Altech Chemicals is on the path to global leadership as a supplier of the highly demanded chemical – 99.99% pure alumina

Ignatius (Iggy) Tan, Managing Director, Altech Chemicals Ltd (ASX:ATC) 

Register Interest

Problem

• HPA demand is growing at ~30% p.a.
• New demand from lithium-ion battery industry (electric vehicles) and LED lighting (synthetic sapphire)
• HPA currently produced from expensive aluminium metal feedstock
• A 3-step energy intensive and environmentally impacting process
• Bauxite mining, refining to alumina, then smelting to aluminium
• Red muds and significant Co2 emissions for aluminium manufacture

Solution

• Altech’s single step patented kaolin to HPA production process
• Altech process certified “green” by CICERO (University of Olso, Norway)
• ~46% less greenhouse gasses compared to conventional process
• Lower cost of production, 40%-60% lower
• Primary reactant in Altech’s process (hydrochloric acid) is recycled

Competitve Edge

• A patented single step HPA production process
• Internationally renowned partners:
  – German government owned KfW IPEX-Bank US$190m senior project finance
  – Euler Hemes – German export credit agency
  – SMS group gmbH, German construction contractor – also significant Altech shareholder
  – Deutsche Balaton/Delphi – German investment group holding up to 19.9% of Altech shares (post Entitlement Offer)
  – Melewar Group – Malaysian industrial group holder >10% of Altech
  – Mitsubishi – offtake partner
• Stages 1 & 2 early works construction completed at the Johor HPA plant site, Malaysia under the fixed price plant construction contract.
• First to market applying the single step HPA manufacturing process

Team Experience

Managing Director Iggy Tan and General Manager Dr. Jingyuan Liu – both experienced Chemical Engineers that have a track record of chemical plant construction, commissioning and operations. Most recently Mr Tan and Dr Lui were instrumental in the construction, commission and operations of ASX listed Galaxy Resources’ Jiangsu Lithium Carbonate plant in China, which completed in 2011.

Raise

A 2 for 5 entitlement offer to existing shareholders priced at $0.04 per new share, with one (1) free attaching option for each two (2) new shares issued (Ex $0.08, Expiry 31-12-2022).

The offer closes 7 December 2020. Any non-shareholders interested to participate should contact the Company directly ([email protected]), as new shares (and free options) may be available under a Shortfall Offer.

Ambitions

Funds from the offer will be applied to the Company’s various European initiatives including listed Green Bonds, payments for stage 2 early works construction in Malaysia, development activities associated with an anode grade HPA product and coating know-how, outstanding consideration for the acquisition of shares in Altech Advanced Materials AG and for corporate costs and working capital – further details are contained in section 5 of the Offer Prospectus.

Highlights

• Development of a patented single step HPA production process
• Securing US$190m of senior project debt from German Government owned KfW IPEX-Bank
• Agreement on a fixed-price lump-sum EPC construction contract with SMS group
• Off-take sales arrangement with Mitsubishi
• Malaysian government tax incentive –no corporate tax for first 10 years of operations
• Solid group of German and Malaysian shareholders and other stakeholders

Register Interest