Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — Q4 2024 Earnings Presentation
30 slides from Amg Critical Materials's earnings presentation, Feb 28, 2025
Slide 1: The Energy of Nature - Investor Presentation Q4 2024
THE ENERGY OF NATURE Investor Presentation | Fourth Quarter 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: Table of Contents
TABLE OF CONTENTS Growth Strategy Snapshot 4 Financial Performance 5 Operational Highlights 14 Appendix 17 Appendix: Lithium Market Update 22 AMG Vanadium – Zanesville, Ohio, USA 3
Slide 4: Growth Strategy Snapshot
GROWTH STRATEGY SNAPSHOT Expansion Completed: The expansion of the lithium concentrate plant in Brazil from 90,000 tons to 130,000 tons per year is complete. AMG is one of the lowest-cost lithium concentrate mines in the world, and we plan to maintain this competitive advantage. Strategic Developmen
Slide 5: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS OF US DOLLARS) ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) $71.1 $367.2 $358.2 $364.3 $356.0 $361.4 $57.5 $39.5 $40.3 2% $30.8 19% YoY YoY Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 NET INCOME (LOSS) ATTRIBUTABLE TO KEY H
Slide 6: Quarterly Revenue Drivers
QUARTERLY REVENUE DRIVERS LITHIUM SEGMENT RESULTS KEY DRIVERS Q4 2024 Q4 2023 Price Volume Revenue $53.1 $82.1 Spodumene Adjusted Gross Profit $8.4 $34.9 Tantalum VANADIUM SEGMENT RESULTS KEY DRIVERS Price Volume Q4 2024 Q4 2023 Vanadium Revenue $145.5 $161.7 Titanium Alloys Adjusted Gross Profit $3
Slide 7: Financial Performance, Leverage & Valuation Dashboard
FINANCIAL PERFORMANCE, LEVERAGE & VALUATION DASHBOARD • AMG has invested >$650 million in capital METRIC FY 2024 FY 2023 expenditures since 2020 for its lithium and Return on Assets -1.3% 5.2% vanadium expansion projects Return on Equity -4.7% 16.9% • In Q2 2024, AMG Return on Capital Employed 9.1%
Slide 8: AMG Lithium Financial Highlights
AMG LITHIUM FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) ADJUSTED GROSS PROFIT (IN MILLIONS OF US DOLLARS) $82.1 $34.9 $53.1 $48.6 $41.6 Revenue Adjusted $38.3 decreased gross profit $30.8 35% vs. decreased Q4 ‘23 42.5% $12.9 76% vs. $5.8 $10.2 $6.4 $8.4 $8.4 Q4 ‘23 $1.
Slide 9: AMG Vanadium Financial Highlights
AMG VANADIUM FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) ADJUSTED GROSS PROFIT (IN MILLIONS OF US DOLLARS) $161.7 $165.1 $168.0 $36.7 $151.0 $145.5 $31.2 $29.5 $24.9 $24.8 EBITDA $19.7 25.2% Adjusted $20.0 increased gross profit $14.4 6% vs. $15.9 increased $10.8 15.4%
Slide 10: AMG Technologies Financial Highlights
AMG TECHNOLOGIES FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) ADJUSTED GROSS PROFIT (IN MILLIONS OF US DOLLARS) $158.0 $156.4 $162.8 $34.9 $35.2 $151.4 $32.2 $123.5 $19.3 $19.9 $17.8 $24.7 $24.9 Adjusted Adjusted EBITDA gross profit $10.9 $10.6 increased 22.3% 20.0% 20.
Slide 11: Key Corporate Income Statement Items
KEY CORPORATE INCOME STATEMENT ITEMS SG&A EXPENSES (IN MILLIONS OF US DOLLARS) NET FINANCE (INCOME) COSTS (IN MILLIONS OF US DOLLARS) $47.4 $46.5 $14.5 $45.6 $44.7 $45.0 $12.9 $12.6 $10.6 $10.9 $11.9 $11.4 $7.5 $7.8 $12.8 $13.8 $13.8 $13.9 $14.4 SG&A Net finance increased costs 2% vs. increased Q4 ‘
Slide 12: Cash Flow and Working Capital
CASH FLOW AND WORKING CAPITAL CASH FROM (USED IN) OPERATING ACTIVITIES (IN MILLIONS OF US DOLLARS) NET DEBT (IN MILLIONS OF US DOLLARS) $63.5 $490.1 $453.1 $468.1 $44.7 $381.4 $322.8 $145M $19M YoY YoY ($1.8) ($9.3) ($14.9) Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 ANNUAL
Slide 13: Outlook
OUTLOOK • AMG is targeting $75 to $100 million of capital expenditures in 2025. CAPITAL • AMG is approaching the end of a period of significant capital EXPENDITURES intensity that positions us for strong profitability as market prices improve. • We expect our adjusted EBITDA to exceed $150 million i
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS AMG LIVA’s Hybrid Energy Storage System, on site at Wipotec GmbH, Germany 14
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS AMG is effectively progressing in its strategic expansions and joint ventures, maintaining strong momentum across its lithium and vanadium operations while advancing key projects aimed at enhancing global resource recovery and market reach. LITHIUM VANADIUM PROJECT STRATEGIC J
Slide 16: Health and Safety Focus
