Improves Financials of HPA Project with BFS update
Perth, Mar 16, 2016 AEST (ABN Newswire) - Altech Chemicals Limited (
ASX:ATC) is pleased to announce the results of an update to its Bankable Feasibility Study (BFS) for the development of a 4,000tpa high purity alumina (HPA) processing plant at Johor, Malaysia.
Highlights
- Updated Bankable Feasibility Study confirms financial robustness of Altech's HPA project
- Improved financials, include:
-- Increased estimated pre-tax NPV9 of US$358 million (previously US$326 million)
-- Higher Internal Rate of Return (IRR) of 33% (previously 30%)
-- Capex US$78.7 million (was US$76.9 million)
-- Long-term sale price forecast unchanged at US$23,000/tonne for 99.99% (4N) product
-- Cost of goods sold slightly higher at US$9,074/tonne
-- EBITDA of US$55.7 million per annum at full production
Background
Results from the BFS were announced on 29 June 2015 and since then the Company has worked with its various consultants to further refine the study. Key items of work included optimising the process flow sheet, refining equipment selection and pricing, the critical evaluation of key assumptions and operating parameters and an update of key consumables pricing and sourcing. As previously announced, as part of this refinement the beneficiation of alumina rich kaolin from the Company's proposed Meckering mining operation will be in Malaysia, rather then on-site at Meckering, Western Australia as was contemplated in the BFS (refer ASX announcement dated 26 November 2015 for details).
Updated BFS
The financials and technical outcomes from the updated BFS have confirmed the results of the initial BFS.
The updated BFS reports increases in project net present value (NPV) (US$358(9) million Vs US$326(10) million), payback (3.7 years Vs 3.8 years) and an internal rate of return (33.3% Vs 30.3%). Total Capital cost is US$78.7 million (previously US$76.9 million), operating costs per kg of finished product at full rate production is now US$9.07 (was US$8.14).
The financial and technical outcomes from the updated BFS remain particularly compelling.
The sales price assumption for HPA in the updated BFS is unchanged at US$23.00 per kg (US$23,000 per tonne), foreign exchange rate assumptions have been revised to USD:AUD 0.70 for capex (previously 0.78) and USD:AUD 0.80 for opex (was 0.90). The discount rate applied to project cash flows for the 30-year project life is now 9.0% (was 10%), reflecting a lower cost of debt financing because of the Company's intended application for ~US$40.0 of German export credit finance, from total project debt currently estimated at ~US$60.0 million (refer ASX announcement dated 10 December 2015 for details).
Altech's managing director Mr Iggy Tan said, "This updated BFS confirms the financial and technical robustness of the Company's HPA project, as was identified in the original BFS.
"Since the completion of the BFS in June 2015, the various technical consultants have taken time to conduct a detailed review of the entire HPA project, identifying optimisation opportunities, critically reviewing equipment selection, and updating all equipment and operating cost pricing - quite important given the changes that have transpired in the resources industry since the BFS was completed.
"The focus for Altech now is the finalisation of project financing, completion of final design and construction drawings, the formal appointment of the EPC contractor and the subsequent award of various works packages to enable the commencement of construction in early 2017."
A complete summary of the original BFS is included in the ASX Announcement by the Company dated 29 June 2015, which is also available on the Company's web site, http://www.altechchemicals.com.au
All material changes to assumptions from the original BFS are included in this ASX Announcement (refer to link below), or those ASX Announcements referenced in this announcement.
To view the release including tables, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATC-756689.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.
| ||
|
