Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — Melbourne Resource Round Up (October 2015)
39 slides from Altech Batteries's conference presentation, Oct 1, 2015
Slide 1: Company Presentation - Melbourne Resource Round Up
Altech Chemicals Limited (ASX:ATC) For personal use only Company Presentation Melbourne Resource Round Up Iggy Tan Managing Director
Slide 2: Our Vision
For personal use only To be a world leading producer of high purity alumina (HPA) Our Vision
Slide 3: Sapphire & Ruby
For personal use only • Sapphire & Ruby • Natural form of high purity alumina (HPA) • Formed by mother nature like diamonds Sapphire • Colour from impurities Gemstone • Nearly as hard as diamond
Slide 4: What is HPA?
For personal use only • Purified alumina (Al2O3) • Greater than 99.99% (4N) purity • Max impurities of 100ppm • Smelter Grade Alumina (SGA) ~ 99.5% (5,000 ppm impurities mainly sodium) What is HPA? • Bayer Process uses sodium hydroxide (NaOH) • Sodium impurity is problem for electronics industry SGA
Slide 5: Sapphire Glass Production
Sapphire Glass Production For personal use only
Slide 6: Our Target Business
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 7: Welcome to the World of HPA
Welcome to the World of HPA For personal use only Sodium Lamps Hybrid Cars Display Screens Abrasives Ceramic Ultrafiltration Electronic Substrates Tools Special Ceramics Semiconductors HP Refractory Polishing Cosmetics Medical Abrasives Separation Headlights Membranes LED Lighting Optical Lenses Ind
Slide 8: Uses of HPA
For personal use only High Purity Alumina Applications Semi Phosphor LEDs Other Based conductors Applications Applications Uses of HPA 99.99% 4N Smartphone Others Phosphor sapphire glass is 7% 16% a new market Semiconductors 22% LED 55% Source: Technavio Research “2014-2018 Global High-purity Alumin
Slide 9: Light Emitting Diodes (LEDs)
Light Emitting Diodes (LEDs) For personal use only
Slide 10: Demand for HPA
For personal use only Technavio Research • Global HPA demand 19,040tpa in 2014 • Expected to increase to 48,230tpa by 2018 Demand • Growing at a CAGR of 28% for HPA
Slide 11: HPA Demand & Growth Forecast
For personal use only HPA Demand & Growth Forecast 60.0 50.0 48.2 39.9 40.0 30.0 25.3 32.4 Demand 20.0 14.1 19.0 for HPA 10.0 0.0 2013 2014 2015 2016 2017 2018 Volume ktpa Source: Technavio Research “2014-2018 Global High-purity Alumina Market” Global shipments of LED lamps forecast to increase from
Slide 12: Smartphones
For personal use only • High end Vertu TI with sapphire crystal screen • Rest will follow Smartphones Sapphire Crystal Screen
Slide 13: Sapphire glass: Apple Watch & iPhone
For personal use only sapphire glass apple watch & iphone 7
Slide 14: Smartphones
For personal use only • Estimate 30g1 of HPA in phone screen • 500 million smartphones sold per year • If all sapphire glass technology HPA o Extra 15,000tpa of HPA Demand from o 4 x our proposed 4,000tpa plant • There will be a HPA supply deficit Smartphones 1 Altech Estimates
Slide 15: Sapphire Glass Scratch Test
Sapphire Glass Scratch Test For personal use only
Slide 16: More Sapphire Display Factories
For personal use only More Sapphire Display Factories
Slide 17: Geographic Demand for HPA
For personal use only • 70% of HPA demand - Asia Pacific region (APEC) • Region for the world’s manufacturing • Altech’s HPA plant (Malaysia) well-positioned HPA to service APEC region • Transport, customer service, technical Geographic credibility Americas Demand 14% Europe, Middle East, Africa 16%
Slide 18: 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 19: Altech's Differentiation
Altech’s Differentiation For personal use only Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina 99.8% Aluminium Metal 99.99% HPA US$2,000 per tonne ALTECH HPA PLANT One Single Process Step Aluminous Clay 99.99% HPA
Slide 20: Feedstock Processed by Mother Nature
For personal use only • Processed by mother nature • Very low Iron (Fe) due to weathering • Silica is non reactive – easily removed Bauxite Canadian Altech Low-impurity Darling HPA HPA Range * Project Project Aluminous Clay Al2O3 (%) 34.5 22.77 30.5 Feedstock SiO2 (%) 21.5 53.29 56.3 Fe2O3 (%) 21.2
