Alpha Hpa Limited · ASX:A4N
Alpha Hpa — Investor Presentation (May 2024)
48 slides from Alpha Hpa's investor presentation, May 20, 2024
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Slide 2: Disclaimer
DISCLAIMER This investor presentation (Presentation) is dated 20 May 2024 and has been prepared by Alpha HPA Limited (ABN 79 106 879 690) (Alpha, Alpha HPA or the Company). By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, you acknowledge and
Slide 3: Financial and Other Information
FINANCIAL AND OTHER INFORMATION All financial information in this Presentation is in Australian dollars (AUD$ or AUD) unless otherwise stated. Any pro forma financial information of Alpha provided in this Presentation has been prepared on the basis set out, and includes certain adjustments. To the m
Slide 4: Joint Lead Managers disclosure
The Joint Lead Managers, their affiliates and related bodies corporate, are full service financial institutions engaged in various activities, which may include trading, financing, corporate advisory, financial advisory, investment management, investment research, principal investment, hedging, mark
Slide 5: Alpha HPA
ALPHA HPA: We are a technology led, specialty chemicals company We make ultra-high purity aluminium products with a which are: CRITICAL MATERIALS FOR Y HIGH-TECHNOLOGY GROWTH SECTORS HIGH PURITY - HIGH MARGIN - LOW CARBON Alpha is commercialising in 2 Stages-as the HPA FIRST PROJECT STAGE 1 SMALL SC
Slide 6: Overview: HPA First Project Stage 2 FID reached and equity raising
OVERWEWs* = HPA First Project Stage 2: FID reached and equity raising HPA FIRST PROJECT The HPA First Project represents the two- staged commercialisation of the production of high purity aluminium materials « | PROJECT FINANCING Credit approved A$320M facility (plus A$80M cost overrun facility) sec
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS HPA First Project Stage 2 is expected to deliver compelling returns to investors driven by our technology’s highly competitive unit cash costs and demand for multiple alumina products from our customers EXCEPTIONAL PRODUCTION PROFILE OF 10,430TPA' Largest, single-site productio
Slide 8: Our Process and Technology
OUR PROCESS AND TECHNOLOGY Low cost, low energy process - highly cost/purity/carbon disruptive to incumbent processes which utilise aluminium metal feedstock Nano-scale +4N5 (HPA) ALO; +4N5 High Purity Alumina Hydrates Al(OH); or Al-O-OH yD) ORICA by-product ay reagents return ae {A} {do} {a} O HOOH
Slide 9: Our Products
OUR PRODUCTS 10,430tpa of bespoke products for high technology growth sectors! 7 AI(NO,)3.9H,0 Al,O, Al,O3 AI(OH)3 ALO; Ultra High Purity Aluminium Alpha Phase High Purity Gamma Phase High Purity High Purity Alumina High Purity Nano-Alumina Nitrate Alumina Powder & Tablets Alumina Tri-Hydrate (ATH)
Slide 10: Our Process Advantage
Major reduction in process cost and carbon profile compared to incumbent process We don’t use aluminium metal as feedstock We are the first global manufacturer of large volume, aluminium nitrates at world leading high purity (5N+) Enables ultra-high purity alumina and alumina tri-hydrate production
Slide 11: Orica: Yarwun
— ORICA: YARWUN HPA First Project Site Gladstone State Development Area 100% RENEWABLE ENERGY \ baer HPA FIRST PROJECT: apnea
Slide 12: Stage 1: In Production
STAGE 1: IN PRODUCTION . 7 2 enn
Slide 13: A$553M CapEx
• • C F K B D A$553M CapEx1 E A G A B C D I E F J G H H I J K
Slide 14: Comprehensive Government Support
COMPREHENSIVE GOVERNMENT SUPPORT Alpha staff hosting Prime Minister of Australia Anthony Albanese, Federal Minister of Resources Madeleine King, Queensland Premier Steven Miles, and Queensland Minister for Regional Development & Water Glenn Butcher Queensland Government Australian Government export
Slide 15: Product Marketing
PRODUCT MARKETING Strong demand from customers driven by underlying sector growth, decarbonisation and supply chain de-risking Active engagement and qualification sampling -- with end-users representing »300% coverage of Stage 2 project production capacity VOLUME INDICATIONS ACROSS KEY ENGAGEMENT PH
Slide 16: Market Outreach and Pricing
MARKET OUTREACH AND PRICING Extensive 4+ year global market outreach * Detailed, technically driven understanding of market and applications * Pricing obtained by interviews, sales, refined quotations and customer LOIs * Comprehensive database of pricing available for Alpha’s materials ¢ Alpha in pr
