Prime shareholders of Altech Chemicals transform listed options; deadline 31st May

The largest shareholder of Altech Chemicals Ltd Deutsche Balaton Aktiengesellschaft (Deutsche Balaton) has transformed 15,000,000 enlisted options which will expire on 31^st May 2022 with a conversion price of $0.08 each, for total proceeds of $1,200,000.

Eminent shareholder, Delphi Unternehmensberatung Aktiengesellschaft (Delphi) for total proceeds of $921,543, has converted 11,519,296 listed options as a bonus.

Iggy Tan, the Managing Director of Altech Chemicals exclaimed: "Altech is extremely pleased to have the support of these major shareholders at a very exciting time for the Company. Altech recently announced the outstanding preliminary feasibility study results for its Silumina AnodesTM battery materials project in Germany, which included a pre-tax NPV(8) of US$507 million, as well as an attractive internal rate of return of 40 per cent. To have the support of these major shareholders, both domiciled in Germany, at a time when Altech is moving forward with construction of the Silumina AnodesTM pilot plant in Germany, as well as the DFS on the 10,000tpa Silumina AnodesTM, is very positive. On behalf of the Board of Directors, I would like to thank both Deutsche Balaton and Delphi for their ongoing support of Altech".

Deutsche Balaton and Delphi conversions jointly permitted a fund of US$ 21, 21,543 to Altech Chemicals Ltd.

With the advent of their 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia, Altech Chemicals Limited aspires to gain supremacy along the 99.99% (4N) high purity alumina (Al2O3) production and supply chain.

The Company's fully owned kaolin deposit at Meckering, Western Australia will deliver raw materials to Malaysia for the plant.

Global HPA demand in 2018 was approximately 19,000 tonnes and it can be reckoned that this demand will keep bulging at a compound annual growth rate (CAGR) of 30 per cent from the years, 2018 to 2028. As it is being estimated, by 2028, the HPA market demand will be more or less 272,000 tonnes because of the excessive use of LED lights around the world. Moreover, the lithium-ion battery makers would also want their share of HPA to manufacture energy cells compatible with the electric vehicle industry.

HPA or High purity alumina is a very critical and high margin ingredient used in the production of synthetic sapphire. At this moment, we are technologically dependent on this product as synthetic sapphire is used to manufacture substrates for LED lights, semiconductor wafers utilised in the electronics industry, and scratch-resistant sapphire glass for wristwatch faces, optical windows and smartphone components. Therefore HPA is a very valuable product which seems to have a rising demand in the upcoming century.

Lithium-ion battery manufacturers are constantly using HPA to coat the battery’s separator, in turn improving the performance, durability and security of a cell.

The ASX announcement of 21^st April 2022 concluded on a very practical note that said, Altech would grab this chance to remind holders of listed options that the payment pending deadline is on 31^st May 2022 and it also urges holders to consider converting their options. All the guidelines referring to the payment or conversion processes have been either posted or emailed to valid option holders.