activities
(3,654)
19,939
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, 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 ‘22
Q1 ‘21
Change
Revenue
$143,659
$70,627
103%
Gross profit
39,004
13,203
195%
Gross profit before non-recurring items
41,269
13,383
208%
Operating profit
28,219
3,605
683%
EBITDA
37,227
10,286
262%
AMG Clean Energy Materials’ revenue more than doubled compared to the first quarter of 2021, to $143.7 million, driven mainly by higher prices in vanadium, tantalum and lithium concentrates and higher volumes of lithium concentrate.
Gross profit before non-recurring items for the quarter more than tripled compared to the same period in the prior year, primarily due to the increased price environment.
SG&A expenses in the first quarter of 2022 were $10.8 million, $1.2 million higher than the first quarter of 2021, due to an increase in professional fees as a result of higher strategic project costs and higher shared-based and variable compensation expense.
The first quarter 2022 EBITDA increased by $26.9 million, to $37.2 million from $10.3 million in the first quarter of 2021, due to the improved gross profit as noted above.
AMG Critical Minerals
Q1 ‘22
Q1 ‘21
Change
Revenue
$106,909
$72,916
47%
Gross profit
13,002
13,154
(1%)
Gross profit before non-recurring items
13,048
13,071
—%
Operating profit
5,647
6,560
(14%)
EBITDA
7,883
9,012
(13%)
AMG Critical Minerals’ revenue increased by $34.0 million, or 47%, to $106.9 million, driven by strong sales volumes of antimony and graphite as well as higher sales prices across all three businesses.
Gross profit before non-recurring items of $13.0 million in the first quarter was in line with the first quarter of 2021. The higher revenue was due to the improved pricing and higher sales volumes noted above was offset by increased raw material prices, as well as the ongoing rise in energy and shipping costs.
SG&A expenses in the first quarter of 2022 slightly increased by $0.8 million, to $7.4 million, primarily due to higher share-based and variable compensation expense in the current quarter.
The first quarter 2022 EBITDA was $1.1 million lower than the same period in the prior year, due to increased SG&A costs.
AMG Critical Materials Technologies
Q1 ‘22
Q1 ‘21
Change
Revenue
$153,295
$120,443
27%
Gross profit
23,188
20,507
13%
Gross profit before non-recurring items
23,283
20,569
13%
Operating profit
3,948
3,644
8%
EBITDA
9,650
9,041
7%
AMG Critical Materials Technologies’ first quarter 2022 revenue increased by $32.9 million, or 27%, compared to the same period in 2021. This increase was due to increased titanium alloys sales, as well as higher titanium alloy and chrome metal pricing, offset by timing delays in Engineering projects. First quarter 2022 gross profit before non-recurring items increased by $2.7 million, or 13%, to $23.3 million due to the higher volumes and prices.
SG&A expenses increased by $2.4 million in the first quarter of 2022 compared to the same period in 2021, driven by an increase in professional fees and higher share-based and variable compensation expense in the current quarter.
AMG Critical Materials Technologies’ EBITDA increased to $9.7 million during the quarter, compared to $9.0 million in the first quarter of 2021. This was primarily due to higher profitability in chrome metal and titanium alloys.
The Company signed $61.1 million in new orders during the first quarter of 2022, driven by strong orders of remelting and heat treatment furnaces, representing a 1.09x book to bill ratio. Order backlog was $183.5 million as of March 31, 2022, in line with $188.2 million as of December 31, 2021.
Financial Review
Exceptional Items
AMG’s first quarter 2022 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in the first quarters of 2022 and 2021 are below:
Exceptional items included in gross profit
Q1 ‘22
Q1 ‘21
Change
Gross profit
$75,194
$46,864
60%
Inventory cost adjustment
—
(333)
N/A
Restructuring expense
141
67
110%
Asset impairment reversal
—
(136)
N/A
Strategic project expense
2,265
561
304%
Gross profit excluding exceptional items
77,600
47,023
65%
Energy Costs
AMG experienced significant increases in gas and electricity costs in the first quarter of 2022. Total energy costs were $11.9 million higher in the first quarter of 2022 versus the same period in 2021. The majority of this increase was at our silicon business in Germany, but that business benefited from fully hedged power costs and increased silicon prices. Other business units benefited from long-term electricity contracts that have no price escalation clauses, and the business units that did experience energy cost increases were able to pass through most of these increased costs to their customers.
SG&A
AMG’s first quarter 2022 SG&A expenses were $37.5 million compared to $33.1 million in the first quarter of 2021, with the variance driven largely by an increase in professional fees due to higher strategic project costs and higher shared-based and variable compensation expense. The first quarter of 2021 personnel cost was reduced by cost reduction efforts in response to the onset of the pandemic.
Net Finance Costs
AMG’s first quarter 2022 net finance costs were $8.9 million compared to $8.7 million in the first quarter of 2021. This slight increase was mainly driven by higher borrowing rates during the quarter, which were partially offset by lower foreign exchange losses versus the prior period.
Tax
AMG recorded an income tax benefit of $1.5 million in the first quarter of 2022, compared to $0.9 million in the same period in 2021. This variance was mainly driven by higher pre-tax income compared to the prior period more than offset by movements in the Brazilian real versus the US dollar. The effects of the Brazilian real caused a $14.7 million non-cash deferred tax benefit in the first quarter 2022. Movements in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $3.9 million in the first quarter of 2022, compared to tax payments of $2.0 million in the first quarter of 2021.
Liquidity
March 31, 2022
December 31, 2021
Change
Senior secured debt
$371,323
$371,897
—%
Cash & cash equivalents
308,482
337,877
(9%)
Senior secured net debt
62,841
34,020
85%
Other debt
26,676
24,398
9%
Net debt excluding municipal bond
89,517
58,418
53%
Municipal bond debt
319,419
319,476
—%
Restricted cash
62,139
93,434
(33%)
Net debt
346,797
284,460
22%
AMG had a net debt position of $346.8 million as of March 31, 2022. This increase was mainly due to the significant investment in growth initiatives during the quarter.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2022, the Company had $308 million in unrestricted cash and cash equivalents and $170 million available on its revolving credit facility. As such, AMG had $478 million of total liquidity as of March 31, 2022.
In January 2022, AMG Engineering entered into €140 million of long-term bilateral unsecured performance-based guarantee facility agreements. These guarantee arrangements support expected customer advanced payments and replace the existing guarantee arrangements.
In November 2021, AMG entered into a new $350 million 7-year senior secured term loan B facility (“term loan”) and a $200 million 5-year senior secured revolving credit facility (“revolver”). The total facility amount of $550 million replaced AMG’s prior credit facility and extended the term loan maturity from 2025 to 2028 and revolver maturity from 2023 to 2026. Further strengthening AMG’s commitment to Environmental, Social and Governance (ESG), annual CO2 intensity reduction targets were built into the Revolving Credit Facility, making it a Sustainability Linked Loan. In conjunction with this loan, AMG entered into a 5-year swap agreement through 2026, which fixed interest rates for the entire term loan at the prevailing low interest rates in November 2021.
Outlook
AMG was able to deliver strong results despite the continuing impact of COVID-19 and the fallout from the geopolitical turbulence in recent months. EBITDA was $54.8 million in the first quarter of 2022, 93% higher than the first quarter 2021 EBITDA of $28.3 million, and 25% higher than the fourth quarter of 2021. As mentioned, it was the seventh straight quarter of sequential improvement and we expect this trend to continue.
In December 2021, AMG increased its 2022 EBITDA guidance from “$150 million or more” to “$175 – $200 million.”
In February 2022, we further increased our EBITDA guidance for the full year 2022 to “$225 million or more.”
Given the improved market conditions within our portfolio, especially the lithium and also the vanadium markets, the new guidance is that 2022 EBITDA will be in the range of $260 to $290 million.
The last long-term EBITDA guidance was given in 2019, prior to the COVID period. In 2019, we said “we will reach an EBITDA of $350 million, or more, in 5 years, or earlier.”
Being now much closer to the year 2023, and despite the global disruption from the coronavirus and the geopolitical turbulence, we strongly reaffirm that guidance.
As to a new long-term EBITDA guidance, we will reach an EBITDA of $500 million, or more, in 5 years or earlier.
