Amg Critical Materials N.v. · EURONEXT:AMG
Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Presentation (December 2022)
29 slides from Amg Critical Materials's investor presentation, December 2022
Slide 1: Accelerating the Energy Transition
ACCELERATING THE ENERGY TRANSITION Investor Presentation | December 2022 Zanesville, Ohio AMG ADVANCED METALLURGICAL GROUP N.V. 1
Slide 2: Cautionary Note
CAUTIONARY NOTE This document contains proprietary information and is being provided solely for information purposes by AMG Advanced Metallurgical Group 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 pu
Slide 3: Table of Contents
TABLE OF CONTENTS AMG Overview 4 AMG Lithium 9 Lithium Industry Overview 19 Lithium Vanadium Battery 27 3
Slide 4: AMG: Consistent EBITDA Growth and Strong Project Execution
AMG: CONSISTENT EBITDA GROWTH AND STRONG PROJECT EXECUTION EBITDA (IN MILLIONS OF US DOLLARS) $102.6 $81.1 $54.8 $43.9 $31.4 $33.1 $22.5 $28.3 $14.1 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Zanesville OH Spent Catalyst Recycling Facility Construction Began: June 2019 Startup: N
Slide 5: AMG Business Segments
AMG BUSINESS SEGMENTS AMG CRITICAL MATERIALS AMG CLEAN ENERGY MATERIALS AMG CRITICAL MINERALS TECHNOLOGIES AMG’s mining and recycling AMG’s conversion and mining AMG’s titanium alloys, vacuum business business systems and services business • Vanadium • Silicon Metal • Titanium Alloys • Mineração (Ta
Slide 6: 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 2020 by the United States Bureau of Labor Statistics reports that the Primary Metal Manufacturing industry’s total recordable case rate
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS OF US DOLLARS) NET INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS (IN MILLIONS OF US DOLLARS) $424.1 $424.8 $403.9 $68.1 $311.9 $330.4 36% $29.1 $29.6 $69M YoY YoY $5.7 ($0.6) Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 EBITDA (IN MILLI
Slide 8: EBITDA by Origin and Destination
EBITDA BY ORIGIN AND DESTINATION YTD 2022 EBITDA CLEAN ENERGY MATERIALS YTD 2022 EBITDA by Origin by Destination Business Unit Location Lithium Brazil Americas Vanadium US 22.3% CRITICAL MINERALS Business Unit Location Americas Antimony France 75.4% Graphite Germany Asia Silicon Germany 63.4% CRITIC
Slide 9: AMG Lithium
AMG LITHIUM 9
Slide 10: AMG Lithium Has a Significant First Mover Advantage in Europe
AMG LITHIUM HAS A SIGNIFICANT FIRST MOVER ADVANTAGE IN EUROPE From mining through to next generation lithium products Upstream - Brazil Downstream - Germany Technical Battery Solid Mibra Mine Spodumene Grade Li Grade Li Electrolytes Precursor Hydroxide Spodumene Expansion Under basic First European
Slide 11: Modular Expansion Plans to Meet Growing Demand
MODULAR EXPANSION PLANS TO MEET GROWING DEMAND 2022 -2023 2024 2025 - 2026 2027 - 2028 Battery-grade Li Hydroxide Battery-grade Li Hydroxide Module 2 Module 4 Battery-grade Li Hydroxide Battery-grade Li Hydroxide BG Lithium Module 3 Module 5 Hydroxide Module 1 20k tons Solid Electrolyte Commercial D
Slide 12: Lithium Concentrate Expansion Overview (Spodumene 1+)
LITHIUM CONCENTRATE EXPANSION OVERVIEW (SPODUMENE 1+) Spodumene Plant Expansion ◼ Capacity increase from 90 ktpa to 130 ktpa ◼ Absence of technical risk ◼ Expected operational improvements Execution Timeline March 2021 May 2022 April 2023 Test work & Front- Construction Start-Up end Loading (“FEL”)
Slide 13: Technical Grade Lithium Precursor Overview
TECHNICAL GRADE LITHIUM PRECURSOR OVERVIEW Technical Grade Lithium Precursor Plant ◼ Basic engineering underway ◼ Target capacity of 16.5 ktpa ◼ Focus on producing an interim technical lithium precursor material Execution Timeline March 2022 Nov. 2023 Dec. 2025 Test work & Detailed Commissioning FEL
Slide 14: AMG Mibra Mine's ESG Commitment
AMG MIBRA MINE’S ESG COMMITMENT • Energy storage materials provides substantial productivity enhancement to renewable energy production • Business plan includes fundamental CO2 reductions per ton Environmental • Recently updated structural review of tailings dams and has satisfied the Church of Engl
Slide 15: AMG Exploration
AMG EXPLORATION AMG is uniquely positioned to help develop and commercialize lithium deposits globally ✓ Operational experience AMG possesses the ✓ De-risking project know-how from Technical development first ore through Expertise construction and ✓ Downstream value chain operations expertise Lithiu
