HUGE Volume keeps going like this and it will be the Biggest volume day for the last 12 months
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HUGE Volume keeps going like this and it will be the Biggest volume day for the last 12 months
ALTECH DEBT DUE DILIGENCE
AT AN ADVANCED STAGE
Highlights
• Debt due diligence at an advanced stage
• Confirmatory pilot plant test work in South Africa, Australia and Germany
• HPA market study completed
• Technical due diligence at an advanced stage
• Permitting in Malaysia and Australia progressed
Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is pleased to provide an update on the due
diligence activities associated with the financing of its proposed high purity alumina (HPA) project. The various
independent reviews and associated confirmatory pilot plant test work are now well advanced and nearing
completion.
Altech has been working exclusively with German KfW IPEX-Bank on project finance structuring. The
Company is currently targeting US$70 million of project debt; the majority of which is aimed to be subject to
German export credit cover (ECA), typically offered at attractive interest rates and terms; the remainder is
expected to be available on normal commercial loan terms.
On 10 August 2016 the appointment of due diligence consultants by Altech and KfW IPEX-Bank was
announced. The consultants are engaged to undertake definitive technical, market and legal reviews of the
Company’s HPA project, with an independent “expert opinion” report presented at the conclusion of the
reviews for the benefit of the ECA.
The due diligence consultants completed site visits to Meckering, Fremantle and Perth, Western Australia and
to Johor, Malaysia in early August 2016 and their respective initial reviews did not identify any major flaws in
the HPA project. However various pilot plant confirmatory test work programs were requested and detailed
audits initiated accordingly. The test work programs and audits are now well advanced.
Commenting on the due diligence activities, Altech managing director Iggy Tan said, “The last five months
have been extremely busy for the Company as we worked with the various due diligence consultants to
complete confirmatory pilot plant test work and respond to a large number of detailed information requests.
Yep still holding - is about 18% of my ASX portfolio at the moment so probably won't be buying more....especially after the shock of GNX doing a capital raise 2 months after a capital raise my ASX portfolio is hurting!
Definitely ticking boxes though, and this announcement further shows the confidence. Personally I am happy that the DD team wanted pilot plant test work to be completed - means they are doing their job! Plenty of finance professionals not giving a toss about technical items and just adding in another risk factor (e.g. docking a valuation by 25% for 'technology uncertainty' when you could easily test it yourself).
Probably another month before anything meaningful though. Lets see if the temperamental ASX traders can hold out for that long :p
Had a look into them, all looks good until i read the ramp up period where they are using lower quality/much lower value HPA initially.
All the valuations at 23,000/t HPA 4 seem redundant to me until they are actually achieving this, or have i missed something?
How are they going to service the debt in the short term?
I understand the current HPA 4 price is around USD $30,000t ...
• HPA plant will have an initial production capacity of 4ktpa of 99.99% HPA
(4N quality)
◦ This would position Altech as the largest producer of HPA in the world,
surpassing Sumitomo’s 3.2ktpa capacity
then with min mine life of 30yrs ...certainly plenty of time to pay back the debt needed to build and ramp up production ....
But as with any decent Mineral producer we'll have a predator keeping a close eye on operations ... and think it won't be long after successive operations we will be taken out for $1+ etc
Hi JB and DEJ
You not alone on this one. Yesterday's action certainly looked like the fox is in the henhouse causing concern for many being unsure what's going on. One thing that hasn't changed is ATC business plan and no release of bad news-the good news still to come still on track so today's trading will be very interesting.
Joined in today at 13.5c, to reduce being overweight in copper stocks.
I like the potential and sorting the debt/project financing derisks this significantly
For the benefit of those not yet in.
https://hotcopper.com.au/threads/ann...9#.WKT3WoVOIcg
Funny can't access report; but thats typical of me. Int in their explanation ,why Malaysa; it become a major headache for LYC i think with the opposition from locals.
OK try this one this one then
http://www.altechchemicals.com/sites...8Lodged%29.pdf