Net income to EBITDA reconciliation
Q1 ‘22
Q1 ‘21
Net income
$29,884
$5,678
Income tax benefit
(1,489)
(910)
Net finance cost
8,919
8,654
Equity-settled share-based payment transactions
1,380
1,114
Restructuring expense
141
67
Inventory cost adjustment
—
(333)
Strategic project expense (1)
4,796
2,552
Share of loss of associates
500
387
Others
102
167
EBIT
44,233
17,376
Depreciation and amortization
10,527
10,963
EBITDA
54,760
28,339
(1) The Company is in the ramp-up phase 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
2022
2021
Unaudited
Unaudited
Continuing operations
Revenue
403,863
263,986
Cost of sales
(328,669)
(217,122)
Gross profit
75,194
46,864
Selling, general and administrative expenses
(37,462)
(33,093)
Other income, net
82
38
Net other operating income
82
38
Operating profit
37,814
13,809
Finance income
299
210
Finance cost
(9,218)
(8,864)
Net finance cost
(8,919)
(8,654)
Share of loss of associates and joint ventures
(500)
(387)
Profit before income tax
28,395
4,768
Income tax benefit
1,489
910
Profit for the period
29,884
5,678
Profit attributable to:
Shareholders of the Company
29,115
5,099
Non-controlling interests
769
579
Profit for the period
29,884
5,678
Earnings per share
Basic earnings per share
0.91
0.18
Diluted earnings per share
0.89
0.18
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
March 31,2022 Unaudited
December 31, 2021
Assets
Property, plant and equipment
719,054
693,624
Goodwill and other intangible assets
43,541
44,684
Derivative financial instruments
16,772
95
Other investments
29,212
29,830
Deferred tax assets
67,036
52,937
Restricted cash
53,728
85,023
Other assets
8,754
8,471
Total non-current assets
938,097
914,664
Inventories
246,037
218,320
Derivative financial instruments
3,721
4,056
Trade and other receivables
198,397
145,435
Other assets
67,691
65,066
Current tax assets
6,619
5,888
Restricted cash
8,411
8,411
Cash and cash equivalents
308,482
337,877
Total current assets
839,358
785,053
Total assets
1,777,455
1,699,717
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
March 31,2022 Unaudited
December 31, 2021
Equity
Issued capital
853
853
Share premium
553,715
553,715
Treasury shares
(14,919)
(16,596)
Other reserves
(81,096)
(96,421)
Retained earnings (deficit)
(146,466)
(173,117)
Equity attributable to shareholders of the Company
312,087
268,434
Non-controlling interests
25,268
25,718
Total equity
337,355
294,152
Liabilities
Loans and borrowings
665,806
675,384
Lease liabilities
44,306
45,692
Employee benefits
159,590
162,628
Provisions
14,787
14,298
Deferred revenue
21,736
22,341
Other liabilities
9,388
11,098
Derivative financial instruments
769
2,064
Deferred tax liabilities
5,901
5,617
Total non-current liabilities
922,283
939,122
Loans and borrowings
36,847
27,341
Lease liabilities
4,844
4,857
Short-term bank debt
14,765
13,046
Deferred revenue
20,510
18,478
Other liabilities
81,203
80,672
Trade and other payables
266,860
252,765
Derivative financial instruments
6,090
6,010
Advance payments from customers
49,983
35,091
Current tax liability
19,671
10,586
Provisions
17,044
17,597
Total current liabilities
517,817
466,443
Total liabilities
1,440,100
1,405,565
Total equity and liabilities
1,777,455
1,699,717
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the quarter ended March 31
In thousands of US dollars
2022
2021
Unaudited
Unaudited
Cash (used in) from operating activities
Profit for the period
29,884
5,678
Adjustments to reconcile net profit to net cash flows:
Non-cash:
Income tax benefit
(1,489)
(910)
Depreciation and amortization
10,527
10,963
Asset impairment reversal
—
(136)
Net finance cost
8,919
8,654
Share of loss of associates and joint ventures
500
387
(Gain) loss on sale or disposal of property, plant and equipment
(55)
9
Equity-settled share-based payment transactions
1,380
1,088
Movement in provisions, pensions, and government grants
(1,685)
(3,796)
Working capital and deferred revenue adjustments
(41,819)
4,748
Cash generated from operating activities
6,162
26,685
Finance costs paid, net
(5,917)
(4,749)
Income tax paid
(3,899)
(1,997)
Net cash (used in) from operating activities
(3,654)
19,939
Cash used in investing activities
Proceeds from sale of property, plant and equipment
59
171
Acquisition of property, plant and equipment and intangibles
(43,763)
(35,583)
Investments in associates and joint ventures
(500)
(1,000)
Change in restricted cash
31,295
33,878
Interest received on restricted cash
9
15
Capitalized borrowing cost
(7,886)
(7,722)
Other
8
13
Net cash used in investing activities
(20,778)
(10,228)
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
2022
2021
Unaudited
Unaudited
Cash used in financing activities
Proceeds from issuance of debt
1,835
1,481
Payment of transaction costs related to debt
—
(390)
Repayment of borrowings
(1,718)
(1,510)
Net (repurchase of) proceeds from issuance common shares
(1,523)
176
Payment of lease liabilities
(1,291)
(1,283)
Contributions by non-controlling interests
—
244
Net cash used in financing activities
(2,697)
(1,282)
Net (decrease) increase in cash and cash equivalents
(27,129)
8,429
Cash and cash equivalents at January 1
337,877
207,366
Effect of exchange rate fluctuations on cash held
(2,266)
(4,716)
Cash and cash equivalents at March 31
308,482
211,079
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,300 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
We continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible. Hospitalizations remain at a very low level and presently AMG has zero hospitalizations. AMG has not experienced a facility closure or operational interruption.
Strategic Highlights
Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2021 enabled 79.0 million tons of CO2 reduction, 40% more than the 56.6 million tons of enabled CO2 reduction in 2020.
AMG today announces a 2030 commitment to reduce direct CO2 emissions as well as commitment to increase its ECO2RP portfolio over the same time period.
The construction of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio is proceeding as planned. Commissioning has begun and the plant is forecast to achieve full run rate capacity in the fourth quarter of 2022.
AMG Brazil will increase its spodumene production by 40,000 tons, bringing its production capacity to 130,000 tons per annum. The project is currently in detailed engineering, with construction planned to commence at the beginning of the second half of 2022, and mechanical completion at the end of the first quarter of 2023.
Site preparation and building site facilities have started in Bitterfeld, Germany and commissioning for the first module of the battery grade lithium hydroxide upgrader will commence in the third quarter of 2023.
AMG’s first lithium vanadium battery (“LIVA”) for industrial power management applications is proceeding as planned.
In December, AMG announced that it will bring its lithium value chain under one new corporate entity to further increase the long-term value of AMG’s lithium activities. AMG Lithium activities are comprised of AMG’s Brazilian mining and processing plants as well as the German hydroxide project and include the Lithium solid-state battery research and development activities in Frankfurt.
Financial Highlights
Revenue increased by 30% to $330.4 million in the fourth quarter of 2021 from $253.5 million in the fourth quarter of 2020.
EBITDA was $43.9 million in the fourth quarter of 2021, 95% higher than the fourth quarter 2020 EBITDA of $22.5 million, marking the sixth straight quarter of sequential improvement. On a full-year basis, EBITDA in 2021 of $136.7 was more than double full year 2020 EBITDA.
Cash from operating activities was $30.2 million in the fourth quarter of 2021, and $90.8 million on a year-to-date basis, compared to $19.6 for full year 2020.
AMG’s liquidity as of December 31, 2021, was $508 million, with $338 million of unrestricted cash and $170 million of revolving credit availability.
The total 2021 dividend proposed is €0.40 per ordinary share, including the interim dividend of €0.10, paid on August 13, 2021.
In November, AMG entered into a new $350 million 7-year senior secured term loan B facility and a $200 million 5-year senior secured revolving credit facility, which together replaced AMG’s prior credit facility and extended the term loan maturity from 2025 to 2028 and revolver maturity from 2023 to 2026. Further strengthening AMG’s commitment to Environmental, Social and Governance (ESG), annual CO2 intensity reduction targets were built into the Revolving Credit Facility, making it a Sustainability Linked Loan.
Amsterdam, 23 February 2022(Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported fourth quarter 2021 revenue of $330.4 million, a 30% increase over $253.5 million in the fourth quarter of 2020. EBITDA for the fourth quarter of 2021 was $43.9 million, a 95% increase over $22.5 million in the fourth quarter of 2020. This also marks the sixth straight quarter of sequential growth after the pandemic low point in the second quarter of 2020.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “With regard to COVID, we continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.
“AMG continued to sequentially improve EBITDA in the fourth quarter and on a full-year basis 2021 EBITDA more than doubled 2020 EBITDA. AMG continues to see price increases and strong volumes throughout our portfolio. Our Clean Energy Materials segment continues to deliver strong EBITDA, which more than tripled since the fourth quarter of 2020, its seventh straight quarter of sequentially increasing EBITDA.
“We are pleased to announce our Enabling CO2 Reduction Portfolio (ECO2RP) in 2021 enabled 79.0 million tons of CO2 reduction, 40% more than the 56.6 million tons of enabled CO2 reduction in 2020.
“As regard to our key strategic projects, the construction of the ferrovanadium plant in Zanesville, Ohio, which will essentially double our recycling capacity for refinery residues, is nearly complete. Shell & AMG Recycling B.V. continues to pursue circular refinery residue opportunities globally; this project advances the goals of a circular economy and is essential in achieving societal benefits of reducing global CO2 emissions. AMG Brazil will increase its spodumene production by 40,000 tons, bringing its production capacity to 130,000 tons per annum. We have begun site preparation for our new lithium hydroxide production facility in Germany and the groundbreaking ceremony will take place on May 11th. AMG’s first lithium vanadium battery (“LIVA”) for industrial power management applications is proceeding as planned.
“During AMG’s Capital Markets Day on January 11th we explained our strategy to further develop our lithium value chain activities and commented on the strategic options.”
Key Figures
In 000’s US dollars
Q4 ‘21
Q4 ‘20
Change
FY ‘21
FY ‘20
Change
Revenue
$330,360
$253,476
30%
$1,204,666
$937,116
29%
Gross profit
61,797
28,103
120%
208,243
112,653
85%
Gross margin
18.7%
11.1%
17.3%
12.0%
Operating profit (loss)
22,295
(2,184)
N/A
57,141
(9,235)
N/A
Operating margin
6.7%
(0.9%)
4.7%
(1.0%)
Net income (loss) attributable to shareholders
5,705
(2,839)
N/A
13,771
(41,692)
N/A
EPS – Fully diluted
0.18
(0.10)
N/A
0.44
(1.47)
N/A
EBIT (1)
32,678
11,059
195%
92,991
23,106
302%
EBITDA (2)
43,885
22,539
95%
136,676
66,767
105%
EBITDA margin
13.3%
8.9%
11.3%
7.1%
Cash from operating activities
30,225
11,358
166%
90,788
19,619
363%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses, equity-settled share-based payments, and strategic expenses. Beginning January 1, 2021, AMG has altered its calculation of adjusted EBIT to no longer include the impact of foreign exchange. This alteration was made in consideration of a change in the Company’s hedging policy and to better align the reported adjusted EBITDA with the calculation for our bank covenant calculations. Starting January 2021, the Company is no longer hedging European cash pool intergroup balance sheet exposures which will result in higher volatility in our financial results from foreign exchange which we believe is not representative of our operating performance. Foreign exchange loss in the fourth quarter of 2021 was $2.8 million. Because of this hedging policy change, we did not retroactively apply this change to the prior year figures, otherwise it would have resulted in a decrease to the prior period EBIT of $1.1 million.
