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AMG’s Low-Cost Lithium Operations Drive AMG to Record-Setting Full Year Earnings

AMG Advanced Metallurgical Group N.V.
AMG Advanced Metallurgical Group N.V.

Amsterdam, 22 February 2023 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported fourth quarter 2022 revenue of $390 million, an 18% increase versus the fourth quarter of 2021. Fourth quarter 2022 EBITDA of $104 million was more than double the fourth quarter of 2021, and drove AMG to a record-setting full year EBITDA of $343 million.

In 000’s US dollars

FY ‘22

FY ‘21

Change

Revenue

$1,642,774

$1,204,666

36%

EBITDA (1)

342,550

136,676

151%

Cash from operating activities

167,567

90,788

85%

Net income attributable to shareholders

187,589

13,771

 

EPS - Fully diluted

5.73

0.44

 

Return on Capital Employed

30.8%

11.9%

 

Note:
(1)   EBITDA is defined as EBIT adjusted for depreciation and amortization.

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Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “AMG's full year 2022 EBITDA, revenue, gross profit, operating cash flows, return on capital employed, and net income were the highest in the company's history by significant margins. This result is due to the AMG Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $215 million, or 63% of the total EBITDA for the year. Moreover, AMG exceeded $100 million of EBITDA for the second straight quarter. EBITDA for the fourth quarter of 2022 was $104 million compared to $44 million in the fourth quarter of 2021, an increase of $60 million, or 137%. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2022 enabled 99.4 million tons of CO2 reduction, 26% more than the 79.0 million tons of enabled CO2 reduction in 2021.”

Outlook

AMG reaffirms its guidance for the full year 2023 to exceed $400 million EBITDA.

AMG anticipates the Company will increase overall staffing from about 3,400 at the end of 2022 by 5% due to the hiring associated with the ramp-up of the vanadium expansion in Ohio and the lithium expansion in Germany.

Capital expenditures for 2023 are expected to be between $175 million and $200 million, mainly driven by the lithium concentrate expansion in Brazil and expenditures related to the construction of the lithium hydroxide plant in Germany.

With regard to financing in 2023, AMG refinanced its $350 million term loan and $200 million revolver in November 2021, extending revolver and term loan maturities to 2026 and 2028, respectively. AMG has no significant near-term debt maturities. And although we look to consistently optimize our financial structure, our current liquidity of $532 million can fully fund all of the approved capital expansion projects and all other financial obligations.

In addition, we reaffirm our two-pronged commitment to reduce our CO2 emissions and increase our enabled CO2 savings through 2030.

Strategic Highlights

Lithium

  • The spodumene production expansion project in AMG Brazil is progressing. The project will solidify AMG’s low-cost position. The objective is to be at full capacity in the second half of 2023.

  • The AMG Lithium refinery in Bitterfeld, Germany, Europe’s first lithium hydroxide refinery, is under construction, and commissioning for the first 20,000-ton module of the battery-grade lithium hydroxide upgrader will commence in the fourth quarter of 2023.

  • AMG Lithium has signed a non-binding memorandum of understanding with FREYR Battery, the basis of which is for AMG Lithium to supply FREYR between 3,000 to 5,000 tons per annum of battery-grade lithium hydroxide.

  • AMG Brazil, JX Nippon Mining & Metals Corporation (“JXNMM”) and TANIOBIS GmbH announced a strategic partnership in December 2022 for the production and supply of tantalum concentrate from AMG’s Mibra Mine in Brazil. JXNMM will invest in the expansion of tantalum concentrate production that is occurring in combination with AMG’s already announced expansion of spodumene capacity. All tantalum pre-concentrate will be sold to TANIOBIS, providing long-term stability in tantalum sales and corresponding by-product credits to lithium production costs for AMG Brazil.

Vanadium

  • AMG finalized the completion of the new vanadium spent catalyst recycling facility in Zanesville, Ohio. Operations began on October 29, 2022, and we are targeting full production capacity in the second quarter of 2023.

