{"id":16654,"date":"2021-11-08T17:51:58","date_gmt":"2021-11-08T22:51:58","guid":{"rendered":"http:\/\/www.neomaterials.com\/?p=16654"},"modified":"2023-07-10T13:24:36","modified_gmt":"2023-07-10T17:24:36","slug":"neo-performance-materials-reports-strong-third-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.neomaterials.com\/neo-performance-materials-reports-strong-third-quarter-2021-results\/","title":{"rendered":"Neo Performance Materials Reports Strong Third Quarter 2021 Results"},"content":{"rendered":"<div id=\"divContent\">\n<p style=\"text-align: center;\"><b><span style=\"font-size: 14pt;\">Q3 2021 Highlights<\/span><br \/>\n<\/b><i>(unless otherwise noted, all financial amounts in this news release are expressed in U.S. dollars)<\/i><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Q3 2021 revenue of $119.8 million higher by 53.9% YoY.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Volumes in the quarter of 3,523 tonnes improved by 16.1% YoY.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Operating income of $12.6 million in the quarter.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Adjusted Net Income<sup>(1)<\/sup>\u00a0of $9.8 million, or $0.26 per share.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Adjusted EBITDA<sup>(1)<\/sup>\u00a0of $17.7 million.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Cash balance of $51.7 million after distributing $3.0 million in dividends to shareholders.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">A quarterly dividend of Cdn$0.10 per common share was declared on November 8, 2021, for shareholders of record at December 20, 2021, with a payment date of December 30, 2021.<\/span><\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/p>\n<p>TORONTO, Canada, October 25, 2021 \u2013 Neo Performance Materials Inc. (&#8220;<b>Neo<\/b>&#8220;, the &#8220;<b>Company<\/b>&#8220;) (TSX: NEO) today released its third-quarter 2021 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 website at <a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=304595018&amp;u=http%3A%2F%2Fwww.neomaterials.com%2Finvestors%2F&amp;a=www.neomaterials.com%2Finvestors%2F\" target=\"_blank\" rel=\"noopener\">www.neomaterials.com\/investors\/<\/a>\u00a0and on SEDAR at <a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=3948342079&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener\">www.sedar.com<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>HIGHLIGHTS OF Q3 2021 CONSOLIDATED PERFORMANCE<\/b><\/p>\n<p>&nbsp;<\/p>\n<p>Neo reported strong year-over-year (&#8220;<b>YoY<\/b>&#8220;) gains in revenue, volumes, operating income, Adjusted EBITDA, and profitability in the quarter ended September 30, 2021, driven largely by increased demand for products across all three of its operating divisions, higher selling prices for rare earth materials, and continuing progress in several of the Company&#8217;s strategic initiatives.<\/p>\n<p>Consolidated revenue in the quarter was $119.8 million, compared to $77.9 million in the third quarter of 2020; an increase of $42.0 million or 53.9%.\u00a0 Neo reported a net income of $8.1 million, or $0.21 per share, which compared to $0.4 million, or $0.01 per share, in the corresponding prior-year period.\u00a0 Adjusted Net Income<sup>(1)<\/sup>\u00a0totaled $9.8 million, or $0.26 per share, which compared to $1.3 million, or $0.03 per share, in the third quarter of 2020.\u00a0 Adjusted EBITDA<sup>(1)<\/sup>\u00a0was $17.7 million, a 208% jump over Adjusted EBITDA of $5.7 million in the comparable prior-year period.<\/p>\n<p>As of September 30, 2021, Neo had cash and cash equivalents of $51.7 million plus restricted cash of $4.0 million, compared to $72.2 million plus $4.2 million as at December 31, 2020, a change largely due to an increase in working capital driven by higher rare earth prices and higher-cost rare earth feedstock in inventory.\u00a0 In the nine months ended September 30, 2021, Neo paid $9.2 million in dividends to its shareholders.\u00a0 In addition, with the new credit facilities entered into in China in the third quarter, Neo has approximately $36.4 million available under its credit facilities with $5.5 million drawn as at September 30, 2021, compared to $2.4 million drawn as at December 31, 2020.<\/p>\n<p>&#8220;Neo benefitted from strong demand for our products as the global economy continues to gain speed,&#8221; said Constantine Karayannopoulos, CEO of Neo.\u00a0&#8220;I am also pleased with the incremental growth we are seeing in new business areas, and I believe those initiatives hold promise for enhanced and sustainable growth over the long-term.\u00a0Neo was also able to capitalize on a relatively robust rare earth pricing environment, largely driven by an expectation of rising global demand for such green technology applications as electrified transportation, renewable energy, and high-efficiency motors and other greenhouse-gas reducing technologies.\u00a0I believe that Neo is extraordinarily well-positioned to deliver the highly engineered specialty materials needed by OEMs and their suppliers around the world for these technologies, and we look forward to expanding and diversifying our production capabilities as needed by these macro growth trends.&#8221;<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>SELECTED FINANCIAL RESULTS<\/b><\/p>\n<p>&nbsp;<\/p>\n<p>For the three and nine months ended September 30, 2021, consolidated revenues of $119.8 million and $385.8 million were 53.9% and 63.3% higher, respectively, than the corresponding periods of 2020.\u00a0 All three business segments experienced an increase in revenue as volumes rose due to the economic recovery since the initial impact of COVID-19 in 2020, despite being negatively impacted by the semiconductor chip shortage in the automotive sector and by continuing global supply chain logistics challenges.\u00a0 Consolidated volumes in the nine-month period ended September 30, 2021, were supported by progress in key strategic initiatives in all three segments, as well as by customer refilling of supply chains.\u00a0 Selling prices for rare earth products, including Magnequench powders, rose significantly starting from the fourth quarter of 2020, through the third quarter of 2021, and early into the fourth quarter.\u00a0 Some volatility in the second quarter of 2021 was seen before prices began rising again in the third quarter.\u00a0 Rare earth prices in the third quarter of 2021 remain relatively high compared to more recent historical periods driven primarily by the magnetic elements which are critical in leading technologies such as the electrification of automobiles and other environmentally sustaining technologies.\u00a0 Neo has benefited from these generally higher prices from both a lead-lag perspective (lower cost inventory on hand) and more dollar value margin available generally with higher prices.