(2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q4 ‘21
Q4 ‘20
Change
FY ‘21
FY ‘20
Change
Revenue
$115,405
$66,995
72%
$381,475
$245,664
55%
Gross profit
27,950
6,004
366%
75,095
11,994
526%
Gross profit before non-recurring items
29,038
8,562
239%
80,264
21,261
278%
Operating profit (loss)
16,301
(5,118)
N/A
22,476
(24,522)
N/A
EBITDA
25,753
7,081
264%
66,622
10,580
530%
AMG Clean Energy Materials’ revenue increased by $48.4 million, or 72%, to $115.4 million, driven mainly by higher prices in vanadium, tantalum and lithium concentrates offset by lower volumes in each product.
Gross profit before non-recurring items for the quarter increased by $20.5 million compared to the same period in the prior year, primarily due to the increased price environment.
SG&A expenses in the fourth quarter of 2021 were $11.7 million, $4.6 million higher than the fourth quarter of 2020 due to higher strategic project costs and increased shared-based and variable compensation expense.
The fourth quarter 2021 EBITDA increased by $18.7 million, to $25.8 million from $7.1 million in the fourth quarter of 2020, due to the improved gross profit as noted above.
AMG Critical Minerals
Q4 ‘21
Q4 ‘20
Change
FY ‘21
FY ‘20
Change
Revenue
$79,422
$55,483
43%
$308,523
$213,318
45%
Gross profit
11,189
10,557
6%
48,735
35,629
37%
Gross profit before non-recurring items
11,379
11,651
(2%)
48,690
36,806
32%
Operating profit
2,584
5,279
(51%)
20,181
14,167
42%
EBITDA
6,459
8,871
(27%)
31,200
25,888
21%
AMG Critical Minerals’ revenue increased by $23.9 million, or 43%, to $79.4 million, driven by very strong sales volumes of antimony and improved sales prices across all three businesses.
Gross profit before non-recurring items decreased by 2% in the fourth quarter due to the continuing rise in energy and shipping costs, which were only partially passed on to customers.
SG&A expenses in the fourth quarter of 2021 increased by $3.4 million, to $8.7 million, primarily due to higher share-based and variable compensation expense in the current quarter.
The fourth quarter 2021 EBITDA was $2.4 million lower than the same period in the prior year, due to higher SG&A costs as well as lower profitability driven by higher energy and shipping costs.
AMG Critical Materials Technologies
Q4 ‘21
Q4 ‘20
Change
FY ‘21
FY ‘20
Change
Revenue
$135,533
$130,998
3%
$514,668
$478,134
8%
Gross profit
22,658
11,542
96%
84,413
65,030
30%
Gross profit before non-recurring items
22,388
15,303
46%
84,309
70,386
20%
Operating profit (loss)
3,410
(2,345)
N/A
14,484
1,120
1,193%
EBITDA
11,673
6,587
77%
38,854
30,299
28%
AMG Critical Materials Technologies’ fourth quarter 2021 revenue increased by $4.5 million, or 3% compared to the same period in 2020. This increase was due to higher sales volumes of titanium alloys and higher prices of titanium alloys and chrome metal driven by stronger demand from our aerospace customers. Therefore, fourth quarter 2021 gross profit before non-recurring items increased by $7.1 million, or 46%, to $22.4 million.
SG&A expenses increased by $5.4 million in the fourth quarter of 2021 compared to the same period in 2020, due to higher share-based and variable compensation expense in the current quarter.
AMG Critical Materials Technologies’ EBITDA increased to $11.7 million during the quarter, compared to $6.6 million in the fourth quarter of 2020. This was primarily due to higher profitability in chrome metal and titanium alloys.
The Company signed $84.9 million in new orders during the fourth quarter of 2021, driven by strong orders of remelting, induction, and heat treatment furnaces in China, representing a 1.61x book to bill ratio. Order backlog was $188.2 million as of December 31, 2021, 21% higher than $155.1 million as of September 30, 2021, due largely to strong orders of remelting, heat treatment, and induction furnaces. On a full year basis, the Company signed $227.5 million in new orders, representing a balanced 1.00x book to bill ratio.
Financial Review
Tax
AMG recorded an income tax expense of $8.7 million in 2021, compared to $11.2 in 2020. This variance was mainly driven by improved financial performance offset by movements in the Brazilian real versus the US dollar. The effects of the Brazilian real caused a $3.5 million non-cash deferred tax benefit in 2021. Movements in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $9.9 million in 2021, comprised of $12.9M of cash tax payments net of $3.0 million of refunds. In 2020 AMG paid $8.6 million in taxes, comprised of $18.5 million cash payments net of $9.9 million of refunds. The higher cash payments in 2020 were largely a result of payments of taxes owed from profitable prior years, and the refunds in both years resulted from overpayment in prior years.
Exceptional Items
AMG’s fourth quarter and full year 2021 gross profit includes exceptional items, which are not included in the calculation of EBITDA.
A summary of exceptional items included in gross profit in 2021 and 2020 are below:
Exceptional items included in gross profit
Q4 ‘21
Q4 ‘20
Change
FY ‘21
FY ‘20
Change
Gross profit
$61,797
$28,103
120%
$208,243
$112,653
85%
Inventory cost adjustment
—
2,160
(100%)
1,164
6,219
(81%)
Restructuring (reversal) expense
(140)
4,374
N/A
522
5,700
(91%)
Asset impairment expense (reversal)
153
566
(73%)
(711)
664
N/A
Strategic project expense
1,501
313
380%
4,045
3,217
26%
Others
(506)
—
N/A
—
—
N/A
Gross profit excluding exceptional items
62,805
35,516
77%
213,263
128,453
66%
Liquidity
December 31, 2021
December 31, 2020
Change
Senior secured debt
$371,897
$364,640
2%
Cash & cash equivalents
337,877
207,366
63%
Senior secured net debt
34,020
157,274
(78%)
Other debt
24,398
19,876
23%
Net debt excluding municipal bond
58,418
177,150
(67%)
Municipal bond debt
319,476
319,699
—
Restricted cash
93,434
208,919
(55%)
Net debt
284,460
287,930
(1%)
AMG had a net debt position of $284.5 million as of December 31, 2021.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2021, the Company had $338 million in unrestricted cash and cash equivalents and $170 million available on its revolving credit facility. As such, AMG had $508 million of total liquidity as of December 31, 2021.
In January 2022, AMG entered into €140 million of long-term bilateral unsecured performance-based guarantee facility agreements. These guarantee arrangements support expected customer advanced payments and replace the existing guarantee arrangements.
In November, AMG entered into a new $350 million 7-year senior secured term loan B facility and a $200 million 5-year senior secured revolving credit facility, which together replaced AMG’s prior credit facility and extended the term loan maturity from 2025 to 2028 and revolver maturity from 2023 to 2026. Further strengthening AMG’s commitment to Environmental, Social and Governance, annual CO2 intensity reduction targets were built into the Revolving Credit Facility, making it a Sustainability Linked Loan.
Net Finance Costs
AMG’s fourth quarter 2021 net finance costs were $12.6 million compared to $4.9 million in the fourth quarter of 2020. This increase was mainly driven by the write-off of prior unamortized debt issuance fees during the quarter associated with the refinancing noted above and foreign exchange losses during the quarter.
AMG capitalized $3.8 million of interest costs in the fourth quarter of 2021, in line with $3.8 million in the same period in 2020, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio.
SG&A
AMG’s fourth quarter 2021 SG&A expenses were $39.5 million compared to $26.1 million in the fourth quarter of 2020, with the variance driven largely by increased strategic project costs and higher shared-based and variable compensation expense.
Full year 2021 SG&A expenses were $139.6 million, an increase of $21.8 million, or 19%, versus the prior year. SG&A expenses for 2021 included $89.9 million in personnel costs compared to $68.0 million in 2020. The 2021 personnel costs were increased due to higher share-based and variable compensation expense associated with our profitability during the year, and the 2020 personnel cost was reduced by cost reduction efforts in response to the onset of the pandemic.
Net Income to Shareholders
Net income to shareholders for the fourth quarter of 2021 was $5.7 million compared to a loss of $2.8 million in 2020. Earnings in the fourth quarter of 2021 were impacted (net of tax) by three large non-cash charges: first, a $3.7 million write-off of unamortized financing expenses from the 2018 financing; second, a $4.7 million charge related to 2019 share-based compensation awards which were not expected to vest at the end of the prior year, however, due to higher than anticipated profitability in the current year the awards are now expected to vest; third, a $2.0 million foreign exchange charge due primarily to intercompany debt balances. Excluding these non-cash charges, AMG would have net income to shareholders of $16.1 million, or $0.50 diluted earnings per share, in the fourth quarter of 2021.
Final Dividend Proposed
AMG intends to declare a dividend of €0.40 per ordinary share over the financial year 2021. The interim dividend of €0.10, paid on August 13, 2021, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.30.
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 5th, 2022.
Outlook
Previously, AMG increased its EBITDA guidance for full year 2022 to $225 million or higher based on significantly improved market conditions in lithium and we reaffirm this guidance.
AMG anticipates the Company will increase overall staffing from about 3,300 at the end of 2021 by 5 to 10% due to the hiring associated with the ramp-up of the vanadium expansion in Ohio and the lithium expansion in Germany.
Capital expenditures for 2022 are expected to be between $175 million and $200 million mainly driven by the finalization of construction for the vanadium expansion in Ohio and expenditures related to the construction of the lithium hydroxide plant in Germany.
