{"id":15719,"date":"2020-08-10T07:00:46","date_gmt":"2020-08-10T11:00:46","guid":{"rendered":"http:\/\/www.neomaterials.com\/?p=15719"},"modified":"2022-03-21T19:20:02","modified_gmt":"2022-03-21T23:20:02","slug":"neo-performance-materials-reports-second-quarter-2020-results","status":"publish","type":"post","link":"https:\/\/www.neomaterials.com\/neo-performance-materials-reports-second-quarter-2020-results\/","title":{"rendered":"Neo Performance Materials Reports Second Quarter 2020 Results"},"content":{"rendered":"<div id=\"divHeadLine\">\n<p>&nbsp;<\/p>\n<p><b>Q2 2020 Highlights<\/b><\/p>\n<\/div>\n<div id=\"divContent\">\n<p><span style=\"font-size: 10pt;\"><i>(unless other noted, all financial amounts in this news release are expressed in U.S. dollars)<\/i><\/span><\/p>\n<ul type=\"disc\">\n<li>$67.7 million in revenue<\/li>\n<li>Net loss of $63.4 million, or $(1.62) per share<\/li>\n<li>Adjusted Net Loss<sup>(1)<\/sup>\u00a0of $5.6 million, or $(0.14) per share<\/li>\n<li>Adjusted EBITDA<sup>(1)<\/sup>\u00a0of $1.2 million<\/li>\n<li>Cash balance of $78.7 million after distributing $5.5 million in dividends to the shareholders, $3.5 million to non-controlling interest partners and re-purchasing $1.3 million of stock under its Normal Course Issuer Bid Program during the first half of the year.<\/li>\n<li>A quarterly dividend of Cdn$0.10 per common share was declared on August 7, 2020 for shareholders of record at September 17, 2020, with a payment date of September 29, 2020.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>TORONTO, Aug. 10, 2020 \/CNW\/ &#8211;\u00a0Neo Performance Materials Inc. (&#8220;<b>Neo<\/b>&#8220;, the &#8220;<b>Company<\/b>&#8220;) (<strong>TSX: NEO<\/strong>) released its second quarter 2020 financial results. The financial statements and management&#8217;s discussion and analysis (&#8220;<b>MD&amp;A<\/b>&#8220;) of these results can be viewed on Neo&#8217;s web site at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=292996225&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.neomaterials.com<\/a>\u00a0and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3331671571&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.sedar.com<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p><b>HIGHLIGHTS OF Q2 2020 CONSOLIDATED PERFORMANCE<\/b><\/p>\n<p>For the three months ended June 30, 2020, consolidated revenue was $67.7 million compared to $101.7 million in the second quarter of 2019; a decrease of $34.0 million or 33.4%.\u00a0 Neo reported a net loss of $63.4 million, or $(1.62) per share.\u00a0 Adjusted Net Loss<sup>(1)<\/sup>\u00a0totaled $5.6 million, or $(0.14) per share.<\/p>\n<p>As of June 30, 2020, Neo had cash and cash equivalents of $78.7 million, plus restricted cash of $3.9 million, compared to $84.7 million, plus $4.2 million as at December 31, 2019.\u00a0 Neo paid $5.5 million in dividends to its shareholders and $3.5 million to its non-controlling interest partners and purchased $1.3 million of its shares under the Normal Course Issuer Bid program in the six months ended June 30, 2020.\u00a0 In addition, Neo has approximately $6.2 million available under its credit facilities with no amount drawn.<\/p>\n<p>&#8220;While our processing facilities are all operational and ready to return to normal operating levels, our customers at large have remained cautious with orders and inventory management given the impacts of COVID-19,&#8221; said Neo&#8217;s President and CEO, Constantine Karayannopoulos. Despite these headwinds, Neo remained operationally profitable at the adjusted EBITDA line during what we would consider the peak impact of the pandemic.\u00a0 As we work through the coming quarters, our focus will be geared towards increasing operational efficiency, continuing to implement cost controls where necessary, and ensuring that we meet the complex needs of our global customers.\u00a0 At the same time, we will be opportunistic in pursuing strategies to further expand our global footprint, industrial knowledge, and capabilities.\u00a0 We also intend to advance our leadership position in the vehicle electrification, energy efficiency, and sustainable technology markets.&#8221;<\/p>\n<p>Mr. Karayannopoulos added:\u00a0 &#8220;We continue to hear from our customers that Neo&#8217;s advanced industrial materials are even more important today, particularly in terms of empowering our customers&#8217; ability to successfully navigate and compete in a post-COVID world.\u00a0 The need for clean air, improved fuel economy, better and more sustainable technologies that can help address climate change, and strengthened regional supply chains has only accelerated.&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p><b>SELECTED FINANCIAL RESULTS<\/b><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"9\"><span style=\"font-size: 10pt;\"><b>TABLE 1: Selected Consolidated Results<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2019<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,545<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,490<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,848<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">7,097<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">67,734<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">101,736<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">158,431<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">210,266<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Operating (loss) income<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(64,993)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,850<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(59,986)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">22,089<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(59,542)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">9,329<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(50,481)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">30,168<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,191<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">12,004<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">10,836<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">28,490<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Adjusted EBITDA %<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1.8%<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">11.8%<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">6.8%<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">13.5%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable97c8\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"4\"><i><sup>(1)<\/sup><\/i><span style=\"font-size: 8pt;\"><i>Neo reports non-IFRS measures such as &#8220;Adjusted Net Income&#8221;, &#8220;Adjusted Earnings per Share&#8221;, &#8220;Adjusted EBITDA&#8221;, &#8220;Adjusted EBITDA Margin&#8221; and &#8220;EBITDA&#8221;. Please see information on this and other non-IFRS measures in the &#8220;Non-IFRS Measures&#8221; section of this news release and in the MD&amp;A.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Revenues for the three and six months ended June 30, 2020, were 33.4% and 24.7% lower, respectively, than in the corresponding periods of 2019.\u00a0 All three reportable segments experienced significant decreases in revenue as volumes were adversely affected by slower economic activities due to the COVID-19 pandemic.<\/p>\n<p>Neo reported operating losses and net losses for the three and six months ended June 30, 2020, mainly from a $59.1 million impairment of assets in the C&amp;O and Rare Metals segments. Operationally, the most significant impact to financial performance was from lower volumes across all three business segments, which can largely be attributed to COVID-19 and the impact to customer demand across the supply chain.\u00a0 All three business units engaged in various cost-cutting initiatives including shortening shifts, temporarily idling certain facilities, reducing project costs, and executing on other working capital reduction initiatives.