Alpha Hpa Limited · ASX:A4N
Alpha Hpa — Investor Presentation (July 2019)
29 slides from Alpha Hpa's investor presentation, Jul 29, 2019
Slide 1: HPA First Project Presentation
ALPHA HPA LTD (ASX: A4N) ania HPA FIRST PROJECT INNOVATIVE HIGH PURITY ALUMINA (HPA) PRODUCTION TECHNOLOGY FOR THE BURGEONING ELECTRIC VEHICLE (EV) BATTERY & LED MARKETS abst PRESENTATION UST 2019
Slide 2: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements Alpha HPA Cautionary Statement The Pre-Feasibility Study (PFS) referred to in this announcement has been undertaken to assess the technical and financial viability of the HPA First Project. Further evaluation work including a Definitive Feasibility Study (DF
Slide 3: 'HPA First' - Fast Track Path to HPA Production
‘HPA FIRST’ - FAST TRACK PATH TO HPA PRODUCTION The HPA First process uses the Company’s proprietary licenced solvent extraction (SX) and refining technology and a feedstock blend of readily available industrial products rather than mine generated feedstock SIMPLE Does not require a mining operation
Slide 4: Corporate Snapshot
Corporate Snapshot SHAREHOLDERS Alpha HPA TOP 20 SHAREHOLDERS BT Portfolio Services Budworth Capital Permgold Pty Ltd (N. Seckold) PT Muara Mulya Propertindo RECENT HIGHLIGHTS PFS PENDING 2019 MILESTONES DFS HPA First Pre-Feasibility Study Completed Nov 2018 Updated Feb 2019 First HPA production usi
Slide 5: Corporate Snapshot
Corporate Snapshot Alpha HPA TRADING INFORMATION SHARE PRICE PERFORMANCE ASX CODE A4N 0.16 Share Price (26-Julty-19) 11.5¢ ‘ om 52 week trading range 8.2c - 14.0¢ \ Issued Shares 567.1M {| on 2 WI 0.10 CAPITAL STRUCTURE 8 cs Issued Shares 567.1M € ae Unlisted options (@10c) 30.0M (expire 31 October
Slide 6: Capital Raising
Capital Raising Alpha HPA Placement of 25 million new fully paid ordinary shares ("New Shares’) to raise approximately A$2.5 million. The New Issue Shares will be listed on ASX and will rank pari-passu with the existing fully paid ordinary shares. Placement Price $0.10 per New Share Use of Proceeds
Slide 7: High Purity Alumina (HPA) Market
High Purity Alumina (HPA) Market HPA demand dominated by: = LED market (for sapphire substrates) = Coatings for Lithium-lon Batteries (LiB’s) Pellets MarketDemand Trg —==_ | —=z_ | LED and Semiconductor Substrates Scratch Proof Glass Lithium-Ion Battery Separator Coating Phosphor Coating Automotive
Slide 8: Global Transportation is Electrifying
Global Transportation is Electrifying Alpha HPA Dramatic EV penetration rates - driven by Govt Regulation The Electric Vehicle (EV) revolution has arrived, underpinned by Government mandated EV targets, led by China and Europe ‘de-carbonisation’ a key investment mega-trend for the I Boar Case decade
Slide 9: Global Transportation is Electrifying
Global Transportation is Electrifying Alpha HPA Passenger car (PC) and commercial vehicle (CV) Global ESS installations (GWh) EV sales forecast 60 ssw PC HEV 50% 150 mmm PC PHEV 45% wm PC BEV CV HEV 40% CV PHEV 35% mmm CV BEV —% PC EV 30% —% PC EV (excl. HEVs| 25% 20% a i) So S 40 EV penetration Nn
Slide 10: HPA — A critical part of the EV/battery revolution
HPA — A critical part of the EV/battery revolution High Purity Alumina (HPA) is the pure form of aluminium oxide (AI,0.). HPA is a pre-cursor LITHIUM-ION BATTERY SEPARATORS material for the manufacture of ceramic coated Lithium-lon-Battery (Li-B) separators CHARGE CYCLE DISCHARGE CYCLE Alpha HPA Cer
Slide 11: HPA Demand 1:1 linked with the Battery Boom
HPA Demand 1:1 linked with the Battery Boom Alpha HPA HPA Demand Outlook (2018-2025) 140,000 I Sapphire Glass 120,000 O® us Separators |_| Phosphor Applications 100,000 Semiconductors 80,000 LED’s 60,000 40,000 = = Ei ~ fi U L Source: CRU
Slide 12: High Purity Alumina (HPA) — Price for Purity
High Purity Alumina (HPA) — Price for Purity Alpha HPA = _HPA’s value derives from its physical properties of extreme hardness, high thermal conductivity, and being chemically inert = Purity is determined by the concentration of trace elements in the alumina compound e.g. iron, magnesium, sodium m P
Slide 13: Existing HPA Market Production Processes
Existing HPA Market Production Processes Existing HPA production is synthesised from Aluminium metal feedstock or produced from hydrochloric acid leach of kaolin clay. HPA from kaolin — schematic flow sheet Mining of Kaolin ¥ Hydrochloric (HCI) acid leach v 3x crystallisation steps GD Calcination Q—
Slide 14: HPA Process technology based on established SX process
