Altech Chemicals (ASX:ATC) - Managing Director, Iggy Tan
Managing Director, Iggy Tan
Source: Altech Chemicals
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  • Altech’s (ATC) board has decided to proceed immediately with a definitive feasibility study for its silicon/graphite alumina coating plant
  • Results from Altech’s pre-feasibility study of its 10,000 tonnes per annum Silumina Anodes project, reveals a net present value of US$507 million (A$685.8 million)
  • The plant is set to be built in Saxony, Germany, and has a capital cost of US$95 million
  • The company estimates net cash generated from operations will be US$63 million
  • The internal rate of return is estimated at 40 per cent, with investment capital paid back in approximately 3.1 years
  • ATC shares jumped 31.6 per cent, trading at 10 cents

Altech Chemicals (ATC) says it will proceed to a definitive feasibility study (DFS) for its proposed silicon/graphite alumina coating plant in Saxony, Germany.

This follows the release of results from its pre-feasibility study (PFS) for the 10,000 tonnes per annum Silumina Anodes project, which reveals a capital cost of US$95 million (A$128.4 million), with an estimated net present value of US$507 million.

The company estimates net cash generated from operations will be US$63 million per annum.

The plant is set to be constructed by Altech Chemicals’ majority-owned Altech Industries Germany (AIG), and will produce high capacity silicon/graphite battery anode materials, or “silumina anodes”, under exclusive licence from Altech.

The company says the anode products will be produced to meet demand in the electric vehicle market in Europe.

The PFS found an internal rate of return from the plant estimated at 40 per cent, with investment capital paid back in approximately 3.1 years.

Total annual revenue at the 10,000 tonnes per annum full rate of production is estimated at US$185 million.

Altech Managing Director, Iggy Tan, said while financing Altech’s Johor high purity alumina (HPA) project will remain the company’s main priority, the Silumina Anodes project is an “exciting downstream opportunity to utilise its HPA coating technology in silicon/graphite battery materials”.

“Due to the attractive economics of the pre-feasibility study, a decision has been made by the AIG board to immediately progress to a definitive feasibility study (DFS) for the project,” Mr Tan said.

Altech (shares) has jumped 31.6 per cent today, trading at 10 cents at 1:03 pm AEST.

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