Altech Chemicals confirms financial robustness of HPA project

Altech Chemicals Ltd has revealed results of an update to its Bankable Feasibility Study (BFS) for the development of a 4,000tpa high purity alumina (HPA) processing plant at Johor, Malaysia.

Key outcomes of the updated BFS include:

• Increased estimated pre-tax NPV9 of US$358 million (previously US$326 million).
• Higher Internal Rate of Return (IRR) of 33 per cent (previously 30%).
• Capex US$78.7 million (was US$76.9 million).
• Long-term sale price forecast unchanged at US$23,000/tonne for 99.99 per cent (4N) product.
• Cost of goods sold slightly higher at US$9,074/tonne.
• EBITDA of US$55.7 million per annum at full production.

Iggy Tan, managing director, commented: “This updated BFS confirms the financial and technical robustness of the company’s HPA project, as was identified in the original BFS.

“Since the completion of the BFS in June 2015, the various technical consultants have taken time to conduct a detailed review of the entire HPA project, identifying optimisation opportunities, critically reviewing equipment selection, and updating all equipment and operating cost pricing.

"This is quite important given the changes that have transpired in the resources industry since the BFS was completed.

“The focus for Altech now is the finalisation of project financing, completion of final design and construction drawings, the formal appointment of the EPC contractor and the subsequent award of various works packages to enable the commencement of construction in early 2017.”