Alpha Hpa Limited · ASX:A4N
Alpha Hpa — Investor Presentation (July 2020)
25 slides from Alpha Hpa's investor presentation, Jul 20, 2020
Slide 1: Investor Presentation: HPA First Project
Alpha HPA ABN 79 106 879 690, , Cm a A sy pial yf. 7. INVESTOR PRESENTATION HPA FIRST PROJECT HIGH PURITY ALUMINA FOR THE LITHIUM-ION BATTERY (LIB) & LED MARKETS
Slide 2: Cautionary Statement
Cautionary Statement The Definitive Feasibility Study (OFS) referred to in this presentation has been undertaken to assess the technical and financial viability of the HPA First project. The DFS is based on the material assumptions about the availability of funding and the pricing received for HPA.
Slide 3: Corporate Snapshot
Corporate Snapshot Alpha HPA TRADING INFORMATION SHARE PRICE PERFORMANCE - 12 MONTHS fa ASX CODE A4N Share Price (15-07-20) 22.5¢ j os 52 week trading range 8.6c — 27.5c zg Issued Shares 680.4M 8 \ & 045 CAPITAL STRUCTURE o40 Issued Shares 680.4M Unlisted options (@15c) 12.0M (expire 31 October 2020
Slide 4: Recent Project Milestones
Recent Project Milestones = The HPA First Project has been rapidly advanced over the last 12 months Alpha HPA PFS Nov ‘18 - Feb ‘19: Pre Feasibility Study July 719 — current: HPA First Pilot Plant - 600+hrs operation, > 40kg HPA Production @ Nov- Dec ’19: Market Outreach - HPA samples despatched to
Slide 5: HPA First Project
HPA First Project Alpha HPA = Alpha HPA is dedicated to the commercialisation of its proprietary solvent extraction (SX) and refining process for the manufacture of high purity alumina (HPA) — The HPA First Project Alpha HPA is targeting key growth markets linked to the de-carbonisation mega-trend L
Slide 6: The LED Lighting Market — a major player in de-carbonisation
The LED Lighting Market — a major player in de-carbonisation Alpha HPA is targeting the sapphire glass >> LED lighting market LED lights are 50-70% more efficient than incandescent globes Lighting is responsible for 6% of global CO, emissions*. A complete switch to LED lighting world wide, would pre
Slide 7: E-Mobility — a major player in de-carbonisation
E-Mobility— a major player in de-carbonisation Alpha HPA Alpha HPA is targeting the Lithium-ion battery separator market feeding the e-mobility revolution Pure battery EV’s (BEV’s) are estimated to reduce C02 emissions by >50% per mile travelled GASOLINE-ONLY Conventional cars run on gasoline and te
Slide 8: E-Mobility — a major player in de-carbonisation
E-Mobility— a major player in de-carbonisation EV penetration rate forecasts vary, but bullish Dramatic EV penetration rates - driven by Govt Regulation All forecasts >8% CAGR Pandemic disruption is seen as constructive by Macquarie for EV take-up (refer below) powered by ‘green tinged’ China and EU
Slide 9: HPA First Pilot Plant
HPA First Pilot Plant During 2019 the HPA First Pilot Plant recorded over 600hrs operation producing > 40kg HPA Production Alpha HPA Production process validated, purity trends improving to 99.998% purity Pilot Plant upgrading to ‘demonstration’ scale to meet end-user test demand Pilot Plant — HPA P
Slide 10: HPA First Pilot Plant
HPA First Pilot Plant = HPA First Pilot Plant — Continuous HPA purity improvement — reaching 99.998% purity Alpha HPA = Purity trend to improve on larger volumes and commercial plant Alpha HPA DFS HPA Purity ne 900% (EN) Puy = = = = = = Q = a So i 29.09% 4M Puy af Pan s--p Purity Trendline 50 Calcin
Slide 11: Orica Agreement
Orica Agreement Alpha HPA The HPA First Project requires the supply of two key chemical reagents, which are recycled inside the HPA production process as a by-product for sale back to the reagent supplier. Alpha HPA concluded a Chemical Counterparty Agreement (MOU) with Orica in March 2020 for reage
Slide 12: Project Location
