Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — Q3 2024 Earnings Presentation
30 slides from Amg Critical Materials's earnings presentation, Nov 8, 2024
Slide 1: The Energy of Nature - Investor Presentation Q3 2024
THE ENERGY OF NATURE Investor Presentation | Third 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 on Schedule: The expansion of the lithium concentrate plant in Brazil remains on track, and we expect to produce at full 130,000-ton annualized capacity by the end of the fourth quarter of 2024. Strategic Developments: • As part of the vertical integration into LIV
Slide 5: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS OF US DOLLARS) ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) $71.1 $368.7 $367.2 $358.2 $364.3 $356.0 $53.8 $39.5 $40.3 3% $30.8 25% YoY YoY Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 NET INCOME (LOSS) ATTRIBUTABLE TO KEY H
Slide 6: Quarterly Revenue Drivers
QUARTERLY REVENUE DRIVERS LITHIUM SEGMENT RESULTS KEY DRIVERS Q3 2024 Q3 2023 Price Volume Revenue $48.6 $62.3 Spodumene Gross Profit ($0.8) $26.8 Tantalum VANADIUM SEGMENT RESULTS KEY DRIVERS Price Volume Q3 2024 Q3 2023 Vanadium Revenue $151.0 $174.4 Titanium Alloys Gross Profit $11.3 $17.2 Chrome
Slide 7: Financial Performance, Leverage & Valuation Dashboard
FINANCIAL PERFORMANCE, LEVERAGE & VALUATION DASHBOARD • AMG has invested >$650 million in capital METRIC Q3 2024 FY 2023 expenditures since 2020 for its lithium and Return on Assets -1.7% 5.2% vanadium expansion projects Return on Equity -6.2% 16.9% • In Q2 2024, AMG Return on Capital Employed 7.4%
Slide 8: AMG Lithium Financial Highlights
AMG LITHIUM FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (LOSS) (IN MILLIONS OF US DOLLARS) $82.1 $26.8 $62.3 $20.6 $48.6 $41.6 $38.3 Gross Revenue profit $30.8 decreased $29.6 $5.3 decreased 22% vs. $3.8 $28 million $10.2 Q3 ‘23 $5.8 $1.7 vs. Q3 ‘23 Q3 '23
Slide 9: AMG Vanadium Financial Highlights
AMG VANADIUM FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (IN MILLIONS OF US DOLLARS) $174.4 $165.1 $168.0 $19.8 $161.7 $151.0 $17.2 $17.6 $16.2 $29.5 Revenue Gross $20.0 decreased $11.3 profit $15.1 $14.4 13% vs. decreased $10.8 11.8% Q3 ‘23 9.9% 10.0% 10.
Slide 10: AMG Technologies Financial Highlights
AMG TECHNOLOGIES FINANCIAL HIGHLIGHTS REVENUE & ADJUSTED EBITDA (IN MILLIONS OF US DOLLARS) GROSS PROFIT (IN MILLIONS OF US DOLLARS) $158.0 $156.4 $35.6 $151.4 $31.8 $131.9 $123.5 $19.3 $17.8 $24.3 Adjusted $22.9 Gross EBITDA $18.4 profit $10.9 $10.6 more than 22.8% increased $9.1 20.1% doubled 17.3
Slide 11: 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) $47.4 $14.5 $45.6 $44.7 $45.0 $42.8 $12.6 $10.6 $10.9 $11.9 $10.2 $9.3 $7.5 $7.8 $12.8 $13.8 $13.8 $13.9 SG&A $13.5 increased $5 million 16% $21.6 vs. Q3 ‘23 YoY $19.