Slide 17: Strong Financial Metrics
STRONG FINANCIAL METRICS Compelling HPA First Project Stage 2 financial metrics, ramping up to 87% throughput by FY28 and steady-state production in FY30 HPA First Project Stage 2 Steady-state Financials (does not include Alpha Sapphire) First Project Stage 2 Alpha HPA Price Independent Production v
Slide 18: Alpha's High Purity Materials Unlock Key Li-ion Battery Safety Technology
ALPHA’S HIGH PURITY MATERIALS UNLOCK KEY Li-ION BATTERY SAFETY TECHNOLOGY Zero propagation from battery pack with high purity (AlO-OH) boehmite coated cell casings (Utilises Alpha AFNitrate) Up to 100% reduction in thermal runaway with coatings on graphite anode materials (Utilises Alpha Al-Nitrate
Slide 19: Supplying High Power Semiconductors
(USUPPLYING Hic Power sEmiconpucTors HPA and HPA precursors for: * First sales established * CMP polishing * Semiconductor sector LOI in place for up to 1,000tpa HPA * Thermal interface packaging HPA demand linked to high power semiconductors, particularly silicon-carbide (SiC) Value of SiC Semicond
Slide 20: Cost Profile
COST PROFILE Alpha’s low energy and low carbon production process supports low cost, below incumbent peers HPA cost curve, current operations, 2021, US$/kg' 24 22 Ba Production costs, $/kg, 2021 aes 38 oN FO Ow Note: 1. CRU 2022, company reports. Alpha steady state production from FY30, after by-pro
Slide 21: Nova Phase LOI
Nova Phase LOI First Sapphire Up to 1,000 A$30M A$40M growth units ✓ ✓ ✓ ✓ ✓ ✓
Slide 22: Alpha Sapphire
ALPHA SAPPHIRE: me (<0 » @ > Sapphire blanks i LEDs High purity alumina tablets SEN | * Technology Disruption: Access to new Ebner-Fametec Technology ¢ Supply Crunch: End-user desire to de-link from Russia-China production * Demand Pull: Major new demand from micro-LED adoption Aloha SAPPHIRE 22 Alp
Slide 23: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM Highly experienced Board and Executive Leadership Team, with a track record of project delivery Norman Seckold Chairman 40+ years leading mineral Tony Sgro lon-Executive Director emical engineer with 45+ year: jement positions Rimas Kairaitis Managing Director ears in min
Slide 24: Project Execution Timetable
PROJECT EXECUTION TIMETABLE Positioned to commence construction in Q@3 2024 2024 HPA production line ramp-up and production Product marketing and customer contracts Financing Financial approval (FID) Frontend engineering Long lead time orders Vendor manufacturing and supply Buildings and civil works
Slide 25: Orica Strategic Investment
ORICA STRATEGIC INVESTMENT 20 2020 020222023) Chemical Definitive 5% Strategic Supported Commence Counterpart; Technical MoU. y Commercial Investment & North Alpha Sapphire Diligence Gladstone Agreements American MoU Raising AS40M ¥Y_ Technical and commercial validation via Orica due diligence and i
Slide 26: Independent Certification
INDEPENDENT CERTIFICATION CERTIFICATE CERTIFICATE ALPHA HPA LTD (GROUP) SUSTAINABILITY QUALITY ENVIRONMENTAL MGMT = 7 a= | By i", 4 =D 1 ae a aA » oa \ 4 a , My CERTIFICATE WORK, HEALTH & SAFETY 26
Slide 27: World Leading Emissions
tCO,et/t 12 10 o WORLD LEADING EMISSIONS 50-70% lower CO, emissions over incumbent (alkoxide) process Scope 1&2 | Scope 1+2-3 with credits |*| “ 5.03 3.98 3.88 0.56 Alpha phase High Purity High Purity Hi High Purity Aluminium Gemma phase High Purity Aluminium Nitrate Boehmite lumi ite Tri-hydroxice
Slide 28: Financing
aut ee ~* Financing 28
Slide 29: Equity Raising Offer Summary
EQUITY RAISING OFFER SUMMARY Offer structure and size Placement Price Cornerstone commitment Share Purchase Plan Underwriting A$120 million institutional placement (Placement) comprising — unconditional placement to raise approximately A$64 million using the Company's Listing Rule 7.1 placement capa
Slide 30: Sources and Uses of Funds
SOURCES AND USES OF FUNDS Project execution to commence immediately, with first production targeted for 1H FY27 4 F — ae. 3 : 5 re ém $ ‘ * Funds raised under the Placement will be used to pay equity [Sources SC hs financing costs and immediately commence Stage 2 project Institutional Placement 120
Slide 31: Debt Funding Summary and Key Terms
DEBT FUNDING SUMMARY AND KEY TERMS Construction facility Cost Overrun Fac! The State of Queensland (as the lender of . . . record for a commitment from NAIF) Export Finance Australia (EFA) NAIF/EFA 50:50 Borrower Solindo Pty Limited (wholly owned subsidiary of Alpha HPA Limited) Alpha HPA Limited A$
