Proactiveinvestors United Kingdom Altech Chemicals Ltd https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Altech Chemicals Ltd RSS feed en Wed, 17 Jul 2019 00:26:18 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Altech Chemicals Ltd receives Speculative Buy from Perth broker ]]> https://www.proactiveinvestors.co.uk/companies/news/165384/altech-chemicals-ltd-receives-speculative-buy-from-perth-broker-70658.html Altech Chemicals Ltd (ASX:ATC) has received a Speculative Buy from Perth-based stockbroking firm DJ Carmichael.

The broker applied a valuation of $0.355 from $0.41 per share. The following is an extract from the report.


ECA financing steps in final throws

ATC are making good progress on their project funding application to the Federal Republic of Germany’s Export Credit Agency (ECA).

ATC are now at stage 7 of a 9 stage process that, if successful, will result in the majority of the project debt being provided at an extremely low interest rate.

In addition, ATC is seeking to increase the percentage of total project debt to be covered under export credit, thereby decreasing the repayments and increasing yearly project cash flows.

The recent successful $10m capital raise should see ATC funded through to first drawdown of the project funding Q1 CY17.


Key Points

- ATC enter the final stages of German project financing: ATC received positive preassessment from the German Government in early August and has rapidly progressed into the last three stages of the ECA finance application. We expect to see initial responses from the ECA cover application in Q4 should ATC be successful, with first drawdown on project financing during Q1CY17.

- Increase in percentage cover sought: ATC, via its ECP contractor, M+W Group, is seeking additional ECA cover due to the high amount of German and European equipment supplied to the project. If successful, this will see financing under the ECA arrangement increase from US$40m to US$60m and a decrease in the amount required from a senior debt facility from US$20m to US$10m.

- Site visits and DD consultants appointed: ATC and KfW IPEX-Bank have already appointed due diligence consultants to the project who will make their report on the legal, technical and market aspects of the project available to the German Government for final approval. Once submitted the German Government make a decision and preliminary approval of ECA cover is communicated to ATC. This is legally binding subject to conditions precedent such as all permits being in place and equity financing complete.

- Recommendation and Valuation: We maintain our Speculative Buy recommendation but decrease our valuation by 13% to take into account additional shares on issue after adjusting for increased cash. This moves our risked valuation to $0.355 from $0.41 per share.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 25 Aug 2016 16:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/165384/altech-chemicals-ltd-receives-speculative-buy-from-perth-broker-70658.html
<![CDATA[News - Altech Chemicals Ltd receives lenders first draft indicative term sheet ]]> https://www.proactiveinvestors.co.uk/companies/news/165383/altech-chemicals-ltd-receives-lenders-first-draft-indicative-term-sheet-70632.html Altech Chemicals Ltd (ASX:ATC) has received a summary of senior facility agreement indicative terms and conditions from German government-owned KfW IPEX-Bank for the proposed US$70 million of debt financing.

The financing is for Altech's Malaysian high purity alumina (HPA) project.

Iggy Tan, managing director for Altech, commented:

“The debt financing is progressing well and the senior facility agreement indicative terms and conditions presented by KfW IPEX-Bank is the next important step towards securing finance.

"The debt and ECA cover is still subject to due diligence and various loan approval steps, however receiving the indicative terms and conditions whilst a positive outcome but does not imply that the ECA or debt financing applications will be successful.”

Altech and KfW IPEX-Bank have now commenced detailed discussions and negotiations of the proposed facility agreement terms and conditions, which are not binding on either party.


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry and scratch-resistant artificial sapphire glass. Sapphire glass is used in models of the Apple watch.

There is no substitute for HPA in the manufacture of artificial sapphire.

Altech was recently granted its mining lease at Meckering, where it is planning to mine 120,000 tonnes of kaolin every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000 tonnes per annum and transported to Johor, Malaysia for processing into HPA at the company’s proposed plant.


Kaolin resource upgrade

Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.

The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 24 Aug 2016 09:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/165383/altech-chemicals-ltd-receives-lenders-first-draft-indicative-term-sheet-70632.html
<![CDATA[News - Altech Chemicals Ltd simplifies debt financing for Malaysian alumina plant ]]> https://www.proactiveinvestors.co.uk/companies/news/165382/altech-chemicals-ltd-simplifies-debt-financing-for-malaysian-alumina-plant-70506.html Altech Chemicals Ltd (ASX:ATC) will reduce the cost of debt required for the proposed high purity alumina (HPA) plant in Malaysia through a restructure.

By increasing the component of debt provided by KfW IPEX-Bank from Germany, Altech reduces the uncovered debt amount.

With the restructure, total project debt of US$70 million will be required, composed of US$60 million from KfW IPEX-Bank and the balance of US$10 million remaining uncovered.

KfW IPEX-Bank is a government owned bank supported by German export credit agency (ECA), Euler Hermes, which means it provides government backed loans at competitive rates.

The loan is subject to ongoing due diligence and loan approval.

Iggy Tan, managing director, commented: "Increasing the ECA application amount to US$60 million for our proposed HPA project is an extremely positive outcome for the company and testament to the projects financial robustness."


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry and scratch-resistant artificial sapphire glass. Sapphire glass is used in models of the Apple watch.

There is no substitute for HPA in the manufacture of artificial sapphire.

Altech was recently granted its mining lease at Meckering, where it is planning to mine 120,000 tonnes of kaolin every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000 tonnes per annum and transported to Johor, Malaysia for processing into HPA at the company’s proposed plant.


Kaolin resource upgrade

Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.

The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.


Funding

Last month Altech welcomed a number of institutional investors onto its share register as a result of a A$10 million oversubscribed share placement.

The institutions were predominantly from Australia, New Zealand, Hong Kong and Asia.

Altech’s plan is to offer a finished product range that will include HPA tailored for the synthetic sapphire and lithium-ion battery separator sheet manufacturing sectors, two rapidly growing segments of the HPA market.


Analysis

Achieving project financing for the proposed Malaysian HPA plant remains a key catalyst for Altech.

By increasing the amount of debt provided by an EPA, Altech is able to lower the overall interest costs of the proposed debt structure.

Furthermore, a single project lender, as opposed to multiple lenders, will significantly simplify and streamline financing, documentation and securitisation.

The share price is up 25% over the past 3 months, currently trading at $0.16.

Altech maintains broker support with a valuation of $0.41 per share.

HPA demand for lithium-ion battery manufacturing is forecast to increase at 30% per year to 2025 as forecast by Deutsche Bank.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 17 Aug 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/165382/altech-chemicals-ltd-simplifies-debt-financing-for-malaysian-alumina-plant-70506.html
<![CDATA[News - Altech Chemicals Ltd's substantial holder increases stake ]]> https://www.proactiveinvestors.co.uk/companies/news/165381/altech-chemicals-ltds-substantial-holder-increases-stake-70423.html Altech Chemicals Ltd (ASX:ATC) has received a change of interests from substantial holder Melewar International Investment Company Limited and MCC Group Berhad.

Melewar now holds a 12.14% stake, up from 7.2%.

Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses.

Altech recently raised A$10 million in an oversubscribed share placement, predominantly from Australia, New Zealand, Hong Kong and Asia.

Funds raised will be applied to finalising the detailed design of the company’s proposed Malaysian high purity alumina (HPA) plant, completion of independent due diligence associated with finalising debt financing, closure of debt financing and for general working capital purposes.

Altech’s plan is to offer a finished product range that will include HPA tailored for the synthetic sapphire and lithium-ion battery separator sheet manufacturing sectors, two rapidly growing segments of the HPA market.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 15 Aug 2016 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/165381/altech-chemicals-ltds-substantial-holder-increases-stake-70423.html
<![CDATA[News - Altech Chemicals Ltd appoints due diligence consultants ]]> https://www.proactiveinvestors.co.uk/companies/news/165380/altech-chemicals-ltd-appoints-due-diligence-consultants-70352.html Altech Chemicals Ltd (ASX:ATC) has now appointed due diligence consultants to undertake the definitive technical, market and legal review on the high purity alumina (HPA) project in Western Australia.

The appointment was made on behalf of the proposed financier, Germany’s government-owned KfW IPEX-Bank supported by German export credit agency Euler Hermes.

Due diligence activities have now progressed to the next stage and site visits were conducted last week by the various consultants.

Visits include to the company’s Meckering kaolin deposit; the HPA pilot plant site at Simulus Engineering’s Perth testing facility and to the proposed HPA plant site at the Tanjung Langsat Industrial Complex, Johor, Malaysia.

Iggy Tan, managing director for Altech, commented:

“The commencement of the lenders detailed project due diligence is a significant advance towards finalising project financing.

"The site visits last week follow an extremely constructive due diligence initiation meeting in Stuttgart, Germany during which all participants were updated on the status of project detailed design and funding plans.

"The site visits enabled the consultants to quickly familiarise themselves with the project, the company and provided for specific queries to be answered in a most effective manner.”


Kaolin resource

Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.

The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 10 Aug 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/165380/altech-chemicals-ltd-appoints-due-diligence-consultants-70352.html
<![CDATA[News - Altech Chemicals Ltd receives positive pre-assessment of German financing ]]> https://www.proactiveinvestors.co.uk/companies/news/148492/altech-chemicals-ltd-receives-positive-pre-assessment-of-german-financing-70216.html Altech Chemicals Ltd (ASX:ATC) has been officially advised by Euler Hermes Aktiengesellschaft (Hermes), of a positive pre-assessment by the German Government inter-ministerial committee (IMC) and Hermes, of Altech’s export credit project finance application for cursory review.

Hermes is the appointed export credit agency that administers the export credit scheme for the German government.

The positive pre-assessment of Altech’s export credit application is an important milestone in the assessment process of the company’s high purity alumina (HPA) project and its ECA application.

Whilst it is not legally binding and issued without prejudice to any decision to provide ECA cover, it reflects significant progress of the German Government approvals process.

Iggy Tan, managing director for Altech, said that the positive pre-assessment by the IMC and Hermes is a very significant milestone in the company’s endeavours for funding its HPA project.

“Obtaining this positive pre-assessment of the project from Hermes in such a short period of time is a real boost to the team.

"Another great effort by our Perth based management team, our German based financing consultants, KfW IPEX-Bank and our German EPC contractor M+W Group”.


Next steps

The assessment of the ECA application sets in motion a formal detailed due diligence of the project, that will be undertaken by various consultants appointed by the company’s mandated German financier, KfW IPEX-Bank GmbH.

The due diligence process culminates in an “expert opinion” report on the project to the IMC, and will form the basis of a decision on the approval to offer ECA cover by the IMC and Hermes.


Kaolin resource

Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.

The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.


Funding

Last month Altech welcomed a number of institutional investors onto its share register as a result of a AU$10 million oversubscribed share placement.

The institutions were predominantly from Australia, New Zealand, Hong Kong and Asia.

Altech’s plan is to offer a finished product range that will include HPA tailored for the synthetic sapphire and lithium-ion battery separator sheet manufacturing sectors, two rapidly growing segments of the HPA market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 03 Aug 2016 09:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148492/altech-chemicals-ltd-receives-positive-pre-assessment-of-german-financing-70216.html
<![CDATA[News - Altech Chemicals Ltd bags A$10M institutional investment ]]> https://www.proactiveinvestors.co.uk/companies/news/148491/altech-chemicals-ltd-bags-a10m-institutional-investment-70059.html Altech Chemicals Ltd (ASX:ATC) has welcomed a number of institutional investors onto its share register as a result of a AU$10 million oversubscribed share placement.

The institutions were predominantly from Australia, New Zealand, Hong Kong and Asia.

The placement was priced at $0.14.

Funds raised will be applied to finalising the detailed design of the company’s proposed Malaysian high purity alumina (HPA) plant, completion of independent due diligence associated with finalising debt financing, closure of debt financing and for general working capital purposes.

Altech’s plan is to offer a finished product range that will include HPA tailored for the synthetic sapphire and lithium-ion battery separator sheet manufacturing sectors, two rapidly growing segments of the HPA market.

Iggy Tan, managing director, commented:

“The company is extremely pleased with the quality and calibre of institutions that have joined our share register as part of the placement.

"Most of the participants were surprised as to how advanced the company is with its HPA project, with the bankable feasibility study completed, off-take in place and the advanced nature of debt funding, all of which has transferred directly into demand for the placement, which was subsequently heavily oversubscribed.

“Institutional investor representation on the company’s share register has increased from around 9% to closer to 23% following the placement, with plans to grow it over time."

Tan also recently said that with the forecast rapid increase in demand for HPA, particularly from lithium-ion battery separator manufacturers, combined with supply expansion timeframe limitations, that there is a real possibility of a HPA supply squeeze in the short to medium term.


Kaolin resource

Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.

