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Human Rights Council on the Right to Privacy

OISTE.ORG to Address Virtually the 46

^th

Session of the United Nations Human Rights Council on the Right to Privacy

March 3^rd 2021 at 3 PM CET

  

Privacy is as a basic, fundamental human right

Geneva, February 24, 2021 – The OISTE Foundation, a non-governmental organization, in special consultative status with the Economic and Social Council of the United Nations (ECOSOC), will lead a virtual panel on the human right to privacy during the 46^th Session of the Human Rights Council.

Zoom Registration at: https://us02web.zoom.us/webinar/register/WN_HXWDJD60SnWsYKdPaFHTJg

Privacy is as a basic, fundamental human right. It is also an endangered right. New digital technologies track and scrutinize us all at this age of surveillance capitalism (Zuboff, 2018). The digital economy considers every click, search or like as an asset to be monetized. Our lives, reflected in cyberspace, are plundered for behavioral data for the sake of a system that converts our freedom into profit. We are quietly being domesticated into accepting as normal that decision rights vanish before we even know that there is a decision to make.

A new awareness infused by a human-rights based approach that consider each individual “netizen” as a dignified moral being, worth of respect, is required. Otherwise, our connectivity will continue to offer a perverse amalgam of empowerment inextricably layered with diminishment.

Date & Time	Mar 3rd 03:00 pm CET
Title	OISTE Foundation Webinar; The Human Right to Privacy in the Age of Surveillance Capitalism
Special Keynote by	– Pierre Maudet, Conseiller d’Etat, State of Geneva,
Moderated by:	– Carlos Creus Moreira, Secretary General of OISTE
Speakers	– Navi Pillay, Former UN High Commissioner for Human Rights, OHCHR – Hans-Christian Boos, CEO, Arago – Sébastien Fanti, Swiss lawyer, Notary, and Data Protection Commissioner    of the Swiss Canton of Valais – Estelle Massé, Senior Policy Analyst and Global Data Protection Lead –    Access Now – Alana Tart, Senior digital, technology and privacy lawyer – PMI – Steve Crown, Vice President and Deputy General Counsel, Human Rights –    Microsoft

For these reasons, the Foundation OISTE, – building upon the various resolutions adopted by the UN General Assembly and the Human Rights Council touching on the protection and promotion of the right to privacy in the digital age – has set up a panel to address, inter alia, the following issues:

• Identifying and clarifying principles, standards and best practices regarding the promotion and protection of the human right to privacy
• Reinforcing the principles of non-arbitrariness, lawfulness, legality, necessity and proportionality in communications surveillance by the State.
• Ensuring that profiling, automated decision-making and machine-learning technologies do proceed in accordance to agreed safeguards and do not affect the enjoyment of human rights
• Introducing a gender perspective and ensuring that there exists effective domestic oversight and remedies for the violation of the human right to privacy
• Addressing the issue of personal data management: often individuals do not provide their free, explicit and informed consent to the re-use, sale or multiple re-sales of their personal data
• Addressing the issue of human rights impacts of artificial intelligence, with a particular focus on examples of discrimination and bias

The OISTE Foundation signed The International Principles on the Application of Human Rights to Communications Surveillance right after they were launched at the 24th session of the UN Human Rights Council in Geneva in 2013. OISTE invites other organizations to join: https://necessaryandproportionate.org/

About OISTE FOUNDATION

Founded in Switzerland in 1998, OISTE was created with the objectives of promoting the use and adoption of international standards to secure electronic transactions, expand the use of digital certification and ensure the interoperability of certification authorities’ e-transaction systems. The OISTE Foundation is a not for profit organization based in Geneva, Switzerland, regulated by article 80 et seq. of the Swiss Civil Code. OISTE is an organization in special consultative status with the Economic and Social Council of the United Nations (ECOSOC) and belongs to the Not-for-Profit constituency (NPOC) of the ICANN.

Contact OISTE FOUNDATION

Nicolas Ducor
[email protected]

Coronavirus Update

• As of today, out of over 3,000 employees we have 3 active confirmed coronavirus cases globally. AMG has zero current COVID hospitalization cases. AMG has not experienced any coronavirus related fatalities, and our current cases have not resulted in a facility closure or operational interruption. AMG continues to implement preventive measures such as practicing social distancing, remote working when possible, and restrictions on travel to protect the health and safety of our employees.

