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21.02.2024 18:05:03 - dpa-AFX: GNW-Adhoc: AMG Reports Record-Setting Earnings for the Full Year 2023
Amsterdam, 21 February 2024 (Regulated Information) --- AMG Critical Materials
N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported record-setting adjusted EBITDA
$350 million in 2023, due largely to strong profitability in our lithium and
vanadium businesses. Fourth quarter 2023 revenue was $367 million, a 6% decrease
versus the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA of $71 million decreased 32% compared to the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG's history, and 33% higher than the $168 million in 2022.
In 000's
US dollars Q4 '23 Q4 '22 Change FY '23 FY '22 Change
----------------------------------------------------------------------------------------------
Revenue $367,235 $390,004 (6%) $1,625,861 $1,642,774 (1%)
Adjusted
EBITDA
((1)) 71,142 104,061 (32%) 350,491 342,550 2%
Cash from
operating
activities 44,704 56,969 (22%) 223,000 167,567 33%
Return on
Capital
Employed 26.3% 30.8% 26.3% 30.8% (Note:)
((1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.)
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "AMG has achieved the highest adjusted EBITDA in its 16 year history with $350 million for the full year 2023. Market conditions for all products within our portfolio substantially weakened as the year progressed. The 32% decrease in adjusted EBITDA compared to the fourth quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium decreased over 76% and 26%, respectively, versus the average pricing in the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG's history, and 33% higher than the $168 million in 2022. We were $38 million free cash flow positive for the year despite investing $169 million in capital projects as well as acquiring a 25% stake in Zinnwald in 2023. This underscores our low-cost position in both lithium and vanadium. We ended the year in a $323 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023. AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $350 million in new orders during 2023, the highest full year order intake in AMG's history, and 24% higher than in 2022. This record order intake was driven by strong orders of remelting and heat treatment furnaces, representing a 1.27x book to bill ratio. AMG's order backlog was $295 million as of December 31, 2023.
Through its critical materials science-based solutions, AMG, as its mission, seeks to contribute to CO(2) reduction by way of "enabling" its customers to increase the efficiency of renewable energy production, and to "enable" energy saving strategies. We measure the enabled contribution to CO(2) reduction at our
customer level via stringent third-party developed life cycle assessments. We based this mission on the belief that in this obviously high growth environment,
we could achieve both above average financial returns and use our proprietary technologies to be at the forefront of the industrial contribution to atmospheric CO(2 )reduction. Our Enabling CO(2) Reduction Portfolio (ECO(2)RP) in 2023 enabled 110.3 million tons of CO(2) reduction, 11% more than the 99.4
million tons of enabled CO(2) reduction in 2022."
Lithium
expansion from 90,000 tons to 130,000 tons. We expect to produce 93,000 tons
Vanadium
* AMG's innovative lithium vanadium battery ("LIVA") projects are integral for
being engineered, and 15 are in bidding and development stages, with a total
activities from Transformation Technologies Inc. ("TTI"), a US company based
high-purity vanadium oxides for applications such as chemicals and aerospace
Financial Highlights
* AMG's full year 2023 adjusted EBITDA was a record-setting $350 million due
largely to high profitability in our lithium and vanadium businesses, offset
* The total 2023 dividend proposed is EUR0.60 per ordinary share, including the interim dividend of EUR0.40, paid on August 9, 2023.
(Note:)
((1) Free cash flow is defined as cash flows from operating activities less cash
flows used in investing activities.)
Key Figures
In 000's US
dollars
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Operating
profit 19,503 82,319 (76%) 221,752 307,059 (28%)
Operating
margin 5.3% 21.1% 13.6% 18.7%
Net income
attributable
to
shareholders 2,173 60,697 (96%) 101,320 187,589 (46%)
-------------------------------------------------------------------------------------------------
EPS - Fully
Adjusted
EBITDA ((2)) 71,142 104,061 (32%) 350,491 342,550 2%
Adjusted
EBITDA
margin 19.4% 26.7% 21.6% 20.9%
Cash from
operating
activities 44,704 56,969 (22%) 223,000 167,567 33%
-------------------------------------------------------------------------------------------------
(Notes:)
((1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses.)
((2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.)
Operational Review
AMG Clean Energy Materials
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
-------------------------------------------------------------------------------
Operating
AMG Clean Energy Materials' revenue decreased 10% compared to the fourth quarter
of 2022, to $158 million, driven mainly by the 76% and 26% decrease in prices for lithium carbonate and ferrovanadium, respectively, since the fourth quarter of 2022. This price decrease was partially offset by increased volumes in vanadium and lithium. Higher average annual prices for spodumene as well as higher sales volumes of vanadium, lithium concentrate, and tantalum propelled revenue for the segment 9% higher on a full year basis. In 2023, ferrovanadium and tantalum concentrate sales increased 45% and 56%, respectively, versus the prior year.
Gross profit for the quarter decreased 57% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver was the lithium price decline, which fell 76% since the fourth quarter of 2022. Full year gross profit increased 2% compared to 2022, due to the higher prices and volumes noted above.
SG&A expenses of $67 million in 2023 were 47% higher than in 2022, mainly driven
by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs, professional fees and research and development costs.
The fourth quarter 2023 adjusted EBITDA decreased 30%, to $56 million, from $80 million in the fourth quarter of 2022, due to the decline in metal prices as noted above. Full year 2023 adjusted EBITDA, however, was 15% higher than in 2022, driven by higher prices and higher volumes as well as the incremental dividend noted below.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualifies for Section 45X which provides a production credit for domestic manufacturing of critical materials from 2023 onwards. Based on preliminary regulations as issued
by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. This subsidy is included in gross profit. The ruling is still in
the comment period and, as such, is subject to a final determination.
AMG received a $10 million dividend from an equity investment which is included in adjusted EBITDA.