With regard to financing in 2022, AMG has recently finalized its debt refinancing and although we look to consistently optimize our financial structure, our current liquidity can fully fund all of the approved capital expansion projects mentioned above.
In addition, AMG is pleased to announce a two-pronged commitment to reduce our CO2 emissions and increase our enabled CO2 savings through 2030:
AMG commits to reduce its direct CO2 emissions by 20% by 2030 from a baseline of 2019 (i.e., pre COVID) adjusted for the startup of our Zanesville facility. This is a total reduction of 125,000 tons of CO2.
AMG commits to increase its enabled CO2 reduction by 10% per annum from 2021 levels of 79.0 million through 2030.
(2) Amount includes variable compensation expense which settled in shares in 2021.
(3) The Company is in the ramp-up phase 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.
Consolidated Income Statement
For the quarter ended December 31
In thousands of US dollars
2021
2020
Unaudited
Continuing operations
Revenue
330,360
253,476
Cost of sales
(268,563)
(225,373)
Gross profit
61,797
28,103
Selling, general and administrative expenses
(39,501)
(26,065)
Environmental expense
(230)
(4,287)
Other income, net
229
65
Net other operating expense
(1)
(4,222)
Operating profit (loss)
22,295
(2,184)
Finance income
1,107
2,311
Finance cost
(13,751)
(7,172)
Net finance cost
(12,644)
(4,861)
Share of loss of associates and joint ventures
(219)
(518)
Profit (loss) before income tax
9,432
(7,563)
Income tax (expense) benefit
(5,293)
4,950
Profit (loss) for the period
4,139
(2,613)
Profit (loss) attributable to:
Shareholders of the Company
5,705
(2,839)
Non-controlling interests
(1,566)
226
Profit (loss) for the period
4,139
(2,613)
Earnings (loss) per share
Basic earnings (loss) per share
0.18
(0.10)
Diluted earnings (loss) per share
0.18
(0.10)
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US dollars
2021
2020
Unaudited
Continuing operations
Revenue
1,204,666
937,116
Cost of sales
(996,423)
(824,463)
Gross profit
208,243
112,653
Selling, general and administrative expenses
(139,576)
(117,780)
Environmental expense
(11,941)
(4,342)
Other income, net
415
234
Net other operating expense
(11,526)
(4,108)
Operating profit (loss)
57,141
(9,235)
Finance income
1,938
4,757
Finance cost
(35,540)
(25,851)
Net finance cost
(33,602)
(21,094)
Share of loss of associates and joint ventures
(1,053)
(947)
Profit (loss) before income tax
22,486
(31,276)
Income tax expense
(8,707)
(11,184)
Profit (loss) for the year
13,779
(42,460)
Profit (loss) attributable to:
Shareholders of the Company
13,771
(41,692)
Non-controlling interests
8
(768)
Profit (loss) for the year
13,779
(42,460)
Earnings (loss) per share
Basic earnings (loss) per share
0.44
(1.47)
Diluted earnings (loss) per share
0.44
(1.47)
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Financial Position
In thousands of US dollars
December 31,
2021
Unaudited
December 31, 2020
Assets
Property, plant and equipment
693,624
551,926
Goodwill and other intangible assets
44,684
43,207
Derivative financial instruments
95
1,894
Other investments
29,830
27,527
Deferred tax assets
52,937
58,081
Restricted cash
85,023
208,919
Other assets
8,471
8,496
Total non-current assets
914,664
900,050
Inventories
218,320
152,306
Derivative financial instruments
4,056
5,961
Trade and other receivables
145,435
122,369
Other assets
65,066
44,821
Current tax assets
5,888
5,108
Restricted cash
8,411
—
Cash and cash equivalents
337,877
207,366
Assets held for sale
—
1,005
Total current assets
785,053
538,936
Total assets
1,699,717
1,438,986
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
December 31,
2021
Unaudited
December 31, 2020
Equity
Issued capital
853
831
Share premium
553,715
489,546
Treasury shares
(16,596)
(80,165)
Other reserves
(96,421)
(110,593)
Retained earnings (deficit)
(173,117)
(184,139)
Equity attributable to shareholders of the Company
268,434
115,480
Non-controlling interests
25,718
25,790
Total equity
294,152
141,270
Liabilities
Loans and borrowings
675,384
673,262
Lease liabilities
45,692
47,092
Employee benefits
162,628
197,158
Provisions
14,298
15,322
Deferred revenue
22,341
4,361
Other liabilities
11,098
8,237
Derivative financial instruments
2,064
4,389
Deferred tax liabilities
5,617
5,398
Total non-current liabilities
939,122
955,219
Loans and borrowings
27,341
23,392
Lease liabilities
4,857
4,789
Short-term bank debt
13,046
7,561
Deferred revenue
18,478
1,623
Other liabilities
80,672
66,182
Trade and other payables
252,765
164,999
Derivative financial instruments
6,010
10,264
Advance payments from customers
35,091
29,885
Current tax liability
10,586
7,480
Provisions
17,597
26,322
Total current liabilities
466,443
342,497
Total liabilities
1,405,565
1,297,716
Total equity and liabilities
1,699,717
1,438,986
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US dollars
2021
2020
Unaudited
Cash from operating activities
Profit (loss) for the period
13,779
(42,460)
Adjustments to reconcile net profit (loss) to net cash flows:
Non-cash:
Income tax expense
8,707
11,184
Depreciation and amortization
43,685
43,661
Asset impairment (reversal) expense
(711)
664
Net finance cost
33,602
21,094
Share of loss of associates and joint ventures
1,053
947
(Gain) loss on sale or disposal of property, plant and equipment
(65)
358
Equity-settled share-based payment transactions
10,028
1,429
Movement in provisions, pensions, and government grants
(10,184)
(121)
Working capital and deferred revenue adjustments
22,747
10,829
Cash generated from operating activities
122,641
47,585
Finance costs paid, net
(21,950)
(19,410)
Income tax paid
(9,903)
(8,556)
Net cash from operating activities
90,788
19,619
Cash used in investing activities
Proceeds from sale of property, plant and equipment
1,029
71
Acquisition of property, plant and equipment and intangibles
(162,240)
(123,695)
Acquisitions of subsidiaries
(458)
—
Investments in associates and joint ventures
(1,000)
(1,000)
Change in restricted cash
115,485
100,662
Interest received on restricted cash
39
1,120
Capitalized borrowing cost
(15,838)
(15,150)
Other
30
76
Net cash used in investing activities
(62,953)
(37,916)
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
In thousands of US dollars
2021
2020
Unaudited
Cash from (used in) financing activities
Proceeds from issuance of debt
352,152
9,190
Payment of transaction costs related to debt
(7,630)
—
Repayment of borrowings
(342,781)
(4,072)
Proceeds from issuance of common shares
123,627
—
Net repurchase of common shares
(2,058)
(638)
Dividends paid
(7,598)
(9,513)
Payment of lease liabilities
(5,313)
(4,738)
Contributions by non-controlling interests
667
597
Net cash from (used in) financing activities
111,066
(9,174)
Net increase (decrease) in cash and cash equivalents
138,901
(27,471)
Cash and cash equivalents at January 1
207,366
226,218
Effect of exchange rate fluctuations on cash held
(8,390)
8,619
Cash and cash equivalents at December 31
337,877
207,366
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,300 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 610 975 4979 Michele Fischer mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Amsterdam,1February2022(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM) is pleased to increase its EBITDA guidance for 2022. In December 2021 AMG increased its EBITDA guidance for the full year 2022 to a range of between $175 million and $200 million. Since then, lithium market conditions have significantly improved. As a result, AMG is increasing its EBITDA guidance for 2022 to $225 million or higher.
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 our 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 our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 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,13 December 2021(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM) is pleased to increase its earnings guidance for 2022 based on improved market conditions in lithium as well as favorable conditions throughout our portfolio. AMG is increasing its EBITDA guidance for the full year 2022 to a range of between $175 million and $200 million from the previous guidance (“to exceed $150 million”).
Organizationally, AMG will bring its lithium value chain under one corporate entity named AMG Lithium. AMG Lithium will comprise both AMG’s Brazilian mining and processing plants as well as the German hydroxide project. The new company will be headed by Mr. Fabiano Costa and Dr. Stefan Scherer as Managing Directors. The mission of AMG Lithium is to further increase the long-term value of AMG’s lithium activities.
AMG will discuss its lithium strategy during its virtual Capital Markets Day on January 11, 2022 at 10am EST.
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 combines our recycling and mining operations producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 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.
Active cases at AMG remain at a very low level. We continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.
Strategic Highlights
The construction of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio, a $325 million investment and AMG’s largest capital project to date, is proceeding as planned. Commissioning starts in the first quarter of 2022 and the plant is forecast to achieve full run rate capacity in the fourth quarter of 2022.
Spodumene 1+ will increase Brazil’s spodumene production by 40,000 tons. The project is currently in detailed engineering and commissioning is planned to start in the second quarter of 2023.
AMG’s Supervisory Board approved the construction of the first module of a battery grade lithium hydroxide upgrader in Bitterfeld, Germany in its meeting on October 27, 2021. The total expenditure of $120 million includes the infrastructure necessary to support the next four modules. Commissioning of the facility will commence in the third quarter of 2023.
Shell & AMG Recycling B.V. (SARBV) and its local partner, the United Company for Industry (UCI), signed a memorandum of understanding with Saudi Arabian Oil Company (Saudi Aramco) to jointly explore the feasibility of building a recycling “Supercenter” in the Kingdom of Saudi Arabia.
AMG is building its first lithium vanadium battery (“LIVA”) for industrial power management applications. In order to manage its entrance into this market, AMG acquired Phyr7 GmbH, Heidelberg, a specialist for artificial intelligence-based power management solutions. The first LIVA system will be installed in one of AMG’s German manufacturing plants and is scheduled to be commissioned in the first quarter of 2022.
