Altech Chemicals Ltd - May 2016 Update

Altech Chemicals (ASX: ATC, “Altech”) has recently updated its Bankable Feasibility Study (“BFS”) as a result of ongoing optimisation activities on its proposed High Purity Alumina (“HPA”) specialty chemicals operation, and is now concentrating on permitting and sourcing funding for the estimated A$100 million capital required to develop the project. Financing activities have been considerably advanced with the signing of agreements with the KfW IPEX-Bank (“KfW”) and Euler Hermes (German Export Credit Agency “ECA”) and the signing of a 10 year offtake agreement with Mitsubishi Australia Limited (“Mitsubishi”). We continue to rate Altech as a SPECULATIVE BUY, with a revised midpoint indicative price target of $0.50/share, equating to a company valuation of $89 million. Our view is that the key share price catalyst will be securing funding for the development of the project. Download the report for more information…