Amsterdam, 7 May 2024 (Regulated Information) --- AMG Critical Materials N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reports first quarter 2024 revenue of $358 million, a 21% decrease versus the first quarter of 2023. First quarter 2024
adjusted EBITDA of $31 million decreased largely due to the decline in global metal prices compared to the prior period.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "The first quarter 2024 adjusted EBITDA of $31 million is in line with our guidance for the year. We are pleased to announce that our major lithium expansions continue on-schedule. Our Brazilian mine expansion and the ramp-up of our lithium conversion plant in Germany place us in an enviable position for when prices recover. The lithium market is volatile and will remain so for the foreseeable future. Long-term demand trends are encouraging, and additional supply prospects are confronting challenging constraints throughout the industry. Our low-cost position allows us to endure the current market conditions and prosper considerably at more normalized price levels.
Market prices for all products in our portfolio weakened during the first quarter of 2024 compared to the first quarter of 2023. The decrease in adjusted EBITDA compared to the first quarter of 2023 was predominantly driven by the global decline in lithium and vanadium prices. The average quarterly prices of lithium carbonate and ferrovanadium, the material prices that most significantly
impact our financial results, decreased 76% and 33%, respectively, versus the average pricing in the first quarter of 2023.
Despite these market conditions, our lithium expansion strategy remains on track, and we have significant liquidity to support our growth opportunities. Including our $100 million term loan expansion, which occurred after the end of the first quarter, AMG has close to $600 million of total liquidity."
Lithium
* In Brazil, the expansion of our lithium concentrate plant from 90,000 tons
to 130,000 tons per annum is progressing as planned. We expect to reach full

    nameplate capacity of 130,000 tons in the fourth quarter of 2024.
  * In Bitterfeld, Germany, AMG's lithium hydroxide refinery's first 20,000-ton
    module is on schedule, both in its advanced commissioning and product
    qualification process. We plan to ship production batches to clients in the
    third quarter of 2024.

Vanadium

  * AMG Vanadium continues to implement its global satellite roasting strategy
    through the implementation of our recently acquired TTI technology.
  * The vanadium electrolyte plant at AMG Titanium in Nuremberg, Germany is in
    the final stages of completion. We expect to have nameplate capacity
    available by the second half of 2024 as part of the vertical integration
    into LIVA batteries.
  * Shell & AMG Recycling's (SARBV) "Supercenter" project in Saudi Arabia is in
    final stages of basic engineering for Phase 1. The joint venture has begun
    the selection process for financial advisors for non-recourse project
    financing.

Technologies

  * In April, NewMOX SAS, Grenoble, France, was formed to service the nuclear
    fuel market. NewMOX is a subsidiary of ALD Vacuum Technologies GmbH, Hanau,
    Germany ("ALD"), AMG's engineering subsidiary focused on vacuum furnace

technology, which includes sintering furnace systems enabling the production of commercial nuclear fuel from plutonium and depleted uranium (termed
"MOX"). ALD's MOX technology has been applied in Germany, the United States,

    France, Belgium, the United Kingdom and recently ALD has been delivering
    such furnace systems to China.

* AMG LIVA is engaged in the execution of several battery projects to optimize

    the energy management of industrial plants and incorporate renewable energy
    sources. In June we will celebrate the opening of a 4.5 MWh energy storage
    system shifting wind and solar energy for a major industrial client. The
    system enables 80% self-sufficiency and is also used for peak shaving,
    process heating and cooling, EV charging and grid services.

Financial Highlights

  * In April, AMG entered into a new $100 million incremental term loan,
    structured as a fungible add-on to the existing $350 million senior secured
    term loan. The $100 million incremental term loan has the same pricing,

terms and 2028 maturity as the existing $350 million term loan. AMG will use the proceeds of the new incremental term loan for general corporate purposes

    and lithium resource development.
  * AMG's liquidity as of March 31, 2024 was $485 million, with $285 million of
    unrestricted cash and $200 million of revolving credit availability. These
    figures do not include the term loan expansion noted above, as it occurred
    after the end of the quarter.
  * AMG Engineering signed $82 million in new orders for the first three months
    of 2024, 8% higher than for the same period in 2023.