<\/p>\n<p>&nbsp;<\/p>\n<div>\n<table style=\"border-color: #e0e0e0;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td colspan=\"9\"><b>TABLE 1: Selected Consolidated Results<\/b><\/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>Q3 2021<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Q3 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2021<\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,523<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">3,035<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">11,792<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">8,883<\/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 class=\"prnews_span\" style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">119,841<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">77,864<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">385,837<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">236,295<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Operating income (loss)<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">12,558<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">1,137<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">47,161<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(58,849)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">16,441<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,491<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">53,051<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">(44,990)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_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;\">17,650<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">5,730<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">62,263<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">16,566<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_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;\">14.7 %<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">7.4 %<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">16.1 %<\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\">7.0 %<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable2c93\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><b>_________________________<\/b><\/td>\n<\/tr>\n<tr>\n<td><i><sup>(1)<\/sup><\/i><span style=\"font-size: 10pt;\"><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>&nbsp;<\/p>\n<p><b>MAGNEQUENCH SEGMENT RESULTS<\/b><\/p>\n<p>In the three and nine months ended September 30, 2021, Magnequench saw broad volume increases across the majority of its applications, including key end markets such as solutions for electrified vehicles (including traction motors) and in other applications such as factory automation and home appliances.\u00a0 2021 volumes also benefitted from customer inventory rebuilding.\u00a0 Q3 volumes were adversely impacted by the slowdown in automotive production due to the global semiconductor chip shortage.<\/p>\n<p>Over the last few years, Magnequench has focused on key macro growth trends that are yielding positive sales volume growth in areas such as compression magnets and electrified-automotive applications, including traction motors and pumps.\u00a0 Despite the slowdown in automotive, Magnequench is continuing to produce near-record volumes in the compression magnet sector.\u00a0 Magnequench margins benefited from increased volumes and better absorption of fixed costs as well as the lead-lag impact of prices rising in rare earth components of its powder composition.\u00a0 Although Magnequench has strategically structured most of its sales contracts to contain pass-through pricing provisions for rare earth raw materials, in the three and nine months ended September 30, 2021, Magnequench benefited significantly from the timing of implementation of these price increases with having some lower-cost inventory on hand.<\/p>\n<p>&nbsp;<\/p>\n<div>\n<table style=\"border-color: #e0e0e0; width: 30.7531%;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td style=\"width: 99.6805%;\" colspan=\"5\"><b>TABLE 2: Selected Magnequench Results<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><\/td>\n<td style=\"text-align: right; width: 42.8115%;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter Comparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: right; width: 34.984%;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year\u00a0Comparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><\/td>\n<td style=\"width: 20.9265%; text-align: center;\"><span style=\"font-size: 10pt;\"><b>Q3 2021<\/b><\/span><\/td>\n<td style=\"width: 21.885%; text-align: center;\"><span style=\"font-size: 10pt;\"><b>Q3 2020<\/b><\/span><\/td>\n<td style=\"width: 17.2524%; text-align: center;\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2021<\/b><\/span><\/td>\n<td style=\"width: 17.7316%; text-align: center;\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right; width: 20.9265%;\"><span style=\"font-size: 10pt;\">1,374<\/span><\/td>\n<td style=\"text-align: right; width: 21.885%;\"><span style=\"font-size: 10pt;\">1,095<\/span><\/td>\n<td style=\"text-align: right; width: 17.2524%;\"><span style=\"font-size: 10pt;\">4,608<\/span><\/td>\n<td style=\"text-align: right; width: 17.7316%;\"><span style=\"font-size: 10pt;\">3,390<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: right; width: 20.9265%;\"><\/td>\n<td style=\"text-align: right; width: 21.885%;\"><\/td>\n<td style=\"text-align: right; width: 17.2524%;\"><\/td>\n<td style=\"text-align: right; width: 17.7316%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right; width: 20.9265%;\"><span style=\"font-size: 10pt;\">60,063<\/span><\/td>\n<td style=\"text-align: right; width: 21.885%;\"><span style=\"font-size: 10pt;\">31,620<\/span><\/td>\n<td style=\"text-align: right; width: 17.2524%;\"><span style=\"font-size: 10pt;\">192,856<\/span><\/td>\n<td style=\"text-align: right; width: 17.7316%;\"><span style=\"font-size: 10pt;\">100,413<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Operating income<\/span><\/td>\n<td style=\"text-align: right; width: 20.9265%;\"><span style=\"font-size: 10pt;\">8,130<\/span><\/td>\n<td style=\"text-align: right; width: 21.885%;\"><span style=\"font-size: 10pt;\">2,965<\/span><\/td>\n<td style=\"text-align: right; width: 17.2524%;\"><span style=\"font-size: 10pt;\">31,805<\/span><\/td>\n<td style=\"text-align: right; width: 17.7316%;\"><span style=\"font-size: 10pt;\">11,925<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 20.9265%;\"><span style=\"font-size: 10pt;\">9,773<\/span><\/td>\n<td style=\"text-align: right; width: 21.885%;\"><span style=\"font-size: 10pt;\">5,559<\/span><\/td>\n<td style=\"text-align: right; width: 17.2524%;\"><span style=\"font-size: 10pt;\">39,240<\/span><\/td>\n<td style=\"text-align: right; width: 17.7316%;\"><span style=\"font-size: 10pt;\">19,323<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 21.885%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 20.9265%;\"><span style=\"font-size: 10pt;\">10,503<\/span><\/td>\n<td style=\"text-align: right; width: 21.885%;\"><span style=\"font-size: 10pt;\">5,244<\/span><\/td>\n<td style=\"text-align: right; width: 17.2524%;\"><span style=\"font-size: 10pt;\">38,872<\/span><\/td>\n<td style=\"text-align: right; width: 17.7316%;\"><span style=\"font-size: 10pt;\">18,524<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable3a5a\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><b>_________________________<\/b><\/td>\n<\/tr>\n<tr>\n<td><i><sup>(1)<\/sup><\/i><span style=\"font-size: 10pt;\"><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<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>CHEMICALS &amp; OXIDES (&#8220;C&amp;O&#8221;) SEGMENT RESULTS<\/b><\/p>\n<p>&nbsp;<\/p>\n<p>The C&amp;O segment continues to see strong demand for various rare earth products, particularly its magnetic-based products, as the global economy continues to recover from the economic impacts of COVID-19.\u00a0 Demand and pricing for rare earth magnetic elements continues to increase given their use in the electrification of automobiles and other environmentally sustainable technologies. Higher REE prices, and higher demand for magnetic rare earth products in particular, benefitted the rare earth separation business through higher-dollar value margins and the lead-lag impact of lower cost inventory on hand relative to selling prices.