Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — 121 Mining Investment London (November 2017)
27 slides from Altech Batteries's conference presentation, Nov 28, 2017
Slide 1: Company Presentation - 121 Mining Investment London
Altech Chemicals Limited ASX: ATC FSE:A3Y For personal use only 121 Mining Investment - London Company Presentation Iggy Tan Managing Director
Slide 2: World leading producer of high purity alumina (HPA)
For personal use only World leading producer of high purity alumina (HPA) Our Vision 4,500 tonnes pa
Slide 3: About Sapphire and HPA
For personal use only • Sapphire as hard as diamond • Forms in nature – temp and pressure • Synthetic sapphire wafers About • Used in LEDs, semiconductors, watches Sapphire • Needs pure alumina (99.99%) • 70% demand - Asia Pacific region and HPA
Slide 4: Our Target Business
For personal use only Smelter Grade High Purity High Purity High Purity High price Alumina SGA 99.5% Alumina HPA 99.9% (3N) Alumina HPA 99.99% (4N) Alumina HPA 99.999% (5N) for purity US$400 per t US$6,000 per t US$27,000 per t US$50,000 per t Our Target Business
Slide 5: High Purity Alumina
High Purity Alumina For personal use only Synthetic Sapphire Sapphire Furnace (2,000 oC) Sapphire Crystal Boule High Purity Alumina Lithium-Ion Batteries Battery Separators / Cathode / Anode Lithium-Ion Batteries
Slide 6: Lithium-ion Battery Separator
Lithium-ion Battery Separator For personal use only Anode Sheet Separator Cathode Sheet HPA is used in lithium-ion battery separator coatings
Slide 7: Sapphire Applications
Sapphire Applications For personal use only LEDs Sapphire Wafer / Substrate Light Emitting Diodes LED Glass Sapphire Cores Sapphire Glass Smartphone and Lenses
Slide 8: Sapphire Glass
Sapphire Glass For personal use only HTC U Ultra (128Gb) o February 2017 o Sapphire crystal display Smartphone sapphire screen iPhone o Sapphire crystal lens o Finger print recognition
Slide 9: Sapphire Glass Scratch Test
Sapphire Glass Scratch Test For personal use only
Slide 10: Global High Purity Alumina Forecast 2015-2024
For personal use only Global High Purity Alumina Forecast 2015 -2024 Source: Persistence Market Research 86,831 “High Purity Alumina Market – Global Industry Analysis and Forecast 2016-2024” 75,637 Demand HPA Comsumtion tpa 65,036 55,350 39,786 46,748 for HPA 34,328 29,669 25,315 21,309 2015 2016 20
Slide 11: Six largest HPA producers
For personal use only • Six largest HPA producers: China (3), Japan (1), South Africa (1) France (1) Sumitomo Chemicals (Japan) 3,020 Huantou, 800 Others (15), 3,570 Sasol (South Africa) 1,800 Current HPA Dailian Rall, 600 Producers Nippon Light Metal, 1,100 Baikowski (France) Hebei Pengda (China) 1
Slide 12: Altech's Differentiation
Altech’s Differentiation For personal use only Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina Aluminium Metal 99.99% (4N) 99.5% HPA ~US$3,000 per tonne ALTECH HPA PLANT One Single Process Step Kaolin 99.99% (4N) (aluminous clay) HPA
Slide 13: JORC Mineral Resources and low-impurity kaolin feedstock
For personal use only • Very low iron (Fe) due to weathering • 12.7Mt JORC Mineral Resources^ (250 yrs) • Measured Resources 1.5Mt @ 30% Al2O3 • Indicated Resources 3.3Mt @ 30% Al2O3 • Inferred Resources 7.9Mt @ 29.1% Al2O3 • Deposit in Western Australia Low-impurity Bauxite Canadian Kaolin Feedstoc
Slide 14: Altech owns 100% of kaolin deposit in WA
For personal use only • Altech owns 100% of kaolin deposit in WA • Low environmental impact • 130kms from Fremantle Port Meckering • Mining lease (M70/1334) granted Kaolin Deposit • Ore Reserve 1.2Mt @ 30% Al2O3 for 30 year (stage 1) mine-life in Aust
Slide 15: Altech's HPA Plant - Malaysia
