Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — The CEO Sessions (February 2017)
29 slides from Altech Batteries's conference presentation, Feb 21, 2017
Slide 1: Company Presentation – The CEO Sessions
Altech Chemicals Limited ATC For personal use only The CEO Sessions ASX Exchange Auditorium Company Presentation 21 February 2017
Slide 2: Our Vision
For personal use only To be a world leading producer of high purity alumina (HPA) – 4,000 tpa Our Vision
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%) • 99.99% (4N) HPA sells for US$23,000 tonne and HPA • 70% demand - Asia Pacific region
Slide 4: What is HPA?
For personal use only • Purified alumina (Al2O3) • 99.99% (4N) purity • Smelter Grade Alumina (SGA) ~ 99.5% (5,000 ppm impurities mainly sodium) • Bayer Process uses sodium hydroxide What is HPA? (NaOH) • Sodium impurity is problem for electronics industry
Slide 5: 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% $400 per t HPA 99.9% (3N) $6,000 per t HPA 99.99% (4N) $23,000 per t HPA 99.999% (5N) $50,000 per t for Purity Our Target Business
Slide 6: Sapphire Production
Sapphire Production For personal use only HPA Furnace Sapphire crystal boule
Slide 7: Sapphire Wafer Production
Sapphire Wafer Production For personal use only Sapphire wafer Sapphire glass screen
Slide 8: Lithium-ion Battery Separator
Lithium-ion Battery Separator For personal use only Anode Sheet Separator Cathode Sheet HPA used in lithium-ion batteries
Slide 9: Demand for HPA
For personal use only • Global HPA demand 25,315tpa in 2016 1 • Expected to increase to 86,831tpa by 2024 1 • Growing at a CAGR of 17% Demand • Driven by LED growth & Lithium batteries for HPA • Entering a fast growing market Source: Persistence Research “High Purity Alumina Market – Global Industry
Slide 10: 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 11: Altech's Differentiation
Altech’s Differentiation For personal use only Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina 99.5% Aluminium Metal 99.99% (4N) HPA US$3,000 per tonne ALTECH HPA PLANT One Single Process Step Kaolin 99.99% (4N) HPA (Aluminous Clay)
Slide 12: Low-impurity Kaolin Deposit
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 Darling Canadian HPA Altec
Slide 13: Going Commercial
For personal use only • Work started in 2011 • Established HCl technology from 1980s • Extensive laboratory testwork Going • Pilot laboratory testing Commercial • Completed successful BFS
Slide 14: 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 15: Altech's HPA Plant - Malaysia
Altech’s HPA Plant - Malaysia For personal use only HCl Plant Acid Leach Utility Sub Station Maintenance Gatehouse Administration Carpark
Slide 16: Altech's HPA Plant - Malaysia
Altech’s HPA Plant - Malaysia For personal use only Proposed HPA plant office
Slide 17: Highly Attractive BFS
For personal use only • Capital cost estimate US$78.7m • Payback period 3.7 years • Pre-tax NPV9 of US$357.5m • Highly attractive IRR of 33.3% Highly • Operating cost of US$9,070/t Attractive • Sale price of US$23,000/t BFS • Margin of US$13,930/t • EBITDA US$55.7m pa Refer ASX Announcement titled “
Slide 18: Bottom Quartile for Op 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 For
Slide 19: Off take sales with Mitsubishi
For personal use only • Off take sales with Mitsubishi • First ten years of HPA operations • Secures sales for 100% of 4,000tpa HPA production Mitsubishi • Exclusive global distributor signs full • Experienced with HPA off take • Strategic priority – Lithium batteries
Slide 20: Debt funding with KfW IPEX-Bank
For personal use only • Debt funding with KfW IPEX-Bank • 60% of plant – German suppliers • Target of US$70m We are at the • Export Credit cover of US$60m • Target sole lender – KfW IPEX-Bank funding • German M+W Group EPC contractor stage
Slide 21: Independent DD consultants appointed
For personal use only • Independent DD consultants appointed • Technical, legal and market consultants • Thorough DD including site visits • KfW DD meeting with Mitsubishi (Tokyo) Debt Due • Confirmatory pilot plant test work in Diligence South Africa, Australia and Germany • Preliminary DD report –
Slide 22: Confirmatory DD Pilot Plant Tests
Confirmatory DD Pilot Plant Tests For personal use only Australia Acid leach test work Crystalliser test work Simulus Laboratories Simulus Laboratories South Africa Roaster test work - Drytech Roaster internal temperature at 700˚C
Slide 23: Confirmatory DD Pilot Plant Tests
Confirmatory DD Pilot Plant Tests For personal use only Germany Jet mill test work – Netzsch Jet mill test work – Netzsch
Slide 24: Market DD Study by Persistence
For personal use only • Annual HPA demand forecast of 86,831tpa by 2024 (est. 2016: 25,315tpa) • Altech’s strategy of focusing on 4N HPA endorsed Market DD • HPA use in lithium-ion batteries offers Study by incremental demand • Altech targeting 50% sales in Japan Persistence • Japan price of 4N HPA
Slide 25: Detailed design at advanced stage
For personal use only • Detailed design at advanced stage • 55 M+W engineers on the project • Germany, Singapore and Malaysia Detailed • Process plant, equipment & piping (Germany) Design is • Civil, buildings, electrical, instruments progressing (Singapore) well • Overall about 90% specified • Over
Slide 26: Timeframe to market
For personal use only • Debt funding term sheet end Q2 2017 • Project equity Q3 2017 • Site works commencing Q3 2017 Timeframe • 18 months construction to market • First product due early 2019
Slide 27: Altech growth performance
For personal use only Altech Chemicals Limited Market Capitalisation - end of month ($m) $45.0 $42.6 $35.9 $35.0 $31.8 $31.9 $27.9$28.8 $29.3$29.3 $25.0 $16.1 $14.3 $17.2 $21.3 Altech growth performance $14.8 $15.8$15.0$16.8 $14.2 $15.0 $12.1 $7.2 $7.3 $5.0 Apr-16 Sep-16 Sep-15 Feb-16 Aug-15 Nov-15
Slide 28: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 29: 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