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) $44.7 $490.1 $453.1 $381.4 $24.9 $320.5 $322.8 $170M $27M YoY YoY ($1.8) ($9.3) ($14.9) Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 ANNUAL
Slide 13: Outlook
OUTLOOK • AMG is targeting $125 million of capital expenditures for 2024, dropping to $100 million in 2025. CAPITAL • AMG is approaching the end of a period of significant EXPENDITURES capital intensity that positions us for strong profitability as market prices improve. • We expect our adjusted EBI
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS AMG LIVA’s Hybrid Energy Storage System, on site at Wipotec GmbH, Germany 14
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS AMG is effectively progressing in its strategic expansions and joint ventures, maintaining strong momentum across its lithium and vanadium operations while advancing key projects aimed at enhancing global resource recovery and market reach. LITHIUM VANADIUM PROJECT STRATEGIC J
Slide 16: Health and Safety Focus
HEALTH AND SAFETY FOCUS Safety Indicators AMG compares itself to the industry average for Primary Metal Manufacturing (NAICS 331). The most recent data provided in 2022 by the United States Bureau of Labor Statistics reports that the Primary Metal Manufacturing industry’s total recordable case rate
Slide 17: Appendix
APPENDIX AMG Mibra Mine – Brazil 17
Slide 18: AMG Provides Critical Materials to Advance a Less Carbon-Intensive World
AMG PROVIDES CRITICAL MATERIALS AND RELATED PROCESS TECHNOLOGIES TO ADVANCE A LESS CARBON-INTENSIVE WORLD A GLOBAL IMPERATIVE AMG’S ENABLED CO2 EMISSION REDUCTIONS FOR THE 21ST CENTURY (Million MT) AMG: 2023 110.3 ENABLING TECHNOLOGIES 2022 99.4 Products and processes saving CO2 emissions during use
Slide 19: Critical Materials — Average Quarterly Market Prices
CRITICAL MATERIALS — AVERAGE QUARTERLY MARKET PRICES Q3 Q3 OCT 30, 2024 Q3 ‘24 VS. Q3 ‘23 SPOT VS. Q3 ‘24 MATERIALS 2023 2024 SPOT % CHANGE % CHANGE Ferrovanadium ($/lb) $16.31 $12.88 $13.88 (21%) 8% CRU Molybdenum ($/lb) $23.79 $21.74 $21.92 (9%) 1% S&P Global Platts Nickel ($/MT) $20,334 $16,255 $
Slide 20: Critical Materials — Full Year and Current Spot Prices
CRITICAL MATERIALS — FULL YEAR AND CURRENT SPOT PRICES AVG AVG OCT 30, 2024 AVG ‘23 VS. AVG SPOT VS. AVG MATERIALS 2022 2023 SPOT ‘22 % CHANGE ‘23 % CHANGE Ferrovanadium ($/lb) $23.89 $17.05 $13.88 (29%) (19%) CRU Molybdenum ($/lb) $18.91 $24.03 $21.92 27% (9%) S&P Global Platts Nickel ($/MT) $25,99
Slide 21: (Loss) Profit for the Period to Adjusted EBITDA Reconciliation
(LOSS) PROFIT FOR THE PERIOD TO ADJUSTED EBITDA RECONCILIATION (000’s USD) Q3 2024 Q3 2023 (Loss) profit for the period ($11,708) $1,002 Income tax expense 1,676 12,565 Net finance cost 7,813 9,295 Equity-settled share-based payment transactions 1,524 1,392 Restructuring expense 102 2,745 Silicon’s
Slide 22: Appendix: Lithium Market Update
APPENDIX: LITHIUM MARKET UPDATE Lithium Hydroxide battery-grade refinery - Bitterfeld, Germany 22
Slide 23: NEV Sales Q1-Q3 YoY Growth +22%, Europe Flat
NEV SALES Q1-Q3 YOY GROWTH +22%, EUROPE FLAT Sources: IEA. Licence: CC BY 4.0. Quarterly electric car sales by region, 2021-2024 | Rho Motion 23
Slide 24: EV Market Development 2020–2024: China
EV MARKET DEVELOPMENT 2020–2024: CHINA New Electric Vehicle NEV / BEV / PHEV New Electric Vehicle Sales in China (incl. market penetration (incl. Exports) Exports) 10,000 NEV 140 50% 120 40% 100 30% 80 60 20% 40 10% 20 0% - Apr Apr Apr Apr Apr Oct Oct Oct Oct Oct Jan Jan Jan Jul Jul Jan Jul Jul Jan
Slide 25: Battery Market Development 2024 – China (GWh)
BATTERY MARKET DEVELOPMENT 2024 – CHINA (GWH) Battery Production China per Quarter (GWh) Battery Sold + Exported China per Quarter (Gwh) 350 350 43% YTD YoY +48% 300 300 63% YTD YoY +56% 250 250 200 200 150 150 100 100 50 50 - 0 Qrtl1 Qrtl2 Qrtl3 Qrtl4 Qrtl1 Qrtl2 Qrtl3 Qrtl4 2022 2023 2024 2022 202
Slide 26: Prices in 2024: Export Prices vs. Spot Indices
PRICES IN 2024: EXPORT PRICES VS. SPOT INDICES Export Statistics Price US$/kg FOB China vs. Fastmarkets CIF Asia Spot Price 60 50 LiOH BG Export Price FOB (China) to Korea US$/kg 40 30 LiOH BG Export Price FOB (China) to Japan US$/kg 20 10 LiOH BG, Fastmarkets spot price CIF China, Japan & - Korea,
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 40 140 new projects need to come online (not 120 supported by current Number of projects prices). 100 • By 2030, 20 to 30 80 Operational projects
Slide 28: AMG View: Supply of Lithium Equivalents
AMG VIEW: SUPPLY OF LITHIUM EQUIVALENTS 3,000 2,722 2,464 2,500 2,203 1,951 '000 Mt LCE 2,000 1,678 1,371 1,500 1,103 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 $30,000 This production would lose $25,000 money in 2025 at $10k/mt LCE >50% of total production $20,000 $/mt LCE $15,000 Spot Price $10,000 $5,000 $0 - 500 1,000 Kt LCE Source: Benchmark Minerals Lithium Forecast Q3-2024. 29
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 — Q3 2024 Earnings Presentation on 6ix