Altech’s HPA Plant – Malaysia For personal use only Crystallisation Plant Residue Plant Acid Leach Calcination Final Product Kaolin Calcination Kaolin Plant Sea container unloading Security
Slide 16: Lower quartile costs
For personal use only • Lower quartile costs • Kaolin feedstock shipped from WA • Chemical-zoned industrial park (Tanjung Langsat) HPA Plant to • Sea container ports be in Johor, • Plant site secured Malaysia • Malaysian government incentives
Slide 17: New HPA Demand + Established Process + Unique Deposit + Experienced People
For personal use only New HPA Demand + Established Process + Unique Deposit + Experienced People Shareholder Value Experienced People High Purity Business New Demand Deposit Strategy (Electronics) Established HPA HCl Process “the last piece of the puzzle is in place”
Slide 18: Final Investment Decision Study
For personal use only • Pre-tax NPV7.5 US$ 505 million • Internal Rate of Return (IRR) 22% • Payback (full rate) 3.9 years Final • EBITDA US$ 76 million p.a. Investment • Capital cost US$ 298 million Decision Study • Total target debt of US$ 185 million FIDS • Production Costs - US$ 9.90/kg • LT Sal
Slide 19: High Case Economics
For personal use only • Current price in Japan - US$ 40.0/kg • Pre-tax NPV7.5 US$ 1.1 billion • Internal Rate of Return (IRR) 33% High Case • Payback (full rate) 2.2 years • EBITDA US$ 133 million p.a. Economics • Production Costs - US$ 10.50/kg • Sale Price - Gross Margin – 74% 19
Slide 20: Bottom quartile operating costs
For personal use only • Competitors US$14 - 17,000/t (Breakaway Research) 1. We own our feedstock 2. Main reactant HCl re-used 3. Plant in low cost country (Malaysia) Bottom Quartile Altech for Op Costs Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Fo
Slide 21: Off-take sales agreement with Mitsubishi
For personal use only • Off-take sales agreement with Mitsubishi • First 10 years of HPA operations • Secures sales for HPA plant production • Exclusive global distributor Mitsubishi • Experienced with HPA signs • Strategic priority: lithium-ion batteries off-take
Slide 22: Final Stage of Debt Funding Approval
For personal use only • Target total debt of US$ 185 million • US$ 165 million export credit finance • Debt funding with KfW IPEX-Bank Final Stage of • 50% of plant – German suppliers Debt Funding • Low interest, long tenure Approval • ECA approval date 14 Dec 2017
Slide 23: SMS group German EPC contractor
For personal use only • SMS group German EPC contractor • Lump sum turn key contract • Completion and cost risk • Process & throughput guarantee Lump Sum • Equity investment contribution Turn Key • Detailed design at advanced stage Contract • Completing EPC cost estimate 23
Slide 24: Latest News
For personal use only • Raised A$17 million on 26 Oct 2017 • SMS commits further US$11 million at project equity stage (price to be set then) Latest News • All consultants report completed & Final ECA • Expert opinion report completed Approval • IMA ECA approval meeting 14 Dec 2017 24
Slide 25: Market Capitalisation - end of month
For personal use only Altech Chemicals Limited Market Capitalisation - end of month ($m) $70.0 62 $60.0 48 $50.0 45 40 Altech 39 $40.0 35 35 36 36 35 36 31 31 33 32 31 32 31 $30.0 $20.0 12 16 15 14 16 15 17 14 15 17 Growth Performance 8 8 8 7 7 $10.0 7 7 $- Sep-15 Feb-15 Apr-15 Feb-16 Apr-16 Sep-16
Slide 26: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 27: Forward-looking Statements
For personal use only Forward-looking Statements The Company reports that the ECA application process is set for end 2017 and there is no certainty that the export credit and debt finance will be approved. The Company makes no representation or warranties whatsoever as to the outcome of the ECA appr
Altech Chemicals — 121 Mining Investment London (November 2017) on 6ix