\u00a0 In environmental catalysts, customer re-stocking of inventory levels positively affected volumes in the first three months of 2021, while the unit saw reduced volumes in Q3, both year-over-year and sequentially, primarily related to the slowdown in automotive production.\u00a0 C&amp;O&#8217;s environmentally protective water treatment solutions business continues to perform well with higher volume and new customer adoption, although sales volumes were partially impacted by the challenges in global shipping and logistics availability.<\/p>\n<p>&nbsp;<\/p>\n<div>\n<table style=\"border-color: #e0e0e0;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td colspan=\"5\"><b>TABLE 3: Selected C&amp;O Results<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter Comparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: right;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year Comparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>Q3 2021<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>Q3 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2021<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,106<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,929<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">6,972<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">5,330<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/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<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">45,677<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">36,031<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">152,322<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">94,889<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Operating income<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">7,142<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,145<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">27,184<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(31,629)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">8,099<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,150<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">22,091<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(28,197)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">8,059<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">3,896<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">29,712<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">6,847<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTablee69d\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><b>_________________________<\/b><\/td>\n<\/tr>\n<tr>\n<td><i><sup>(1)<\/sup><\/i><span style=\"font-size: 10pt;\"><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<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>RARE METALS SEGMENT RESULTS<\/b><\/p>\n<p>&nbsp;<\/p>\n<p>Similar to Neo&#8217;s Magnequench and C&amp;O segments, the prior-year comparable period for the Rare Metals segment was also impacted by COVID-19, although more so after the first quarter of 2020 and continuing later into 2020.\u00a0 For the three- and nine-month periods ended September 30, 2021, the end markets of Rare Metals exhibited some slower recovery levels.\u00a0 The improvement in the Rare Metals business in the three- and nine-month periods ended September 30, 2021 was also attributed to progress made in several key strategic initiatives in the segment.\u00a0 The Rare Metals segment has made key progress into selling more products outside of the aerospace industry and adding new customers, thereby participating in new growth initiatives while diversifying its total end market exposure.\u00a0 Key progress continues to be made in expanding the capacity of key products (with minimal capital investment) and refocusing the sales pipeline and manufacturing capacity toward more profitable end products.\u00a0 Sales prices in several end markets have recovered and gallium-based products are exhibiting more market demand.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<div>\n<table style=\"border-color: #e0e0e0;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td colspan=\"5\"><b>TABLE 4: Selected Rare Metals Results<\/b><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b><i>Quarter-over-Quarter Comparison<\/i><\/b><\/span><\/td>\n<td style=\"text-align: center;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b><i>Year-over-Year Comparison<\/i><\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>Q3 2021<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>Q3 2020<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2021<\/b><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><b>YTD Q3 2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Volume (tonnes)<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">110<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">91<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">389<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">323<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/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<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Revenue<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">19,509<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">13,613<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">56,308<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">47,592<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Operating income (loss)<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,074<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(892)<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">4,168<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(25,797)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,733<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(535)<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">6,014<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(23,362)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span class=\"prnews_span\" style=\"font-size: 10pt;\">Adjusted EBITDA<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">2,715<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">(179)<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">6,080<\/span><\/td>\n<td style=\"text-align: right;\"><span style=\"font-size: 10pt;\">1,108<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable857f\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><b>_________________________<\/b><\/td>\n<\/tr>\n<tr>\n<td><i><sup>(1)<\/sup><\/i><span style=\"font-size: 10pt;\"><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>&nbsp;<\/p>\n<p><b>EARNINGS CONFERENCE CALL<\/b><\/p>\n<p>In order to comply with regulatory best practices, the Company anticipates holding its earnings conference call (the &#8220;Call&#8221;) following the completion of the distribution of common shares of the Company in connection with the bought deal treasury and secondary offering (the &#8220;Offering&#8221;) of its common shares. Neo expects the Offering to close on or around November 16, 2021, and will provide further notice on the timing of the Call.<\/p>\n<p>&nbsp;<\/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. 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 nine months ended September 30, 2021, available on Neo&#8217;s web site at www.neomaterials.com and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=3948342079&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener\">www.sedar.com<\/a>.