Advanced Engineered Materials (AEM) investor relations material

Executive summary

• Sales, orders, and customer pipeline grew strongly in 1H 2026, with revenue up 85% year-over-year to A$460k from 12.5 tonnes sold; orders reached 17.6 tonnes for A$687k, with 5.1 tonnes carried forward for delivery after period end.

• Listed on ASX in December 2025, this was the first half-year as a public entity.

• Name changed from Advanced Energy Minerals Limited to Advanced Engineered Materials Limited in June 2026.

• Customer pipeline expanded to 216 projects with a potential annual value of ~US$190m by July 2026, up from 152 projects and US$130m at December 2025.

• Product mix shifted toward higher-purity 4N+ grades, driving higher realised and pipeline pricing.

Financial highlights

• Revenue rose 85% year-over-year to A$460k; orders totaled A$687k, with 5.1 tonnes outstanding at period end.

• Net loss after tax increased 47% year-over-year to A$13.4m, mainly due to A$2.4m in non-cash items (share-based payments and depreciation).

• Operating cash outflow held flat at A$13.3m despite higher production activity; capital expenditure fell by half to A$2.9m.

• Cash position at 30 June 2026 was A$23.7m, with net assets of A$175.7m.

• Net tangible asset backing per share fell to 22.7 cents from 25.1 cents at 31 December 2025.

Outlook and guidance

• Sales expected to increase significantly in 2H 2026 to 40–60 tonnes, with further acceleration in 2027 as customers complete qualification and move to commercial production.

• Three additional supply framework agreements and three new distributor arrangements anticipated in 3Q 2026.

• Capex of A$2.5m planned for 2H 2026 on milling capacity, 3N5+ circuit, and Stage 2 Feasibility Study.

• Stage 2 expansion to 6,000 tpa targeted from 2029, subject to feasibility and investment decision.

• Focus on converting a growing customer pipeline into commercial supply.