  • Shell & AMG Recycling B.V. (“SARBV”) is advancing its projects in the Middle East, in particular the first phase of the Supercenter project based on long-term supply agreements with Saudi Arabian Oil Company (“Aramco”). Plant design optimization, site selection and permitting activities are progressing and the FEL3 partnering with Hatch began in December 2022.

  • AMG LIVA put its first industrial battery – the Hybrid Energy Storage System (“HESS”) – into fully automatic operation mode in AMG Graphite’s plant in Hauzenberg in November 2022.

  • AMG LIVA sold its first HESS to a third party in December 2022 to Wipotec GmbH, a leading global provider of intelligent weighing and inspection technology located in Southern Germany. The battery will be integrated into the facility’s power system.

  • In January 2023, AMG approved building a vanadium electrolyte plant at its subsidiary, AMG Titanium, in Nuremberg, Germany. The target capacity is 6,000 m³ vanadium electrolyte. Basic engineering for the plant was completed in November, CAPEX is expected to be $15 million, and production is expected to start at the end of 2023.

Financial Highlights

  • Revenue increased by 18% to $390 million in the fourth quarter of 2022 from $330 million in the fourth quarter of 2021. On a full year basis, revenue increased by 36%.

  • EBITDA was $104 million in the fourth quarter of 2022, up 137% versus the fourth quarter 2021 EBITDA of $44 million. Full year EBITDA of $343 million is 151% higher than the prior year.

  • Annualized return on capital employed was 30.8% for 2022, more than double the 11.9% for 2021.

  • Cash flow from operations was $168 million for full year 2022, compared to $91 million in 2021, driven by the high profitability of AMG Lithium in Brazil.

  • Net income attributable to shareholders for full year 2022 was $188 million, yielding $5.73 diluted earnings per share compared to $0.44 in 2021.

  • AMG’s liquidity as of December 31, 2022 was $532 million, with $346 million of unrestricted cash and $186 million of revolving credit availability.

  • The total 2022 dividend proposed is €0.70 per ordinary share, including the interim dividend of €0.30, paid on August 10, 2022.

Key Figures

In 000’s US dollars

 

 

 

 

 

 

 

Q4 ‘22

Q4 ‘21

Change

FY ‘22

FY ‘21

Change

Revenue

$390,004

$330,360

18%

$1,642,774

$1,204,666

36%

Gross profit

119,981

61,797

94%

409,486

208,243

97%

Gross margin

30.8%

18.7%

 

24.9%

17.3%

 

 

 

 

 

 

 

 

Operating profit

82,319

22,295

269%

307,059

57,141

437%

Operating margin

21.1%

6.7%

 

18.7%

4.7%

 

 

 

 

 

 

 

 

Net income
attributable to
shareholders

60,697

5,705

964%

187,589

13,771

1,262%

 

 

 

 

 

 

 

EPS - Fully diluted

1.85

0.18

928%

5.73

0.44

1,202%

 

 

 

 

 

 

 

EBIT (1)

91,719

32,678

181%

297,251

92,991

220%

EBITDA (2)

104,061

43,885

137%

342,550

136,676

151%

EBITDA margin

26.7%

13.3%

 

20.9%

11.3%

 

 

 

 

 

 

 

 

Cash from
operating activities

56,969

30,225

88%

167,567

90,788

85%

Notes:

(1)   EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses and other exceptional items, equity-settled share-based payments, and strategic expenses.
(2)   EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Clean Energy Materials

 

Q4 ‘22

Q4 ‘21

Change

FY ‘22

FY ‘21

Change

Revenue

$176,065

$115,405

53%

$667,804

$381,475

75%

Gross profit

81,583

27,950

192%

267,862

75,095

257%

Gross profit before
non-recurring items

82,784

29,038

185%

273,417

80,264

241%

Operating profit

69,779

16,301

328%

222,590

22,476

890%

EBITDA

80,347

25,753

212%

259,480

66,622

289%

AMG Clean Energy Materials’ revenue increased 53% compared to the fourth quarter of 2021, to $176 million, driven mainly by higher prices in vanadium, tantalum and lithium concentrates, as well as increased sales volumes of vanadium and tantalum concentrate. The higher prices and volumes in 2022 propelled revenue for the segment 75% higher than in 2021.

