Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AMG Critical Materials NV (AMVMF, Financial) reported a strong EBITDA of $168 million for the full year 2024, despite low lithium and vanadium prices.
- AMG Technologies delivered an exceptional performance with an adjusted full-year EBITDA of $68 million, more than double that of 2023.
- The company secured a record-breaking $380 million in orders for AMG Engineering in 2024, with an order backlog of $374 million.
- The new vanadium plant in Zanesville, Ohio, and the expansion of the lithium operation in Brazil have been successfully completed, enhancing production capabilities.
- AMG Critical Materials NV (AMVMF) increased its adjusted EBITDA outlook for 2025 from $130 million to $150 million or more, indicating confidence in future performance.
Negative Points
- Lithium and vanadium prices dropped significantly, with lithium prices down 65% and vanadium prices down 23%, impacting revenue.
- Q4 2024 revenues for AMG Lithium decreased by 35% compared to the prior year, primarily due to a 44% decline in lithium market prices.
- Adjusted lithium EBITDA for Q4 2024 was $6 million, down 79% from Q4 2023, reflecting the impact of declining lithium prices.
- AMG Vanadium's revenue for the quarter decreased by 10% compared to Q4 2023, mainly due to lower volumes of ferro vanadium.
- The increase in electricity prices forced AMG Silicon to cease operations in the first quarter of 2025, indicating potential operational challenges.
Q & A Highlights
Q: Can you quantify the absolute amount of the 45X credit on vanadium's EBITDA in Q4, and specify whether there is a retroactive element in this amount?
A: The IRS decided to include raw materials in the calculation of total costs, which is 10% of total costs. We are guiding to assume that $20 million of lower costs is going forward in our numbers. β Jackson Dunkel, CFO
Q: Is the increased benefit from the IRS ruling driving part of the guidance uplift from $130 million to $150 million for 2025?
A: That was already taken into account in November. We weren't certain of the total quantum, but we knew it would be approximately $20 million. β Jackson Dunkel, CFO
Q: Can you clarify your market position in the US market for vanadium? Are you the sole US-based domestic producer?
A: Yes, we are the sole producer of ferrovanadium in the United States, which is a net importer. This gives us a very interesting competitive position, and if tariffs occur, they will benefit us. β Dr. Heinz Schimmelbusch, CEO
Q: Can you provide an update on the commissioning process and qualification process for the Bitterfeld lithium project?
A: The qualification process is a traditional, very disciplined sequence, and we are in that sequence with no indication that we will not reach our target. The commissioning is a step process, and everything is on plan. β Dr. Heinz Schimmelbusch, CEO
Q: What is your message to reassure investors on the profitability of Bitterfeld in the current low price environment?
A: The profitability of a refinery depends on the spread between input and output materials. We are benefiting from low-cost distressed feed from other refineries, which might benefit us. β Dr. Heinz Schimmelbusch, CEO
Q: What price assumption has changed versus November that impacted the 2025 guidance, particularly for antimony?
A: Antimony is becoming more of a core business, and we are in favor of this market. The guidance upgrade is due to broad performance improvements across various sectors, not just antimony. β Dr. Heinz Schimmelbusch, CEO
Q: How much contribution from Bitterfeld is included in your outlook?
A: Bitterfeld is not expected to contribute significantly in the near term. β Dr. Heinz Schimmelbusch, CEO
Q: Can you elaborate on the sustainability of the Chrome business?
A: Chrome is a very steady and profitable business, tied to the aerospace market. We are planning to implement production in the United States, which would be the first such production there. β Dr. Heinz Schimmelbusch, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
