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REC Silicon - Fourth quarter 2019 results

Fornebu, Norway – February 14, 2020: REC Silicon ASA (REC Silicon) reported fourth quarter 2019 revenues of USD 31.8 million. EBITDA for the fourth quarter was a loss of USD 3.0 million and included lower average sales prices, lower sales volumes, and higher electricity costs for the semiconductor materials manufacturing facility in Butte, Montana.

REC Silicon reported a cash balance of USD 29.4 million on December 31, 2019.

Polysilicon sales volumes for the quarter were 643 MT and inventory decreased by 362 MT.

Silicon gas sales volumes for the second quarter were 857 MT compared to guidance of 830 MT. Silane gas prices decreased by 8.2 percent compared to the third quarter 2019. Fourth quarter semiconductor polysilicon production volumes were 175 MT compared to guidance of 130 MT.

On January 15, 2020 the Phase I economic and trade agreement was signed by the Government of the United States and the Government of China. This agreement prioritizes polysilicon and contains commitments for China to purchase goods manufactured in the United States during 2020 and 2021 which include solar grade polysilicon. REC Silicon has been advised by US government officials that specific commitments for China to purchase specific quantities of solar grade polysilicon manufactured in the United States are contained in non-public annexes to the agreement. REC Silicon has received indication from these US government officials that Chinese markets for solar grade polysilicon are open to US solar grade polysilicon without tariffs and that these commitments override the extension of tariffs on US made polysilicon announced by the Ministry of Commerce of the People’s Republic of China on January 19, 2020.

Tore Torvund, company CEO commented "We are very pleased that the trade agreement between the US and China includes solar grade polysilicon. We are currently evaluating the potential restart of operations at the FBR facility in Moses Lake.”

For more information, please see the attached fourth quarter 2019 report and presentation.

A presentation of the results will be held at 8:00 a.m. CET at Hotel Continental, Stortingsgata 24/26, Oslo, Norway.

A live webcast from the presentation can be accessed at www.recsilicon.com or with the following link: https://channel.royalcast.com/webcast/hegnarmedia/20200214_5/

It will also be possible to listen to the presentation through a conference call. To join this event, use one of the following access numbers. Please make sure to dial in 5-10 minutes prior to the scheduled start time.

Norway Dial-in (Tollfree/Freephone): 800 51 084
Norway, Oslo (Dial-in Local): +47 2100 2610
United Kingdom (Dial-in Tollfree/Freephone): 0800 358 6377
United Kingdom (Dial-in Local): +44 (0) 330 336 9125
United States (Dial-in Local): +1 929 477 0402
United States/Canada (Dial-in Tollfree/Freephone): 800 204 4368
Other international: +44 (0) 330 336 9125

Participant Passcode: 421454

For further information, please contact:
James A. May II, Chief Financial Officer
Phone: +1 509 989 1023
Email: james.may@recsilicon.com

Nils O. Kjerstad
IR Contact
Phone: +47 9135 6659
Email: nils.kjerstad@crux.no

About REC Silicon

REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine over 30 years of experience and proprietary technology with the needs of our customers, with annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (REC.OL), the Company is headquartered in Fornebu, Norway.

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

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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