The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 27 Jul 2016 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148491/altech-chemicals-ltd-bags-a10m-institutional-investment-70059.html
<![CDATA[News - Altech Chemicals Ltd granted additional time to update on capital raising ]]> https://www.proactiveinvestors.co.uk/companies/news/148490/altech-chemicals-ltd-granted-additional-time-to-update-on-capital-raising-70028.html Altech Chemicals Ltd (ASX:ATC) has been granted addition time by the ASX to provide details of a capital raising, in the form of a voluntary suspension.

It is expected the voluntary suspension will be lifted on or before Wednesday 27 July 2016.

Perth stockbroking firm DJ Carmichael Pty Ltd and Hong Kong stockbroking firm Empire Capital Partners are arranging a placement to a variety of professional and sophisticated investors.

Funds raised will be applied to the detailed design of the company’s proposed high purity alumina (HPA) plant at Johor, Malaysia, the completion of debt financing for the project and for general working capital purposes.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 26 Jul 2016 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148490/altech-chemicals-ltd-granted-additional-time-to-update-on-capital-raising-70028.html
<![CDATA[News - Altech Chemicals Ltd to increase cash balance for high purity alumina ]]> https://www.proactiveinvestors.co.uk/companies/news/148489/altech-chemicals-ltd-to-increase-cash-balance-for-high-purity-alumina-69977.html Altech Chemicals Ltd (ASX:ATC) is focused on its wholly-owned HPA project in Meckering, Western Australia, which hosts a 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7% (ISO standard).

This resource will feed the proposed HPA plant in Malaysia for over 250 years.

Altech’s plan is to offer a finished product range that will include HPA tailored for the synthetic sapphire and lithium-ion battery separator sheet manufacturing sectors, two rapidly growing segments of the HPA market.

The company is now heading to market, with the ASX granting a trading halt to prepare.

The halt will remain in place until the opening of trade on Tuesday 26th July 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 22 Jul 2016 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148489/altech-chemicals-ltd-to-increase-cash-balance-for-high-purity-alumina-69977.html
<![CDATA[News - Altech Chemicals Ltd's Iggy Tan takes high purity alumina to China ]]> https://www.proactiveinvestors.co.uk/companies/news/148488/altech-chemicals-ltds-iggy-tan-takes-high-purity-alumina-to-china-69804.html Altech Chemicals Ltd's (ASX:ATC) managing director, Iggy Tan, said that the company received strong interest in the company's entry into the high purity alumina (HPA) market at a conference in Shenzhen, China.

Altech’s plan is to offer a finished product range that will include HPA tailored for the synthetic sapphire and lithium-ion battery separator sheet manufacturing sectors, two rapidly growing segments of the HPA market.

The company said that the design of its Malaysian plant incorporates the specialised equipment required for the production of “nano” HPA particles.

The size of HPA nano particles is typically less than 1 micron (1/1000 of 1mm) and is the preferred particle size for the fast growing lithium-ion battery separator sheet-manufacturing sector.


HPA supply squeeze

Tan said that with the forecast rapid increase in demand for HPA, particularly from lithium-ion battery separator manufacturers, combined with supply expansion timeframe limitations, there is a real possibility of a HPA supply squeeze in the short to medium term.


Kaolin resource

Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.

The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 14 Jul 2016 10:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148488/altech-chemicals-ltds-iggy-tan-takes-high-purity-alumina-to-china-69804.html
<![CDATA[News - Altech Chemicals Ltd has 250-year kaolin resource at Meckering ]]> https://www.proactiveinvestors.co.uk/companies/news/148487/altech-chemicals-ltd-has-250-year-kaolin-resource-at-meckering-69699.html Altech Chemicals Ltd (ASX:ATC) has updated its kaolin resource following recently completed grade control drilling on its 100% owned high purity alumina (HPA) project in Meckering, Western Australia.

The updated Mineral Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.

This resource will feed the proposed HPA plant in Malaysia for over 250 years.

Iggy Tan, managing director, commented: “Altech can now progress to the next stage in preparation for mine development, the submission of what will be a relatively straightforward mining proposal and mine closure plan.

“Upon approval of these items, the site at Meckering will be ready for the development of the campaign mining and
container loading operation to supply feedstock for Altech’s proposed Malaysian HPA plant.”


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry and scratch-resistant artificial sapphire glass. Sapphire glass is used in models of the Apple watch.

There is no substitute for HPA in the manufacture of artificial sapphire.

Altech was recently granted its mining lease at Meckering, where it is planning to mine 120,000 tonnes of kaolin every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000 tonnes per annum and transported to Johor, Malaysia for processing into HPA at the company’s proposed plant.


HPA and lithium-ion batteries

The major application of HPA in lithium-ion batteries is as a coating on the ceramic separator sheet that divides the cathode and anode electrodes within the battery.

American automotive company Tesla recently announced the 2018 launch of its U.S. lithium-ion battery manufacturing facility, the Gigafactory.

By 2020, the Gigafactory will reportedly reach full capacity and produce more lithium-ion batteries annually than were produced worldwide in 2013.


Analysis

The resource upgrade allows Altech to progress to the next stage of mine development, submission of the mining proposal and mine closure plan.

It progresses the production timeline at Meckering, which in turn will help Altech in its bid to secure project financing for the development of the HPA plant in Malaysia.

Achieving project financing for the proposed Malaysian HPA plant remains a key catalyst for Altech.

The share price has been trading strongly, up 85% over the past 3 months, currently trading at $0.16.

Altech maintains broker support with a valuation of $0.41 per share.

HPA demand for lithium-ion battery manufacturing is forecast to increase at 30% per year to 2025 as forecast by Deutsche Bank.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 08 Jul 2016 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148487/altech-chemicals-ltd-has-250-year-kaolin-resource-at-meckering-69699.html
<![CDATA[News - Altech Chemicals Ltd's Iggy Tan says timing perfect for HPA plant ]]> https://www.proactiveinvestors.co.uk/companies/news/148486/altech-chemicals-ltds-iggy-tan-says-timing-perfect-for-hpa-plant-69339.html Altech Chemicals Ltd (ASX:ATC) is an emerging high purity alumina (HPA) producer, with HPA demand for lithium-ion battery manufacture forecast to increase at 30% per year to 2025.

Therefore with demand forecast to increase from ~1,000tpa in 2016 to ~15,000tpa in 2025, this gives Altech a unique opportunity.

To supply another metric, this demand for 2025 is equivalent to four of Altech’s proposed HPA plants.

Iggy Tan, managing director, commented:

“HPA demand growth in the LED sector has long been acknowledged and understood; this growth is however now complemented by HPA demand growth in the lithium-ion battery industry, specifically from battery separator sheet manufacturers.

“The timing for construction of Altech’s proposed HPA plant in Malaysia appears perfect, with two parallel streams of near-term HPA demand growth now apparent.

"The important point is that we are entering a market showing high demand growth, Altech’s proposed production capacity should be easily absorbed without the need to fight for market share.”


Demand

The HPA demand forecast has been calculated based on lithium-ion battery manufacturing data recently published by Deutsche Bank.

The data predicts annual global demand for lithium-ion batteries will rise from 70 gigawatt-hours (GWh) per year in 2015 to 535GWh per year by 2025.

The company has applied reported HPA usage per kilowatt-hour in lithium-ion battery separators (a vital battery component) to calculate forecast global HPA demand for the lithium-ion battery manufacturing sector.


HPA and lithium-ion batteries

The major application of HPA in lithium-ion batteries is as a coating on the ceramic separator sheet that divides the cathode and anode electrodes within the battery.

HPA-coated separators withstand unusually high temperature incursions, increase battery separator shrinkage temperatures and reduce flammability during thermal runaways, and thus make lithium-ion batteries much safer.

HPA-coated battery separators also increase a battery’s discharge rate; lower self-discharge; and lengthen battery life cycles.

Electric vehicle manufacturers are increasingly demanding lithium-ion batteries with 99.99% (4N) HPA-coated separators.

American automotive company Tesla recently announced the 2018 launch of its lithium-ion battery manufacturing facility called “Gigafactory” in the U.S.

The name Gigafactory comes from the factory’s planned annual battery pack output capacity of 50GWh.

In co-operation with Panasonic and other strategic partners, the Gigafactory will reportedly produce batteries for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimisation of locating most manufacturing processes under one roof.

Tesla expects to drive down the per kilowatt hour (kWh) cost of the battery pack by more than 30%.

By 2020, the Gigafactory will reportedly reach full capacity and produce more lithium-ion batteries annually than were produced worldwide in 2013.

Altech estimates that at its full production rate the Tesla Gigafactory will require around 2,020tpa of HPA for separator coatings, which is equivalent to half the output of the company’s proposed Malaysian HPA plant.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 21 Jun 2016 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148486/altech-chemicals-ltds-iggy-tan-says-timing-perfect-for-hpa-plant-69339.html
<![CDATA[News - Altech Chemicals Ltd's Shane Volk talks at Proactive's CEO Spotlight Sessions ]]> https://www.proactiveinvestors.co.uk/companies/news/148485/altech-chemicals-ltds-shane-volk-talks-at-proactives-ceo-spotlight-sessions-69037.html Altech Chemicals Ltd (ASX:ATC), chief financial officer, Shane Volk, joined the Proactive Investors Spotlight CEO Roadshow in Sydney and Melbourne this week, providing investors with the latest update on the company.

Altech Chemicals is aiming to become one of the world's leading suppliers of 99.99% HPA, which is a high-value, high margin and highly demanded product.

HPA is the critical ingredient required for the production of artificial sapphire.


ACCESS THE FULL PRESENTATION HERE

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 10 Jun 2016 16:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148485/altech-chemicals-ltds-shane-volk-talks-at-proactives-ceo-spotlight-sessions-69037.html
<![CDATA[News - Altech Chemicals Ltd secures Malaysia's MAA Group Berhad as cornerstone investor ]]> https://www.proactiveinvestors.co.uk/companies/news/148484/altech-chemicals-ltd-secures-malaysias-maa-group-berhad-as-cornerstone-investor-69142.html Altech Chemicals Ltd (ASX:ATC) has secured MAA Group Berhad (MAAG) as a cornerstone investor.

MAAG will subscribe for $1 million of Altech at $0.086 per share, (March 2016 placement shares).

MAAG is a Malaysian publicly listed insurance, investment, credit and finance group with total assets of RM1.45 billion and annual turnover of RM484 million.

Altech agreed with MAAG for participation in the in March 2016 share placement, but its participation was subject to the completion by MAAG of internal governance requirements and due diligence processes, all of which have now been satisfied.

Iggy Tan, managing director for Altech, commented:

“We are very excited to have a cornerstone investor with the pedigree of MAAG join our register.

"Altech continues to be most appreciative of the support for the company and its HPA project by Tunku Ya’acob bin Tunku Tan Sri Abdullah and his associated companies."

MAAG will now hold around 6% of Altech.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 09 Jun 2016 15:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148484/altech-chemicals-ltd-secures-malaysias-maa-group-berhad-as-cornerstone-investor-69142.html
<![CDATA[News - Altech Chemicals Ltd generates interest at China international battery fair ]]> https://www.proactiveinvestors.co.uk/companies/news/148483/altech-chemicals-ltd-generates-interest-at-china-international-battery-fair-69024.html Altech Chemicals Ltd (ASX:ATC) has advised that it generated strong interest as an emerging high purity alumina (HPA) producer during its recent attendance at the 12th China International Battery Fair in Shenzhen, China.

There is a growing application for HPA in lithium-ion batteries, where it is used as a coating on the ceramic separator sheets that divide the cathode and anode electrodes within the battery.

The lithium-ion battery separator sheet membrane acts as a critical safety barrier inside the battery.

HPA-coated separators withstand unusually high temperature incursions, increase battery separator shrinkage temperatures, reduce flammability during thermal runaways and thus make lithium-ion batteries much safer.

HPA-coated separators also increase battery discharge rates, lower self-discharge, and lengthen battery life cycles.

The use of HPA lithium-ion battery separators is growing rapidly.

Altech said that based on discussions with various lithium-ion battery separator sheet manufacturers at the CIBF, electric vehicle manufacturers are demanding lithium-ion batteries with 99.99% (4N) HPA-coated separators.

These manufacturers are reporting usage of between 40-120g of HPA per battery kilowatt-hour (kWh).


Delegate sources

According to CIBF delegate sources, 99.99% (4N) HPA is currently being supplied to Chinese lithium-ion battery separator sheet manufacturers at RMB180 to RMB200 per kilogram (US$27 to US$30 per kilogram).

This confirms the long-term price assumption for HPA in Altech’s bankable feasibility study (BFS), which adopted a conservative estimate of US$23 per kilogram.

The particle size of the HPA product is required to be ultra-fine, less than 2 microns, which Altech’s proposed HPA plant in Malaysia is designed to achieve.

Given the global push for electric vehicles and energy storage, lithium-ion batteries are expected to be increasingly significant for HPA demand.


