BANKABLE FEASIBILITY STUDY CONFIRMS ALTECH’S HIGH PURITY ALUMINA (HPA) PROJECT

Highlights
 Bankable Feasibility Study (BFS) successfully completed three months ahead of schedule
 Compelling financial and technical results:
 Capital cost estimate US$76.9 million (A$98.6million)
 Payback period 3.8 years
 Estimated pre-tax NPV of US$326.1 million (A$362.4 million) (@ 10% discount)
 Highly attractive IRR of 30.3%
 Long-term sale price forecast of US$23,000/tonne (A$25,560/tonne) for 99.99% (4N) product
 Cost of goods sold US$8,140/tonne (A$9,050/tonne)
 EBITDA of US$59.4 million (A$66.0 million) per annum.
 Altech will now proceed to the funding phase of the project
Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is delighted to announce the positive results of its
Bankable Feasibility Study (BFS) for the development of a 4,000tpa high purity alumina (HPA) processing plant
at Tanjung Langsat, Johor, Malaysia and an associated kaolin beneficiation plant at Meckering, Western
Australia to provide feedstock for the HPA plant (the Project).
The financial and technical outcomes from the BFS are particularly compelling and it is now the Company’s
intention to move to secure the required equity and debt funding that will enable it to rapidly transition the Project
to final design and development.
Total capital costs for the Project are estimated at US$76.9 million (A$98.6 million), assuming a USD:AUD
exchange rate of 0.78.
Annual revenues at full production (4,000tpa of HPA) are forecast at US$92.0 million (A$102.2 million), with an
assumed long-term selling price of US$23,000 (A$25,560) per tonne of HPA, FOB Malaysia. Total annual
operating costs, including mining, beneficiation, shipping and processing are estimated at US$32.6 million
(A$36.2 million) or US$8,140 (A$9,050) per tonne of final HPA product at full production, resulting in an
impressive gross margin of ~65%.
Earnings before interest, tax and depreciation (EBITDA) are expected to be US$59.4 million (A$66.0 million) per
annum at full production, the pre-tax Net Present Value (NPV) of the Project is US$326.1million (A$362.4 million)
at a discount rate of 10%, and the Internal Rate of Return (IRR) is ~30.3%. Payback of capital is 3.8 years.
The Project presents a robust and attractive business case that delivers high margins, strong cash flows, and the
rapid payback of a relatively modest capital investment. Having considered the results of the BFS, the Company
will now proceed to secure the required funding and continue with detailed design, permitting and approvals, and
subject to funding, commence the ordering of long-lead items, initiate site clearances and then commence
construction.

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