Altech Batteries
Limited
2023
A N N U A L R E P O R T
COMPANY PROFILE
ABOUT ALTECH BATTERIES LTD ASX: ATC / FRA: A3Y
SILUMINA ANODES BATTERY MATERIALS PROJECT
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CERENERGY BATTERIES PROJECT
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Altech Batteries Ltd is a specialty battery technology company that has a joint venture
agreement with world leading German battery institute Fraunhofer IKTS (“IKTS”) to
commercialise the revolutionary CERENERGY Sodium Chloride Solid State (SCSS)
Battery. CERENERGY batteries are the game-changing alternative to lithium-ion
batteries. CERENERGY batteries are fire and explosion-proof; have a life span of
more than 15 years and operate in extreme cold and desert climates. The battery
technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-
free, eliminating exposure to critical metal price rises and supply chain concerns.
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The joint venture is commercialising its CERENERGY battery, with plans to construct
a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends
to produce CERENERGY battery modules to provide grid storage solutions to
the market.
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Altech has licenced its proprietary high purity alumina coating technology to 75%
owned subsidiary Altech Industries Germany GmbH (AIG), which is finallising a
Definitive Feasibility Study for the development of a 10,000tpa silicon/graphite alumina
coating plant in the state of Saxony, Germany to supply its Silumina Anodes product
to the burgeoning European electric vehicle market.
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The Company patented its game changing technology of incorporating high-capacity
silicon into lithium-ion batteries. Through in house R&D, the Company has cracked the
“silicon code” and successfully achieved a 30% higher energy battery with improved
cyclability or battery life. Higher density batteries result in smaller, lighter batteries and
substantially less greenhouse gases, and is the future for the EV market. The
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Company's proprietary silicon graphite product is registered as Silumina Anodes .
The Company is in the race to get its patented technology to market, and a Preliminary
Feasibility Study (PFS) for the construction of a 10,000tpa Silumina Anodes material
plant at AIG's 14-hectare industrial site within the Schwarze Pumpe Industrial Park in
Saxony, Germany. The European graphite and silicon feedstock supply partners for this
plant will be SGL Carbon and Ferroglobe. The project has also received green
accreditation from the independent Norwegian Centre of International Climate and
Environmental Research (CICERO). To support the development, AIG has commenced
construction of a pilot plant adjacent to the proposed project site to allow the
qualification process for its Silumina Anodes product. AIG has executed NDAs with
two German automakers as well as a European based battery company.
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A LT E C H
cerenergy
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The pilot plant is scheduled to be commissioned by end of Q4, 2023.
“ALTECH IS A BATTERY ENERGY COMPANY
TO MEET A BATTERY STORAGE FUTURE” - IGGY TAN CEO
Silumina An desTM
OUR VISION
MEETING A
BATTERY STORAGE
FUTURE AS THE
WORLD TRANSITIONS TO THE
ELECTRIFICATION OF ENERGY SOLUTIONS
CHAIRMAN’S REPORT
Dear fellow Altech Shareholders,
This year has seen Altech successfully move forward with its two key battery
projects.
Ÿ CERENERGY Sodium Chloride Solid State (SCSS) Battery.
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Ÿ Silumina Anodes Battery Materials.
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On 14 September 2022, Altech announced that it had executed a Joint Venture
Shareholders' Agreement with world-leading German battery institute
Fraunhofer IKTS (“Fraunhofer”) to commercialise Fraunhofer's revolutionary
CERENERGY Sodium Chloride Solid State (SCSS) Battery.
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Altech is the majority owner of the JV company, which is commercialising a 100
MWh battery plant to be constructed on Altech's land in Schwarze Pumpe,
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Germany. The SCSS CERENERGY battery uses common table salt and
ceramic solid-state technology.
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Altech believes that CERENERGY batteries are the game-changing grid
storage alternative to lithium-ion batteries. CERENERGY batteries are fire and
explosion-proof, have a life span of more than 15 years and operate in extreme
cold and desert climates. The battery technology uses table salt and nickel - is
lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to
critical metal price rises and supply chain concerns.
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The Definitive Feasibility Study in relation to the CERENERGY 100 MWh
battery plant is scheduled to be completed by Q4 of 2023, at which time, the
Company aims to execute an offtake agreement and subsequently obtain the
required finance to move forward with construction of the 100 MWh battery
plant, to produce the CERENERGY 1MWh GridPack battery, destined for the
lucrative and growing grid storage battery market.
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Altech continued with the development and commercialisation of the Silumina
Anodes Battery Materials Project in Saxony, Germany. To this extent, Altech is
finalising construction of the pilot plant to produce 120kg per day of Silumina
Anodes for distribution to potential customers, with the aim being to secure an
offtake agreement. The pilot plant is scheduled to be commissioned by the end
of Q4, 2023.
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In conjunction with this, and with the results achieved from the outstanding
Preliminary Feasibility Study for the full-scale plant to produce 10,000tpa of
Silumina Anodes , Altech is preparing a Definitive Feasibility Study that will
provide additional assurance over the project.
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Subsequent to the end of the financial year, Altech successfully completed a
capital raising, receiving gross funds of $15.8 million. The Company is now well
funded to move forward on both of its German battery projects.
I would like to thank all shareholders for their support during the year. I would
also like to extend my gratitude to Managing Director Mr Iggy Tan, as well as the
Altech team, for their effort and commitment shown throughout the year.
Luke Atkins
Non-Executive Chairman
BOARD OF DIRECTORS
LUKE ATKINS
LLB - Non-Executive Chairman
A highly qualified mining executive and lawyer by profession, Mr Atkins has had extensive experience in capital raisings and has held a number of executive and non-
executive directorships of private and publicly listed companies including a number of mining and exploration companies.
Mr Atkins is the co-founder of ASX-listed Australian Silica Quartz Group Limited (formerly Bauxite Resources Limited) (ASX: ASQ) and is currently the company's non-
executive director. Mr Atkins brings to the board extensive experience in the areas of mining, exploration and corporate governance.
IGNATIUS (IGGY) TAN
B.Sc. MBA, GAICD - Managing Director
Mr Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects such as capital raisings, funding,
construction, start-ups and operations. Mr Tan has over 30 years chemical and mining experience and has been an executive director of a number of ASX-listed companies.
He holds a Master of Business Administration from the University of Southern Cross, a Bachelor of Science from the University of Western Australia and is a Graduate of the
Australian Institute of Company Directors. Mr Tan previously held managing director positions at ASX-listed Kogi Iron Limited (ASX: KFE) and Galaxy Resources Limited
(ASX: GXY).
PETER BAILEY
Independent Non-Executive Director
Mr Peter Bailey is a highly experienced and qualified engineer with over 40 years experience in the mining and industrial chemical production industry. He was previously chief
executive officer at Sherwin Alumina, an alumina refinery located in Texas, USA. Prior to Sherwin, in 1998 Mr Bailey was president of Alcoa Worldwide Chemical's industrial
chemicals department. He was responsible for managing the company's 13 alumina plants that were located in eight countries, with combined annual revenue of approximately
US$700 million.
In 1996, Mr Bailey was president of Alcoa Bauxite and Alumina and was responsible for eight (8) alumina plants outside of Australia. He was also chairman of the Alcoa Bauxite
joint venture in Guinea, Africa.
DANIEL TENARDI
Non-Executive Director
Mr Tenardi is a highly experienced global resource executive with over 40 years experience in the mining and processing sectors. During his extensive career, Mr Tenardi
spent 13 years at Alcoa's alumina refinery in Kwinana as well as at the company's bauxite mines in the Darling Ranges of Western Australia. Mr Tenardi was the founding
managing director of Bauxite Resources Limited (since renamed Australian Silica Quartz Limited) (ASX: ASQ) where he led the rapid growth of the company from its initial
exploration phase, expansion of land holdings, to the commencement of trial shipments of ore. Mr Tenardi was most recently a non-executive independent director of
Australian iron ore producer, Grange Resources Limited (ASX: GRR).
TUNKU YAACOB KHYRA
B.Sc (Hons), CA - Non-Executive Director
Tunku Yaacob Khyra is the executive chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian-based diversified financial and industrial services group.
He is the major owner and shareholder of Melewar and sits on the boards of Khyra Legacy Berhad, Mycron Steel Berhad, MAA Group Berhad, Melewar Industrial Group
Berhad, Ithmaar Bank B.S.C. (listed on Bahrain Stock Exchange) and several other private companies. Tunku Yaacob graduated with a Bachelor of Science (Hons) Degree
in Economics and Accounting from City University, London. An accountant by training, he is a Fellow of the Institute of Chartered Accountants in England and Wales and a
member of the Malaysian Institute of Accountants.
UWE AHRENS
Alternate Non-Executive Director (for Tunku Yaacob Khyra)
Mr Uwe Ahrens is executive director of Melewar Industrial Group Berhad and managing director of Melewar Integrated Engineering Sdn Bhd. He also sits on the board of
several other private limited companies. Mr Ahrens holds Masters degrees in both Mechanical Engineering and Business Administration from the Technical University
Darmstadt, Germany. Upon graduation, Mr Ahrens joined the international engineering and industrial plant supplier, KOCH Transporttechnik GmbH in Germany, now
belonging to FLSmidth Group, where he held a senior management position for 12 years, working predominantly in Germany, USA and South Africa. Mr Ahrens is the
alternate non-executive director for Tunku Yaacob Khyra.