Iggy Tan, managing director for Altech, commented:

“The timing for construction of Altech’s proposed HPA plant in Malaysia appears perfect, with two parallel streams of near-term HPA demand growth now apparent.

“HPA demand growth in the LED sector has long been acknowledged and understood; this growth is however now complemented by HPA demand growth in the lithium-ion battery industry, specifically from battery separator sheet manufacturers.

"This is an extremely exciting development for Altech.

"The company expects that HPA from its proposed Malaysian plant will be a highly sought after product.”

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 03 Jun 2016 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148483/altech-chemicals-ltd-generates-interest-at-china-international-battery-fair-69024.html
<![CDATA[News - Altech Chemicals Ltd brings High Purity Alumina to Spotlight CEO Sessions ]]> https://www.proactiveinvestors.co.uk/companies/news/148482/altech-chemicals-ltd-brings-high-purity-alumina-to-spotlight-ceo-sessions-68798.html Altech Chemicals Ltd (ASX:ATC) is aiming to become one of the world's leading suppliers of 99.99% HPA, which is a high-value, high margin and highly demanded product.

HPA is the critical ingredient required for the production of artificial sapphire.

The next key catalyst for Altech is project financing for the proposed Malaysian HPA plant.


Find out more from Shane Volk, chief financial officer, at Proactive's Spotlight CEO Sessions in Sydney and Melbourne in June 2016.

Sydney Investor Sessions, Tuesday, 7th June.

Melbourne Investor Sessions, Wednesday, 8th June.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China. ]]>
Mon, 30 May 2016 13:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148482/altech-chemicals-ltd-brings-high-purity-alumina-to-spotlight-ceo-sessions-68798.html
<![CDATA[News - Altech Chemicals Ltd bags $1.75M balance from Meckering sale ]]> https://www.proactiveinvestors.co.uk/companies/news/148481/altech-chemicals-ltd-bags-175m-balance-from-meckering-sale-68842.html Altech Chemicals Ltd's (ASX:ATC) cash position has received a boost after the company received $1.75 million from the sale of its Meckering exploration licence E70/3923 to Dana Shipping and Trading S.A. (Dana).

E70/3923 was surplus to the company’s feedstock requirements for its proposed Malaysian HPA plant.

Feedstock for the plant will be sourced from granted mining lease M70/1334, which contains an estimated ~11 million tonnes of kaolin mineral resources, representing in excess of 250 years of supply for the proposed plant.

The funds will be applied towards finalising the detailed design for the HPA plant, and for general working capital purposes.


Kaolin mining lease

Earlier in the month Altech was granted its kaolin mining lease, which moves the company closer to mine development.

The next steps are to submit a mining proposal and mine closure plan.


Analysis

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA, which is a high-value, high margin and highly demanded product.

HPA is the critical ingredient required for the production of artificial sapphire.

The next key catalyst for Altech is project financing for the proposed Malaysian HPA plant.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 26 May 2016 09:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148481/altech-chemicals-ltd-bags-175m-balance-from-meckering-sale-68842.html
<![CDATA[News - Altech Chemicals Ltd granted kaolin mining lease application at Meckering ]]> https://www.proactiveinvestors.co.uk/companies/news/148480/altech-chemicals-ltd-granted-kaolin-mining-lease-application-at-meckering-68738.html Altech Chemicals Ltd (ASX:ATC) has been granted its kaolin mining lease 100 kilometres east of Perth.

The lease is estimated to contain 11 million tonnes of kaolin mineral resources, which will feed the company's proposed high purity alumina (HPA) plant in Malaysia for over 250 years.

The granting of the lease moves Altech closer to mine development, next it must submit a mining proposal and mine closure plan.

The granting of the mining leases also triggers a $1.75 million cash inflow from Dana Shipping and Trading S.A.

Iggy Tan, managing director commented: "Altech can now progress to the next stage in preparation for mine development, the submission of what will be a relatively straightforward mining proposal and mine closure plan.

“Upon approval of these items, the site at Meckering will be ready for the development of the campaign mining and container loading operation to supply feedstock for Altech’s proposed Malaysian HPA plant."


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry and scratch-resistant artificial sapphire glass. Sapphire glass is used in models of the Apple watch.

There is no substitute for HPA in the manufacture of artificial sapphire.

Altech is planning to mine 120,000 tonnes of kaolin at Meckering every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000 tonnes per annum and transported to Johor, Malaysia for processing into HPA at the company’s proposed plant.


Analysis

The granting of the mining lease is a significant milestone for Altech.

It progresses the production timeline at Meckering, which in turn will help Altech in its bid to secure project financing for the development of the HPA plant in Malaysia.

Furthermore, the granting of the mining lease triggers a $1.75 million cash payment from Dana to Altech and ends a dispute with Dana around the termination of the Kaolin Mining Rights Deed.

Achieving project financing for the proposed Malaysian HPA plant remains a key catalyst for Altech.

A broker report was released in February, 2016 valuing Altech at $0.41 per share.

The share price remains heavily discounted to this valuation currently trading at $0.10 per share.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 20 May 2016 10:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148480/altech-chemicals-ltd-granted-kaolin-mining-lease-application-at-meckering-68738.html
<![CDATA[News - Altech Chemicals Ltd and Dana legal action now discontinued ]]> https://www.proactiveinvestors.co.uk/companies/news/148479/altech-chemicals-ltd-and-dana-legal-action-now-discontinued-68651.html Altech Chemicals Ltd (ASX:ATC) has confirmed that a minute of consent order has been filed in the Supreme Court of Western Australia, consenting to the discontinuation of legal proceedings between Dana Shipping and Trading S.A. (Dana) and Altech.

The filing of the minute brings to an end the dispute between Dana and the company.

As announced on 9 May 2016, Dana has agreed that it will purchase exploration licence E70/3923 from the company (excluding mining lease application M70/1334, 100% owned by Altech) at Meckering, Western Australia for $2.0 million.

Dana has paid a $250,000 non-refundable deposit to Altech and it will pay the balance of the consideration to Altech within 5 business days of the grant of mining lease M70/1334.


M70/1334

Mining lease application M70/1334 covers an area of ~85 hectares and sits within the boundaries of the 94 hectare block of freehold farming land that the company has an option to acquire.

Access to the lease is via a maintained gazetted public road which links directly to the Great Eastern Highway that runs east from Perth to Kalgoorlie.

The lease area contains an estimated ~11 million tonnes of kaolin mineral resources, representing in excess of 250 years of feedstock for the company’s proposed 4,000tpa high purity alumina (HPA) plant at Johor, Malaysia.

In April 2016, the company completed a grade control drilling program at Meckering to assist in planning its future kaolin mining operations, the drilling program was confined to within the area of M70/1334.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 17 May 2016 13:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148479/altech-chemicals-ltd-and-dana-legal-action-now-discontinued-68651.html
<![CDATA[News - Altech Chemicals Ltd bags $2M cash from non-core asset sale ]]> https://www.proactiveinvestors.co.uk/companies/news/148478/altech-chemicals-ltd-bags-2m-cash-from-non-core-asset-sale-68490.html Altech Chemicals Ltd (ASX:ATC) has agreed to sell a non-core exploration licence at Meckering in Western Australia for $2.0 million to Dana Shipping and Trading S.A.

The sale excludes the mining lease application, which will continue to be owned by Altech.

Dana has paid a $250,000 non-refundable cash deposit and will pay the balance of $1,750,000 within 5 days of granting of the mining lease.

The mining lease is expected to be granted in a matter of months.

Iggy Tan, managing director for Altech, commented: “The sale of E70/3923 is a win-win outcome for both parties.

"For Altech, it monetises the portion of the company’s Meckering kaolin deposit that is surplus to requirements for our HPA project, plus we receive a larger up-front cash injection compared to what was provided for in the Kaolin Mining Rights Deed.

"For Dana, the agreement delivers kaolin resources for the development of its bulk kaolin business and it removes the requirement for Dana to share M70/1334 with Altech, which was the previous arrangement."


Malaysia HPA plant

Altech is aiming to become one of the world's leading suppliers of 99.99% high purity alumina (HPA).

Altech has completed a bankable feasibility study for the development of a HPA manufacturing plant in Johor, Malaysia.

The exploration licence being sold is surplus to Altech’s feedstock requirements for its proposed Malaysian HPA plant.

Feedstock for the plant will be sourced from within the mining lease application area, which contains an estimated ~11 million tonnes of kaolin mineral resources, representing in excess of 250 years of supply for the HPA plant.

Altech continues to hold three other exploration licences at Meckering.


Analysis

Since the end of the March quarter, Altech has now committed $4 million in additional cash from a $2 million capital raising in April and this recent $2 million conditional transaction.

This will provide Altech with the resources they need to continue to pursue the final stages of the proposed Malaysian HPA plant.

The deal with Dana had a dual benefit of providing Altech with additional cash from a non-core asset sale, and settled a dispute with Dana around the termination of the Kaolin Mining Rights Deed.

Altech shares have more than doubled over the previous 12 months and we continue to see achieving project financing for the proposed Malaysian HPA plant as the key catalyst for the share price.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 09 May 2016 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148478/altech-chemicals-ltd-bags-2m-cash-from-non-core-asset-sale-68490.html
<![CDATA[News - Altech Chemicals Ltd delivers another milestone to develop HPA project ]]> https://www.proactiveinvestors.co.uk/companies/news/148477/altech-chemicals-ltd-delivers-another-milestone-to-develop-hpa-project-68471.html Altech Chemicals Ltd (ASX:ATC) has negotiated a settlement for the land that encompasses its Meckering mining lease application in Western Australia.

Previously, the landowners had objected to the application but the parties have now agreed to settle for an undisclosed amount.

The terms of the settlement include the landowners granting Altech an option to purchase 94 hectares of land which includes the mining lease area.

The option will last for 18 months and mining operations may commence only after the purchase of the land by Altech.

Altech managing director, Mr Iggy Tan commented: “the company is delighted to have reached agreement with the landowners for the freehold land purchase at Meckering.

The grant of M70/1334 can now proceed without objection, following which the company will submit a Mining Proposal (MP) and a Mine Closure Plan (MCP), and upon approval of these items (and subject to funding) mining operations at Meckering will be ready to commence."

“This is yet another significant milestone achieved in the march to develop the Company’s high purity alumina project”.


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% high purity alumina (HPA).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant artificial sapphire glass used for wristwatch faces, optical windows and smartphone components.

There is no substitute for HPA in the manufacture of artificial sapphire.


Meckering

The mining lease application at Meckering is estimated to contain ~11 million tonnes of kaolin mineral resources, which will be sufficient to supply feedstock for Altech’s proposed Malaysia HPA plant for in excess of 250 years.

Altech is planning to mine 120,000 tonnes of kaolin at Meckering every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000 tonnes per annum and transport to Johor for processing into HPA at the company’s proposed plant.


Analysis

Meckering is an important asset in Altech's strategy to become one of the world's leading suppliers of 99.99% HPA.

Altech's share price has continues to perform strongly, trading currently at $0.10 per share, up circa 95% over the previous 12 months.

Achieving project financing for the proposed Malaysian HPA plant will be a key catalyst for the company going forward.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 06 May 2016 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148477/altech-chemicals-ltd-delivers-another-milestone-to-develop-hpa-project-68471.html
<![CDATA[News - Altech Chemicals Ltd signs off take sales agreement with Mitsubishi ]]> https://www.proactiveinvestors.co.uk/companies/news/148476/altech-chemicals-ltd-signs-off-take-sales-agreement-with-mitsubishi-68295.html Altech Chemicals Ltd (ASX:ATC) has executed a 10 year off take sales agreement with Mitsubishi Australia Ltd for 100% of the high purity alumina (HPA) production from the company’s proposed Malaysian HPA plant.

The agreement appoints Mitsubishi as the exclusive buyer of the full 4,000 tonnes per annum production capacity.

The contracted sale quantities will mirror Altech’s proposed HPA plants’ production ramp up and account for 100% of planned production.

Altech managing director, Mr Iggy Tan said that securing the off take arrangement with Mitsubishi for all of the production from the company’s proposed HPA plant is an integral step towards securing project financing.

“The 10 year off take arrangement for the sale of 100% of Altech’s HPA production is a significant milestone and a strong vote of confidence in the Company, the HPA project and the team working to bring it to fruition."

“Altech’s 4,000tpa HPA plant will position the Company not only as one of the world’s largest producers of HPA, but also as one of the world’s lowest cost producers.”


Background

Altech is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant artificial sapphire glass used for wristwatch faces, optical windows and smartphone components.

There is no substitute for HPA in the manufacture of artificial sapphire.


Global HPA market

In 2014, global HPA demand was approximately 19,040 tonnes per annum and demand is growing at an annual rate of 28%, primarily driven by the growth in worldwide adoption of LEDs.

As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.

