Advanced Engineered Materials (AEM) Investor presentation summary

Company overview and market positioning

• Producer of high purity alumina (HPA) with a plant in Quebec, Canada, offering up to 5N purity and ultra-low alpha HPA with uranium and thorium below 1ppb.

• Plant capacity is 2,000 tpa, expanding to 3,000 tpa in 2026 and targeting 6,000 tpa by 2029, making it the third largest HPA producer outside China.

• Serves high-growth sectors: semiconductors, advanced ceramics, thermal fillers, and synthetic sapphire.

• Forecast to be in the bottom half of the global HPA cost curve, leveraging low-cost renewable hydroelectricity.

• Industry-leading low carbon emissions, with 98% renewables-powered operations.

Market dynamics and demand outlook

• HPA demand is driven by applications in LEDs, semiconductors, batteries, and advanced ceramics, with a forecast CAGR of ~10% from 2025 to 2034.

• Global supply is dominated by China (71%), but ex-China supply is limited and closely matches actual capacity.

• A persistent supply deficit is forecast from 2029 due to sluggish supply response and strong demand growth.

• HPA pricing is expected to rise, with 4N/4N+ HPA prices forecast to reach $38/kg long-term, driven by tight market conditions and high barriers to entry.

• New ROW producers with innovative technology, like AEM, are expected to disrupt the cost curve with lower production costs.

Operations, expansion, and innovation

• Cap-Chat plant benefits from stable jurisdiction, skilled workforce, and low-cost renewable energy.

• Montreal Technology Development Centre focuses on process innovation, product development, and margin expansion.

• Stage 1 expansion delivered 2,000 tpa capacity; Stage 2 aims to double capacity to 6,000 tpa by 2029, with robust project economics and government support.

• Expansion strategy is staged to match anticipated market demand and forecast undersupply.