HANSJOERG PLAGGEMARS
Non-Executive Director
Mr Plaggemars was previously a member of the board of Delphi Unternehmensberatung AG and Deutsche Balaton AG (Altech major shareholder) and currently acts as
their representative. Mr Plaggemars is based in Heidelberg, Germany and is an experienced company director and manager. He studied business administration at the
University of Bamberg from 1990 to 1995. Mr Plaggemars has been a management consultant since June 2017 and is a board member of various companies within the
scope of projects. Mr Plaggemars is currently a member of the management board of Frankfurt Stock Exchange listed Altech Advanced Materials AG. Mr Plaggemars also
currently serves as a non-executive director at ASX listed Geopacific Resources Limited, Wiluna Mining Corporation, Spartan Resources Limited, PNX Metals Limited,
Kin Mining Limited and Azure Minerals Limited.
Stackable and all weather Altech MWh GridPacks
MANAGING DIRECTOR’S REVIEW OF OPERATIONS
SUMMARY
4. Nearing completion of the Definitive Feasibility Study, for the full-scale
plant to produce 10,000tpa of Silumina Anodes in Saxony, Germany.
Altech acquired an ~14Ha industrial site in Saxony, Germany that is an
ideal location for the full-scale plant.
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5. Continuing the process of securing the green bond and project level equity
to finance the remaining construction for the Johor, Malaysia high-purity
alumina production plant.
Iggy Tan
Managing Director and Chief Executive Officer
It is with pleasure that I provide a review of Altech's operations. The past year
enabled Altech to aggressively move forward with its CERENERGY Sodium
Chloride Solid State (SCSS) battery project destined for the grid storage battery
market, as well as its patented Silumina Anodes battery materials coating
technology, which aims to increase the capacity of lithium-ion batteries
by including high-purity alumina coated silicon and graphite in the anode
of the battery.
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The principal activities of the Company during the financial year were:
1. On 14 September 2022, executing a Joint Venture Shareholders' Agreement
with world-leading German battery institute Fraunhofer IKTS (“Fraunhofer”)
to commercialize Fraunhofer's revolutionary CERENERGY Sodium
Chloride Solid State (SCSS) Battery.
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2. Commercialising a 100MWh plant to produce CERENERGY batteries. To
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this extent, Altech is preparing a Definitive Feasibility Study scheduled to be
finalised by end of Q4 2023, appointed its major suppliers for the plant's
design, launched product designs for the ABS60 CERENERGY 60KWh
battery pack as well as ABS1000 CERENERGY 1MWh GridPack,
commenced fabrication of two prototype ABS60 CERENERGY 60KWh
battery packs and announced the battery specifications for both the ABS60
and ABS1000.
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3. Nearing completion of construction by Küttner GmbH & Co on the Silumina
Anodes pilot plant that will produce 120kg per day (~37,000 kg per year) of
the Silumina Anodes product for product qualification with end users, that
will assist in securing an offtake agreement for the full-scale plant. The pilot
plant is scheduled to be commissioned by end of Q4 2023.
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CERENERGY SODIUM CHLORIDE SOLID STATE BATTERY
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Fraunhofer has estimated that the total cost of production for CERENERGY batteries
will be 40%-50% cheaper than lithium-ion batteries. This will be determined in the
Definitive Feasibility Study (“DFS”).
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The joint venture partners are nearing completion of the DFS required for the
commercialisation process, with the DFS scheduled to be finalised by end of
Q4 2023. Once the Train 1 (100 MWh) plant is built and operating, the longer-term
vision for the joint venture is to construct additional trains or a Gigawatt battery facility.
SCSS CERENERGY BATTERIES
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Altech believes that Sodium Chloride Solid State (SCSS) CERENERGY batteries are
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the game-changing grid storage alternative to lithium-ion batteries. CERENERGY
batteries are fire and explosion-proof, have a life span of more than 15 years and
operate in extreme cold and desert climates. The battery technology uses table salt and
nickel - is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure
to critical metal price rises and supply chain concerns.
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The SCSS technology has been developed by Fraunhofer over the last eight years and
has revolutionised previous technology, allowing higher energy capacity and lower
production costs. SCSS-type batteries, in terms of capacity, have already been
successfully tested in stationary battery modules. The Fraunhofer SCSS batteries are in
the final phase of product testing and ready to commercialise. Fraunhofer has spent in
the region of EUR 35 million on research & development and operates a EUR 25 million
pilot plant in Hermsdorf, Germany. The final CERENERGY battery packs are specially
designed for the grid storage market and have been undergoing extensive performance
testing in Germany. These modules are designed to fit in racks housed in sea
containers that can then be deployed and easily configured.
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The joint venture partners have elected to develop a 100 MWh SCSS battery plant
(Train 1) on Altech’s site in Saxony, Germany. The target market for this project will
specifically focus on the grid (stationary) energy storage market which is expected to
grow by 28% CAGR (Compound Annual Growth Rate) in the coming decades. The
global grid energy storage market is expected to grow from USD 4.4 billion in 2022 to
USD 15.1 billion by 2027. Or further out, the market is expected to grow from 20 GW in
2020 to over 3,000 GW by 2050. Altech believes that SCSS batteries can provide high
security, at low acquisition and operating costs, for the stationary energy storage
market.
THE IDEAL BATTERY?
Based on the challenges facing lithium-ion batteries and the increasing prices of the
critical materials and metals used in these batteries, the industry has been searching
for a battery technology that resolves these problems. A battery that is fire and
explosion proof, has a lifespan of more than 15 years, and operates in cold and desert
climates. A battery technology where it is lithium free, cobalt free, graphite free and
finally copper free, which limits the exposure to critical materials prices rises and supply
chain concerns. Altech believes that SCSS CERENERGY batteries resolve some of
the biggest problems and challenges facing lithium-ion batteries today. SCSS
CERENERGY batteries are not designed to replace the successful lithium-ion
batteries, but provide an ideal alternative for the stationary storage market.
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GRID STORAGE MARKET
Grid energy storage (also called large-scale energy storage) is a collection of methods
used for energy storage on a large scale within an electrical power grid. Electrical
energy is stored during times when electricity is plentiful and inexpensive (especially
from intermittent power sources such as renewable electricity from wind power, tidal
power, and solar power) or when demand is low, and later returned to the grid when
demand is high, and electricity prices tend to be higher. Developments in battery
storage have enabled commercially viable projects to store energy during peak
production and release it during peak demand, and for use when production
unexpectedly falls giving time for slower responding resources to be brought online.
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Altech’s CERENERGY batteries are targeted to supply this grid energy storage market
which is expected to grow by a 28% compound annual growth rate in the coming
decades. The global grid energy storage market is expected to grow from USD 4.4
billion in 2022 to USD 15.1 billion by 2027. Or further out, growth is expected from 20
GW in 2020 to over 3,000 GW by 2050.
Ceramic solid-state electrolyte at Fraunhofer pilot plant facility
SCSS individual cell rated at 2.58 V each
LAUNCH OF CERENERGY 60KWH BATTERY PACK (ABS60) DESIGN
FOR RENEWABLE ENERGY STORAGE MARKET
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LAUNCH OF CERENERGY 1MWH GRIDPACK (ABS1000) DESIGN
FOR RENEWABLE ENERGY STORAGE MARKET
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Altech designed and launched the CERENERGY 1.0 MWh GridPack (ABS1000).
Based on preliminary discussions with potential off-takers and to minimise on site
installation of individual ABS60 60KWh battery packs, a pre-installed solution has been
launched. Each GridPack will have up to eighteen 60 KWh battery packs installed and
connected to pack power management system. Every GridPack has a distinct rating of
600 volts DC and 100 Ah, and it can be arranged in series (cluster or array) to achieve
the required rating of several thousand KWs for grid functioning. A video in relation to
this can be viewed on Altech’s website.
Altech designed and launched the CERENERGY 60 KWh battery pack (ABS60).
Based on preliminary discussions with potential off-takers for the 100MWh
CERENERGY battery project, the 60 kilowatt-hour (KWh) battery pack (ABS60)
is rated at a higher voltage of 620 volts and 100 amp hour (Ah).
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A video of the battery design can be seen on Altech web site
www.altechgroup.com or on YouTube https://youtu.be/OHPdGvaOlmI
ABS60
60 KWh
620 Volts
100 Ah
60 KWh Battery Pack
1.0 MWh GridPack (ABS1000)
LAUNCH OF CERENERGY 1MWH GRIDPACK (ABS1000) DESIGN
FOR RENEWABLE ENERGY STORAGE MARKET
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The Altech GridPacks have been specifically engineered to adhere to the Ingress
Protection (IP) 65 standard (relating to a high level of electrical enclosure sealing),
ensuring complete protection from both dust and inclement weather. This means that
there is no need for any additional shelters or buildings to house the Altech GridPack
batteries, and they can be safely installed outdoors in any weather conditions. The
Altech GridPacks will be constructed using a sea container design, which facilitates
their easy transportation by sea or road to the installation site, as well as ensuring
simple installation.
The “plug and play” feature of the site installation for the GridPacks ensures that they
can be easily installed in remote locations. Additionally, the containers have been
designed to be stackable, which minimises the battery footprint. Unlike other mega
battery pack designs on the market, these GridPacks can be stacked on top of each
other. This stackable feature, coupled with the “plug and play” design, makes the
GridPacks easily scalable and adaptable to meet future energy storage requirements
of the site.