HPA demand is expected to at least double over the coming decade.


Analysis

The signing of this off-take agreement is a massive milestone for Altech in its current plans to secure project financing for the proposed project financing. The share price is expected to surge on the news.

The share price has appreciated circa 90% over the past 12 months as Altech continues to deliver on its aim to become one of the world's leading suppliers of HPA.

Altech has an influential cornerstone investor in Melewar IIC Limited, a diversified Malaysia industrial firm with steel, energy and engineering businesses, and is the second largest shareholder of the company.

Altech recently successfully raised a total of circa $2.0 million to fund the company through to the completion of project financing.

Achieving project financing for the proposed plant will be a key catalyst for the company.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 27 Apr 2016 10:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148476/altech-chemicals-ltd-signs-off-take-sales-agreement-with-mitsubishi-68295.html
<![CDATA[News - Altech Chemicals Ltd capital raising to be used for high purity alumina plant design ]]> https://www.proactiveinvestors.co.uk/companies/news/148475/-altech-chemicals-ltd-capital-raising-to-be-used-for-high-purity-alumina-plant-design-68012.html Altech Chemicals Ltd (ASX:ATC) has banked $744,000 in a Share Purchase Plan and $2 million in total funds raised toward finalising the detailed design of Altech’s proposed high purity alumina (HPA) plant in Johor, Malaysia.

Altech is aiming to become a leading supplier of 99.99% (4N) high purity alumina (HPA) (Al2O3).

Altech is unique in that it uses a process to convert aluminous clay, sourced from its own quarry in Western Australia to HPA in a simple, highly cost effective process with operating costs a fraction of its larger, more established peers.

A recent Bankable Feasibility Study for the development of a 4,000 tonne per annum HPA processing plant at Johor provided robust financial outcomes from development of the project including a pre-tax NPV of US$358 million (previously US$326 million).

Aletch is following a conservative development strategy, using management’s extensive experience in building chemical plants, with the aim to be one of the world’s largest producers of HPA.

HPA is being used in a growing number of high tech applications and is set to have a CAGR of 19.7% to 2021.

Altech managing director, Mr Iggy Tan said, “the Company is most appreciative of the strong support shown by our shareholders for the SPP, which follows on from the support of predominantly new shareholders for the recently completed share placement.”

The company said it was in ongoing discussions with various other potential investors that were unable to meet the timeline to participate in the recent share placement, but remain interested to make an investment.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 12 Apr 2016 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148475/-altech-chemicals-ltd-capital-raising-to-be-used-for-high-purity-alumina-plant-design-68012.html
<![CDATA[News - Altech Chemicals Ltd to wrap up Share Purchase Plan ]]> https://www.proactiveinvestors.co.uk/companies/news/148474/altech-chemicals-ltd-to-wrap-up-share-purchase-plan-67898.html Altech Chemicals Ltd (ASX:ATC) currently has a Share Purchase Plan (SPP) open allowing shareholders to apply to up to $15,000 worth of new shares, at $0.086 per share.

This follows a $1.2 million placement at the same price.

The SPP has a closing date of (WST) Friday 8 April 2016, and Altech has said there will be no extension.

Funds raised will be applied to finalising the detailed design of the company’s proposed high purity alumina (HPA) plant at Johor, Malaysia, for the completion of debt financing and for general working capital purposes.

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 06 Apr 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148474/altech-chemicals-ltd-to-wrap-up-share-purchase-plan-67898.html
<![CDATA[News - Altech Chemicals Ltd kicks off grade-control drilling at Meckering ]]> https://www.proactiveinvestors.co.uk/companies/news/148473/altech-chemicals-ltd-kicks-off-grade-control-drilling-at-meckering-67819.html Altech Chemicals Ltd (ASX:ATC) has now commenced a grade control drilling program at its Meckering kaolin deposit, located in Western Australia.

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Altech also has some very supportive shareholders, such as its cornerstone in Melewar IIC Limited.

Melewar's executive chairman, Royal Highness Prince Ya’acob Bin Tunku Tan Sri Abdullah, has previously said that he looked forward to assisting the company with its development plans.

Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and is the second largest shareholder of the company.


Drilling plan

A total of 21 air core drill holes are planned over Altech’s wholly-owned tenement E70/3923, which is located 130 kilometres east from Perth.

The grade control drilling program is to assist the company in planning its future Meckering mining operation.

The proposed Meckering mine will provide kaolin feedstock for the Company’s high purity alumina (HPA) plant at Johor, Malaysia.


Meckering mine plan

At Meckering, Altech is planning to mine 120,000 tonnes of kaolin every three years on a campaign basis, each mining campaign will last two months.

The resultant raw kaolin will be stockpiled, then containerised into standard shipping
containers at the rate of around 40,000tpa and transport to Johor for processing into HPA at the company’s proposed plant.


Funding

Altech recently raised $1.2 million via a placement of shares to a variety of professional and sophisticated investors, and currently has a Share Purchase Plan open.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 01 Apr 2016 08:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148473/altech-chemicals-ltd-kicks-off-grade-control-drilling-at-meckering-67819.html
<![CDATA[News - Altech Chemicals Ltd updates on Mining Rights Deed with Dana Shipping and Trading ]]> https://www.proactiveinvestors.co.uk/companies/news/148472/altech-chemicals-ltd-updates-on-mining-rights-deed-with-dana-shipping-and-trading-67741.html Altech Chemicals Ltd (ASX:ATC) advises that it has received notice of a legal challenge to its termination of the Mining Rights Deed with Dana Shipping and Trading S.A. (Dana), as announced on 9 March 2016.

Altech said that it intends to defend its position, as under the terms of the deed if the First Condition had not been satisfied by the First End Date, being 28 January 2016, then either party had the right of termination by notice to the other.

As the First Condition has not yet been satisfied, Altech elected to terminate the Mining Rights Deed to focus solely on its high purity alumina (HPA) project.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 29 Mar 2016 14:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148472/altech-chemicals-ltd-updates-on-mining-rights-deed-with-dana-shipping-and-trading-67741.html
<![CDATA[News - Altech Chemicals bags $1.2M from professional and sophisticated investors ]]> https://www.proactiveinvestors.co.uk/companies/news/148471/altech-chemicals-bags-12m-from-professional-and-sophisticated-investors-67713.html Altech Chemicals (ASX:ATC) has raised $1.2 million via a placement of shares to a variety of professional and sophisticated investors at $0.086 per share.

Funds raised will be applied to finalising the detailed design of the company’s proposed high purity alumina (HPA) plant at Johor, Malaysia, for the completion of debt financing and for general working capital purposes.

Earlier in the week, Altech launched a Share Purchase Plan which allows existing shareholders to apply for up to $15,000 of new fully paid ordinary shares, at the same price as the placement.

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.


Key outcomes of the updated BFS 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.


Well-connected

Altech has a cornerstone investor in Melewar IIC Limited.

Melewar's executive chairman, Royal Highness Prince Ya’acob Bin Tunku Tan Sri Abdullah, has previously said that he looked forward to assisting the company with its development plans.

Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and is the second largest shareholder of the company.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 24 Mar 2016 08:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148471/altech-chemicals-bags-12m-from-professional-and-sophisticated-investors-67713.html
<![CDATA[News - Altech Chemicals Ltd granted additional time to finalise raising ]]> https://www.proactiveinvestors.co.uk/companies/news/148470/altech-chemicals-ltd-granted-additional-time-to-finalise-raising-67665.html Altech Chemicals Ltd (ASX:ATC) is currently in the process of conducting a capital raising, with the ASX granting the company more time today to finalise in the form of a voluntary suspension.

It is expected the voluntary suspension will be lifted on or before Thursday 24 March 2016.

Altech recently revealed results of an update to its Bankable Feasibility Study for the development of a 4,000tpa high purity alumina (HPA) processing plant at Johor, Malaysia.

Key outcomes of the updated BFS 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.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 23 Mar 2016 09:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148470/altech-chemicals-ltd-granted-additional-time-to-finalise-raising-67665.html
<![CDATA[News - Altech Chemicals Ltd updates on debt funding for HPA project ]]> https://www.proactiveinvestors.co.uk/companies/news/148469/altech-chemicals-ltd-updates-on-debt-funding-for-hpa-project-67653.html Altech Chemicals Ltd (ASX:ATC) has provided an update on the debt funding activities for its high purity alumina (HPA) project, following a meeting with KfW IPEX-Bank in Stuttgart, Germany.

Altech currently estimates that its proposed HPA project will support approximately US$60 million of debt.

To provide structuring and financing services in relation to the provision of senior debt funding the company has mandated German government-owned bank KfW IPEX-Bank Gmbh (KfW IPEX-Bank).

Altech has been working closely with KfW IPEX-Bank since January 2016 as part of the bank’s comprehensive due diligence of the company and the project.

With KfW IPEX-Bank’s support, the company said that it intends to make formal application under the export credit insurance guarantee scheme of the Federal Republic of Germany in relation to approximately US$40 million of project debt.

The application will be lodged within the quarter and will be prepared by KfW IPEX-Bank for submission to Euler Hermes, the company mandated to administer the scheme.

The US$40 million application amount is based on the company’s estimate of the project capital expenditure that qualifies for ECA cover under the scheme’s prevailing rules.

Interest rates charged by lenders on debt that is supported by ECA cover is typically at attractive conditions as the repayment of the debt is insured; also long tenure is usually available in accordance with OECD guidelines.

Additional debt of ~US$20 million is estimated at prevailing commercial terms and rates of interest.

KfW IPEX-Bank has commenced independent debt and project loan modelling, which will be included in the ECA cover application.

Iggy Tan, managing director for Altech, commented:

“We have a great banking partner in KfW IPEX-Bank; all things going well, we expect to advance to debt term sheets towards the back-end of this year.

"In parallel to completing debt financing, we will be working with M+W Group to finalise the detailed engineering design, complete permitting for both sites and secure off-take arrangements for the HPA plant’s production – all of which will be requirements for debt draw-down.

"We expect that the results of all these corresponding developments to come together in Q-4 this year."

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 22 Mar 2016 13:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148469/altech-chemicals-ltd-updates-on-debt-funding-for-hpa-project-67653.html
<![CDATA[News - Altech Chemicals Ltd is co-ordinating placement, will offer SPP ]]> https://www.proactiveinvestors.co.uk/companies/news/148468/altech-chemicals-ltd-is-co-ordinating-placement-will-offer-spp-67630.html Altech Chemicals Ltd (ASX:ATC) has provided an update on its current capital raising.

Altech is currently in a trading halt, and said that DJ Carmichael Pty Ltd is co-ordinating a placement to a variety of professional and sophisticated investors.

Additional details are expected in the pre-open on Wednesday 23 March 2016.

Altech added that it intends to offer a Share Purchase Plan where shareholders can subscribe to a maximum of $15,000 of new shares, at the same price as the placement.

Funds raised will be applied to finalising the detailed design of the company’s proposed High Purity Alumina (HPA) plant at Johor, Malaysia, for the completion of debt financing for the project and for general working capital purposes.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 21 Mar 2016 17:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148468/altech-chemicals-ltd-is-co-ordinating-placement-will-offer-spp-67630.html
<![CDATA[News - Altech Chemicals Ltd in ASX trading halt ]]> https://www.proactiveinvestors.co.uk/companies/news/148467/altech-chemicals-ltd-in-asx-trading-halt-67615.html Altech Chemicals Ltd (ASX:ATC) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Altech is currently heading to market with a capital raising, and the ASX has granted a trading halt to prepare.

The halt will remain in place until the opening of trade on Wednesday 23rd March 2016, or earlier if an announcement is made to the market.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 21 Mar 2016 11:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148467/altech-chemicals-ltd-in-asx-trading-halt-67615.html
<![CDATA[News - Altech Chemicals Ltd appoints EPC contractor for high purity alumina project ]]> https://www.proactiveinvestors.co.uk/companies/news/148466/altech-chemicals-ltd-appoints-epc-contractor-for-high-purity-alumina-project-67599.html Altech Chemicals Ltd (ASX:ATC) has appointed M+W Group as its engineering, procurement and construction (EPC) contractor for its high purity alumina (HPA) project.

The appointment of M+W Group as EPC contractor by Altech marks the formal commencement of the final detailed engineering design phase of the project.

Iggy Tan, managing director for Altech, commented: “M+W Group brings vast construction experience and knowledge to the project.

"With a strong presence in Asia, and specifically experience at project construction in Malaysia, the use of its local Singapore and Malaysian offices for construction with detailed design in Germany is a perfect combination for us.”

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 18 Mar 2016 13:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148466/altech-chemicals-ltd-appoints-epc-contractor-for-high-purity-alumina-project-67599.html
<![CDATA[News - Altech Chemicals Ltd confirms financial robustness of HPA project ]]> https://www.proactiveinvestors.co.uk/companies/news/148465/altech-chemicals-ltd-confirms-financial-robustness-of-hpa-project-67553.html Altech Chemicals Ltd (ASX:ATC) has revealed 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.

