AMG Critical Materials N.V.

Hello, and welcome to the AMG Q1 2024 earnings call. At this time, all parties are in a listen-only mode. Later, you will have an opportunity to ask questions. To ask a question, press star 1 on your phone keypad. If you'd like to remove yourself from the queue, press star 2. Please note that this call is being recorded, and I will be standing by should you need any assistance. I would now like to turn the call over to Michelle Fisher, Senior Vice President of Communications. Please begin.

Welcome to AMG's first quarter 2024 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 2024 earnings press release issued yesterday is on AMG's website. Today's call will begin with a review of the first quarter 2024 business highlights by Dr. Schimmelbusch, 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 expressly refer you to our statement on forward-looking statements and the meaning thereof, as we have used at all previous occasions and we will use at this earnings call. and which explanatory statement has been published as part of our financial presentation and on our website, all in connection with the earnings call. I will now pass the floor to Dr. Schimmelbusch, AMG's Chairman of the Management Board and Chief Executive Officer.

Thank you, Michelle. Market prices for all products in our portfolio weakened during Q124 compared to the same period last year. The decrease in adjusted EBITDA compared to Q1-23 was largely driven by the global decline in lithium and vanadium prices. The average quarterly prices of lithium carbonate and ferrovanadium, which are the material prices that impact our financial results more than any others, decreased 76% and 33% respectively. compared to the average Q123 pricing. However, Q124 adjusted EBITDA of 31 million is on track to meet our guidance for the year. Our lithium expansions remain on schedule. In Brazil, the expansion of our lithium concentrate plant from 90,000 tons per annum to 130,000 tons is progressing as planned. and we expect to reach full nameplate capacity in Q4 this year. In Bitterfeld, Germany, our lithium hydroxide refinery's first 20,000 ton module is on schedule, both in its advanced commissioning and product qualification process. We plan to ship production batches to clients in Q3 2024. Our low-cost position allows us to endure the current market conditions and prosper considerably at more normalized price levels. AMG Vanadium continues to execute its global satellite roasting strategy through the implementation of our recently acquired TTI technology. The Vanadium Electrolyte plant of AMG Titanium in Nuremberg is in the final stages of completion. We expect to have nameplate capacity available by the second half of this year as part of our vertical integration to leave our batteries. Last month, we formed Numox SAS in France to service the nuclear fuel market. Numox is a subsidiary of ALD Vacuum Technologies GmbH, which is based in Hanau, Germany. ALD, our engineering subsidiary focused on vacuum furnace technology, includes sintering furnace systems enabling the production of commercial nuclear fuel from plutonium and depleted uranium, named MOX. ALD's MOX technology has been deployed in Germany, United States, France, Belgium, and the United Kingdom, and recently ALD has been delivering such systems. to China. AMG LIWA is engaged in the execution of several battery projects to optimize the energy management of industrial plants and incorporate renewable energy sources. In June 24, we will celebrate the opening of a 4.5 MWh energy storage system shifting and solar energy for a major industry client. The system enables 80% self-sufficiency and is also used for peak shaving, process heating, and cooling. EV changing and grid services. I will now pass the floor to Jackson Dunkel, AMG's Chief Financial Officer. Jackson.