During the fourth quarter of 2023, a total of 29,706 dry metric tons ("dmt") of lithium concentrates were sold, 39% higher than the 21,329 dmt in the fourth quarter of 2022 due to shipping variances in 2023. The average realized sales price was $1,943/dmt CIF China for the quarter. The average cost per ton for the
quarter was $498/dmt CIF China.
During 2023, a total of 95,097 dry metric tons ("dmt") of lithium concentrates were sold, an increase of 8,384 dmt versus 2022. The average realized sales price for 2023 was $3,160/dmt CIF China, an increase of $355/dmt over 2022. The average cost per ton for 2023 was $475/dmt CIF China.
It is important to note that fourth quarter pricing benefited from the timing lag experienced related to the contractual pricing agreements with our lithium concentrate customers. The prices of lithium concentrate and lithium carbonate have declined 56% and 41%, respectively, since the end of the third quarter 2023.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. AMG is one of the lowest cost lithium concentrate mines in
the world and we plan to maintain that position.
AMG Critical Minerals
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
-------------------------------------------------------------------------------
Revenue $54,903 $69,242 (21%) $227,696 $364,502 (38%)
Gross (loss)
profit (6) 19,017 N/A 21,953 46,721 (53%)
Operating (loss)
AMG Critical Minerals' revenue for the fourth quarter of 2023 decreased by 21%,
to $55 million, mainly due to lower volumes largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit in the fourth quarter of 2023 was $19 million lower compared to the
same period in 2022, largely due to lower volumes in silicon and antimony in the
current quarter.
SG&A expenses in 2023 of $29 million were 4% higher than in 2022 related to an increase in professional fees during the fourth quarter.
The fourth quarter 2023 adjusted EBITDA decreased 88% compared to the same period in 2022, to $2 million, largely driven by the silicon metal plant as well
as the slowdown in the end-use markets for the segment in the current quarter. As a result, full year 2023 adjusted EBITDA decreased to $7 million from $38 million in the prior year.
AMG Silicon operated one of four furnaces in the fourth quarter of 2023. We plan
to run two of four furnaces for the remainder of 2024. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon's operations, the financial
impact of the business will be excluded from adjusted EBITDA during this period of abnormal operations. However, AMG Silicon generated $26 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
-------------------------------------------------------------------------------
Operating (loss)
AMG Critical Materials Technologies' fourth quarter 2023 revenue increased by $10 million, or 7%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of chrome metal and higher sales prices of titanium alloys, partially offset by lower chrome metal pricing. Revenue for the segment in 2023 increased 10% compared to prior year.
SG&A expenses increased by 10% in 2023 compared to 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the increased order backlog and business development, respectively.
AMG Critical Materials Technologies' adjusted EBITDA was $14 million during the fourth quarter, 40% higher than in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the fourth quarter of 2023.
AMG Engineering signed $27 million in new orders during the fourth quarter of 2023. On a full year basis, AMG signed a record high of $350 million in new orders during 2023, 24% higher than in 2022, representing a 1.27x book to bill ratio. The 2023 order intake was driven by strong orders of remelting and heat treatment furnaces. Order backlog was $295 million as of December 31, 2023.
Financial Review
Tax
AMG recorded an income tax expense of $95 million in 2023, compared to $84 million in 2022. This variance was due to negative movements in the Brazilian real in 2023 as compared to 2022 as well as non-cash deferred tax expenses related to the derecognition of certain tax assets. These tax assets were associated with interest expense carryforwards in our US business as well as loss carryforwards in our German business. These deferred tax expenses were partially offset by the lower profitability in the current quarter relative to the same period in the prior year.
AMG paid taxes of $103 million in 2023, compared to tax payments of $42 million in 2022. The higher cash payments in 2023 were largely a result of the timing lag related to Brazil's strong performance in late 2022 through the second quarter of 2023.
Exceptional Items
AMG's fourth quarter and full year 2023 gross profit includes exceptional items,
which are not included in the calculation of adjusted EBITDA.
A summary of exceptional items included in gross profit in 2023 and 2022 are below:
Exceptional items included in gross profit
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
---------------------------------------------------------------------------------------------------------
Gross profit $55,252 $119,981 (54%) $389,431 $409,486 (5%)
Inventory
cost
adjustment 15,260 1,589 860% 26,731 1,589 1,582%
Restructuring
expense 6,115 389 1,472% 9,223 582 1,485%
Asset
impairment
expense
(reversal) 9,585 (990) N/A 8,818 10,597 (17%)
Silicon's
partial
closure (1,854) - N/A (4,502) - N/A
Strategic
project
expense 107 1,201 (91%) 511 5,540 (91%)
---------------------------------------------------------------------------------------------------------
Gross profit
excluding
exceptional
items 84,465 122,170 (31%) 430,212 427,794 1%
AMG had $15 million non-cash expense during the fourth quarter of 2023 mainly driven by Lithium GmbH's inventory cost adjustment of purchased lithium hydroxide which has been excluded in the calculation of adjusted EBITDA.
In mid 2023, AMG initiated a restructuring program to improve efficiencies and reduce headcount. The largest restructuring expenses are in AMG Titanium with $4
million, and in AMG Graphite with a restructuring expense of $1 million in the fourth quarter of 2023.
As a result of the restructuring program, certain non-core assets were also impacted. Asset impairments were recorded due to the retirement of these assets in the fourth quarter of 2023 at AMG Titanium and AMG Graphite of $3 million and
$7 million, respectively.
SG&A
AMG's fourth quarter 2023 SG&A expenses were $46 million compared to $37 million
in the fourth quarter of 2022, with the increase largely due to higher personnel
costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Full year 2023 SG&A expenses were $178 million, 20% higher than in 2022, due to increased professional fees associated with strategic projects during 2023 as well as higher personnel costs attributable to increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
December 31, 2023 December 31, 2022 Change
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Senior secured net (cash)
debt (7,906) 2,579 N/A
-------------------------------------------------------------------------------
Other debt 13,107 14,959 (12%)
-------------------------------------------------------------------------------
Net debt excluding municipal
bond 5,201 17,538 (70%)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net debt 322,752 329,862 (2%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023.
