AMG Critical Materials N.V.

Good day, and welcome to the AMG Q1 2021 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Fisher. Please go ahead, ma'am.

Welcome to AMG's first quarter 2021 earnings call. Joining me on this call are Dr. Hein Schimmelbusch, the Chairman of the Management Board and Chief Executive Officer, Mr. Jackson Dunkel, the Chief Financial Officer, and Mr. Eric Jackson, the Chief Operating Officer. AMG's first quarter 2021 earnings press release issued earlier today is on AMG's website. Today's call will begin with a review of the first quarter 2021 business highlights by Dr. Schimelbusch. Mr. Dunkel will comment on AMG's financial results, and Mr. Jackson will discuss operations. At the completion of Mr. Jackson's remarks, Dr. Schimelbusch will comment on strategy and outlook. We will then open the call to take your questions. Before I pass the call to Dr. Schimelbusch, I would like to comment on forward-looking statements. This conference call could contain forward-looking statements about AMG Advanced Metallurgical Group. Forward-looking statements are not historical facts but may include statements concerning AMG's plans, expectations, future revenues or performance, financing needs, plans and intentions relating to acquisitions, AMG's competitive strengths and weaknesses, reserves, financial position, and future operations and development, AMG's business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates, and other similar or different information that is not historical information. When used in this conference call, the words expect, believe, anticipate, plan, may, will, should, and similar expressions and the negatives thereof are intended to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that any predictions, forecasts, or similar projections contained by such forward-looking statements will not be achieved. These forward-looking statements speak only as the date of this conference call. AMG expressly declaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in AMG's expectations with regard thereto or any change in events, conditions, or circumstances on which any forward-looking statement is based. I will now pass the floor to Dr. Schimmelbusch, AMG's Chairman of the Management Board and Chief Executive Officer.

Thank you, Michelle. AMG's highest priority is the health and safety of our employees. Out of over 3,000 AMG employees at 33 sites in 15 countries, AMG has nine active confirmed coronavirus cases globally. As previously announced, AMG has adopted a new segmental structure for 2021, which will provide investors increase transparency into our business and enable them to track the strategic differentiation more accurately within the portfolio of our activities. We now report three segments, clean energy material, critical minerals, and critical materials technologies. Each of these segments address similar markets, apply similar business models, and each segment has its own set of peers. Most importantly, each segment has products which enable CO2 reduction, and each segment is targeting growth in its contribution to the so-called enabled CO2 reduction portfolio, or ECORP. As such, the first quarter press release and our discussion of the first quarter earnings will be in the context of this segmental alignment. All three of AMG's segments performed well in the first quarter. The AMG clean energy materials and AMG critical mineral segments have recovered from the pandemic more quickly than anticipated. These segments outperformed the same period in the prior year despite the comparative prior period occurring before the major economic implications of the global pandemic. Both demands and prices for many of our key product offerings for these segments continue to improve. AMG Critical Materials Technologies is still experiencing the effects of the downturn in the aerospace industry as a result of the pandemic, which is reflected in the financial results compared to the same period in the prior year. However, the segment displayed significant resilience over the past year. Our diversification in product offerings have allowed for the segment to remain EBITDA positive even during the most severe period of the pandemic. Additionally, the segment has delivered remarkable sequential recovery from the second quarter of 2020 forward with EBITDA increasing 47% on average per quarter over that period. Despite these considerable gains, There continues to be substantial opportunity for the segment's continued growth in profitability as the aerospace market regains its footing and begins recovery. Last year, we communicated that we believed that the second quarter 2020 would be the pandemic low, and our financial results have proven that to be true, as our EBTA has improved sequentially each quarter since then. Based on the realization of our strategic project, the anticipated recovery of the aerospace industry, and the strengthening global demand for critical materials, especially for products which enable CO2 reduction, we expect that trend to continue. AMG's strategic projects have all advanced during the quarter. Our major vanadium recycling expansion in Sainsville, Ohio is continuing on time and on budget. All major contracts for this project have now been finalized and we are proceeding to project completion in less than one year. Our lithium plant in Brazil is fully operational and exceeded name plate design capacity in the first quarter of 2021. Additionally, preliminary engineering for the expansion of this plant, known as SP1+, spodumene 1+, is underway. Our lithium hydroxide upgrader project in Germany commands detailed engineering as well as the purchase of long lead items and purchased a site. Our pilot plant for solid state battery materials is operating on a laboratory scale and multiple patent applications are in process. We also made progress in our comprehensive strategy to advance our CO2 reduction activities. AMG has progressed its methodology to achieve verified carbon unit, VCU, credits. AMG's proposed vera carbon standard for processing metal waste has passed through public comment and is currently being reviewed by an appropriate third-party verification body. Finally, in April 21, AMG issued 3.1 million new shares, generating 119 million of net proceeds and increasing liquidity to approximately $500 million. With this equity race, in combination with cash on hand and strong projected cash flow from operations, AMG believes it can fully fund its current strategic projects while maintaining strong balance sheet and liquidity positions. I would now like to pass the floor to Jackson Dunkel, AMG's Chief Financial Officer. Jackson?