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>TABLE 5: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION<\/b><\/p>\n<div>\n<table style=\"border-color: #e0e0e0; width: 35.4108%;\" border=\"1\" cellspacing=\"0\" cellpadding=\"3\">\n<tbody>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"width: 145.2px; text-align: center;\"><span style=\"font-size: 10pt;\"><b>September 30, 2021<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: center;\"><span style=\"font-size: 10pt;\"><b>December 31, 2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>ASSETS<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Current<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Cash and cash equivalents<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">$51,734<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">$72,224<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Restricted cash<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">3,964<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">4,219<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Accounts receivable<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">68,838<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">51,851<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Inventories<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">156,587<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">130,867<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Income taxes receivable<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">1,491<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">2,186<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Assets held for sale<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">415<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other current assets<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">24,760<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">13,889<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total current assets<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>307,374<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>275,651<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Property, plant and equipment<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">73,599<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">74,322<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Intangible assets<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">50,676<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">53,653<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Goodwill<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">69,379<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">68,967<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Investments<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">11,609<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">10,045<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Deferred tax assets<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">3,481<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">3,040<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other non-current assets<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">3,275<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">864<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total non-current assets<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>212,019<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>210,891<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total assets<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$519,393<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$486,542<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>LIABILITIES AND EQUITY<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Current<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Bank advances and other short-term debt<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">$5,485<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">$2,428<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Accounts payable and other accrued charges<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">68,216<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">79,106<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Income taxes payable<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">5,857<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">2,945<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Provisions<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">3,878<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">2,628<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Lease obligations<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">1,439<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">1,297<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Derivative liability<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">11,843<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">9,428<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other current liabilities<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">2,964<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">940<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total current liabilities<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>99,682<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>98,772<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Employee benefits<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">2,259<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">2,358<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Provisions<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">16,010<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">4,201<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Deferred tax liabilities<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">13,926<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">13,970<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Lease obligations<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">1,974<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">2,243<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other non-current liabilities<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">1,555<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">1,513<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total non-current liabilities<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>35,724<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>24,285<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total liabilities<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>135,406<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>123,057<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Non-controlling interest<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">2,340<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">1,490<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Equity attributable to equity holders of Neo Performance Materials Inc.