Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — Non-Deal Roadshow (March 2024)
53 slides from Amg Critical Materials's roadshow presentation, March 2024
Slide 1: Critical Materials for a Sustainable Planet
CRITICAL MATERIALS FOR A SUSTAINABLE PLANET ING Roadshow | March 2024 AMG CRITICAL MATERIALS N.V. Lithium Hydroxide Battery-Grade Refinery – Bitterfeld, Germany 1
Slide 2: Cautionary Note
CAUTIONARY NOTE This document contains proprietary information and is being provided solely for information purposes by AMG Critical Materials N.V. (The “Company”) and may not be reproduced in any form or further distributed to any other person or published, in whole or in part, for any purpose, exc
Slide 3: AMG Overview
AMG OVERVIEW AMG Vanadium – Zanesville, Ohio, USA 3
Slide 4: AMG: A Critical Materials Company
AMG: A CRITICAL MATERIALS COMPANY GLOBAL TRENDS CO2 emission reduction, circular economy, population growth, increasing affluence, and energy efficiency DEMAND Innovative new products that promote CO2 reduction, including materials with higher energy density and higher temperature resistance, as wel
Slide 5: AMG Provides Critical Materials to Advance a Less Carbon-Intensive World
AMG PROVIDES CRITICAL MATERIALS AND RELATED PROCESS TECHNOLOGIES TO ADVANCE A LESS CARBON-INTENSIVE WORLD A GLOBAL IMPERATIVE AMG’S ENABLED CO2 EMISSION REDUCTIONS FOR THE 21ST CENTURY (Million MT) AMG: 2023 110.3 ENABLING TECHNOLOGIES 2022 99.4 Products and processes saving CO2 emissions during use
Slide 6: AMG New Business Segments
AMG NEW BUSINESS SEGMENTS AMG LITHIUM AMG VANADIUM AMG TECHNOLOGIES • AMG’s Lithium segment spans • AMG Vanadium is the world’s • AMG Technologies is the the lithium value chain, reducing market leader in recycling established world market leader the CO2 footprint of both vanadium from oil refining
Slide 7: Strong Fundamentals, Adaptive to Global Disruption
STRONG FUNDAMENTALS, ADAPTIVE TO GLOBAL DISRUPTION • In November 2021, AMG entered into a new $350 million 7-year senior secured term loan B facility OPTIMIZED (“term loan”) and a $200 million 5-year senior secured revolving credit facility (“revolver”). The total CAPITAL facility amount of $550 mil
Slide 8: Strategy
STRATEGY AMG’s strategy is to build its critical materials business through industry consolidation, process innovation and product development EXPANSION OF EXISTING PROCESS INNOVATION & INDUSTRY HIGH-GROWTH BUSINESSES PRODUCT DEVELOPMENT CONSOLIDATION Pursue opportunities in Continue to focus on pro
Slide 9: Critical Raw Materials: AMG Presence
CRITICAL RAW MATERIALS: AMG PRESENCE US Critical Materials EU Critical Materials Rhodium Bismuth PGMs AMG has a Zirconium Bauxite unique critical Beryllium Nickel Niobium materials portfolio Fluorspar Scandium Ruthenium comprised of Antimony 9 EU critical Manganese Heavy REE Phosphorus Vanadium mate
Slide 10: AMG Global Footprint
AMG GLOBAL FOOTPRINT Rotherdam Cr U.K. New Castle East Windsor C Si Ti Cr Ti (PA), USA Eng (CT), USA HTS Limbach GERMANY U.K. GERMANY U.S.A. FRANCE Mo V Ni CHINA C Port Huron HTS (MI), USA Sb Suzhou CHINA Grenoble Eng HTS Eng FRANCE SRI Mexico City LANKA HTS MEXICO MOZAMBIQUE BRAZIL C Li Ta Nb LITHI
Slide 11: Health and Safety
HEALTH AND SAFETY LOST TIME INCIDENT RATE TOTAL INCIDENT RATE 2013 1.95 3.30 2014 1.19 2.23 2015 1.12 2.02 2016 1.06 1.68 2017 0.82 1.31 2018 0.63 1.26 2019 0.80 1.46 2020 0.62 1.05 2021 0.39 1.08 2022 0.46 0.95 2023 0.51 0.90 Full year 2023 results demonstrate a 11% increase in lost time rate and a