<\/p>\n<p>Aside from the volume impact driven by COVID-19, the Magnequench segment saw growth and progress in its strategy to increase magnet-making capability and sales.\u00a0 The C&amp;O segment was adversely affected by lower spot sales, a LCM (lower-of-cost-or-market) charge on certain products where demand and pricing were adversely affected by COVID-19, and increased legal cost provisions for ongoing intellectual property legal disputes.\u00a0 The Rare Metals segment saw improved product margins in its Tantalum products having worked through much of the previous higher-cost inventory that was affecting previous results.<\/p>\n<p>Neo recorded a $59.1 million impairment charge for the three and six months ended June 30, 2020, with $35.1 million attributable to C&amp;O and\u00a0 $24.0 million attributable to Rare Metals. No impairment was recorded against Magnequench.\u00a0 The impairment charge against the C&amp;O and Rare Metals segments was largely triggered by the economic impacts of COVID-19 on the future cash flows of the business segments causing the recoverable amount to be less than the pre-adjusted carrying values of certain business segments in the financial statements.\u00a0 This non-cash impairment charge largely relates to non-productive assets whose value was adjusted as a result of purchase price accounting applied in September 2016, upon emergence from bankruptcy of the predecessor company.<\/p>\n<p>Adjusted EBITDA for the three and six months ended June 30, 2020 were $1.2 million and $10.8 million, respectively; a decrease of $10.8 million and $17.7 million compared to the same periods in 2019.<\/p>\n<p>&nbsp;<\/p>\n<p><b>MAGNEQUENCH SEGMENT RESULTS<\/b><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"9\"><span style=\"font-size: 10pt;\"><b>TABLE 2: Selected Magnequench Results<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2019<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,024<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,367<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,295<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,812<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">30,267<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">41,473<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">68,793<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">89,028<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Operating income<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,421<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">6,164<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">8,960<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">15,645<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,617<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">8,121<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">13,369<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">19,544<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,565<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">8,255<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">13,280<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">19,184<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTableac4b\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"4\"><i><sup>(1)<\/sup><\/i><span style=\"font-size: 8pt;\"><i>Neo reports non-IFRS measures such as &#8220;Adjusted Net Income&#8221;, &#8220;Adjusted Earnings per Share&#8221;, &#8220;Adjusted EBITDA&#8221;, &#8220;Adjusted EBITDA Margin&#8221; and &#8220;EBITDA&#8221;. Please see information on this and other non-IFRS measures in the &#8220;Non-IFRS Measures&#8221; section of this news release and in the MD&amp;A.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Magnequench volumes for the six months ended June 30, 2020, were adversely affected by extended customer shutdowns and slowing demand was seen across most applications.\u00a0 However, some improved stability was evident in the hard disk drive (&#8220;<b>HDD<\/b>&#8220;) segment and other factory automation applications.\u00a0 Magnequench also continued to see growth in its magnet-making capacity and magnet sales, particularly with respect to sales from the magnet business purchased in 2019, where the current product line addresses laptop computers and consumer electronics, and has been on a growth trajectory and gaining market share over the past year.\u00a0 In addition, Magnequench benefited from various cost-cutting initiatives including reducing production shifts at its manufacturing locations.<\/p>\n<p>For the three months ended June 30, 2020, Adjusted EBITDA was $5.6 million, a decrease of $2.7 million compared to the same period of the prior year.\u00a0 For the six months ended June 30, 2020, Adjusted EBITDA in the Magnequench segment was $13.3 million, compared to $19.2 million in the corresponding period in 2019; a decrease of $5.9 million.\u00a0 Sales volumes, and their impact on margins and overhead absorption, were the largest contributor to the decrease in Adjusted EBITDA with other impacts from mix, price reductions, timing of certain operational activities, changes in foreign exchange rates, and timing of pricing pass-through mechanics on material inputs.<\/p>\n<p>&nbsp;<\/p>\n<p><b>CHEMICALS &amp; OXIDES (&#8220;C&amp;O&#8221;) SEGMENT RESULTS<\/b><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"9\"><span style=\"font-size: 10pt;\"><b>TABLE 3: Selected C&amp;O Results<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2019<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,466<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,053<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,401<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">4,188<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">25,320<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">38,534<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">58,858<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">82,107<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Operating (loss) income<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(37,748)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,696<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(34,774)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">10,322<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(36,398)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">4,870<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(32,040)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">12,660<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(1,462)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">4,924<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,951<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">11,912<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTablee995\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"4\"><i><sup>(1)<\/sup><\/i><span style=\"font-size: 8pt;\"><i>Neo reports non-IFRS measures such as &#8220;Adjusted Net Income&#8221;, &#8220;Adjusted Earnings per Share&#8221;, &#8220;Adjusted EBITDA&#8221;, &#8220;Adjusted EBITDA Margin&#8221; and &#8220;EBITDA&#8221;. Please see information on this and other non-IFRS measures in the &#8220;Non-IFRS Measures&#8221; section of this news release and in the MD&amp;A.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>For the three and six months ended June 30, 2020, the C&amp;O segment reported operating losses of $37.7 million and $34.8 million, respectively, compared to operating income of $3.7 million and $10.3 million, respectively, in the corresponding periods in 2019. The operating loss in the three and six months ended June 30, 2020 was mainly from the $35.1 million impairment charge recorded during the quarter.<\/p>\n<p>Operationally, C&amp;O was impacted by lower volumes and sales in the three and six month periods ended June 30, 2020, largely due to the COVID-19 pandemic, where most customers experienced interruptions and shutdowns causing impacts throughout the supply chain.