REC Silicon

Earnings Release • Nov 7, 2024

REC Silicon - Third quarter 2024 results

REC Silicon - Third quarter 2024 results

Oslo, Norway - November 7, 2024: REC Silicon ASA (REC Silicon or Company)

reported third quarter 2024 revenues of USD 33.8 million compared to USD 37.7

million in the second quarter of 2024. The Company also reported an EBITDA

loss of USD 42.7 million compared to an EBITDA loss of USD 38.2 million in the

prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment

of USD 0.4 million for the third quarter compared to USD 7.0 million for the

second quarter of 2024. The lower EBITDA contribution was due primarily to

lower sales and lower production stemming from a planned maintenance shutdown

of the Butte facility. However, the third quarter of 2024 was also positively

impacted by lower electricity costs for the quarter.

Silicon gas sales volumes for the third quarter were 515 MT compared to 654 MT

during Q2 2024. Total polysilicon sales volumes for the third quarter were 169

MT.

REC Silicon reported cash balances of USD 23.6 million on September 30, 2024,

compared to USD 37.6 million on June 30, 2024. The decrease in cash was

primarily a result of cash outflows from operating activities at the Moses

Lake facility due to a delay in polysilicon sales.

As previously announced, the Company's qualification for material was delayed

by customs and there is uncertainty surrounding the timing for completion of

the process. As a result of this delay, the prepayment for the first delivery

and cash inflows from sales will be pushed out in time, which will impact REC

Silicon's short-term liquidity and financial position. To address the

situation, the Company has reduced the utilization of the Moses Lake facility

to conserve liquidity. This is in addition to REC Silicon's continuous review

of alternative options to ensure that the necessary financing of the Company's

capital needs is met going forward.

"We are disappointed that the qualification test for our product has been

delayed and we are taking mitigating actions to manage the situation,

particularly in our operations. This delay together with the scheduled regular

maintenance shutdown at the Butte facility and reduced silicon gas sales

primarily due to the challenging PV market further decreased our financial

results for the quarter. To address the current and anticipated environment,

we are focusing on increasing gases sale opportunities and the Moses Lake

facility has been turned down to save on operating costs while we focus on

improving our quality", said Kurt Levens, CEO.

For more information, please see the attached third quarter 2024 report and

presentation.

The Company will host a digital presentation of the results today at 8:00 a.m.

CET. The presentation can be accessed at www.recsilicon.com or with the

following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20241107_2/

Following the presentation, it will be opened for questions from the audience.

Webcast participants need to register to post questions.

The presentation and the following Q&A session will be in English.

Contacts

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Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@recsilicon.com

About REC Silicon

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REC Silicon is a global leader in silane based high purity silicon materials.

We combine 40 years of experience and best-in-class proprietary technology to

deliver on customer expectations. Our two U.S. based plants have a combined

production capacity of more than 30,000 MT of high purity silane gas. Our

Signature Silane® based products are used in everyday quality of life

technologies, emerging technologies, cutting edge power and memory devices,

high-voltage transmission, as well as renewables. REC Silicon is headquartered

in Lysaker, Norway and listed on the Oslo stock exchange under the ticker:

RECSI.

For more information, go to: www.recsilicon.com

This information is subject to disclosure under the Norwegian Securities

Trading Act, §5-12. The information was submitted for publication at

2024-11-07 07:00 CET.