Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — Investor Presentation (December 2017)
31 slides from Altech Batteries's investor presentation, Dec 11, 2017
Slide 1: Company Presentation
Altech Chemicals Limited ASX: ATC FSE:A3Y For personal use only Company Presentation Iggy Tan Managing Director
Slide 2: 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 3: 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 4: 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 5: Our Target Business
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 6: LED's & 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 7: 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 8: Light Emitting Diode
For personal use only Light Emitting Diode
Slide 9: LED Expansions
LED Expansions For personal use only Xiamen Changelight Purchases AIXTRON MOGVD Technology to Expands ROY LED Production
Slide 10: 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 11: Sapphire Glass Scratch Test
Sapphire Glass Scratch Test For personal use only
Slide 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: Plant Designs Completed
Plant Designs Completed For personal use only Cyclone Baghouse Baghouse Kiln Exhaust Kaolin Kiln Kaolin Feed Exhaust Fan Kaolin Cooler Mixer Flash Dryer Dust Return Kaolin Kiln
Slide 22: Plant Designs Completed
Plant Designs Completed For personal use only Scrubber Roaster Stack Roaster Baghouse Stack Kiln Baghouse Roaster HPA Burner Cooler Roaster Burners HPA Kiln
Slide 23: 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 23
Slide 24: 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 • Total target debt of US$ 185 million FIDS • Production Costs - US$ 9.90/kg • LT Sal
Slide 25: 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% 25
Slide 26: Bottom Quartile for Op Costs
For personal use only • Competitors US$14 - 17,000/t (Breakaway Research) 1. We own our feedstock 2. Main reactant HCl re-used 3. Plant in low cost country (Malaysia) Bottom Quartile Altech for Op Costs Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Fo
Slide 27: Off-take sales agreement with Mitsubishi
For personal use only • Off-take sales agreement with Mitsubishi • First 10 years of HPA operations • Secures sales for HPA plant production • Exclusive global distributor Mitsubishi • Experienced with HPA signs • Strategic priority: lithium-ion batteries off-take
Slide 28: Final Stage of Debt Funding Approval
For personal use only • Target total debt of US$ 185 million • US$ 165 million export credit finance • Debt funding with KfW IPEX-Bank Final Stage of • 50% of plant – German suppliers Debt Funding • Low interest, long tenure Approval • ECA approval date 14 Dec 2017
Slide 29: Market Capitalisation - end of month
For personal use only Altech Chemicals Limited Market Capitalisation - end of month ($m) $100.0 $90.0 84 $80.0 $70.0 60 $60.0 45 48 $50.0 40 39 $40.0 31 35 35 36 36 35 36 31 33 32 31 32 31 $30.0 16 Altech $20.0 12 15 14 16 15 17 14 15 17 7 7 $10.0 $- Growth Sep-15 Feb-16 Apr-16 Sep-16 Feb-17 Apr-17
Slide 30: Thank you
For personal use only Right Place Right Time Right Feedstock Right Technology Thank you
Slide 31: 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
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