The following is a summary of the AMG Critical Materials N.V. (AMVMF) Q4 2023 Earnings Call Transcript:
Financial Performance:
AMG ended Q4 2023 with a 6% decrease in revenue of $367 million. It reported full-year adjusted EBITDA of $350 million, exceeding guidance of more than $320 million.
The operating cash flow for 2023 was $223 million, and free cash flow was $38 million.
SG&A expenses grew to $46 million, and net finance income reached $2 million in Q4 2023.
Net debt was reduced to $323 million from the previous year, with $345 million in cash equivalents.
Despite a severe drop in lithium carbonate prices, Q4 2023 EBITDA was at $71 million.
Despite decrease in revenues in AMG Clean Energy Materials unit and AMG Critical Minerals, the company managed a higher annual adjusted EBITDA due to higher lithium concentrate prices.
Business Progress:
Plant expansion plans are in motion with the existing lithium concentrate factory in Brazil set to expand from 90,000 tons to 130,000 tons, and will operate at full capacity by Q4 2024.
The lithium hydroxide refinery in Germany will begin the production qualification process in Q3 2024.
AMG is taking strides in vanadium energy storage systems, with the construction of the vanadium electrolyte plant in progress and the acquisition of Vacuum Redox Flow Battery activities from J.M. VOITH SE & CO. KG.
AMG Silicon is planning to operate two out of the four furnaces from March 2024 through the end of the year.
Despite the headcount reduction by approximately 200 due to ongoing cost reduction and efficiency programs, the hiring will offset this to aid expansion in Germany and Brazil and the growth of AMG Engineering.
AMG Engineering achieved a record high of $350 million in new orders for 2023, with a year-end order backlog of $295 million.
More details: AMG CRITICAL MATERIALS N.V. IR
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