Key outcomes of the updated BFS 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.

Iggy Tan, managing director, commented:

“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.

"This is 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.”


Analysis

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Artificial sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant artificial sapphire glass used for wristwatch faces, optical windows and smartphone components.

There is no substitute for HPA in the manufacture of artificial sapphire.

Perth-broker DJ Carmichael has a Speculative Buy recommendation and a risked valuation of $0.41 a share for Altech.

Altech last traded at $0.10 a share, highlighting the potential upside.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 16 Mar 2016 11:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148465/altech-chemicals-ltd-confirms-financial-robustness-of-hpa-project-67553.html
<![CDATA[News - Altech Chemicals Ltd secures Johor site for HPA plant ]]> https://www.proactiveinvestors.co.uk/companies/news/148464/altech-chemicals-ltd-secures-johor-site-for-hpa-plant-67519.html Altech Chemicals Ltd (ASX:ATC) has secured a 30 year lease over a site in Johor Bahru for its proposed high purity alumina (HPA) plant.

Johor is a highly sought after state for project development in southern Malaysia, linked to Singapore by causeway and is the only state in Malaysia with three ports and an international airport for cargo.

It is also a catchment for skilled labour, prized by companies as a site for operation with a proximity to an international container sea-port and international airports of Johor Bahru and Singapore.

Altech has previously flagged it had reserved the land with Johor Corporation which is in a section of the industrial complex that is set aside for chemical facilities.

The plant location in the Tanjung Langsat Industrial Complex also has the ready availability of required consumables such as hydrochloric acid, limestone, quicklime, electrical power and natural gas, at highly competitive prices.

Johor has a growing English-speaking workforce, supportive government policies with attractive tax incentives and low inflation rate.

Johor has the largest concentration of the world’s leading manufacturers and exporters of electronic products such as semiconductors and artificial sapphires; solar panel and glass products; textiles and rubber and wood products.


HPA plant

Feedstock for the HPA plant will be sourced from the company’s 100% owned kaolin deposit at Meckering, Western Australia.

A total of 41,000 tonnes of alumina rich kaolin will be containerised and shipped via the port of Fremantle, Western Australia to the Tanjung Pelepas container port, Johor, Malaysia.

Beneficiation of the kaolin will be undertaken at Tanjung Langsat, with the resultant benign silica sand residue of 36,000 tonnes per annum sold as a by-product to local businesses such as brickworks and/or cement plants.

Operating costs for the proposed HPA plant in Malaysia are forecast to be 40% lower compared than an equivalent plant in Western Australia.

In addition, the shipping of the final HPA product from the Tanjung Pelepas international sea container port to nearby Asian markets will provide both cost and delivery time advantages.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 15 Mar 2016 10:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148464/altech-chemicals-ltd-secures-johor-site-for-hpa-plant-67519.html
<![CDATA[News - Altech Chemicals Ltd terminates kaolin mining rights agreement ]]> https://www.proactiveinvestors.co.uk/companies/news/148463/altech-chemicals-ltd-terminates-kaolin-mining-rights-agreement-67418.html Altech Chemicals Ltd (ASX:ATC) has terminated an agreement with Dana Shipping and Trading S.A. for the right to mine up to 10 million tonnes of kaolin from the company’s Meckering kaolin deposit.

Under the terms of the kaolin mineral rights agreement struck in October 2015, if the first condition had not been satisfied by 28 January 2016, then either party could terminate the mining rights deed by notice to the other.

Altech has terminated the agreement and will focus on finalising the detailed design and securing funding for the construction of its High Purity Alumina (HPA) project.

Altech uses a process to convert aluminous clay, sourced from its own quarry in Western Australia to HPA with operating costs a fraction of its larger, more established companies.

Existing producers of HPA used processing routes that re-refine aluminium metal that was produced from bauxite via the Bayer Process, to produce HPA which is energy intensive and very costly.

Altech has an exclusive mandate with Kfw IPEX-Bank GmbH for the provision of services relating to project financing of its HPA project.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 09 Mar 2016 17:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148463/altech-chemicals-ltd-terminates-kaolin-mining-rights-agreement-67418.html
<![CDATA[News - Altech Chemicals: broker assigns Speculative Buy and $0.41 target price ]]> https://www.proactiveinvestors.co.uk/companies/news/148462/altech-chemicals-broker-assigns-speculative-buy-and-041-target-price-67229.html Altech Chemicals (ASX:ATC) has received a Speculative Buy recommendation and a risked valuation of $0.41 a share from Perth-broker DJ Carmichael.

Altech last traded at $0.10 a share. The following is an extract from the report.


Unique opportunity in high-tech chemicals

Altech Chemicals Ltd (ASX:ATC) is a speciality chemicals company developing a vertically integrated High Purity Alumina (HPA) project.

ATC is unique in that it uses a process to convert aluminous clay, sourced from its own quarry in Western Australia (WA), to HPA in a simple, highly cost effective process with operating costs a fraction of its larger, more established peers.

ATC follow a conservative development strategy, using management’s extensive experience in building chemical plants, with the aim to be one of the world’s largest producers of HPA.

HPA is being used in a growing number of high tech applications and is set to have a CAGR of 19.7% to 2021.


Key Points

HPA. What is it and what is it used for?

HPA (99.99% Al2O3) is sold as a white powder and is the base material for the manufacture of sapphire substrates, scratch proof sapphire glass and as a coating on separators used in lithium-ion batteries.

Most HPA is used in the manufacture of LED’s, alumina semi-conductors and phosphor TV screens but it is experiencing a wider and growing use in smartphones and Li-ion battery applications amongst others (aerospace, medical, defence).

Government Policy and public awareness on energy saving is, in part, driving the increased usage of these products.

ATC is developing a large HPA project with its own source of feedstock from a quarry in WA and its own HPA plant based in Malaysia.

The Asia–Pacific region is expected to see the highest growth in use of HPA over the coming years.


Most competitors are using old processes:

Most existing producers of HPA exist as small business units in very large industrial conglomerates, using processing routes that re-refine aluminium metal that was produced from bauxite via the Bayer Process, to produce HPA.

This is expensive and very energy intensive.

High labour costs also add to operating costs. More recently, aluminium waste products are being used as a feedstock, but ATC has a sustainable competitive advantage in that it will use an inexpensive, white, very pure aluminous clay as a feed source.


Project financing:

ATC executed an exclusive mandate with Kfw IPEX-Bank GmbH for the provision of services relating to project financing of its HPA project.

The mandate contemplates the arrangement of senior debt project financing aimed at utilising, to the maximum extent, an Export Credit Agency (ECA) insurance cover under German-backed project finance export guarantees.

ATC estimate that approximately US$40m of the estimated total US$77m project capital cost will qualify for ECA cover.

An additional $15 million of senior debt financing will be required.


Very robust financial metrics:

The current macroeconomic environment in the medium term favour ATC’s strategic intent.

Global 4N HPA demand is set to increase significantly with a forecast CAGR of 19.7%.

This fact and new market developments support ATC’s projected operating margins. ATC’s planned production facility operates with an attractive contribution margin generating sustainable gross operating margins of between 60-80% and EBIT margins of 50%.

Unlevered free cash flows are robust with the HPA project generating an IRR of 29% with a payback period of 5 years.


Recommendation and Valuation:

We place a Speculative Buy recommendation and our risked valuation of $0.41 a share.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 29 Feb 2016 09:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148462/altech-chemicals-broker-assigns-speculative-buy-and-041-target-price-67229.html
<![CDATA[News - Altech Chemicals’ alumina product in big demand ]]> https://www.proactiveinvestors.co.uk/companies/news/148461/altech-chemicals-alumina-product-in-big-demand-67159.html Altech Chemicals (ASX:ATC) expects Chinese demand for high purity alumina (HPA) – for use in lithium-ion battery separators – to be nearly 4,000 tonnes per annum by the year 2020.

The exact figure – 3,936tpa – is also roughly the annual production capacity of Altech’s proposed new HPA plant at Johor in Malaysia.

The expected Chinese demand in 2020 is more than 10 times the 332tpa forecast demand in 2015 for HPA’s use in li-ion batteries.

These numbers have been compiled by research done by Martin Ma, who was recently appointed by Altech as the company’s sales and marketing manager in China. Ma’s data is supported by the Chinese government’s own research on growth in electric powered vehicles (EVs).

HPA is used to increase the battery’s discharge rates, lower self-discharge and lengthen the battery lifecycle and li-ion battery producers have reported battery usage of about 120g of HPA per kilowatt hour.

Importantly, the forecast demand is for China only and does not take into account Korea (the world’s second largest li-ion battery maker) Japan, Taiwan or Tesla’s planned Gigafactory in Nevada, which is scheduled to come online next year.

Altech said the global push for electric vehicles and energy storage was becoming an increasing market trend for li-ion batteries.

“Today, the large scale adoption of EVs is still nascent; however, adoption is forecast to grow strongly. In support of accelerating EV adoption worldwide, government ownership policies and initiatives are being implemented, which aim to have 20 million EVs, including hybrid vehicles, on the road by 2020.

“Also, while not yet a large demand driver, growth in li-ion battery demand from the electricity storage (solar energy) market is expected to exceed 30% per annum.”

The battery separator in which HPA is used has a simple yet critical function. The separator – a thin porous membrane – has the primary function of preventing physical contact between the anode and cathode, while facilitating transport within the cell.

The most commercially available li-ion separators are typically made of polyolefin. But there has been a general migration towards the production of large-format, li-ion batteries for transportation and utility storage. With these larger format batteries, a fast-growing method to improve the thermal and mechanical stability of the separators is to use HPA or ceramic composite-base materials, which offer superior performance.

Altech said it believed Tesla’s entry into the li-ion market would impact demand for HPA.

The projected cost to build the facility was about US$5 billion and Tesla has said it would build 500,000 electric cars per annum by 2020 and hitting a scale that will drive down the cost of its 60kWh battery pack by 30% to about $10,000.

“The project aims to disrupt battery costs to impact the distributed storage industry. Tesla’s Gigafactory will sprawl across 500 to 1000 acres of land situated near highways and rail, with space for a few hundred megawatts of solar panels and some wind turbines,” Altech said.


Analysis

Altech Chemicals is aiming to become one of the world's leading suppliers of 99.99% HPA.

HPA is a high-value product because it is the major source material for scratch-resistant artificial sapphire glass. Sapphire glass is used to produce a range of high-performance electronic applications such as LEDs, semi-conductors, phosphor display screens, as well as new emerging products such as smartphones and tablet devices.

The global HPA market is about 19,040tpa (2014) and is expected to at least double over the coming decade.

Current HPA producers use an expensive and highly processed feedstock material such as aluminium metal to produce HPA.  Altech produces 4N HPA directly from an ore feedstock, aluminous clay, from its Meckering deposit in Western Australia. The company is now advancing a bankable feasibility study to develop a full-scale 4,000tpa HPA production facility.

The Altech process employs conventional and proven off-the-shelf plant and technology to extract HPA from its low-cost and low-impurity aluminous clay feedstock, which results in lower operating costs.

Altech is focused on creating a high-margin product to meet the growing global demand for the next generation of high-performance technologies.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 23 Feb 2016 16:02:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148461/altech-chemicals-alumina-product-in-big-demand-67159.html
<![CDATA[News - Altech Chemicals in key high purity alumina initiative for Chinese market ]]> https://www.proactiveinvestors.co.uk/companies/news/148460/altech-chemicals-in-key-high-purity-alumina-initiative-for-chinese-market-66573.html Altech Chemicals (ASX:ATC) is stepping up the pace of marketing and sales for future high purity alumina (HPA) product to be produced from Altech's HPA plant with a key initiative for the Chinese market.

Martin Ma has been appointed as the company's sales and marketing manager for China and tasked with establishing offtake agreements. Ma has experience in sales management of high purity feedstock materials to Chinese industries such as the lithium battery and electrical vehicle industries.

Altech has completed a Bankable Feasibility Study for the construction and operation of a 4,000 tonnes per annum HPA processing plant at Tanjung Langsat in Malaysia.

The company clinched support of an export credit insurance scheme which could cover most of the total capital cost of the company’s proposed high-purity alumina (HPA) project.

Altech received a letter of interest from the administrator of Germany’s export credit agency (ECA) confirming that the group would, in principle, support the project.

The project encompasses kaolin mining in Western Australia and processing a final HPA product at the proposed HPA processing plant in Malaysia.


Japanese strong demand for HPA

Mitsubishi was appointed exclusive seller and distributor of Altech’s final HPA product to the Japanese market in a landmark signed distribution agreement with Japan's largest general trading company.

Japan accounted for 21% of global HPA demand in 2014.