\u00a0 These slowdowns impacted all major serviceable end markets, including auto-catalysts, rare earth separations, and water treatment. Water treatment in particular had slowed down after growing sequentially for the past several years.\u00a0 C&amp;O recorded a LCM (lower-of-cost-or-market) charge in the quarter related to COVID-19 and the view on timing of recovery of certain products and pricing considerations.\u00a0 C&amp;O did not record any meaningful spot sales in the quarter whereas the prior year periods had significant spot sales.\u00a0 In the three month period ended June 30, 2020, C&amp;O recorded an increase in its SG&amp;A costs related to potential legal costs associated with on-going patent disputes.\u00a0 In addition, C&amp;O implemented cost-cutting initiatives, including successful efforts to reduce working capital and idling certain production facilities for a period of time.<\/p>\n<p>&nbsp;<\/p>\n<p><b>RARE METALS SEGMENT RESULTS<\/b><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"9\"><span style=\"font-size: 10pt;\"><b>TABLE 4: Selected Rare Metals Results<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter<br \/>\nComparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"4\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year<\/i><\/b><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><b><i>Comparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q2 2019<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q2 2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">90<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">154<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">232<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">272<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">13,529<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">25,027<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">33,979<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">46,558<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Operating (loss)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(24,728)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(371)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(24,905)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(214)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(23,625)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">780<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(22,727)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,142<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">376<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,813<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,287<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,988<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTablef639\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"4\"><i><sup>(1)<\/sup><\/i><span style=\"font-size: 8pt;\"><i>Neo reports non-IFRS measures such as &#8220;Adjusted Net Income&#8221;, &#8220;Adjusted Earnings per Share&#8221;, &#8220;Adjusted EBITDA&#8221;, &#8220;Adjusted EBITDA Margin&#8221; and &#8220;EBITDA&#8221;. Please see information on this and other non-IFRS measures in the &#8220;Non-IFRS Measures&#8221; section of this news release and in the MD&amp;A.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>For the three and six months ended June 30, 2020, the Rare Metals segment reported operating losses of $24.7 million and $24.9 million, respectively, compared to operating losses of $0.4 million and $0.2 million, respectively, in the corresponding periods in 2019. The operating loss in the three and six months ended June 30, 2020 was mainly due to the $24.0 million impairment charge recorded during the quarter.<\/p>\n<p>Operationally, the Rare Metals segment was impacted by lower volumes and sales in the three and six month periods ended June 30, 2020 compared to the prior-year comparable periods.\u00a0 These lower volumes and sales were largely a result of the impact of COVID-19 impacting customer demand and the related supply chains.\u00a0 This decline was across most of the Rare Metals end markets; with the largest end market being aerospace applications.\u00a0 Apart from lower volumes and sales, the Rare Metals segment did see improvements in product margins, primarily in its tantalum products, supplemented by cost-savings initiatives such as head-count reductions, project cost savings, and temporarily idling some production centers.<\/p>\n<p>&nbsp;<\/p>\n<p><b>CONFERENCE CALL ON MONDAY AUGUST 10, 2020 AT 10 AM EASTERN<\/b><\/p>\n<p>Management will host a teleconference call on Monday, August 10, 2020 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2020 results.\u00a0 Interested parties may access the teleconference by calling (647) 427-7450 (local) or\u00a0 (888) 231-8191 (toll-free long distance) or by visiting\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3278523506&amp;u=http%3A%2F%2Fcnw.en.mediaroom.com%2Fevents&amp;a=http%3A%2F%2Fcnw.en.mediaroom.com%2Fevents\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/cnw.en.mediaroom.com\/events<\/a>.\u00a0 A recording of the teleconference may be accessed by calling (416) 849-0833 (local) or (855) 859-2056 (toll-free long distance), and entering pass code 8259239# until September 10, 2020 or by visiting\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3278523506&amp;u=http%3A%2F%2Fcnw.en.mediaroom.com%2Fevents&amp;a=http%3A%2F%2Fcnw.en.mediaroom.com%2Fevents\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/cnw.en.mediaroom.com\/events<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p><b>NON-IFRS MEASURES<\/b><\/p>\n<p>This news release refers to certain non-IFRS financial measures such as &#8220;Adjusted Net Income&#8221;, &#8220;EBITDA&#8221;, &#8220;Adjusted EBITDA&#8221;, and &#8220;Adjusted EBITDA Margin&#8221;.\u00a0 These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of Neo&#8217;s results of operations from management&#8217;s perspective. Neo&#8217;s definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting.\u00a0 Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Neo&#8217;s financial information reported under IFRS.\u00a0 Neo uses non-IFRS financial measures to provide investors with supplemental measures of its base-line operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.\u00a0 Neo believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers.\u00a0 Neo&#8217;s management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period.\u00a0 For the operating segments, Neo also uses &#8220;OIBDA&#8221; and &#8220;Adjusted OIBDA&#8221;, which reconciles to operating income. Neo uses Adjusted OIBDA and Adjusted EBITDA interchangeably as the use of adjustments in each measure provides the same calculated outcome of operating performance. For definitions of how Neo defines such financial measures, please see the &#8220;Non-IFRS Financial Measures&#8221; section of Neo&#8217;s management&#8217;s discussion and analysis filing for the three and six months ended June 30, 2020, available on Neo&#8217;s web site at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=292996225&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.neomaterials.com<\/a>\u00a0and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3331671571&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.sedar.com<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b>TABLE 5: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION<\/b><\/span><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>June 30, 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>December 31, 2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>ASSETS<\/b><\/span><\/td>\n<td><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Current<\/b><\/span><\/td>\n<td><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Cash and cash equivalents<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">78,693<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">84,735<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Restricted