Amsterdam, 22 February 2023 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported fourth quarter 2022 revenue of $390 million, an 18% increase versus the fourth quarter of 2021. Fourth quarter 2022 EBITDA of $104 million was more than double the fourth quarter of 2021, and drove AMG to a record-setting full year EBITDA of $343 million.
| In 000’s US dollars | FY ‘22 | FY ‘21 | Change |
| Revenue | $1,642,774 | $1,204,666 | 36% |
| EBITDA (1) | 342,550 | 136,676 | 151% |
| Cash from operating activities | 167,567 | 90,788 | 85% |
| Net income attributable to shareholders | 187,589 | 13,771 | |
| EPS – Fully diluted | 5.73 | 0.44 | |
| Return on Capital Employed | 30.8% | 11.9% |
Note:
(1) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG’s full year 2022 EBITDA, revenue, gross profit, operating cash flows, return on capital employed, and net income were the highest in the company’s history by significant margins. This result is due to the AMG Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $215 million, or 63% of the total EBITDA for the year. Moreover, AMG exceeded $100 million of EBITDA for the second straight quarter. EBITDA for the fourth quarter of 2022 was $104 million compared to $44 million in the fourth quarter of 2021, an increase of $60 million, or 137%. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2022 enabled 99.4 million tons of CO2 reduction, 26% more than the 79.0 million tons of enabled CO2 reduction in 2021.”
Outlook
AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.
AMG anticipates the Company will increase overall staffing from about 3,400 at the end of 2022 by 5% due to the hiring associated with the ramp-up of the vanadium expansion in Ohio and the lithium expansion in Germany.
Capital expenditures for 2023 are expected to be between $175 million and $200 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.
With regard to financing in 2023, AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $532 million can fully fund all of the approved capital expansion projects and all other financial obligations.
In addition, we reaffirm our two-pronged commitment to reduce our CO2 emissions and increase our enabled CO2 savings through 2030.
Strategic Highlights
Lithium
- The spodumene production expansion project in AMG Brazil is progressing. The project will solidify AMG’s low-cost position. The objective is to be at full capacity in the second half of 2023.
- The AMG Lithium refinery in Bitterfeld, Germany, Europe’s first lithium hydroxide refinery, is under construction, and commissioning for the first 20,000-ton module of the battery-grade lithium hydroxide upgrader will commence in the fourth quarter of 2023.
- AMG Lithium has signed a non-binding memorandum of understanding with FREYR Battery, the basis of which is for AMG Lithium to supply FREYR between 3,000 to 5,000 tons per annum of battery-grade lithium hydroxide.
- AMG Brazil, JX Nippon Mining & Metals Corporation (“JXNMM”) and TANIOBIS GmbH announced a strategic partnership in December 2022 for the production and supply of tantalum concentrate from AMG’s Mibra Mine in Brazil. JXNMM will invest in the expansion of tantalum concentrate production that is occurring in combination with AMG’s already announced expansion of spodumene capacity. All tantalum pre-concentrate will be sold to TANIOBIS, providing long-term stability in tantalum sales and corresponding by-product credits to lithium production costs for AMG Brazil.
Vanadium
- AMG finalized the completion of the new vanadium spent catalyst recycling facility in Zanesville, Ohio. Operations began on October 29, 2022, and we are targeting full production capacity in the second quarter of 2023.
- Shell & AMG Recycling B.V. (“SARBV”) is advancing its projects in the Middle East, in particular the first phase of the Supercenter project based on long-term supply agreements with Saudi Arabian Oil Company (“Aramco”). Plant design optimization, site selection and permitting activities are progressing and the FEL3 partnering with Hatch began in December 2022.
- AMG LIVA put its first industrial battery – the Hybrid Energy Storage System (“HESS”) – into fully automatic operation mode in AMG Graphite’s plant in Hauzenberg in November 2022.
- AMG LIVA sold its first HESS to a third party in December 2022 to Wipotec GmbH, a leading global provider of intelligent weighing and inspection technology located in Southern Germany. The battery will be integrated into the facility’s power system.