However, global demand is growing at a massive annual rate of 28%, primarily driven by the growth in LEDs, as this energy efficient, longer lasting and with lower-cost of lighting replaces traditional incandescent bulbs.

Recent forecasts indicate this increased HPA usage could translate into a doubling in demand over the coming decade.



Analysis

Today's key Chinese market initiative marks another building block in place for Altech after the company appointed the blue chip Mitsubishi as exclusive seller and distributor for Altech's future produced high purity alumina product for the fast growth Japanese market.

Perhaps missed by some investors was the earlier Letter of Interest received from Euler Hermes for German export credit cover of US$40.0 million of the US$77 million project capital estimated to qualify for ECA cover.

Production costs are forecast to be considerably lower for the processing plant than established HPA producers.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 14 Jan 2016 12:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148460/altech-chemicals-in-key-high-purity-alumina-initiative-for-chinese-market-66573.html
<![CDATA[News - Altech Chemicals nears German credit cover for high-purity alumina ]]> https://www.proactiveinvestors.co.uk/companies/news/148459/altech-chemicals-nears-german-credit-cover-for-high-purity-alumina-66092.html Altech Chemicals (ASX:ATC) has taken a step closer to clinching the support of an export credit insurance scheme which could cover most of the total capital cost of the company’s  high-purity alumina (HPA) project.

Altech has received a letter of interest from the administrator of Germany’s export credit agency (ECA) confirming that the group would, in principle, support the project, which encompasses kaolin mining in Western Australia and a proposed HPA processing plant in Malaysia.

ECA debt is expected to cover about US$40 million of the project’s total capital expenditure of about US$77 million.

After including an expected additional senior debt requirement of about US$15 million, total project debt financing would be around US$55 million.

Interest rates charged by lenders on debt that is supported by ECA cover is typically at attractive conditions, as the repayment of the debt is insured, also long tenure is usually available in accordance with Organisation of Economic Cooperation and Development guidelines.

Headway in establishing ECA cover for the HPA project follows closely on execution of a mandate with Germany’s KfW IPEX-Bank, an export and project finance specialist with experience in the debt financing of worldwide mining and chemical projects.

This coverage is considered possible because the majority of the plant and equipment will be sourced from European Union manufacturers and because German group M+W is the appointed engineering, procurement and construction contractor.

The next step in securing ECA cover is the submission of a formal application accompanied by a detailed project information memorandum and various supporting documents. 

Detailed project due diligence will follow and will be coordinated by the Altech’s mandated bank and its Germany-based project financing consultants.


Project progress

The recent advances in obtaining German government export guarantees have coincided with other practical progress in realising and optimising the HPA project.

Most recently, this momentum has included an expansion of the kaolin mining operations in WA with the grant of a new exploration licence.

The licence covers an area of approximately 480 square kilometres, is on freehold agricultural land and contains an inferred kaolin resource of 85 million tonnes at 85.1% brightness.

The area known as the Kerrigan project is proximal to the Hyden to Lake Grace railway line which connects to the port city of Albany.

Also, Altech has planned further value-adding cost reductions for the project by relocating the project’s beneficiation plant adjacent to the HPA plant in Malaysia, reducing capital costs associated with feedstock transport and creating process circuit synergies.

The estimated lower operating costs for the Malaysian beneficiation plant will more than offset the additional freight associated with transporting un-beneficiated kaolin from WA to Malaysia.

Altech also positioned itself to take in up to A$3 million in cash plus royalties by granting mining rights in October for its kaolin operations in WA.


About HPA

HPA is a high-value, high-margin and highly demanded product as it is the critical ingredient required for the production of sapphire substrates which are used in the manufacture of LED lights as well as the manufacture of alumina semiconductor wafers and the scratch-resistant artificial sapphire glass used by various smartphone manufacturers.

There is no substitute for HPA in the manufacture of sapphire substrates, sapphire semiconductor wafers or scratchproof sapphire glass.

HPA is expected to be part of the next boom in high-tech materials such as rare earths, lithium and graphene.

Bankable Feasibility Study results for Altech’s HPA project have contemplated a net present value of US$326.1 million, a capital cost of US$76.9 million and a payback period of only 3.8 years.

Project EBITDA was initially calculated to total US$59.4 million per annum with global HPA demand growing at an annual rate of 28%.


Analysis

This signal that ECA cover will be available for Altech’s HPA project is a significant financing milestone, especially since only selected projects pass the very important initial assessment and cover is awarded to the vast majority of the projects that succeed at the initial evaluation.

The fact that a positive initial evaluation was delivered so quickly after Altech established a mandate with its German financing consultant KfW reflects well on industry impressions of the HPA project as a business model.

The update follows encouragingly on concerted efforts to optimise the HPA project, including improvements to the processing circuit plan, a mining rights deal and a move to expand the kaolin mining operations.

Global HPA demand is about 19,040 tonnes per annum (2014) and demand is growing at an annual rate of 28%, primarily driven by the growth in LEDs, as this energy efficient, longer lasting and lower-cost form of lighting replaces traditional incandescent bulbs.

HPA demand is expected to at least double over the coming decade.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 10 Dec 2015 09:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148459/altech-chemicals-nears-german-credit-cover-for-high-purity-alumina-66092.html
<![CDATA[News - Altech Chemicals grows kaolin operations in Western Australia ]]> https://www.proactiveinvestors.co.uk/companies/news/148458/altech-chemicals-grows-kaolin-operations-in-western-australia-66056.html Altech Chemicals (ASX:ATC) has expanded its kaolin operations in Western Australia with the grant of a new exploration licence.

The licence covers an area of approximately 480km2, is on freehold agricultural land and contains Inferred Kaolin Mineral Resources of 85 million tonnes at 85.1% brightness.

The area known as the Kerrigan project is proximal to the Hyden to Lake Grace railway line which connects to the port city of Albany.

There are also established sealed roads from Hyden to Perth and the ports of Albany, Bunbury, Esperance and Fremantle.

Kaolin samples from various outcrops, diamond drill core and air core at Kerrigan have had low levels of impurities (such as iron and sodium) and have been high in alumina.

The project may present an opportunity to provide kaolin as complementary high-grade feedstock for the company’s proposed Malaysian high-purity alumina (HPA) project.

The operational plan calls for raw, un-beneficiated kaolin will be delivered from the Meckering aluminous clay (kaolin) mine in WA by sea containers to Malaysia, where a smaller plant running at a lower operating cost will produce HPA for growing high-tech end markets – especially LED light manufacturing.

Shipping was last projected to run at a rate of about 40,000 tonnes per annum of un-beneficiated kaolin but an ongoing study of flow design, plan layout, capital equipment and operating costs may further enhance the project.

Bankable Feasibility Study results for the project have contemplated a net present value of US$326.1 million, a capital cost of US$76.9 million and a payback period of only 3.8 years.

Project EBITDA was initially calculated to total US$59.4 million per annum with global HPA demand growing at an annual rate of 28%.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 08 Dec 2015 13:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148458/altech-chemicals-grows-kaolin-operations-in-western-australia-66056.html
<![CDATA[News - Altech Chemicals signs mandate for high-purity alumina project financing ]]> https://www.proactiveinvestors.co.uk/companies/news/148457/altech-chemicals-signs-mandate-for-high-purity-alumina-project-financing-65950.html Altech Chemicals (ASX:ATC) has positioned itself to access up to US$40 million in German government-backed export guarantees with a mandate for project financing from a leading German bank.

The mandate with KfW IPEX-Bank – an export and project finance specialist with experience in the debt financing of worldwide mining and chemical projects – provides advisory and structuring services in relation to the provision of senior debt project financing for the company’s proposed high purity alumina (HPA) project.

Altech’s HPA operation encompasses kaolin mining properties 130 kilometres from Fremantle port in Western Australia and a proposed processing plant in Malaysia with a throughout capacity of 4,000 tonnes per annum.

HPA is a high-value, high-margin product required in growing technology sectors and is expected to experience a doubling in global demand over the coming decade.

The project’s new senior debt agreement with KfW sets up potential for Altech to access about US$40 million of insured debt via the German Export Credit Agency (ECA), which guarantees foreign trade.

This coverage is considered possible because the majority of the plant and equipment will be sourced from European Union manufacturers and because German group M+W is the appointed engineering, procurement and construction contractor.

Encouragingly, the interest rate charged by lenders on the portion of total project debt that qualifies for ECA cover is available under attractive conditions with long tenor in accordance with OECD guidelines.

Interest charged on any senior debt and/or mezzanine debt over and above the ECA cover portion of debt is normally at standard commercial rates.


Forward momentum

The first step in the ECA cover approvals process is for Altech, KfW and M+W to make a presentation to the agency administrator for its assessment of the project.

This will allow an initial determination of eligibility to be made for ECA funding.

ECA cover and subsequent senior debt project financing is subject to a detailed due diligence process, which will assess the HPA project after a string of development advancements expected to add value to the operation.

These advancements include a kaolin mining rights deal with potential to earn Altech up to A$3 million in cash and royalties, a $1 million investment from Malaysian firm Melewar International Investment Company and a sales partnership with Mitsubishi Corporation (TYO:8058).

Mitsubishi is Japan's largest general trading company with a market cap of 3.38 trillion yen (A$39.4 billion) and more than 200 bases of operations in about 90 countries worldwide.

As such, it provides Altech with an excellent opportunity to access the Japanese HPA sector which comprises 21% of the global market.


About HPA

HPA is the critical ingredient required for the production of sapphire substrates, which are used in the manufacture of LED lights as well as the manufacture of alumina semiconductor wafers and the scratch-resistant artificial sapphire glass used by various smartphone manufacturers.

There is no substitute for HPA in the manufacture of sapphire substrates, sapphire semiconductor wafers or scratchproof sapphire glass.

HPA is expected to be part of the next boom in high-tech materials such as rare earths, lithium and graphene.

Global HPA demand is about 19,040 tonnes per annum (2014) and demand is growing at an annual rate of 28%, primarily driven by the growth in LEDs, as this energy efficient, longer lasting and lower-cost form of lighting replaces traditional incandescent bulbs.


Analysis

The signing of the mandate with KfW for senior project debt financing is a significant step in Altech’s HPA financing efforts, especially since it includes in-country support toward pursuing ECA cover.

The strong potential to access ECA cover is a major plus for Altech, considering the attractive interest terms and the fact that it could be applied to US$40 million in project debt.

Rollout of the KfW mandate – including the due diligence process associated with final grant of ECA cover – could deliver strong price catalysts for Altech stock, which has been trending positively since the mid-year point on HPA project development progress

Altech shares were last trading at more than double their value six months ago at A$0.095.

Positive feedback from the ECA due diligence process would represent a strong endorsement of the HPA project and could spark further interest in Altech stock.

Operationally, the HPA project benefits from a number of advantages that bode well for this upcoming assessment, including a projected payback period of only 3.8 years and EBITDA totalling US$59.4 million per annum.

Current HPA producers use expensive and highly-processed feedstock material such as aluminium metal to produce HPA, but Altech’s production process will use a conventional “off-the-shelf” plant and equipment to extract HPA using a hydrochloric acid leaching process.

This model has helped hone Bankable Feasibility Study economic results for the project, including a net present value of US$326.1 million and a capital cost of US$76.9 million.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 02 Dec 2015 11:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148457/altech-chemicals-signs-mandate-for-high-purity-alumina-project-financing-65950.html
<![CDATA[News - Altech Chemicals improves high-purity alumina project economics ]]> https://www.proactiveinvestors.co.uk/companies/news/148456/altech-chemicals-improves-high-purity-alumina-project-economics-65825.html Altech Chemicals (ASX:ATC) has planned further value-adding cost reductions for its quickly developing HPA high-purity alumina project by optimising the beneficiation circuit.

Altech’s HPA operation encompasses kaolin mining properties in Western Australia and a proposed processing plant in Malaysia with a throughout capacity of 4,000 tonnes per annum.

An initial plan including a beneficiation plant at the WA mining site, however, has been improved by relocating beneficiation duties to the Malaysian side of the operation.

This change is expected to reduce the capital cost of the project by eliminating the need for infrastructure related to the drying and bagging of kaolin feedstock before transport.

Instead, raw, un-beneficiated kaolin will be delivered from WA by sea containers to Malaysia, where a smaller plant running at a lower operating cost will benefit from cheaper power costs and maintenance synergies associated with the adjacent HPA process plant.

The new Malaysia-based beneficiation plant would also operate 24 hours a day, as opposed to the original model of a 12-hour-per-day plant in WA.

The estimated lower operating costs for the Malaysian beneficiation plant will more than offset the additional freight associated with transporting un-beneficiated kaolin from WA to Malaysia.

Shipping is now expected to run at a rate of about 40,000 tonnes per annum of un-beneficiated kaolin instead of the previously estimated 18,500 tonnes per annum of beneficiated kaolin.