<\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\">381,647<\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\">361,995<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total equity<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>383,987<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>363,485<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 434.548px;\"><span style=\"font-size: 10pt;\"><b>Total liabilities and equity<\/b><\/span><\/td>\n<td style=\"width: 145.2px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$519,393<\/b><\/span><\/td>\n<td style=\"width: 139.939px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$486,542<\/b><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTable0d5c\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>____________________________<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>See accompanying notes to this table in Neo&#8217;s Consolidated Financial Statements for the Three and Nine Months Ended September 30, 2021, available on Neo&#8217;s website at\u00a0<\/i><a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=1018522029&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener\"><b><i>www.neomaterials.com<\/i><\/b><\/a><i>\u00a0and on SEDAR at\u00a0<\/i><a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=3948342079&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener\"><b><i>www.sedar.com<\/i><\/b><\/a><i>.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>TABLE 6: CONSOLIDATED RESULTS OF OPERATIONS<\/b><\/p>\n<p><i>Comparison of the three and nine months ended September 30, 2021 to the three and nine months ended September 30, 2020:<\/i><\/p>\n<div>\n<table style=\"border-color: #e0e0e0;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"width: 19.8358%; text-align: center;\" colspan=\"2\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Three Months Ended<br \/>\nSeptember 30,<\/b><\/span><\/td>\n<td style=\"width: 21.3406%; text-align: center;\" colspan=\"2\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Nine Months Ended<br \/>\nSeptember 30,<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.43912%; text-align: center;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>2021<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: center;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: center;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>2021<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: center;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Revenue<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$119,841<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$77,864<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$385,837<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$236,295<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Costs of sales<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Costs excluding depreciation and amortization<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">83,330<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">57,395<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">268,830<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">174,824<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Depreciation and amortization<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,980<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,996<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">5,771<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">7,431<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Gross profit<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>34,531<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>18,473<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>111,236<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>54,040<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Expenses<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Selling, general and administrative<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">13,347<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">10,938<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">41,024<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">37,589<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Share-based compensation<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,198<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">973<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">2,761<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">916<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Depreciation and amortization<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,908<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,797<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">5,798<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">5,851<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Research and development<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">5,520<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">3,628<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">14,492<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">9,449<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Impairment of assets<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">21,973<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">17,336<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">64,075<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">112,889<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Operating income (loss)<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>12,558<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>1,137<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>47,161<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>(58,849)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other income (expense)<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">462<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(92)<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(5,399)<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(65)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Finance cost, net<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(747)<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(99)<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(2,420)<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(3,362)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Foreign exchange loss<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(755)<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(128)<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(1,844)<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(440)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Income (loss) from operations before income taxes<br \/>\nand equity income of associates<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>11,518<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>818<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>37,498<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>(62,716)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Income tax expense<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(3,670)<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(1,198)<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(10,282)<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(811)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Income (loss) from operations before equity income<br \/>\nof associates<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>7,848<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>(380)<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>27,216<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>(63,527)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Equity income of associates (net of income