AMG Critical Materials' revenue in the second quarter increased by $21.0 million, or 12%, to $202.6 million, driven by improved vanadium, molybdenum, nickel, aluminum, titanium and antimony prices, and higher sales volumes of chrome, antimony, silicon, niobium and titanium products.
Gross profit in the second quarter decreased by $0.4 million, or 1%, to $37.6 million. Strong financial performance in vanadium and titanium alloys in the quarter was offset by lower gross profit in tantalum. The reduction in tantalum gross profit was driven by lower sales volumes, due to the temporary shutdown in one of AMG's two tantalum production lines, and lower sales prices, following the termination of AMG's long term supply agreement.
AMG is insured for the interruption to the tantalum business as a result of the fire, and has recorded insurance proceeds of $3.0 million during the second quarter 2017, which is included within gross profit and EBITDA.
In addition, AMG Critical Materials' gross profit was positively impacted by the partial recovery of asset impairment expenses recorded in the first quarter 2017. AMG recorded an asset impairment expense of $2.2 million in the first quarter 2017 as a result of fire damage sustained at the Mibra mine in Brazil, and subsequently recorded a $1.4 million partial recovery in the second quarter 2017, following the receipt of insurance proceeds.
Additional insurance proceeds, in respect of both business interruption and property damage, are expected to be recorded in the second half of 2017. In accordance with IFRS, AMG is recognizing the insurance proceeds as recovery amounts are finalized.
SG&A expenses in the second quarter 2017 decreased by $2.4 million, or 10%, compared to the same period in the prior year, primarily due to a reduction in share-based compensation expenses.
Second quarter 2017 EBITDA margin increased slightly to 12%, compared to 11% in the second quarter 2016