Financial Highlights
Revenue increased by 58% to $311.9 million in the third quarter 2021 from $197.7 million in the third quarter 2020.
EBITDA was $33.1 million in the third quarter of 2021, more than double the third quarter 2020 EBITDA of $14.1 million, marking the fifth straight quarter of sequential improvement.
Cash from operating activities was $17.6 million in the third quarter of 2021, and $60.6 million on a year-to-date basis, more than triple the total cash from operating activities for full year 2020.
AMG’s liquidity as of September 30, 2021, was $489 million, with $319 million of unrestricted cash and $170 million of revolving credit availability.
Amsterdam, 27 October 2021(Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported third quarter 2021 revenue of $311.9 million, a 58% increase over $197.7 million in the third quarter of 2020. EBITDA for the third quarter of 2021 was $33.1 million, the fifth straight quarter of sequential growth after the pandemic low point in the second quarter of 2020.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “With regard to COVID, we continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.
“AMG continued to sequentially improve EBITDA in the third quarter despite negative seasonality impacts. All of AMG’s businesses are experiencing ongoing price increase and strong volumes, however the operating environment has grown more challenging, with increases in shipping times and costs and higher energy prices affecting every business unit. AMG passes these cost increases through to its customers where possible, and we will continue to actively manage these cost exposures going forward.
“All segments performed well, most notably our Clean Energy Materials segment where presently our major strategic projects are clustered. This segment continues to deliver strong EBITDA, which increased 44% over the second quarter of 2021, to $18 million, the sixth straight quarter of sequentially increasing EBITDA.
“AMG’s Clean Energy Materials segment strategic projects are proceeding as planned. Each of these projects is oriented toward growing our production of electricity storage materials and/or increasing our footprint in the circular economy, and each of these projects – the second spent catalyst recycling facility, Spodumene 1+, and the battery grade lithium hydroxide upgrader in Germany – will significantly enhance our profitability and contribute to meeting our long-term goals.
“Regarding our project execution capability, the construction of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio continues to be on time and within budget. As a reminder, we have also met the spodumene production cost and yield in Brazil that was targeted at the time of the project decision. In transitioning into a high growth company through projects of this kind, execution capability is a critical success factor.
“All of these investments are consistent with our CO2 reduction strategy. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2021 will substantially outperform our 2020 CO2 enabled reduction. In addition, we are preparing comprehensive long-term direct Scope 1 and Scope 2 CO2 reduction targets which will be announced at the Annual General Meeting in May of 2022.”
Key Figures
In 000’s US dollars
Q3 ‘21
Q3 ‘20
Change
Revenue
$311,946
$197,740
58%
Gross profit
51,083
20,849
145%
Gross margin
16.4%
10.5%
Operating profit (loss)
17,346
(8,687)
N/A
Operating margin
5.6%
(4.4%)
Net loss attributable to shareholders
(599)
(12,775)
95%
EPS – Fully diluted
(0.02)
(0.45)
96%
EBIT (1)
22,475
3,097
626%
EBITDA (2)
33,051
14,143
134%
EBITDA margin
10.6%
7.2%
Cash from (used in) operating activities
17,635
(8,393)
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, equity-settled share-based payments, and strategic expenses. Beginning January 1, 2021, AMG has altered its calculation of adjusted EBIT to no longer include the impact of foreign exchange. This alteration was made in consideration of a change in the Company’s hedging policy and to better align the reported adjusted EBITDA with the calculation for our bank covenant calculations. Starting January 2021, the Company is no longer hedging European cash pool intergroup balance sheet exposures which will result in higher volatility in our financial results from foreign exchange which we believe is not representative of our operating performance. Foreign exchange loss in the third quarter of 2021 was $2.5 million. Because of this hedging policy change, we did not retroactively apply this change to the prior year figures, otherwise it would have resulted in a decrease to the prior period EBIT of $0.9 million.
(2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q3 ‘21
Q3 ‘20
Change
Revenue
$105,308
$56,396
87%
Gross profit (loss)
20,120
(135)
N/A
Gross profit before non-recurring items
21,721
4,782
354%
Operating profit (loss)
9,985
(8,269)
N/A
EBITDA
18,029
3,268
452%
AMG Clean Energy Materials’ revenue increased by $48.9 million, or 87%, to $105.3 million, driven mainly by higher sales volumes of lithium concentrate, as well as higher prices in vanadium, tantalum, and lithium concentrate.
Gross profit before non-recurring items during the quarter increased by $16.9 million compared to the same period in the prior year, primarily due to the increased price environment.
SG&A expenses in the third quarter of 2021 were $10.1 million, $2.0 million higher than the third quarter of 2020 due to higher strategic project costs and increased variable compensation expense.
The third quarter 2021 EBITDA increased by $14.8 million, to $18.0 million from $3.3 million in the third quarter of 2020, due to the improved gross profit as noted above.
AMG Critical Minerals
Q3 ‘21
Q3 ‘20
Change
Revenue
$79,392
$52,167
52%
Gross profit
10,660
8,642
23%
Gross profit before non-recurring items
10,843
8,661
25%
Operating profit
4,028
3,409
18%
EBITDA
6,509
6,562
(1%)
AMG Critical Minerals’ revenue increased by $27.2 million, or 52%, to $79.4 million, driven by higher sales volumes across all three businesses, and improved antimony sales prices.
Gross profit before non-recurring items increased by 25% in the third quarter due to increased revenue from each business unit. On a sequential basis, however, energy and shipping costs were higher in the third quarter of 2021 versus the second quarter of 2021, and were only partially passed on to customers.
SG&A expenses in the third quarter of 2021 increased by $1.3 million, to $6.6 million, primarily due to higher personnel costs in the current period.
The third quarter 2021 EBITDA was in line with the same period in the prior year, due to higher personnel costs offset by the improved gross profit as noted above.
AMG Critical Materials Technologies
Q3 ‘21
Q3 ‘20
Change
Revenue
$127,246
$89,177
43%
Gross profit
20,303
12,342
65%
Gross profit before non-recurring items
20,293
13,144
54%
Operating profit (loss)
3,333
(3,827)
N/A
EBITDA
8,513
4,313
97%
AMG Critical Materials Technologies’ third quarter 2021 revenue increased by $38.1 million, or 43% compared to the same period in 2020. This increase was due to higher sales volumes of titanium aluminides and chrome metal, and higher chrome pricing. Therefore, third quarter 2021 gross profit before non-recurring items increased by $7.1 million, or 54%, to $20.3 million.
SG&A expenses increased by $0.8 million, or 5%, in the third quarter of 2021 compared to the same period in 2020, due to higher personnel costs, offset partially by lower professional fees during the quarter.
AMG Critical Materials Technologies’ EBITDA increased to $8.5 million during the quarter, compared to $4.3 million in the third quarter of 2020. This was primarily due to higher profitability related to the higher sales volumes of titanium aluminides and chrome metal as noted above.
The Company signed $27.9 million in new orders during the third quarter of 2021, representing a 0.50x book to bill ratio. This low ratio was driven mainly by timing and seasonality and is expected to be compensated by higher intake in the fourth quarter resulting in a normalized full year book to bill ratio. Order backlog was $155.1 million as of September 30, 2021, 19% lower than $190.6 million as of June 30, 2021, due largely to the delayed orders noted above as well as product mix impacts. The Company is experiencing higher volumes of smaller orders due to diversifying outside of the aerospace market, which reduces the period ending order backlog but does not indicate lower profitability levels.
Financial Review
Tax
AMG recorded an income tax expense of $9.9 million in the third quarter of 2021, compared to a nominal expense in the same period in 2020. This variance was mainly driven by improvements in operating results coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $7.5 million non-cash deferred tax expense in the third quarter of 2021 (2020: $2.1 million expense). Movements in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $4.1 million in the third quarter of 2021, compared to $10.7 million in the third quarter of 2020. The third quarter 2020 payments were primarily a result of final tax payments in Germany related to the highly profitable 2018 tax year.
Profit (loss) for the period
AMG’s third quarter loss for the period of $0.3 million was negatively impacted by two significant non-cash items: (1) The Brazilian real caused a $7.5 million deferred tax expense in the third quarter of 2021. (2) Intergroup balance sheet positions associated with our European cash pooling arrangements incurred $1.8 million of foreign exchange expense (net of tax) during the third quarter of 2021. Excluding these non-cash items would have resulted in profit for the period of $9.0 million for the quarter.
Exceptional Items
AMG’s third quarter 2021 gross profit of $51.1 million 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 2021 and 2020 are below:
Exceptional items included in gross profit
Q3 ‘21
Q3 ‘20
Change
Gross profit
$51,083
20,849
145%
Inventory cost adjustment
—
4,867
(100%)
Restructuring expense
261
528
(51%)
Strategic project expense
1,095
343
219%
Others
418
—
N/A
Gross profit excluding exceptional items
52,857
26,587
99%
During the quarter, the Company incurred expenses for expansion projects which are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
Liquidity
September 30, 2021
December 31, 2020
Change
Senior secured debt
$363,058
$364,640
—
Cash & cash equivalents
319,454
207,366
54%
Senior secured net debt
43,604
157,274
(72%)
Other debt
16,956
19,876
(15%)
Net debt excluding municipal bond
60,560
177,150
(66%)
Municipal bond debt
319,533
319,699
—
Restricted cash
114,827
208,919
(45%)
Net debt
265,266
287,930
(8%)
AMG had a net debt position of $265.3 million as of September 30, 2021. This decrease was mainly due to the issuance of 3.1 million shares for net proceeds of $119 million in April 2021, offset by the significant investment in growth initiatives during the quarter, especially in our vanadium expansion in Ohio, which reduced AMG’s restricted cash balance.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the third quarter. As of September 30, 2021, the Company had $319 million in unrestricted cash and cash equivalents and $170 million available on its revolving credit facility. As such, AMG had $489 million of total liquidity as of September 30, 2021.
