Altech Chemicals Limited (Altech/the Company) (ASX: ACT) (FRA: A3Y) is pleased to advise that a recent interview by Ausbiz with managing director, Iggy Tan is now available for viewing on the Company’s web site www.altechchemicals.com (VIDEO’s) or via the link: https://www.altechchemicals.com/news/ausbiz-interview-iggy-tan.
Also, a recording of the Broker Briefing Investor Webinar that was conducted on Thursday 15 July 2021, is also available for viewing on the Company’s web site or via the link: https://altechchemicals.com/news/mining-resources-investor-webinar-july-2021.
About Altech Chemicals Ltd (ASX: ATC)
Altech Chemicals Ltd has developed the technology to nano-coat particles of graphite and silicon, typical of those used in lithium-ion batteries, with a layer of high purity alumina. The use of alumina coated graphite and silicon particles within a lithium-ion battery anode are offered as a solution to increased battery life, energy capacity and a reduction of the first-cycle-loss capacity. The Company recently announced the commencement of a pre-feasibility study for the construction of a battery materials HPA coating plant in the Schwarze Pumpe Industrial Park, Saxony, Germany. Alumina feedstock for the plant would be supplied from Altech’s Malaysian high purity alumina (HPA) plant. The Company is currently working to close the balance of project finance for its vertically integrated (HPA) project that comprises a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia and a 100%-owned kaolin mine at Meckering, Western Australia.
HPA is a high-value (US$28,000 – US$40,000 per tonne) high margin and highly demanded product, as it is the critical ingredient for the production of synthetic sapphire and is increasingly consumed in the manufacture of lithium-ion batteries. Synthetic sapphire is used in the manufacture of substrates for LED lights; semiconductor wafers in the electronics industry; for scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire. Lithium-ion battery manufactures use HPA as a coating for the plastic anode/cathode separator to reduce separator shrinkage and combustibility. Global HPA demand is approximately 19,000tpa (2018) and demand is growing at an estimated annual rate of 30%.
Conservative (bank case) cash flow modelling of the Project shows a pre-tax net present value of US$505.6m at a discount rate of 7.5%. The payback period is 3.8 years at full rate (4.5 years real) and the pre-tax internal rate of return is 21.9%. The Project generates annual average net free cash of ~US$76m at full production (allowing for sustaining capital and before debt servicing and tax), with an attractive margin on HPA sales of ~63%. Annual sales revenue is US$120.3m applying an average conservative FOB sales price of US$26,900/t of finished product HPA. Operating costs, including mining, shipping and chemical processing average US$44.6m p.a. or US$9,900/t of HPA.