There will be an additional oversize quartz stream as a consequence of the beneficiation of kaolin in Malaysia, but the quartz will be sold as an aggregate by-product.

This optimisation is the result of an ongoing detailed study of flow design, plan layout, capital equipment and operating costs.


Adding value

The newly optimising operating model for the HPA project represents a continuation of value-adding advancements in recent weeks.

Last month, Altech set the project up to improve its financial footing by as much as A$3 million in cash and royalties thanks to a mining rights deal at the kaolin pits in WA.

The company granted Dana Shipping and Trading an exclusive right for up to 10 million tonnes of kaolin at the Meckering deposit in an arrangement that included a $1 million cash payment and an option to increase the mining right to 30 million tonnes by paying an additional $2 million.

Only 130 kilometres from Fremantle port, Meckering contains 65 million tonnes of kaolin resources expected to provide an abundant, low-cost aluminous clay feedstock for an estimated +100 years mine life.

Altech’s HPA project, however, only requires 4 million tonnes of kaolin for a 100-year project life.

Bankable Feasibility Study results for the project have contemplated a net present value of US$326.1 million, a capital cost of US$76.9 million and a payback period of only 3.8 years.

Project EBITDA was initially calculated to total US$59.4 million per annum with global HPA demand growing at an annual rate of 28%.


Financial progress

Altech’s HPA development has also marked financial momentum in the form of interest from a leading German export and project finance specialist with experience in the debt financing of worldwide mining and chemical projects.

A statement from the bank has contemplated financing that will maximise the use of export credit insurance cover under the German federal government backed project finance federal export guarantees.

The German Export Credit Agency (which guarantees foreign trade) was identified as applicable to Altech’s HPA project because the majority of the plant and equipment will be sourced from European Union manufacturers and because German group M+W is the appointed engineering, procurement and construction contractor.

This traction in securing additional funds for the HPA project follows the completion of A$1 million placement last month with a cornerstone Asian investor.

The investment by diversified Malaysian industrial firm Melewar International investment Company represents the majority of a $1.13 million fundraiser announced by Altech in August aimed at progressing a detailed design phase of the project.


Analysis

Although this beneficiation simplification is likely to have only a minimal impact on the HPA project’s net present value, the streamlined flowsheet and the synergies related to having all major processing infrastructure at one site are an important financing advantage.

Identification of this optimisation reflects well on the competence of Altech and its consulting partners – and suggests that further optimisations and cost savings are possible as the project reaches more advanced development milestones.

This potential is supported by the ongoing nature of the detailed design and optimisation work, which will continue into the first quarter of 2016 in parallel with project financing and associated activities.

This could offer additional price catalysts for Altech stock, which was last trading at A$0.097, more than double its value at the midpoint of the year. 

The value that the latest optimisation adds to the HPA project compounds recent operational improvements, such as last month’s scalable mining rights deal.

Investor interest has also been evident in an approach from an esteemed German bank, a placement with a cornerstone Asian investor and a landmark Mitsubishi sales agreement.

The Mitsubishi connection is particularly relevant as it opens the door to business in Japan, country which comprises 21% of the global HPA market.

With high-purity alumina forecast to be part of the next “new age materials boom” like rare earths, lithium and graphene, Altech’s recent investment interest may prove prescient.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 26 Nov 2015 09:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148456/altech-chemicals-improves-high-purity-alumina-project-economics-65825.html
<![CDATA[News - Altech Chemicals receives financing interest for high-purity alumina ]]> https://www.proactiveinvestors.co.uk/companies/news/148455/altech-chemicals-receives-financing-interest-for-high-purity-alumina-65690.html Altech Chemicals (ASX:ATC) has attracted interest in its high-purity alumina (HPA) project from a major German bank experienced with similar investments in the Asia-Pacific region.

Altech’s HPA operation encompasses mining properties 130 kilometres from Fremantle port in Western Australia and a proposed processing plant in Malaysia with a throughout capacity of 4,000 tonnes per annum.

The bank – which is a leading German export and project finance specialist with experience in the debt financing of worldwide mining and chemical projects – has delivered a Letter of Interest (LOI) expressing its interest to arrange senior debt financing for the project.

The LOI contemplates financing that will maximise the use of export credit insurance cover under the German federal government backed project finance federal export guarantees.

The German Export Credit Agency (which guarantees foreign trade) was identified as applicable to Altech’s HPA project because the majority of the plant and equipment will be sourced from European Union manufacturers and because German group M+W is the appointed engineering, procurement and construction contractor.

Altech, M+W and the bank are now expected to submit a presentation to the agency’s administrator from which an initial determination of the eligibility for funding will be made.

This traction in securing additional funds for the HPA project follows the completion of A$1 million placement last month with a cornerstone Asian investor.

The investment by diversified Malaysian industrial firm Melewar International investment Company represents the majority of a $1.13 million fundraiser announced by Altech in August aimed at progressing a detailed design phase of the project.

Recent milestones in strengthening Altech’s HPA business have also included the signing of an agreement appointing Mitsubishi Corporation (TYO:8058) as the exclusive seller and distributor of the product to the Japanese market.

Japan accounted for 21% of global HPA demand in 2014.


Kaolin mining

A recent deal regarding the kaolin mining operations in WA that will feed the Malaysian HPA plant is now expected to generate up to A$3 million in cash plus royalties for Altech.

Last month, Altech finalised exclusive mining rights with Dana Shipping and Trading for up to 10 million tonnes of kaolin at the Meckering deposit

This arrangement includes a $1 million cash payment to Altech.

However, Dana has an option to increase its kaolin mining right to 30 million tonnes by paying an additional $2 million, and Altech will receive a 2% gross sales royalty on all bulk kaolin sales.

Only 130 kilometres from Fremantle port, Meckering contains 65 million tonnes of kaolin resources expected to provide an abundant, low-cost aluminous clay feedstock for an estimated +100 years mine life.

Altech’s HPA project, however, only requires 4 million tonnes of kaolin for a 100-year project life.

The new rights arrangement will not constrain Altech’s HPA project as Altech’s right to mine kaolin takes priority over the mining rights granted to Dana and reciprocal non-compete obligations apply to both Dana and Altech.

The kaolin at Meckering is extremely low in impurities and is considered an ideal feed for the HPA plant.


High-purity alumina

HPA is a high-value, high-margin and highly demanded product as it is the critical ingredient required for the production of sapphire substrates which are used in the manufacture of LED lights as well as the manufacture of alumina semiconductor wafers and the scratch-resistant artificial sapphire glass used by various smartphone manufacturers.

There is no substitute for HPA in the manufacture of sapphire substrates, sapphire semiconductor wafers or scratchproof sapphire glass.

HPA is expected to be part of the next boom in high-tech materials such as rare earths, lithium and graphene.

Global HPA demand is about 19,040 tonnes per annum (2014) and demand is growing at an annual rate of 28%, primarily driven by the growth in LEDs, as this energy efficient, longer lasting and lower-cost form of lighting replaces traditional incandescent bulbs.

HPA demand is expected to at least double over the coming decade.


Analysis

The interest shown by the German bank to arrange the senior debt financing of the HPA project is an important preliminary financing step for Altech.

Although the process is still in its early days, delivery of an LOI from this highly experienced and well regarded bank reflects positively on the attractiveness of HPA among informed institutional investors.

Meanwhile, the latest mining rights deal for the project’s kaolin operations in WA adds value to Altech as financing protocols and project evaluations continue.

Bankable Feasibility Study results for the project have contemplated a net present value of US$326.1 million, a capital cost of US$76.9 million and a payback period of only 3.8 years.

Project EBITDA was initially calculated to total US$59.4 million per annum with global HPA demand growing at an annual rate of 28%.

With HPA forecast to be part of the next “new age materials boom” like rare earths, lithium and graphene, the Melewar investment and sales partnership with Mitsubishi may prove prescient.

Potential for Altech to attract customers in this booming HPA market is particularly well supported by its new sales partnership in Japan, a country which comprises 21% of the global HPA market.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 19 Nov 2015 11:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148455/altech-chemicals-receives-financing-interest-for-high-purity-alumina-65690.html
<![CDATA[News - Altech Chemicals shares fire up as kaolin mining deal adds value ]]> https://www.proactiveinvestors.co.uk/companies/news/148454/altech-chemicals-shares-fire-up-as-kaolin-mining-deal-adds-value-65358.html Altech Chemicals (ASX:ATC) shares were trading as much as 15.8% higher today after the company finalised mining rights which could earn the company up to A$3 million in cash plus royalties.

Altech shares were last trading 10.5% higher at A$0.105, marking a 61% gain over the past three months.

The support comes as the company grants Dana Shipping and Trading an exclusive right for up to 10 million tonnes of kaolin at the Meckering deposit in Western Australia which – along with a proposed plant in Malaysia – represents the company’s flagship project to produce high-purity alumina (HPA).

This arrangement includes a $1 million cash payment to Altech.

However, Dana has an option to increase its kaolin mining right to 30 million tonnes by paying an additional $2 million, and Altech will receive a 2% gross sales royalty on all bulk kaolin sales.

Only 130 kilometres from Fremantle port, Meckering contains 65 million tonnes of kaolin resources expected to provide an abundant, low-cost aluminous clay feedstock for an estimated +100 years mine life.

Altech’s HPA project, however, only requires 4 million tonnes of kaolin for a 100-year project life.

The new rights arrangement will not constrain Altech’s HPA project as Altech’s right to mine kaolin takes priority over the mining rights granted to Dana and reciprocal non-compete obligations apply to both Dana and Altech.

The bulk kaolin that Dana intends to produce from its mining operations will be predominantly used in the ceramics, paper, rubber and paint industries.


Cornerstone Asian investor

The Dana deal follows quickly on a placement for $1 million in proceeds with Malaysian industrial firm Melewar International investment Company.

The investment represents the majority of a $1.13 million fundraiser announced by Altech in August aimed at progressing a detailed design phase of the HPA project.

Altech has invited Melewar to nominate a Malaysia-based non-executive director to the company board.

Completion of the Melewar investment both provides cash for ongoing HPA development and helps cement Altech’s business connections in the Asia-Pacific region, which represents 70% of global HPA business.


Mitsubishi sales deal

Last month, Altech also signed a milestone agreement appointing Mitsubishi Corporation (TYO:8058) as the exclusive seller and distributor of its final HPA product to the Japanese market.

Mitsubishi is Japan's largest general trading company with a market cap of 3.38 trillion yen (A$39.4 billion) and more than 200 bases of operations in about 90 countries worldwide.

It has been engaged in long-term business with customers from around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise.


About HPA

HPA is a high-value, high-margin and highly demanded product as it is the critical ingredient required for the production of sapphire substrates which are used in the manufacture of LED lights as well as the manufacture of alumina semiconductor wafers and the scratch-resistant artificial sapphire glass used by various smartphone manufacturers.

There is no substitute for HPA in the manufacture of sapphire substrates, sapphire semiconductor wafers or scratchproof sapphire glass.

HPA is expected to be part of the next boom in high-tech materials such as rare earths, lithium and graphene.

Global HPA demand is about 19,040 tonnes per annum (2014) and demand is growing at an annual rate of 28%, primarily driven by the growth in LEDs, as this energy efficient, longer lasting and lower-cost form of lighting replaces traditional incandescent bulbs.

HPA demand is expected to at least double over the coming decade.


Analysis

Delivery of a mining right to Dana at Meckering secures additional value to Altech shareholders as it provides a cash injection and ongoing royalty from a resource that has potential beyond its planned use as a HPA project feed.

If Dana exercises its option to increase its mining rights to 30 million tonnes, Altech will benefit from a total payment of $3 million without dilution to current shareholders.

The recently completed Scoping Study for Meckering mining, processing and associated testwork has delivered promising results which confirm the potential for the project to provide bulk kaolin for export markets.

Meanwhile, the proposed Malaysian process plant is well positioned to service Asian markets and benefits from operating costs that are 40% lower than in Australia. Its capital costs are likewise expected to be 50-60% lower.

With HPA forecast to be part of the next “new age materials boom” like rare earths, lithium and graphene, the Melewar investment and sales partnership with Mitsubishi may prove prescient.

Potential for Altech to attract customers in this booming HPA market is particularly well supported by its new sales partnership in Japan, a country which comprises 21% of the global HPA market.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China

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Fri, 30 Oct 2015 12:39:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/148454/altech-chemicals-shares-fire-up-as-kaolin-mining-deal-adds-value-65358.html
<![CDATA[News - Altech Chemicals appoints Tunku Dato’ Ya’acob as director ]]> https://www.proactiveinvestors.co.uk/companies/news/148453/altech-chemicals-appoints-tunku-dato-yaacob-as-director-65239.html Altech Chemicals (ASX:ATC) has appointed Tunku Dato’ Ya’acob bin Tunku Tan Sri Abdullah as a non-executive director of the company.