Net Finance Costs
AMG’s third quarter 2021 net finance costs were $7.5 million compared to $4.5 million in the third quarter of 2020. This increase was mainly driven by higher foreign exchange losses during the quarter.
AMG capitalized $3.8 million of interest costs in the third quarter of 2021, in line with prior year, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio.
SG&A
AMG’s third quarter 2021 SG&A expenses were $33.8 million compared to $29.6 million in the third quarter of 2020, with the variance driven largely by increased strategic project and personnel costs. The prior period personnel cost had been reduced by cost reduction efforts in response to the onset of the pandemic.
Outlook
For 2021, we reiterate our expectation to sequentially improve our EBITDA quarter-over-quarter for the year.
Given the current market conditions, we expect EBITDA to exceed $150 million for full year 2022, and we expect to reach $50 million of quarterly run-rate EBITDA by the end of 2022, as our vanadium expansion project concludes ramp-up.
(2) Amount includes variable compensation expense which settled in shares in 2021.
(3) The Company is in the ramp-up phase 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 September 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Continuing operations
Revenue
311,946
197,740
Cost of sales
260,863
176,891
Gross profit
51,083
20,849
Selling, general and administrative expenses
33,750
29,619
Other income, net
13
83
Net other operating income
13
83
Operating profit (loss)
17,346
(8,687)
Finance income
(357)
(1,155)
Finance cost
7,900
5,651
Net finance cost
7,543
4,496
Share of loss of associates and joint ventures
(209)
(429)
Profit (loss) before income tax
9,594
(13,612)
Income tax expense
9,904
32
Loss for the period
(310)
(13,644)
Loss attributable to:
Shareholders of the Company
(599)
(12,775)
Non-controlling interests
289
(869)
Loss for the period
(310)
(13,644)
Loss per share
Basic loss per share
(0.02)
(0.45)
Diluted loss per share
(0.02)
(0.45)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Income Statement
For the nine months ended September 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Continuing operations
Revenue
874,306
683,640
Cost of sales
727,860
599,090
Gross profit
146,446
84,550
Selling, general and administrative expenses
100,075
91,715
Environmental expense
(11,711)
(55)
Other income, net
186
169
Net other operating (expense) income
(11,525)
114
Operating profit (loss)
34,846
(7,051)
Finance income
(831)
(2,446)
Finance cost
21,789
18,679
Net finance cost
20,958
16,233
Share of loss of associates and joint ventures
(834)
(429)
Profit (loss) before income tax
13,054
(23,713)
Income tax expense
3,414
16,134
Profit (loss) for the period
9,640
(39,847)
Profit (loss) attributable to:
Shareholders of the Company
8,066
(38,853)
Non-controlling interests
1,574
(994)
Profit (loss) for the period
9,640
(39,847)
Earnings (loss) per share
Basic earnings (loss) per share
0.26
(1.37)
Diluted earnings (loss) per share
0.26
(1.37)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
September 30, 2021
Unaudited
December 31, 2020
Assets
Property, plant and equipment
657,790
551,926
Goodwill and other intangible assets
41,845
43,207
Derivative financial instruments
144
1,894
Other investments
32,146
27,527
Deferred tax assets
57,933
58,081
Restricted cash
114,827
208,919
Other assets
9,370
8,496
Total non-current assets
914,055
900,050
Inventories
197,030
152,306
Derivative financial instruments
4,002
5,961
Trade and other receivables
146,721
122,369
Other assets
64,344
44,821
Current tax assets
6,832
5,108
Cash and cash equivalents
319,454
207,366
Assets held for sale
60
1,005
Total current assets
738,443
538,936
Total assets
1,652,498
1,438,986
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
September 30,
2021
Unaudited
December 31, 2020
Equity
Issued capital
853
831
Share premium
553,715
489,546
Treasury shares
(16,828)
(80,165)
Other reserves
(99,292)
(110,593)
Retained earnings (deficit)
(185,583)
(184,139)
Equity attributable to shareholders of the Company
252,865
115,480
Non-controlling interests
27,674
25,790
Total equity
280,539
141,270
Liabilities
Loans and borrowings
671,133
673,262
Lease liabilities
44,466
47,092
Employee benefits
176,580
197,158
Provisions
15,170
15,322
Deferred revenue
22,798
4,361
Other liabilities
10,427
8,237
Derivative financial instruments
3,530
4,389
Deferred tax liabilities
4,620
5,398
Total non-current liabilities
948,724
955,219
Loans and borrowings
23,914
23,392
Lease liabilities
4,690
4,789
Short-term bank debt
4,500
7,561
Deferred revenue
17,852
1,623
Other liabilities
76,737
66,182
Trade and other payables
233,648
164,999
Derivative financial instruments
4,798
10,264
Advance payments from customers
28,673
29,885
Current tax liability
9,185
7,480
Provisions
19,238
26,322
Total current liabilities
423,235
342,497
Total liabilities
1,371,959
1,297,716
Total equity and liabilities
1,652,498
1,438,986
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the nine months ended September 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Cash from operating activities
Profit (loss) for the period
9,640
(39,847)
Adjustments to reconcile net profit (loss) to net cash flows:
Non-cash:
Income tax expense
3,414
16,134
Depreciation and amortization
32,478
32,181
Asset impairment (reversal) expense
(864)
98
Net finance cost
20,958
16,233
Share of loss of associates and joint ventures
834
429
(Gain) loss on sale or disposal of property, plant and equipment
(96)
248
Equity-settled share-based payment transactions
3,143
5,956
Movement in provisions, pensions, and government grants
(3,267)
(7,468)
Working capital and deferred revenue adjustments
17,908
7,813
Cash generated from operating activities
84,148
31,777
Finance costs paid, net
(14,960)
(14,261)
Income tax paid
(8,625)
(9,255)
Net cash from operating activities
60,563
8,261
Cash used in investing activities
Proceeds from sale of property, plant and equipment
1,071
48
Acquisition of property, plant and equipment and intangibles
(125,366)
(77,042)
Investments in associates and joint ventures
(1,000)
(1,000)
Change in restricted cash
94,092
68,436
Interest received on restricted cash
33
1,107
Capitalized borrowing cost
(15,608)
(15,134)
Other
(428)
25
Net cash used in investing activities
(47,206)
(23,560)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the nine months ended September 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Cash from (used in) financing activities
Proceeds from issuance of debt
2,644
7,684
Payment of transaction costs related to debt
(390)
–
Repayment of borrowings
(8,047)
(2,997)
Net proceeds from issuance (repurchase of) common shares
121,569
(638)
Dividends paid
(7,598)
(9,513)
Payment of lease liabilities
(3,939)
(3,308)
Contributions by non-controlling interests
648
557
Net cash from (used in) financing activities
104,887
(8,215)
Net increase (decrease) in cash and cash equivalents
Thispress releasecontains regulatedinformation as definedinthe DutchFinancialMarkets SupervisionAct(Wetop hetfinancieel toezicht).
AboutAMG
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 combines our recycling and mining operations producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, pleasecontact: AMGAdvanced MetallurgicalGroupN.V.+1610 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.
AMG regrets to inform you that on July 15, 2021, AMG experienced its first COVID related fatality among its more than 3,000 employees since the beginning of the pandemic. Active cases at AMG have receded to a very low level. We continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.
Strategic Highlights
The construction of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio, AMG’s largest capital project, is proceeding as planned.
In Nuremberg, Germany, AMG Titanium Alloys & Coatings has started the construction of a plant to produce vanadium electrolytes from spent catalysts, targeting the vanadium battery market.
AMG Engineering is building AMG’s first industrial battery, a Hybrid Lithium Vanadium Redox Flow Battery System for use in one of our operating units to flatten production-driven spikes in electricity demand and thereby reduce CO2 emissions and energy costs.
The new all-solid-state-battery (ASSB) materials pilot plant of AMG Lithium in Frankfurt, Germany, has provided samples to all of the major battery manufacturers working on the emerging transformation to ASSB technology.
Financial Highlights
Revenue increased by 44% to $298.4 million in the second quarter 2021 from $207.6 million in the second quarter 2020.
EBITDA was $31.4 million in the second quarter of 2021, over four times higher than second quarter 2020 EBITDA of $7.8 million, marking the fourth straight quarter of sequential improvement.
Cash from operating activities was $23.0 million in the second quarter of 2021, and $42.9 on a year-to-date basis, more than double the total cash from operating activities for full year 2020.
Net income attributable to shareholders was $3.6 million in the second quarter of 2021 compared to a net loss of $12.5 million in the second quarter of 2020.
AMG’s liquidity as of June 30, 2021, was $511 million, with $341 million of unrestricted cash and $170 million of revolving credit availability.
AMG declares an interim dividend of €0.10 per ordinary share, to be paid in the third quarter of 2021.
In April 2021, AMG issued 3.1 million new shares, generating $119 million of net proceeds and increasing liquidity to approximately $500 million. With this equity raise, in combination with cash on hand and strong projected cash flow from operations, AMG can fully fund its current strategic projects while maintaining strong liquidity.
Amsterdam,28July2021(RegulatedInformation)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported second quarter 2021 revenue of $298.4 million, a 44% increase over $207.6 million in the second quarter of 2020. EBITDA for the second quarter of 2021 was $31.4 million, the fourth straight quarter of sequential growth after the pandemic low point of $7.8 million in the second quarter of 2020.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “With regard to COVID, active cases at AMG have receded to a very low level; however it is with our deepest regret that I have to inform you that AMG experienced its first COVID-related fatality. We continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.
“All three of AMG’s segments performed well in the second quarter, and global demand for our products continued to strengthen throughout the first half of 2021.
“Market prices for materials across the Company’s portfolio have continued to increase, most notably for our Clean Energy Materials segment, which has delivered EBITDA growth of more than 22% quarter-over-quarter for each of the last five quarters.
