Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — Investor Presentation (July 2015)
36 slides from Altech Batteries's investor presentation, Jul 24, 2015
Slide 1: Company Presentation: Completion of Bankable Feasibility Study
Altech Chemicals Limited (ASX:ATC) For personal use only Company Presentation Completion of Bankable Feasibility Study Iggy Tan Managing Director
Slide 2: Our Vision
For personal use only To be a world leading producer of high purity alumina (HPA) Our Vision
Slide 3: Sapphire & Ruby - natural form of HPA
For personal use only • Sapphire & Ruby - natural form of high purity alumina (HPA) • Formed by mother nature like diamonds • Colour from impurities Sapphire • Extremely hard – no. 9 on Mohs scale Gemstone • Third hardest mineral behind diamond • Scratch-resistant artificial sapphire glass made from
Slide 4: What is HPA?
For personal use only • Purified alumina (Al2O3) • Greater than 99.99% (4N) purity • Maximum allowable impurities of 100ppm • Smelter Grade Alumina (SGA) ~ 99.5% (5,000 ppm impurities mainly sodium) What is HPA? • Bayer Process uses sodium hydroxide (NaOH) • Sodium impurity is problem for electronic
Slide 5: Artificial sapphire process
For personal use only • HPA is placed in an autoclave • Heated to >2,000 oC melting point under intense pressure • Forms single crystal sapphire (boule) Artificial • Allowed to cool slowly – 22 day cycle Sapphire • Diamond cutting equipment to cut sapphire shapes Process • Heat & scratch resistant
Slide 6: Our Target Business: High Price for Purity
For personal use only Smelter Grade Alumina High Purity Alumina High Purity Alumina High Purity Alumina High Price SGA 99.5% $0.4 per Kg HPA 99.9% (3N) $1 -10 per Kg HPA 99.99% (4N) $10-50 per Kg HPA 99.999% (5N) $50-150 per Kg for Purity Our Target Business
Slide 7: Welcome to the World of HPA
Welcome to the World of HPA For personal use only Sodium Lamps Hybrid Cars Display Screens Abrasives Ceramic Ultrafiltration Electronic Substrates Tools Special Ceramics Semiconductors HP Refractory Polishing Cosmetics Medical Abrasives Separation Headlights Membranes LED Lighting Optical Lenses Ind
Slide 8: Uses of HPA
For personal use only High Purity Alumina Applications Semi Phosphor LEDs Other Based conductors Applications Applications Uses of HPA 99.99% 4N Smartphone Others Phosphor sapphire glass is 7% 16% a new market Semiconductors 22% LED 55% Source: Technavio Research “2014-2018 Global High-purity Alumin
Slide 9: Technavio Research demand
For personal use only Technavio Research • Global HPA demand 19,040tpa in 2014 • Expected to increase to 48,230tpa by 2018 Demand • Growing at a CAGR of 28% for HPA
Slide 10: HPA Demand & Growth Forecast
For personal use only HPA Demand & Growth Forecast 60.0 50.0 48.2 39.9 40.0 30.0 25.3 32.4 Demand 20.0 14.1 19.0 for HPA 10.0 0.0 2013 2014 2015 2016 2017 2018 Volume ktpa Source: Technavio Research “2014-2018 Global High-purity Alumina Market” Global shipments of LED lamps forecast to increase from
Slide 11: HPA Demand from Smartphones
For personal use only • Estimate 30g1 of HPA in an iPhone sapphire glass screen • 500 million smartphones sold per year HPA • If sapphire glass technology was implemented Demand from o It would require about 15,000tpa of HPA o That’s four of our proposed 4,000tpa plant Smartphones • There will be a
Slide 12: Smartphones with Sapphire Crystal Screen
For personal use only • High end Vertu TI with sapphire crystal screen • Rest will follow Smartphones Sapphire Crystal Screen
Slide 13: Sapphire glass: Apple Watch & iPhone
For personal use only sapphire glass apple watch & iphone 7
Slide 14: More Sapphire Display Factories
For personal use only More Sapphire Display Factories
Slide 15: Geographic HPA Demand
For personal use only • 70% of HPA demand - Asia Pacific region (APEC) • Region for the world’s manufacturing • Altech’s HPA plant (Malaysia) well-positioned HPA to service APEC region • Transport, customer service, technical Geographic credibility Americas Demand 14% Europe, Middle East, Africa 16%
Slide 16: Current HPA Producers
For personal use only • Six largest HPA producers • 3 Chinese, 1 Japanese, 1 Sth African, 1 French Sumitomo Chemical , 3,020 Huantou, 800 Others (15), 3,570 Sasol, 1,800 Current HPA Dailian Rall, 600 Producers Nippon Light Metal, 1,100 Baikowski, 1,200 Hebei Pengda, 3,000 Xuancheng Jing Rui, Zibo Xi
Slide 17: Altech's Differentiation
Altech’s Differentiation For personal use only Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina 99.8% Aluminium Metal 99.99% HPA Or other high purity Al compounds ALTECH HPA PLANT One Single Process Step Aluminous Clay 99.99% HPA
