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Thread: ATC- Altech HPA

  1. #136
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    Quote Originally Posted by silu View Post
    Has anyone read through Collerina Cobalt's (CLL) announcement from yesterday? https://www.asx.com.au/asxpdf/201807...j17bj5f82z.pdf

    Apparently they can make 4N HPA 99.99% purity from available industrial products but compared to ATC they are still way behind. The plan to produce 1kg of it by September for marketing samples and a modified PFS by October.

    Anyone worried? I trust the Germans would have done extensive due diligence on alternate productions of HPA too and decided that being first counts for more than being best.

    In the meantime ATC is in the early stages of construction.
    Not quite clear to me what their benchmark is (better than what?) - probably their first quite inefficient and expensive process.

    Nothing in this announcement I could see which compares to ATC's (patented) process - and their reference to the benefit of not mining ... mining is for ATC not a risk, but an asset. Remember - they own a fully licenced open pit mine with several hundred years worth of feedstock which they just need to pick up.

    On what basis do you think CLL might be "best"? They are ways behind ATC and I don't see any data stating that their process might be better or cheaper than the ATC process. As well - even if they would compare what they think about their process with the ATC process, they clearly would not know yet how well their process works, given that they have not even produced their first kg. But still good to see some others working in this area, ATC alone could never supply 100% of the forecasted HPA demand ...
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    Yes my comment about "being best" was not in direct correlation to CLL but more a general comment that even if CLL's process were better it might not be preferred by financiers and the market. Way too many questions surround Collerina imo. Didn't even notice that their CR was at a 26.6% discount. DAMN!


    ATC on the other hand has ticked off so many boxes already and have lined up all their little ducks that I will try go get as many shares as I can afford in the SPP

  3. #138
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    Article of interest:
    https://stockhead.com.au/columnists/...f-asx-quartet/
    Iggy Tan’s Altech Chemicals is off and running to become the first producer of high purity alumina (HPA) among the ASX-listed quartet which have hitched their future to the boom material.

    Drawing on last month’s $20 million equity raising, Altech (ASX:ATC) has begun early construction works at its HPA plant site in Johor, Malaysia, which will draw its feedstock from an aluminium-bearing kaolin mine to be developed in Western Australia.

    The start to early construction works comes ahead of the financing package for Altech’s HPA plans being bedded down. But that’s exactly the point.

    “With these sort of projects it’s all about momentum,” Tan told this column. “It’s all about getting up and getting going.

    “We want to maintain project momentum and that’s the reason we raised the equity last month, to get early construction started.”

    Tan knows all about the importance of project momentum.

    It was his push and shove that established Galaxy Resources (ASX:GXY) as a leading lithium well before the lithium-ion battery boom gripped the market.

    Galaxy is now a $1.2 billion company.

    But when Tan left the company in 2013 the boom had yet to arrive and things got a bit tough, prompting Tan’s exit and his arrival at Altech a year later in another trail-blazing role, this time in the HPA space.

    Altech Chemicals shares (ASX:ATC) over the past year
    Altech Chemicals shares (ASX:ATC) over the past year
    Financing for Altech’s plan to become a 4,500 tonnes per annum HPA producer is coming together and has export credit finance from Germany’s KfW IPEX-Bank at its core. It’s said to be the best debt in the world.

    But facing six months or so for all of the financing plans to fall in to place, Tan decided to get moving now with the early construction works.

    His momentum focus comes at an interesting time for the ASX-listed HPA stocks in general. Other key HPA stocks are Collerina (ASX:CLL), Hill End (ASX:HEG) and FYI Resources (ASX:FYI).

    >> Read Stockhead’s quick guide to High Purity Alumina

    Because HPA is enjoying high demand growth as a thermal separator to prevent fires inside lithium-ion batteries, it is seen by many as purely a battery material.

    That was a positive until the heat came out of the lithium stocks earlier this year on forecasts that supply would soon swamp demand. It has become a negative by association for HPA ever since, in the minds of investors anyway.

    The main uses of HPA

    The reality is that the biggest use of HPA remains in LED lights and in the production of scratch-resistant glass.

    More importantly, unlike lithium, HPA is forecast to be in short supply for years to come.

    HPA is not a big-tonnage market, with global demand of about 30,000 tonnes in 2017. But industry forecasters predict double-digit compound growth to as much as 122,000tpa by 2025.

    That means multiple HPA plants like Altech’s Johor baby will be needed.

    The boom outlook is being reflected in prices for 99.99 per cent HPA product. While most of the HPA project aspirants assume long-term prices of less than $US30/kg for their projects, recent pricing in Japan is $US40/kg.

    HPA pricing

    Not unlike the lithium market, pricing for HPA is opaque. But unlike the lithium market, prices have remained strong.

    “Our view is that we are going to see very strong demand in coming years,” Tan said. “The market is growing by 20 times the size of our plant so there is no fight for market share.”