“EBITDA for the AMG Critical Materials Technologies segment was $9.6 million for the quarter, the fourth straight quarter of sequentially increasing EBITDA, while achieving a consistent book to bill ratio despite ongoing weakness of the aerospace sector.
“In 2007 we introduced AMG to the public markets as a producer of “critical” materials. The real meaning of “criticality” has become more apparent over time, and in particular, materials associated with electricity storage are now perceived as especially critical, because increased electricity storage is required in order to enable higher utilization of renewable energy production.
“All of AMG’s strategic projects cluster in our Clean Energy Materials segment and all of these projects are proceeding as planned. Each of these projects is oriented toward growing our production of electricity storage materials or increasing our footprint in the circular economy.
AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio, the largest capital project AMG has undertaken to date, is scheduled to come in on time and on budget.
AMG Lithium has signed the engineering contracts and has purchased the site and long-lead items for the battery grade lithium hydroxide refinery in Bitterfeld, Sachsen-Anhalt, Germany.
After extensive tests, a new plant to produce vanadium oxide and vanadium electrolyte materials from spent catalysts is under construction at AMG Titanium Alloys & Coatings in Nuremberg, Germany.
AMG Engineering is building AMG’s first industrial battery, a Hybrid Lithium- Vanadium Redox Flow Battery System for use in one of our operating units to flatten production-driven spikes in electricity demand and thereby reduce CO2 emissions and energy costs. The market potential for this battery concept is very large.”
Key Figures
In 000’s US dollars
Q2 ‘21
Q2 ‘20
Change
Revenue
$298,374
$207,610
44%
Gross profit
48,499
20,541
136
Gross margin
16.3%
9.9%
Operating profit (loss)
3,691
(6,690)
N/A
Operating margin
1.2%
(3.2%)
Net income (loss) attributable to shareholders
3,566
(12,510)
N/A
EPS – Fully diluted
0.11
(0.44)
N/A
EBIT (1)
20,462
(2,901)
N/A
EBITDA (2)
31,401
7,756
305%
EBITDA margin
10.5%
3.7%
Cash from operating activities
23,018
20,333
13%
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses, equity-settled share-based payments, and strategic expenses. Beginning January 1, 2021, AMG has altered its calculation of adjusted EBIT to no longer include the impact of foreign exchange. This alteration was made in consideration of a change in the Company’s hedging policy and to better align the reported adjusted EBITDA with the calculation for our bank covenant calculations. Starting January 2021, the Company is no longer hedging certain intergroup balance sheet exposures which will result in higher volatility in our financial results from foreign exchange which we believe is not representative of our operating performance. Foreign exchange gain in the second quarter of 2021 was $0.9 million. Because of this hedging policy change, we did not retroactively apply this change to the prior year figures, otherwise it would have resulted in an increase to the prior period EBIT of $0.5 million.
(2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
Q2 ‘21
Q2 ‘20
Change
Revenue
$90,135
$53,054
70%
Gross profit
13,822
1,818
660%
Gross profit before non-recurring items
16,122
4,020
301%
Operating loss
(7,415)
(5,481)
(35%)
EBITDA
12,554
1,279
882%
AMG Clean Energy Materials’ revenue increased by $37.1 million, or 70%, to $90.1 million, driven mainly by higher sales volumes of vanadium, tantalum and lithium concentrate, as well as higher prices in vanadium and lithium concentrate.
Gross profit before non-recurring items during the quarter increased by $12.1 million compared to the same period in the prior year, largely due to the improving price environment and increasing global demand for our products.
SG&A expenses in the second quarter of 2021 were $9.6 million, $2.3 million higher than the second quarter of 2020 due to higher strategic project costs and increased variable compensation expense.
During the quarter, AMG discovered additional slag quantities at its decommissioned site in New Jersey. This material was primarily located below surface level and was inconsistent with earlier estimates. As such, AMG recorded an adjustment to its environmental provision of $11.7 million associated with these higher quantities, and management does not expect any additional remediation to be required. This adjustment negatively impacted operating loss for the period.
The second quarter 2021 EBITDA increased by $11.3 million, to $12.6 million from $1.3 million in the second quarter of 2020, due to the improved gross profit as noted above.
AMG Critical Minerals
Q2 ‘21
Q2 ‘20
Change
Revenue
$76,793
$47,908
60%
Gross profit
13,732
6,141
124%
Gross profit before non-recurring items
13,397
6,186
117%
Operating profit
7,009
1,194
487%
EBITDA
9,220
3,648
153%
AMG Critical Minerals’ revenue increased by $28.9 million, or 60%, to $76.8 million, driven by higher sales volumes and higher sales prices across all three business units.
Gross profit before non-recurring items increased by 117% in the second quarter due to increased revenue from each business unit.
SG&A expenses in the second quarter of 2021 increased by $1.9 million, to $6.8 million, primarily due to higher personnel costs in the current period.
The second quarter 2021 EBITDA margin was 12.0%, compared to 7.6% in the same period in the prior year, due to increased profitability as noted above.
AMG Critical Materials Technologies
Q2 ‘21
Q2 ‘20
Change
Revenue
$131,446
$106,648
23%
Gross profit
20,945
12,582
66%
Gross profit before non-recurring items
21,059
13,045
61%
Operating profit (loss)
4,097
(2,403)
N/A
EBITDA
9,627
2,829
240%
AMG Critical Materials Technologies’ second quarter 2021 revenue increased by $24.8 million, or 23% compared to the same period in 2020. This increase was due to higher revenue from engineering and heat treatment services businesses, and higher sales volumes of titanium aluminides and chrome metal, both of which have begun to recover from the second quarter 2020 pandemic low. Consequently, second quarter 2021 gross profit before non-recurring items increased by $8.0 million, or 61%, to $21.1 million.
SG&A expenses increased by $1.9 million, or 12%, in the second quarter of 2021 compared to the same period in 2020, due to higher personnel costs and higher professional fees during the quarter.
AMG Critical Materials Technologies’ EBITDA increased to $9.6 million during the quarter, compared to $2.8 million in the second quarter of 2020. This was primarily due to higher profitability related to increased activity in the engineering and heat treatment services businesses, as well as the higher sales volumes of titanium aluminides and chrome metal. Since the second quarter of 2020, AMG Critical Materials Technologies’ EBITDA has experienced sequential growth quarter-over-quarter.
Order backlog was $190.6 million as of June 30, 2021, in line with $190.7 million as of March 31, 2021. The Company signed $57.3 million in new orders during the second quarter of 2021, representing a 0.92x book to bill ratio. The quarter benefited from strong orders of remelting and induction furnaces.
Financial Review
Tax
AMG recorded an income tax benefit of $5.6 million in the second quarter of 2021, compared to a benefit of $0.4 million in the same period in 2020. This variance was mainly driven by movements in the Brazilian real offset partially by higher pre-tax income compared to the prior period. The effects of the Brazilian real caused an $12.4 million non-cash deferred tax benefit in the second quarter of 2021 (2020: $3.3 million expense). Movements in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $2.5 million in the second quarter of 2021, compared to a tax refund of $2.4 million in the second quarter of 2020 which was largely due to international COVID-19 tax measures that enabled AMG to delay most of its tax payments during the prior year’s quarter and higher taxable income in the current year.
Exceptional Items
AMG’s second quarter 2021 gross profit of $48.5 million 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 2021 and 2020 are below:
Exceptional items included in gross profit
Q2 ‘21
Q2 ‘20
Change
Gross profit
$48,499
$20,541
136%
Inventory cost adjustment
1,497
1,093
37%
Restructuring expense
334
370
(10%)
Asset impairment (reversal) expense
(640)
81
N/A
Strategic project expense
888
1,166
(24%)
Gross profit excluding exceptional items
50,578
23,251
118%
AMG had a $1.5 million non-cash expense during the second quarter of 2021 as a result of inventory cost adjustments associated with price movements at the beginning of the second quarter which has been adjusted in EBITDA. During the quarter, the Company incurred expenses for expansion projects which are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
Liquidity
June 30, 2021
December 31, 2020
Change
Senior secured debt
$363,487
$364,640
—%
Cash & cash equivalents
341,102
207,366
64%
Senior secured net debt
22,385
157,274
(86%)
Other debt
21,235
19,876
7%
Net debt excluding municipal bond
43,620
177,150
(75%)
Municipal bond debt
319,590
319,699
—%
Restricted cash
143,357
208,919
(31%)
Net debt
219,853
287,930
(24%)
AMG had a net debt position of $219.9 million as of June 30, 2021. This decrease was mainly due to the additional issuance of shares which generated $119 million of net proceeds offset by the significant investment in growth initiatives during the quarter, especially in our vanadium expansion in Ohio.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the second quarter. As of June 30, 2021, the Company had $341 million in unrestricted cash and cash equivalents and $170 million available on its revolving credit facility. As such, AMG had $511 million of total liquidity as of June 30, 2021.
Net Finance Costs
AMG’s second quarter 2021 net finance costs were $4.8 million compared to $6.3 million in the second quarter of 2020. This decline was mainly driven by favorable foreign exchange movements.
AMG capitalized $3.8 million of interest costs in the second quarter of 2021 compared to $3.7 million in the prior year, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio.
SG&A
AMG’s second quarter 2021 SG&A expenses were $33.2 million compared to $27.2 million in the second quarter of 2020, with the variance driven largely by strategic project and personnel costs. The prior period personnel cost had been reduced by cost reduction efforts in response to the onset of the pandemic.
Outlook
Given the current market conditions, we reiterate our confidence in being able to exceed $120 million in EBITDA for full year 2021, as we announced in May, and we expect to continue to sequentially improve our EBITDA quarter-over-quarter for the remainder of the year.