Furthermore, the Altech GridPacks are designed without the requirement for any
moving parts such as cooling fans, which are typically found in lithium-ion battery mega
packs. This is a notable advantage as end-use customers have raised concerns about
the noise generated by mega packs, preventing them from being placed near
residential areas. With the absence of any moving parts, the Altech GridPacks are
completely noise-free operation, making them an ideal solution for noise-sensitive
environments. Finally, GridPacks are low in maintenance costs over the battery life.
The Altech 1 MWh GridPacks are designed to operate in any climate, without the need
for thermal management. The battery's internal temperature remains relatively constant
throughout the charging and discharging cycles, due to its endothermic and exothermic
properties. These 1 MWh GridPacks will offer significant benefits for the fast growing
renewable energy and grid storage sectors. These larger battery packs are capable of
storing more energy, resulting in more efficient utilisation of renewable energy sources
such as wind and solar power.
Altech believes that the proposed GridPacks are an excellent means of stabilising the
grid by providing a source of backup power during periods of high demand or when
renewable energy sources are not producing at capacity. They are also a cost-effective
solution for storing and distributing renewable energy across a variety of applications,
including grid-scale storage, microgrids, and electric vehicle charging.
Moreover, they are non-flammable and pose zero fire and explosion hazards. With a
projected lifespan of over 15 years with unlimited cycling and can operate in extreme
cold and hot climates. Altech believes that these GridPacks will be the preferred choice
for customers seeking a reliable and long-lasting energy storage solution.
Containers have been designed to be
stackable, minimising the battery footprint
TWO ABS60 60 KWH BATTERY PACK PROTOTYPES IN PRODUCTION
Altech has commenced production and fabrication of two prototypes of the 60 KWh
(ABS60) CERENERGY battery packs at the Fraunhofer IKTS facility in Hermsdorf,
Germany. Once completed, the battery packs will undergo cycling testing under extreme
conditions, and they will be available for testing at customer premises.
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The design for the CERENERGY 60 KWh battery pack was launched by Altech and its
joint venture partner Fraunhofer, on 7 November 2022. This battery pack boasts a rated
operating voltage of 600 volts at 100 amp (A).
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Following the launch, the joint venture carried out extensive cycling simulations to
evaluate the temperature profile of the internal components of the battery. Typically, the
charging process involves a net endothermic (heat energy absorption) reaction,
whereas the discharge process leads to an exothermic (heat energy release) reaction.
The simulations indicate that the battery can undergo charge and discharge cycling
while maintaining stable internal temperatures without overheating, even under extreme
conditions such as a desert environment, where the ambient temperature was recorded
at 60°C. No instances of overheating were reported during these simulations.
Based on the results of these simulations, the specifications for the 60 KWh battery
packs have been finalised, and orders for materials required for the production of two
prototype batteries have been placed. This process involves the manufacture of 480
ceramic solid-state cells, along with the production and procurement of auxiliary
equipment including but not limited to cabling, module structures, composite isolation
cabinet and battery management system (BMS).
CERENERGY PROPOSED BATTERY SPECIFICATIONS
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Altech has released preliminary battery specifications for its CERENERGY 60 KWh
(ABS60) and 1 MWh (ABS1000) GridPack battery products. Collaborating closely with
its joint venture partner Fraunhofer, Altech has developed these specifications to cater
to the evolving needs of the renewable energy and grid storage market. These
preliminary specifications serve as a significant milestone for Altech, enabling the
company to initiate discussions with potential off-take partners and secure future sales.
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The increasing demand for renewable energy sources, coupled with the intermittent
nature of renewable power generation, has underscored the critical need for efficient
and reliable energy storage solutions. Grid storage batteries have emerged as a key
enabler for balancing energy supply and demand, ensuring stable power delivery, and
maximising the utilisation of renewable energy sources.
The transition of countries like Germany to a power system heavily reliant on weather-
dependent renewables is reaching its limitations, a challenge that all nations adopting
wind and solar energy will eventually confront. The absence of sunlight and wind for
prolonged periods raises concerns about power supply. Additionally, the short, dark,
and cold days of midwinter pose a specific problem for meeting countries’ power
demand through renewables.
In addition to shortages, surpluses also pose a significant issue. On days when sunlight
is abundant, but demand is low, excess power is discharged to the ground. This results
in substantial wastage of electrical power. Germany alone wastes approximately
EUR 2 billion annually due to this discharge. Similarly, the state of California wastes
approximately US$3 billion of renewable energy each year due to surpluses or lack of
grid capacity to bring the power to where it is needed. Excess power in the grid can
lead to negative prices, compelling grid operators to pay customers to consume
electricity. The expansion of renewables amplifies the volatility within the system.
Grid battery storage is crucial to maintain a delicate balance in power supply to ensure
a stable and reliable energy infrastructure, whilst accommodating the fluctuations
inherent in renewable energy sources. The grid energy storage market is expected to
grow by a 28% compound annual growth rate in the coming decade.
Altech recognises the potential of this market and aims to contribute to its growth and
development through the introduction of its CERENERGY battery products. Altech has
developed cutting-edge battery specifications that meet the specific requirements of this
sector. The preliminary specifications for the CERENERGY 60 KWh (ABS60) battery
pack, as well as the 1 MWh (ABS1000) GridPack battery products, are outlined below:
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SPECIFICATIONS 60 KWH BATTERY PACK (ABS60)
The 60 KWh Battery Pack (ABS60) is rated at an operating voltage of 600 volts and
100 amp (Ah). The battery is designed to provide battery backup and excellent
performance in grid-tied commercial applications for an uninterrupted power supply.
Battery Type:
Application:
Battery Pack ABS 60
Sodium Nickel Chloride Solid State Battery
Power Grid Operation & Renewable Energy Storage
ABS 60 - Battery Pack
500mm x 2330mm x 1100mm
͌ 800kg
600 V DC
410 V DC (min) to 670 V DC (max)
100Ah Nominal
cont. 25 A / trans. 33A
min. 270° C - max. 350° C
~40° C to 60° C
IP65
Dimensions
Weight:
Nom. Voltage:
Voltage Range:
Current Capacity:
Discharge Current:
Internal Ops Temp.:
Ambient Ops Temp.:
IP Rating:
Nominal Energy Capacity: 60kWh
Operational SoC Range: 15% - 95% (80%)
C-Rate:
C-Rate Power Mode:
24h Cycle Capacity:
Cycle per day:
Design Life:
Warranty:
0.16C - 0.33C bi-directional
0.5C for 15 Minutes
Yes, continuous without interruptions
up to 3 @ 80%
>15 years
5 years or 5000 cycles
Note: A
AC conversion included, all permits on AC BMS included
SPECIFICATIONS 1 MWH GRIDPACK (ABS1000)
The ABS1000 GridPack battery targets larger-scale applications, such as grid-level
storage and industrial power backup. With a capacity of 1 MWh, this high-performance
battery system ensures a stable and uninterrupted power supply, contributing to grid
stability and reducing reliance on fossil fuels. The preliminary specifications for the
ABS1000 GridPack battery positions Altech as a frontrunner in the grid storage market,
offering a technologically advanced and commercially viable solution to meet the
industry's evolving needs.
ABS 1000 - Grid Pack
18 Battery Pack, with controller BMS
Open standard high cube 20ft Container
20ft high cube container 2.4m x 5.9m x <27m
<17t
600 V DC
410 V DC (min) to 670 V DC (max)
100Ah Nominal
cont. 25 A / trans. 33A
min. 270° C - max. 350° C
~40° C to +60° C
IP65, CE
Arrangement:
Dimensions:
Delivery:
Weight:
Nom. Voltage:
Voltage Range:
Current Capacity:
Discharge Current:
Internal Ops Temp.:
Ambient Ops Temp.:
IP Rating:
Nominal Energy Capacity: 1MWh / nominal 1,08 MWh
Operational SoC Range: 15% - 95% (80%)
C-Rate:
C-Rate Power Mode:
24h Cycle Capacity:
Cycle per day:
Design Life:
Warranty:
0.16C - 0.33C bi-directional
0.5C for 15 Minutes
Yes, continuous without interruptions
up to 3 @ 80%
>15 years
5 years or 5000 cycles
* Levelised energy storage cost is the
overall costs including capital,
maintenance and operating cost over
the life of the battery
GridPack USP - Macro Parameters
Ÿ Safe, non-flammable, zero fire and explosive hazards
Ÿ No location limitation
Ÿ Stackable up to 3 GridPacks
Ÿ Operates in any climate without external thermal management, forced cooking
Ÿ Negligible maintenance costs
Ÿ Plug and play ready to operate
Ÿ High availability (>99%)
Ÿ Battery may be idle for any period of time and be restarted without capability loss
Ÿ Round-trip efficiency of avg. 90% (DC)
Ÿ Lowest levelised energy storage costs
Ÿ Can be shipped fully assembled
The Altech GridPacks have been engineered to ensure complete protection from both
dust and any external environments. This means that there is no need for any
additional shelters or buildings to house the Altech GridPack batteries, and they can be
safely installed outdoors in any weather conditions. The Altech GridPacks will be
constructed using a sea container design, which facilitates their easy transportation by
sea or road to the installation site, as well as ensuring simple installation.