Slide 12: AMG Lithium
AMG LITHIUM Lithium Hydroxide Battery-Grade Refinery – Bitterfeld, Germany 12
Slide 13: AMG Lithium
AMG LITHIUM • Mine in Brazil, from 90 ktpy to 130 ktpy • Experienced Lithium team AMG Lithium Ground • Commissioning first European 20 ktpy Battery Grade Lithium Hydroxide Base (LiOH BG) refinery in Germany • Further investments in Lithium Modules in Europe, up to 100 ktpy • State-of-the-art Lithium
Slide 14: AMG Lithium Has a Significant First Mover Advantage in Europe
AMG LITHIUM HAS A SIGNIFICANT FIRST MOVER ADVANTAGE IN EUROPE Upstream – Brazil Downstream – Germany Technical Technical Battery Solid Mibra Mine Spodumene Grade Li Grade Li Grade Li Electrolytes Carbonate Hydroxide Hydroxide & Precursors Lithium Expansion Under basic Under pre-basic First European
Slide 15: The Mibra Mine, Brazil
THE MIBRA MINE, BRAZIL 15
Slide 16: AMG Is a Low-Cost Spodumene Producer
AMG IS A LOW-COST SPODUMENE PRODUCER $475/mt YTD 2023 cost per ton delivered to China, net of tantalum, feldspar and tin by-product credits • The Mibra mine is a long-term tantalum concentrate producer and is the largest conflict-free producer of tantalum in the world • Mibra’s tantalum production w
Slide 17: Spodumene Expansion (SP1+)
SPODUMENE EXPANSION (SP1+) • Increase production capacity 45% to 130k mt per year • Focus on process optimization to improve lithium metallurgical recovery • Enhanced robustness to address naturally occurring mine variations • Reduce material handling downtime • The three-week shutdown of the lithiu
Slide 18: Technical Grade Lithium Chemical Plant
TECHNICAL GRADE LITHIUM CHEMICAL PLANT Preliminary Estimates • Investment: $300M • Basic Engineering / FEL 2 completed • Capacity: 16.5k mt Technical Grade Lithium Carbonate per annum • Delivered cost to Germany less than $10,000 /mt; assuming spodumene at cost for conversion in Brazil • TG Lithium
Slide 19: AMG Brazil's Mibra Mine Is a Leader in Sustainability Practices
AMG BRAZIL’S MIBRA MINE IS A LEADER IN SUSTAINABILITY PRACTICES Lost Time Rate and Recordable Rate Across all Brazil sites, Lost Time Rate of 0.00* and Recordable Rate of 0.25* compare favorably to Bureau of Labor Statistics Industry Benchmarks Contribution to a Sustainable Word In 2021, AMG Brazil
Slide 20: Showcasing AMG Brazil's Local Community
SHOWCASING AMG BRAZIL’S LOCAL COMMUNITY Local culture, building a relationship of trust and mutual respect, and hiring locally are AMG priorities • More than 70% of employees in Brazil operations are local hires • The Young Apprentice Program, a partnership with SENAI, Nacional Service of Industrial
Slide 21: Lithium Hydroxide Battery-Grade Refinery, Bitterfeld, Germany
LITHIUM HYDROXIDE BATTERY-GRADE REFINERY BITTERFELD, GERMANY Production of highly- refined, battery-grade Lithium hydroxide Module 1 with 20,000 MT/yr capacity, further modules up to 100,000 MT/yr in total Located in Bitterfeld, Germany: access to all required energies and infrastructure First Produ
Slide 22: Module 1: Lithium Hydroxide Offtake
MODULE 1: LITHIUM HYDROXIDE OFFTAKE Existing offtakes at runrate 2025 20,000 • AMG has signed a binding supply 2,000 agreement with Korean EcoPro for an 3,000 initial three-year term to deliver a 15,000 binding 5,000 MT/yr plus an optional 5,000 MT/yr to EcoPro BM’s CAM- 5,000 facility in Debrecen-H
