Altech Chemicals Ltd (ASX:ATC) Quarterly Activities & Cash Flow Report

Altech Chemicals Ltd (ASX:ATC) provides the Company's Quarterly Activities & Cash Flow Report.

HIGHLIGHTS

Works Approval granted for Meckering kaolin deposit

- Works Approval granted by WA Department of Water and Environmental Regulation (DWER)

o Construction of kaolin screening and loading facility at Meckering approved

o Works include ROM stockpile, evaporation pond, trommel screening unit, and loading facility

- Meckering kaolin mining also fully permitted to proceed, subject to funding

Export credit finance approval target date set

- Successful independent project finance due diligence program completed with no fatal flaws identified

- Target date of 14 December 2017 set for decision making by German government inter-ministerial committee (IMC) for German ECA cover approval

- Expert Opinion report for Euler Hermes (German ECA)

- Target date a significant milestone for the development of the HPA project

Option to purchase Meckering mining lease land exercised

- Option to purchase Meckering freehold land over Altech's granted mining lease M70/1334 exercised

- Construction of Meckering kaolin mine, screening and loading facility fully permitted

Altech finalises 4,500tpa HPA plant design

- Upgraded 4,500tpa capacity HPA plant design

- Plant process flow sheet optimised and finalised

- Flexible finishing line capable of producing sapphire grade and battery grade HPA

Positive Final Investment Decision Study (FIDS)

- Positive outcome from Final Investment Decision Study (FIDS) for 4,500tpa HPA project

- Study economics include:

o Pre-tax NPV7.5 US$ 505 million

o Internal Rate of Return (IRR) 22%

o Payback (full rate) 3.9 years

o EBITDA US$ 76 million p.a.

o Capital cost US$ 298 million

- Total target debt by KfW IPEX-Bank US$ 185 million

- US$ 165 million export credit finance, US$ 20 million at commercial terms

Successful A$17 million share placement

- US$4.0 million (~A$5.1 million) commitment from German engineering firm SMS group

- A$3.0 million commitment from Melewar Group

- Significant demonstration of confidence in Altech and its HPA project

To view the full report, please visit:
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About Altech Batteries Ltd

Altech 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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