Alpha Hpa Limited · ASX:A4N
Alpha Hpa — Investor Presentation (October 2020)
27 slides from Alpha Hpa's investor presentation, Oct 6, 2020
Slide 1: Investor Presentation: HPA First Project
Alpha HPA ABN 79 106 879 690, , ore INVESTOR PRESENTATION HPA FIRST PROJECT HIGH PURITY ALUMINIUM PRODUCTS FOR THE LITHIUM-ION BATTERY (LIB) & LED MARKETS
Slide 2: Cautionary Statement
Cautionary Statement The Definitive Feasibility Study (OFS) referred to in this presentation has been undertaken to assess the technical and financial viability of the HPA First project. The DFS is based on the material assumptions about the availability of funding and the pricing received for HPA.
Slide 3: HPA First Project
HPA First Project Alpha HPA Alpha HPA is dedicated to the commercialisation of its proprietary solvent extraction (SX) and refining process for the manufacture of high purity alumina (HPA) and related products = The HPA First Project Alpha HPA is targeting key growth markets linked to the de-carboni
Slide 4: HPA First Project: products and target markets
HPA First Project: Alpha HPA = The key target markets of the HPA First Project remain the LED lighting and Lithium-lon Battery (LiB) markets = The HPA First Process flexibility allows the business to penetrate these markets via numerous high-purity products as set out below PRODUCT HPA First Project
Slide 5: HPA First Project: Lithium-ion battery applications
HPA First Project: pow a —_—__ HPA FIRST APPLICATION PRODUCTS HPA FIRST APPLICATION PRODUCT Alumina particle . . coating of High-purity cathode active Al-Precursor materials Alumina particle High-purity no Al-Precursor Co-precipitation pian Or NCA and High-purity és NCMA cathode Al-Precursor active
Slide 6: HPA First Project: LED applications
HPA First Project: APPLICATION Synthesis of Aluminate (YAG) Phosphors for white LEDS HPA FIRST PRODUCT HPA + High-Purity Al-Precursor Ga-N circuit & Active Layers Phosphor cap LED CHIP ARCHITECTURE SAPPHIRE SUBSTRATE HPA FIRST APPLICATION PRODUCT Sapphire Glass High-purity wafer substrate alumina pe
Slide 7: The LED Lighting Market — a major player in de-carbonisation
The LED Lighting Market — a major player in de-carbonisation Alpha HPA Alpha HPA is targeting the sapphire glass >> LED lighting market LED lights are 50-70% more efficient than incandescent globes Lighting is responsible for 6% of global CO, emissions". ant A complete switch to LED lighting world w
Slide 8: E-Mobility — a major player in de-carbonisation
E-Mobility— a major player in de-carbonisation Alpha HPA Alpha HPA is targeting the Lithium-ion battery separator market feeding the e-mobility revolution Pure battery EV’s (BEV’s) are estimated to reduce CO, emissions by >50% per mile travelled GASOLINE-ONLY Conventional cars run on gasoline and te
Slide 9: E-Mobility — a major player in de-carbonisation
E-Mobility— a major player in de-carbonisation EV penetration rate forecasts vary, but bullish Dramatic EV penetration rates - driven by Govt Regulation All forecasts >8% CAGR Pandemic disruption is seen as constructive by Macquarie for EV take-up (refer below) powered by ‘green tinged’ China and EU
Slide 10: Projected HPA Deficit
Projected HPA Deficit Alpha HPA = The HPA First Project is scheduled to deliver > 4N HPA into a growing market deficit As part of a detailed HPA market review (Dec 2019), CRU present a > 4N HPA market in relative balance until 2020, after which deficits build through to a large supply deficit of nea
Slide 11: Recent Project Milestones
Recent Project Milestones = The HPA First Project has been rapidly advanced over the last 12 months Alpha HPA PFS Nov ‘18 - Feb ‘19: Pre Feasibility Study July 719 — Mar ’20: HPA First Pilot Plant - 600+hrs operation, > 40kg HPA Production @ Nov- Dec ’19: Market Outreach - HPA samples despatched to
Slide 12: HPA First Demonstration Plant
HPA First Demonstration Plant = During 2019 the HPA First Pilot Plant recorded over 600hrs operation producing > 40kg HPA Production Alpha HPA = Production process validated, purity trends improving to 99.998% purity % we Alpha HPA : 2 — hf A = Pilot Plant — Solvent Extraction Circuit HPA Powder HPA
Slide 13: HPA First Demonstration Plant
HPA First Demonstration Plant = Plant upgraded to ‘demonstration’ scale to meet end-user test demand Aloha HPA = Plant now manufacturing HPA powders, HPA pellets, LED and high-purity LiB precursor products HPA Pellet Press