Slide 23: Indicative Margin Development to a Fully Backward Integrated Lithium Company
INDICATIVE MARGIN DEVELOPMENT TO A FULLY BACKWARD INTEGRATED LITHIUM COMPANY Technical Grade Purchase: Cost Margin Represents the margin of the Bitterfeld plant assuming the open market purchase of technical grade hydroxide. Tolling Brazil Spodumene: Represents the margin available to $/MT Bitterfel
Slide 24: Big Investments on New Supply Is Required to Meet Demand
BIG INVESTMENTS ON NEW SUPPLY IS REQUIRED TO MEET DEMAND • There is no significant oversupply to be expected in this decade, especially not in the next five years. The surpluses and deficits are marginal and should not lead to low prices automatically. • In 2023 the supply increase was driven by bro
Slide 25: LiOH Cost and Price Analysis
LIOH COST AND PRICE ANALYSIS New LiOH Converter: Price Model to LiOH BG 35 30 25 LiOH Eq. USD/kg 20 15 10 5 - Existing Brine (LC New Brine (LC Existing Spodumene (LC New Spodumene to New Spodumene (LC New Lep. (Non- Integrated) Integrated) Integrated) China Integrated) Integrated) Operational Cost M
Slide 26: Why Europe? EU Requires Large Volumes Lithium Hydroxide BG
WHY EUROPE? EU REQUIRES LARGE VOLUMES LITHIUM HYDROXIDE BG Estimated 2030 EU Lithium Market Balance (k MT LCE)* Total Demand 800,000 >700,000 MT 600,000 annual shortfall 400,000 761,000 200,000 425,000 Recycling Existing & Announced EU Li Projects 0 Demand Demand Supply EV Cathode Source: AMG Lithiu
Slide 27: Game Changer: AMG Multi-Plant Concept
GAME CHANGER: AMG MULTI-PLANT CONCEPT AMG’S MULTI-PLANT CONCEPT 27
Slide 28: AMG Lithium Downstream Growth Strategy
AMG LITHIUM DOWNSTREAM GROWTH STRATEGY Lithium hydroxide / carbonate Lithium hydroxide Lithium hydroxide Technical Grade Feed Battery Grade Production Battery Grade Consumers Diversified sources Modular plant concept Targeting customers producing in for up to 100,000 tpa of LiOH Europe AMG module 1
Slide 29: AMG's Resource Development Strategy
AMG’S RESOURCE DEVELOPMENT STRATEGY AMG Resource Development as a Strategic Partner Exploration, Mining and Spodumene Concentrate know-how AMG is engaging in resource projects to Engineering / Project Management grow the Lithium story in Germany Long-Term Offtake contracts (with or without KfW) AMG
Slide 30: Lagoa: AMG Brazil Signs MOU for Lithium Concentrate Production
LAGOA: AMG BRAZIL SIGNS MOU FOR DEVELOPMENT OF LITHIUM CONCENTRATE PRODUCTION • Located in Northern Portugal, next to the Savannah Lithium Project • AMG signed an MoU with Grupo Lagoa to concentrate lithium minerals Lagoa to Spodumene Concentrate • Location: Portugal. • The partnership intends to co
Slide 31: Zinnwald Lithium: AMG's 25% Shareholding
ZINNWALD LITHIUM: AMG’S 25% SHAREHOLDING • In March 2023, AMG became a 25% shareholder of Zinnwald and is supporting the Zinnwald Board to accelerate the development of its Zinnwald lithium project in Eastern Germany • Location: Germany. • Production: • Zinnwald’s integrated operation planned to pro
Slide 32: AMG's Supply Chain Routes & CO2 Footprint
AMG’S SUPPLY CHAIN ROUTES & CO2 FOOTPRINT Transitionary: Tolling in China Transport Conversion Transport Refining to Spodumene BR to CN to LiOH TG CN to DE LiOH BG Brazil China Germany ➢ AMG’s global warming potential: 16.3 tons CO2 per ton of LiOH BG Source: Life Cycle Assessment of AMG finished in
Slide 33: AMG Lithium Forward Integration in the Value Chain
