Altech Chemicals Limited ASX: ATC FSE:A3Y Resources Rising Stars Company Presentation Shane Volk Chief Financial Officer
World leading producer of high purity alumina (HPA) Our Vision 4,500 tonnes pa
• Sapphire & Ruby Formed from high purity alumina (HPA) Al 2 O 3 • Nature like diamonds • Sapphire • Colour from impurities Gemstone Nearly as hard as diamond (Mohs 9) •
High Purity Alumina High Purity Alumina (Al 2 O 3 ) 99.99% (4N) purity or higher “ HPA ” Negligible sodium and iron What is HPA? Smelter Grade Alumina (SGA) × ~99.5% Al 2 O 3 × ~0.3% Sodium
HPA Demand Synthetic Sapphire (LED’s) pure alumina (4N or higher) NO SODIUM What is HPA? Lithium-ion Battery separator sheets pure alumina (4N or higher) minimal impurities
High Purity Alumina Synthetic Sapphire Sapphire Furnace (2,000 o C) Synthetic Sapphire High Purity Crystal Boule Alumina Lithium-ion Batteries Battery Separators / Cathode / Anode Lithium-ion Batteries
Lithium-ion Battery Separator Anode Sheet Separator Cathode Sheet HPA is used in lithium-ion battery separator sheet coatings
Sapphire Crystal Applications LEDs Sapphire Wafer / Substrate Light Emitting Diodes LED Glass Sapphire Cores Sapphire Glass Smartphone and Lenses
LEDs – lighting of the future Conventional LEDs New LED products
Sapphire Glass HTC U Ultra (128Gb) o February 2017 o Sapphire crystal display Smartphone sapphire screen iPhone o Sapphire crystal lens o Finger print recognition
Sapphire Glass Scratch Test
PREMIUM PRICE High price High Purity Smelter Grade High Purity High Purity for purity Alumina Alumina Alumina Alumina HPA 99.999% (5N) SGA 99.5% HPA 99.9% (3N) HPA 99.99% (4N) US$50,000 per t US$400 per t US$6,000 per t US$27,000 per t Our Target Business
70% of HPA demand Asia Pacific (APEC) • World’s manufacturing hub • • Malaysian HPA plant location well-positioned HPA Transport, customer service, technical • Geographic credibility Demand Americas 14% Europe, Middle East, Africa 16% Asia Pacific 70%
“The global High Purity Alumina Market is expected to reach USD 6.41 billion by 2024, according to a new report by Grand View Research, Inc. … .. as it is a cost-effective and an energy efficient substitute for traditional materials including incandescent light bulbs, is expected to drive demand. ” (March 14, 2017) HPA demand Global High Purity Alumina Forecast 2015 -2024 forecast 86,831 Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Forecast 2016- 2024” 75,637 HPA Comsumtion tpa 65,036 55,350 46,748 39,786 34,328 29,669 25,315 21,309 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
• Six largest HPA producers: China (3), Japan (1), South Africa (1) France (1) Sumitomo Chemicals (Japan) 3,020 Current HPA Others (15), 3,570 Sasol (South Africa) Huantou, 800 1,800 Producers Dailian Rall, 600 Nippon Light Metal, 1,100 Hebei Pengda (China) Baikowski (France) 3,000 1,200 Xuancheng Jing Rui Zibo Xinfumeng (China) (China) 1,200 2,500 Source: Technavio Research
Altech’s Differentiation Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina Aluminium Metal 99.99% (4N) 99.5% HPA ~US$3,000 per tonne ALTECH HPA PLANT One Single Process Step Kaolin 99.99% (4N) (aluminous clay) HPA • Mining lease (M70/1334) granted • Altech 100% of kaolin deposit in WA Ore Reserve 1.2Mt @ 30% Al 2 O 3 for • • Low environmental impact 30 year (stage 1) mine-life 130kms from Fremantle Port •
