Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — Sydney Capital Showcase (November 2014)
27 slides from Altech Batteries's conference presentation, Nov 21, 2014
Slide 1: Sydney Capital Showcase Company Presentation
Altech Chemicals Limited (ASX:ATC) For personal use only Sydney Capital Showcase Company Presentation 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 - natural form of high purity alumina
For personal use only • Sapphire - natural form of high purity alumina (HPA) • Formed by mother nature like diamonds • Extremely hard – no. 9 on Mohs scale Sapphire (third hardest mineral behind diamond) gemstone • Scratch-resistant artificial sapphire glass made from HPA
Slide 4: What is HPA?
For personal use only • Purified alumina or aluminum oxide (Al2O3) • Greater than 99.99% (4N) purity • Lots of work to upgrade SGA (99.5%) 4N 99.99% HPA • Maximum allowable impurities of 100ppm • 4N category - 99.99% pure (impurity 100ppm) What is HPA? - most sales volume • Heat resistance, electr
Slide 5: HPA price by purity: our target business
For personal use only Smelter Grade Alumina High Purity Alumina High Purity Alumina High Purity Alumina High price SGA 99.5% $0.4 per Kg HPA 99.9% (3N) $1 -10 per Kg HPA 99.99% (4N) $10-50 per Kg HPA 99.999% (5N) $50-150 per Kg for purity Our Target Business
Slide 6: Artificial sapphire process
For personal use only • HPA is placed in an autoclave • Heated to >2,000 oC melting point under intense pressure • Forms single crystal sapphire (boule) Artificial • Allowed to cool slowly – 22 day cycle sapphire • Diamond cutting equipment to cut sapphire shapes process • Heat & scratch resistant
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% Technavio Research
Slide 9: 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 QY Research • Global HPA demand 24,550tpa in 2014 • Expected to grow to 36,000tpa in 2017 • Growing at a CAGR of 16%
Slide 10: HPA Demand & Growth Forecast
For personal use only HPA Demand & Growth Forecast 60.0 40% 48.2 35% 50.0 35% 33% 30% 39.9 40.0 28% Demand 25% 32.4 23% 30.0 25.3 21% 20% 20.0 14.1 19.0 15% for HPA 10% 10.0 5% 0.0 0% 2013 2014 2015 2016 2017 2018 Volume ktpa Growth Rate % • Rapid growth rates • Estimated supply deficit
Slide 11: HPA demand: smartphones
For personal use only • Estimate 30g1 of HPA in an iPhone sapphire glass screen • Approx. 300 million iPhones sold from 2013-2014 • 200 million iPhones estimated to sell in 2015 HPA • 500 million smartphones sold per year demand: • If Apple implement sapphire glass technology o It would require abou
Slide 12: HPA geographic demand
For personal use only • 70% of HPA demand is in Asia Pacific region (APEC) o Region for the world’s manufacturing • Altech’s HPA plant (Australia) well-positioned to service in APEC region HPA • Transport, customer service, technical geographic credibility Americas 14% demand Europe, Middle East, Af
Slide 13: Current HPA production processes
For personal use only Alumina Alumina HPA Plant 1 Refinery Smelter Current HPA Bauxite Smelter Grade Alumina Aluminium Metal 99.99% HPA >90% 2 Alumina Refinery HPA Plant production Bauxite Aluminium Hydroxide 99.99% HPA processes AMMG HPA PLANT 3 Aluminous Clay 99.99% HPA Altech Current use of expen
Slide 14: Low-impurity aluminous clay feedstock
For personal use only • Processed and purified by mother nature • Very low impurities due to weathering • Iron levels are 0.7% vs 21% in bauxite • Silica is non reactive – easily removed Low-impurity Bauxite Canadian Altech aluminous clay Darling HPA HPA Range Project Project feedstock Al2O3 (%) 34.
Slide 15: Current HPA producers and feedstock costs
For personal use only • Majors like Sumitomo, Sasol: o Aluminum alkoxide from Al metal (1) • Chinese producers: o Choline – Dissolving Al foil in choline • Chinese producers: Current HPA o Aluminium Hydroxide (2) with HCl producers • All use relatively expensive feedstock • Altech aluminous clay 5 t
Slide 16: Meckering aluminous clay deposit
For personal use only • Altech owns 100% of deposit • Landowner agreement in place • No native title • Low environmental impact Meckering • Previously mined for kaolin – trial pit aluminous clay • Low stripping ratio • 65Mt JORC Resource deposit • Approx. 130kms from capital city Perth (Kwinana indu
Slide 17: Altech's HPA process
For personal use only • HCl process - conventional, proven & robust chemical process • Can produce >99.99% HPA from aluminous clay • Simple recovery of acid and recycling Altech’s • HCl process was first developed in early 1980’s HPA for SGA production o Couldn’t compete with bauxite SGA costs proce
Slide 18: Our success so far
For personal use only • Laboratory test work simulates process • Final product achieves 99.99% (4N) HPA • Integrated Plant Study (IPS) • Larger optimisation pilot plant test work Our success • Process works and is robust so far • IPS pilot plant opex around A$8.6/kg • HPA sells for US$20-$25/kg
Slide 19: Altech's HPA Process
ALTECH’s HPA PROCESS For personal use only ROM Hopper Rolls Crusher ROM OS Screen Screen <0.5mm Campaign Mining Kaolin Meckering Aluminous Clay Deposit Dryer Crusher >0.5mm Calcined Clay Feed Storage Hydrochloric Acid Cooler Calciner HCl Gas water Polishing Filter 600 C thickener Ball Milling Screen
Slide 20: Bankable Feasibility Study (BFS)
For personal use only • Target: to be a top 3 HPA producer in the world • Launched BFS for 3,000tpa HPA o BFS completion: end Q3 2015 Bankable • In parallel, progress necessary approvals, funding, off- take agreements etc. Feasibility • Subject to funding: Study (BFS) • In position to order long lea
Slide 21: Progress of BFS
For personal use only • Progressing well and on track • Full BFS team appointed • Bulk clay sizing test work – wet screening • HPA laboratory test work Progress • Process design optimisation work • Detailed process block design of BFS • HPA output optimisation • HPA site evaluation
Slide 22: HPA Preferred Location
For personal use only • Tanjung Langsat Industrial Park, Johor Bahru (Malaysia) • Al clay feedstock shipped from WA • Operating costs ~40% lower than Australia • Capital costs expected to be 50-60% lower HPA Preferred • Anticipates opex in the bottom quartile of the Location cost curve for internati
Slide 23: Altech's Preferred Site Location
ALTECH’s PREFERRED SITE LOCATION For personal use only HPA LOCATION • Hydrochloric acid, sulphuric acid, power & natural gas • Cement plants to purchase silica residue • Skilled labour, telecomunications • International container sea-port & Singapore • Investment incentives
Slide 24: Experienced board
For personal use only Highly experienced board: • Fundraising Luke Atkins Chairman • Project building • Industrial chemical processing Experienced • Alcoa Alumina management Iggy Tan board • Sherwin Alumina management Managing Director • High purity chemicals Dan Tenardi Non Exec Director Peter Bail
Slide 25: Corporate Snapshot
For personal use only Corporate Snapshot Cash Position $ ASX Code ATC Cash2 A$ 1.3m Shares on Issue 107.7m Debt 2 A$ 0 Share Price¹ A$0.10 ASX Share Price Performance Market Capitalisation (Undiluted) A$10.7m Options on Issue 21.5m Major Shareholders Board & Management 36% Top Twenty Shareholders 25
Slide 26: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 27: 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
Altech Chemicals — Sydney Capital Showcase (November 2014) on 6ix