Net Finance Costs
AMG's fourth quarter 2023 net finance income was $2 million compared to $4 million of income in the fourth quarter of 2022. This decrease was mainly driven
by lower capitalization of interest expense now that the Zanesville plant is fully operational.
Final Dividend Proposal
AMG intends to declare a dividend of EUR0.60 per ordinary share over the financial
year 2023. The interim dividend of EUR0.40, paid on August 9, 2023, will be
deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to EUR0.20.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 8, 2024.
Outlook
Our ongoing cost reduction and efficiency programs will reduce our headcount by approximately 200 which will essentially be offset by the ramp-up of our expansions in Germany and Brazil, as well as the growth in our LIVA and Engineering businesses.
Capital expenditures for 2024 are expected to be approximately $125 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.
AMG has no expected financing needs in 2024. AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $540 million can fully fund all of
the approved capital expansion projects and all other financial obligations.
AMG's two main lithium expansion projects are heading towards completion: our lithium concentrate expansion project from 90,000 tons to 130,000 tons in Brazil
and module 1 of our lithium hydroxide refinery in Germany. We are reviewing our resource development projects and all other expansion activities in light of the
present market conditions.
Regarding 2024 outlook, from the lithium concentrate and lithium carbonate market price highs in November 2022 of $6,110 per ton and $84,062 per ton, respectively, prices have each declined by 84%.
On November 8, 2023, we indicated an adjusted EBITDA for 2024 of approximately $200 million excluding any profitability from our Bitterfeld lithium hydroxide refinery and utilizing contemporary pricing. Since then, market prices for spodumene and lithium carbonate have declined 50% and 39%, respectively. Utilizing today's price levels, lithium profitability will be $60 million lower and vanadium profitability will be $10 million lower, therefore AMG's 2024
adjusted EBITDA will be approximately $130 million.
Our analysis of the long-term supply and demand trends in lithium gives us confidence that the present low prices are unsustainable.
Segmental Realignment
The Company has changed its organizational structure effective January 1, 2024,
and will therefore report financials for the new segments starting in the first quarter of 2024. This change results in three reporting segments: AMG Lithium, AMG Vanadium, and AMG Technologies. Each of these segments have very specific trends and business models, and require very different management skill sets.
AMG's 2023 pro forma segmental information for AMG Lithium, AMG Vanadium, and AMG Technologies is shown below:
AMG Lithium
Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23
------------------------------------------------------------------------
AMG Vanadium
Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23
---------------------------------------------------------------------
AMG Technologies
Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23
---------------------------------------------------------------------
Profit for the period to adjusted EBITDA reconciliation
Q4 '23 Q4 '22 FY '23 FY '22
-------------------------------------------------------------------------------
Equity-settled share-based payment
Asset impairment expense
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Adjusted EBITDA 71,142 104,061 350,491 342,550
(Notes:)
((1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA
for these exceptional charges.)
AMG Critical Materials N.V.
Consolidated Income Statement
For the quarter ended December 31
Continuing operations
Selling, general and administrative
Share of loss of associates and joint
Profit attributable to:
Basic earnings per share
AMG Critical Materials N.V.
Consolidated Income Statement
For the year ended December 31
Continuing operations
Selling, general and administrative
Share of loss of associates and joint
Profit attributable to:
Earnings per share
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
In thousands of US dollars December 31, 2023 Unaudited December 31, 2022
Assets
Property, plant and equipment 921,178 797,611
Goodwill and other intangible
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars December 31, 2023 Unaudited December 31, 2022
Equity
Equity attributable to
Liabilities
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
Cash from operating activities
Profit for the period 102,288 190,771
Adjustments to reconcile net profit to net
cash flows:
Non-cash:
Share of loss of associates and joint
ventures 3,723 1,250
Loss (gain) on sale or disposal of
property, plant and equipment 145 (592)
Equity-settled share-based payment
transactions 5,799 5,552
Movement in provisions, pensions, and
government grants (2,137) (11,982)
Working capital and deferred revenue
Cash used in investing activities
Proceeds from sale of property, plant and
equipment 39 2,538
Acquisition of property, plant and
equipment and intangibles (153,377) (174,516)
Investments in associates and joint
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
Cash used in financing activities
Net (decrease) increase in cash and cash
Effect of exchange rate fluctuations on cash
This press release contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG's mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG's products include highly engineered systems to reduce CO(2) in aerospace engines, as well as critical materials addressing CO(2) reduction in a variety of other end use markets.
AMG's Lithium segment spans the lithium value chain, reducing the CO(2) footprint of both suppliers and customers. AMG's Vanadium segment is the world's
market leader in recycling vanadium from oil refining residues, spanning the Company's vanadium, titanium, and chrome businesses. AMG's Technologies segment is the established world market leader in advanced metallurgy and provides equipment engineering to the aerospace engine sector globally. It serves as the engineering home for the Company's fast-growing LIVA batteries, and spans AMG's mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact:
AMG Critical Materials N.V. +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com (mailto: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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versus the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA of $71 million decreased 32% compared to the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG's history, and 33% higher than the $168 million in 2022.
In 000's
US dollars Q4 '23 Q4 '22 Change FY '23 FY '22 Change
----------------------------------------------------------------------------------------------
Revenue $367,235 $390,004 (6%) $1,625,861 $1,642,774 (1%)
Adjusted
EBITDA
((1)) 71,142 104,061 (32%) 350,491 342,550 2%
Cash from
operating
activities 44,704 56,969 (22%) 223,000 167,567 33%
Return on
Capital
Employed 26.3% 30.8% 26.3% 30.8% (Note:)
((1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.)
