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Thread: ATC- Altech HPA

  1. #21
    FEAR n GREED JBmurc's Avatar
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    HUGE Volume keeps going like this and it will be the Biggest volume day for the last 12 months
    People don't have ideas, ideas have people

  2. #22
    FEAR n GREED JBmurc's Avatar
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    Default BUYING more ........still holding Dej ???

    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.
    Last edited by JBmurc; 06-02-2017 at 02:10 PM.
    People don't have ideas, ideas have people

  3. #23
    Senior Member Dej's Avatar
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    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




    Quote Originally Posted by JBmurc View Post
    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.
    “If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment.” ― Marcus Aurelius

  4. #24
    Legend shasta's Avatar
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    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?

  5. #25
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by shasta View Post
    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
    Last edited by JBmurc; 07-02-2017 at 11:05 PM.
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    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.

  7. #27
    Legend shasta's Avatar
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    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

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    For the benefit of those not yet in.

    https://hotcopper.com.au/threads/ann...9#.WKT3WoVOIcg

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    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.

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    Written summary of initial coverage at:

    http://www.altechchemicals.com/sites...%202017(1).pdf

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    Thanks guys am in today. SPP @ 14c for $2 millionsunderpins things.Been 6 years on the go for some patient holders. Just need the finance announcement and hopefully that will be the rerate catalyst.. DYOR

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    Quote Originally Posted by Joshuatree View Post
    Thanks guys am in today. SPP @ 14c for $2 millionsunderpins things.Been 6 years on the go for some patient holders. Just need the finance announcement and hopefully that will be the rerate catalyst.. DYOR
    Not just any old SPP but placement to cornerstone investor - 14ml shares. Just so much to like about this coy with positives throughout, too many to mention here but a sample: owns own feedstock, low cost very high return on sale of end product, 10 yr offtake agreement with Mitsubishi, low cost of finance with German bank (when approved) projected to be repaid within 4yrs from profits. Smart move to go for the finance option as this preserves SP instead of a massive SPP with huge dilution. Analysts reports highly favourable. Finance originally due Q1 2017 reset Q2 2017 has slowed both SP and volumes in recent times. Ready for take-off.
    DYOR

  14. #34
    Senior Member Dej's Avatar
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    As per my post of HC, see below:

    This is an interesting turn of events.

    Orbite technologies is a company that is often mentioned in our reports as our closest comparison for HPA production from a different feedstock. The Cap-Chat plant (their flagship facility) started running in October last year and production output reached 1tpd HPA by the end of February this year.

    As announced on the 31st of March 2017, the company has had trouble with its calciners of its recently commissioned plant, see announcement below:

    http://s2.q4cdn.com/622589029/files...7_03_31_ORT_PR_Q4_2016_Results_and_Update. pdf

    As announced on the 3rd of April 2017, the company has announced that it "has filed a Notice of Intention (the "NOI") to make a proposal under the Bankruptcy and Insolvency Act (Canada) (the "BIA")", stating "after carefully reviewing all relevant circumstances with the help of its advisors, the Company believes this measure is the best way to protect all stakeholders and will best facilitate its efforts to renegotiate its debt, work through the potential insurance coverage and raise the funds needed to remedy the supplied equipment issues." Link below.

    http://www.orbitetech.com/English/i...Stay-of-Proceedings-on-Creditors/default.aspx

    In summary, the issues with the supplied calcination equipment have added to the existing external capital costs and would have potentially led to a default of the company’s credit facilities.

    As announced on the 17th of April 2017, the company has now delisted from the TSX due to its filing under the BIA. Link below.

    http://www.orbitetech.com/English/i...-of-Intention-to-Make-a-Proposal/default.aspx

    As stated below:

    http://finance.yahoo.com/news/orbite-announces-filing-stay-proceedings-124638297.html

    "Failure by the company to achieve its financing and restructuring goals will likely result in the company becoming bankrupt."
    “If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment.” ― Marcus Aurelius

  15. #35
    FEAR n GREED JBmurc's Avatar
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    --looks likely I will have some more funds to invest soon got to love the outlook on
    ATC's Bankable Feasibility Study, which confirmed it can pump out 4,000 tonnes per annum of HPA, generating $60M EBITDA a year at full capacity is why they're willing to fund them in the first place. This is based on HPA at $15,000 per tonne, it can sell for $23,000 per tonne. Current market cap $37 million.

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    Quote Originally Posted by JBmurc View Post
    --looks likely I will have some more funds to invest soon got to love the outlook on
    ATC's Bankable Feasibility Study, which confirmed it can pump out 4,000 tonnes per annum of HPA, generating $60M EBITDA a year at full capacity is why they're willing to fund them in the first place. This is based on HPA at $15,000 per tonne, it can sell for $23,000 per tonne. Current market cap $37 million.
    HPA4 is selling for $30,000 per tonne in Japan

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    http://www.asx.com.au/asx/statistics...idsId=01861732

    Latest ann. re DD. Just keeps on getting into a stronger position and rewards should be forthcoming in a little while. GLTA holders.

  18. #38
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    Yes I see they have extended 5% discount to VWAP capital raising to 6th or was it 7th june ....be great buying at these levels
    People don't have ideas, ideas have people

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    Very interesting company and fits in perfectly with my investment philosophy. Will do more research but buying a small parcel at these levels can't hurt.

  20. #40
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    Quote Originally Posted by silu View Post
    Very interesting company and fits in perfectly with my investment philosophy. Will do more research but buying a small parcel at these levels can't hurt.
    Welcome to another one of my investments Silu

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