Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — Non-Deal Roadshow (February 2018)
32 slides from Altech Batteries's roadshow presentation, Feb 14, 2018
Slide 1: Germany & USA Roadshow Company Presentation
Altech Chemicals Limited ASX: ATC FSE:A3Y For personal use only Germany & USA Roadshow Company Presentation Iggy Tan Managing Director
Slide 2: For personal use only
For personal use only
Slide 3: World leading producer of high purity alumina (HPA)
For personal use only World leading producer of high purity alumina (HPA) Our Vision 4,500 tonnes pa
Slide 4: Sapphire & Ruby
For personal use only • Sapphire & Ruby • Natural form of high purity alumina (HPA) Al2O3 • Formed by mother nature like diamonds • Colour from impurities Sapphire • Nearly as hard as diamond (Mohs 9) Gemstone
Slide 5: What is HPA?
For personal use only • Purified alumina (Al2O3) • 99.99% (4N) purity or greater • Smelter Grade Alumina (SGA) ~ 99.5% (5,000ppm impurities, mainly sodium) • Bayer Process uses sodium hydroxide What is HPA? (NaOH) • Sodium impurity is problem for electronics industry
Slide 6: HPA purity grades and prices
For personal use only Smelter Grade High Purity High Purity High Purity High price Alumina SGA 99.5% Alumina HPA 99.9% (3N) Alumina HPA 99.99% (4N) Alumina HPA 99.999% (5N) for purity US$400 per t US$6,000 per t US$27,000 per t US$50,000 per t Our Target Business
Slide 7: LEDs & Lithium Batteries
LED’s & LITHIUM BATTERIES For personal use only Sapphire Furnace (2,000 oC) Sapphire Crystal Boule Sapphire Wafer LEDs Nano Powder Separator Coatings LITHIUM ION BATTERIES
Slide 8: Sapphire Applications
Sapphire Applications For personal use only Sapphire Wafer / Substrate Light Emitting Diodes LED LEDs Sapphire Cores Sapphire Glass Smartphone and Lenses Glass
Slide 9: Light Emitting Diode
For personal use only Light Emitting Diode
Slide 10: LED Expansions
LED Expansions For personal use only Xiamen Changelight Purchases AIXTRON MOGVD Technology to Expands ROY LED Production
Slide 11: Sapphire Glass
Sapphire Glass For personal use only HTC U Ultra (128Gb) o February 2017 o Sapphire crystal display Smartphone sapphire screen iPhone o Sapphire crystal lens o Finger print recognition
Slide 12: Sapphire Glass Scratch Test
Sapphire Glass Scratch Test For personal use only
Slide 13: HPA used in Lithium-ion Battery Separator
HPA used in Lithium-ion Battery Separator For personal use only Anode Sheet Separator Cathode Sheet Third-Generation Battery Safety Will Make Current Battery Technology Obsolete Sep. 26, 2016 4:29 PM
Slide 14: Global High Purity Alumina Forecast 2015-2024
For personal use only Global High Purity Alumina Forecast 2015 -2024 Source: Persistence Market Research 86,831 “High Purity Alumina Market – Global Industry Analysis and Forecast 2016-2024” 75,637 Demand HPA Comsumtion tpa 65,036 55,350 39,786 46,748 for HPA 34,328 29,669 25,315 21,309 2015 2016 20
Slide 15: Six largest HPA producers
For personal use only • Six largest HPA producers: China (3), Japan (1), South Africa (1) France (1) Sumitomo Chemicals (Japan) 3,020 Huantou, 800 Others (15), 3,570 Sasol (South Africa) 1,800 Current HPA Dailian Rall, 600 Producers Nippon Light Metal, 1,100 Baikowski (France) Hebei Pengda (China) 1
Slide 16: Altech's Differentiation
Altech’s Differentiation For personal use only Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina Aluminium Metal 99.99% (4N) 99.5% ~US$3,000 per tonne HPA ALTECH HPA PLANT One Single Process Step Kaolin 99.99% (4N) (aluminous clay) HPA
Slide 17: Kaolin Feedstock
For personal use only • Very low iron (Fe) due to weathering • 12.7Mt JORC Mineral Resources^ (250 yrs) • Measured Resources 1.5Mt @ 30% Al2O3 • Deposit in Western Australia Low-impurity Bauxite Canadian % Darling HPA Altech HPA Project Kaolin Feedstock Range* Project Al2O3 34.5 22.77 30.5 SiO2 21.5
Slide 18: Mining approval granted
For personal use only • Mining approval granted • Works approval granted • Option to purchase land exercised Meckering • Simple mining – 3 years feed in 2 months Kaolin Deposit • Then just sea container loading operation • Fremantle to Johor easy shipping in West Aust