cash<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,898<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">4,185<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Accounts receivable<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">32,314<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">44,297<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Inventories<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">106,054<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">112,891<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Income taxes receivable<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,218<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,460<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other current assets<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">12,107<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">14,230<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total current assets<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>235,284<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>261,798<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Property, plant and equipment<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">73,610<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">94,490<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Intangible assets<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">53,121<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">65,475<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Goodwill<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">65,334<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">98,841<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Investments<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">9,286<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">8,985<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Deferred tax assets<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,983<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">805<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other non-current assets<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">828<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">837<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total non-current assets<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>205,162<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>269,433<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total assets<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>440,446<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>531,231<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>LIABILITIES AND EQUITY<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Current<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Bank advances and other short-term debt<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">54<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Accounts payable and other accrued charges<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">41,647<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">56,138<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Income taxes payable<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,936<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">4,756<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Provisions<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,949<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Lease obligations<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,215<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,660<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Derivative liability<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">11,803<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">11,833<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other current liabilities<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">119<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">85<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total current liabilities<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>59,669<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>74,526<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Employee benefits<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,954<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,031<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Provisions<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,260<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,670<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Deferred tax liabilities<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">14,544<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">15,894<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Lease obligations<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,611<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,953<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other non-current liabilities<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,629<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,524<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total non-current liabilities<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>23,998<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>28,072<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total liabilities<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>83,667<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>102,598<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Non-controlling interest<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,391<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,997<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Equity attributable to equity holders of Neo Performance Materials Inc<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">355,388<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">424,636<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total equity<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>356,779<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>428,633<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Total liabilities and equity<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>440,446<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>531,231<\/b><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable777b\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"4\"><span style=\"font-size: 8pt;\"><i>See accompanying notes to this table in Neo&#8217;s\u00a0 Consolidated Financial Statements for the Three and Six Months Ended June 30, 2020, available on Neo&#8217;s website at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=292996225&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.neomaterials.com<\/a>\u00a0and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3331671571&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.sedar.com<\/a>.