* The Company will pay its final 2023 declared dividend of EUR0.20 per ordinary share on or around May 15, 2024, to shareholders of record on May 13, 2024.
Key Figures
In 000's US dollars

                                             Q1 '24        Q1 '23        Change
 Revenue                                   $358,159      $450,590         (21%)

-------------------------------------------------------------------------------

 Gross profit                                47,322       139,842         (66%)
 Gross margin                                 13.2%         31.0%

-------------------------------------------------------------------------------

 Operating profit                             2,678       100,023         (97%)
 Operating margin                              0.7%         22.2%

Net (loss) income attributable to
shareholders (16,260) 56,221 N/A
-------------------------------------------------------------------------------

 EPS - Fully diluted                         (0.50)          1.72           N/A
 EBIT ((1))                                  17,092       105,144         (84%)
 Adjusted EBITDA ((2))                       30,807       118,111         (74%)
 Adjusted EBITDA margin                        8.6%         26.2%

Cash (used in) from operating
activities (14,918) 93,395 N/A
-------------------------------------------------------------------------------
(Notes:)
((1) EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses, equity-settled share-based
payments, strategic expenses, and other exceptional items.)
((2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization.)
Operational Review
AMG Lithium
Q1 '24 Q1 '23 Change
---------------------------------------------------------------

  Revenue                   $41,574   $130,668           (68%)
  Gross profit                5,346     92,013           (94%)
  Operating (loss) profit   (5,351)     83,589             N/A
  Adjusted EBITDA             5,759     89,799           (94%)

AMG Lithium's revenue and gross profit decreased 68% and 94%, respectively, compared to the first quarter of 2023. These variances were largely driven by the decline in lithium market prices, since the first quarter of 2023, as well as the unabsorbed fixed costs incurred during construction of the spodumene expansion project in Brazil in the current quarter.
SG&A expenses of $11 million in the first quarter of 2024 were 26% higher than in the same period last year, mainly driven by the increase in headcount related
to both the German and Brazilian lithium expansion projects, as well as higher employee benefit costs and professional fees.
The first quarter 2024 adjusted EBITDA decreased 94%, to $6 million, from $90 million in the first quarter of 2023, due to the decline in metal prices as noted above.
During the first quarter of 2024, a total of 15,652 dry metric tons ("dmt") of lithium concentrates were sold, 24% lower than the 20,509 dmt in the first quarter of 2023 due to shipping variances in 2023. Volumes were negatively impacted by shipments that arrived in the fourth quarter of 2023 to the detriment of our first quarter 2024 volumes. The average realized sales price was $1,163/dmt CIF China for the quarter. The average cost per ton for the quarter was $616/dmt CIF China.
Our lithium concentrate plant is currently ramping to 130,000 tons and shipping volumes will be impacted in the second quarter. The cost per ton will rise relative to historical costs due to unabsorbed costs during the ramp-up, as well
as lower relative tantalum sales volumes offsetting higher spodumene production.
We expect to reach design capacity production in the fourth quarter of 2024. AMG
is one of the lowest cost lithium concentrate mines in the world and we plan to maintain that position.
AMG Vanadium
Q1 '24 Q1 '23 Change
---------------------------------------------------------

  Revenue            $165,141   $194,280           (15%)
  Gross profit         17,646     26,424           (33%)
  Operating profit      3,830     13,103           (71%)
  Adjusted EBITDA      14,440     20,331           (29%)

AMG Vanadium's revenue for the first quarter of 2024 decreased by 15%, to $165 million, due primarily to lower sales prices in vanadium and chrome metal partially offset by increased volumes in vanadium.
Gross profit in the first quarter of 2024 was $9 million lower compared to the same period in 2023, largely due to lower prices noted above.
SG&A expenses in the first quarter of 2024 of $14 million were 4% higher than in
the first quarter of 2023 related to an increase in research and development costs during the current quarter.
The first quarter 2024 adjusted EBITDA decreased 29% compared to the same period
in 2023, to $14 million, largely driven by the decline in metal prices noted above.
AMG Technologies
Q1 '24 Q1 '23 Change
-------------------------------------------------------

