"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)