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b>TABLE 6: CONSOLIDATED RESULTS OF OPERATIONS<\/b><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i>Comparison of the three and six months ended June 30, 2020 to the three and six months ended June 30, 2019:<\/i><\/span><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"5\"><span style=\"font-size: 10pt;\"><b>Three Months Ended<br \/>\nJune 30,<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"9\"><span style=\"font-size: 10pt;\"><b>Six Months Ended<br \/>\nJune 30,<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2019<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Revenue<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">67,734<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">101,736<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">158,431<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">210,266<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Costs of sales<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Costs excluding depreciation and amortization<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">51,180<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">74,782<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">117,429<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">153,171<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Depreciation and amortization<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,715<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,353<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">5,435<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,763<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Gross profit<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>13,839<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>24,601<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>35,567<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>52,332<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Expenses<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Selling, general and administrative<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">14,690<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">11,249<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">26,651<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">18,545<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Share-based compensation<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">170<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">694<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(57)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">304<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Depreciation and amortization<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,018<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,054<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,999<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Research and development<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,870<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,780<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">5,821<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">6,381<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Impairment of assets<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,014<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">78,832<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">18,751<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">95,553<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">30,243<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Operating (loss) income<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(64,993)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>5,850<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(59,986)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>22,089<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other income (expense)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">221<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(468)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">27<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(594)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Finance cost, net<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(2,318)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(309)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(3,263)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1,691)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Foreign exchange gain (loss)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">138<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(401)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(312)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(308)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>(Loss) Income from operations before income taxes and equity income (loss) of associates<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(66,952)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>4,672<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(63,534)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>19,496<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Income tax benefit (expense)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,229<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(2,360)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">387<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(5,195)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>(Loss) Income from operations before equity income (loss) of associates<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(63,723)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2,312<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(63,147)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>14,301<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Equity income (loss) of associates (net of income tax)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">359<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(19)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">301<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">219<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Net (loss) income<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(63,364)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2,293<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(62,846)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>14,520<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Attributable to:<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Equity holders of Neo Performance Materials Inc.<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(60,936)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,090<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(60,573)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">14,337<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Non-controlling interest<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(2,428)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">203<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(2,273)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">183<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(63,364)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2,293<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(62,846)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>14,520<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>(Loss) Earnings per share attributable to equity holders of Neo Performance Materials Inc.:<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Basic<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1.62)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">0.05<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1.61)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">0.36<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Diluted<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1.62)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">0.05<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1.61)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">0.36<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable5314\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"4\"><span style=\"font-size: 8pt;\"><i>See Management&#8217;s Discussion and Analysis for the Three and Six Months Ended June 30, 2020, available on Neo&#8217;s website at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=292996225&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.neomaterials.com<\/a>\u00a0and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3331671571&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.sedar.com<\/a>.