Mr. Mark Smith reports

IBC ADVANCED ALLOYS REPORTS FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2023

IBC Advanced Alloys Corp. has released its financial results for the quarter and nine months ended March 31, 2023.

Highlights of the quarter as compared with the prior-year period (unless otherwise noted, all financial amounts in this news release are expressed in U.S. dollars):

• Consolidated sales of $7.8-million and $21.2-million in the quarter and year to date (YTD), respectively, strengthened by 23.5 per cent and 3.3 per cent.
• The copper alloy division registered its sixth consecutive quarter of rising sales, with revenue jumping by 78.6 per cent in the quarter and by 59.2 per cent YTD.
• Engineered materials (EM) division sales were off in the quarter and YTD largely due to lower demand for beryllium-aluminum products used in machines that manufacture semiconductor chips as compared with the prior-year periods, when demand was at a historic high.
• Consolidated adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) were $583,000 and $320,000 in the quarter and YTD, respectively. IBC booked a loss for the quarter of $511,000 (one cent/share) and a year-to-date loss of $2.9-million (three cents).

Consolidated results

Sales grew in the quarter and year to date compared with the comparative periods. The sales and profitability gains in the copper alloys division were offset by weaker performance in the EM division as seen in the attached table.

"The copper alloys division continues to show strong revenue and performance growth across the board, and our new consolidated and vertically integrated foundry in Indiana has a large and growing order book that they continue to work to fulfill," said Mark A. Smith, chairman and chief executive officer of IBC. "While it was another challenging quarter for our engineered materials division, I am pleased to see progress being made toward improving yield recoveries and expanding sales leads."

Copper alloys division

Copper alloy division enjoyed its sixth consecutive quarter of rising sales. Operating performance has remained strong as the division takes advantage of its consolidated foundry and forge operations.

Engineered materials division

Engineered materials has continued to experience lower demand for beryllium-aluminum products used to manufacture semiconductor chips as compared with the prior-year periods when demand was at historic highs. This is reflected in lower sales and current-period operating losses as seen in the attached table.

Full results can be seen in the company's financial statements and management's discussion and analysis (MD&A), available at SEDAR and on the company's website.

Operating income (loss)

Operating income (loss) represents income or loss for the quarter, excluding foreign exchange loss, interest expense, interest income, other income (expense) and income taxes that the company does not believe are reflective of its core operating performance during the periods presented. A reconciliation of the quarter and year-to-date loss to operating income (loss) as seen in the attached table.

About IBC Advanced Alloys Corp.

IBC is a leading beryllium and copper advanced alloys company serving a variety of industries, such as defence, aerospace, automotive, telecommunications and precision manufacturing. IBC's copper alloys division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper and aluminum bronze. IBC's engineered materials division makes the Beralcast family of alloys, which can be precision cast and are used in an increasing number of defence, aerospace and other systems, including the F-35 joint strike fighter. IBC has production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.

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