Altech Batteries Ltd Stock Market Press Releases and Company Profile
Quarterly Activities and Cashflow Report
Quarterly Activities and Cashflow Report

Perth, July 31, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (googlechartASX:ATC) presents the quarterly activity report for the three months ended 30 June 2015.

During the quarter, the primary focus for the Company was the completion of a Bankable Feasibility Study for the development of a 4,000tpa high purity alumina (HPA) processing plant at Tanjung Langsat, Johor, Malaysia and an associated kaolin beneficiation plant at Meckering, Western Australia to provide feedstock for the HPA plant (the Project). Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) (Al2O3), or HPA.

The financial and technical outcomes from the BFS are particularly compelling and it is now the Company's intention to move to secure the required equity and debt funding that will enable it to rapidly transition the Project to final design and development.

Total capital costs for the Project are estimated at US$76.9 million (A$98.6 million), assuming a USD:AUD exchange rate of 0.78.

Bankable Feasibility Study (BFS) completed three months ahead of schedule

Compelling financial and technical results:

- Capital cost estimate US$76.9 million (A$98.6million)

- Payback period 3.8 years

- Estimated pre-tax NPV of US$326.1 million (A$362.4 million) (@ 10% discount)

- Highly attractive IRR of 30.3%

- Long-term sale price forecast of US$23,000/tonne (A$25,560/tonne) for 99.99% (4N) product

- Cost of goods sold US$8,140/tonne (A$9,050/tonne)

- EBITDA of US$59.4 million (A$66.0 million) per annum.

Altech will now proceed to the funding phase of the project

Annual revenues at full production (4,000tpa of HPA) are forecast at US$92.0 million (A$102.2 million), with an assumed long-term selling price of US$23,000 (A$25,560) per tonne of HPA, FOB Malaysia. Total annual operating costs, including mining, beneficiation, shipping and processing are estimated at US$32.6 million (A$36.2 million) or US$8,140 (A$9,050) per tonne of final HPA product at full production, resulting in an impressive gross margin of ~65%.

Earnings before interest, tax and depreciation (EBITDA) are expected to be US$59.4 million (A$66.0 million) per annum at full production, the pre-tax Net Present Value (NPV) of the Project is US$326.1million (A$362.4 million) at a discount rate of 10%, and the Internal Rate of Return (IRR) is ~30.3%. Payback of capital is 3.8 years.

The Project presents a robust and attractive business case that delivers high margins, strong cash flows, and the rapid payback of a relatively modest capital investment. Having considered the results of the BFS, the Company will now proceed to secure the required funding and continue with detailed design, permitting and approvals, and subject to funding, commence the ordering of long-lead items, initiate site clearances and then commence construction.

Altech's managing director Mr Iggy Tan said, "The results from the BFS have confirmed the Company's belief that the unique qualities of its Meckering kaolin deposit, combined with HCl processing to produce high purity alumina, is a technically viable and commercially attractive business case - a potential "company maker".

"Subject to successful funding, the development schedule will see campaign mining commence at Meckering around Q4-2016".

Altech Chemicals Limited (Altech/the Company) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al O ) through the construction and 2 3 operation of a 4,000tpa high purity alumina (HPA) processing plant at Tanjung Langsat, Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100% owned kaolin deposit at Meckering, Western Australia where a beneficiation plant will be constructed and mine developed to supply ~18,656tpa (dry) of beneficiated kaolin to the HPA plant.

HPA is a high-value product and is the major source material for the manufacture of sapphire substrates (used in a range of applications, most notably in LEDs), semiconductor wafers (high performance electronics) and scratch-resistant artificial sapphire glass. The global HPA market is approximately 19,040tpa (2014) and is expected to at least double over the coming decade.

To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATC-728632.pdf


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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