Slide 18: Low-impurity Aluminous Clay Feedstock
For personal use only • Processed by mother nature • Very low Iron (Fe) due to weathering • Silica is non reactive – easily removed Bauxite Canadian Altech Low-impurity Darling HPA HPA Range * Project Project Aluminous Clay Al2O3 (%) 34.5 22.77 30.5 Feedstock SiO2 (%) 21.5 53.29 56.3 Fe2O3 (%) 21.2
Slide 19: Aluminous Clay Deposit
For personal use only • Altech owns 100% of deposit in W Aust • Low environmental impact • Previously mined for kaolin – trial pit Meckering • Low stripping ratio Aluminous Clay • 65Mt JORC Resource Deposit • 130kms from Fremantle Port
Slide 20: Altech's HPA Process
For personal use only • Use a standard HCl leach process • Developed in 1980’s by alumina industry • Couldn’t compete with Bayer SGA costs • But great at producing HPA (no sodium ions) Altech’s • However little demand of HPA in 1980s HPA Process • Demand of HPA is here today
Slide 21: High Purity Business Strategy
For personal use only New HPA Demand + Established Process + Great Deposit + Experienced People Shareholder Value Experienced People High Purity Altech New Demand Deposit Business (Electronics) Strategy Established HPA HCl Process “the last piece of the puzzle is in place”
Slide 22: Development Program To Date
For personal use only • Started development work in early 2011 • Many studies and testwork programs • No issues about producing 99.99% HPA • Supporting lab pilot plant test work Development • Hydromet process not complex Program • Conventional proven plant and equipment • Bankable Feasibility Study
Slide 23: Altech HPA Process
Altech HPA Process WESTERN AUSTRALIA For personal use only Campaign Mining ROM Screening Filter Press Beneficiated Kaolin To Fremantle Drum Scrubber > 0.5mm Dryer Shipping Calcined Clay Feed Storage Hydrochloric Acid Cooler Calciner HCl Gas Milling Polishing Filter Filter 600 C MALAYSIA Screening St
Slide 24: Meckering Operation
For personal use only Meckering Operation
Slide 25: Meckering Plant
Meckering Plant For personal use only Filtration Oversize Disposal Drum Scrubber Screening Dryer Filtration ROM Feed Dryer Baghouse
Slide 26: Beneficiated Kaolin Shipping
Beneficiated Kaolin Shipping For personal use only
Slide 27: Tanjung Langsat Industrial Park, Johor Bahru
For personal use only • Tanjung Langsat Industrial Park, Johor Bahru (Malaysia) • Al clay feedstock shipped from WA • Operating costs ~40% lower than HPA Site Australia Location • Capital costs expected to be 50-60% lower
Slide 28: Malaysian HPA Operation
Malaysian HPA Operation For personal use only HPA LOCATION • Hydrochloric acid, sulphuric acid, power & natural gas • International container sea-port & Singapore • Investment incentives
Slide 29: Malaysian HPA Operation
Malaysian HPA Operation For personal use only Acid Leach Cooler Silica Neutralisation Feed Calciner Beneficiated Kaolin Warehouse Silica Removal Purification Jet Milling & Bagging Roaster Product Calciner Final Product Product Cooler
Slide 30: Highly Attractive BFS
For personal use only • Capital cost estimate US$76.9 m • Payback period 3.8 years • Pre-tax NPV10 of US$326 m • Highly attractive IRR of 30.3% Highly • LT sale price forecast of US$23,000/t for 99.99% Attractive (4N) product BFS • Opex of US$8,140/tonne • EBITDA of US$59.4 million
Slide 31: Highly Attractive BFS quote
For personal use only “It is not often that you see the NPV (US$ 326m) of a project, 4 times the Highly multiple of the capital cost estimate Attractive (US$77m)” Iggy Tan MD BFS
Slide 32: Bottom Quartile for Operating Costs
For personal use only Bottom quartile for operating costs – Why? 1. We own our feedstock 2. Large scale economy 4,000 tpa – one train Bottom 3. Main reactant HCl re-used Quartile 4. Minimal impurity removal costs for Op Costs 5. Plant in low cost country (Malaysia)
Slide 33: Project Finance
For personal use only • Commenced discussions with Asian banks • Targeting around $55 m project debt • Structured project finance options • Europe based bonds Project • Product off take phase Finance • MIDA tax incentives • Detailed engineering & permitting
Slide 34: Next new age materials boom
For personal use only “HPA will be part of the next “new age materials boom” like rare earths, lithium and graphene” Iggy Tan MD
Slide 35: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 36: Forward-looking Statements
For personal use only Forward-looking Statements This announcement contains forward-looking statements which are identified by words such as ‘anticipates’, ‘forecasts’, ‘may’, ‘will’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, ‘plan’ or ‘intends’ and other similar words that involve ris