AMG subsidiary Timminco provides update on solar grade silicon
customers and operations and announce proposed financing and new
president and chief operating officer
Amsterdam, 20 April 2009 --- AMG Advanced Metallurgical Group N.V.'s
("AMG," EURONEXT AMSTERDAM: "AMG") 50.7% owned subsidiary, Timminco
Limited ("Timminco" or the "Company"; TSX: TIM), announced today an
update on its on-going discussions with solar grade silicon
customers. These discussions have focused on alternatives to the
existing contractual commitments, in the context of maintaining
long-term relationships with customers in light of the challenging
economic environment and market conditions affecting the solar
industry.
In the course of these negotiations, some of the Company's solar
grade silicon customers have asserted that their contracts have been
terminated due to non-compliance. We are in active discussions with
each of these customers with respect to their positions and the terms
of future relationships, including quality, quantity and pricing for
solar grade silicon. These customers have paid deposits, which were
non-interest bearing pre-payments to be credited against future
deliveries of solar grade silicon under the contracts. As described
in more detail in the Company's financial statements and management's
discussion and analysis, in the event of an early termination or
completion of a supply contract without full utilization of the
deposit amount, any remaining balance on the deposit is to be repaid
to the customer within a specified time period.
Timminco also announced an update on its solar grade silicon
production operations. For the first quarter of 2009, the Company
shipped 131 metric tons (mt) of solar grade silicon. The average
selling price for such shipments was $58 per kg, resulting in gross
revenue of $7.6 million for this product line in the quarter.
Timminco is pursuing discussions with its controlling shareholder,
AMG, regarding it leading a potential equity offering for aggregate
gross proceeds of $15.0 million. Such offering is expected to be by
way of a private placement, with AMG subscribing for a minimum of
50%, and up to 100%, of the common shares that may be issued. Such
offering would be subject to AMG's supervisory board approval,
execution of definitive documents and receipt of all necessary
regulatory approvals, including approval of the Toronto Stock
Exchange. Clarus Securities Inc. has been appointed to represent the
Company as the sole agent for this offering.
Timminco further announced the promotion of Mr. John Fenger,
President - Light Metals, as the new President and Chief Operating
Officer of Timminco. Most recently, Mr. Fenger was responsible for
the restructuring of Timminco's magnesium business. Mr. Fenger spent
most of his career at Elkem AS where he had most recently been
Corporate Vice President and General Manager of that company's
Foundry Market Division. In that position and as Senior Vice
President of Elkem's Materials Division, Mr. Fenger had full
responsibility for its silicon business as well as other metals
businesses throughout the world. Mr. Fenger has had extensive
experience in the solar industry as a co-founder and a Director of
Renewable Energy Corporation, Norway (REC). Mr. Fenger has also
served with Deloitte & Touche LLP as Director of International
Business Consulting and with Allied Resource Corporation.
Dr. Heinz C. Schimmelbusch, Chief Executive Officer of Timminco,
stated: "Mr. Fenger's performance in restructuring Timminco's
magnesium business, formerly our primary operating division,
exhibited his strong managerial skills and operating experience. He
will significantly increase the depth of our management team."
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the common shares in the United
States. The common shares have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any other state securities laws and may not be
offered or sold in the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
About AMG
AMG, incorporated in the Netherlands, is a global leader in the
production of highly engineered specialty metal products and advanced
vacuum furnace systems. AMG serves growing industries worldwide with
its unique combination of metallurgical engineering expertise and
production know-how. AMG is a market leader in many of its products
and systems, which are critical to the production of key components
for the aerospace, energy (including solar and nuclear), electronics,
optics, chemicals, construction and transportation industries. AMG
has two operating divisions of businesses, Advanced Materials and
Engineering Systems, and owns majority interests in publicly-listed
companies Timminco Limited (TSX: "TIM") and Graphit Kropfmühl AG
(Deutsche Börse: GKR.DE).
The Advanced Materials Division develops and produces niche specialty
metals and complex metals products, many of which are used in
demanding, safety-critical, high-stress environments. AMG is one of
a limited number of significant producers globally of niche specialty
metals, such as ferrovanadium, ferronickel-molybdenum, aluminum
master alloys and additives, chromium metal and ferrotitanium, used
by steel, aluminum, chemical and superalloy producers for aerospace,
automotive, energy, electronics, optics, chemicals, construction and
other applications. Other key products produced by AMG include
specialty alloys for titanium and superalloys, coating materials,
tantalum and niobium oxides, vanadium chemicals and antimony
trioxide.
The Engineering Systems Division designs, engineers and produces
advanced vacuum furnace systems and operates vacuum heat treatment
facilities. AMG is a global leader in supplying
technologically-advanced vacuum furnace systems to customers in the
aerospace, energy (including solar and nuclear), transportation,
electronics, superalloys and specialty steel industries. Examples of
furnace systems produced by AMG include vacuum remelting, solar
silicon melting and crystallization, vacuum induction melting, vacuum
heat treatment and high pressure gas quenching, vacuum precision
casting, turbine blade coating and sintering. AMG also provides
vacuum case-hardening heat treatment services on a tolling basis to
customers through facilities equipped with vacuum heat treatment
furnaces.
Timminco Limited is a majority controlled, publicly listed subsidiary
of AMG. Timminco is a leader in the production of upgraded
metallurgical silicon for the rapidly growing solar photovoltaic
energy industry. Timminco also produces silicon metal and magnesium
products for use in a broad range of industrial applications.
Graphit Kropfmühl AG is a majority controlled, publicly listed
subsidiary of AMG. Based on its secure raw material sources in
Africa, China and Europe, Graphit Kropfmühl is a specialist in the
production of silicon metal and the extraction, processing and
refining of natural crystalline graphite for a wide range of energy
saving industrial applications.
AMG operates globally with production facilities in Germany, the
United Kingdom, France, Czech Republic, the United States, Canada,
Mexico, Brazil, Sri Lanka and Australia and also has sales and
customer service offices in Belgium, Russia, China and Japan
(website: www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4901
Jonathan Costello
Director of Corporate Communications
jcostello@amg-nv.com
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.
AMG Subsidiary, Timminco Announcement
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solely responsible for the content of this announcement.