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b>TABLE 7: RECONCILIATION OF NET (LOSS) INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW<\/b><\/span><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"5\"><span style=\"font-size: 10pt;\"><b>Three Months Ended<br \/>\nJune 30,<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"5\"><span style=\"font-size: 10pt;\"><b>Six Months Ended<br \/>\nJune 30,<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2019<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Net (loss) income<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(63,364)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>2,293<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(62,846)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>14,520<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Add back (deduct):<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Finance cost, net<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,318<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">309<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,263<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,691<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Income tax (benefit) expense<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(3,229)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,360<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(387)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">5,195<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Depreciation and amortization included in costs of sales<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,715<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,353<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">5,435<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,763<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Depreciation and amortization included in operating expenses<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,018<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,054<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,999<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>EBITDA<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(59,542)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>9,329<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(50,481)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>30,168<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Adjustments to EBITDA:<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Equity (income) loss in associates<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(359)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">19<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(301)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(219)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other (income) expense\u00a0<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(221)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">468<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(27)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">594<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Foreign exchange (gain) loss\u00a0<sup>(2)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(138)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">401<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">312<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">308<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Impairment of assets\u00a0<sup>(3)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,014<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Share and value-based compensation recovery\u00a0<sup>(4)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(153)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">773<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(271)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1,426)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other non-recurring costs (recoveries)\u00a0<sup>(5)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,520<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,520<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(1,949)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Adjusted EBITDA<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>1,191<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>12,004<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>10,836<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>28,490<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>Adjusted EBITDA Margins<\/i><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><i>1.8%<\/i><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><i>11.8%<\/i><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><i>6.8%<\/i><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><i>13.5%<\/i><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Less:<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Capital expenditures<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,527<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,973<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,029<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,638<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Free Cash Flow<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>(336)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>10,031<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>7,807<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>23,852<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>Free Cash Flow Conversion<sup>\u00a0(6)<\/sup><\/i><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(28.2)%<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">83.6%<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">72.0%<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">83.7%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTablef875\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><span style=\"font-size: 8pt;\"><b><u>Notes:<\/u><\/b><\/span><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(1)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Represents other expenses resulting from non-operational related activities.\u00a0 These costs and recoveries are not indicative of Neo&#8217;s ongoing activities.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(2)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Represents unrealized and realized foreign exchange losses (gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(3)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">The negative economic impacts of COVID-19 were determined to be an impairment indicator as of June 30, 2020 for all Neo&#8217;s CGUs.\u00a0 In accordance with IAS 36 Impairment of Assets, the recoverable amount of Neo&#8217;s CGUs was determined based on fair value less cost of disposal for the Magnequench segment and value in use for the C&amp;O and Rare Metals segments. As a result of the impairment test, Neo recognized an impairment charge of $59.1 million for the three and six months ended June 30, 2020, with $35.1 million attributable to the C&amp;O segment and $24.0 million attributable to the Rare Metals segment. No impairment was recorded against the Magnequench segment.\u00a0 For the three and six months ended June 30, 2019, the $1.0 million impairment in the Rare Metals segment represents impairment of property, plant and equipment and other assets related to the closure of NRM Utah that will not be utilized as a result of the closure.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(4)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Represents share and value-based compensation expense in respect of the Legacy Plan, the LTIP and the long-term value bonus plan, which has similar vesting criteria to the share-based plan and is settled in cash for non-executives and non-North Americans where implementation of a share settlement plan would have been prohibitively expensive in terms of administration and compliance.\u00a0 Value-based compensation (recovery) of $(320) and $(213) are included in selling, general, and administration expenses for the three and six months ended June 30, 2020, respectively, expense\/(recovery) of $79 and $(1,729) and for the three and six months ended June 30, 2019, respectively.\u00a0 Neo has removed both the share and value-based compensation expense from EBITDA to provide comparability with historic periods and to treat it consistently with the share-based awards that they are intended to replace.