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "AMG has achieved the highest adjusted EBITDA in its 16 year history with $350 million for the full year 2023. Market conditions for all products within our portfolio substantially weakened as the year progressed. The 32% decrease in adjusted EBITDA compared to the fourth quarter of 2022 was driven in large part by the global decline in metal prices within our portfolio, predominantly the lithium price decline. The average quarterly prices of lithium carbonate and ferrovanadium decreased over 76% and 26%, respectively, versus the average pricing in the fourth quarter of 2022.
Cash from operating activities was $223 million in 2023, the highest in AMG's history, and 33% higher than the $168 million in 2022. We were $38 million free cash flow positive for the year despite investing $169 million in capital projects as well as acquiring a 25% stake in Zinnwald in 2023. This underscores our low-cost position in both lithium and vanadium. We ended the year in a $323 million net debt position, and continued to maintain a strong balance sheet and adequate sources of liquidity. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023. AMG continues to benefit from its low-cost fixed-rate debt facilities, and has an average interest rate charge across its two main debt instruments of 5%.
AMG Engineering signed $350 million in new orders during 2023, the highest full year order intake in AMG's history, and 24% higher than in 2022. This record order intake was driven by strong orders of remelting and heat treatment furnaces, representing a 1.27x book to bill ratio. AMG's order backlog was $295 million as of December 31, 2023.
Through its critical materials science-based solutions, AMG, as its mission, seeks to contribute to CO(2) reduction by way of "enabling" its customers to increase the efficiency of renewable energy production, and to "enable" energy saving strategies. We measure the enabled contribution to CO(2) reduction at our
customer level via stringent third-party developed life cycle assessments. We based this mission on the belief that in this obviously high growth environment,
we could achieve both above average financial returns and use our proprietary technologies to be at the forefront of the industrial contribution to atmospheric CO(2 )reduction. Our Enabling CO(2) Reduction Portfolio (ECO(2)RP) in 2023 enabled 110.3 million tons of CO(2) reduction, 11% more than the 99.4
million tons of enabled CO(2) reduction in 2022."
Lithium
* In Brazil, our lithium concentrate plant will temporarily stop production
for the change-over period in March 2024 in order to facilitate the
expansion from 90,000 tons to 130,000 tons. We expect to produce 93,000 tons
for the full year of 2024 and will operate at the full expanded capacity
rate, or 130,000 tons per year, in the fourth quarter of 2024.
* AMG's lithium hydroxide refinery's first 20,000-ton module in Bitterfeld,
Germany, is in advanced phases of commissioning, and the product
qualification process is planned to start in the third quarter of 2024.
Vanadium
* The Zanesville, Ohio facility exceeded our target production volumes in the
fourth quarter of 2023. The production from both the roasting operation and
the melt shop exceeded historical averages achieved by the Cambridge, Ohio
operation.
* Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualified for
Section 45X effective from 2023 onwards, which provides a production credit
for domestic manufacturing of critical materials. Based on preliminary
regulations as issued by the IRS, AMG expects to receive a subsidy of
approximately $6 million for full year 2023. The ruling is still in the
comment period and, as such, is subject to a final determination.
* AMG's innovative lithium vanadium battery ("LIVA") projects are integral for
industrial power management applications and accelerate the energy
transition. The batteries are currently under various stages of bidding and
development. One is operational, three are currently under contract and
being engineered, and 15 are in bidding and development stages, with a total
megawatt hour (MWh) capacity of 749 MWh.
* AMG LIVA has agreed to acquire the Vanadium Redox Flow Battery ("VRFB")
activities from J.M. VOITH SE & CO. KG ("VOITH"). VOITH has developed an
advanced technology for controlling and balancing large-scale high-voltage
VRFB energy storage systems. The technology complements LIVA's VRFB system
development. LIVA will continue to develop the technology and integrate it
into its large-scale energy storage systems.
* The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is
under construction. The target capacity is 6,000 m³ vanadium electrolyte,
the equivalent of approximately 100 MWh, which will serve the electricity
storage market, including a vertical integration into LIVA batteries. We
expect to have nameplate capacity available by the second half of 2024.
* AMG Vanadium has acquired the processing technologies and IP related
activities from Transformation Technologies Inc. ("TTI"), a US company based
in Oregon. This unique thermal treatment of spent catalyst and other oil
refinery wastes into valuable products is complementary to AMG's existing
spent catalyst processing technology and know-how. AMG will integrate the
TTI technology into its global strategic growth initiatives conducted
through Shell & AMG Recycling ("SARBV").
* SARBV's "Supercenter" project in the Middle East is a facility to produce
high-purity vanadium oxides for applications such as chemicals and aerospace
as well as vanadium electrolyte for the long duration energy storage market
in the Kingdom of Saudi Arabia. The facility will operate under a long-term
supply contract with Saudi Aramco for vanadium-containing gasification ash
from its power plants in the Kingdom. For illustration purposes, Phase 1 of
the Supercenter plans to produce 8 million pounds of vanadium oxide from
7,000 metric tons of gasification ash located at a site in Jubail, Kingdom
of Saudi Arabia. The FEL3 basic engineering has been submitted. The full
Supercenter project will also include the processing of spent catalysts, a
Fresh Catalyst R&D facility and a LIVA Hybrid Energy Storage System.
Financial Highlights
* AMG's full year 2023 adjusted EBITDA was a record-setting $350 million due
largely to high profitability in our lithium and vanadium businesses, offset
by lower profit in AMG Critical Minerals.
* Cash from operating activities was $223 million in 2023, compared to $168
million in 2022, largely driven by the lithium and vanadium expansion
projects as well as strong cash flows from our Silicon business driven by
energy sales.
* AMG's free cash flow((1)) was $38 million in 2023.
* AMG's liquidity as of December 31, 2023 was $540 million, with $345 million
of unrestricted cash and $195 million of revolving credit availability.
* Annualized return on capital employed was 26.3% for 2023, compared to 30.8%
in 2022.