  Revenue            $151,444   $125,642           21%
  Gross profit         24,330     21,405           14%
  Operating profit      4,199      3,331           26%
  Adjusted EBITDA      10,608      7,981           33%
AMG  Technologies' first quarter 2024 revenue increased by $26 million, or 21%,

compared to the same period in 2023. This improvement was driven by strong revenues in our engineering unit, as well as higher sales volumes of silicon. Despite challenging overall market conditions for AMG, the AMG Technologies segment is delivering strong financial results, evidencing the strength of our portfolio to succeed in a varied set of market conditions.
SG&A expenses increased by 9% in the first quarter of 2024 compared to the same period in 2023, due to additional personnel at AMG Engineering and AMG LIVA corresponding to the increased order backlog and business development, respectively.
AMG Technologies' adjusted EBITDA was $11 million during the first quarter, 33%
higher than in the first three months of 2023. The increase was primarily due to
higher profitability in Engineering driven by remelting and induction furnace sales as well as the after sales and service division.
AMG Engineering signed $82 million in new orders during the first quarter of 2024, 8% higher than the same period in 2023, representing a 1.03x book to bill ratio. The first quarter 2024 order intake was driven by strong orders of remelting and turbine blade coating furnaces, as well as the spare parts and services division. Order backlog was $300 million as of March 31, 2024.
AMG Silicon began operating two of its four furnaces in March 2024. 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 profitability of the business is immaterial and excluded from adjusted EBITDA during this period of abnormal operations.
Financial Review
Tax
AMG recorded an income tax expense of $3 million in the first quarter of 2024,
compared to $36 million in the first quarter of 2023. This variance was due to lower profitability in the current quarter relative to the same period in the prior year, marginally offset by 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 and Dutch entities.
AMG paid taxes of $8 million in the first quarter of 2024, compared to tax payments of $21 million in the first quarter of 2023. The reduced cash payments in the current period were largely a result of the decrease in profitability year-over-year, offset by tax payments due in Brazil related to positive results
in the fourth quarter of 2023.
Exceptional Items
AMG's first quarter 2024 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 the first quarters of
2024 and 2023 are below:
Exceptional items included in gross profit
Q1 '24 Q1 '23 Change
-------------------------------------------------------------------------------

 Gross profit                               $47,322      $139,842         (66%)
 Inventory cost adjustment                    3,055           510          499%
 Restructuring expense (reversal)               644         (263)           N/A
 Asset impairment reversal                        -         (767)           N/A

Brazil's SP1+ expansion and

 commissioning                                2,053             -           N/A
 Silicon's partial closure                     (61)         (156)         (61%)
 Strategic project expense (reversal)            21          (51)           N/A

-------------------------------------------------------------------------------
Gross profit excluding exceptional
items 53,034 139,115 (62%)
AMG had $3 million non-cash expense during the first quarter of 2024 mainly driven by Vanadium's inventory cost adjustment due to lower vanadium prices, and
$2 million of costs associated with AMG Brazil's lithium concentrate expansion, which have been excluded from the calculation of adjusted EBITDA.
SG&A
AMG's first quarter 2024 SG&A expenses were $45 million compared to $40 million in the first quarter of 2023, with the increase largely due to higher personnel costs driven by increased hiring in our Lithium, Engineering, and LIVA businesses.
Liquidity
March 31, 2024 December 31, 2023 Change
-------------------------------------------------------------------------------

 Senior secured debt                  $336,856          $337,402             -%
 Cash & cash equivalents               285,271           345,308          (17%)

-------------------------------------------------------------------------------
Senior secured net debt (cash) 51,585 (7,906) N/A
-------------------------------------------------------------------------------
Other debt 12,298 13,105 (6%)
-------------------------------------------------------------------------------
Net debt excluding municipal
bond 63,883 5,199 1,129%
-------------------------------------------------------------------------------

 Municipal bond debt                   318,939           319,002             -%
 Restricted cash                         1,429             1,451           (2%)

