Alpha HPA (A4N) H2 2024 earnings summary

Executive summary

• Released updated Definitive Feasibility Study (DFS) for Stage 2 of the HPA First Project, expanding from a single product to a diversified, multi-product high purity aluminium offering.

• Secured $400M in government-backed project finance and raised $180M in new equity to fund Stage 2 construction.

• Achieved stable production at Stage 1 Precursor Production Facility (PPF), with high purity levels and expanded product range.

• Advanced Alpha Sapphire business with successful installation and commissioning of sapphire growth units and secured $30M in project funding.

• Focused on building a global customer base in high-tech sectors such as EV batteries, semiconductors, and LED lighting.

Financial highlights

• Group loss after tax for FY2024 was $24.98M, compared to $15.68M loss in FY2023.

• Sales revenue increased to $44,055 (FY2023: $16,148); other income rose to $6.5M (FY2023: $1.6M), mainly from R&D rebates and grants.

• Cash and cash equivalents at year-end were $189.6M, up from $20.6M in FY2023, reflecting successful capital raising.

• Net assets increased to $247.2M (FY2023: $56.0M) following equity raises.

• No dividends declared or paid for FY2024.

Outlook and guidance

• Stage 2 HPA First Project construction underway, targeting annual capacity of 10,430 tonnes of high purity aluminium products.

• Expected annual EBITDA between $255M and $403M post-ramp-up, with payback period of 3.4–4.4 years depending on pricing scenarios.

• Ongoing expansion of product marketing and customer qualification to underpin long-term specialty aluminas business.

• Sustainability initiatives and first Sustainability Report scheduled for late 2024.