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(5)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">These represents primarily legal, professional advisory fees and other transaction costs incurred\/(recovered) with respect to non-operating capital structure related transactions and restructuring costs related to management team changes.\u00a0 Neo has removed these charges to provide comparability with historic periods.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(6)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Calculated as Free Cash Flow divided by Adjusted EBITDA.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b>TABLE 8: RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET (LOSS) INCOME<\/b><\/span><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"7\"><span style=\"font-size: 10pt;\"><b>Three Months Ended<br \/>\nJune 30,<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"7\"><span style=\"font-size: 10pt;\"><b>Six Months Ended<br \/>\nJune 30,<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>2019<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>2019<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Net (loss) income<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>(63,364)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>2,293<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>(62,846)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>14,520<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Adjustments to net (loss) income:<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Foreign exchange (gain) loss\u00a0<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(138)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">401<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">312<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">308<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Impairment of assets\u00a0<sup>(2)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,014<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Share and value-based compensation recovery\u00a0<sup>(3)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(153)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">773<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(271)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(1,426)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other non-recurring costs (recoveries)\u00a0<sup>(4)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,520<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">2,520<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(1,949)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Other items included in other expense\u00a0<sup>(5)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(120)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">756<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">756<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Tax impact of the above items<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(3,407)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(3)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(3,508)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">151<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Adjusted net (loss) income<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>(5,578)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>5,234<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>(4,709)<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>13,374<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><b>Attributable to:<\/b><\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Equity holders of Neo Performance Materials Inc<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(5,417)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,031<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(4,703)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">13,191<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Non-controlling interest<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(161)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">203<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(6)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">183<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"14\"><span style=\"font-size: 10pt;\">Weighted average number of common shares outstanding:<\/span><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Basic<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">37,665,686<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">39,200,803<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">37,702,492<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">39,420,123<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Diluted<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">37,665,686<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">39,346,274<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">37,702,492<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">39,653,011<\/span><\/td>\n<\/tr>\n<tr>\n<td colspan=\"16\"><span style=\"font-size: 10pt;\">Adjusted (loss) earnings per share\u00a0<sup>(6)<\/sup>\u00a0attributable to equity shareholders of Neo Performance Materials Inc.:<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Basic<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(0.14)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">0.13<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(0.12)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">0.33<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">Diluted<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(0.14)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">0.13<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(0.12)<\/span><\/td>\n<td style=\"text-align: right;\"><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">$<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">0.33<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTableee22\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"2\"><span style=\"font-size: 8pt;\"><b><u>Notes:<\/u><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(1)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Represents unrealized and realized foreign exchange losses (gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(2)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">The negative economic impacts of COVID-19 were determined to be an impairment indicator as of June 30, 2020 for all Neo&#8217;s CGUs.\u00a0 In accordance with IAS 36 Impairment of Assets, the recoverable amount of Neo&#8217;s CGUs was determined based on fair value less cost of disposal for the Magnequench segment and value in use for the C&amp;O and Rare Metals segments. As a result of the impairment test, Neo recognized an impairment charge of $59.1 million for the three and six months ended June 30, 2020, with $35.1 million attributable to the C&amp;O segment and $24.0 million attributable to the Rare Metals segment.\u00a0 No impairment was recorded against the Magnequench segment.\u00a0 For the three and six months ended June 30, 2019, the $1.0 million impairment in the Rare Metals segment represents impairment of property, plant and equipment and other assets related to the closure of NRM Utah that will not be utilized as a result of the closure.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(3)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Represents share and value-based compensation expense in respect of the Legacy Plan, the LTIP and the long-term value bonus plan, which has similar vesting criteria to the share-based plan and is settled in cash for non-executives and non-North Americans where implementation of a share settlement plan would have been prohibitively expensive in terms of administration and compliance.\u00a0 Value-based compensation (recovery) of $(320) and $(213) are included in selling, general, and administration expenses for the three and six months ended June 30, 2020, respectively, expense\/(recovery) of $79 and $(1,729) and for the three and six months ended June 30, 2019, respectively.