Altech Chemicals Quarterly Update: EBITDA US$55.7m, Mitsubishi Agreement Signed, $2m Capital Raising Update

Highlights

Altech improves financials of HPA project with BFS update
– NPV3 US$358m (previously US$326m)
– Payback 3.7 years (was 3.8 years)
– IRR 33% (previously 30%)
– Capex US$78.7m (was US$76.9m)
– EBITDA US$55.7m p.a. (was US$59.4m)
Debt funding Update HPA project
– HPA project will support ~US$60m of debt funding
– German government-owned KfW IPEX-Bank GmbH mandated
– Application for ~US$40m of German government export credit agency (ECA) cover
Altech finalises agreement for HPA plant site – Johor, Malaysia
– HPA plant site secured at the Tanjung Langsat Industrial Complex, Johor
– 30 year lease, with option to extend for +30 years
– Johor offer significant opex advantages
Altech signs off-take sales agreement with Mitsubishi for all HPA production
– Off-take arrangement for first 10 years of HPA operations
– Secures sales for 100% of Altech’s proposed 4,000tpa
DJ Carmichael ‘initial coverage’ report
– Speculative Buy recomendation and a risked valuation of $0.41 a share in initial coverage report
$2 million capital raising update
– $1.2m @ 8.6c/share via private share placement
– $0.744m via share purchase plan (SPP)
– Funds used to finalise detailed design, debt funding and working capital

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