Gross profit before non-recurring items for the quarter increased 185% compared to the same period in the prior year. The segment’s full year 2022 gross profit before non-recurring items grew 241% compared to 2021, primarily due to the increased price environment.

SG&A expenses in the fourth quarter of 2022 were in line with the same period in 2021 at $12 million. Full year 2022 SG&A expenses were 11% higher than in 2021, largely due to increased professional fees associated with strategic projects during 2022 offset by lower share-based compensation.

The fourth quarter 2022 EBITDA increased 212%, to $80 million, from $26 million in the fourth quarter of 2021, due to the improved gross profit as noted above. The segment’s full year 2022 EBITDA of $259 million was 289% higher than the 2021 EBITDA, largely driven by the lithium business. Vanadium profitability was impacted in the fourth quarter of 2022 by a sequential drop in index prices of 16% from the third quarter and the impact of start-up costs for Zanesville.

During the fourth quarter of 2022, a total of 21,329 dry metric tons (“dmt”) of spodumene was sold. The average realized sales price was $3,682/dmt CIF China for the quarter. The average cost per ton for the quarter was $228/dmt CIF China. This exceptional cost per ton result was driven by high sales volumes of tantalum concentrate in the quarter, and drove a quarterly EBITDA figure for AMG Brazil of $73 million.

For the full year 2022, a total of 86,713 dmt of spodumene was sold. The average realized sales price was $2,805/dmt CIF China and the average cost per ton for the full year was $461/dmt CIF China. Total EBITDA for AMG Brazil was $215 million.

AMG Critical Minerals

 

Q4 ‘22

Q4 ‘21

Change

FY ‘22

FY ‘21

Change

Revenue

$69,242

$79,422

(13%)

$364,502

$308,523

18%

Gross profit

19,017

11,189

70%

46,721

48,735

(4%)

Gross profit before
non-recurring items

18,641

11,379

64%

57,928

48,690

19%

Operating profit

10,961

2,584

324%

63,995

20,181

217%

EBITDA

14,001

6,459

117%

38,280

31,200

23%

AMG Critical Minerals’ revenue for the fourth quarter of 2022 decreased by $10 million, or 13%, to $69 million, mainly due to lower volumes across the segment. On a full year basis, revenue increased by 18% compared to 2021.

Gross profit before non-recurring items of $19 million in the fourth quarter was 64% higher compared to the fourth quarter of 2021. The segment’s full year 2022 gross profit before non-recurring items was 19% higher than in 2021, largely driven by the improved price environment and favorable energy contracts for silicon production in the fourth quarter.

SG&A expenses in the fourth quarter of 2022 decreased by 20%, to $7 million, compared to the same period in 2021. This was largely driven by lower share-based compensation expense in the current quarter associated with a reversal recorded in the prior year. Full year 2022 SG&A expenses were slightly lower than 2021 by $0.6 million.

The fourth quarter 2022 EBITDA increased 117% compared to the same period in 2021, to $14 million, due to improved gross profit as noted above and favorable energy contracts at AMG Silicon in the quarter. Improved prices during 2022 led to a 23% increase in full year EBITDA for the segment compared to 2021.

Effective January 1, 2023, AMG placed its silicon metal plant in Pocking, Germany, on care and maintenance. The plant will restart and operate one furnace in March of 2023. The operational parameters of the silicon business will continue to be reviewed on an ongoing basis and will be adjusted as appropriate in line with favorable and predictable market conditions. Due to the noted interruptions in silicon operations, the financial impact of the business will be excluded from EBITDA during this period of abnormal operations. The financial impact of the care and maintenance program does not significantly impact AMG’s overall projected 2023 financial results.

