Amsterdam, 27 March 2017 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") announces that it has recently received a purported "notice of cancellation" of its tantalum supply contract from its customer, Global Advanced Metals USA Inc. ("GAM"). GAM has asserted that AMG has failed to provide adequate assurances of its ability to perform under the supply contract following the fire in January 2017 in one of AMG's two tantalum concentrate production lines.
AMG believes that it has supplied detailed empirical information that provides reasonable and adequate assurance of its ability to perform its obligations under the supply contract, notwithstanding the fire, and that GAM's action has no legal or factual basis. AMG intends to take all steps to protect its rights under the contract.
AMG is currently assessing the financial impact of the purported contract cancellation, which will depend on a number of factors, including making tantalum product available to the market, as well as evaluating our rights under our business interruption insurance policy. AMG's current best estimate of the financial impact on 2017 profitability, as a result of the purported contract cancellation, is approximately $5m.
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).