• Very low iron (Fe) due to weathering • 12.7Mt JORC Mineral Resources^ (250 yrs) • Measured Resources 1.5Mt @ 30% Al 2 O 3 • Indicated Resources 3.3Mt @ 30% Al 2 O 3 • Inferred Resources 7.9Mt @ 29.1% Al 2 O 3 Low-impurity • Deposit in Western Australia Kaolin Feedstock Bauxite Canadian Altech % Darling HPA HPA Project Range* Project Al 2 O 3 34.5 22.77 30.5 SiO 2 21.5 53.29 56.3 Fe 2 O 3 21.2 8.36 0.7 TiO 2 2.00 0.98 0.7 K 2 O 0.24 3.41 0.1 NaO 0.005 1.42 0.1 * Typical Mean Analysis ^ JORC (2012) Mineral Resources (refer ASX Announcement 11 October 2016); the Company is not aware of any new information or data that materially affects the information included in this announcement and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
• Established HCl leach process Developed in 1980’s by alumina industry • Couldn’t compete with Bayer SGA costs • But great at producing HPA (no sodium-ions) • Altech HPA • However little demand for HPA in 1980s Process Demand for HPA is here today •
Competitors US$14 - 17,000/t (Breakaway Research) • 1. We own our feedstock 2. Main reactant HCl re-used Bottom 3. Plant in low cost country (Malaysia) Quartile for Op Costs Altech Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Forecast 2016- 2024”
Altech’s HPA Plant – Johor, Malaysia Crystallisation Plant Residue Plant Acid Leach Calcination Final Product Kaolin Calcination Kaolin Plant Sea container unloading Security
Altech HPA Process ROM Campaign Mining Sea Container MECKERING To Fremantle Shipping Sea Container Meta Kaolin Flash JOHOR Dryer Hydrochloric Acid Cooler Filter Screening Calciner Milling HCl Gas Polishing Screening Filter Filter 700 C Drum Scrubber > 0.3mm Quartz Oversize Stage 1 Crystalisation Acid Leach Sales Limestone & Lime Neutralised 99.99% Spray Centrifuge Jet Mill Cooler Silica Residue HPA Battery Grade Option Dryer Beads 1600 C Neutralising Al Cl 3 Sales Tank Crystals Packaging Filter Cooler Pelletiser Feed Tank Tunnel Kiln HCl Plant HCl Gas HCl HCl water water Gas Alpha Al 2 O 3 Centrifuge Centrifuge 1250 C 700 C Screen HX Al Cl 3 Al Cl 3 Calciner Roaster Cooler Bead Mill Stage 3 Polishing Wash Stage 2 Crystalisation Filter Crystalisation HCl Wash HCl Wash
Pre-tax NPV 7.5 US$ 505 million • Internal Rate of Return (IRR) 22% • Final Payback (full rate) 3.9 years • Investment • EBITDA US$ 76 million p.a. Decision Study Capital cost US$ 298 million • Total target debt of US$ 185 million • FIDS • Production Costs - US$ 9.90/kg LT Sale Price - US$ 26.9/kg • Gross Margin – 63% • 23
Current price in Japan - US$ 40.0/kg • Pre-tax NPV 7.5 US$ 1.1 billion • Internal Rate of Return (IRR) 33% • High Case • Payback (full rate) 2.2 years Economics EBITDA US$ 133 million p.a. • Production Costs - US$ 10.50/kg • • Sale Price - Gross Margin – 74% 24
• Off-take sales agreement with Mitsubishi First 10 years of HPA operations • Secures sales for HPA plant production • Mitsubishi • Exclusive global distributor Experienced with HPA • off-take Strategic priority: lithium-ion batteries •
Target total debt of US$ 185 million • US$ 165 million export credit finance • Final Stage of • Debt funding with KfW IPEX-Bank Debt Funding • 50% of plant – German suppliers Low interest, long tenure Approval • ECA approval date 14 Dec 2017 •
• SMS group German EPC contractor Lump sum turn key contract • Completion and cost risk • Lump Sum Process & throughput guarantee • Turn Key • Equity investment contribution Detailed design at advanced stage • Contract Completing EPC cost estimate • • US$15.0 million equity commitment 27
Altech Chemicals Limited Market Capitalisation - end of month ($m) $70.0 62 $60.0 48 $50.0 45 40 Altech 39 $40.0 36 36 36 35 35 35 33 32 32 31 31 31 31 $30.0 Growth 15 17 17 $20.0 16 16 15 15 14 14 12 Performance 8 7 8 8 7 7 7 $10.0 $- Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-15 Nov-15 Oct-16 Nov-16 Oct-17 Nov-17 8.5 fold steady market cap growth • Ave trade value $2k/day to $150k/day • • 350% increase in shareholders to 2,300
Right Place Right Time Right Feedstock Right Technology Thank you
Recommend
More recommend