Strategic Highlights

• The construction of AMG’s second ferrovanadium plant in Zanesville, Ohio is proceeding as planned. As of December 31, 2020, AMG has committed $206 million in construction and engineering contracts for the project.
• AMG Brazil has entered into an Exclusive Cooperation Agreement (“ECA”) with one of its major customers for lithium concentrates.  The ECA provides for AMG Brazil to supply 200,000 DMT over a 5-year supply term, which will be obtained from an expansion (targeting 40,000 DMT per annum) of AMG Brazil’s existing lithium concentrate plant.  The ECA includes an advanced payment for lithium concentrate which will fund AMG Brazil’s investment in the expansion. 
• Shell & AMG Recycling B.V. signed a memorandum of understanding (MOU) with the Saudi Arabian Oil Company (Saudi Aramco) to explore the feasibility of building a recycling “Supercenter” in the Kingdom of Saudi Arabia.
• AMG published its ESG Strategic Statement which concludes with: “AMG was founded on the principle that CO₂ abatement targets would create increased criticality for specialty materials. This strategic focus is encapsulated in the ECO₂RP products and will continue to drive AMG’s strategy and capital investment program across its three new reporting segments.  Our strategic focus is fully aligned with – and in support of – the EU Taxonomy initiative on sustainability and its climate objectives.”

Financial Highlights

• EBITDA was $22.5 million in the fourth quarter of 2020, in line with $22.8 million in the fourth quarter of 2019. In light of the COVID impacts during the year, it is important to note however, that this is a 59% increase over Q3 2020. COVID-19 had a negative $12 million impact in the fourth quarter of 2020, which is explained in more detail on page 3.
• AMG reduced SG&A by 30% in the fourth quarter of 2020 to $26.1 million, compared to $37.2 million in the fourth quarter of 2019, due to lower personnel costs and ongoing cost reduction initiatives. Full year 2020 SG&A declined by $25.7 million versus 2019 due to austerity measures and reduced variable compensation.
• AMG’s liquidity as of December 31, 2020, was $377 million, with $207 million of unrestricted cash and $170 million of revolving credit availability.
• The total 2020 dividend proposed is €0.20 per ordinary share, including the interim dividend of €0.10, paid on August 13, 2020.

Amsterdam, 24 February


2021


(Regulated Information)

— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported fourth quarter 2020 revenue of $253.5 million, a 6% decrease from $268.6 million in the fourth quarter of 2019. EBITDA for the fourth quarter of 2020 was $22.5 million, in line with the fourth quarter of 2019 of $22.8 million.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “Out of over 3,000 AMG employees at 33 sites in 15 countries, AMG has 3 active confirmed coronavirus cases globally. AMG has zero current COVID hospitalization cases. AMG’s priority continues to be the health and safety of our employees.

“We continued to feel the impact of the coronavirus pandemic in the fourth quarter of 2020 but began to experience selective price stabilization in Critical Materials. These market price improvements accelerated in early 2021, particularly in ferrovanadium and lithium.  AMG Technologies experienced ongoing lower results associated with weakness in the aerospace sector, however, it is important to note that AMG Engineering’s order intake in 2020 exceeded $200 million for the year.

“AMG’s strategic investments are all progressing despite the challenging market environment. The construction of the recycling plant in Zanesville, Ohio, which will essentially double our recycling capacity for refinery residues, is proceeding as planned, utilizing the funds from the municipal bond issue. Shell & AMG Recycling B.V. continues to pursue refinery residue recycling opportunities globally with a focus on the Middle East and China including an MOU with Saudi Aramco to explore the feasibility of building a recycling “Supercenter” in the Kingdom of Saudi Arabia. AMG Brazil is operating at full capacity and the spodumene expansion, known as SP1+, is underway as noted above. AMG Lithium GmbH has invested in a solid-state battery (SSB) pilot plant within its state-of-the-art battery materials laboratory located in Frankfurt, Germany. In addition, the lithium hydroxide upgrader project has commenced in Germany, and AMG’s Supervisory Board approved moving ahead with the detailed engineering as well as the purchase of long lead-time items and the site.”

COVID-19 Effect on AMG’s Business

EBITDA in the fourth quarter of 2020 was in line with the same period in the prior year despite the temporary pandemic-related interruptions to our business. However, we are once again providing a summary of the estimated impact of the pandemic on our operations. Our estimated COVID-19 EBITDA impact is approximately $12 million for the fourth quarter. This figure is an estimate of what management believes the Company’s EBITDA may have been for the quarter if the pandemic had not occurred. It was calculated using on a bottom-up analysis of our business units, including management’s appraisal of the approximate decline in revenues from lower volumes and pricing, as well as related expense implications resulting from the impacts of the pandemic compared to the Company’s financial plan. 