- In January 2023, AMG approved building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte. Basic engineering for the plant was completed in November, CAPEX is expected to be $15 million, and production is expected to start at the end of 2023.
Financial Highlights
- Revenue increased by 18% to $390 million in the fourth quarter of 2022 from $330 million in the fourth quarter of 2021. On a full year basis, revenue increased by 36%.
- EBITDA was $104 million in the fourth quarter of 2022, up 137% versus the fourth quarter 2021 EBITDA of $44 million. Full year EBITDA of $343 million is 151% higher than the prior year.
- Annualized return on capital employed was 30.8% for 2022, more than double the 11.9% for 2021.
- Cash flow from operations was $168 million for full year 2022, compared to $91 million in 2021, driven by the high profitability of AMG Lithium in Brazil.
- Net income attributable to shareholders for full year 2022 was $188 million, yielding $5.73 diluted earnings per share compared to $0.44 in 2021.
- AMG’s liquidity as of December 31, 2022 was $532 million, with $346 million of unrestricted cash and $186 million of revolving credit availability.
- The total 2022 dividend proposed is €0.70 per ordinary share, including the interim dividend of €0.30, paid on August 10, 2022.
Key Figures
| In 000’s US dollars | ||||||
| Q4 ‘22 | Q4 ‘21 | Change | FY ‘22 | FY ‘21 | Change | |
| Revenue | $390,004 | $330,360 | 18% | $1,642,774 | $1,204,666 | 36% |
| Gross profit | 119,981 | 61,797 | 94% | 409,486 | 208,243 | 97% |
| Gross margin | 30.8% | 18.7% | 24.9% | 17.3% | ||
| Operating profit | 82,319 | 22,295 | 269% | 307,059 | 57,141 | 437% |
| Operating margin | 21.1% | 6.7% | 18.7% | 4.7% | ||
| Net income attributable to shareholders |
60,697 | 5,705 | 964% | 187,589 | 13,771 | 1,262% |
| EPS – Fully diluted | 1.85 | 0.18 | 928% | 5.73 | 0.44 | 1,202% |
| EBIT (1) | 91,719 | 32,678 | 181% | 297,251 | 92,991 | 220% |
| EBITDA (2) | 104,061 | 43,885 | 137% | 342,550 | 136,676 | 151% |
| EBITDA margin | 26.7% | 13.3% | 20.9% | 11.3% | ||
| Cash from operating activities |
56,969 | 30,225 | 88% | 167,567 | 90,788 | 85% |
Notes:
(1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses.
(2) EBITDA is defined as EBIT adjusted for depreciation and amortization.
Operational Review
AMG Clean Energy Materials
| Q4 ‘22 | Q4 ‘21 | Change | FY ‘22 | FY ‘21 | Change | |
| Revenue | $176,065 | $115,405 | 53% | $667,804 | $381,475 | 75% |
| Gross profit | 81,583 | 27,950 | 192% | 267,862 | 75,095 | 257% |
| Gross profit before non-recurring items |
82,784 | 29,038 | 185% | 273,417 | 80,264 | 241% |
| Operating profit | 69,779 | 16,301 | 328% | 222,590 | 22,476 | 890% |
| EBITDA | 80,347 | 25,753 | 212% | 259,480 | 66,622 | 289% |
AMG Clean Energy Materials’ revenue increased 53% compared to the fourth quarter of 2021, to $176 million, driven mainly by higher prices in vanadium, tantalum and lithium concentrates, as well as increased sales volumes of vanadium and tantalum concentrate. The higher prices and volumes in 2022 propelled revenue for the segment 75% higher than in 2021.
Gross profit before non-recurring items for the quarter increased 185% compared to the same period in the prior year. The segment’s full year 2022 gross profit before non-recurring items grew 241% compared to 2021, primarily due to the increased price environment.
SG&A expenses in the fourth quarter of 2022 were in line with the same period in 2021 at $12 million. Full year 2022 SG&A expenses were 11% higher than in 2021, largely due to increased professional fees associated with strategic projects during 2022 offset by lower share-based compensation.