HEALTH AND SAFETY FOCUS Safety Indicators AMG compares itself to the industry average for Primary Metal Manufacturing (NAICS 331). The most recent data provided in 2023 by the United States Bureau of Labor Statistics reports that the Primary Metal Manufacturing industry’s total recordable case rate
Slide 17: Appendix
APPENDIX AMG Mibra Mine – Brazil 17
Slide 18: AMG Provides Critical Materials to Advance a Less Carbon-Intensive World
AMG PROVIDES CRITICAL MATERIALS AND RELATED PROCESS TECHNOLOGIES TO ADVANCE A LESS CARBON-INTENSIVE WORLD A GLOBAL IMPERATIVE AMG’S ENABLED CO2 EMISSION REDUCTIONS FOR THE 21ST CENTURY (Million MT) AMG: 2024 113.6 ENABLING TECHNOLOGIES 2023 110.3 Products and processes saving CO2 emissions during us
Slide 19: Critical Materials — Average Quarterly Market Prices
CRITICAL MATERIALS — AVERAGE QUARTERLY MARKET PRICES Q4 Q4 FEB 19, 2025 Q4 ‘24 VS. Q4 ‘23 SPOT VS. Q4 ‘24 MATERIALS 2023 2024 SPOT % CHANGE % CHANGE Ferrovanadium ($/lb) $14.35 $13.75 $14.75 (4%) 7% CRU Molybdenum ($/lb) $18.57 $21.69 $20.55 17% (5%) S&P Global Platts Nickel ($/MT) $17,241 $16,034 $
Slide 20: Critical Materials — Full Year and Current Spot Prices
CRITICAL MATERIALS — FULL YEAR AND CURRENT SPOT PRICES AVG AVG FEB 19, 2025 AVG ‘24 VS. AVG SPOT VS. AVG MATERIALS 2023 2024 SPOT ‘23 % CHANGE ‘24 % CHANGE Ferrovanadium ($/lb) $17.05 $13.13 $14.75 (23%) 12% CRU Molybdenum ($/lb) $24.03 $21.30 $20.55 (11%) (4%) S&P Global Platts Nickel ($/MT) $21,46
Slide 21: Profit (Loss) to Adjusted EBITDA Reconciliation
PROFIT (LOSS) FOR THE PERIOD TO ADJUSTED EBITDA RECONCILIATION (000’s USD) Q4 2024 Q4 2023 FY 2024 FY 2023 Profit (loss) for the period $10,549 $1,266 ($25,786) $102,288 Income tax expense 7,905 19,958 23,409 95,002 Net finance cost (income) 12,952 (2,455) 42,835 20,739 Equity-settled share-based pa
Slide 22: Appendix: Lithium Market Update
APPENDIX: LITHIUM MARKET UPDATE Lithium Hydroxide battery-grade refinery - Bitterfeld, Germany 22
Slide 23: Global NEV Sales YoY Growth +25%, Europe Flat
GLOBAL NEV SALES YOY GROWTH +25%, EUROPE FLAT Sources: IEA. License: CC BY 4.0. Quarterly electric car sales by region, 2021-2024 | Rho Motion 23
Slide 24: EV Market Development 2020–2024: China
EV MARKET DEVELOPMENT 2020–2024: CHINA New Electric Vehicle NEV / BEV / PHEV New Electric Vehicle Sales in China (incl. market penetration (incl. Exports) Exports) 10,000 NEV 50% 180 160 40% 140 120 30% 100 80 20% 60 10% 40 20 0% - Sep Sep Sep Sep Sep May May Nov May Nov May Nov Nov May Nov Jul Jul
Slide 25: Battery Market Development 2024 – China
BATTERY MARKET DEVELOPMENT 2024 – CHINA Battery Production China per Quarter (GWh) Battery Sold to Market (incl. exports) per Quarter (GWh) 400 400 46% 54% 350 350 YTD YoY +47% YTD YoY +55% 300 300 250 250 200 200 150 150 100 100 50 50 - 0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 2022 2023 2024 2022
Slide 26: Prices in 2024: Export Prices vs. Spot Indices
PRICES IN 2024: EXPORT PRICES VS. SPOT INDICES Export Statistics Price US$/kg FOB China vs. Fastmarkets CIF Asia Spot Price 40 LiOH BG Export Price FOB 30 (China) to Korea US$/kg 20 LiOH BG Export Price FOB (China) to Japan US$/kg 10 LiOH BG, Fastmarkets spot price CIF China, Japan & - Korea, $/kg E
Slide 27: Supply View: Number of Projects Needed to Come Online
SUPPLY VIEW: NUMBER OF PROJECTS NEEDED TO COME ONLINE TO FULFILL DEMAND Number of projects to fulfill demand (1 project = 20 kt LCE) 160 • By 2030, 30 to 40 new projects need to 140 come online (not supported by current 120 prices). Number of projects 100 • By 2030, 30 to 40 80 projects can be Opera
Slide 28: AMG View: Supply of Lithium Equivalents
AMG VIEW: SUPPLY OF LITHIUM EQUIVALENTS 3,000 2,728 2,469 2,500 2,207 1,957 2,000 1,679 '000 Mt LCE 1,386 1,500 1,127 1,000 500 - 2024 2025 2026 2027 2028 2029 2030 Benchmark Supply AMG Supply View Benchmark Demand 250 150 50 '000 Mt LCE -50 -150 -250 -350 2024 2025 2026 2027 2028 2029 2030 Benchmar
Slide 29: Lithium Market Medium Term: 2025 Production Cost Curve
LITHIUM MARKET MEDIUM TERM 2025 Lithium Production Cost Curve This production would lose money in 2025 at $10k/mt LCE $/mt LCE Spot Price C3 cost include OPEX, depreciation/amortization, sustaining cost royalties, transportation, others 29 Source: Benchmark Minerals Lithium Forecast Q4-2024.
Slide 30: Everything that will be recycled
LITHIUM HYDROXIDE – BITTERFELD, GERMANY LIVA BATTERY LITHIUM LAB MINAS GERAIS – BRAZIL LITHIUM TAILINGS 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 Critical Materials — Q4 2024 Earnings Presentation on 6ix