AMG LITHIUM FORWARD INTEGRATION IN THE VALUE CHAIN Cathode Active Material Lithium Lithium Solid All-Solid-State Automotive Hydroxide Sulfide Electrolyte Batteries OEMs Production site Forward integration in Bitterfeld Anode Active Material 33
Slide 34: Next Generation Automotive Battery Technology: All-Solid-State Batteries
NEXT GENERATION AUTOMOTIVE BATTERY TECHNOLOGY: ALL-SOLID-STATE BATTERIES (ASSB) Current collector Application & Market: Solid electrolytes • All-Solid-State batteries (ASSB) are Anode next step in automotive battery technology Separator • Energy density of ASSBs significantly increased compared to s
Slide 35: All-Solid-State Batteries: Market Penetration and Solid Electrolyte Market
NEXT GENERATION AUTOMOTIVE BATTERY TECHNOLOGY: ALL-SOLID-STATE BATTERIES (ASSB) Sources: SolidPower (2023); Avicenne (2021); Roland Berger (2022); HSBC (2021) Automotive battery demand Solid electrolyte market 6,000 250,000 14% Conservative Case Conservative Solid electrolyte market [MT] 5,000 12% B
Slide 36: Value Creation: From Mine to Battery Components
VALUE CREATION: FROM MINE TO BATTERY COMPONENTS FORWARD INTEGRATION Lithium Raw Material Lithium Hydroxide Lithium Sulfide Solid Electrolyte Battery Cell AMG-owned Lithium Lithium Hydroxide Process Component Target customers: resource in Brazil: “Battery Grade” development and development
Slide 37: Global Customer Activities
GLOBAL CUSTOMER ACTIVITIES Current Status: Projects with customers in: • Europe (3x): development projects & evaluation • USA (1x): qualification • Japan (4x): qualification & evaluation projects • Korea (3x): sampling / evaluation Our position: • AMG Lithium is technology enabler • Position as deve
Slide 38: All-Solid-State Battery Activities – A Global Leader
ALL-SOLID-STATE BATTERY ACTIVITIES – A GLOBAL LEADER Advanced Technology & Processing: • High performance materials with a broad variety of modifications • Flexible process technology to accommodate customized solutions Decades of experience of the technical and commercial teams: • Team members with
Slide 39: Appendix
APPENDIX LiVa Power Management Systems GmbH – Frankfurt, Germany 39
Slide 40: AMG Spodumene Contract Price Is Directly Tied to Spot Price
AMG SPODUMENE CONTRACT PRICE IS DIRECTLY TIED TO SPOT PRICE FOR LITHIUM CARBONATE AND HYDROXIDE AMG Spodumene Contract Components Component Average Index Spot Price1: I (Lithium Carbonate + Lithium Hydroxide) / 2 Component Total Cost = II Minimum Spodumene Price + Conversion Cost AMG Spodumene Price
Slide 41: Mibra Resource – 2021
MIBRA RESOURCE – 2021 Category Ore (Mt) Li2O Grade Li2O (mt) LCE (mt) Measured 2.186 0.94% 20,237 50,046 Indicated 15.304 1.13% 171,330 423,698 Measured & Indicated 17.490 1.10% 191,566 473,744 Inferred 3.744 1.12% 41,914 103,654 Resource Category Measured Indicated Inferred 41
Slide 42: Full Year Financial Highlights
FULL YEAR FINANCIAL HIGHLIGHTS ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) OPERATING CASH FLOW (IN MILLIONS OF US DOLLARS) $342.6 $350.5 $223.0 $167.6 Highest Highest in AMG $90.8 in AMG $136.7 history history FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 CAPITAL EXPENDITURES (IN MILLIONS OF US DO
Slide 43: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS OF US DOLLARS) NET INCOME ATTRIBUTABLE TO SHAREHOLDERS (IN MILLIONS OF US DOLLARS) $450.6 $439.3 $60.7 $56.2 $390.0 $368.7 $367.2 $42.8 6% $58.5M YoY YoY $0.2 $2.2 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 ADJUSTED EBITD