The fourth quarter 2022 EBITDA increased 212%, to $80 million, from $26 million in the fourth quarter of 2021, due to the improved gross profit as noted above. The segment’s full year 2022 EBITDA of $259 million was 289% higher than the 2021 EBITDA, largely driven by the lithium business. Vanadium profitability was impacted in the fourth quarter of 2022 by a sequential drop in index prices of 16% from the third quarter and the impact of start-up costs for Zanesville.
During the fourth quarter of 2022, a total of 21,329 dry metric tons (“dmt”) of spodumene was sold. The average realized sales price was $3,682/dmt CIF China for the quarter. The average cost per ton for the quarter was $228/dmt CIF China. This exceptional cost per ton result was driven by high sales volumes of tantalum concentrate in the quarter, and drove a quarterly EBITDA figure for AMG Brazil of $73 million.
For the full year 2022, a total of 86,713 dmt of spodumene was sold. The average realized sales price was $2,805/dmt CIF China and the average cost per ton for the full year was $461/dmt CIF China. Total EBITDA for AMG Brazil was $215 million.
AMG Critical Minerals
| Q4 ‘22 | Q4 ‘21 | Change | FY ‘22 | FY ‘21 | Change | |
| Revenue | $69,242 | $79,422 | (13%) | $364,502 | $308,523 | 18% |
| Gross profit | 19,017 | 11,189 | 70% | 46,721 | 48,735 | (4%) |
| Gross profit before non-recurring items |
18,641 | 11,379 | 64% | 57,928 | 48,690 | 19% |
| Operating profit | 10,961 | 2,584 | 324% | 63,995 | 20,181 | 217% |
| EBITDA | 14,001 | 6,459 | 117% | 38,280 | 31,200 | 23% |
AMG Critical Minerals’ revenue for the fourth quarter of 2022 decreased by $10 million, or 13%, to $69 million, mainly due to lower volumes across the segment. On a full year basis, revenue increased by 18% compared to 2021.
Gross profit before non-recurring items of $19 million in the fourth quarter was 64% higher compared to the fourth quarter of 2021. The segment’s full year 2022 gross profit before non-recurring items was 19% higher than in 2021, largely driven by the improved price environment and favorable energy contracts for silicon production in the fourth quarter.
SG&A expenses in the fourth quarter of 2022 decreased by 20%, to $7 million, compared to the same period in 2021. This was largely driven by lower share-based compensation expense in the current quarter associated with a reversal recorded in the prior year. Full year 2022 SG&A expenses were slightly lower than 2021 by $0.6 million.
The fourth quarter 2022 EBITDA increased 117% compared to the same period in 2021, to $14 million, due to improved gross profit as noted above and favorable energy contracts at AMG Silicon in the quarter. Improved prices during 2022 led to a 23% increase in full year EBITDA for the segment compared to 2021.
Effective January 1, 2023, AMG placed its silicon metal plant in Pocking, Germany, on care and maintenance. The plant will restart and operate one furnace in March of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis and will be adjusted as appropriate in line with favorable and predictable market conditions. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. The financial impact of the care and maintenance program does not significantly impact AMG’s overall projected 2023 financial results.
AMG Critical Materials Technologies
| Q4 ‘22 | Q4 ‘21 | Change | FY ‘22 | FY ‘21 | Change | |
| Revenue | $144,697 | $135,533 | 7% | $610,468 | $514,668 | 19% |
| Gross profit | 19,381 | 22,658 | (14%) | 94,903 | 84,413 | 12% |
| Gross profit before non-recurring items |
20,745 | 22,388 | (7%) | 96,449 | 84,309 | 14% |
| Operating profit | 1,579 | 3,410 | (54%) | 20,474 | 14,484 | 41% |
| EBITDA | 9,713 | 11,673 | (17%) | 44,790 | 38,854 | 15% |
AMG Critical Materials Technologies’ fourth quarter 2022 revenue increased by $9 million, or 7%, compared to the same period in 2021. This improvement was driven by higher sales volumes of titanium aluminides and higher prices for chrome metal. Full year 2022 revenue was 19% higher than the prior year and gross profit before non-recurring items for 2022 of $96 million was 14% higher than the $84 million in 2021, due largely to the improved price environment versus the prior year associated with the continued recovery of the aerospace market post pandemic.