*Beginning January 1, 2021, AMG has altered its calculation of adjusted EBITDA to no longer include the impact of foreign exchange. This alteration was made in consideration of a change in the Company’s hedging policy and to better align the reported adjusted EBITDA with the calculation for our bank covenant calculations. Starting January 2021, the Company is no longer hedging certain intergroup balance sheet exposures which will result in higher volatility in our financial results from foreign exchange which we believe is not representative of our ongoing operating performance. Foreign exchange gain in the second quarter of 2021 was $0.9 million. Because of this hedging policy change, we did not retroactively apply this change to the prior year figures, otherwise it would have resulted in an increase to the prior period adjusted EBIT of $0.5 million.
**Amount includes variable compensation expense which settled in shares in 2021.
***Shieldalloy Metallurgical Corporation (“SMC”), AMG’s subsidiary, has completed the removal of low-level radioactive materials, primarily including slag, from the former storage yard of SMC’s decommissioned Newfield, NJ site. During the quarter, AMG discovered additional slag quantities that were primarily located below surface level and were inconsistent with earlier estimates. As such, AMG recorded an adjustment to its environmental provision of
$11.7 million associated with these higher quantities, and management does not expect any additional remediation to be required. This adjustment negatively impacted operating loss for the period.
****The Company is in the ramp-up phase for three significant strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, 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 June 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Continuing operations
Revenue
298,374
207,610
Cost of sales
249,875
187,069
Gross profit
48,499
20,541
Selling, general and administrative expenses
33,232
27,209
Environmental expense
11,651
55
Other income, net
(75)
(33)
Net other operating expense
11,576
22
Operating profit (loss)
3,691
(6,690)
Finance income
(264)
(419)
Finance cost
5,025
6,748
Net finance cost
4,761
6,329
Share of loss of associates and joint ventures
(238)
—
Loss before income tax
(1,308)
(13,019)
Income tax benefit
(5,580)
(413)
Profit (loss) for the period
4,272
(12,606)
Profit (loss) attributable to:
Shareholders of the Company
3,566
(12,510)
Non-controlling interests
706
(96)
Profit (loss) for the period
4,272
(12,606)
Earnings (loss) per share
Basic earnings (loss) per share
0.11
(0.44)
Diluted earnings (loss) per share
0.11
(0.44)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Income Statement
For the six months ended June 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Continuing operations
Revenue
562,360
485,900
Cost of sales
466,997
422,199
Gross profit
95,363
63,701
Selling, general and administrative expenses
66,325
62,096
Environmental expense
11,711
55
Other income, net
(173)
(86)
Net other operating expense (income)
11,538
(31)
Operating profit
17,500
1,636
Finance income
(474)
(1,291)
Finance cost
13,889
13,028
Net finance cost
13,415
11,737
Share of loss of associates and joint ventures
(625)
—
Profit (loss) before income tax
3,460
(10,101)
Income tax (benefit) expense
(6,490)
16,102
Profit (loss) for the period
9,950
(26,203)
Profit (loss) attributable to:
Shareholders of the Company
8,665
(26,078)
Non-controlling interests
1,285
(125)
Profit (loss) for the period
9,950
(26,203)
Earnings (loss) per share
Basic earnings (loss) per share
0.29
(0.92)
Diluted earnings (loss) per share
0.28
(0.92)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
In thousands of US dollars
June 30, 2021 Unaudited
December 31, 2020
Assets
Property, plant and equipment
625,467
551,926
Goodwill and other intangible assets
41,985
43,207
Derivative financial instruments
659
1,894
Other investments
32,404
27,527
Deferred tax assets
65,688
58,081
Restricted cash
143,357
208,919
Other assets
9,817
8,496
Total non-current assets
919,377
900,050
Inventories
191,638
152,306
Derivative financial instruments
4,688
5,961
Trade and other receivables
151,374
122,369
Other assets
61,821
44,821
Current tax assets
5,439
5,108
Cash and cash equivalents
341,102
207,366
Assets held for sale
1,474
1,005
Total current assets
757,536
538,936
Total assets
1,676,913
1,438,986
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Financial Position
(continued)
In thousands of US dollars
June 30, 2021 Unaudited
December 31, 2020
Equity
Issued capital
905
831
Share premium
608,194
489,546
Treasury shares
(71,481)
(80,165)
Other reserves
(96,192)
(110,593)
Retained earnings (deficit)
(181,757)
(184,139)
Equity attributable to shareholders of the Company
259,669
115,480
Non-controlling interests
27,867
25,790
Total equity
287,536
141,270
Liabilities
Loans and borrowings
Loans and borrowings
676,142
673,262
Lease liabilities
44,296
47,092
Employee benefits
181,275
197,158
Provisions
15,387
15,322
Deferred revenue
23,282
4,361
Other liabilities
14,677
8,237
Derivative financial instruments
3,369
4,389
Deferred tax liabilities
4,605
5,398
Total non-current liabilities
963,033
955,219
Loans and borrowings
20,670
23,392
Lease liabilities
4,450
4,789
Short-term bank debt
7,500
7,561
Deferred revenue
19,212
1,623
Other liabilities
83,425
66,182
Trade and other payables
225,726
164,999
Derivative financial instruments
2,951
10,264
Advance payments from customers
32,323
29,885
Current tax liability
9,614
7,480
Provisions
20,473
26,322
Total current liabilities
426,344
342,497
Total liabilities
1,389,377
1,297,716
Total equity and liabilities
1,676,913
1,438,986
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
For the six months ended June 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Cash from operating activities
Profit (loss) for the period
9,950
(26,203)
Adjustments to reconcile net profit (loss) to net cash flows:
Non-cash:
Income tax (benefit) expense
(6,490)
16,102
Depreciation and amortization
21,902
21,135
Asset impairment (reversal) expense
(776)
98
Net finance cost
13,415
11,737
Share of loss of associates and joint ventures
625
—
(Gain) loss on sale or disposal of property, plant and equipment
(91)
114
Equity-settled share-based payment transactions
2,127
2,744
Movement in provisions, pensions, and government grants
2,647
(6,432)
Working capital and deferred revenue adjustments
14,171
4,724
Cash generated from operating activities
57,480
24,019
Finance costs paid, net
(10,053)
(8,826)
Income tax (paid) received
(4,499)
1,461
Net cash from operating activities
42,928
16,654
Cash used in investing activities
Proceeds from sale of property, plant and equipment
1,055
6
Acquisition of property, plant and equipment and intangibles
(78,606)
(46,480)
Investments in associates and joint ventures
(1,000)
(1,000)
Change in restricted cash
65,562
37,254
Interest received on restricted cash
25
1,067
Capitalized borrowing cost
(7,795)
(7,417)
Other
19
3
Net cash used in investing activities
(20,740)
(16,567)
AMG Advanced Metallurgical Group N.V.
Condensed Interim Consolidated Statement of Cash Flows
(continued)
For the six months ended June 30
In thousands of US dollars
2021
2020
Unaudited
Unaudited
Cash from (used) in financing activities
Proceeds from issuance of debt
2,411
6,370
Payment of transaction costs related to debt
(390)
—
Repayment of borrowings
(3,127)
(2,281)
Net proceeds from (repurchase of) common shares
121,569
(638)
Dividends paid
(3,858)
(6,167)
Payment of lease liabilities
(2,608)
(2,167)
Contributions by non-controlling interests
648
368
Net cash from (used) in financing activities
114,645
(4,515)
Net increase (decrease) in cash and cash equivalents
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 combines our recycling and mining operations producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg–nv.com).
For furtherinformation,pleasecontact: AMGAdvancedMetallurgical GroupN.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, 28 July 2021(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) declares an interim dividend of €0.10 per ordinary share, unchanged from the interim dividend of €0.10 per ordinary share in the prior year.
The interim dividend of €0.10 per ordinary share, in respect of the period from January 1, 2021 to June 30, 2021, is payable on August 13, 2021 to shareholders of record as of August 4, 2021. The ex-dividend date will be August 3, 2021. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Clean Energy Materials combines our recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 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, 6 May 2021(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during its Annual General Meeting held virtually on May 6, 2021, 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 6, 2021. In addition, Mr. Eric Jackson was reappointed as Chief Operating Officer and member of the Management Board for a term of 4 years, with effect from May 6, 2021.
During the meeting, Mr. Willem van Hassel and Mr. Herb Depp were reappointed as independent members of the Supervisory Board for terms of four years and two years, respectively, beginning May 6, 2021.
Mr. Frank Löhner has requested to step down from AMG’s Supervisory Board in view of other pressing priorities in his career, having served on AMG’s Supervisory Board since 2018. Given the vacancy created by the departure of Mr. Löhner, Mr. Warmolt Prins was appointed as an independent member of the Supervisory Board for a term of four years beginning May 6, 2021.
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 combines our recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 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, 6 May 2021(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 6, 2021, AMG’s shareholders approved the payment of a dividend of €0.20 per ordinary share over the financial year 2020. The interim dividend of €0.10, paid on August 13, 2020, was deducted from the amount distributed to shareholders. The final dividend per ordinary share therefore amounts to €0.10.
Payment of the final dividend will be completed on May 13, 2021, to shareholders of record on May 11, 2021. The ex-dividend date is May 10, 2021. 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 financieeltoezicht).
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 combines our recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 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, 6 May 2021(Regulated Information)— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) is pleased to announce that during its Annual Meeting held virtually on May 6, 2021, Dr. Heinz Schimmelbusch, CEO and Chairman of the Management Board, presented a comprehensive update on the Company’s strategic growth projects, including guidance on AMG’s long-term financial target.
Based on the growth opportunities that exist throughout AMG’s portfolio, in particular AMG Clean Energy Materials’ spent catalyst recycling expansion and lithium value chain projects, AMG expects to deliver an EBITDA level of $350 million, or more, in the next five years or less.
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 combines our recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.
With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact: AMG Advanced Metallurgical Group N.V.+1 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.