AMG Critical Materials’ pandemic-related impacts continued from the second and third quarters into the fourth, but we saw increased volumes being sold to our customers in five of seven of our business units, and the COVID effects were reduced versus the level in the second and third quarters of 2020. 

AMG Technologies’ pandemic-related impacts continued to be driven by the decreased and postponed volumes from our aerospace customers, but we also experienced difficulty finalizing vacuum furnace orders and servicing our customers with replacement parts due to global travel restrictions. These effects were partially offset by an improved performance from our Heat Treatment Services business, which experienced higher demand as a result of the rapidly recovering automotive sector.

Key Figures

In 000’s US dollars
	Q4 ‘20	Q4 ‘19	Change	FY ‘20	FY ‘19	Change
Revenue	$253,476	$268,563	(6%)	$937,116	$1,188,571	(21%)
Gross profit	28,103	30,422	(8%)	112,653	118,290	(5%)
Gross margin	11.1%	11.3%		12.0%	10.0%
Operating loss	(2,184)	(7,012)	69%	(9,235)	(25,722)	64%
Operating margin	(0.9%)	(2.6%)		(1.0%)	(2.2%)
Net loss attributable to shareholders	(2,839)	(14,239)	80%	(41,692)	(48,283)	14%
EPS – Fully diluted	(0.10)	(0.50)	80%	(1.47)	(1.64)	10%
EBIT (1)	11,059	11,450	(3%)	23,106	79,415	(71%)
EBITDA (2)	22,539	22,772	(1%)	66,767	121,382	(45%)
EBITDA margin	8.9%	8.5%		7.1%	10.2%
Cash from operating activities	11,358	55,517	(80%)	19,619	46,573	(58%)

Notes:

1. EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring, asset impairment, inventory cost adjustments, environmental provisions, exceptional legal expenses, and equity-settled share-based payments and includes foreign currency gains or losses.
2. EBITDA is defined as EBIT adjusted for depreciation and amortization.

Operational Review

AMG Critical Materials

	Q4 ‘20	Q4 ‘19	Change	FY ‘20	FY ‘19	Change
Revenue	$171,396	$170,152	1%	$575,717	$762,482	(24%)
Gross profit	17,758	8,211	116%	56,342	19,343	191%
Gross profit before non-recurring items	21,847	21,653	1%	67,953	110,315	(38%)
Operating profit (loss)	403	(11,594)	N/A	(9,726)	(59,318)	84%
EBITDA	16,425	13,061	26%	41,016	65,401	(37%)

AMG Critical Materials’ revenue in the fourth quarter reflected a continuing weak price environment versus the fourth quarter of 2019.  Revenues increased by $1.2 million, or 1%, to $171.4 million, driven mainly by higher sales volumes of lithium concentrate, aluminum, antimony, graphite and silicon, offset by lower sales volumes of ferrovanadium and lower prices in vanadium, chrome, tantalum and spodumene.

Gross profit before non-recurring items increased by 1% in the fourth quarter due to increased revenue.

SG&A expenses in the fourth quarter of 2020 were $13.4 million, $6.4 million lower than the fourth quarter of 2019, due to lower personnel costs, particularly variable compensation expense, lower professional fees, as well as cost reduction efforts across the business.

The fourth quarter 2020 EBITDA margin was 10%, compared to 8% in the same period in the prior year, due to cost reduction efforts as noted above.

AMG Technologies

	Q4 ‘20	Q4 ‘19	Change	FY ‘20	FY ‘19	Change
Revenue	$82,080	$98,411	(17%)	$361,399	$426,089	(15%)
Gross profit	10,345	22,211	(53%)	56,311	98,947	(43%)
Gross profit before non-  recurring items	13,669	22,209	(38%)	60,500	103,551	(42%)
Operating (loss) profit	(2,587)	4,582	N/A	491	33,596	(99%)
EBITDA	6,114	9,711	(37%)	25,751	55,981	(54%)

AMG Technologies’ fourth quarter 2020 revenue decreased by $16.3 million, or 17%, due to reduced aerospace activity and volume reductions, as well as lower profitability associated with metal price declines for the Titanium Alloys and Coatings business. These declines were offset by higher revenue from heat treatment services and remelting furnaces. Consequently, fourth quarter 2020 gross profit before non-recurring items decreased by $8.5 million, or 38%, to $13.7 million.