* AMG Engineering signed $350 million in new orders during 2023, the highest
in AMG's history and 24% higher than in 2022.
* The total 2023 dividend proposed is EUR0.60 per ordinary share, including the interim dividend of EUR0.40, paid on August 9, 2023.
(Note:)
((1) Free cash flow is defined as cash flows from operating activities less cash
flows used in investing activities.)
Key Figures
In 000's US
dollars
Q4 '23 Q4 '22 Change FY '23 FY '22 Change Revenue $367,235 $390,004 (6%) $1,625,861 $1,642,774 (1%)
-------------------------------------------------------------------------------------------------
Gross profit 55,252 119,981 (54%) 389,431 409,486 (5%) Gross margin 15.0% 30.8% 24.0% 24.9%
-------------------------------------------------------------------------------------------------
Operating
profit 19,503 82,319 (76%) 221,752 307,059 (28%)
Operating
margin 5.3% 21.1% 13.6% 18.7%
Net income
attributable
to
shareholders 2,173 60,697 (96%) 101,320 187,589 (46%)
-------------------------------------------------------------------------------------------------
EPS - Fully
diluted 0.07 1.85 (96%) 3.12 5.73 (46%) EBIT ((1)) 56,706 91,719 (38%) 295,855 297,251 -%
Adjusted
EBITDA ((2)) 71,142 104,061 (32%) 350,491 342,550 2%
Adjusted
EBITDA
margin 19.4% 26.7% 21.6% 20.9%
Cash from
operating
activities 44,704 56,969 (22%) 223,000 167,567 33%
-------------------------------------------------------------------------------------------------
(Notes:)
((1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses.)
((2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.)
Operational Review
AMG Clean Energy Materials
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
-------------------------------------------------------------------------------
Revenue $157,594 $176,065 (10%) $725,505 $667,804 9% Gross profit 35,112 81,583 (57%) 274,387 267,862 2%
Operating
profit 28,576 69,779 (59%) 217,309 222,590 (2%) Adjusted EBITDA 55,924 80,347 (30%) 297,190 259,480 15%
AMG Clean Energy Materials' revenue decreased 10% compared to the fourth quarter
of 2022, to $158 million, driven mainly by the 76% and 26% decrease in prices for lithium carbonate and ferrovanadium, respectively, since the fourth quarter of 2022. This price decrease was partially offset by increased volumes in vanadium and lithium. Higher average annual prices for spodumene as well as higher sales volumes of vanadium, lithium concentrate, and tantalum propelled revenue for the segment 9% higher on a full year basis. In 2023, ferrovanadium and tantalum concentrate sales increased 45% and 56%, respectively, versus the prior year.
Gross profit for the quarter decreased 57% compared to the same period in the prior year, primarily due to the lower sales prices. The primary driver was the lithium price decline, which fell 76% since the fourth quarter of 2022. Full year gross profit increased 2% compared to 2022, due to the higher prices and volumes noted above.
SG&A expenses of $67 million in 2023 were 47% higher than in 2022, mainly driven
by the increase in headcount related to the lithium and vanadium expansion projects, as well as higher employee benefit costs, professional fees and research and development costs.
The fourth quarter 2023 adjusted EBITDA decreased 30%, to $56 million, from $80 million in the fourth quarter of 2022, due to the decline in metal prices as noted above. Full year 2023 adjusted EBITDA, however, was 15% higher than in 2022, driven by higher prices and higher volumes as well as the incremental dividend noted below.
Enacted by the Inflation Reduction Act of 2022, AMG Vanadium qualifies for Section 45X which provides a production credit for domestic manufacturing of critical materials from 2023 onwards. Based on preliminary regulations as issued
by the IRS, AMG expects to receive a subsidy of approximately $6 million for full year 2023. This subsidy is included in gross profit. The ruling is still in
the comment period and, as such, is subject to a final determination.
AMG received a $10 million dividend from an equity investment which is included in adjusted EBITDA.
During the fourth quarter of 2023, a total of 29,706 dry metric tons ("dmt") of lithium concentrates were sold, 39% higher than the 21,329 dmt in the fourth quarter of 2022 due to shipping variances in 2023. The average realized sales price was $1,943/dmt CIF China for the quarter. The average cost per ton for the
quarter was $498/dmt CIF China.
During 2023, a total of 95,097 dry metric tons ("dmt") of lithium concentrates were sold, an increase of 8,384 dmt versus 2022. The average realized sales price for 2023 was $3,160/dmt CIF China, an increase of $355/dmt over 2022. The average cost per ton for 2023 was $475/dmt CIF China.
It is important to note that fourth quarter pricing benefited from the timing lag experienced related to the contractual pricing agreements with our lithium concentrate customers. The prices of lithium concentrate and lithium carbonate have declined 56% and 41%, respectively, since the end of the third quarter 2023.
In 2024, we anticipate the cost per ton to rise due to unabsorbed costs during the ramp-up as well as lower relative tantalum sales volumes offsetting higher spodumene production. AMG is one of the lowest cost lithium concentrate mines in
the world and we plan to maintain that position.
AMG Critical Minerals
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
-------------------------------------------------------------------------------
Revenue $54,903 $69,242 (21%) $227,696 $364,502 (38%)
Gross (loss)
profit (6) 19,017 N/A 21,953 46,721 (53%)
Operating (loss)
profit (7,407) 10,961 N/A (6,872) 63,995 N/A Adjusted EBITDA 1,618 14,001 (88%) 6,947 38,280 (82%)
AMG Critical Minerals' revenue for the fourth quarter of 2023 decreased by 21%,
to $55 million, mainly due to lower volumes largely driven by the silicon metal plant operating one furnace during the quarter, as discussed in detail below. The slowdown in the European industrial economy also continued to negatively impact the segment.
Gross profit in the fourth quarter of 2023 was $19 million lower compared to the
same period in 2022, largely due to lower volumes in silicon and antimony in the
current quarter.