AMG Critical Materials Technologies

 

Q4 ‘22

Q4 ‘21

Change

FY ‘22

FY ‘21

Change

Revenue

$144,697

$135,533

7%

$610,468

$514,668

19%

Gross profit

19,381

22,658

(14%)

94,903

84,413

12%

Gross profit before
non-recurring items

20,745

22,388

(7%)

96,449

84,309

14%

Operating profit

1,579

3,410

(54%)

20,474

14,484

41%

EBITDA

9,713

11,673

(17%)

44,790

38,854

15%

AMG Critical Materials Technologies' fourth quarter 2022 revenue increased by $9 million, or 7%, compared to the same period in 2021. This improvement was driven by higher sales volumes of titanium aluminides and higher prices for chrome metal. Full year 2022 revenue was 19% higher than the prior year and gross profit before non-recurring items for 2022 of $96 million was 14% higher than the $84 million in 2021, due largely to the improved price environment versus the prior year associated with the continued recovery of the aerospace market post pandemic.

During the first half of the year, market disruptions associated with the Russian invasion of Ukraine impacted the chrome metal supply chain, creating a dramatic increase in the price of raw materials and limited availability. To protect against operational interruptions, the Company secured additional raw material volumes at market conditions at fixed prices. In the fourth quarter, the disruptions to the supply chain were alleviated and the prices fell dramatically. This resulted in the company’s chrome margins being negatively impacted in the fourth quarter and an inventory write-down of $1.6 million.

SG&A expenses decreased by 7% in the fourth quarter of 2022 compared to the same period in 2021, due to lower share-based expense in the current quarter associated with a reversal in the prior year.

AMG Critical Materials Technologies’ EBITDA was $10 million during the quarter compared to $12 million in the same period of 2021. The decrease is due to the chrome market dislocation noted above, offset by stronger profitability from our Engineering business. Full year 2022 EBITDA for the segment of $45 million was 15% higher than 2021. This was primarily due to the continued recovery in the aerospace sector in 2022.

AMG Engineering signed $67 million in new orders during the fourth quarter of 2022, driven by strong orders of turbine blade and induction furnaces, representing a 1.28x book to bill ratio. In January 2023, the Company’s strong order intake continued with $44 million in new orders, mainly due to turbine blade coater sales. Order backlog was $220 million as of December 31, 2022, the highest since March 31, 2020.

Financial Review

Tax

AMG recorded an income tax expense of $84 million in 2022, compared to $9 million in 2021. This variance was mainly driven by enhanced operating results in AMG Lithium at its Brazil operation coupled with movements in the Brazilian real. The effects of the Brazilian real caused a $7 million benefit in 2022, compared to a $4 million tax benefit in 2021. Fluctuations in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax positions related to our operations in Brazil.

AMG paid taxes of $42 million in 2022, compared to tax payments of $10 million in 2021. The higher cash payments in 2022 were largely a result of improved operating results.

Exceptional Items

AMG’s fourth quarter and full year 2022 gross profit includes exceptional items, which are not included in the calculation of EBITDA.

A summary of exceptional items included in gross profit in 2022 and 2021 are below:

Exceptional items included in gross profit

 

Q4 ‘22

Q4 ‘21

Change

FY ‘22

FY ‘21

Change

Gross profit

$119,981

$61,797

94%

$409,486

$208,243

97%

Inventory cost adjustment

1,589

N/A

1,589

1,164

37%

Restructuring expense (reversal)

389

(140)

N/A

582

522

11%

Asset impairment (reversal) expense

(990)

153

N/A

10,597

(711)

N/A

Strategic project expense

1,201

1,501

(20%)

5,540

4,045

37%

Others

(506)

N/A

N/A

Gross profit excluding exceptional items

122,170

62,805

95%

427,794

213,263

101%

Energy Costs

Total energy costs were $16 million higher in 2022 versus 2021 due to the increases in gas and electricity costs during the year. The majority of this increase was at our silicon business in Germany, but that business benefited from fully hedged power costs. Other business units benefited from long-term electricity contracts that have no price escalation clauses, and the business units that did experience energy cost increases were able to pass through most of these increased costs to their customers.

