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Thread: ATC- Altech HPA

  1. #16
    Senior Member Dej's Avatar
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    Quote Originally Posted by JBmurc View Post
    Happy to once again be a ATC shareholder(thanks to MKO moving upwards) ...and would like to increase my position before the Finance is finalized and ATC heads upwards at a steady rate during construction then production to a 400-600mill Mrktcap ....(present 30.6mill)
    You are lucky it has been subdued as of recently - welcome back JB.
    “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

  2. #17
    FEAR n GREED JBmurc's Avatar
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    Yes here's hoping it all goes to plan ..which so far it has
    People don't have ideas, ideas have people

  3. #18
    Senior Member Dej's Avatar
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    Quote Originally Posted by JBmurc View Post
    Yes here's hoping it all goes to plan ..which so far it has
    Managed to double up - still ticking more boxes. Recent updates to project as follows:

    - Secured Johor HPA site with 20 year lease (with options to extended further 20 years).
    - Opened a Malaysian subsidiary office and hired a local project coordinator.
    - Confirmation of global HPA demand as a part of the current due diligence being completed for debt financing.
    - Targeting US$70m project debt for Malaysian HPA plant (total plant cost approximately $80 million as per 2016FY report)
    - IRR of 33.3%, Pre TaxNet Present Value (@ 9% discount) US$357.5m (A$432.8m)
    - At full production total annual sales revenue is US$92m (A$115m) applying an FOB sales price of US$23,000/t (A$25,560/t) of final HPA product. EBITDA $55.7m USD.

    Main price triggers from now on:
    - Debt funding term sheet agreed in Q1 2017
    - Project equity in Q2 2017
    - Site works to commence in Q2 2017
    - Build time of 18 months, so production in early 2019.

    As of September 2016, the capital structure includes:
    - 11% held by Malaysian investors (6% of that in Melewar Equities Group - investment firm of the Negeri Sembilan Royal Family in Malaysia).
    - Approximately 40% held in top 20 investors
    “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. #19
    FEAR n GREED JBmurc's Avatar
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    If all goes to plan I will be at least doubling my holding before long ....Giant in the making here
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  5. #20
    FEAR n GREED JBmurc's Avatar
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    Now starting to kick into gear guys ....now up 45% for the last month ...the profit +life span of deposit etc equal numbers truly staggering ...10x bagger looks quite possible within
    the next 3yrs ...with longer term a Fat yield play
    Last edited by JBmurc; 20-01-2017 at 05:28 PM.
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  6. #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

  7. #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 01:10 PM.
    People don't have ideas, ideas have people

  8. #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

  9. #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?
    Disc holding - GOR, IGO, JAT, LYC, MEP, SES

  10. #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 10:05 PM.
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  11. #26
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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.

  12. #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
    Disc holding - GOR, IGO, JAT, LYC, MEP, SES

  13. #28
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    For the benefit of those not yet in.

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

  14. #29
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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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