\u00a0 Neo has removed both the share and value-based compensation expense from net income to provide comparability with historic periods and to treat it consistently with the share-based awards that they are intended to replace.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(4)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">These represents primarily legal, professional advisory fees and other transaction costs incurred\/(recovered) with respect to non-operating capital structure related transactions and restructuring costs related to management team changes.\u00a0 Neo has removed these charges to provide comparability with historic periods.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(5)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Represents certain other transactions that Neo has removed from net income to provide comparability with historic periods.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 8pt;\">(6)<\/span><\/td>\n<td><span style=\"font-size: 8pt;\">Neo reports non-IFRS measures such as &#8220;Adjusted Net Income&#8221;, &#8220;Adjusted Earnings per Share&#8221;, &#8220;Adjusted EBITDA&#8221;, &#8220;Adjusted EBITDA Margin&#8221; and &#8220;EBITDA&#8221;. Please see information on this and other non-IFRS measures in the &#8220;Non-IFRS Measures&#8221; section of this new release and in the MD&amp;A, available on Neo&#8217;s website\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=292996225&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.neomaterials.com<\/a>\u00a0and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3331671571&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.sedar.com<\/a>.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><b>Notice of Shareholder Meeting<\/b><\/p>\n<p>Neo will hold its Annual General Meeting of Shareholders on Thursday, October 22, 2020 at 4:00 pm (Toronto time) at the offices of the Company, 121 King Street West, Suite 1740, Toronto, Ontario.<\/p>\n<p>&nbsp;<\/p>\n<p><b>About Neo Performance Materials<\/b><\/p>\n<p>Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability.\u00a0 Neo&#8217;s advanced industrial materials &#8211; magnetic powders and magnets, specialty chemicals, metals, and alloys &#8211; are critical to the performance of many everyday products and emerging technologies. Neo&#8217;s products help to deliver the technologies of tomorrow to consumers today.\u00a0 The business of Neo is organized along three segments: Magnequench, Chemicals &amp; Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, US; Singapore; and Beijing, China. Neo operates globally with sales and production across 10 countries, being Japan, China, Thailand, Estonia, Singapore, Germany, United Kingdom, Canada, United States, and South Korea. For more information, please visit\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=292996225&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.neomaterials.com<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p><b>Cautionary Statements Regarding Forward-Looking Statements<\/b><\/p>\n<p>This news release contains &#8220;forward-looking information&#8221; within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of Neo. All statements in this release, other than statements of historical facts, with respect to Neo&#8217;s objectives and goals, as well as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions, are forward-looking information. Specific forward-looking statements in this discussion include, but are not limited to, the following: expectations regarding certain of Neo&#8217;s future results and information, including, among other things, revenue, expenses, sales growth, capital expenditures, and operations; statements with respect to current and future market trends that may directly or indirectly impact sales and revenue of Neo; expected use of cash balances; continuation of prudent management of working capital; source of funds for ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for uncollectible accounts and inventory provisions; analysis regarding sensitivity of the business to changes in exchange rates; impact of recently adopted accounting pronouncements; risk factors relating to intellectual property protection and intellectual property litigation; risk factors relating to national or international economies (including the impact of COVID-19), and other risks present in the jurisdictions in which Neo, its customers, its suppliers, and\/or its logistics partners operate, and; expectations concerning any remediation efforts to Neo&#8217;s design of its internal controls over financial reporting and disclosure controls and procedures. Often, but not always, forward-looking information can be identified by the use of words such as &#8220;plans&#8221;, &#8220;expects&#8221;, &#8220;is expected&#8221;, &#8220;budget&#8221;, &#8220;scheduled&#8221;, &#8220;estimates&#8221;, &#8220;continues&#8221;, &#8220;forecasts&#8221;, &#8220;projects&#8221;, &#8220;predicts&#8221;, &#8220;intends&#8221;, &#8220;anticipates&#8221; or &#8220;believes&#8221;, or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results &#8220;may&#8221;, &#8220;could&#8221;, &#8220;would&#8221;, &#8220;should&#8221;, &#8220;might&#8221; or &#8220;will&#8221; be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Neo believes the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this discussion and analysis should not be unduly relied upon. For more information on Neo, investors should review Neo&#8217;s continuous disclosure filings that are available under Neo&#8217;s profile at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2880445-1&amp;h=3331671571&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener noreferrer\">www.sedar.com<\/a>.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p><strong>Contacts:<\/strong><\/p>\n<div id=\"divMediaContact\">\n<p>Ali Mahdavi<br \/>\nInvestor Relations<br \/>\n(416) 962-3300<br \/>\nEmail: <a href=\"mailto:a.mahdavi@neomaterials.com\">a.mahdavi@neomaterials.com<\/a><\/p>\n<p>Jim Sims<br \/>\nMedia Relations<br \/>\n(303) 503-6203<br \/>\nEmail: <a href=\"mailto:j.sims@neomaterials.com\">j.sims@neomaterials.com<\/a><\/p>\n<p>Website: www.neomaterials.com<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Q2 2020 Highlights (unless other noted, all financial amounts in this news release are expressed in U.S. dollars) $67.7 million in revenue Net loss of $63.4 million, or $(1.62) per share Adjusted Net Loss(1)\u00a0of $5.6 million, or $(0.14) per share Adjusted EBITDA(1)\u00a0of $1.2 million Cash balance of $78.7 million after distributing $5.5 million in [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":14639,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85,7],"tags":[92,37,41,105,94,104,106],"class_list":["post-15719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-news","category-news-releases","tag-constantine-karayannopoulos","tag-neo","tag-neo-performance-materials","tag-q2","tag-q2-2020-earnings","tag-rahim-suleman","tag-second-quarter"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Neo Performance Materials Reports Second Quarter 2020 Results<\/title>\n<meta name=\"description\" content=\"Neo Performance Materials Inc., a rare earth materials manufacturing company, released its second quarter 2020 financial results.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/www.neomaterials.com\/neo-performance-materials-reports-second-quarter-2020-results\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Neo Performance Materials Reports Second Quarter 2020 Results\" \/>\n<meta property=\"og:description\" content=\"Neo Performance Materials Inc., a rare earth materials manufacturing company, released its second quarter 2020 financial results.\" \/>\n<meta property=\"og:url\" content=\"http:\/\/www.neomaterials.com\/neo-performance-materials-reports-second-quarter-2020-results\/\" \/>\n<meta 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