Slide 21: Altech Owns 100% of Deposit in W Aust
For personal use only • Altech owns 100% of deposit in W Aust • Low environmental impact • Previously mined for kaolin – trial pit Meckering • Low stripping ratio Aluminous Clay • 65Mt JORC Resource Deposit • 130kms from Fremantle Port
Slide 22: Altech's HPA Process
For personal use only • Use a standard HCl leach process • Developed in 1980’s by alumina industry • Couldn’t compete with Bayer SGA costs • But great at producing HPA (no sodium ions) Altech’s • However little demand of HPA in 1980s HPA Process • Demand of HPA is here today
Slide 23: New Demand + Established Process + Great Deposit + Experienced People
For personal use only New HPA Demand + Established Process + Great Deposit + Experienced People Shareholder Value Experienced People High Purity Altech New Demand Deposit Business (Electronics) Strategy Established HPA HCl Process “the last piece of the puzzle is in place”
Slide 24: Development Program To Date
For personal use only • Started work in early 2011 • Many studies and testwork programs • No issues about producing 99.99% HPA • Supporting lab pilot plant test work Development • Off the shelf plant and equipment Program • Bankable Feasibility Study completed To Date
Slide 25: Altech HPA Process
Altech HPA Process For personal use only WESTERN AUSTRALIA Mining Screening Drying Kaolin HCl AlCl3 Activation Digestion Si Removal Crystallisation Purification X3 Al2O3 HCl Micronising Acid Wash Calcination Roasting MALAYSIA
Slide 26: Meckering Plant
For personal use only Meckering Plant
Slide 27: Beneficiated Kaolin Shipping
Beneficiated Kaolin Shipping For personal use only
Slide 28: HPA Site Location
For personal use only • Tanjung Langsat Industrial Park, Johor Bahru (Malaysia) • Kaolin feedstock shipped from WA • Operating costs ~40% lower than HPA Site Australia Location • Capital costs expected to be 50-60% lower
Slide 29: Malaysian HPA Operation
Malaysian HPA Operation For personal use only HPA LOCATION • Hydrochloric acid, lime, power & natural gas • International container sea-port & Singapore • Investment incentives
Slide 30: Malaysia HPA Plant
For personal use only Malaysia HPA Plant
Slide 31: Capital cost estimate US$76.9m - BFS Highly Attractive
For personal use only • Capital cost estimate US$76.9 m • Payback period 3.8 years • Pre-tax NPV10 of US$326 m • Highly attractive IRR of 30.3% Highly • Operating cost of US$8,200/t Attractive • Margin of US$14,800/t BFS • Operating profit of US$59.4m pa • Breakaway values ATC 31c p share
Slide 32: BFS NPV Quote from Managing Director
For personal use only “It is not often that you see the NPV (US$ 326m) of a project, 4 times the Highly multiple of the capital cost estimate Attractive (US$77m)” Iggy Tan MD BFS
Slide 33: Breakaway - Competitors US$14-17,000/t
For personal use only • Breakway - competitors US$14-17,000 /t • Bottom quartile for operating costs 1. We own our feedstock Bottom 2. Large scale economy 4,000 tpa – one train Quartile 3. Main reactant HCl re-used for Op Costs 4. Minimal impurity removal costs 5. Plant in low cost country (Malaysia
Slide 34: Project Finance
For personal use only • Commenced discussions with Asian banks • Targeting around $55 m project debt • Structured project finance options • Europe based bonds Project • Product off take phase Finance • MIDA tax incentives Phase • Detailed engineering & permitting
Slide 35: Our Potential Customers
Our Potential Customers For personal use only
Slide 36: Mitsubishi as Sales Partner in Japan
For personal use only • Mitsubishi as Sales partner in Japan • Japan 21% of HPA market • All sales to Japan • Mitsubishi largest general trading company Mitsubishi • Operates in 90 countries as Partner • First of the off take process
Slide 37: HPA as part of the next new age materials boom
For personal use only “HPA will be part of the next “new age materials boom” like rare earths, lithium and graphene” Iggy Tan
Slide 38: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 39: 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
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