Altech Batteries Limited · ASX:ATC

Altech Batteries — Altech Chemicals — Investor Presentation (December 2015)

20 slides from Altech Batteries's investor presentation, Dec 4, 2015

  1. Slide 1: Company Presentation - Wholesale Investor Sydney

    Altech Chemicals Limited ATC For personal use only Company Presentation Wholesale Investor Sydney 4 Dec 15 Iggy Tan Managing Director

  2. Slide 2: For personal use only

    For personal use only

  3. Slide 3: Our Vision

    For personal use only To be a world leading producer of high purity alumina (HPA) Our Vision

  4. Slide 4: 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

  5. Slide 5: HPA Demand & Growth Forecast

    For personal use only Technavio Research • Global HPA demand 19,040tpa in 2014 • Expected to increase to 48,230tpa by 2018 • Growing at a CAGR of 28% Demand HPA Demand & Growth Forecast for HPA 60.0 50.0 48.2 39.9 40.0 32.4 30.0 25.3 19.0 20.0 14.1 10.0 0.0 2013 2014 2015 2016 2017 2018 Volume ktpa

  6. Slide 6: Sapphire glass: Apple Watch & iPhone

    For personal use only sapphire glass apple watch & iphone 7

  7. Slide 7: Sapphire Glass Scratch Test

    Sapphire Glass Scratch Test For personal use only

  8. Slide 8: Six largest 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

  9. Slide 9: 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

  10. Slide 10: 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

  11. Slide 11: Proposed Operations

    Proposed Operations For personal use only Markets HPA Plant Kaolin Mine

  12. Slide 12: Work started in 2011

    For personal use only • Work started in 2011 • Established HCl technology from 1980s • Extensive laboratory testwork Going • Pilot laboratory testing Commercial • Completed successful BFS

  13. Slide 13: New HPA 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”

  14. Slide 14: Highly Attractive BFS

    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

  15. Slide 15: 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

  16. Slide 16: 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 • First of the off take process as Partner

  17. Slide 17: Project Finance: Mandate signed with KfW IPEX Bank

    For personal use only • Mandate signed with KfW IPEX Bank • Senior debt inc US$40m ECA cover • Approx 55% of capex German suppliers • M+W Group as general contractor Project • Due diligence and detailed design Finance

  18. Slide 18: HPA will be 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 graphite” Iggy Tan

  19. Slide 19: Thank you

    For personal use only Right Place Right Time Right Feedstock Right Technology Thank you

  20. Slide 20: 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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