Slide 32: Indicative Equity Raising Timeline
INDICATIVE EQUITY RAISING TIMELINE Record Date for Eligibility to participate in SPP 7:00pm (AEST), Friday, 17 May 2024 Trading Halt lodged and announcement of Placement Monday, 20 May 2024 Announcement of completion of Placement and trading halt lifted Tuesday, 21 May 2024 Settlement of Tranche 1 P
Slide 33: Appendix A: Key Risks
Appendix A: Key Risks
Slide 34: Key Risk Disclosure
KEY RISK DISCLOSURE This section discusses some of the key risks associated with an investment in shares in Alpha HPA Limited (“Shares”). There are a number of risk factors, specific to Alpha HPA Limited (“Company” or "Alpha”) and of a general nature, which may affect the future operating and financ
Slide 35: Key Risk Disclosure (continued)
KEY RISK DISCLOSURE(continued) Risks associated with an investment in Shares Production and cost estimates Pre-development stage There are general risks associated with investments in equity capital and shares in companies operating in the industries in which Alpha operates. Events may occur within
Slide 36: Key Risk Disclosure (continued)
KEY RISK DISCLOSURE(continued) Project approvals Environmental, social and governance risk Climate risk Cyber risk Competition Personnel and labour risks Updates made to the layout of Stage 2 to accommodate additional product lines will require certain amendments to approvals and agreements from var
Slide 37: Key Risk Disclosure (continued)
KEY RISK DISCLOSURE(continued) Work, health and safety Technological developments / disruption Product pricing Foreign exchange rate Debt financing, liq and access to capital Delay in development of Stage 2 of the HPA First Project The Company strives to conduct its activities to the highest standar
Slide 38: Key Risk Disclosure (continued)
KEY RISK DISCLOSURE(continued) Intellectual property Materials handling Russia-Ukraine and Israe-Palestine conflict General litigation and disputes Unforeseen risk The Company's ability to leverage its innovations and know-how is contingent on its capacity to protect its intellectual property and as
Slide 39: Appendix B: International Offer Restrictions
Appendix B: International Offer Restrictions
Slide 40: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 41: International Offer Restrictions (continued)
INTERNATIONAL OFFER RESTRICTIONS(continued) Cayman Islands No offer or invitation to subscribe for New Shares may be made to the public in the Cayman Islands or in any manner that would constitute carrying on business in the Cayman Islands. This document has not been, and will not be, registered wit
Slide 42: International Offer Restrictions (continued)
INTERNATIONAL OFFER RESTRICTIONS(continued) This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this Norway document shall not be deemed to constitute an offer to the public in
Slide 43: International Offer Restrictions (continued)
INTERNATIONAL OFFER RESTRICTIONS(continued) This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this document nor the New Shares have been approved by the S
Slide 44: International Offer Restrictions (continued)
INTERNATIONAL OFFER RESTRICTIONS(continued) United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities laws of
Slide 45: Appendix C: Placement Agreement Summary
Appendix C: Placement Agreement Summary
Slide 46: Placement Agreement Summary
PLACEMENT AGREEMENT SUMMARY Alpha has entered into a placement agreement with the JLMs in respect of the Placement (Placement Agreement) The Placement Agreement contains customary representations and warranties and indemnities in favour of the JLMs. Details of the fees payable to the JLM are include
Slide 47: Placement Agreement Summary (continued)
f) ASX announces that Alpha's shares will be delisted, removed from quotation, withdrawn from admission to trading status or suspended from quotation (which, for the avoidance of doubt, does not include a trading halt requested to facilitate the Placement); g) ASX notifies Alpha or a JLM that uncond
Slide 48: Thank You
Thank You Rimas Kairaitis Managing Director rkairaitis@alphahpa.com.au +61 408 414 474 Robert Williamson Director and COO rwilliamson@alphahpa.com.au +61 407 125 176 Rob Lord Investor Relations rlord@alphahpa.com.au +61 400 008 553 Cameron Peacock Business Development cpeacock@alphahpa.com.au +61 43