AMG beats Q1 profit expectations, boosted by lithium operations (updated)

AMG Critical Materials NV

03/05/2023 17:56

(Adds quote, detail)
       May 3 (Reuters) - Dutch miner and lithium supplier AMG
 AMG.AS  on Wednesday posted better-than-expected first quarter
core profit, helped largely by its Clean Energy Materials
business, which includes its lithium operations.
    Core profit, or earnings before interest, tax, depreciation
and amortization (EBITDA) was $118.1 million, beating the $109.0
million expected in a company-provided poll, and more than
doubling year-on-year.
    "The record results are due to our recent expansion
projects," said CEO Heinz Schimmelbusch, adding the company will
change its name to AMG Critical Materials.
    AMG is expanding its lithium production capacity and
tightening its grip on its supply chain, as it looks to benefit
from growing demand for the key metal used to make electric
vehicle batteries.
    The group on Wednesday confirmed its full-year guidance for
EBITDA to exceed $400 million.
    It said it expected to post EBITDA of at least $650 million
in five years or earlier, due to the lithium market's demand and
supply dynamics.

 (Reporting by Olivier Sorgho;
Editing by Alison Williams and Mark Potter)
 ((Olivier.Sorgho@thomsonreuters.com))