C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb

Cash Flows
Net cash used in operating activities was $1.6 million in
the year ended December 31, 2010 as compared to cash
used of $2.1 million in the year ended December 31, 2009, a
$0.5 million improvement. Improved EBITDA was entirely
utilized by increases in working capital and taxes paid.
Net cash used in investing activities decreased to
$62.6 million in the year ended December 31, 2010 from
$90.2 million in the year ended December 31, 2009, a
$27.6 million decline. 2009 investing activities included
the discontinued operations of Timminco of $32.0 million.
This was offset by increased capital expenditures of
$7.5 million. The largest investing activities in the year
ended December 31, 2010 included:
• $16.5 million related the purchase of an antimony mine
in Turkey
• $3.7 million spent to acquire Mono² solar technology
• $1.1 million invested in Engineering associates in
France and India
• $5.3 million to expand our spent catalyst processing
capacity
• $1.7 million to increase the capacity and efficiency
of our own and operate business in Mexico
• $1.3 million to expand the graphite milling capacity
• $10.2 million in maintenance capital
The remaining capital expenditures related to other
smaller projects.
Cash provided by financing activities was $42.4 million
in the year ended December 31, 2010 as compared to
$62.6 million in the year ended December 31, 2009.
The cash provided by financing activities was lower in
66 Financial Review
2009 due to exclusion of Timminco which had $47.6 million
of financing in 2009. AMG did have increased borrowing
within its core subsidiaries in 2010. Funds were used for
working capital and capital projects.
Outlook
AMG improved its market position for a number of
materials and metals technologies used in the end
markets of Aerospace, Energy, Infrastructure and
Specialty Metals and Chemicals during 2010. These
activities combined with improving markets should
generate continued revenue and earnings growth in
2011. The Advanced Materials division’s acquisition of
the antimony mine and smelter, cost reductions made in
the aerospace master alloys and coatings products, the
acquisition of aluminum alloy producer KB Alloys, LLC
and rising prices and demand for tantalum and aerospace
master alloys should yield double digit percentage
revenue growth for this division in 2011. The Engineering
Systems division began 2011 with a 13% larger order
backlog than it began 2010 due to improved demand in the
specialty steel and solar industries. This should result in
a revenue growth rate during 2011 similar to the current
increase in order backlog; however, margin pressure may
increase. We expect strengthening demand for natural
graphite and improved pricing to result in revenue growth
at Graphit Kropfmühl in 2011. The growth in revenue
across all business segments combined with ongoing
capital investments to improve efficiencies should result
in an increased EBITDA margin in 2011.