SG&A expenses in 2023 of $29 million were 4% higher than in 2022 related to an increase in professional fees during the fourth quarter.
The fourth quarter 2023 adjusted EBITDA decreased 88% compared to the same period in 2022, to $2 million, largely driven by the silicon metal plant as well
as the slowdown in the end-use markets for the segment in the current quarter. As a result, full year 2023 adjusted EBITDA decreased to $7 million from $38 million in the prior year.
AMG Silicon operated one of four furnaces in the fourth quarter of 2023. We plan
to run two of four furnaces for the remainder of 2024. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis. Due to the noted interruptions in AMG Silicon's operations, the financial
impact of the business will be excluded from adjusted EBITDA during this period of abnormal operations. However, AMG Silicon generated $26 million in cash flow from operating activities during the quarter driven by the receipt of energy sales made in the fourth quarter of 2022.
AMG Critical Materials Technologies
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
-------------------------------------------------------------------------------
Revenue $154,738 $144,697 7% $672,660 $610,468 10% Gross profit 20,146 19,381 4% 93,091 94,903 (2%)
Operating (loss)
profit (1,666) 1,579 N/A 11,315 20,474 (45%) Adjusted EBITDA 13,600 9,713 40% 46,354 44,790 3%
AMG Critical Materials Technologies' fourth quarter 2023 revenue increased by $10 million, or 7%, compared to the same period in 2022. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of chrome metal and higher sales prices of titanium alloys, partially offset by lower chrome metal pricing. Revenue for the segment in 2023 increased 10% compared to prior year.
SG&A expenses increased by 10% in 2023 compared to 2022, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the increased order backlog and business development, respectively.
AMG Critical Materials Technologies' adjusted EBITDA was $14 million during the fourth quarter, 40% higher than in the same period of 2022. The increase was primarily due to higher profitability in Engineering and Titanium, partially offset by lower chrome margins driven by continued sequential decline in chrome price in the fourth quarter of 2023.
AMG Engineering signed $27 million in new orders during the fourth quarter of 2023. On a full year basis, AMG signed a record high of $350 million in new orders during 2023, 24% higher than in 2022, representing a 1.27x book to bill ratio. The 2023 order intake was driven by strong orders of remelting and heat treatment furnaces. Order backlog was $295 million as of December 31, 2023.
Financial Review
Tax
AMG recorded an income tax expense of $95 million in 2023, compared to $84 million in 2022. This variance was due to negative movements in the Brazilian real in 2023 as compared to 2022 as well as non-cash deferred tax expenses related to the derecognition of certain tax assets. These tax assets were associated with interest expense carryforwards in our US business as well as loss carryforwards in our German business. These deferred tax expenses were partially offset by the lower profitability in the current quarter relative to the same period in the prior year.
AMG paid taxes of $103 million in 2023, compared to tax payments of $42 million in 2022. The higher cash payments in 2023 were largely a result of the timing lag related to Brazil's strong performance in late 2022 through the second quarter of 2023.
Exceptional Items
AMG's fourth quarter and full year 2023 gross profit includes exceptional items,
which are not included in the calculation of adjusted EBITDA.
A summary of exceptional items included in gross profit in 2023 and 2022 are below:
Exceptional items included in gross profit
Q4 '23 Q4 '22 Change FY '23 FY '22 Change
---------------------------------------------------------------------------------------------------------
Gross profit $55,252 $119,981 (54%) $389,431 $409,486 (5%)
Inventory
cost
adjustment 15,260 1,589 860% 26,731 1,589 1,582%
Restructuring
expense 6,115 389 1,472% 9,223 582 1,485%
Asset
impairment
expense
(reversal) 9,585 (990) N/A 8,818 10,597 (17%)
Silicon's
partial
closure (1,854) - N/A (4,502) - N/A
Strategic
project
expense 107 1,201 (91%) 511 5,540 (91%)
---------------------------------------------------------------------------------------------------------
Gross profit
excluding
exceptional
items 84,465 122,170 (31%) 430,212 427,794 1%
AMG had $15 million non-cash expense during the fourth quarter of 2023 mainly driven by Lithium GmbH's inventory cost adjustment of purchased lithium hydroxide which has been excluded in the calculation of adjusted EBITDA.
In mid 2023, AMG initiated a restructuring program to improve efficiencies and reduce headcount. The largest restructuring expenses are in AMG Titanium with $4
million, and in AMG Graphite with a restructuring expense of $1 million in the fourth quarter of 2023.
As a result of the restructuring program, certain non-core assets were also impacted. Asset impairments were recorded due to the retirement of these assets in the fourth quarter of 2023 at AMG Titanium and AMG Graphite of $3 million and
$7 million, respectively.
SG&A
AMG's fourth quarter 2023 SG&A expenses were $46 million compared to $37 million
in the fourth quarter of 2022, with the increase largely due to higher personnel
costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Full year 2023 SG&A expenses were $178 million, 20% higher than in 2022, due to increased professional fees associated with strategic projects during 2023 as well as higher personnel costs attributable to increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
December 31, 2023 December 31, 2022 Change
-------------------------------------------------------------------------------
Senior secured debt $337,402 $348,622 (3%) Cash & cash equivalents 345,308 346,043 -%
-------------------------------------------------------------------------------
Senior secured net (cash)
debt (7,906) 2,579 N/A
-------------------------------------------------------------------------------
Other debt 13,107 14,959 (12%)
-------------------------------------------------------------------------------
Net debt excluding municipal
bond 5,201 17,538 (70%)
-------------------------------------------------------------------------------
Municipal bond debt 319,002 319,244 -% Restricted cash 1,451 6,920 (79%)
-------------------------------------------------------------------------------
Net debt 322,752 329,862 (2%)
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2023, the Company had $345 million in unrestricted cash and cash equivalents and $195 million available on its revolving credit facility. As such, AMG had $540 million of total liquidity as of December 31, 2023.
