Altech Improves Financials of HPA Project with BFS Update

16th March 2016, ASX Announcement

Highlights:

• Updated Bankable Feasibility Study confirms financial robustness of Altech’s HPA project
• Improved financials include:
  – Increased  estimated pre-tax NPV9 of US$358 million (previously US$326 million
  – Higher Internal Rate of Return (IRR) of 33% (previously 30%)
  – Capex  US$78.7 million (was US$76.9 million)
  – Long term sale price forecast unchanged at US$23,000/tonne for 99.99% (4N) product
  – Cost of goods sold lightly higher at US$9,074/tonne
  – EBITDA of US$55.7 million per annum at full production

Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is pleased to announce the results of an update to its Bankable Feasibility Study (BFS) for the develpoment of a 4,000tpa high purity alumina (HPA) processing plant at Johor, Malaysia.

Background 

Results from the BFS were announced on 29 June 2015 and since then the Company has worked with its various consultants to further refine the study. Key items of work included optimising the process flow sheet, refining equipment selection and pricing, the critical evaluation of key assumptions and operating parameters and an update of key consumables pricing and sourcing.
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