In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
AMG Critical Materials NV (AMVMF) achieved a strong EBITDA of $50 million in Q1 2025, nearly double compared to the same period last year.
-
The company reported positive cash flow from operating activities of $9 million, a significant improvement from the $15 million cash used in the previous year.
-
AMG's technologies segment experienced its highest order backlog in history, reaching $460 million.
-
The Bitterfeld refinery successfully produced battery-grade lithium hydroxide, marking a significant milestone in their lithium operations.
-
AMG's strategic investments in lithium operations in Brazil and Portugal position the company as a low-cost producer with strong growth potential in the lithium market.
Negative Points
-
Q1 2025 revenues for AMG's lithium segment decreased by 23% due to a 27% decline in lithium prices and a 22% decrease in lithium concentrate sales volumes.
-
The vanadium segment experienced a 7% revenue decrease, primarily due to lower volumes of ferrovanadium and titanium alloys.
-
Despite strong performance in some areas, AMG's return on capital metrics were impacted by over $650 million invested in lithium and vanadium expansion projects over the last four years.
-
AMG's silicon metal production faced temporary halts, affecting profitability and excluding it from adjusted EBITDA during abnormal operations.
-
The vanadium segment's profitability was negatively impacted by startup costs of a new vanadium electrolyte plant and lower sales volumes.
Q & A Highlights
Q: On the Antimony business, given that it is a conversion business, how long can you still benefit from the current rally in antimony prices? A: (Unidentified_6) In today's very short market, we are able to command significantly higher margins. We have no indication that prices will change in the near term, but predicting beyond a quarter or two is difficult.
Q: Regarding the Bitterfeld refinery, you're now shipping the first commercial batches. Does that mean you expect a positive EBITDA contribution for 2025? A: (Unidentified_3) The qualification process is ongoing, and while we are optimistic, it is too early to confirm a positive EBITDA contribution for 2025.
Q: On the long-term guidance, are you moving away from building further modules at Bitterfeld? A: (Unidentified_3) We are not moving away and expect a second module to be built, which will impact the last year of the five-year guidance.