Net Finance Costs
AMG's fourth quarter 2023 net finance income was $2 million compared to $4 million of income in the fourth quarter of 2022. This decrease was mainly driven
by lower capitalization of interest expense now that the Zanesville plant is fully operational.
Final Dividend Proposal
AMG intends to declare a dividend of EUR0.60 per ordinary share over the financial
year 2023. The interim dividend of EUR0.40, paid on August 9, 2023, will be
deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to EUR0.20.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 8, 2024.
Outlook
Our ongoing cost reduction and efficiency programs will reduce our headcount by approximately 200 which will essentially be offset by the ramp-up of our expansions in Germany and Brazil, as well as the growth in our LIVA and Engineering businesses.
Capital expenditures for 2024 are expected to be approximately $125 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.
AMG has no expected financing needs in 2024. AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $540 million can fully fund all of
the approved capital expansion projects and all other financial obligations.
AMG's two main lithium expansion projects are heading towards completion: our lithium concentrate expansion project from 90,000 tons to 130,000 tons in Brazil
and module 1 of our lithium hydroxide refinery in Germany. We are reviewing our resource development projects and all other expansion activities in light of the
present market conditions.
Regarding 2024 outlook, from the lithium concentrate and lithium carbonate market price highs in November 2022 of $6,110 per ton and $84,062 per ton, respectively, prices have each declined by 84%.
On November 8, 2023, we indicated an adjusted EBITDA for 2024 of approximately $200 million excluding any profitability from our Bitterfeld lithium hydroxide refinery and utilizing contemporary pricing. Since then, market prices for spodumene and lithium carbonate have declined 50% and 39%, respectively. Utilizing today's price levels, lithium profitability will be $60 million lower and vanadium profitability will be $10 million lower, therefore AMG's 2024
adjusted EBITDA will be approximately $130 million.
Our analysis of the long-term supply and demand trends in lithium gives us confidence that the present low prices are unsustainable.
Segmental Realignment
The Company has changed its organizational structure effective January 1, 2024,
and will therefore report financials for the new segments starting in the first quarter of 2024. This change results in three reporting segments: AMG Lithium, AMG Vanadium, and AMG Technologies. Each of these segments have very specific trends and business models, and require very different management skill sets.
AMG's 2023 pro forma segmental information for AMG Lithium, AMG Vanadium, and AMG Technologies is shown below:
AMG Lithium
Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23
------------------------------------------------------------------------
Revenue $130,668 $133,473 $62,346 $82,085 $408,572 Gross profit 92,013 90,006 26,769 20,569 229,357 Operating profit 83,589 79,904 16,390 7,900 187,783 Adjusted EBITDA 89,799 86,345 29,638 30,758 236,540
AMG Vanadium
Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23
---------------------------------------------------------------------
Revenue $194,280 $180,870 $174,436 $161,652 $711,238 Gross profit 26,424 17,227 17,182 16,237 77,070 Operating profit (loss) 13,103 (3,217) 3,539 13,524 26,949 Adjusted EBITDA 20,331 15,693 15,067 29,520 80,611
AMG Technologies
Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23
---------------------------------------------------------------------
Revenue $125,642 $124,976 $131,935 $123,498 $506,051 Gross profit 21,405 20,301 22,852 18,446 83,004 Operating profit (loss) 3,331 1,480 4,130 (1,921) 7,020 Adjusted EBITDA 7,981 5,415 9,080 10,864 33,340
Profit for the period to adjusted EBITDA reconciliation
Q4 '23 Q4 '22 FY '23 FY '22
-------------------------------------------------------------------------------
Profit for the period $1,266 $62,669 $102,288 $190,771 Income tax expense 19,958 23,827 95,002 84,097 Net finance (income) cost (2,455) (4,177) 20,739 30,941
Equity-settled share-based payment
transactions 1,443 1,414 5,799 5,552 Restructuring expense 6,115 389 9,223 582 Pension adjustment (1,410) - 5,290 - Net contract settlements - 971 - (45,436) Silicon's partial closure (966) - (1,520) - Inventory costadjustment 15,260 1,589 26,731 1,589
Asset impairment expense
(reversal) 9,585 (990) 8,818 10,597 Strategic project expense ((1)) 6,777 5,885 19,179 17,070 Share of loss of associates 734 - 3,723 1,250 Others 399 142 583 238
-------------------------------------------------------------------------------
EBIT 56,706 91,719 295,855 297,251 Depreciation and amortization 14,436 12,342 54,636 45,299
-------------------------------------------------------------------------------
Adjusted EBITDA 71,142 104,061 350,491 342,550
(Notes:)
((1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA
for these exceptional charges.)
AMG Critical Materials N.V.
