Advanced Engineered Materials (ASX:AEM) has reported an 85% increase in unaudited first-half sales revenue to $460,000 as customers progressed into commercial supply.
The company sold 12.5 tonnes of high purity alumina (HPA) during the six months at an average price of US$25.40 ($35.44) per kilogram.
Orders totalled 17.6 tonnes worth $687,000 at an average US$27 per kilogram. Of this volume, 5.1 tonnes remained outstanding at period end and were carried forward for later delivery.
Asia contributed 79% of first-half order volume, up from 55% during the previous corresponding period.
Advanced Engineered’s customer pipeline reached 216 projects with a potential annual value of US$190 million at the end of July, up from US$160 million in June. The pipeline represents 6,300 tonnes at an average price of US$30.20 per kilogram.
However, the pipeline is presented on an un-risked basis and does not represent contracted sales. Customers are at different stages ranging from laboratory trials to commercial relationships.
CEO Michael Adams says sales growth reflects increased supply to customers that have completed product qualification.
“This is clear evidence that our product consistently meets the exacting purity and performance requirements of the semiconductor supply chain,” Adams says.
Advanced Engineered says it expects second-half sales of approximately 40–60 tonnes, subject to qualified customers completing new production tooling and other customers progressing from product testing into commercial production.
The company notes it has four long-term supply framework agreements in place and expects to conclude another three during the September quarter. These agreements do not necessarily commit customers to fixed volumes or prices.
Advanced Engineered Materials says demand is developing for HPA used in semiconductor manufacturing tools, advanced packaging, and thermal-management systems.
The production circuit for 4N+ — or more than four-nines-plus purity level — at its Cap-Chat Plant in Québec, Canada, is expected to reach full run rate by the end of 2027. Advanced Engineered has deferred the full ramp-up of its lower-purity 3N5+ circuit until mid-2028 as it prioritises higher-purity products.
Write to France Pinzon at Mining.com.au
Images: Advanced Engineered Materials