During the first half of the year, market disruptions associated with the Russian invasion of Ukraine impacted the chrome metal supply chain, creating a dramatic increase in the price of raw materials and limited availability. To protect against operational interruptions, the Company secured additional raw material volumes at market conditions at fixed prices. In the fourth quarter, the disruptions to the supply chain were alleviated and the prices fell dramatically. This resulted in the company’s chrome margins being negatively impacted in the fourth quarter and an inventory write-down of $1.6 million.
SG&A expenses decreased by 7% in the fourth quarter of 2022 compared to the same period in 2021, due to lower share-based expense in the current quarter associated with a reversal in the prior year.
AMG Critical Materials Technologies’ EBITDA was $10 million during the quarter compared to $12 million in the same period of 2021. The decrease is due to the chrome market dislocation noted above, offset by stronger profitability from our Engineering business. Full year 2022 EBITDA for the segment of $45 million was 15% higher than 2021. This was primarily due to the continued recovery in the aerospace sector in 2022.
AMG Engineering signed $67 million in new orders during the fourth quarter of 2022, driven by strong orders of turbine blade and induction furnaces, representing a 1.28x book to bill ratio. In January 2023, the Company’s strong order intake continued with $44 million in new orders, mainly due to turbine blade coater sales. Order backlog was $220 million as of December 31, 2022, the highest since March 31, 2020.
Financial Review
Tax
AMG recorded an income tax expense of $84 million in 2022, compared to $9 million in 2021. This variance was mainly driven by enhanced operating results in AMG Lithium at its Brazil operation coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $7 million benefit in 2022, compared to a $4 million tax benefit in 2021. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.
AMG paid taxes of $42 million in 2022, compared to tax payments of $10 million in 2021. The higher cash payments in 2022 were largely a result of improved operating results.
Exceptional Items
AMG’s fourth quarter and full year 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 2022 and 2021 are below:
Exceptional items included in gross profit
| Q4 ‘22 | Q4 ‘21 | Change | FY ‘22 | FY ‘21 | Change | |
| Gross profit | $119,981 | $61,797 | 94% | $409,486 | $208,243 | 97% |
| Inventory cost adjustment | 1,589 | — | N/A | 1,589 | 1,164 | 37% |
| Restructuring expense (reversal) | 389 | (140) | N/A | 582 | 522 | 11% |
| Asset impairment (reversal) expense | (990) | 153 | N/A | 10,597 | (711) | N/A |
| Strategic project expense | 1,201 | 1,501 | (20%) | 5,540 | 4,045 | 37% |
| Others | — | (506) | N/A | — | — | N/A |
| Gross profit excluding exceptional items | 122,170 | 62,805 | 95% | 427,794 | 213,263 | 101% |
Energy Costs
Total energy costs were $16 million higher in 2022 versus 2021 due to the increases in gas and electricity costs during the year. The majority of this increase was at our silicon business in Germany, but that business benefited from fully hedged power costs. Other business units benefited from long-term electricity contracts that have no price escalation clauses, and the business units that did experience energy cost increases were able to pass through most of these increased costs to their customers.
SG&A
AMG’s fourth quarter 2022 SG&A expenses were $37 million compared to $40 million in the fourth quarter of 2021, with the decrease due to lower share-based compensation expense associated with a reversal in the prior year.
Full year 2022 SG&A expenses were $148 million, 6% higher than in 2021, with the variance due to increased professional fees associated with strategic projects during the current period, offset by lower share-based compensation expense.