Project Location The Orica MOU has been negotiated on the basis of reagents supply and by-product offtake delivered from/to Orica’s facility in alpha HPA Yarwun, QLD, within the Gladstone State Development Area (‘GSDA’). On this basis, Alpha HPA has executed a land contract with Economic Development
Slide 13: Definitive Feasibility Study — March 2020
Definitive Feasibility Study — March 2020 = Comprehensive technical and financial validation of the Company’s HPA First Project Alpha HPA Production rate of 10,000tpa HPA Annual free cashflow increased to A$280M** Strong Project cashflows under all modelled price scenarios (US$15/20/25kg HPA) Unit c
Slide 14: High Purity Alumina — Market Overview
High Purity Alumina — Market Overview High Purity Alumina (HPA) is the very pure form of aluminium oxide — Al,0; Alpha HPA HPA's value derives from its physical properties of extreme hardness, high thermal conductivity, and being electrically and chemically inert (in alpha phase) Price and performan
Slide 15: Targeting LEDs and Lithium-ion Battery Markets
Targeting LEDs and Lithium-ion Battery Markets = LEDs and LIBs both represent high-growth demand markets for HPA Alpha HPA LATERAL LED CHIP ARCHITECTURE plete came ayer Ave ayers. ean yer \ conta ter neslectrove HPA Beads/Pellets Sapphire glass boule Sapphire ingots & wafers LED architecture separat
Slide 16: Global Market Outreach
16 Global Market Outreach ™ Global outreach campaign underway to identify key end-users: = Lithium-ion battery supply chain — 8 x test samples despatched = Sapphire glass/LED supply chains — 2 test samples despatched, a further 2 in preparation ™ Looking to convert market interest to offtakes over t
Slide 17: Projected HPA Deficit
Projected HPA Deficit Alpha HPA = The HPA First Project is scheduled to deliver > 4N HPA into a growing market deficit As part of a detailed HPA market review (Dec 2019), CRU present a > 4N HPA market in relative balance until 2020, after which deficits build through to a large supply deficit of nea
Slide 18: Project Layout
18 Project Layout Alpha HPA 3D Model - HPA First Commercial Plant
Slide 19: HPA First — Process Flow Sheet
HPA First — Process Flow Sheet = Alpha HPA’s proprietary HPA First process is disruptive to both existing and proposed HPA production processes: — Alpha HPA = Low operational risks: Front-end atmospheric temperatures and pressures = Simplicity: Ability to recycle reagents as by-products for sale = L
Slide 20: Alpha HPA's Process Flexibility
Alpha HPA’s Process Flexibility Alpha HPA's process is capable of producing a range of HPA and high-purity boehmite products suitable for: Alpho HPA LED market (for sapphire substrates) Separator and electrode (cathode and anode) coatings for lithium-ion Batteries (LIBs) Electrolyte pre-treatment of
Slide 21: SX based process technology
SX based process technology = Alpha HPA’s key process advantage is the application of established Solvent Extraction (SX) technology to aluminium extraction — alpha HPA and purification MIXER ied together Where the organic and PLS are allowed testi (phase separation) PLS with Aluminium removed (Raff
Slide 22: Project Schedule
Project Schedule = Alpha HPA is progressing offtakes, permitting and financing workstreams with a target of having Project construction alpha HPA commencing March Qtr 2021 = Targeting first HPA production by late CY2022 2020 2021 2022 Task Months = MarQ JunQ_ SepQ DecQ MarQ JunQ SepQ DecQ MarQ JunQ
Slide 23: 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. C
Slide 24: Contacts
Contacts Rimas Kairaitis y Managing Director ' Alpha HPA rkairaitis@alphahipa.comvau +61 408 414 474 WWW.alphahpa.com.au Camerotr Peacock InvestOmRelations and Business Development cpeacock@alphahpa.com.au +61,439-908.732
Slide 25: Competent Person Statement (Process Development Testwork)
25 Competent Person Statement (Process Development Testwork) 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 Consulting Group. Dr Leary is a Member of Th