Initiation Report

Altech Chemicals is an ASX listed company and is developing a High Purity Alumina (HPA) Project, with operations in Western Australia & Malaysia. Report includes:

• Valuation & Investment Analysis;
• Site trip and review of the planned HPA operation;
• What is HPA; and
• Management Interviews.

Valuation Analysis

Detailed valuation analysis of Altech. Key assumptions explained in further detail include:

• Operating and capital cost assumptions;
• HPA price;
• Production rate; and
• Discount rate.

Investment Analysis

Examine Altech as an investment opportunity and highlights what aspects we believe will support and potentially improve the long term underlying valuation of the company. These include:

• Increase demand for HPA;
• Low-cost, high margin HPA production;
• Long life project; and
• Offtake secured.

Risk Analysis

Highlight what risks we associated with a potential investment in Altech, and how the company plans to mitigate these risks. Topics discussed include:

• Processing technique;
• Purity of product – 4N HPA; and
• Project finance.

Why Malaysia?

Interview with management discussing why they chose Malaysia as the destination for their processing facility.

Virtual site trip – HPA Project

• Mining;
• Transportation;
• Processing of Kaolin into HPA; and
• Offtake & distribution.

What is HPA?

4N High Purity Alumina (HPA) is used primarily in the LED, Lithium Ion Battery and smartphone industries and is set for a signficant increase in demand. This analysis takes a the closer look at

• HPA’s uses;
• Supply and Demand factors; and
• How it is made.

Offtake & pricing

Review the terms of the offtake agreement with Mitsubishi as well as discuss how HPA pricing is determined.

The Pitch - Iggy Tan

Altech Chemicals is an ASX listed company and is developing a High Purity Alumina (HPA) Project, with operations in Western Australia & Malaysia.