HPA Process technology based on established SX process Alpha HPA holds an Australian, proprietary process approach to HPA production — including by-product credits — producing HPA from an aluminium chemical feedstock Based on established Solvent Extraction (SX) Process (SX accounts for ~25% of globa
Slide 15: 'HPA First' — Pre-Feasibility Study — Updated Feb '19
‘HPA First’ — Pre-Feasibility Study — Updated Feb ‘19 Alpha HPA = The ‘HPA First’ PFS has delivered a compelling business case, capable of delivering 10,200tpa of 4N (99.99% purity) High-Purity Alumina (HPA) into the burgeoning HPA market = PFS Highlights include: Production rate of HPA Unit cash co
Slide 16: 'HPA First' — Key Financial Metrics
‘HPA First’ — Key Financial Metrics Alpha HPA HPA Production (t/y) HPA Price Assumption (per/t HPA) $33,333 $25,000 Annual Revenue (including by-products) $413 million $310 million Annual Average Cash Operating Cost $143 million $107.5 million Unit Cash Cost accounting for by-products (per/t HPA) $6
Slide 17: Site Selection: Strategic Options
Site Selection: Strategic Options = The ‘HPA First’ process allows for the discretionary location of an HPA Plant within an existing industrial zone offering highly favourable logistics Gladstone SDA (QLD), Kwinana (WA) and Newcastle Port (NSW) offer industrial processing facilities, extensive infra
Slide 18: 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.
Slide 19: Indicative Project Delivery Timetable
Indicative Project Delivery Timetable = Pilot-plant operation and DFS completion targeted for CY19 ahead of project construction starting CY20 Alpha HPA 2020 2021 2022 LESS From To MarQ__JunQ__SepQ__DecQ_ MarQ_JunQ_SepQ_DecQ MarQ JunQ SepQ __DecQ IPRE-CONSTRUCTION Pilot Plant + DFS 103/19 31/12/19 E
Slide 20: HPA Pre-Cursor Room ~21kg of intermediate Al-Salt produced over a 24hr period
HPA Pre-Cursor Room ~21kg of intermediate Al-Salt produced over a 24hr period
Slide 21: 'HPA First' - Fast Track Path to HPA Production
‘HPA FIRST’ - FAST TRACK PATH TO HPA PRODUCTION The HPA First process uses the Company’s proprietary licenced solvent extraction (SX) and refining technology and a feedstock blend of readily available industrial products rather than mine generated feedstock SIMPLE Does not require a mining operation
Slide 22: Thank You
Norman Seckold Chairman nseckold@alphahpa.com.au I THANK YOU fees rkairaitis@alphahpa.com.au Peter Nightingale Director/Chief Financial Officer pnightingale@alphahpa.com.au Cameron Peacock Investor Relations and Business Development cpeacock@alphahpa.com.au +61 (0) 439 $08 732 j 4 s » > ry 3 . . www
Slide 23: Appendices
ALPHA HPA LTD (ASX:A4N) Appendices : ; —_—~
Slide 24: Demand for HPA — Regions
Appendix 1 Demand for HPA — Regions Demand for HPA is primarily being driven by , separators in lithium ion batteries (Li-B’s), the increasing adoption of LED (Light Emitting Diode) products and scratch resistant artificial sapphire glass for smartphone screens and watches HPA DEMAND BY GEOGRAPHIC R
Slide 25: Supply of HPA
Appendix 2 Supply of HPA EB ina | ry BB North America BD south Korea France Russia Sumitomo Chemicals PERT Hebei Pengda New Material [ATI Sasol EMCI} Zibo Xinfumeng Chemicals [EXIE Baikowski FP 5% s a xR GLOBAL HPA SUPPLY DISTRIBUTION - 2016E Current HPA supply . is concentrated in the Asia Pacific
Slide 26: High Purity Alumina (HPA) Market
Appendix 3 High Purity Alumina (HPA) Market HPA MarketDemand Batts a LED and Lithium-lon Semiconductor Sorat ero Battery Separator Substrates Coating Phosphor Coating Automotive Household & Industrial Lighting Smart phones, tablets, smart watches Electric Vehicles Consumer Goods Fluorescent Lighting
Slide 27: Statement of Compliance
Appendix 4 Statement of Compliance Competent Persons Statement (Process Development Testwork) Alpha HPA 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 C
Slide 28: Modifying Factors
Appendix 5 Modifying Factors Alpha HPA |Study Status |The ‘HPA First’ Pre-Feasibility Study (PFS) indicates the project is technically and financially viable. The Study was completed by Prudentia Process Consulting, with input from the Company and other} specialist consultants, The activities and fi
Slide 29: Modifying Factors
Appendix 5 Modifying Factors Aloo HPA Financial Project costs have been estimated by Prudentia Process Consultants on the basis below. |CapEx: IThe capital cost estimate is provided at an accuracy level of +30% to -15%. The capital cost estimate has been based on the implementation of an Engineering