Slide 14: HPA First Pilot Plant
HPA First Pilot Plant = HPA First Pilot Plant — Continuous HPA purity improvement — reaching 99.998% purity Alpha HPA = Purity trend to improve on larger volumes and commercial plant Alpha HPA DFS HPA Purity ne 900% (EN) Puy = = = = = = Q = a So i 29.09% 4M Puy af Pan s--p Purity Trendline 50 Calcin
Slide 15: Orica Agreement
Orica Agreement Alpha HPA The HPA First Project requires the supply of two key chemical reagents, which are recycled inside the HPA production process as a by-product for sale back to the reagent supplier. Alpha HPA concluded a Chemical Counterparty Agreement (MOU) with Orica in March 2020 for reage
Slide 16: Project Location
Project Location The Orica MOU has been negotiated on the basis of reagents supply and by-product offtake delivered from/to Orica’s facility in Yarwun, QLD, within the Gladstone State Development Area (‘GSDA). Alpha HPA On this basis, Alpha HPA has executed a land contract with Economic Development
Slide 17: Definitive Feasibility Study — March 2020
Definitive Feasibility Study — March 2020 Comprehensive technical and financial validation of the Company’s HPA First Project Production rate of 10,000tpa HPA Annual free cashflow increased to A$280M** Strong Project cashflows under all modelled price scenarios (US$15/20/25kg HPA) Unit cash costs of
Slide 18: Global Market Outreach
18 Global Market Outreach ™ Global outreach campaign underway to identify key end-users: = Lithium-ion battery supply chain — 8 x test samples despatched = Sapphire glass/LED supply chains — 2 test samples despatched, a further 2 in preparation = Looking to convert market interest to offtakes over t
Slide 19: Traxys MOU
Traxys MOU = Memorandum of Understanding (MOU) signed with Traxys with respect to the HPA First Project Alpha HPA = The Traxys MOU sets the framework for Project-wide cooperation on: 1. Product Marketing and Offtake Joint engagement with respect to prospective customers, with a view to engaging in a
Slide 20: Project Layout
20 Project Layout UTILITIES 3D Model - HPA First Commercial Plant Alpha HPA
Slide 21: HPA First — Process Flow Sheet
HPA First — Process Flow Sheet = Alpha HPA’s proprietary HPA First process is disruptive to both existing and proposed HPA production processes: — Alpha HPA = Low operational risks: Front-end atmospheric temperatures and pressures = Simplicity: Ability to recycle reagents as by-products for sale = L
Slide 22: SX based process technology
SX based process technology = Alpha HPA’s key process advantage is the application of established Solvent Extraction (SX) technology to aluminium extraction — alpha HPA and purification MIXER ied together Where the organic and PLS are allowed testi (phase separation) PLS with Aluminium removed (Raff
Slide 23: Project Schedule
Project Schedule = Alpha HPA is progressing offtakes, permitting and financing workstreams with a target of having Project construction alpha HPA commencing March Qtr 2021 = Targeting first HPA production by late CY2022 2020 2021 2022 2023 Task Months MarQ Jun SepQ DecQ Mard JunQ SepQ DecQ MarQ JunQ
Slide 24: Board & Management
Board & Management Norman Seckold Chairman 40+ years in the full time management of natural resource companies. Past Chairman and Director of listed companies including Bolnisi Gold NL, Timberline Minerals Inc., Perseverance Corporation Limited, Valdora Minerals NL, Palmarejo Silver and Gold Corp. C
Slide 25: Corporate Snapshot
Corporate Snapshot Alpha HPA TRADING INFORMATION SHARE PRICE PERFORMANCE - 12 MONTHS +] 0.20 ASX CODE A4N , Share Price (05-10-20) 29.0c 0.25 52-week trading range 8.6c — 30.5¢ 2 Issued Shares 680.4M 2 on & ons CAPITAL STRUCTURE A Issued Shares 680.4M O10 Unlisted options (@15c) 12.0M (expire 31 Oct
Slide 26: Contacts
Contacts Rimas Kairaitis y Algha HPA Managing Director rkairaitis@alphalipa.commau WWW.alphahpa.com.au +61 408 414 474 Camerotr Peacock InvestOmRelations and Business Development cpeacock@alphahpa.com.au +61,439-908.732
Slide 27: Competent Person Statement (Process Development Testwork)
27 Competent Person Statement (Process Development Testwork) Information in this announcement that relates to metallurgical results is based on information compiled by or under the supervision of Dr Stuart Leary, an Independent Consultant trading as Delta Consulting Group. Dr Leary is a Member of Th