Advanced Metallurgical Group (AMG) up 8% on raised guidance
By Jenni Reid
09:18, 13 December 2021
Dutch specialist materials marker Advanced Metallurgical Group (AMG) got a stock price boost on Monday morning after increasing its earnings guidance for 2022.
AMG was up 8.2% to €27.90 at 09:40 CET on the Euronext Amsterdam, putting it up 8.58% in the year to date.
The company hiked its guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) from above $150m to between $175m and $200m.
It said this was due to “improved market conditions in lithium as well as favorable conditions throughout our portfolio”.
Lithium prices have been rising late this year amid market shortages. Its value is supported by the growing electric vehicle market, which requires battery-grade lithium.
The company announced that it would unite its Brazilian mining and processing plants and German hydroxide project under one corporate entity, AMG Lithium.
It said that this would further increase the long-term value of its lithium activities.
In an October press release, AMG reported revenue up 58% to $311.9m, with EBITDA more than doubling to $33.1m in third quarter results.