Unlike other mega battery pack designs on the market, these GridPacks can be
stacked on top of each other. The ability of the GridPacks to be stacked minimises the
battery footprint and permits easy scalability to meet any energy storage requirements.
The stackable feature, coupled with the "plug and play" design, makes the GridPacks
the obvious choice for BESS solutions to meet any future energy storage requirements.
The Altech GridPacks are also designed without the requirement for any moving parts
such as cooling fans, which are typically found in lithium-ion battery mega packs. This
is a notable advantage, as end-users have raised concerns about the noise generated
by mega packs, preventing them from being placed near residential areas. With the
absence of any moving parts, the Altech GridPacks are practically maintenance-free
and completely noise-free in operation, making them an ideal solution for remote and
noise-sensitive environments.
Schwarze Pumpe
Industrial Site
Saxony, Germany
Location of
~14Ha Industrial Site
Saxony, Germany
SILUMINA ANODES PROJECT
TM
TM
The Silumina Anodes project involves combining silicon and graphite, and then
coating this composite product with a nanometre layer of high-purity alumina, for
inclusion in lithium battery anodes to increase lithium battery capacity.
Altech advanced this technology during the year and continues to progress with
commercialisation of the product.
The Company has made significant progress in incorporating high-capacity high-purity
alumina-coated silicon and graphite in lithium-ion batteries, and has previously
concluded a Preliminary Feasibility Study for the construction of a 10,000tpa Silumina
Anodes plant in Saxony, Germany, that boasts an impressive NPV of US$507M.
As Altech races to bring its patented technology to market, it is nearing completing
construction of a pilot plant adjacent to the proposed project site to facilitate the
qualification process for its Silumina Anodes product.
TM
TM
A YouTube video update of the pilot plant can be viewed at
https://youtu.be/lRWCDLx6UTI
SILUMINA ANODES PILOT PLANT CONSTRUCTION
TM
Altech, further to executing an Engineering, Procurement and Construction Contract
with Küttner GmbH & Co, is nearing completion of construction of the Silumina
Anodes pilot plant that will produce 120kg per day (~37,000 kg per year) of the
Silumina Anodes product for product qualification with end users, to assist in securing
an offtake agreement.
TM
TM
The pilot plant will also provide optimised inputs for the full-scale 10,000tpa commercial
plant design, and will produce customer samples for testing and qualification.
TM
The construction of the Silumina Anodes pilot plant is progressing well and according
to plan. The front end of the pilot plant, also known as the wet circuit, is making
excellent progress, with power supply, laboratory, building modifications, and front-end
wet circuit infrastructure completed. The pilot plant is located in an existing building in
Dock3 at Schwarze Pumpe, Germany, and the necessary building modifications and
electrical panel infrastructure construction have been completed.
Silumina An desTM
The on-site laboratory has been established and is going through commissioning.
This development is a significant step towards enabling Altech to conduct necessary
testing and analysis of the Silumina Anodes product. Additionally, the Company has
established an on-site glove box, which will facilitate the production of lithium-ion
battery coin half cells. These half cells will be used to test the performance of the
Silumina Anodes produced from the pilot plant. This is a crucial component of the
product qualification process and will provide important data on the product's
performance characteristics.
TM
TM
While fabrication of the back-end of the pilot plant, including the coating equipment,
dryer, and calciner (with longer lead times), is currently underway in South Africa
and Europe, Altech is expediting the production of some back-end items like silicon
carbide linings. The Company anticipates that the final items will be installed and
commissioned by end of Q4 2023.
SILUMINA ANODES FULL SCALE PLANT DEVELOPMENT
TM
Whilst the pilot plant is being constructed, Altech continues to move forward with
the development of its full-scale plant to be constructed in Germany to produce
TM
Silumina Anodes .
TM
An outstanding Preliminary Feasibility Study (“PFS”) for a full-scale plant to produce
10,000tpa of Silumina Anodes has been completed. The PFS included a low capital
cost of US$95 million, a pre-tax Net Present Value of US$507 million and an attractive
Internal Rate of Return (IRR) of 40%. A summary of the key financial metrics within the
PFS is set out in the table below. A Definitive Feasibility Study in relation to the full
scale plant is well underway.
Altech has acquired an ~14Ha industrial site in Saxony, Germany, to house a full-scale
plant for its Silumina Anodes project. Altech believes that the site is the ideal location
for a 10,000tpa HPA battery materials coating plant, as it is strategically located to
supply the European lithium-ion battery and EV markets.
TM
US Per Annum
Annual Production 10,000
tonnes
Exchange Rate
0.83 EUR/USD
Project Capex
95
million
Opex p.a.
NPV
Discount Rate
Payback (real)
IRR
Revenue p.a.
EBITDA p.a.
122 million
507 million
8.0
3.1
40
%
years
%
185 million
63
million
The battery materials coating plant project was awarded the “Medium Green” rating
from the independent Centre of International Climate and Environmental Research
(CICERO), based on the project achieving an environmentally sustainable design, as
well as lower CO emissions of between ~19% and ~52%. This positive project
evaluation, formally termed a “Green Bond Second Opinion”, confirms that the project
would be suitable for future green bond financing.
2
CICERO were engaged by Altech as part of its PFS to conduct the independent
evaluation of the proposed battery materials coating plant. The plant is being designed
with a specific focus on minimising environmental impact, and in accordance with
prevailing German, European and International environmental standards.
In determining the overall project framework rating of “Medium Green”, CICERO
assessed the proposed governance procedures and transparency as “Good” and
confirmed that the project aligns with all green bond principles. In assessing the
proposed plant design and coating process, CICERO noted “The plant has near zero
Scope 1 and 2 emissions as the plant's processes, including steam generation, are fully
electrified, and it will use renewable electricity sourced from on- site solar panels and
renewable energy certificates”.
CICERO's independent assessment of Altech’s proposed battery materials coating
plant, and its suitability for possible future green bond financing, is an important
inclusion for the current preliminary feasibility study – and certainly adds credibility to
this proposed project.
®
CICERO
Medium Green
Altech has secured feedstock supplies from world leading European suppliers of high-
quality materials, being SGL Carbon for graphite and Ferroglobe for silicon. During the
recent crisis in Europe forcing supply chain pressures and rising energy prices, it has
demonstrated the importance of European material supply for European battery and EV
makers. The manufacturing supply risks are becoming increasingly evident, and more
focus will be placed on European supply.
Altech has also executed a Non-Disclosure Agreement with two German automakers
and one European battery maker.
FRAUNHOFER STRATEGIC PARTNERSHIP WITH SILUMINA ANODES
TM
A strategic partnership has also been entered into with world class German battery
research and development institute Fraunhofer for Silumina Anodes qualification.
TM
The independent performance testing and qualification of the Silumina Anodes
product by Fraunhofer will fast track and assist with early market entry. The strategic
partnership continues to develop the technology.
TM
NEW COMPANY NAME
Altech is pleased to advise that, following shareholder approval on 21 February 2023 to
change the name of the Company to Altech Batteries Limited, Altech received formal
approval from the Australian Securities & Investments Commission that the change of
name to Altech Batteries Ltd was officially registered.
ALTECH BATTERIES INTERACTIVE
INVESTOR HUB
Engage with Altech directly by asking questions, watching video summaries and seeing
what other shareholders have to say about this, as well as past announcements, at our
Investor Hub https://investorhub.altechgroup.com
Board of Directors Visit to Schwarze Pumpe Industrial Park, Saxony, Germany
CORPORATE INFORMATION
Altech Batteries Limited
ABN 45 125 301 206
DIRECTORS
Luke Atkins
Ignatius Tan
Daniel Tenardi
Peter Bailey
Tunku Yaacob Khyra
Uwe Ahrens
Hansjoerg Plaggemars Non-executive Director
Chairman
Managing Director
Non-executive Director
Non-executive Director
Non-executive Director
Alternate Director
CHIEF FINANCIAL OFFICER &
COMPANY SECRETARY
Martin Stein
REGISTERED OFFICE &
PRINCIPAL PLACE OF BUSINESS
Suite 8, 295 Rokeby Road,
Subiaco, Western Australia 6008
Phone: +618 6168 1555
Email: info@altechgroup.com
Website: www.altechgroup.com
AUDITOR
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade,
Perth, Western Australia, 6000
SHARE REGISTRY
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
(Int): +61 2 9698 5414
Facsimile: +61 2 8583 3040
STOCK EXCHANGE LISTING
The Company is listed on the
Australian Securities Exchange
Limited (ASX) and its
shares are also quoted on the
Frankfurt Stock Exchange
(Börse Frankfurt) (FWB)
Home Exchange: Perth
ASX Code: ATC
Frankfurt Stock Exchange:
FWB Code: A3Y
COMPETENT PERSONS STATEMENT
The information in this report that relates to exploration results is based on information compiled by Jeff
Randell, a Competent Person, who is a Member of the Australian Institute of Geoscientists. Mr Randell is
a Senior Consultant of Geos Mining and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Randell consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements which are identified by words such as
'anticipates', 'forecasts', 'may', 'will', 'could', 'believes', 'estimates', 'targets', 'expects', 'plan' or 'intends'
and other similar words that involve risks and uncertainties. Indications of, and guidelines or outlook on,
future earnings, distributions or financial position or performance and targets, estimates and assumptions
in respect of production, prices, operating costs, results, capital expenditures, reserves and resources
are also forward- looking statements. These statements are based on an assessment of present
economic and operating conditions, and on a number of assumptions and estimates regarding future
events and actions that, while considered reasonable as at the date of this announcement and are
expected to take place, are inherently subject to significant technical, business, economic, competitive,
political and social uncertainties and contingencies. Such forward-looking statements are not guarantees
of future performance and involve known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of the Company, the directors and management.