SG&A expenses decreased by $4.8 million, or 27%, in the fourth quarter of 2020 compared to the fourth quarter of 2019, due to lower personnel costs, particularly variable compensation expense, lower professional fees, as well as cost reduction efforts across the business.

AMG Technologies’ fourth quarter EBITDA decreased by 37% to $6.1 million from $9.7 million in the fourth quarter of 2019 due to lower profitability related to the challenging economic environment as outlined above.

Order backlog was $198.1 million as of December 31, 2020, a 9% decrease from $217.7 million as of September 30, 2020 and an 11% decrease from $222.6 million as of December 31, 2019. The Company signed $45.5 million in new orders during the fourth quarter of 2020, but order intake and order backlog were reduced by the cancellation of a $14.3 million order. The quarter benefited from strong orders of induction melting and arc remelting furnaces for specialty steel producers. On a full year basis, including the cancellation, the Company signed $208.6 million in new orders, representing a 0.83x book to bill ratio.

Financial Review

Tax

AMG recorded an income tax expense of $11.2 million in 2020 as compared to a benefit of $5.1 million in 2019. In addition to increased profitability in certain jurisdictions, this increased tax expense was mainly driven by a year-over-year increase of $11.7 million in non-cash tax expense due to movements in the Brazilian real. Movements in the Brazilian real exchange rate impact the valuation of the Company’s net deferred tax assets. The devaluation of the real during 2020 resulted in an additional non-cash tax expense of $11.1 million, compared to a benefit of $0.6 million in 2019.

AMG paid taxes of $8.6 million in 2020, compared to tax payments of $24.6 million in 2019. As a result of the year-over-year volatility in income and the timing of cash tax payments, the present cash tax rate is not indicative of the current year performance as payments in the current year are attributable to income from prior years and not 2020. Once earnings have stabilized, we believe that the cash tax rate is the more meaningful metric with regards to AMG’s taxes due to the volatile nature of the company’s deferred tax balances.

Exceptional Items

AMG’s fourth quarter 2020 and full year 2020 gross profit includes exceptional items, which are not included in the calculation of EBITDA.

A summary of exceptional items included in gross profit in 2020 and 2019 are below:

Exceptional items included in gross profit

	Q4 ‘20	Q4 ‘19	Change	FY ‘20	FY ‘19	Change
Gross profit	$28,103	$30,422	(8%)	$112,653	$118,290	(5%)
Inventory cost adjustment	2,160	12,001	(82%)	6,219	87,792	(93%)
Restructuring expense	4,374	2,442	79%	5,700	3,265	75%
Asset impairment expense	566	(1,003)	N/A	664	4,519	(85%)
Strategic project expense	313	–	N/A	3,217	–	N/A
Gross profit excluding exceptional items	35,516	43,862	(19%)	128,453	213,866	(40%)

AMG had a $2.2 million exceptional non-cash expense during the fourth quarter of 2020 as a result of inventory cost adjustments in our Brazilian operations, which has been adjusted in EBITDA. The $4.4 million restructuring expense in the fourth quarter was mainly due to headcount reductions in our AMG Technologies and Chrome operations. The Company is in the ramp-up phase for three significant strategic expansion projects, including AMG Vanadium’s expansion project, the joint venture with Shell, and the lithium expansion in Germany, which incurred project expenses during the quarter but are not yet operational. AMG is adjusting EBITDA for these exceptional charges.

Liquidity

	December 31, 2020	December 31, 2019	Change
Senior secured debt	$364,640	$366,682	(1%)
Cash & equivalents	207,366	226,218	(8%)
Senior secured net debt	157,274	140,464	12%
Other debt	19,876	12,144	64%
Net debt excluding municipal bond	177,150	152,608	16%
Municipal bond debt	319,699	319,911	–
Restricted cash	208,919	309,581	(33%)
Net debt	287,930	162,938	77%

AMG had a net debt position of $287.9 million as of December 31, 2020. This increase was mainly due to the significant investment in growth initiatives during the quarter, especially the vanadium expansion.

In 2020, AMG maintained a strong balance sheet and adequate sources of liquidity. As of December 31, 2020, the Company had $207 million in unrestricted cash and cash equivalents and $170 million available on its revolving credit facility. As such, AMG had $377 million of total liquidity as of December 31, 2020.

