AMG sees record lithium production in Q4 despite 'interruptions' at Brazil plant

AMG Critical Materials NV

04/05/2023 09:38

May 4 (Reuters) - Dutch miner and lithium supplier AMG
 AMG.AS  on Thursday flagged expected interruptions in
production at its mine in Brazil, but said this would be offset
by record production in the fourth quarter. 
    "There will be an interruption of production of... 2-3 weeks
in Q3 when we switch ... from the traditional flowsheet to the
new flowsheet in the operation of spodumene production in
Brazil," CEO Heinz Schimmelbusch said on a call with analysts.
    The company processes spodumene, a mineral and source of
lithium, at its Mira Mine in Brazil.
    Schimmelbusch added that the expected interruption will be
overcompensated by overall "substantial" production increases
this year.
    "Both lithium and tantalum production will be higher in Q4
as ever before," he said.
    AMG is expanding its lithium production capacity as it looks
to benefit from growing demand for the key metal used to make
electric vehicle batteries. 
    Citing lithium demand and supply dynamics, the company on
Wednesday raised its mid-term core profit (EBITDA) guidance, now
expecting at least $650 million in five years or earlier against
at least $500 million previously, as it posted forecast-beating
first quarter results.
    The company's shares were up about 4.5% as of 0830 GMT, with
Berenberg labelling the results "decent" in a pre-market note to
clients. 
    AMG's CEO also said on Thursday that the company is
"moderately positive" that lithium prices, which surged last
year but have since dropped off, will return to "somewhat higher
levels".

 (Reporting by Olivier Sorgho; Editing by Susan Fenton)
 ((Olivier.Sorgho@thomsonreuters.com))