-------------------------------------------------------------------------------
Net debt 381,393 322,750 18%
AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the first quarter. As of March 31, 2024, the Company had $285 million in unrestricted cash and cash equivalents and $200 million available on its revolving credit facility. As such, AMG had $485 million of total liquidity as of March 31, 2024. These figures do not include the term loan expansion previously noted, as it occurred after the end of the quarter.
Net Finance Costs
AMG's first quarter 2024 net finance cost was $15 million compared to $7 million
in the first quarter of 2023. This variance was largely driven by non-cash, intercompany foreign exchange losses of $7 million during the current quarter, compared to $2 million in foreign exchange gains in the prior period.
Outlook
Regarding 2024 outlook, low prices continue for both lithium and vanadium. Utilizing today's price levels, we reiterate that AMG's 2024 adjusted EBITDA will be approximately $130 million.
AMG's lithium projects are progressing on schedule and we expect that they will
have a substantially positive impact as market conditions improve.
Regarding AMG's 5-year guidance, utilizing a variety of price and quantity assumptions with a lithium carbonate equivalent price of $25,000, we guide to an
EBITDA of $500 million or more in five years or earlier.
(Loss) profit for the period to adjusted EBITDA reconciliation
Q1 '24 Q1 '23
--------------------------------------------------------------------------

  (Loss) profit for the period                      ($15,295)     $56,447
  Income tax expense                                    2,748      35,927
  Net finance cost                                     14,548       6,617
  Equity-settled share-based payment transactions       1,453       1,469
  Restructuring expense (reversal)                        644       (263)
  Brazil's SP1+ expansion and commissioning             2,053           -
  Silicon's partial closure                             1,210         547
  Inventory cost adjustment                             3,055         510
  Asset impairment reversal                                 -       (767)
  Strategic project expense ((1))                       5,999       3,625
  Share of loss of associates                             677       1,032

--------------------------------------------------------------------------

  EBIT                                                 17,092     105,144
  Depreciation and amortization                        13,715      12,967

--------------------------------------------------------------------------
Adjusted EBITDA 30,807 118,111
(Notes:)
((1) The Company is in the initial development and ramp-up phases for several strategic expansion projects, including the joint venture with Shell, the LIVA Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA
for these exceptional charges.)
AMG Critical Materials N.V.
Condensed Interim Consolidated Income
Statement
For the quarter ended March 31

 In thousands of US dollars                              2024              2023
                                                    Unaudited         Unaudited
                                           ------------------------------------

Continuing operations

 Revenue                                              358,159           450,590
 Cost of sales                                      (310,837)         (310,748)
 Gross profit                                          47,322           139,842

Selling, general and administrative

 expenses                                            (44,739)          (40,360)
 Other expenses                                             -                 -
 Other income                                              95               541
 Net other operating income                                95               541
 Operating profit                                       2,678           100,023
 Finance income                                         4,755             5,476
 Finance cost                                        (19,303)          (12,093)
 Net finance cost                                    (14,548)           (6,617)

Share of loss of associates and joint

 ventures                                               (677)           (1,032)
 (Loss) profit before income tax                     (12,547)            92,374
 Income tax expense                                   (2,748)          (35,927)
 (Loss) profit for the period                        (15,295)            56,447

(Loss) profit attributable to:

 Shareholders of the Company                         (16,260)            56,221
 Non-controlling interests                                965               226
 (Loss) Profit for the period                        (15,295)            56,447

Loss (earnings) per share

 Basic (loss) earnings per share                       (0.50)              1.76
 Diluted (loss) earnings per share                     (0.50)              1.72

AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial
Position
In thousands of US dollars March 31, 2024 Unaudited December 31, 2023
Assets
Property, plant and equipment 926,720 921,178
Goodwill and other intangible

 assets                                                52,710            40,313
 Derivative financial instruments                      24,999            22,847
 Equity-accounted investees                            17,588            18,266
 Other investments                                     38,518            38,160
 Deferred tax assets                                   28,220            26,882
 Restricted cash                                          377               387
 Other assets                                          12,499            12,060
 Total non-current assets                           1,101,631         1,080,093
 Inventories                                          265,784           260,945
 Derivative financial instruments                       1,294             3,397
 Trade and other receivables                          168,235           164,027
 Other assets                                          93,420           100,128
 Current tax assets                                     6,765             7,845
 Restricted cash                                        1,052             1,064
 Cash and cash equivalents                            285,271           345,308
 Total current assets                                 821,821           882,714
 Total assets                                       1,923,452         1,962,807

AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of Financial
Position
(continued)
In thousands of US dollars March 31, 2024 Unaudited December 31, 2023
Equity

 Issued capital                                           853               853
 Share premium                                        553,714           553,715
 Treasury shares                                      (9,558)          (10,593)
 Other reserves                                      (53,305)          (52,269)
 Retained earnings                                     53,427            70,077

Equity attributable to shareholders

 of the Company                                       545,131           561,783
 Non-controlling interests                             44,212            44,220
 Total equity                                         589,343           606,003

Liabilities

 Loans and borrowings                                 655,418           656,265
 Lease liabilities                                     44,733            46,629
 Employee benefits                                    130,513           133,333
 Provisions                                            17,769            17,951
 Deferred revenue                                      14,012            17,836
 Other liabilities                                      4,658             4,784
 Derivative financial instruments                          42                27
 Deferred tax liabilities                               7,231             6,664
 Total non-current liabilities                        874,376           883,489
 Loans and borrowings                                   5,168             5,566
 Lease liabilities                                      5,438             5,725
 Short-term bank debt                                   7,507             7,678
 Deferred revenue                                      15,820            14,083
 Other liabilities                                     80,344            77,052
 Trade and other payables                             248,024           259,339
 Derivative financial instruments                       2,545             2,828
 Advance payments from customers                       62,940            60,561
 Current tax liability                                 17,600            24,279
 Provisions                                            14,347            16,204
 Total current liabilities                            459,733           473,315
 Total liabilities                                  1,334,109         1,356,804
 Total equity and liabilities                       1,923,452         1,962,807

AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of
Cash Flows
For the quarter ended March 31

 In thousands of US dollars                               2024             2023
                                                     Unaudited        Unaudited
                                             ----------------------------------

Cash (used in) from operating activities
(Loss) profit for the period (15,295) 56,447
Adjustments to reconcile net profit to net
cash flows:
Non-cash:

 Income tax expense                                      2,748           35,927
 Depreciation and amortization                          13,715           12,967
 Asset impairment reversal                                   -            (767)
 Net finance cost                                       14,548            6,617

Share of loss of associates and joint
ventures 677 1,032
Loss on sale or disposal of property, plant
and equipment 33 9
Equity-settled share-based payment
transactions 1,453 1,469
Movement in provisions, pensions, and
government grants 805 2,755
Working capital and deferred revenue

 adjustments                                          (15,373)            4,905
 Cash generated from operating activities                3,311          121,361
 Finance costs paid, net                               (9,942)          (7,012)
 Income tax paid                                       (8,287)         (20,954)
 Net cash (used in) from operating activities         (14,918)           93,395

Cash used in investing activities
Proceeds from sale of property, plant and
equipment 13 -
Acquisition of property, plant and equipment

 and intangibles                                      (33,652)         (44,718)
 Investments in associates and joint ventures                -         (17,500)
 Use of restricted cash                                     22            4,009
 Interest received on restricted cash                        -               19
 Capitalized borrowing cost paid                       (3,681)          (5,739)
 Other                                                     (7)                3
 Net cash used in investing activities                (37,305)         (63,926)

AMG Critical Materials N.V.
Condensed Interim Consolidated Statement of
Cash Flows
(continued)
For the quarter ended March 31

 In thousands of US dollars                               2024             2023
                                                     Unaudited        Unaudited
                                             ----------------------------------

Cash used in financing activities

 Proceeds from issuance of debt                              -              423
 Repayment of loans and borrowings                       (127)         (10,750)
 Net repurchase of common shares                         (688)          (6,672)
 Payment of lease liabilities                          (1,579)          (1,316)
 Net cash used in financing activities                 (2,394)         (18,315)

Net (decrease) increase in cash and cash

 equivalents                                          (54,617)           11,154
 Cash and cash equivalents at January 1                345,308          346,043

Effect of exchange rate fluctuations on cash

 held                                                  (5,420)            2,328
 Cash and cash equivalents at March 31                 285,271          359,525

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 Lithiumsegment 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.
Â