tax)<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">288<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">781<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,564<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">1,082<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Net income (loss)<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$8,136<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$401<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$28,780<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$(62,445)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Attributable to:<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Equity holders of Neo<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$8,036<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$423<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$28,442<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$(60,150)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Non-controlling interest<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">100<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(22)<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">338<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">(2,295)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$8,136<\/b><\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$401<\/b><\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$28,780<\/b><\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>$(62,445)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\"><b>Earnings (Loss) per share attributable to equity holders of Neo:<\/b><\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Basic<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$0.21<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$0.01<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$0.75<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$(1.60)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 56.9083%;\" nowrap=\"nowrap\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Diluted<\/span><\/td>\n<td style=\"width: 9.43912%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$0.21<\/span><\/td>\n<td style=\"width: 10.3967%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$0.01<\/span><\/td>\n<td style=\"width: 9.98632%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$0.75<\/span><\/td>\n<td style=\"width: 11.3543%; text-align: right;\" nowrap=\"nowrap\"><span style=\"font-size: 10pt;\">$(1.60)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTablea6f7\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>____________________________<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\"><i>See Management&#8217;s Discussion and Analysis for the Three and Nine Months Ended September 30, 2021, available on Neo&#8217;s website at\u00a0<\/i><a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=1018522029&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener\"><i>www.neomaterials.com<\/i><\/a><i>\u00a0and on SEDAR at\u00a0<\/i><a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=3948342079&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener\"><i>www.sedar.com<\/i><\/a><i>.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>TABLE 7: RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW<\/b><\/p>\n<div>\n<table style=\"height: 576px; border-color: #e0e0e0;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr style=\"height: 48px;\">\n<td style=\"width: 52.9851%; height: 48px;\"><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: center; width: 21.4926%; height: 48px;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Three Months Ended<br \/>\nSeptember 30,<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 23.2836%; height: 48px;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Nine Months Ended<br \/>\nSeptember 30,<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><\/td>\n<td style=\"text-align: center; width: 10.4478%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>2021<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 11.0448%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 10.7463%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>2021<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 12.5373%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>Net income (loss)<\/b><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$8,136<\/b><\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$401<\/b><\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$28,780<\/b><\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$(62,445)<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Add back (deduct):<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Finance cost, net<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">747<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">99<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">2,420<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">3,362<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Income tax expense<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">3,670<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">1,198<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">10,282<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">811<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Depreciation and amortization included in costs of sales<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">1,980<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">1,996<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">5,771<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">7,431<\/span><\/td>\n<\/tr>\n<tr style=\"height: 48px;\">\n<td style=\"width: 52.9851%; height: 48px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Depreciation and amortization included in operating expenses<\/span><\/td>\n<td style=\"width: 10.4478%; height: 48px; text-align: right;\"><span style=\"font-size: 10pt;\">1,908<\/span><\/td>\n<td style=\"width: 11.0448%; height: 48px; text-align: right;\"><span style=\"font-size: 10pt;\">1,797<\/span><\/td>\n<td style=\"width: 10.7463%; height: 48px; text-align: right;\"><span style=\"font-size: 10pt;\">5,798<\/span><\/td>\n<td style=\"width: 12.5373%; height: 48px; text-align: right;\"><span style=\"font-size: 10pt;\">5,851<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>EBITDA<\/b><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>16,441<\/b><\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>5,491<\/b><\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>53,051<\/b><\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>(44,990)<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>Adjustments to EBITDA:<\/b><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other (income) expense\u00a0<sup>\u00a0(1)<\/sup><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">(462)<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">92<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">5,399<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">65<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Foreign exchange loss\u00a0<sup>(2)<\/sup><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">755<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">128<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">1,844<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">440<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Equity income of associates<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">(288)<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">(781)<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">(1,564)<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">(1,082)<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Share