Alpha Hpa Limited · ASX:A4N
Alpha Hpa — Investor Presentation (October 2019)
32 slides from Alpha Hpa's investor presentation, Oct 10, 2019
Slide 1: Alpha HPA Ltd – HPA First Project Investor Presentation
ALPHA HPA LTD (ASX: A4N) pene HPA FIRST PROJECT LOW-COST HIGH PURITY ALUMINA (HPA) PRODUCTION TECHNOLOGY FOR THE BURGEONING ELECTRIC VEHICLE (EV) BATTERY & LED MARKETS INVESIIMMP RESENTATION 0) OBER 2019
Slide 2: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements Alpha HPA Cautionary Statement The Pre-Feasibility Study (PFS) referred to in this announcement has been undertaken to assess the technical and financial viability of the HPA First Project. Further evaluation work including a Definitive Feasibility Study (DF
Slide 3: Corporate Snapshot
Corporate Snapshot SHAREHOLDERS Alpha HPA TOP 20 SHAREHOLDERS BT Portfolio Services Budworth Capital Ea Permgold Pty Ltd (N. Seckold) Regal Funds Management RECENT HIGHLIGHTS PFS PENDING 2019 MILESTONES DFS HPA First Pre-Feasibility Study Completed Nov 2018 Updated Feb 2019 First HPA production usin
Slide 4: Corporate Snapshot
Corporate Snapshot Alpha HPA TRADING INFORMATION SHARE PRICE PERFORMANCE ASX CODE A4N Share Price (9-Oct-19) 18c 52 week trading range 8.2c — 18.0c Issued Shares 609.1M _ 2 CAPITAL STRUCTURE 8 Issued Shares 609.1M € Unlisted options (@10c) 23.0M (expire 31 October 2019) a Unlisted options (@15c) 12.
Slide 5: High Purity Alumina (HPA) Market
High Purity Alumina (HPA) Market LATERAL LED CHIP ARCHITECTURE . Alpha HPA HPA demand dominated by: prelectrade = LED market (for sapphire substrates) Contact ver p-GaN layer Aclive layers n-Gan layer Ni HPA \ Pellets Market Demand Powder Mirror layer = Coatings for Lithium-lon Batteries (LiB’s) Con
Slide 6: Global Transportation is Electrifying
Global Transportation is Electrifying Alpha HPA Dramatic EV penetration rates - driven by Govt Regulation The Electric Vehicle (EV) revolution has arrived, underpinned by Government mandated EV targets, led by China and Europe ‘de-carbonisation’ a key investment mega-trend for the I Boar Case decade
Slide 7: Global Transportation is Electrifying
Global Transportation is Electrifying Alpha HPA Passenger car (PC) and commercial vehicle (CV) Global ESS installations (GWh) EV sales forecast 0 > sass PC HEV 50% 150 mms PC PHEV 45% mmm PC BEV 9 CV HEV 40% CV PHEV 35% mmm CV BEV 6 ——% PC EV 30% ——% PC EV (excl. HEVs 25% 20% 15% a 6 p 6 So S EV pen
Slide 8: HPA — A critical part of the EV/battery revolution
HPA — A critical part of the EV/battery revolution IH High Purity Alumina (HPA) is the pure form of aluminium oxide (Al,0,). HPA is a pre-cursor LITHIUM-ION BATTERY SEPARATORS material for the manufacture of ceramic coated Lithium-lon-Battery (Li-B) separators CHARGE CYCLE DISCHARGE CYCLE Alpha HPA
Slide 9: HPA Demand 1:1 linked with the Battery Boom
HPA Demand 1:1 linked with the Battery Boom Alpha HPA HPA Demand Outlook (2018-2025) 140,000 I Sapphire Glass 120,000 O® us Separators |_| Phosphor Applications 100,000 Semiconductors 80,000 LED’s 60,000 40,000 = = Ei ~ fi U L 2018 2019 2020 2021 2022 2023 2024 2025 ‘Source: CRU (2018)
Slide 10: High Purity Alumina (HPA) — Price for Purity
High Purity Alumina (HPA) — Price for Purity Alpha HPA = _HPA’s value derives from its physical properties of extreme hardness, high thermal conductivity, and being chemically inert = Purity is determined by the concentration of trace elements in the alumina compound e.g. iron, magnesium, sodium m P
Slide 11: HPA — Physical Specifications & Morphology
HPA — Physical Specifications & Morphology r = SEM shows the primary a-HPA particles are in rod-like shape and roughly 500 nm (0.5m) in size. = Particle size can be adjusted to suit customer requirements = Particle size distribution (PSD) target below P10% P50% P90% <0.4um <0.5um <2.0um
Slide 12: Existing HPA Market Production Processes
Existing HPA Market Production Processes Existing HPA production is synthesised from Aluminium metal feedstock or produced from hydrochloric acid leach of kaolin clay. HPA from kaolin — schematic flow sheet HPA from Al metal — schematic flow sheet Aluminium Metal ON ene Aluminium -—Soeweneny, Alooxi
Slide 13: HPA First - Process technology based on established SX process
HPA First - Process technology based on established SX process CHEMICAL COUNTER-PARTY By-Product ALUMINA COUNTER-PARTY Drying Calcination Milling : ; Aluminium High Purity Solvent Al-salt HPA Alumina (HPA) Extraction Crystallisation — Pre-Cursor Stage Stage
Slide 14: HPA Process technology based on established SX process
HPA Process technology based on established SX process Alpha HPA holds an Australian, proprietary process approach to HPA production — including by-product credits — producing HPA from Alpha HPA an aluminium chemical feedstock Based on established Solvent Extraction (SX) Process (SX accounts for ~25
Slide 15: HPA Process technology based on established SX process
HPA Process technology based on established SX process Alpha HPA Mixer-Settler cell - Pilot Plant SX SX Pilot in Operation
Slide 16: 'HPA First' — Pre-Feasibility Study — Updated Feb '19
‘HPA First’ — Pre-Feasibility Study — Updated Feb ‘19 Alpha HPA = The ‘HPA First’ PFS has delivered a compelling business case, capable of delivering 10,200tpa of 4N (99.99% purity) High-Purity Alumina (HPA) into the burgeoning HPA market = PFS Highlights include: Production rate of HPA Unit cash co
Slide 17: 'HPA First' — Key Financial Metrics
‘HPA First’ — Key Financial Metrics Alpha HPA HPA Production (t/y) HPA Price Assumption (per/t HPA) $33,333 $25,000 Annual Revenue (including by-products) $413 million $310 million Annual Average Cash Operating Cost $143 million $107.5 million Unit Cash Cost accounting for by-products (per/t HPA) $6
Slide 18: Indicative Project Layout
Indicative Project Layout Alpha HPA
Slide 19: Site Selection: Strategic Options
Site Selection: Strategic Options The ‘HPA First’ process allows for the discretionary location of an HPA Plant within an existing industrial zone offering highly favourable logistics Gladstone SDA (QLD), Kwinana (WA) and Newcastle Port (NSW) offer industrial processing facilities, extensive infrast
Slide 20: 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.