Liquidity
| December 31, 2022 | December 31, 2021 | Change | |
| Senior secured debt | $348,622 | $371,897 | (6%) |
| Cash & cash equivalents | 346,043 | 337,877 | 2% |
| Senior secured net debt | 2,579 | 34,020 | (92%) |
| Other debt | 14,959 | 24,398 | (39%) |
| Net debt excluding municipal bond | 17,538 | 58,418 | (70%) |
| Municipal bond debt | 319,244 | 319,476 | —% |
| Restricted cash | 6,920 | 93,434 | (93%) |
| Net debt | 329,862 | 284,460 | 16% |
AMG ended the year in a $330 million net debt position. This increase was mainly due to the significant investment in growth initiatives during the year, particularly at our Zanesville facility, which utilized the restricted cash associated with the municipal bond. This use of restricted cash was offset by $34 million of debt repayment and higher unrestricted cash.
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2022, the Company had $346 million in unrestricted cash and cash equivalents and $186 million available on its revolving credit facility. As such, AMG had $532 million of total liquidity as of December 31, 2022.
Net Finance Costs
AMG’s fourth quarter 2022 net finance income was $4 million compared to a cost of $13 million in the fourth quarter of 2021. This variance was mainly driven by foreign exchange gains of $10 million during the quarter primarily due to non-cash intergroup balances.
AMG capitalized $1 million of interest costs in the fourth quarter of 2022 versus $4 million in the same period in 2021, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio. This decrease is due to a portion of the municipal bond interest costs which are no longer being capitalized due to the ramp-up of production at our Zanesville facility.
Final Dividend Proposal
AMG intends to declare a dividend of €0.70 per ordinary share over the financial year 2022. The interim dividend of €0.30, paid on August 10, 2022, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.40.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 4, 2023.
Profit for the period to adjusted EBITDA reconciliation
| Q4 ‘22 | Q4 ‘21 | FY ‘22 | FY ‘21 | |
| Profit for the period | $62,669 | $4,139 | $190,771 | $13,779 |
| Income tax expense | 23,827 | 5,293 | 84,097 | 8,707 |
| Net finance (income) cost | (4,177) | 12,644 | 30,941 | 33,602 |
| Equity-settled share-based payment transactions | 1,414 | 6,883 | 5,552 | 10,206 |
| Restructuring expense (reversal) | 389 | (140) | 582 | 522 |
| Net contract settlements (1) | 971 | — | (45,436) | — |
| Inventory cost adjustment | 1,589 | — | 1,589 | 1,164 |
| Asset impairment (reversal) expense (1) | (990) | 153 | 10,597 | (711) |
| Environmental provision | 143 | 230 | 133 | 11,941 |
| Strategic project expense (2) | 5,885 | 3,769 | 17,070 | 12,157 |
| Share of loss of associates | — | 219 | 1,250 | 1,053 |
| Others | (1) | (512) | 105 | 571 |
| EBIT | 91,719 | 32,678 | 297,251 | 92,991 |
| Depreciation and amortization | 12,342 | 11,207 | 45,299 | 43,685 |
| EBITDA | 104,061 | 43,885 | 342,550 | 136,676 |
Notes:
(1) Associated with the silicon metal shutdown, AMG recorded income from the sale of an existing supply contract which positively impacted operating profit for the year. This income was offset by a settlement with a major customer and an impairment of existing assets.
(2) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.