and value-based compensation\u00a0<sup>(3)<\/sup><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">1,198<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">931<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">2,761<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">660<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Impairment of assets<sup>\u00a0(4)<\/sup><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other costs\u00a0<sup>(5)<\/sup><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">6<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">(131)<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">772<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">2,389<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>Adjusted EBITDA<\/b><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$17,650<\/b><\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$5,730<\/b><\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$62,263<\/b><\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$16,566<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><i>Adjusted EBITDA Margins<\/i><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><i>14.7 %<\/i><\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><i>7.4 %<\/i><\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><i>16.1 %<\/i><\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><i>7.0 %<\/i><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Less:<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Capital expenditures<\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b>2,374<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b>3,407<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b>6,631<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$<\/b>6,436<\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><b>Free Cash Flow<\/b><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$15,276<\/b><\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$2,323<\/b><\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$55,632<\/b><\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\"><b>$10,130<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 52.9851%; height: 24px;\"><span style=\"font-size: 10pt;\"><i>Free Cash Flow Conversion<sup>\u00a0(6)<\/sup><\/i><\/span><\/td>\n<td style=\"width: 10.4478%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">86.5 %<\/span><\/td>\n<td style=\"width: 11.0448%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">40.5 %<\/span><\/td>\n<td style=\"width: 10.7463%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">89.4 %<\/span><\/td>\n<td style=\"width: 12.5373%; height: 24px; text-align: right;\"><span style=\"font-size: 10pt;\">61.1 %<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTablef130\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\"><b><u>Notes:<\/u><\/b><\/td>\n<\/tr>\n<tr>\n<td>(1)<\/td>\n<td><span style=\"font-size: 10pt;\">Represents other expenses resulting from non-operational related activities, including provisions for estimated damages for outstanding legal claims related to historic volumes, costs for disposal of historically generated naturally occurring radioactive materials (&#8220;<b>NORM<\/b>&#8220;) and fair value remeasurement of equity securities.\u00a0 These costs and recoveries are not indicative of Neo&#8217;s ongoing activities.<\/span><\/td>\n<\/tr>\n<tr>\n<td>(2)<\/td>\n<td><span style=\"font-size: 10pt;\">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>(3)<\/td>\n<td><span style=\"font-size: 10pt;\">Represents share and value-based compensation expense in respect of the Plan, the Legacy Plan, the LTIP and the long-term value bonus plan. The long-term value bonus plan is included in selling, general, and administration expenses and 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 For the three and nine months ended September 30, 2021, value-based compensation expense was nil, as the financial statement impact of the liquidity event was recorded in the year ended December 31, 2020.\u00a0 For the three and nine months ended September 30, 2020, value-based compensation recovery was $(42) and $(256), 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>(4)<\/td>\n<td><span style=\"font-size: 10pt;\">The negative economic impacts of COVID-19 were determined to be an impairment indicator as of June 30, 2020 for all Neo&#8217;s Cash Generating Units (&#8220;<b>CGUs<\/b>&#8220;).\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 the Rare Metals segments. As a result of the impairment test, Neo recognized an impairment charge of $59.1 million as of 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.<\/span><\/td>\n<\/tr>\n<tr>\n<td>(5)<\/td>\n<td><span style=\"font-size: 10pt;\">These represent primarily legal, professional advisory fees and other transaction costs incurred 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>(6)<\/td>\n<td><span style=\"font-size: 10pt;\">Calculated as Free Cash Flow divided by Adjusted EBITDA.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"divContent\">\n<p><b>TABLE 8: RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)<\/b><\/p>\n<div>\n<table style=\"border-color: #e0e0e0;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><i>($000s)<\/i><\/span><\/td>\n<td style=\"text-align: center; width: 18.1035%;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Three Months Ended<br \/>\nSeptember 30,<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 19.4581%;\" colspan=\"2\"><span style=\"font-size: 10pt;\"><b>Nine Months Ended<br \/>\nSeptember 30,<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><\/td>\n<td style=\"text-align: center; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>2021<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 8.867%;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>2021<\/b><\/span><\/td>\n<td style=\"text-align: center; width: 10.2217%;\"><span style=\"font-size: 10pt;\"><b>2020<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><b>Net income (loss)<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$8,136<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\"><b>$401<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$28,780<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\"><b>$(62,445)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><b>Adjustments to net income (loss):<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Foreign exchange loss\u00a0<sup>(1)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">755<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">128<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">1,844<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">440<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Impairment of assets\u00a0<sup>(2)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">59,084<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Share and value-based compensation\u00a0<sup>(3)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">1,198<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">931<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">2,761<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">660<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other costs (income)\u00a0<sup>(4)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">6<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">(131)<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">772<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">2,389<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Other