Consolidated Income Statement
For the quarter ended December 31
In thousands of US dollars 2023 2022
Unaudited Unaudited
------------------------------------
Continuing operations
Revenue 367,235 390,004 Cost of sales (311,983) (270,023) Gross profit 55,252 119,981
Selling, general and administrative
expenses (45,582) (36,579) Other expenses (313) (1,083) Other income 10,146 - Net other operating income (expense) 9,833 (1,083) Operating profit 19,503 82,319 Finance income 15,222 5,459 Finance cost (12,767) (1,282) Net finance income 2,455 4,177
Share of loss of associates and joint
ventures (734) - Profit before income tax 21,224 86,496 Income tax expense (19,958) (23,827) Profit for the period 1,266 62,669
Profit attributable to:
Shareholders of the Company 2,173 60,697 Non-controlling interests (907) 1,972 Profit for the period 1,266 62,669
Basic earnings per share
Basic earnings per share 0.07 1.90 Diluted earnings per share 0.07 1.85
AMG Critical Materials N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US dollars 2023 2022
Unaudited
----------------------------------------
Continuing operations
Revenue 1,625,861 1,642,774 Cost of sales (1,236,430) (1,233,288) Gross profit 389,431 409,486
Selling, general and administrative
expenses (178,162) (147,963) Other expenses (313) (14,544) Other income 10,796 60,080 Net other operating income 10,483 45,536 Operating profit 221,752 307,059 Finance income 28,989 9,061 Finance cost (49,728) (40,002) Net finance cost (20,739) (30,941)
Share of loss of associates and joint
ventures (3,723) (1,250) Profit before income tax 197,290 274,868 Income tax expense (95,002) (84,097) Profit for the period 102,288 190,771
Profit attributable to:
Shareholders of the Company 101,320 187,589 Non-controlling interests 968 3,182 Profit for the period 102,288 190,771
Earnings per share
Basic earnings per share 3.15 5.87 Diluted earnings per share 3.12 5.73
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
In thousands of US dollars December 31, 2023 Unaudited December 31, 2022
Assets
Property, plant and equipment 921,178 797,611
Goodwill and other intangible
assets 40,313 41,404 Derivative financial instruments 22,847 33,042 Equity-accounted investees 18,266 - Other investments 38,160 29,324 Deferred tax assets 26,882 37,181 Restricted cash 387 5,875 Other assets 12,060 8,612 Total non-current assets 1,080,093 953,049 Inventories 260,945 277,311 Derivative financial instruments 3,397 3,516 Trade and other receivables 164,027 162,548 Other assets 100,128 121,834 Current tax assets 7,845 7,289 Restricted cash 1,064 1,045 Cash and cash equivalents 345,308 346,043 Total current assets 882,714 919,586 Total assets 1,962,807 1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars December 31, 2023 Unaudited December 31, 2022
Equity
Issued capital 853 853 Share premium 553,715 553,715 Treasury shares (10,593) (14,685) Other reserves (52,269) (44,869) Retained earnings (deficit) 70,077 (4,461)
Equity attributable to
shareholders of the Company 561,783 490,553 Non-controlling interests 44,220 27,296 Total equity 606,003 517,849
Liabilities
Loans and borrowings 656,265 661,270 Lease liabilities 46,629 44,224 Employee benefits 133,333 117,160 Provisions 17,951 12,361 Deferred revenue 17,836 20,000 Other liabilities 4,784 15,009 Derivative financial instruments 27 284 Deferred tax liabilities 6,664 27,269 Total non-current liabilities 883,489 897,577 Loans and borrowings 5,566 15,164 Lease liabilities 5,725 4,710 Short-term bank debt 7,678 6,391 Deferred revenue 14,083 28,277 Other liabilities 77,052 69,917 Trade and other payables 259,339 240,101 Derivative financial instruments 2,828 7,746 Advance payments from customers 60,561 51,054 Current tax liability 24,279 23,548 Provisions 16,204 10,301 Total current liabilities 473,315 457,209 Total liabilities 1,356,804 1,354,786 Total equity and liabilities 1,962,807 1,872,635
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US dollars 2023 2022
Unaudited
------------------------------------
Cash from operating activities
Profit for the period 102,288 190,771
Adjustments to reconcile net profit to net
cash flows:
Non-cash:
Income tax expense 95,002 84,097 Depreciation and amortization 54,636 45,299 Asset impairment expense 8,818 10,597 Net finance cost 20,739 30,941
Share of loss of associates and joint
ventures 3,723 1,250
Loss (gain) on sale or disposal of
property, plant and equipment 145 (592)
Equity-settled share-based payment
transactions 5,799 5,552
Movement in provisions, pensions, and
government grants (2,137) (11,982)
Working capital and deferred revenue
adjustments 58,187 (123,281) Cash generated from operating activities 347,200 232,652 Finance costs paid, net (21,028) (23,289) Income tax paid (103,172) (41,796) Net cash from operating activities 223,000 167,567
Cash used in investing activities
Proceeds from sale of property, plant and
equipment 39 2,538
Acquisition of property, plant and
equipment and intangibles (153,377) (174,516)
Investments in associates and joint
ventures (21,989) (1,250) Use of restricted cash 5,469 86,514 Interest received on restricted cash 30 250 Capitalized borrowing cost paid (15,519) (16,652) Other 3 12 Net cash used in investing activities (185,344) (103,104)
AMG Critical Materials N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
In thousands of US dollars 2023 2022
Unaudited
----------------------------------
Cash used in financing activities
Proceeds from issuance of debt 1,395 82 Repayment of borrowings (15,995) (33,863) Net repurchase of common shares (6,960) (1,523) Dividends paid (28,212) (19,885) Payment of lease liabilities (5,764) (5,101) Advanced contributions - 11,000 Contributions by non-controlling interests 14,000 - Net cash used in financing activities (41,536) (49,290)
Net (decrease) increase in cash and cash
equivalents (3,880) 15,173 Cash and cash equivalents at January 1 346,043 337,877
Effect of exchange rate fluctuations on cash
held 3,145 (7,007) Cash and cash equivalents at December 31 345,308 346,043
This press release contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG's mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG's products include highly engineered systems to reduce CO(2) in aerospace engines, as well as critical materials addressing CO(2) reduction in a variety of other end use markets.
AMG's Lithium segment spans the lithium value chain, reducing the CO(2) footprint of both suppliers and customers. AMG's Vanadium segment is the world's
market leader in recycling vanadium from oil refining residues, spanning the Company's vanadium, titanium, and chrome businesses. AMG's Technologies segment is the established world market leader in advanced metallurgy and provides equipment engineering to the aerospace engine sector globally. It serves as the engineering home for the Company's fast-growing LIVA batteries, and spans AMG's mineral processing operations in graphite, antimony, and silicon metal.
With approximately 3,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).
For further information, please contact:
AMG Critical Materials N.V. +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com (mailto: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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| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
AMG CRITICAL MATER. EO-02 | A0MWED | Frankfurt | 20,500 | 30.05.24 19:50:00 | -0,040 | -0,19% | 0,000 | 0,000 | 20,260 | 20,500 |