| AMG Advanced Metallurgical Group N.V. | ||
| Consolidated Income Statement | ||
| For the quarter ended December 31 | ||
| In thousands of US dollars | 2022 | 2021 |
| Unaudited | Unaudited | |
| Continuing operations | ||
| Revenue | 390,004 | 330,360 |
| Cost of sales | (270,023) | (268,563) |
| Gross profit | 119,981 | 61,797 |
| Selling, general and administrative expenses | (36,579) | (39,501) |
| Environmental expense | (143) | (230) |
| Other expenses | (940) | — |
| Other income | — | 229 |
| Net other operating expense | (1,083) | (1) |
| Operating profit | 82,319 | 22,295 |
| Finance income | 5,459 | 1,107 |
| Finance cost | (1,282) | (13,751) |
| Net finance income (cost) | 4,177 | (12,644) |
| Share of loss of associates and joint ventures | — | (219) |
| Profit before income tax | 86,496 | 9,432 |
| Income tax expense | (23,827) | (5,293) |
| Profit for the period | 62,669 | 4,139 |
| Profit attributable to: | ||
| Shareholders of the Company | 60,697 | 5,705 |
| Non-controlling interests | 1,972 | (1,566) |
| Profit for the period | 62,669 | 4,139 |
| Earnings per share | ||
| Basic earnings per share | 1.90 | 0.18 |
| Diluted earnings per share | 1.85 | 0.18 |
| AMG Advanced Metallurgical Group N.V. | ||
| Consolidated Income Statement | ||
| For the year ended December 31 | ||
| In thousands of US dollars | 2022 | 2021 |
| Unaudited | ||
| Continuing operations | ||
| Revenue | 1,642,774 | 1,204,666 |
| Cost of sales | (1,233,288) | (996,423) |
| Gross profit | 409,486 | 208,243 |
| Selling, general and administrative expenses | (147,963) | (139,576) |
| Environmental expense | (133) | (11,941) |
| Other expenses | (14,411) | — |
| Other income | 60,080 | 415 |
| Net other operating income (expense) | 45,536 | (11,526) |
| Operating profit | 307,059 | 57,141 |
| Finance income | 9,061 | 1,938 |
| Finance cost | (40,002) | (35,540) |
| Net finance cost | (30,941) | (33,602) |
| Share of loss of associates and joint ventures | (1,250) | (1,053) |
| Profit before income tax | 274,868 | 22,486 |
| Income tax expense | (84,097) | (8,707) |
| Profit for the period | 190,771 | 13,779 |
| Profit attributable to: | ||
| Shareholders of the Company | 187,589 | 13,771 |
| Non-controlling interests | 3,182 | 8 |
| Profit for the period | 190,771 | 13,779 |
| Earnings per share | ||
| Basic earnings per share | 5.87 | 0.44 |
| Diluted earnings per share | 5.73 | 0.44 |
| AMG Advanced Metallurgical Group N.V. | ||
| Consolidated Statement of Financial Position | ||
| In thousands of US dollars | December 31, 2022 Unaudited | December 31, 2021 |
| Assets | ||
| Property, plant and equipment | 797,611 | 693,624 |
| Goodwill and other intangible assets | 41,404 | 44,684 |
| Derivative financial instruments | 33,042 | 95 |
| Other investments | 29,324 | 29,830 |
| Deferred tax assets | 37,181 | 52,937 |
| Restricted cash | 5,875 | 85,023 |
| Other assets | 8,612 | 8,471 |
| Total non-current assets | 953,049 | 914,664 |
| Inventories | 277,311 | 218,320 |
| Derivative financial instruments | 3,516 | 4,056 |
| Trade and other receivables | 162,548 | 145,435 |
| Other assets | 121,834 | 65,066 |
| Current tax assets | 7,289 | 5,888 |
| Restricted cash | 1,045 | 8,411 |
| Cash and cash equivalents | 346,043 | 337,877 |
| Total current assets | 919,586 | 785,053 |
| Total assets | 1,872,635 | 1,699,717 |
| AMG Advanced Metallurgical Group N.V. | ||
| Consolidated Statement of Financial Position | ||
| (continued) | ||
| In thousands of US dollars | December 31, 2022 Unaudited | December 31, 2021 |
| Equity | ||
| Issued capital | 853 | 853 |
| Share premium | 553,715 | 553,715 |
| Treasury shares | (14,685) | (16,596) |
| Other reserves | (44,869) | (96,421) |
| Retained earnings (deficit) | (4,461) | (173,117) |
| Equity attributable to shareholders of the Company | 490,553 | 268,434 |
| Non-controlling interests | 27,296 | 25,718 |
| Total equity | 517,849 | 294,152 |
| Liabilities | ||
| Loans and borrowings | 661,270 | 675,384 |