Net Finance Costs

AMG’s fourth quarter 2020 net finance costs were $4.9 million compared to $6.1 million in the fourth quarter of 2019. This decline is mainly driven by favorable foreign exchange movements. Additionally, AMG capitalized $3.8 million of interest costs in the fourth quarter of 2020 compared to $2.8 million in the prior year, driven by interest associated with the Company’s new tax-exempt municipal bond supporting the vanadium expansion in Ohio.

SG&A

AMG’s fourth quarter 2020 SG&A expenses were $26.1 million compared to $37.2 million in the fourth quarter of 2019, due to continued cost reduction efforts across the business as detailed earlier.

Full year 2020 SG&A expenses were $117.8 million, a decrease of $25.7 million, or 18%, from the prior year, which includes a non-recurring reversal for share-based compensation expense of $4.1 million related to share-based awards currently not forecasted to meet the threshold to vest. This reversal was excluded from EBITDA. SG&A expenses for 2020 included $18.7 million in professional fees versus $26.6 for 2019, $68.0 million in personnel costs and variable compensation expense compared to $78.0 in 2019. These decreases were partially offset by the Lithium expansion projects in Germany.

Final Dividend Proposed

AMG intends to declare a dividend of €0.20 per ordinary share over the financial year 2020. The interim dividend of €0.10, paid on August 13, 2020, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.10.

A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 6, 2021.

Outlook

We believe that AMG’s results will continue to trend positively, and we expect to exceed $100 million EBITDA in 2021. 

Segmental Realignment

The Company has changed its organizational structure effective January 1, 2021. This change results in three reporting segments: AMG Clean Energy Materials (“CEM”), AMG Critical Minerals (“CMI”), and AMG Critical Materials Technologies (“CMT”). 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 ECO₂RP.

AMG’s pro forma segmental information for AMG Clean Energy Materials, AMG Critical Minerals, and AMG Critical Materials Technologies for the fourth quarter of 2020 is shown below:

AMG Clean Energy Materials
	Q1 ‘20	Q2 ‘20	Q3 ‘20	Q4 ‘20	FY ‘20
Revenue	69,219	53,054	56,396	66,995	245,664
Gross (loss) profit	4,307	1,818	(135)	6,004	11,994
Operating loss	(5,654)	(5,481)	(8,269)	(5,118)	(24,522)
EBITDA	(1,048)	1,279	3,268	7,081	10,580
AMG Critical Minerals
	Q1 ‘20	Q2 ‘20	Q3 ‘20	Q4 ‘20	FY ‘20
Revenue	57,760	47,908	52,167	55,483	213,318
Gross profit	10,289	6,141	8,642	10,557	35,629
Operating profit	4,285	1,194	3,409	5,279	14,167
EBITDA	6,807	3,648	6,562	8,871	25,888

AMG Critical Materials Technologies
	Q1 ‘20	Q2 ‘20	Q3 ‘20	Q4 ‘20	FY ‘20
Revenue	151,311	106,648	89,177	130,998	478,134
Gross profit	28,564	12,582	12,342	11,542	65,030
Operating profit (loss)	9,695	(2,403)	(3,827)	(2,345)	1,120
EBITDA	16,570	2,829	4,313	6,587	30,299

Net loss to EBITDA reconciliation

	Q4 ‘20	Q4 ‘19	FY ‘20	FY ‘19
Loss for the year	($2,613)	($14,083)	($42,460)	($48,586)
Income tax (benefit) expense	(4,950)	938	11,184	(5,119)
Net finance cost*	5,956	5,920	23,524	27,626
Equity-settled share-based payment transactions**	(2,164)	1,422	3,792	5,514
Restructuring expense	4,374	2,442	5,700	3,265
Inventory cost adjustment	2,160	12,001	6,219	87,792
Asset impairment expense	566	(1,003)	664	4,519
Environmental provision	4,287	234	4,342	725
Exceptional legal expense	(35)	3,133	1,353	3,133
Strategic project expense	2,529	–	7,085	–
Share of loss of associates	518	–	947	–
Others	431	446	756	546
EBIT	11,059	11,450	23,106	79,415
Depreciation and amortization	11,480	11,322	43,661	41,967
EBITDA	22,539	22,772	66,767	121,382

*Excludes foreign exchange (gain) loss.
**Amount includes variable compensation expense which is expected to be share-settled in 2021.

