ATC 2.94% 7.0¢ altech batteries ltd

Hi Spid,I totally agree with your last comments. Going straight...

  1. 1,038 Posts.
    lightbulb Created with Sketch. 897
    Hi Spid,

    I totally agree with your last comments. Going straight from PFS to DFS is very bullish and bodes well for the near future.
    The original intent of the land purchase was for a second HPA plant. The site is ~14Ha which is huge. The Johor site is 4Ha.
    So they have enough land there for 2 Johor-sized HPA plants along with multiple 10ktpa coating plants.
    Land cost is Euro1.1m which seems very reasonable.
    I expect much of the DFS work has already been done as part of the PFS, as I think they've known for a while they were on a winner.
    The plant equipment required is a smallish subset of the Johor plant for which they already have detailed engineering and costings for.
    The person leading the PFS/DFS is a highly experienced and capable person, so the capital expenditure estimate should be accurate with no repeat of the Capex blowout we experienced with the Johor plant.
    In October 2020 Altech received a Euro7.38m grant for the 2nd HPA plant on the site. Clearly, the coating plant now takes precedence and I would expect this grant to be either reworked or additional grants to be forthcoming.

    On 8/9/2020 the company had 2825 shareholders and ~3 months later 655 holders subscribed to the rights issues that raised $7.3m and a further $1.1m from the shortfall offer. This excludes Melewar and Balaton's underwriting amounts of ~$4.1m
    Back then the coating process was still in its early days with no battery testing and Altech still managed to raise twice what this SPP is hoping to raise.
    As of 28/9/2021, the number of shareholders had increased to 4199.
    On that basis and fact that the company is in a far better position than it was 12 months ago, I'm confident the SPP will be at least fully subscribed.

    On a personal level, I have taken up my full allotments of shares in every SPP for the past 5 years. Last year's rights issue allowed me to buy as many as I could afford and thus receive a significant number of free options. At the time I believed the SP was seriously undervalued at 4c, hence my attraction to the options.
    Your suggestion to participate in the SPP and sell later makes sense, but the problem is ATM I don't have the full amount of money required to fully participate ( I'm invested in Altech via multiple entities). I am however considering a partial uptake, noting other holders may also sell heads to fund exercising their options which may put a brake on the SP in May.
    Where I disagree is that the company doesn't require all the money for the stated purposes on day one. The end of May will come quickly enough and the company will need all of the options converted ($12.5m) to fund the next steps.
    As for the Green Bonds, these are for debt for the Johor project. The company will not see a cent from them until the equity portion of the project is finalised. The green bond funds will sit in an arms-length SPV account earning a small amount of interest (paid by Altech) until an expiry date by which time the equity component must be completed. So whether or not the SPP is fully subscribed will be immaterial to the bond buyers IMO.
    Potential large bond buyers can easily look at the company's successful track record of raising capital when doing their due diligence.




    Last edited by Muad'Dib: 07/12/21
 
watchlist Created with Sketch. Add ATC (ASX) to my watchlist
(20min delay)
Last
7.0¢
Change
0.002(2.94%)
Mkt cap ! $115.7M
Open High Low Value Volume
6.8¢ 7.0¢ 6.8¢ $48.66K 712.1K

Buyers (Bids)

No. Vol. Price($)
1 141409 6.9¢
 

Sellers (Offers)

Price($) Vol. No.
7.0¢ 605621 4
View Market Depth
Last trade - 16.10pm 28/03/2024 (20 minute delay) ?
Last
6.9¢
  Change
0.002 ( 1.47 %)
Open High Low Volume
7.0¢ 7.0¢ 6.8¢ 152878
Last updated 15.55pm 28/03/2024 ?
ATC (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.