AMG rises on surprisingly strong core profit, order intake

AMG Critical Materials NV

01/08/2024 09:11

** Shares in AMG Critical Materials  AMG.AS  rise 9.3% to
17.11 euros
    ** Stock down after the Dutch co published results with
stronger-than-expected earnings before interest, taxes,
depreciation, amortisation (EBITDA), and order intake, despite
weak lithium prices
    ** Shares on track for their best day in over 1-1/2 years 
    ** "Adjusted EBITDA of $39 mln was clearly ahead of our
estimate of $29 mln," analyst Frank Claassen of Degroof Petercam
says in a note
    ** Order intake for its engineering division also came
strong, at 90 millions instead of the 70 millions the broker
expected
    ** Degroof Petercam, however, warned of weaknesses in
lithium due to sluggish electric vehicle (EV) sales pushing
continuously weak prices as supply outgrows demand
    ** "Note that most of the anticipated EBITDA jump for next
year should come from lithium expansion projects (Brazil and
Bitterfeld)," the broker says, adding that therefore the lithium
price is an important swing factor 
    

 (Reporting by Nathan Vifflin)
 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))