Advanced Engineered Materials (AEM) Investor presentation summary

Company overview and strategy

• Operates a 2,000 tpa high purity alumina (HPA) plant in Quebec, with expansion to 3,000 tpa by mid-2026 and plans for 6,000 tpa by 2029.

• Serves high-growth markets including advanced ceramics, semiconductors, and synthetic sapphire.

• Uses renewable hydroelectricity, resulting in carbon emissions ~77% lower than incumbents.

• Holds 59 granted patents and leverages a technology development center in Montreal for innovation.

• Listed on the ASX in December 2025 after raising $44.8m.

Market dynamics and demand outlook

• Global HPA demand is forecast to grow at ~10% CAGR from 2025 to 2034, driven by sapphire, LED, and semiconductor sectors.

• Supply is expected to lag demand, leading to a sustained supply deficit from 2029.

• China dominates supply but is largely excluded from international markets due to quality and supply chain concerns.

• Ex-China supply is concentrated in Japan, France, and Germany, with Sumitomo as the market leader.

Pricing and cost competitiveness

• Tight market conditions and forecast undersupply are expected to drive HPA prices higher, with long-term prices for 4N/4N+ HPA projected at $30–46/kg.

• AEM is forecast to be in the bottom half of the global HPA cost curve, benefiting from low-cost renewable energy and innovative production technology.

• New market segments for slightly lower purity HPA (3N5–3N8) attract prices discounted by 40–50% compared to 4N/4N+.