The following is a summary of the AMG Critical Materials N.V. (AMVMF) Q1 2024 Earnings Call Transcript:
Financial Performance:
AMG Critical Materials N.V. reported a Q1 2024 revenue of $358 million, marking a 21% decrease due to a global decline in lithium and vanadium prices.
The company achieved an adjusted EBITDA of $31 million, down from $118 million in Q1 2023. This major drop was notably due to plummeting metal prices, especially the 76% drop in lithium prices.
For Q1 2024, AMG recorded a net loss of $16 million, a significant shift from the $56 million net income in Q1 2023.
The significant drop in revenue from Lithium ($42 million) was due to a 76% decrease in lithium prices. On the other hand, AMG Vanadium reported a 15% reduction in revenue to $165 million due to lower vanadium and chrome metal sales prices.
AMG finished Q1 2024 with a net debt of $381 million.
Business Progress:
AMG is progressing well with its lithium expansion projects, with the Brazilian plant expansion from 90,000 tons to 130,000 tons set to reach full capacity in Q4.
The first 20,000-ton module of AMG's lithium hydroxide refinery in Bitterfeld, Germany, remains on schedule.
AMG is furthering its vanadium global satellite roasting strategy with the acquisition of TTI technology.
Subsidiary NewMOX SAS has been established in France to cater to the nuclear fuel market.
AMG Engineering, in Q1 2024, procured $82 million in new orders, signifying strong demand for remelting and turbine blade coating systems.
With plans to become a low-cost, high-quality, and eco-conscious producer of its products, AMG aims to sustain strong cash flow and profitability, regardless of the cyclical low prices.
AMG estimates the 2024 adjusted EBITDA to be approximately $130 million and anticipates achieving an EBITDA of $500 million or more in the next five years or sooner.
More details: AMG CRITICAL MATERIALS N.V. IR
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