Feedstock for the plant will be sourced from the Company's 100% owned kaolin deposit at Meckering,
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery.
With global HPA demand approximately 19,000tpa (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand is forecast to be approximately 272,000tpa, driven by both the increasing adoption of LEDs worldwide as well as the increasing demand by lithium-ion battery manufacturers to serve the surging electric vehicle market.
Conservative (bank case) cash flow modelling of Altech's HPA project shows a pre-tax net present value (NPV) of
German engineering firm SMS group GmbH (SMS) is the appointed EPC contractor for the construction of Altech's Malaysian HPA plant. SMS has provided a
The Company executed an off-take sales arrangement with
The Company has been successful in securing senior project debt finance of
Technical and market due diligence is complete, however Macquarie has requested that Altech secure pre-sales for a proportion of its planned future HPA production to an end user at predetermined prices, to demonstrate some pricing transparency in an otherwise opaque market. The Company continues to engage with a number of European electric vehicle (EV) sector participants that are potential product end users interested in securing future HPA supply.
Altech has raised approximately
In
Importantly for AAM, Altech has guaranteed that 6 years from the date of project financial close it will re-purchase the project interest that AAM does acquire, with a pre-determined re-purchase price that will deliver AAM an annual compound return equal to 15% of its original purchase price. AAM has the right to cancel Altech's re-purchase agreement at any time and thereby retain its interest, guaranteeing project upside for AAM.
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About
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.
Contact:
Corporate
Managing Director
Tel: +61-8-6168-1555
Email: info@altechchemicals.com
Company Secretary
Tel: +61-8-6168-1555
Email: info@altechchemicals.com
Investor Relations (
Tel: +49-69-175-548320
Email: hoffmann@soarfinancial.com
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