Slide 19: HPA Plant to be in Johor, Malaysia
For personal use only • Chemical-zoned industrial park (Tanjung Langsat) • 50-60% lower operating costs • HCL plant nearby HPA Plant to • Services, natural gas, electricity, water be in Johor, • Access to 17th largest container port Malaysia • Malaysian government incentives • Environmental approval
Slide 20: Johor HPA Plant
Johor HPA Plant For personal use only Admin Site Entry Maintenance MCC Kaolin Silica Residue Beneficiation Acid Leach Warehouse Pelletising Crystallisation HCL Recycling Roasting
Slide 21: Altech's HPA Process
Altech’s HPA Process For personal use only ROM Campaign Mining Sea Container To Fremantle MECKERING Shipping Sea Container Meta Kaolin Flash JOHOR Dryer Hydrochloric Acid Filter Cooler Screening Calciner Milling HCl Gas Polishing Screening Filter Filter 700 C Drum Scrubber > 0.3mm Quartz Oversize Ac
Slide 22: SMS group German EPC contractor
For personal use only • SMS group German EPC contractor • Lump sum turn key contract • Completion and cost risk • Throughout guarantee Lump Sum • Process & quality guarantee Turn Key • Third largest user of ECA finance Contract • Committed US$ 15 mil equity contribution 22
Slide 23: Final Investment Decision Study
For personal use only • Pre-tax NPV7.5 US$ 505 million • Internal Rate of Return (IRR) 22% • Payback (full rate) 3.9 years Final • EBITDA US$ 76 million p.a. Investment • Capital cost US$ 298 million Decision Study • Production Costs - US$ 9.90/kg FIDS • LT Sale Price - US$ 26.9/kg • Gross Margin –
Slide 24: High Case Economics
For personal use only • Current price in Japan - US$ 40.0/kg • Pre-tax NPV7.5 US$ 1.1 billion • Internal Rate of Return (IRR) 33% High Case • Payback (full rate) 2.2 years • EBITDA US$ 133 million p.a. Economics • Production Costs - US$ 10.50/kg • Sale Price - Gross Margin – 74% 24
Slide 25: Bottom Quartile for Op Costs
For personal use only • Competitors US$14 - 17,000/t (Breakaway Research) 1. We own our feedstock 2. Main reactant HCl re-used 3. Plant in low cost country (Malaysia) Bottom Quartile Altech for Op Costs Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Fo
Slide 26: Off-take sales agreement with Mitsubishi
For personal use only • Off-take sales agreement with Mitsubishi • First 10 years of HPA operations • Secures sales for HPA plant production • Exclusive global distributor Mitsubishi • Experienced with HPA signs • Strategic priority: lithium-ion batteries off-take
Slide 27: Debt funding with KfW IPEX-Bank
For personal use only • Debt funding with KfW IPEX-Bank • Total debt of US$ 190 million Debt • US$ 170 million export credit finance • 50% of plant – German suppliers Funding • Low interest, long tenure Successful • Best debt in the world
Slide 28: Equity Funding Next Steps
For personal use only • Final required equity to be finalised • Possible subordinated mezzanine finance • Various reserve, contingency, fee requirements Next Steps • Possible project level equity participation Equity Funding • End of Q2-2018 to determine the optimal funding solution • Maximises shar
Slide 29: Market Capitalisation and Growth Performance
For personal use only Altech Chemicals Limited Market Capitalisation - end of month ($m) $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $- Altech Growth Feb-15 Apr-15 May-15 Sep-15 Feb-16 Apr-16 Sep-16 Feb-17 Apr-17 Sep-17 Aug-15 May-16 May-17 Aug-16 Aug-17 Jun-15 Jun-16 Jun-17 Jul-15 Jul-16
Slide 30: Board and management team
Board and management team For personal use only HIGHLY CREDENTIALED BOARD HAVING LED SOME OF THE WORLD’S LARGEST ADVANCED MATERIALS OPERATIONS (ALCOA, RIO TINTO) Mr Luke Atkins Mr Peter Bailey Co-founder and Non-Executive Chairman Non-Executive Director • Professional lawyer, with extensive experien
Slide 31: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 32: Forward-looking Statements
For personal use only Forward-looking Statements The Company reports that the ECA application process is set for end 2017 and there is no certainty that the export credit and debt finance will be approved. The Company makes no representation or warranties whatsoever as to the outcome of the ECA appr