Tunku Dato’ Ya’acob has nominated Mr Uwe Ahrens as his alternate.

Tunku Dato’ Ya’acob is the executive chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian base diversified financial and industrial services group.

He is the major owner and shareholder of Melewar.

Melewar is a substantial shareholder in Altech with close to 12%.

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

Luke Atkins, Altech chairman, welcomed the appointment of Tunku Dato’ Ya’acob and his alternate Mr Uwe Ahrens

“These gentlemen are successful businessman in their own right and will add a wealth of experience and skills to the strategic direction and governance of the company.

"Their experience and knowledge in building businesses in Malaysia is a very important to the company’s plans to construct and operate its HPA plant in Johor, Malaysia."

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 23 Oct 2015 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148453/altech-chemicals-appoints-tunku-dato-yaacob-as-director-65239.html
<![CDATA[News - Altech Chemicals marks increased interest from substantial shareholder ]]> https://www.proactiveinvestors.co.uk/companies/news/148452/altech-chemicals-marks-increased-interest-from-substantial-shareholder-65233.html Altech Chemicals (ASX:ATC) has attracted additional shareholder interest after a A$1 million fundraising effort with a cornerstone Asian investor earlier this week.

Melewar International Investment Company, which recently completed the second tranche of a placement to Altech, has increased its voting power in the company by almost 5% to 11.98%.

This followed the acquisition of about 8.5 million Altech shares at a price of $0.059 per share.

Fellow substantial shareholder Lake McLeod Gypsum Pty Ltd also added about 1% to its voting power to 17.6% this week.

Shares in Altech were last trading 9.4% higher at $0.105, which represents a 133% increase on a low of $0.045 reached in June.

The $1 million Melewar investment represents the majority of a $1.13 million fundraiser announced by Altech in August aimed at progressing a detailed design phase of the company’s HPA project.

This operation encompasses mining properties 130 kilometres from Fremantle port in Western Australia and a proposed HPA plant in Malaysia with a throughout capacity of 4,000 tonnes per annum.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China

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Thu, 22 Oct 2015 16:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148452/altech-chemicals-marks-increased-interest-from-substantial-shareholder-65233.html
<![CDATA[News - Altech Chemicals seals investment ahead of high purity alumina demand ]]> https://www.proactiveinvestors.co.uk/companies/news/148451/altech-chemicals-seals-investment-ahead-of-high-purity-alumina-demand-65191.html Altech Chemicals (ASX:ATC) has completed a placement for A$1 million in proceeds with a cornerstone Asian investor as high-purity alumina (HPA) operations develop.

The company has received the second tranche of an investment by diversified Malaysian industrial firm Melewar International investment Company Limited, with the completion of a placement of about 17 million Altech shares.

Altech has invited Melewar to nominate a Malaysia-based non-executive director to the company board.

The $1 million investment represents the majority of a $1.13 million fundraiser announced by Altech in August aimed at progressing a detailed design phase of the company’s HPA project.

This operation encompasses mining properties 130 kilometres from Fremantle port in Western Australia and a proposed HPA plant in Malaysia with a throughout capacity of 4,000 tonnes per annum.

HPA is a high-value, high-margin and highly demanded product as it is the critical ingredient required for the production of sapphire substrates which are used in the manufacture of LED lights as well as the manufacture of alumina semiconductor wafers and the scratch-resistant artificial sapphire glass used by various smartphone manufacturers.

There is no substitute for HPA in the manufacture of sapphire substrates, sapphire semiconductor wafers or scratchproof sapphire glass.


Development progress

Recent milestones in strengthening Altech’s HPA business have included the signing of an agreement appointing Mitsubishi Corporation (TYO:8058) as the exclusive seller and distributor of the product to the Japanese market.

Mitsubishi is Japan's largest general trading company with a market cap of 3.38 trillion yen (A$39 billion) and more than 200 bases of operations in about 90 countries worldwide. The agreement with Mitsubishi provides the required marketing and distribution experience for its HPA in this market.

Japan accounted for 21% of global HPA demand in 2014, making it an important market for the company.

Earlier in the year, Altech completed a Bankable Feasibility Study that highlighted the potential of its HPA project to deliver high margins, strong cash flows, and rapid payback period.

Key metrics from the BFS included:

- 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) (at 10% discount);
- 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); and
- EBITDA of US$59.4 million (A$66.0 million) per annum.

Financing plans for this operation have included discussion with Asian banks and a target of about A$55 million in debt as well as structured project fiancé options and Europe-based bonds.

The company has already begun permitting for its proposed aluminous clay (kaolin) mining operation and beneficiation plant. Permitting for both mining and beneficiation is relatively straightforward.


HPA markets

HPA is expected to be part of the next boom in high-tech materials such as rare earths, lithium and graphene.

Global HPA demand is about 19,040 tonnes per annum (2014) and demand is growing at an annual rate of 28%, primarily driven by the growth in LEDs, as this energy efficient, longer lasting and lower-cost form of lighting replaces traditional incandescent bulbs.

HPA demand is expected to at least double over the coming decade.

A total of 70% of HPA demand is forecast to come from the Asia Pacific region, and where Altech’s HPA plant in Malaysia is well positioned to service the region. 

Potential for Altech to attract customers in this trend is supported by its sales partnership with Mitsubishi in Japan, a country which comprises 21% of the global HPA market.

Current HPA producers use an expensive and highly processed feedstock material such as aluminium metal to produce HPA.

Altech’s production process, however, will employ conventional “off-the-shelf” plant and equipment to extract HPA using a hydrochloric acid (HCl) leaching process.

Production costs are therefore anticipated to be considerably lower than established HPA producers.


Analysis

Completion of the Melewar both provides cash for ongoing HPA development and helps cement Altech’s business connections in the Asia-Pacific region, which represents 70% of global HPA business. 

Altech's HPA project in WA and Malaysia, meanwhile, provides a real alternative to dominant Chinese and Japanese producers.

The Malaysian plant is well positioned to service Asian markets and benefits from operating costs that are 40% lower than in Australia. Capital costs are expected to be 50-60% lower.

The US$326 million NPV of the HPA project represents about four times the value of the capital cost estimate ($77 million). Financing of this cost is well in hand, with the latest share placement and offtake arrangements, plus ongoing negotiations with various international institutions.

Growth in the HPA market is tied to well established trends in technology, including the proliferation of touch screen phones in emerging Asian economies.

With HPA forecast to be part of the next “new age materials boom” like rare earths, lithium and graphene, the Melewar investment and sales partnership with Mitsubishi may prove prescient. 




Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China

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Tue, 20 Oct 2015 14:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148451/altech-chemicals-seals-investment-ahead-of-high-purity-alumina-demand-65191.html
<![CDATA[News - Altech Chemicals updates on bulk kaolin study ]]> https://www.proactiveinvestors.co.uk/companies/news/148450/altech-chemicals-updates-on-bulk-kaolin-study-64862.html Altech Chemicals (ASX:ATC) has reached agreement with Dana Shipping and Trading S.A. to extend the date by which Dana can elect to exercise its option to mine up to 10 million tonnes of bulk kaolin from the company’s Meckering kaolin deposit in Western Australia.

The option has been extended from 30 September 2015 to 15 October 2015.

Earlier in the year, Altech reached agreement with Dana to fund a Scoping Study to assess the commercial viability of mining and processing bulk kaolin from the Meckering Deposit.

Bulk kaolin is predominantly used in the ceramics, paper, rubber and paint industries.

The cost of the study was estimated at $100,000 and Dana has advised the company that the Scoping Study has now been completed.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 01 Oct 2015 11:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148450/altech-chemicals-updates-on-bulk-kaolin-study-64862.html
<![CDATA[News - Altech Chemicals secures Malaysian land for high purity alumina plant ]]> https://www.proactiveinvestors.co.uk/companies/news/148449/altech-chemicals-secures-malaysian-land-for-high-purity-alumina-plant-64834.html Altech Chemicals (ASX:ATC) has secured land at the Tanjung Langsat Industrial Complex in Johor, Malaysia, for its proposed high purity alumina (HPA) plant.

The option to lease for the 4 hectare site was secured with a non-refundable deposit to Johor Corporation.

This is initially reserved until 30 December 2015 and upon execution of an option to lease, will be leased for a period of thirty years, with an option to renew.

Operating costs for the plant are expected to be about 40% lower than an equivalent plant in Australia, placing it in the bottom quartile of the cost curve for established HPA producers.

Last week, the company signed a milestone agreement appointing Mitsubishi Corporation (TYO:8058) as the exclusive seller and distributor of its final high purity alumina (HPA) product to the Japanese market.


Tanjung Langsat

Altech previously selected Tanjung Langsat, located 40 kilometres southeast of the city of Johor Bahru, as the site for its proposed HPA plant based on significant economic and developmental benefits.

These include the ready availability of required consumables such as hydrochloric acid, limestone, quicklime, power and natural gas – all at highly competitive prices.

The availability of skilled labour, proximity to an international container sea-port and international airports (Johor Bahru and Singapore) and the various investment incentives on offer were additional benefits.

Feedstock for the HPA plant will be sourced from the company’s wholly-owned aluminous clay (kaolin) deposit at Meckering, Western Australian.

Approximately 18,565 tonnes per annum of beneficiated kaolin will be containerised and transported via road about 153 kilometres to the port of Fremantle, Western Australia.

The containers will be shipped from Fremantle to the port of Tanjung Pelepas in Johor and then transported about 90 kilometres by road to Tanjung Langsat.

Shipping of the company’s final HPA product from Tanjung Langsat to nearby Asian markets will also provide both cost and delivery time advantages.

It also has the potential to enhance the Malaysian region’s HPA value-add chain, as sapphire glass producers such as Rubicon Technology currently operate a facility in Malaysia.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 30 Sep 2015 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148449/altech-chemicals-secures-malaysian-land-for-high-purity-alumina-plant-64834.html
<![CDATA[News - Altech Chemicals clinches landmark Mitsubishi sales agreement ]]> https://www.proactiveinvestors.co.uk/companies/news/148448/altech-chemicals-clinches-landmark-mitsubishi-sales-agreement-64725.html Altech Chemicals (ASX:ATC) has signed a milestone agreement appointing Mitsubishi Corporation (TYO:8058) as the exclusive seller and distributor of its final high purity alumina (HPA) product to the Japanese market.

Mitsubishi is Japan's largest general trading company with a market cap of 3.38 trillion yen (A$40 billion) and more than 200 bases of operations in about 90 countries worldwide.

It has been engaged in long-term business with customers from around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise.

Japan accounted for 21% of global HPA demand in 2014, making it an important market for the company.

The agreement with Mitsubishi provides the required marketing and distribution experience for its HPA in this market.

Iggy Tan, Altech managing director, commented:

“We are delighted to partner with one of Japan’s largest companies and a very reputable name worldwide.

“Altech’s 4,000 tonne per annum HPA plant will position the company not only as one of the world’s largest producers of HPA, but also as one of the world’s lowest cost producers of HPA.”


High Purity Alumina Project

The High Purity Alumina Project consists of its proposed aluminous clay (kaolin) mining operation and beneficiation plant at Meckering, Western Australia, and the proposed Malaysian HPA plant.

Using kaolin provides a cheaper feedstock than that used by other producers while the 4,000tpa HPA plant will provide economies of scale in terms of operating costs and will position Altech as the largest producer of HPA in the world, surpassing Sumitomo Chemicals that currently states its annual HPA production capacity at 3,200 tonnes.

In optimising the design of its HPA plant, the company has specifically focused on minimising technological risk by selecting proven “off-the-shelf” plant and equipment.

Its location at Tanjung Langsat was chosen based on significant economic and developmental benefits associated with this dedicated industrial park, which includes the ready availability of hydrochloric acid, power and natural gas – all at highly competitive prices, and for its proximity to international container ports and international airports (Johor Bahru and Singapore).

The plant will apply a hydrochloric acid (HCl) leach process to produce HPA directly from kaolin clay sourced from Meckering.

In August, the company raised $1.13 million through a share placement to fund detailed design of the HPA project.


BFS for HPA project

Earlier in the year, Altech completed a Bankable Feasibility Study that highlighted the potential of its HPA project to deliver high margins, strong cash flows, and rapid payback period.

Key metrics from the BFS included:

- 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) (at 10% discount);
- 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); and
- EBITDA of US$59.4 million (A$66.0 million) per annum.


Analysis

The sales and distribution agreement with Mitsubishi Corporation subsidiary Mitsubishi Australia Ltd clearly highlights the trust in Altech Chemical’s HPA process, product and management team.

It also demonstrates the rapid progress the company is making in developing its High Purity Alumina Project.

Altech is also looking to sign similar agreements in other countries.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 24 Sep 2015 10:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/148448/altech-chemicals-clinches-landmark-mitsubishi-sales-agreement-64725.html