| Lease liabilities | 44,224 | 45,692 |
| Employee benefits | 117,160 | 162,628 |
| Provisions | 12,361 | 14,298 |
| Deferred revenue | 20,000 | 22,341 |
| Other liabilities | 15,009 | 11,098 |
| Derivative financial instruments | 284 | 2,064 |
| Deferred tax liabilities | 27,269 | 5,617 |
| Total non-current liabilities | 897,577 | 939,122 |
| Loans and borrowings | 15,164 | 27,341 |
| Lease liabilities | 4,710 | 4,857 |
| Short-term bank debt | 6,391 | 13,046 |
| Deferred revenue | 28,277 | 18,478 |
| Other liabilities | 69,917 | 80,672 |
| Trade and other payables | 240,101 | 252,765 |
| Derivative financial instruments | 7,746 | 6,010 |
| Advance payments from customers | 51,054 | 35,091 |
| Current tax liability | 23,548 | 10,586 |
| Provisions | 10,301 | 17,597 |
| Total current liabilities | 457,209 | 466,443 |
| Total liabilities | 1,354,786 | 1,405,565 |
| Total equity and liabilities | 1,872,635 | 1,699,717 |
| AMG Advanced Metallurgical Group N.V. | ||
| Consolidated Statement of Cash Flows | ||
| For the year ended December 31 | ||
| In thousands of US dollars | 2022 | 2021 |
| Unaudited | ||
| Cash from operating activities | ||
| Profit for the period | 190,771 | 13,779 |
| Adjustments to reconcile net profit to net cash flows: | ||
| Non-cash: | ||
| Income tax expense | 84,097 | 8,707 |
| Depreciation and amortization | 45,299 | 43,685 |
| Asset impairment expense (reversal) | 10,597 | (711) |
| Net finance cost | 30,941 | 33,602 |
| Share of loss of associates and joint ventures | 1,250 | 1,053 |
| Gain on sale or disposal of property, plant and equipment | (592) | (65) |
| Equity-settled share-based payment transactions | 5,552 | 10,028 |
| Movement in provisions, pensions, and government grants | (11,982) | (10,184) |
| Working capital and deferred revenue adjustments1 | (123,281) | 22,747 |
| Cash generated from operating activities | 232,652 | 122,641 |
| Finance costs paid, net | (23,289) | (21,950) |
| Income tax paid | (41,796) | (9,903) |
| Net cash from operating activities | 167,567 | 90,788 |
| Cash used in investing activities | ||
| Proceeds from sale of property, plant and equipment | 2,538 | 1,029 |
| Acquisition of property, plant and equipment and intangibles | (174,516) | (162,240) |
| Acquisitions of subsidiaries | — | (458) |
| Investments in associates and joint ventures | (1,250) | (1,000) |
| Use of restricted cash | 86,514 | 115,485 |
| Interest received on restricted cash | 250 | 39 |
| Capitalized borrowing cost paid | (16,652) | (15,838) |
| Other | 12 | 30 |
| Net cash used in investing activities | (103,104) | (62,953) |
(1) Includes outstanding receivables related to silicon energy credits.
| AMG Advanced Metallurgical Group N.V. | ||
| Consolidated Statement of Cash Flows | ||
| (continued) | ||
| For the year ended December 31 | ||
| In thousands of US dollars | 2022 | 2021 |
| Unaudited | ||
| Cash (used in) from financing activities | ||
| Proceeds from issuance of debt | 82 | 352,152 |
| Payment of transaction costs related to debt | — | (7,630) |
| Repayment of borrowings | (33,863) | (342,781) |
| Proceeds from issuance of common shares | — | 123,627 |
| Net repurchase of common shares | (1,523) | (2,058) |
| Dividends paid | (19,885) | (7,598) |
| Payment of lease liabilities | (5,101) | (5,313) |
| Advanced contributions | 11,000 | — |
| Contributions by non-controlling interests | — | 667 |
| Net cash (used in) from financing activities | (49,290) | 111,066 |
| Net increase in cash and cash equivalents | 15,173 | 138,901 |
| Cash and cash equivalents at January 1 | 337,877 | 207,366 |
| Effect of exchange rate fluctuations on cash held | (7,007) | (8,390) |
| Cash and cash equivalents at December 31 | 346,043 | 337,877 |
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 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. These forward-looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based.
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