items included in other (income) expense\u00a0<sup>(5)<\/sup><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">(260)<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">6,162<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">\u2014<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Tax impact of the above items<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">(43)<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">(38)<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">(1,341)<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">(3,546)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><b>Adjusted net income (loss)<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$9,792<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\"><b>$1,291<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$38,978<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\"><b>$(3,418)<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><b>Attributable to:<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Equity holders of Neo<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>9,692<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>1,313<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>38,640<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">(<b>$<\/b>3,390)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Non-controlling interest<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>100<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">(<b>$<\/b>22)<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>338<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">(<b>$<\/b>28)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><b>Weighted average number of common shares outstanding:<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Basic<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">37,913,275<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">37,610,846<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">37,738,354<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">37,671,721<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Diluted<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">38,228,888<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\">37,653,807<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\">38,084,902<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">37,671,721<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span style=\"font-size: 10pt;\"><b>Adjusted earnings (loss) per share\u00a0<sup>(6)<\/sup>\u00a0attributable to equity holders of Neo:<\/b><\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Basic<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>0.26<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>0.03<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>1.02<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">(<b>$<\/b>0.09)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 60.7143%;\"><span class=\"prnews_span\" style=\"font-size: 10pt;\">Diluted<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>0.25<\/span><\/td>\n<td style=\"text-align: right; width: 8.867%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>0.03<\/span><\/td>\n<td style=\"text-align: right; width: 9.23645%;\"><span style=\"font-size: 10pt;\"><b>$<\/b>1.01<\/span><\/td>\n<td style=\"text-align: right; width: 10.2217%;\"><span style=\"font-size: 10pt;\">(<b>$<\/b>0.09)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<table id=\"convertedTableb65f\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\"><b><u>Notes:<\/u><\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">(1)<\/span><\/td>\n<td><span style=\"font-size: 10pt;\">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: 10pt;\">(2)<\/span><\/td>\n<td><span style=\"font-size: 10pt;\">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 the Rare Metals segments. As a result of the impairment test, Neo recognized an impairment charge of $59.1 million as of 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.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">(3)<\/span><\/td>\n<td><span style=\"font-size: 10pt;\">Represents share and value-based compensation expense in respect of the Plan, the Legacy Plan, the LTIP and the long-term value bonus plan. The long-term value bonus plan is included in selling, general, and administration expenses and 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 For the three and nine months ended September 30, 2021, value-based compensation expense was nil, as the financial statement impact of the liquidity event was recorded in the year ended December 31, 2020.\u00a0 For the three and nine months ended September 30, 2020, value-based compensation recovery was $(42) and $(256), 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: 10pt;\">(4)<\/span><\/td>\n<td><span style=\"font-size: 10pt;\">These represent primarily legal, professional advisory fees and other transaction costs incurred 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: 10pt;\">(5)<\/span><\/td>\n<td><span style=\"font-size: 10pt;\">Represents other expenses resulting from non-operational related activities, including provisions for estimated damages for outstanding legal claims related to historic volumes, costs for disposal of historically generated NORM and fair value remeasurement of equity securities.\u00a0 These costs and recoveries are not indicative of Neo&#8217;s ongoing activities.<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">(6)<\/span><\/td>\n<td><span style=\"font-size: 10pt;\">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=3351459-1&amp;h=1018522029&amp;u=http%3A%2F%2Fwww.neomaterials.com%2F&amp;a=www.neomaterials.com\" target=\"_blank\" rel=\"noopener\"><b>www.neomaterials.com<\/b><\/a> and on SEDAR at\u00a0<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3351459-1&amp;h=3948342079&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" target=\"_blank\" rel=\"noopener\"><b>www.sedar.com<\/b><\/a>.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<table id=\"convertedTabled385\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>_______________________<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: 10pt;\">(1)\u00a0<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 new release and in the MD&amp;A, available on Neo&#8217;s website at www.neomaterials.com and on SEDAR at www.sedar.com.<\/i><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div id=\"divContent\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Neo Performance Materials (TSX:NEO) reported strong year-over-year gains in revenue, volumes, operating income, Adjusted EBITDA, and profitability in the quarter ended September 30, 2021, driven largely by increased demand for products across all three of its operating divisions, higher selling prices for rare earth materials, and continuing progress in several of the Company&#8217;s strategic initiatives.<\/p>\n","protected":false},"author":3,"featured_media":14641,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-16654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-releases"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Neo Reports Strong Third Quarter 2021 Results<\/title>\n<meta name=\"description\" content=\"Neo reported strong gains in revenue driven largely by increased demand for products and higher selling prices for rare earth materials.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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