We cannot and do not give any assurance that the results, performance or achievements expressed or
implied by the forward-looking statements contained in this announcement will actually occur and
readers are cautioned not to place undue reliance on these forward-looking statements. These forward-
looking statements are subject to various risk factors that could cause actual events or results to differ
materially from the events or results estimated, expressed or anticipated in these statements.
The Green Bonds referred to this report is indicative in nature; are non- binding; and contain the general
terms of a proposed transaction. Any issuance is contingent upon all internal approvals of the Company
and structuring agent as well as the completion of detailed due diligence (including but not limited to
legal and technical due diligence) and legally binding documentation. There is no certainty that the
Green Bonds will be approved or a transaction concluded based on what is contemplated in this report.
The Company makes no representations or warranties whatsoever as to the outcome of the Green
Bonds process.
Altech Batteries
Limited
www.altechgroup.com
(formerly Altech Chemicals Limited)
ABN 45 125 301 206
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2023
CONTENTS
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
PAGE
1
17
18
19
20
21
22
48
49
CORPORATE DIRECTORY
DIRECTORS
Luke Atkins Chairman
Ignatius Tan Managing Director
Daniel Tenardi Non-Executive Director
Peter Bailey Non-Executive Director
Tunku Yaacob Khyra Non-Executive Director
Hansjoerg Plaggemars Non-Executive Director
Uwe Ahrens Alternate Director
(for Tunku Yaacob Khyra)
CHIEF FINANCIAL OFFICER & COMPANY SECRETARY
Martin Stein
REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS
Suite 8, 295 Rokeby Road,
Subiaco, Western Australia, 6008
Phone:
Email:
Website:
+61 8 6168 1555
info@altechgroup.com
www.altechgroup.com
AUDITOR
Moore Australia Audit (WA)
Level 15, Exchange Tower
2 The Esplanade
Perth, WA 6000
SHARE REGISTRY
Automic Pty Ltd
Level 5, 191 St Georges Terrace
Perth, WA 6000
Telephone: 1300 288 664
+61 2 9698 5414
STOCK EXCHANGE LISTING
Securities of the Company are quoted on the Australian
Securities Exchange Limited (ASX) and its shares are also
quoted on the Frankfurt Stock Exchange (Börse Frankfurt)
(FWB)
Home Exchange:
ASX Code: ATC (shares)
Perth
FWB Code:
A3Y
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
The directors present their report, together with the financial statements of the Group, being the Company and its controlled entities, for
the financial year ended 30 June 2023.
DIRECTORS
The names and details of the directors of Altech Batteries Limited during the financial year and until the date of this report are:
Ignatius (Iggy) Tan B.Sc, MBA, GAICD
Managing Director
Appointed: 25 August 2014
Mr Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects
such as capital raisings, funding, construction, start-ups and operations. Mr Tan has over 30 years chemical and mining experience and
been an executive director of a number of ASX-listed companies. He holds a Master of Business Administration from the University of
Southern Cross, a Bachelor of Science from the University of Western Australia and is a Graduate of the Australian Institute of Company
Directors.
Mr Tan became the Company's Managing Director in August 2014. Having been involved in the commissioning and start-up of seven
resource projects in Australia and overseas, including high purity technology projects. Mr Tan is an accomplished project builder and
developer. Mr Tan previously held Managing Director positions at ASX listed Kogi Iron Limited (ASX: KFE) (23-08-2013 to 1-05-2014)
and Galaxy Resources Limited (ASX: GXY) (11-11-2011 to 11-06-2013). Mr Tan is currently Non-Executive Chair of ASX listed Lithium
Universe Limited (ASX: LU7) (from 10/08/2023).
Luke Frederick Atkins LLB
Non-Executive Chairman
Appointed: 8 May 2007
A highly qualified mining executive and a lawyer by profession, Mr Atkins has had extensive experience in capital raisings and has held a
number of executive and non-executive directorships of private and publicly listed companies including a number of mining and exploration
companies.
Mr Atkins is the co-founder and is currently a Non-Executive Director of ASX-listed Australian Silica Quartz Group Limited (formally Bauxite
Resources Limited) (ASX: ASQ). Mr Atkins brings to the board extensive experience in the areas of mining, exploration and corporate
governance.
Peter Bailey
Independent Non-Executive Director
Appointed: 8 June 2012
Mr Bailey is a highly experienced and qualified engineer with over 40 years of experience in the mining and industrial chemical production
industry. Mr Bailey spent the majority of his career in the alumina chemicals and alumina refining industries. He was previously chief
executive officer at Sherwin Alumina, an alumina refinery located in Texas, USA.
Prior to Sherwin, in 1998 Mr Bailey was president of Alcoa Worldwide Chemicals’ industrial chemicals department. He was responsible
for managing the company’s 13 alumina plants that were located in eight countries, with combined annual revenue of approximately
US$700 million. In 1996, Mr Bailey was president of Alcoa Bauxite and Alumina and was responsible for 8 alumina plants outside of
Australia. He was also the Chairman of the Alcoa Bauxite joint venture in Guinea, Africa. He has a solid business network throughout the
global alumina industry. Mr Bailey has not held any other listed company directorships in the past 3 years.
Daniel Lewis Tenardi
Non-Executive Director
Appointed: 17 September 2009
Mr Tenardi is a highly experienced global resource executive with over 40 years of experience in the mining and processing sectors.
During his extensive career, Mr Tenardi spent 13 years at Alcoa’s alumina refinery in Kwinana as well as the company’s bauxite mines in
the Darling Ranges of Western Australia.
Mr Tenardi was the founding Managing Director of Bauxite Resources Limited (since renamed Australian Silica Quartz Group Limited
(ASX: ASQ)), where he led the rapid growth of the company from its initial exploration phase, expansion of land holdings, to the
commencement of trial shipments of ore and securing supportive strategic partnerships with key Chinese investors. Having built strong
networks with industry leaders in the alumina sector, Mr Tenardi provides valuable alumina-specific industry experience. Mr Tenardi
previously served as a Non-Executive independent director of Australian iron ore producer, Grange Resources Limited (ASX: GRR), was
CEO of Ngarda Civil & Mining and has also held senior executive and operational roles at CITIC Pacific, Alcoa, Roche Mining and Rio
Tinto.
- 1 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
Tunku Yaacob Khyra B.Sc (Hons), CA
Non-Executive Director
Appointed: 22 October 2015
Tunku Yaacob Khyra is the executive Chairman of the Melewar Khyra Group of Companies (Melewar), a Malaysian-based diversified
financial and industrial services group. He is the major owner and shareholder of Melewar and sits on the boards of Khyra Legacy Berhad,
Mycron Steel Berhad, MAA Group Berhad, Melewar Industrial Group Berhad, Ithmaar Bank B.S.C. (listed on Bahrain Stock Exchange)
and several other private companies.
Tunku Yaacob graduated with a Bachelor of Science (Hons) Degree in Economics and Accounting from City University, London. An
accountant by training, he is a Fellow of the Institute of Chartered Accountants in England & Wales and a member of the Malaysian
Institute of Accountants. He started his career as an Auditor with Price Waterhouse, London from 1982 to 1985 and subsequently joined
Price Waterhouse Kuala Lumpur from 1986 to 1987. He joined Malaysian Assurance Alliance Berhad in 1987 and retired as its Chief
Executive Officer in 1999. Tunku Yaacob has not held any other Australian listed company directorships in the last 3 years.
Hansjoerg Plaggemars
Non-Executive Director
Appointed: 19 August 2020
Mr Plaggemars was a previous member of the board of Delphi Unternehmensberatung AG and Deutsche Balaton AG (ATC major
shareholder) and currently acts as their representative. Mr Plaggemars is based in Heidelberg, Germany and is an experienced company
director and manager. He studied business administration at the University of Bamberg from 1990 to 1995.
Mr Plaggemars has been a management consultant since June 2017, and is a board member of various companies within the scope of
projects. Mr Plaggemars is currently a member of the management board of Frankfurt Stock Exchange listed Altech Advanced Materials
AG. Mr Plaggemars also currently serves as a non-executive director of ASX listed Geopacific Resources Limited, Wiluna Mining
Corporation, Spartan Resources Limited, PNX Metals Limited, Kin Mining Limited and Azure Minerals Limited.
Uwe Ahrens
Alternate Non-Executive Director (for Tunku Yaacob Khyra)
Appointed: 22 October 2015
Mr Ahrens is executive director of Melewar Industrial Group Berhad and Managing Director of Melewar Integrated Engineering Sdn Bhd.
He also sits on the board of several other private limited companies. Mr Ahrens holds Masters degrees in both Mechanical Engineering
and Business Administration from the Technical University Darmstadt, Germany. Upon graduation, Mr Ahrens joined the international
engineering and industrial plant supplier, KOCH Transporttechnik GmbH in Germany, now belonging to FLSmidth Group, where he held
a senior management position for 12 years, working predominantly in Germany, USA and South Africa. Mr Ahrens has not held any other
Australian listed company directorships in the past 3 years. Mr Ahrens is the Alternate Non-Executive Director for Tunku Yaacob Khyra.