During the fourth quarter of 2020, AMG recorded non-recurring environmental expense of $4.3 million, the majority of which was related to the remediation of a closed site in Newfield, New Jersey. This amount offset a $21.7 million reduction to the underlying environmental provision due to significant progress in remediating the site.

AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
For the quarter ended December 31
In thousands of US dollars	2020	2019
	Unaudited
Continuing operations
Revenue	253,476	268,563
Cost of sales	225,373	238,141
Gross profit	28,103	30,422
Selling, general and administrative expenses	26,065	37,209
Environmental expense	4,287	234
Other income, net	(65)	(9)
Net other operating expense	4,222	225
Operating loss	(2,184)	(7,012)
Finance income	(2,311)	(1,662)
Finance cost	7,172	7,795
Net finance cost	4,861	6,133
Share of loss of associates	(518)	–
Loss before income tax	(7,563)	(13,145)
Income tax (benefit) expense	(4,950)	938
Loss for the period	(2,613)	(14,083)
Loss attributable to:
Shareholders of the Company	(2,839)	(14,239)
Non-controlling interests	226	156
Loss for the period	(2,613)	(14,083)
Loss per share
Basic loss per share	(0.10)	(0.50)
Diluted loss per share	(0.10)	(0.50)

AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
For the year ended December 31
In thousands of US dollars	2020	2019
	Unaudited
Continuing operations
Revenue	937,116	1,188,571
Cost of sales	824,463	1,070,281
Gross profit	112,653	118,290
Selling, general and administrative expenses	117,780	143,451
Environmental expense	4,342	725
Other income, net	(234)	(164)
Net other operating expense	4,108	561
Operating loss	(9,235)	(25,722)
Finance income	(4,757)	(4,728)
Finance cost	25,851	32,711
Net finance cost	21,094	27,983
Share of loss of associates	(947)	–
Loss before income tax	(31,276)	(53,705)
Income tax expense (benefit)	11,184	(5,119)
Loss for the year	(42,460)	(48,586)
Loss attributable to:
Shareholders of the Company	(41,692)	(48,283)
Non-controlling interests	(768)	(303)
Loss for the year	(42,460)	(48,586)
Loss per share
Basic loss per share	(1.47)	(1.64)
Diluted loss per share	(1.47)	(1.64)

AMG Advanced Metallurgical Group N.V.
Condensed Statement of Financial Position
In thousands of US dollars	December 31, 2020 Unaudited		December 31, 2019
Assets
Property, plant and equipment	551,926		429,993
Goodwill and other intangible assets	43,207		41,923
Derivative financial instruments	1,894		922
Other investments	27,527		23,565
Deferred tax assets	58,081		60,945
Restricted cash	208,919		309,581
Other assets	8,496		11,072
Total non-current assets	900,050		878,001
Inventories	152,306		204,152
Derivative financial instruments	5,961		2,693
Trade and other receivables	122,369		119,052
Other assets	44,821		33,720
Current tax assets	5,108		7,980
Cash and cash equivalents	207,366		226,218
Assets held for sale	1,005		140
Total current assets	538,936		593,955
Total assets	1,438,986		1,471,956

AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Financial Position
(continued)
In thousands of US dollars	December 31, 2020 Unaudited		December 31, 2019
Equity
Issued capital	831		831
Share premium	489,546		489,546
Treasury shares	(80,165)		(83,880)
Other reserves	(110,593)		(116,358)
Retained earnings (deficit)	(184,139)		(129,626)
Equity attributable to shareholders of the Company	115,480		160,513
Non-controlling interests	25,790		23,893
Total equity	141,270		184,406
Liabilities        Loans and borrowings	673,262		669,497
Lease liabilities	47,092		46,490
Employee benefits	197,158		175,870
Provisions	15,322		28,984
Other liabilities	12,598		3,629
Derivative financial instruments	4,389		4,289
Deferred tax liabilities	5,398		4,300
Total non-current liabilities	955,219		933,059
Loans and borrowings	23,392		21,740
Lease liabilities	4,789		4,227
Short-term bank debt	7,561		7,500
Other liabilities	67,805		61,479
Trade and other payables	164,999		157,108
Derivative financial instruments	10,264		4,037
Advance payments from customers	29,885		57,650
Current tax liability	7,480		18,299
Provisions	26,322		22,451
Total current liabilities	342,497		354,491
Total liabilities	1,297,716		1,287,550
Total equity and liabilities	1,438,986		1,471,956

AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows
For the year ended December 31
In thousands of US dollars	2020	2019
	Unaudited
Cash from operating activities
Loss for the year	(42,460)	(48,586)
Adjustments to reconcile net loss to net cash flows:
Non-cash:
Income tax expense (benefit)	11,184	(5,119)
Depreciation and amortization	43,661	41,967
Asset impairments	664	4,519
Net finance cost	21,094	27,983
Share of loss of associates and joint ventures	947	–
Loss (gain) on sale or disposal of property, plant and equipment	358	(69)
Equity-settled share-based payment transactions	1,429	5,514
Movement in provisions, pensions, and government grants	(121)	(8,053)
Working capital and deferred revenue adjustments	10,829	76,169
Cash generated from operating activities	47,585	94,325
Finance costs paid, net	(19,410)	(23,152)
Income tax paid	(8,556)	(24,600)
Net cash from operating activities	19,619	46,573
Cash used in investing activities
Proceeds from sale of property, plant and equipment	71	421
Acquisition of property, plant and equipment and intangibles	(123,695)	(79,442)
Acquisition of subsidiaries	–	(25,435)
Investments in associates and joint ventures	(1,000)	–
Change in restricted cash	100,662	(307,866)
Interest received on restricted cash	1,120	2,762
Capitalized borrowing cost	(15,150)	(325)
Other	76	6
Net cash used in investing activities	(37,916)	(409,879)

AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows
(continued)
For the year ended December 31
In thousands of US dollars	2020	2019
	Unaudited
Cash (used in) from financing activities
Proceeds from issuance of debt	9,190	325,093
Payment of transaction costs related to the issuance of debt	–	(4,981)
Repayment of borrowings	(4,072)	(3,911)
Proceeds from issuance of common shares	–	2,915
Net repurchase of common shares	(638)	(89,881)
Dividends paid	(9,513)	(16,703)
Payment of lease liabilities	(4,738)	(3,829)
Contributions by non-controlling interests	597	–
Net cash (used in) from financing activities	(9,174)	208,703
Net decrease in cash and cash equivalents	(27,471)	(154,603)
Cash and cash equivalents at January 1	226,218	381,900
Effect of exchange rate fluctuations on cash held	8,619	(1,079)
Cash and cash equivalents at December 31	207,366	226,218

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Clean Energy Materials combines our recycling and mining operations producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. Clean Energy Materials spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies combines our leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals consists of our mineral processing operations in antimony, graphite, and silicon metal.

With approximately 3,100 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).

For further information, please contact:

AMG Advanced Metallurgical Group N.V.         +1 610 975 4979

Michele Fischer

[email protected]

Disclaimer

Certain statements in this press release are not historical facts and are “forward looking.”  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, 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 information that is not historical information.  When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “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 the predictions, forecasts, projections and other forward-looking statements will not be achieved.  These forward-looking statements speak only as of the date of this press release.  AMG expressly disclaims 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.

Attachment

• Fourth Quarter & Full Year 2020 Results PR

TORONTO, Feb. 24, 2021 (GLOBE NEWSWIRE) — Canada’s Provincial and Territorial Federations of Labour are holding a press conference on Thursday February 25 at 9:00 a.m. PT/11:00 a.m. CT/12 p.m. ET., via Zoom, to issue a joint statement demanding paid sick days for every worker in Canada.

No one should have to choose between staying home when they are sick and putting food on the table. That’s why Provincial and Territorial Federations of Labour are united in demanding paid sick days for all workers

Speakers will include:

• Kevin Rebeck, President, Manitoba Federation of Labour
• Patty Coates, President, Ontario Federation of Labour
• Laird Cronk, President, BC Federation of Labour

WHEN: Thursday, February 25, at 9:00 a.m. PT/11:00 a.m. CT/12 p.m. ET

WHERE: Zoom livestream

Media are encouraged to pre-register for Thursday’s press conference on Zoom here: https://zoom.us/webinar/register/WN_lsTtidtOTbC8XNMZUW80TA

For more information, please contact:

Andrew Tod
Communications & Research Director
Manitoba Federation of Labour
[email protected] | 204-391-0063

Melissa Palermo
Director of Communications
Ontario Federation of Labour
[email protected] l 416-894-3456

Denise Moffatt
Director of Political Action & Government Relations
BC Federation of Labour
[email protected] | 778-228-3124