Slide 16: Lithium Hydroxide Upgrader
LITHIUM HYDROXIDE UPGRADER Lithium GmbH Bitterfeld, Germany Groundbreaking ceremony was held on May 11th for the first European lithium refinery, and commissioning for the first module of the battery grade lithium hydroxide upgrader will commence in the third quarter of 2023. 16
Slide 17: Overview of Lithium Upgrading Facility in Germany
OVERVIEW OF LITHIUM UPGRADING FACILITY IN GERMANY ◼ Production of highly-refined, battery-grade Lithium hydroxide ◼ Located in Bitterfeld/Germany in an industrial chemical park ◼ Module 1 with 20,000 MT capacity, further modules up to 100,000 MT ◼ Expected capex of $140 million for module 1, $75 mil
Slide 18: Lithium Hydroxide Offtake Arrangements: 90% of Capacity Under MOU
LITHIUM HYDROXIDE OFFTAKE ARRANGEMENTS: 90% OF CAPACITY CURRENTLY UNDER MOU Existing offtakes/MoUs: 20,000 • AMG has signed a binding supply 2,000 agreement with EcoPro for an 3,000 initial three-year term to deliver a 15,000 minimum of 5,000 tpa of battery- grade lithium hydroxide to EcoPro BM’s ca
Slide 19: Lithium Industry Overview
Battery-grade Hydroxide pilot plant, Hoechst, Germany LITHIUM INDUSTRY OVERVIEW 19
Slide 20: Push Policies Are Creating Tailwinds for Electric Vehicles
PUSH POLICIES ARE CREATING TAILWINDS FOR ELECTRIC VEHICLES… United States United Kingdom Automotive Manufacturers Have Identified Electric Vehicle Up to $7,500 grants for BEV £3,000 for BEVs priced < Targets purchases £50,000 Group 2020 2025 2030 2% 50% 100% 1% na 100% Spain France Up to €6,500 gran
Slide 21: European EV Production Expected to Grow 23% Over the Next Decade
EUROPEAN EV PRODUCTION IS EXPECTED TO GROW 23% OVER THE NEXT DECADE ◼ In 2021 EVs accounted BEV and PHEV Sales by Region (millions) for nearly 1 in 20 passenger car sales (1 in 10 including hybrids) 46.7 CAGR 2017-2035 ◼ The European EV market grew significantly in recent years due to 26% favorable
Slide 22: EU Market to Require Significant Amount of Battery-Grade Lithium Hydroxide
EU MARKET TO REQUIRE SIGNIFICANT AMOUNT OF BATTERY- GRADE LITHIUM HYDROXIDE AMG will be the first European battery-grade lithium hydroxide producer serving the growing EU cathode material market… Estimated 2030 EU Lithium Market Balance (kMT LCE) 600,000 600,000 >300,000 MT annual shortfall 400,000
Slide 23: Battery-Grade Lithium Hydroxide Is the Fastest Growing Lithium Chemical Product
BATTERY-GRADE LITHIUM HYDROXIDE (LIOH) IS THE FASTEST GROWING LITHIUM CHEMICAL PRODUCT 2,400,000 Total Lithium Chemical Demand by Product 2,000,000 BG LiOH growth driven by demand for higher performance, higher BG LiOH 1,600,000 nickel content batteries CAGR: 24.7% T LCE 1,200,000 800,000 400,000 0
Slide 24: Battery-Grade Lithium Chemical Market Expected to Remain Largely Balanced
THE BATTERY-GRADE LITHIUM CHEMICAL MARKET IS EXPECTED TO REMAIN LARGELY BALANCED Battery-grade Lithium Supply / Demand Balance 2,000,000 25% 20% 1,500,000 15% 1,000,000 10% 500,000 5% Long / Short T LCE 0 0% -5% (500,000) AMG Spodumene -10% (1,000,000) pricing based on -15% (1,500,000) battery-grade
Slide 25: AMG Spodumene Contract Price Tied to Spot Price for Lithium Carbonate and Hydroxide
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 26: Lithium Carbonate vs Spodumene Prices
LITHIUM CARBONATE VS SPODUMENE PRICES (ASIAN METAL MARKET SPOT) BG Carbonate BG Carb Qtr Avg Spodumene Spod Qtr Avg $80,000 $6,000 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $72,083 $63,348 $62,827 $5,407 $58,849 Lithium Carbonate $ / MT $60,000 $4,500 Spodumene $ / MT $4,323 $40,000 $3,431 $3,000 $2,404 $28,8
Slide 27: Lithium Vanadium Battery (LIVA)
LITHIUM VANADIUM BATTERY (LIVA) 27
Slide 28: The AMG Lithium & Vanadium Battery (LIVA)
THE AMG LITHIUM & VANADIUM BATTERY (LIVA) 28
Slide 29: Value Chain & Capabilities of AMG Group
VALUE CHAIN & CAPABILITIES OF AMG GROUP Worldwide sourcing of Power standard parts & components Electronic ~/= AMG Group ALD Equipment Software Engineering LIVA AMG TAC V2O5 Software Project Mgmt. Simulation Main Second battery Monitoring Software battery storage Grid apps V-electrolyte VRFB Sourcin
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