CHIEF FINANCIAL OFFICER & COMPANY SECRETARY
Martin Stein Chartered Accountant, B. Bus, Chartered Secretary
Chief Financial Officer and Company Secretary
Appointed: Chief Financial Officer 1 November 2021 and Company Secretary 9 March 2022
Mr Stein is a finance and corporate executive with over 20 years’ of international experience. Mr Stein has held the positions of Chief
Financial Officer and Company Secretary in several ASX listed companies. In these roles, Mr Stein has been responsible for all aspects
of capital raising, financial management, shareholder liaison and corporate governance. Prior to this, Mr Stein held senior positions with
Anvil Mining Limited as well as with PwC at its London office. Whilst with PwC, Mr Stein provided corporate services for companies listed
on the LSE, NYSE and AIM, including Colgate-Palmolive, Sony, Heinz, DHL Express and Bosch.
Shane Volk B.Bus (Accounting), Grad Dip (Applied Corp. Gov.), AGIA
Company Secretary
Appointed: 12 November 2014 , Resigned 19 October 2022
Mr Volk is an experienced company secretary and chief financial officer having served in these positions for numerous ASX listed
companies since 2007. His experience also includes senior management roles in the resources industry (gold and coal) in Indonesia,
Papua New Guinea and Australia, with a variety of international resources companies. Mr Volk is a member of the Governance Institute
of Australia and has in excess of 30 years of experience in the mining and resources industries.
- 2 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were:
- Executing a Joint Venture Shareholders’ Agreement with world-leading German battery institute Fraunhofer IKTS (“Fraunhofer”) to
commercialise Fraunhofer’s revolutionary battery.
- Commenced preparation of a Definitive Feasibility Study in relation to a 100 MWh plant to produce CERENERGY® batteries, to be
constructed on Altech’s land in Germany.
- Designed and launched the CERENERGY® Sodium Chloride Solid State 60 KWh battery pack (ABS60) designed for the renewable
energy and grid storage market.
- Designed and launched the CERENERGY® Sodium Chloride Solid State 1.0 MWh GridPack (ABS1000) destined for the renewable
energy and grid storage market.
- Announced the production and fabrication of two prototypes of the 60 KWh (ABS60) battery pack at the Fraunhofer facility in
Hermsdorf, Germany. Once completed, the battery packs will undergo cycling testing under extreme conditions.
- Released preliminary battery specifications for the CERENERGY® 60 KWh (ABS60) and 1 MWh (ABS1000) GridPack battery
products.
- Commenced preparation of a Definitive Feasibility Study in relation to a 10,000tpa plant to produce the Silumina AnodesTM product,
to be constructed on Altech’s land in Germany.
- Expanded the Research and Development Laboratories in Perth, Western Australia to allow the production of pouch cell size
batteries to proceed to the next stage of the Silumina AnodesTM Project.
- Executed a framework agreement with leading German institute Fraunhofer as a strategic partner to expedite the testing and
qualification process for the Silumina AnodesTM product.
- Continued construction of the Silumina AnodesTM pilot plant in Saxony, Germany, to produce 120kg per day of the product to provide
to potential end users for their internal testing, with the aim of securing an offtake agreement.
- Changed name to Altech Batteries Limited. The new name reflects the vision of Altech to meet a battery storage future as the world
transitions to the electrification of energy solutions.
FINANCIAL POSITION & RESULTS OF OPERATIONS
The financial results of the Group for the financial year ended 30 June 2023 are:
Cash and cash equivalents
Net Assets
Revenue
Net profit /(loss) after tax
Profit / (Loss) per share
Dividend
2023
$
3,571,159
33,875,059
296,456
(61,779,873)
(0.060)
-
2022
$
10,912,939
97,537,643
468,659
(5,802,429)
(0.004)
-
DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current year.
REVIEW OF OPERATIONS AND ACTIVITIES
The year ended 30 June 2023 was prosperous for Altech, as it executed a Joint Venture Shareholders’ Agreement with world-leading
German battery institute Fraunhofer to commercialise Fraunhofer’s revolutionary CERENERGY® Sodium Chloride Solid State (SCSS)
Battery. In addition to this, the Company successfully moved forward with its patented Silumina AnodesTM technology.
CERENERGY® Project
On 14 September 2022, Altech executed a Shareholders’ Agreement to commercialise Fraunhofer’s revolutionary CERENERGY® Sodium
Chloride Solid State (SCSS) Battery. Altech believes that CERENERGY® batteries are the game-changing grid storage alternative to
lithium-ion batteries. CERENERGY® batteries are fire and explosion-proof, have a life span of more than 15 years and operate in extreme
cold and desert climates. The battery technology uses table salt and nickel - is lithium-free; cobalt-free; graphite-free; and copper-free,
eliminating exposure to critical metal price rises and supply chain concerns.
For more information on the advantages of CERENERGY® batteries watch the following YouTube video https://youtu.be/UBwxxgEJHvo
- 3 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
The CERENERGY® SCSS technology has been developed by Fraunhofer over the last eight years and has revolutionised previous
technology, allowing higher energy capacity and lower production costs. SCSS-type batteries, in terms of capacity, have already been
successfully tested in stationary battery modules. The Fraunhofer SCSS batteries are in the final phase of product testing and ready to
commercialise. Fraunhofer has spent in the region of EUR 35 million on research & development and operates a EUR 25 million pilot plant
in Hermsdorf, Germany. The final CERENERGY® battery modules, are specially designed for the grid storage market and have been
undergoing extensive performance testing in Germany. These modules are designed to fit in racks housed in sea containers that can be
deployed for grid storage.
Fraunhofer had been searching for an entrepreneurial partner that has German land available, has access to funding, is a builder of
projects, has battery background, and has technology in alumina used in ceramics. Altech fitted the criteria, and the Joint Venture
Shareholders’ Agreement was executed. Altech owns 56.25% of the project with Fraunhofer 25% free carried. The intellectual property
will be licensed exclusively to the joint venture.
The joint venture partners have elected to develop a 100 MWh SCSS battery plant (Train 1) on Altech’s site in Saxony, Germany. The
target market for this project will specifically focus on the grid (stationary) energy storage market which is expected to grow by 28% CAGR
(Compound Annual Growth Rate) in the coming decades. The global grid energy storage market is expected to grow from USD 4.4 billion
in 2022 to USD 15.1 billion by 2027. Or further out, the market is expected to grow from 20 GW in 2020 to over 3,000 GW by 2050. Altech
believes that SCSS batteries can provide high security, at low acquisition and operating costs, for the stationary energy storage market.
The proposed battery plant will produce 100 SCSS GridPacks per annum, rated at 1 MWh each. Fraunhofer has estimated that the total
cost of production for CERENERGY® batteries will be 40%-50% cheaper than lithium-ion batteries.
The joint venture partners have commenced the planning process for the Definitive Feasibility Study required for the commercialisation
process. Once the Train 1 (100 MWh) plant is built and operating, the longer-term vision for the joint venture is to construct additional
trains or a Gigawatt battery facility.
Silumina AnodesTM Project
In relation to the Silumina AnodesTM project, which involves combining silicon and graphite and coating this composite product with a
nanometre layer of high-purity alumina for inclusion in lithium battery anodes, Altech advanced this technology throughout the year.
Altech continues to commercialise the Silumina AnodesTM project in Saxony, Germany, and has achieved the following exciting milestones
in relation to the construction of a pilot plant for the product.
-
-
-
-
Nearing finalisation of construction of the Silumina AnodesTM Pilot Plant that will produce 120kg per day (~37,000 kg per year) of
Silumina AnodesTM product for product qualification with end users, that will assist in securing an offtake agreement.
Pilot plant to provide optimised inputs for 10,000tpa commercial plant design, and produce customer samples for testing and
qualification.
Strategic partnership continues with world class German battery research and development institute Fraunhofer IKTS for Silumina
AnodesTM qualification. The independent performance testing and qualification of Silumina AnodesTM product by Fraunhofer IKTS
will assist early market entry.
Engaging and building relationships with Saxony State authorities for support.
Whilst the pilot plant construction is being finalised, Altech continues to move forward with the development of a full-scale plant to be
constructed in Germany to produce the Silumina AnodesTM product. Altech continues to move forward with preparation of a Definitive
Feasibility Study for the Silumina AnodesTM Battery Materials Project to produce 10,000tpa of Silumina AnodesTM.
Johor HPA Project
The site for the production facility in Johor is currently on care and maintenance.
- 4 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
Risk Management
Due to its size and scope of operations, the Group does not have a dedicated Risk Management Committee. Rather, the Company’s board
as a whole is responsible for the oversight of the Group’s risk management and control framework. Responsibility for control and risk
management is delegated to the appropriate level of management within the Group, with the Managing Director having ultimate
responsibility to the board for the risk management and control framework.
The Managing Director highlights areas of significant business risk and the board has arrangements in place whereby it monitors risk
management, including the periodic reporting to the board in respect of operations and the financial position of the Company.
The Company does not have a dedicated internal audit function, however it works closely with its external auditors and management for
the evaluation and continual improvement of the effectiveness of its risk management and internal control procedures. The Board has
established an Audit Committee.