Slide 21: Indicative Project Delivery Timetable
Indicative Project Delivery Timetable = Pilot-plant operation and DFS completion targeted for CY19 ahead of project construction starting CY20 Alpha HPA Task From To MarQ__JunQ__SepQ__DecQ_ Mard__JunQ__SepQ_ DecQ Mard__JunQ_SepQ_ DecQ Mar JunQ__SepQ__DecQ IPRE-CONSTRUCTION Pilot Plant + DFS 103/19 3
Slide 22: HPA First Pilot Plant — Commenced July 2019
HPA First Pilot Plant — Commenced July 2019 Bias fB) HPA Pre-Cursor Production : Sek ee HPA Pre-Cursor — prior to calcination ~21kg of intermediate Al-Salt produced over a 24hr period
Slide 23: Corporate Snapshot
Corporate Snapshot SHAREHOLDERS Alpha HPA TOP 20 SHAREHOLDERS BT Portfolio Services Budworth Capital Ea Permgold Pty Ltd (N. Seckold) Regal Funds Management RECENT HIGHLIGHTS PFS PENDING 2019 MILESTONES DFS HPA First Pre-Feasibility Study Completed Nov 2018 Updated Feb 2019 First HPA production usin
Slide 24: 'HPA First' - Fast Track Path to HPA Production
‘HPA FIRST’ - FAST TRACK PATH TO HPA PRODUCTION The HPA First process uses the Company’s proprietary licenced solvent extraction (SX) and refining technology and a feedstock blend of readily available industrial products rather than mine generated feedstock SIMPLE Does not require a mining operation
Slide 25: Thank You
Norman Seckold Chairman nseckold@alphahpa.com.au Rimas Kairaitis Alpha HPA Managing Director T H A N K Y 0) U rkairaitis@alphahpa.com.au Peter Nightingale Director/Chief Financial Officer pnightingale@alphahpa.com.au Cameron Peacock Investor Relations and Business Development cpeacock@alphahpa.com.a
Slide 26: Appendices
ALPHA HPA LTD (ASX:A4N) Appendices : ; —_—~
Slide 27: Demand for HPA — Regions
Appendix 1 Demand for HPA — Regions Demand for HPA is primarily being driven by , separators in lithium ion batteries (Li-B’s), the increasing adoption of LED (Light Emitting Diode) products and scratch resistant artificial sapphire glass for smartphone screens and watches HPA DEMAND BY GEOGRAPHIC R
Slide 28: Supply of HPA
Appendix 2 Supply of HPA EB ina | ry BB North America BD south Korea France Russia Sumitomo Chemicals PERT Hebei Pengda New Material [ATI Sasol EMCI} Zibo Xinfumeng Chemicals [EXIE Baikowski FP 5% s a xR GLOBAL HPA SUPPLY DISTRIBUTION - 2016E Current HPA supply . is concentrated in the Asia Pacific
Slide 29: High Purity Alumina (HPA) Market
Appendix 3 High Purity Alumina (HPA) Market HPA MarketDemand Batts a LED and Lithium-lon Semiconductor Sorat ero Battery Separator Substrates Coating Phosphor Coating Automotive Household & Industrial Lighting Smart phones, tablets, smart watches Electric Vehicles Consumer Goods Fluorescent Lighting
Slide 30: Statement of Compliance
Appendix 4 Statement of Compliance Competent Persons Statement (Process Development Testwork) Alpha HPA 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 C
Slide 31: Modifying Factors
Appendix 5 Modifying Factors Albho HPA [Study Status [The ‘HPA First’ Pre-Feasibility Study (PS) indicates the project is technically and finanoially viable. The Study was completed by Prudentia Process Consulting, with input from the Company and other specialist consultants. The activities and find
Slide 32: Modifying Factors
Appendix 5 Modifying Factors Aho HPA Financial Project costs have been estimated by Prudentia Process Consultants on the basis below. |CapEx: IThe capital cost estimate is provided at an accuracy level of +30% to -15%. The capital cost estimate has been based on the implementation of an Engineering,