Letter to Shareholders
Perth, July 16, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (
ASX:ATC) is aiming to become a world leading producer of 99.99% (4N) high purity alumina (HPA) (Al2O3).
On 29 June 2015, Altech was excited to release the results from its Bankable Feasibility Study (BFS) for the construction and operation of a 4,000tpa HPA plant at Tanjung Langsat, Malaysia. The plant will apply a hydrochloric acid (HCl) leach process to produce HPA directly from kaolin clay that will be sourced from the Company's 100% owned kaolin deposit at Meckering, Western Australia.
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 HPA, is a technically viable and commercially attractive business case - a potential "company maker".
BFS Highlights:
- Capital cost estimate US$76.9 million
- Payback period 3.8 years
- Estimated pre-tax NPV10 of US$326.1 million (@ 10% discount)
- Highly attractive IRR of 30.3%
- Long-term sale price forecast of US$23,000/tonne for 99.99% (4N) product
- Cost of goods sold US$8,140/tonne
- EBITDA of US$59.4 million per annum.
The Company is currently in the process of permitting, securing off-take interest and project financing, with the aim of breaking ground for project construction in Q1-2016. I attach the 29 June 2015 ASX announcement on the results of the BFS for your reference.
To view the BFS, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATC-726544.pdf
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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