EMPLOYEES
The Group had 19 permanent employees as at 30 June 2023 (2022: 11 permanent employees).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the directors, there were no other significant changes in the state of affairs of the Group that occurred during the financial
year under review.
EVENTS SUBSEQUENT TO BALANCE DATE
Capital Raised
On 18 July 2023 the Company issued a Prospectus in relation to a pro-rata non-renounceable entitlement issue of one (1) Share for every
eight (8) Shares held by those Shareholders registered at the Record Date at an issue price of $0.07 per Share to raise up to $12,859,201.
On 21 July 2023, the Company issued 42,857,142 fully paid ordinary shares to professional and sophisticated investors at $0.07 per share,
raising gross proceeds from the share placement of $3.0 million.
On 11 August 2023, the Company issued 147,145,801 fully paid ordinary shares at $0.07 per share, raising gross proceeds of $10.3
million. The shares were issued as part of the pro-rata non-renounceable entitlement issue pursuant to the Prospectus dated 18 July 2023.
On 17 August 2023, the Company issued 29,414,218 fully paid ordinary shares at $0.07 per share, raising gross proceeds of $2.06 million.
The shares were issued as part of the shortfall to the pro-rata non-renounceable entitlement issue pursuant to the Prospectus dated 18
July 2023. In addition, the Company intends to issue an additional 7,142,857 shortfall fully paid ordinary shares at $0.07 per share, to
raise gross proceeds of $0.5 million. The Company will issue these additional 7,142,857 shortfall shares subject to receiving shareholder
approval at the Annual General Meeting to be held on 27 October 2023.
Further, there has not arisen since the end of the financial year any other item, transaction or event of a material and unusual nature likely,
in the opinion of the directors of the Company to affect substantially the operations of the Group, the results of those operations or the
state of affairs of the Group in subsequent financial years.
OPTIONS OVER UNISSUED CAPITAL
Since 30 June 2022 and up until the date of this report the Company had not issued any new options (2022: nil).
There are no options outstanding at the date of this report. Information in relation to this is available on both the ASX and Company
website.
- 5 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
PERFORMANCE RIGHTS OVER UNISSUED CAPITAL
As at the date of this report unissued ordinary shares of the Company subject to performance rights are:
Performance Right
Series
Rights
outstanding
Exercise
Price
Rights
Vested
Rights not
Vested
Expiry Date
Managing Director
Managing Director
Managing Director
Non-executive Directors
Non-executive Directors
Employees
Employees
Employees
5,000,000
10,000,000
15,000,000
6,000,000
27,000,000
500,000
4,750,000
51,600,000
Total
119,850,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
5,000,000
10,000,000
15,000,000
6,000,000
27,000,000
500,000
4,750,000
51,600,000
119,850,000
11/6/25
29/11/26
11/5/28
26/11/25
11/5/28
27/9/25
31/1/29
11/5/28
Details of performance rights issued to the directors and Key Management Personnel of the Company during the period of this report are
contained in the Remuneration Report.
The above performance rights represent unissued ordinary shares of the Company under option as at the date of this report. These
performance rights do not entitle the holder to participate in any share issue of the Company. The holders of performance rights are not
entitled to any voting rights until the performance rights are exercised into ordinary shares, which is only possible if the vesting conditions
attached to the performance rights have been attainted.
The names of all persons who currently hold performance rights granted are entered in a register kept by the Company pursuant to Section
168(1) of the Corporations Act 2001 and the register may be inspected free of charge.
CORPORATE STRUCTURE
Altech Batteries Limited (ACN 125 301 206) is a Company limited by shares that was incorporated on 8 May 2007 and is domiciled in
Australia.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Group has what it believes to be a significant opportunity for the Company, with continued commercialisation of the CERENERGY®
Sodium Chloride Solid State (SCSS) Battery Project in Saxony, Germany. To this extent, Altech continues with the Definitive Feasibility
Study (“DFS”) in relation to the 100 MWh plant, planned to be constructed on Altech’s land. Once the DFS is finalised, and subject to
satisfactory results, the Company aims to secure an offtake agreement and raise the required capital to construct the plant. The joint
venture with Fraunhofer further allows for the commercialisation of the CERENERGY® battery through increasing production to gigawatts.
The Group also has a significant opportunity with the Silumina AnodesTM Battery Materials Project in Saxony, Germany. Altech will continue
with the development and commercialisation of the Silumina AnodesTM project. To this extent, Altech will continue with the construction of
the pilot plant to produce 120kg per day of Silumina AnodesTM for distribution to potential customers, with the aim being to secure an
offtake agreement. Furthermore, Altech aims to finalise the Definitive Feasibility Study in relation to a full-scale 10,000tpa Silumina
AnodesTM plant.
In addition, work continues at the dedicated research and development laboratory in Western Australia, with Phase 2 R&D work striving
to attain Silumina AnodesTM battery capacity retention beyond the current 30%.
- 6 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
Development Risk
The proposed 100 MWh battery plant, as well as 10,000tpa battery materials plant, construction and operation activities is a high-risk
undertaking.
Likewise, the proposed mining, beneficiation and HPA plant construction and operation activities are all high-risk undertakings. The
Company is on a proposed development path and in 2015 completed a Bankable Feasibility Study (BFS) that determined the technical
and commercial viability for the construction and operation of a 4,000tpa high purity alumina (HPA) processing plant at Tanjung Langsat,
Johor, Malaysia, and an associated kaolin quarry and container loading facility at Meckering, Western Australia to provide feedstock for
the HPA plant. The BFS was updated in March 2016 and this update confirmed the technical and commercial viability of the project
compared to the original study. In October 2017, the Company published a Final Investment Decision study (FIDS) for the project based
on an increased plant output of 4,500tpa, and in February 2018 announced that it had executed definitive terms for a US$190 million senior
project finance debt facility with German government owned KfW IPEX-Bank. However, there is no certainty that the financing, mining,
construction and operation of the abovementioned operations and facilities will be able to proceed as envisaged, and if they do proceed
as envisaged – that the operations will function as expected in the FIDS (or any subsequent study update) and deliver the results that were
foreshadowed. Amongst other things, equity and additional debt financing at terms acceptable to the Company and the senior lender (KfW
IPEX-Bank) must be secured, capital cost and operating cost estimates and assumptions must be confirmed and various design,
operational, processing, supply chain, market, regulatory, industrial and development risks, amongst others, will need to be identified and
successfully managed to deliver the development and operating outcomes envisaged in the FIDS and any subsequent study updates.
Inescapably, the FIDS and subsequent study updates are detailed studies of what is possible based on a combination of detailed
information on hand at the time, and a series of professional judgements, assumptions and estimates at the time; inevitably situations and
circumstances change, judgements, assumptions and estimates are different from what actually transpires, debt and equity markets
constantly change and as a result actual outcomes will almost certainly vary from those contemplated in a FIDS and any subsequent study
updates.
MINERAL RESOURCE STATEMENT AND MINERAL RESOURCE ORE RESERVE ESTIMATION GOVERNANCE STATEMENT
Altech Batteries Limited ensures that its Mineral Resource and Ore Reserve estimates are subject to appropriate levels of governance
and internal controls. Mineral Resource and Ore Reserve estimation procedures are well established and are subject to periodic systematic
peer and technical review by competent and qualified professionals.
Altech reviews and reports its Mineral Resource and Ore Reserve estimates at a minimum on an annual basis and in accordance with the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code) 2012 Edition. The most
recent annual review for the year ended 30 June 2023 has not identified any material issues. The table below sets out the Mineral
Resources and Ore Reserves comparatives as at 30 June 2023 and 30 June 2022.
Meckering kaolin (aluminous clay) deposit
Mineral Resource estimate (JORC 2012)
as at 30 June 2023
Mineral Resource estimate (JORC 2012)
as at 30 June 2022
In Fraction < 300µ
Classification
Measured
Indicated
Inferred
Tonnes
1,500,000
3,300,000
7,900,000
Al2 O3
%
30.0
30.0
29.1
Fe2O3
%
1.01
0.97
1.0
Total Mineral Resources*
12,700,000
29.5
0.99
TiO2
%
0.62
0.61
0.63
0.62
Yield
%
69
69
69
Tonnes
1,500,000
3,300,000
7,900,000
69
12,700,000
* rounded to the nearest one hundred thousand tonnes
Notes:
1.
2.
