Alpha HPA (A4N) AGM 2024 Presentation summary

Project development and milestones

• Stage 1 of the HPA First Project is in production, with a capacity of 350 tpa for all products; Stage 2 is under construction, targeting 10,000 tpa capacity and expected to reach steady-state production by FY30.

• Stage 2 construction commenced in September 2024, following a final investment decision and groundbreaking at the Gladstone, QLD site, which uses 100% renewable energy.

• The project has received comprehensive government support, including a $400M Australian government loan, $21.7M Queensland grant, $45M federal grant, and additional cost overrun facilities.

• Orica Ltd holds a 5% strategic stake, supporting technical diligence, commercial agreements, and North American expansion plans.

• Alpha Sapphire, a subsidiary, has established initial sapphire growth, commenced maiden sales, and is qualifying products for semiconductor OEMs.

Financial performance and outlook

• Stage 2 CapEx is $553M (including $79M contingency), with projected annual revenue of $359M–$509M and EBITDA of $255M–$403M at steady state by FY30.

• EBITDA margins are expected to range from 71% to 79%, with pre-tax free cash flows of $251M–$399M annually.

• Institutional placement of $175M and a $5.25M share purchase plan have been fully underwritten.

• Market cap is approximately $1.10B, with $167M in cash and an enterprise value of $936M as of November 2024.

• Share price ranged from $0.77 to $1.18 over the past year, with top shareholders including Regal Funds, Permgold, Orica, and Australian Super.

Technology, products, and market positioning

• Proprietary process does not use aluminium metal as feedstock, reducing costs and emissions; nearly 100% reagent recycling and 100% renewable energy use further lower environmental impact.

• High purity alumina (HPA) and derivatives support lithium-ion battery safety, high-power semiconductors, LED, and direct lithium extraction (DLE) sorbents.

• 170 test sample orders received since June 2024, with customer LOIs covering 23% of Stage 2 capacity and ongoing product qualification for ~25,000 tpa demand.

• B2B pricing is protected from index volatility, with detailed market outreach in the US, EU, Japan, South Korea, and China.

• Alpha Sapphire is positioned for growth in sapphire optics and semiconductors, with feasibility studies for further expansion underway.