Altech Chemicals Quarterly Update: EBITDA US$55.7m, Mitsubishi Agreement Signed, $2m Capital Raising Update

2nd May 2016, ASX Announcement

Highlights 

• Altech improves financials of HPA project with BFS update
  – NPV3 US$358m (previously US$326m)
  – Payback 3.7 years (was 3.8 years)
  – IRR 33% (previously 30%)
  – Capex US$78.7m (was US$76.9m)
  – EBITDA US$55.7m p.a. (was US$59.4m)
• Debt funding Update HPA project
  – HPA project will support ~US$60m of debt funding
  – German government-owned KfW IPEX-Bank GmbH mandated
  – Application for  ~US$40m of German government export credit agency (ECA) cover
• Altech finalises agreement for HPA plant site – Johor, Malaysia
  – HPA plant site secured at the Tanjung Langsat Industrial Complex, Johor
  – 30 year lease, with option to extend for +30 years
  – Johor offer significant opex advantages
• Altech signs off-take sales agreement with Mitsubishi for all HPA production
  – Off-take arrangement for first 10 years of HPA operations
  – Secures sales for 100% of Altech’s proposed 4,000tpa
• DJ Carmichael ‘initial coverage’ report
  – Speculative Buy recomendation and a risked valuation of $0.41 a share in initial coverage report
• $2 million capital raising update
  – $1.2m @ 8.6c/share via private share placement
  – $0.744m via share purchase plan (SPP)
  – Funds used to finalise detailed design, debt funding and working capital

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