SG&A

AMG’s fourth quarter 2022 SG&A expenses were $37 million compared to $40 million in the fourth quarter of 2021, with the decrease due to lower share-based compensation expense associated with a reversal in the prior year.

Full year 2022 SG&A expenses were $148 million, 6% higher than in 2021, with the variance due to increased professional fees associated with strategic projects during the current period, offset by lower share-based compensation expense.

Liquidity

 

December 31, 2022

December 31, 2021

Change

Senior secured debt

$348,622

$371,897

(6%)

Cash & cash equivalents

346,043

337,877

2%

Senior secured net debt

2,579

34,020

(92%)

Other debt

14,959

24,398

(39%)

Net debt excluding municipal bond

17,538

58,418

(70%)

Municipal bond debt

319,244

319,476

—%

Restricted cash

6,920

93,434

(93%)

Net debt

329,862

284,460

16%

AMG ended the year in a $330 million net debt position. This increase was mainly due to the significant investment in growth initiatives during the year, particularly at our Zanesville facility, which utilized the restricted cash associated with the municipal bond. This use of restricted cash was offset by $34 million of debt repayment and higher unrestricted cash.

AMG continued to maintain a strong balance sheet and adequate sources of liquidity during the fourth quarter. As of December 31, 2022, the Company had $346 million in unrestricted cash and cash equivalents and $186 million available on its revolving credit facility. As such, AMG had $532 million of total liquidity as of December 31, 2022.

Net Finance Costs

AMG’s fourth quarter 2022 net finance income was $4 million compared to a cost of $13 million in the fourth quarter of 2021. This variance was mainly driven by foreign exchange gains of $10 million during the quarter primarily due to non-cash intergroup balances.

AMG capitalized $1 million of interest costs in the fourth quarter of 2022 versus $4 million in the same period in 2021, driven by interest associated with the Company’s tax-exempt municipal bond supporting the vanadium expansion in Ohio. This decrease is due to a portion of the municipal bond interest costs which are no longer being capitalized due to the ramp-up of production at our Zanesville facility.

Final Dividend Proposal

AMG intends to declare a dividend of €0.70 per ordinary share over the financial year 2022. The interim dividend of €0.30, paid on August 10, 2022, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.40.

A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 4, 2023.
Profit for the period to adjusted EBITDA reconciliation

 

Q4 ‘22

Q4 ‘21

FY ‘22

FY ‘21

Profit for the period

$62,669

$4,139

$190,771

$13,779

Income tax expense

23,827

5,293

84,097

8,707

Net finance (income) cost

(4,177)

12,644

30,941

33,602

Equity-settled share-based payment transactions

1,414

6,883

5,552

10,206

Restructuring expense (reversal)

389

(140)

582

522

Net contract settlements (1)

971

(45,436)

Inventory cost adjustment

1,589

1,589

1,164

Asset impairment (reversal) expense (1)

(990)

153

10,597

(711)

Environmental provision

143

230

133

11,941

Strategic project expense (2)

5,885

3,769

17,070

12,157

Share of loss of associates

219

1,250

1,053

Others

(1)

(512)

105

571

EBIT

91,719

32,678

297,251

92,991

Depreciation and amortization

12,342

11,207

45,299

43,685

EBITDA

104,061

43,885

342,550

136,676

Notes:
(1)   Associated with the silicon metal shutdown, AMG recorded income from the sale of an existing supply contract which positively impacted operating profit for the year. This income was offset by a settlement with a major customer and an impairment of existing assets.
(2)   The Company is in the initial development and ramp-up phases for several strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, Hybrid Lithium Vanadium Redox Flow Battery System, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.

AMG Advanced Metallurgical Group N.V.