Slide 44: AMG Clean Energy Materials Financial Highlights
AMG CLEAN ENERGY MATERIALS FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (IN MILLIONS OF US DOLLARS) $219.1 $208.5 $109.0 $176.1 $96.0 $106.1 $157.6 $96.0 $140.3 $81.6 $80.3 Revenue Gross $55.9 decreased profit $39.2 10% vs. decreased Q4 ‘22 46.3% 49.7% 46.0
Slide 45: AMG Critical Minerals Financial Highlights
AMG CRITICAL MINERALS FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (LOSS) (IN MILLIONS OF US DOLLARS) $69.2 $19.0 $62.9 $57.3 $54.9 $52.6 Revenue Q4 ’23 decreased sequential $14.0 vs. Q4 ‘22 27.5% decrease due largely due $7.8 to graphite to lower $7.3 $6.9
Slide 46: AMG Critical Materials Technologies Financial Highlights
AMG CRITICAL MATERIALS TECHNOLOGIES FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (IN MILLIONS OF US DOLLARS) $168.6 $173.6 $175.8 $154.7 $25.6 $144.7 $23.6 $23.7 $19.4 $20.1 Q4 ‘23 Adjusted gross profit EBITDA decreased $13.4 $13.6 increased sequentially du
Slide 47: Key Corporate Income Statement Items
KEY CORPORATE INCOME STATEMENT ITEMS SG&A EXPENSES (IN MILLIONS OF US DOLLARS) NET FINANCE COSTS (INCOME) (IN MILLIONS OF US DOLLARS) $49.4 $45.6 $9.3 $40.4 $42.8 $36.6 $6.6 $7.3 $21.5 $16.6 $13.3 $15.5 $11.9 SG&A Variance $7.6 increased $7.2 $7.5 $7.1 driven by lower $7.0 25% vs. capitalization Q4
Slide 48: Cash Flow and Working Capital
CASH FLOW AND WORKING CAPITAL OPERATING CASH FLOW (IN MILLIONS OF US DOLLARS) NET DEBT (IN MILLIONS OF US DOLLARS) $93.4 $329.9 $320.5 $322.8 $310.6 $57.0 $60.0 $44.5 $12.5M $7.1M $24.9 YoY $279.9 YoY Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 ANNUALIZED ROCE WORKING CAPIT
Slide 49: Quarterly Revenue Drivers
QUARTERLY REVENUE DRIVERS CLEAN ENERGY MATERIALS SEGMENT RESULTS KEY DRIVERS Q4 2023 Q4 2022 Price Volume Vanadium Revenue $157.6 $176.1 Spodumene Gross Profit $35.1 $81.6 Tantalum CRITICAL MINERALS SEGMENT RESULTS KEY DRIVERS Q4 2023 Q4 2022 Price Volume Revenue Graphite $54.9 $69.2 Silicon Gross (
Slide 50: Critical Materials — Average Quarterly Market Prices
CRITICAL MATERIALS — AVERAGE QUARTERLY MARKET PRICES Q4 Q4 FEB 14, 2024 Q4 ‘23 VS. Q4 ‘22 SPOT VS. Q4 ‘23 MATERIALS 2022 2023 SPOT % CHANGE % CHANGE Ferrovanadium ($/lb) $19.48 $14.35 $12.75 (26%) (11%) CRU Molybdenum ($/lb) $22.07 $18.57 $19.95 (16%) 7% S&P Global Platts Nickel ($/MT) $25,279 $17,2
Slide 51: Critical Materials — Full Year and Current Spot Prices
CRITICAL MATERIALS — FULL YEAR AND CURRENT SPOT PRICES AVG AVG FEB 14, 2024 AVG ‘23 VS. AVG SPOT VS. AVG MATERIALS 2022 2023 SPOT ‘22 % CHANGE ‘23 % CHANGE Ferrovanadium ($/lb) $23.89 $17.05 $12.75 (29%) (25%) CRU Molybdenum ($/lb) $18.91 $24.03 $19.95 27% (17%) S&P Global Platts Nickel ($/MT) $25,9
Slide 52: Profit for the Period to Adjusted EBITDA Reconciliation
PROFIT FOR THE PERIOD TO ADJUSTED EBITDA RECONCILIATION (000’s USD) Q4 2023 Q4 2022 FY 2023 FY 2022 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 transac
Slide 53: Everything that will be recycled.
LIVA BATTERY LITHIUM HYDROXIDE – BITTERFELD, GERMANY LITHIUM LAB This announcement appears as a matter of record. ENGINEERING – HANAU, GERMANY AMG’s LAW: “Everything that can be recycled will be recycled.” MELTSHOP – ZANESVILLE, OHIO AMG Critical Materials N.V. amg-nv.com VANADIUM, MOLYBDENUM AND NI
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