    He might as well have added that it’s a different outlook for the lithium producers where the supply window of opportunity is fast closing.

    Altech plugged in a long-term price of $US26.90/kg for HPA in its investment study in to its integrated project.

    The project is the first of the “disruptive’’ projects being brought forward in that its feedstock is kaolin based compared with the world’s existing production which starts out with finished aluminium metal.

    It means potentially much lower operating costs.

    Altech’s investment study forecast production costs of $US9.90/kg, indicating a gross margin of 63 per cent on the long-term price estimate, and an annual earnings capability of $US76 million.

    Altech last traded at 16.5c for a market cap of $87 million.

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    Altech Chemicals Johor Opening Ceremony

    https://youtu.be/LtaY_Xo1w_4

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    Quote Originally Posted by silu View Post
    Altech Chemicals Johor Opening Ceremony

    https://youtu.be/LtaY_Xo1w_4
    Once they confirm German funding ill chuck a few more pennies in. At the moment I am nervous the funding will full over or their production technology/plant set up might have difficulties. but with you on GNX.

  7. #142
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    Quote Originally Posted by Carpenterjoe View Post
    Once they confirm German funding ill chuck a few more pennies in. At the moment I am nervous the funding will full over or their production technology/plant set up might have difficulties. but with you on GNX.
    What do you mean with "once they confirm German funding"?

    German funding (KfW) has been confirmed already in December last year. The project is rolling. What they still working on is to tie up the "funding gap" and it sounds like they have more financiers interested in filing that than they need.

    https://www.altechchemicals.com/site...20Facility.pdf

    Great position to be in to negotiate optimal conditions for share holders.

    So - where are we?
    - they do have a guaranteed takeoff for their product (Toshiba for 10 years)
    - they do have the German KfW loan facility with outstanding conditions
    - they do have a patented and scrutinized process and more feed material than they can use up in my, my childrens and my grandchildrens lifetime ...
    - they do have a German contractor committed to do the work with expertise in this area, guaranteeing the process parameters and the output
    AND with skin in the game (they are shareholder as well);
    - They have all the necessary mining and manufacturing licenses, they have the place and they have a supportive environment
    (members of the Royal family in Malaysia are shareholders as well)
    - It looks quite likely that they will get quite friendly conditions re tax treatment (but I think the final confirmation on that is still out).

    Where do you see the biggest remaining risks?
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    Agree with the above,

    but

    They are still awaiting financial close which sounds non binding to me. All the other funding is non binding which has it's own risk. They had to capital raise to begin works and it is possible another raise could be required if construction out paces awaiting financial close.

    https://www.asx.com.au/asxpdf/201807...5t48xsyyb6.pdf

    If the plant does not work shareholders are left with millions in debt and no income. Hpa producer Orbite had this happen to them.

    Happy to accumulate/trade with loose change in this one and learn alot about HPA product.

  9. #144
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    Quote Originally Posted by Carpenterjoe View Post
    Once they confirm German funding ill chuck a few more pennies in. At the moment I am nervous the funding will full over or their production technology/plant set up might have difficulties. but with you on GNX.
    The funding in my view has been confirmed but obviously there are stipulations to on what the loan can be used for hence the CR to clear the site and ongoing costs until construction can start. Given that SMS, KfW, Altech, Malaysian royalty, Australian High Commissioner etc were there at the Opening Ceremony I'd assume all from now is mostly matter of fact. Sure hiccups can happen but I couldn't foresee any myself at the moment. ATC management has the great opportunity to actually shop around for the best terms for its Mezzanine Loan and Stream Finance as we have the Germans and Malaysian Royal Family on board.

    Can you elaborate what you mean with "but with you on GNX"?

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    HEG another potential HPA player is up nearly 40% today on no news?

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    Research report out valuing HEG at 38c

    http://www.resourcesrisingstars.com....senior-analyst

    http://www.resourcesrisingstars.com...endent Investment Research - HEG July '18.pdf

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    Quote Originally Posted by Paddie View Post
    Research report out valuing HEG at 38c

    http://www.resourcesrisingstars.com....senior-analyst

    http://www.resourcesrisingstars.com...endent Investment Research - HEG July '18.pdf
    Thanks. If only all my investments would trade closer to what research reports say

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    So here I was putting some money into my broker account to buy more ATC below 16c and now they have gone into a TH with regards to proposed funding counterparties. Well at least by Friday we know what a big piece of the puzzle will look like.

  14. #149
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    Quote Originally Posted by silu View Post
    So here I was putting some money into my broker account to buy more ATC below 16c and now they have gone into a TH with regards to proposed funding counterparties. Well at least by Friday we know what a big piece of the puzzle will look like.
    Yep, interesting - isn't it? This might well be the last piece of the financial puzzle. Quietly optimistic ...
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