 

 

Consolidated Income Statement

 

 

For the quarter ended December 31

 

 

In thousands of US dollars

2022

2021

 

Unaudited

Unaudited

Continuing operations

 

 

Revenue

390,004

330,360

Cost of sales

(270,023)

(268,563)

Gross profit

119,981

61,797

 

 

 

Selling, general and administrative expenses

(36,579)

(39,501)

 

 

 

Environmental expense

(143)

(230)

Other expenses

(940)

Other income

229

Net other operating expense

(1,083)

(1)

 

 

 

Operating profit

82,319

22,295

 

 

 

Finance income

5,459

1,107

Finance cost

(1,282)

(13,751)

Net finance income (cost)

4,177

(12,644)

 

 

 

Share of loss of associates and joint ventures

(219)

 

 

 

Profit before income tax

86,496

9,432

 

 

 

Income tax expense

(23,827)

(5,293)

 

 

 

Profit for the period

62,669

4,139

 

 

 

Profit attributable to:

 

 

Shareholders of the Company

60,697

5,705

Non-controlling interests

1,972

(1,566)

Profit for the period

62,669

4,139

 

 

 

Earnings per share

 

 

Basic earnings per share

1.90

0.18

Diluted earnings per share

1.85

0.18

 

AMG Advanced Metallurgical Group N.V.

 

 

Consolidated Income Statement

 

 

For the year ended December 31

 

 

In thousands of US dollars

2022

2021

 

Unaudited

 

Continuing operations

 

 

Revenue

1,642,774

1,204,666

Cost of sales

(1,233,288)

(996,423)

Gross profit

409,486

208,243

 

 

 

Selling, general and administrative expenses

(147,963)

(139,576)

 

 

 

Environmental expense

(133)

(11,941)

Other expenses

(14,411)

Other income

60,080

415

Net other operating income (expense)

45,536

(11,526)

 

 

 

Operating profit

307,059

57,141

 

 

 

Finance income

9,061

1,938

Finance cost

(40,002)

(35,540)

Net finance cost

(30,941)

(33,602)

 

 

 

Share of loss of associates and joint ventures

(1,250)

(1,053)

 

 

 

Profit before income tax

274,868

22,486

 

 

 

Income tax expense

(84,097)

(8,707)

 

 

 

Profit for the period

190,771

13,779

 

 

 

Profit attributable to:

 

 

Shareholders of the Company

187,589

13,771

Non-controlling interests

3,182

8

Profit for the period

190,771

13,779

 

 

 

Earnings per share

 

 

Basic earnings per share

5.87

0.44

Diluted earnings per share

5.73

0.44

 

 

 

AMG Advanced Metallurgical Group N.V.

 

 

Consolidated Statement of Financial Position

 

 

 

 

In thousands of US dollars

December 31, 2022 Unaudited

December 31, 2021

Assets

 

 

Property, plant and equipment

797,611

693,624

Goodwill and other intangible assets

41,404

44,684

Derivative financial instruments

33,042

95

Other investments

29,324

29,830

Deferred tax assets

37,181

52,937

Restricted cash

5,875

85,023

Other assets

8,612

8,471

Total non-current assets

953,049

914,664

Inventories

277,311

218,320

Derivative financial instruments

3,516

4,056

Trade and other receivables

162,548

145,435

Other assets

121,834

65,066

Current tax assets

7,289

5,888

Restricted cash

1,045

8,411

Cash and cash equivalents

346,043

337,877

Total current assets

919,586

785,053

Total assets

1,872,635

1,699,717

 

AMG Advanced Metallurgical Group N.V.

 

 

Consolidated Statement of Financial Position

 

(continued)

 

 

 

 

 

In thousands of US dollars

December 31, 2022 Unaudited

December 31, 2021

Equity

 

 

Issued capital

853

853

Share premium

553,715

553,715

Treasury shares

(14,685)

(16,596)

Other reserves

(44,869)

(96,421)

Retained earnings (deficit)

(4,461)

(173,117)

Equity attributable to shareholders of the Company

490,553

268,434

 

 

 

Non-controlling interests

27,296

25,718

Total equity

517,849

294,152

 

 

 

Liabilities

 

 

Loans and borrowings

661,270

675,384

Lease liabilities

44,224

45,692

Employee benefits

117,160

162,628

Provisions

12,361

14,298

Deferred revenue

20,000

22,341

Other liabilities

15,009

11,098

Derivative financial instruments

284

2,064

Deferred tax liabilities

27,269

5,617

Total non-current liabilities

897,577

939,122

Loans and borrowings

15,164

27,341

Lease liabilities

4,710

4,857

Short-term bank debt

6,391

13,046

Deferred revenue

28,277

18,478

Other liabilities

69,917

80,672

Trade and other payables

240,101

252,765

Derivative financial instruments

7,746

6,010

Advance payments from customers

51,054

35,091

Current tax liability

23,548

10,586

Provisions

10,301

17,597

Total current liabilities

457,209

466,443

Total liabilities

1,354,786

1,405,565

Total equity and liabilities

1,872,635

1,699,717

 

AMG Advanced Metallurgical Group N.V.

 

 

Consolidated Statement of Cash Flows

 

 

For the year ended December 31

 

 

In thousands of US dollars

2022

2021

 

Unaudited

 

Cash from operating activities

 

 

Profit for the period

190,771

13,779

Adjustments to reconcile net profit to net cash flows:

 

 

Non-cash:

 

 

Income tax expense

84,097

8,707

Depreciation and amortization

45,299

43,685

Asset impairment expense (reversal)

10,597

(711)

Net finance cost

30,941

33,602

Share of loss of associates and joint ventures

1,250

1,053

Gain on sale or disposal of property, plant and equipment

(592)

(65)

Equity-settled share-based payment transactions

5,552

10,028

Movement in provisions, pensions, and government grants

(11,982)

(10,184)

Working capital and deferred revenue adjustments1

(123,281)

22,747

Cash generated from operating activities

232,652

122,641

Finance costs paid, net

(23,289)

(21,950)

Income tax paid

(41,796)

(9,903)

Net cash from operating activities

167,567

90,788

 

 

 

Cash used in investing activities

 

 

Proceeds from sale of property, plant and equipment

2,538

1,029

Acquisition of property, plant and equipment and intangibles

(174,516)

(162,240)

Acquisitions of subsidiaries

(458)

Investments in associates and joint ventures

(1,250)

(1,000)

Use of restricted cash

86,514

115,485

Interest received on restricted cash

250

39

Capitalized borrowing cost paid

(16,652)

(15,838)

Other

12

30

Net cash used in investing activities

(103,104)

(62,953)

(1) Includes outstanding receivables related to silicon energy credits.

AMG Advanced Metallurgical Group N.V.

 

 

Consolidated Statement of Cash Flows

 

 

(continued)

 

 

For the year ended December 31

 

 

In thousands of US dollars

2022

2021

 

Unaudited

 

Cash (used in) from financing activities

 

 

Proceeds from issuance of debt

82

352,152

Payment of transaction costs related to debt

(7,630)

Repayment of borrowings

(33,863)

(342,781)

Proceeds from issuance of common shares

123,627

Net repurchase of common shares

(1,523)

(2,058)

Dividends paid

(19,885)

(7,598)

Payment of lease liabilities

(5,101)

(5,313)

Advanced contributions

11,000

Contributions by non-controlling interests

667

Net cash (used in) from financing activities

(49,290)

111,066

 

 

 

Net increase in cash and cash equivalents

15,173

138,901

 

 

 

Cash and cash equivalents at January 1

337,877

207,366

Effect of exchange rate fluctuations on cash held

(7,007)

(8,390)

Cash and cash equivalents at December 31

346,043

337,877

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

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

About AMG

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

AMG Clean Energy Materials segment combines AMG’s recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG’s leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG’s mineral processing operations in antimony, graphite, and silicon metal.

With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).

For further information, please contact:
AMG Advanced Metallurgical Group N.V.        +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

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

 

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