The minus 45 micron percentage was measured by wet screening
Brightness is the ISO brightness of the minus 45 micron material
In Fraction < 300µ
Al2 O3
%
Fe2O3
%
TiO2
%
30.0
30.0
29.1
29.5
1.01
0.97
1.0
0.99
0.62
0.61
0.63
0.62
Yield
%
69
69
69
69
Mineral Reserve estimate (JORC 2012)
as at 30 June 2023
Mineral Reserve estimate (JORC 2012)
as at 30 June 2022
Classification
Proven
Probable
Tonnes
454,000
770,000
Total Proven & Probable*
1,224,000
* rounded to the nearest one thousand tonnes
Al2 O3
%
Fe2O3
%
TiO2
%
30.1
30.0
30.0
0.9
0.9
0.9
0.6
0.6
0.6
K2O
%
0.5
0.4
0.4
Yield
%
69
71
70
Tonnes
454,000
770,000
1,224,000
Al2 O3
%
Fe2O3
%
TiO2
%
30.1
30.0
30.0
0.9
0.9
0.9
0.6
0.6
0.6
K2O
%
0.5
0.4
0.4
Yield
%
69
71
70
- 7 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
Competent Persons Statement – Meckering kaolin deposit Mineral Resource estimate
The information in this report that relates to Mineral Resources for the Company’s Meckering kaolin (aluminous clay) deposit is based on information compiled by Ms Sue
Border, who is a Fellow of AusIMM and of AIG and is a consultant to the Company and is employed by Geos Mining mineral consultants. Ms Border has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that she is undertaking to qualify as a Competent Person as defined
in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. The information contained in this report pertaining
to the Mineral Resource estimate as at 30 June 2023 is extracted from the ASX announcement entitled “Altech updates kaolin resource for its Meckering Mining Lease”
dated 8 July 2016 and the ASX announcement entitled “Maiden Ore Reserve at Altech’s Meckering Kaolin Deposit” dated 11 October 2016. Both announcements are
available to view on the Company web site www.altechgroup.com. The Company confirms that there are no material changes to the Company’s Mineral Resources since
its ASX announcement of 11 October 2016.
Competent Persons Statement – Meckering kaolin deposit Mineral Reserve estimate
The information in this report that relates to Mineral Reserves for the Company’s Meckering kaolin (aluminous clay) deposit is based on information compiled by Mr Carel
Moormann who is employed by Orelogy Consulting Pty Ltd as a Principal Consultant. Orelogy Consulting Pty Ltd is an independent mine planning consultancy based in
Perth, Western Australia. Orelogy was requested by Altech Batteries Ltd to prepare a reserve estimate for the Meckering kaolin deposit to provide feedstock for high purity
alumina production. Mr Moormann is a Fellow of the Australasian Institute of Mining and Metallurgy and a Competent Person as defined by the 2012 JORC Code. Mr
Moorman has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 JORC Code. The information contained in this report pertaining to the Mineral Reserve estimate as at 30 June 2023 is extracted
from the ASX announcement entitled “Maiden Ore Reserve at Altech’s Meckering Kaolin Deposit” dated 11 October 2016. The announcement is available to view on the
Company web site www.altechgroup.com. The Company confirms that there are no material changes to the Company’s Mineral Reserve estimate and the assumptions
underpinning the Mineral Reserve estimate since its ASX announcement of 11 October 2016.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Company holds an exploration licence and a mining licence that regulate its exploration and future mining activities in Western
Australia. These licences include conditions and regulations with respect to the rehabilitation of areas disturbed during the course of its
exploration or future mining activities. So far as the directors are aware, there has been no known breach of the Company’s licence
conditions and all exploration activities comply with relevant environmental regulations.
DIRECTORS’ SHAREHOLDINGS, OPTION HOLDINGS AND PERFORMANCE RIGHTS HOLDINGS
As at the date of this report the directors’ interests in shares and unlisted options of the Company are as follows:
Director
Ignatius Tan
Luke Atkins
Daniel Tenardi
Peter Bailey
Tunku Yaacob Khyra
Uwe Ahrens
Hansjoerg Plaggemars
Interest in Ordinary
Shares
7,940,000
10,857,438
5,594,915
3,774,710
92,655,251
1,000,000
-
Interest in Listed
options
-
-
-
-
-
-
-
Interest in Unlisted
Options
-
-
-
-
-
-
-
Interest in
Performance Rights
30,000,000
4,000,000
4,000,000
4,000,000
4,000,000
13,000,000
4,000,000
DIRECTORS’ MEETINGS
The number of meetings of the Company’s directors held in the period each director held office during the financial year and the numbers
of meetings attended by each director were:
Board of Director Meetings
Audit Committee
Renumeration Committee
Meetings
held whilst
a director
N/A
1
1
1
N/A
N/A
1
Meetings
Attended
1
1
1
1
N/A
N/A
N/A
Meetings
held whilst
a director
1
1
1
1
N/A
N/A
N/A
Director
Meetings
Attended
Meetings held
whilst a
director
Meetings
Attended
Luke Atkins
Ignatius Tan
Daniel Tenardi
Peter Bailey
Tunku Yaacob Khyra
Uwe Ahrens (alternate director)
Hansjoerg Plaggemars
5
5
5
5
1
4
4
N/A
1
1
1
N/A
N/A
1
5
5
5
5
5
5
5
- 8 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
REMUNERATION REPORT
Remuneration Committee
Recommendation 8.1 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th edition)
states that the board should establish a Remuneration Committee. The board has established a Remuneration Committee.
Use of Remuneration Consultants
The board did not engage a remuneration consultant to make any recommendations in relation to its remuneration policies for any of the
key management personnel for the Company during the financial year covered by this report.
Voting and comments made at the Company’s 2022 Annual General Meeting
The Company received 6,037,254 proxy votes (1.72%) against its 2022 remuneration report (from the 352,396,850 proxy votes received
and eligible to vote on the resolution) tabled at the 2022 Annual General Meeting. The Company did not receive any specific feedback at
the Annual General Meeting or throughout the year on its remuneration practices.
This report details the amount and nature of remuneration of each director of the Company and executive officers of the Company during
the year.
Overview of Remuneration Policy
The board of directors is responsible for determining and reviewing compensation arrangements for the directors and executive
management. The board remuneration policy is to ensure that remuneration properly reflects the relevant person’s duties and
responsibilities, and that the remuneration is competitive in attracting, retaining and motivating people of the highest quality. The board
believes that the best way to achieve this objective is to provide the non-executive directors, executive director and the executive
management with a remuneration package consisting of both fixed and variable components that together reflects the positions,
responsibilities, duties and personal performance. An equity based remuneration arrangement for the board and executive management
is in place. The remuneration policy is to provide a fixed remuneration component and a specific equity related component, with appropriate
vesting (performance) conditions. The board believes that this remuneration policy is appropriate given the stage of development of the
Company and the activities that it undertakes, and is appropriate in aligning director and executive objectives with shareholder and
business objectives.
The remuneration policy in regard to setting the terms and conditions for the non-executive directors has been developed by the board
taking into account market conditions and comparable salary levels for companies of a similar size and operating in similar sectors.
Performance rights are valued using the Black-Scholes methodology. In accordance with current accounting policy the value of these
performance rights are expensed over the relevant vesting period.
Non-Executive Directors
The board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that
can be paid to non-executive directors is subject to approval by shareholders at a General Meeting, and has been set not to exceed
$500,000 per annum. Actual remuneration paid to the Company’s non-executive directors is disclosed below. Cash remuneration fees
paid to non-executive directors are not linked to the performance of the Company. However, to align directors interests with shareholder
interests, the directors are encouraged to hold shares in the Company and the directors are awarded performance rights that are subject
to vesting conditions, with the approval of Shareholders.
Board fees (per year)
Chairman
Other non-executive directors (excluding alternate director)
2023
$99,750
$73,500
2022
$95,000
$70,000
The Chairman’s board fees are paid monthly, other non-executive director board fees are paid quarterly, in arrears. Mr Uwe Ahrens, the
alternate director for non-executive director Tunku Yaacob Khyra, has been paid a consulting fee of $5,250 per month for non-board
related services provided to the Company. These services are performed in Germany and Malaysia. He has also been paid a short term
incentive of $50,000 during the year.
- 9 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
REMUNERATION REPORT (continued)
Executive management
The remuneration of the executive management is stipulated in individual services agreements.
The Company aims to reward executives with a level of remuneration commensurate with their position and responsibilities within the
Company so as to:
●
●
●
Reward executives for Company and individual performance against targets set by reference to appropriate benchmarks;
Reward executives in line with the strategic goals and performance of the Company; and
Ensure that total remuneration is competitive by market standards.
Structure
Remuneration consists of the following key elements:
●
●
●
fixed remuneration;
short term incentive scheme; and
performance rights
Fixed remuneration
Fixed remuneration consists of a fixed monthly salary, which is set so as to provide a base level of remuneration that is both appropriate
to the position and is competitive in the market.
Remuneration packages for the staff that report directly to the Managing Director are based on the recommendation of the Managing
Director, subject to the approval of the board.
Short term incentive scheme
Executives and employees of the Company participate in a short-term incentive scheme that makes available an annual cash incentive
(bonus) to individuals based on the attainment of overall Company and group objectives, which are set annually. The scheme is structured
to encourage executives and employees to work as a team for the attainment of the Company’s overall objectives, as opposed to
prescriptive individual performance objectives. Under the scheme, executives and employees can be awarded a cash bonus of between
10% and 40% of individual annual base salary, depending upon their role in the Company.
The board, on the recommendation of the Managing Director, sets annual bonus objectives, and the board also on the recommendation
of the Managing Director, approves annual bonus awards. The board has complete discretion over the short-term incentive scheme.
During the year covered by this report short-term incentives were awarded by the board to executives for the attainment of pre-determined
milestones. Mr Tan was awarded an amount of $87,000 plus superannuation of 10.5% (2022: $95,700 plus superannuation of 10.0%),
while Mr Stein was awarded $57,500 plus superannuation of 10.5% (2022: $7,700 plus superannuation of 10.0%). The board does not
participate in the short term incentive scheme.
Performance rights
The board considers equity based incentive compensation to be an integral component of the Company’s remuneration platform enabling
it to offer market-competitive remuneration arrangements, the award of performance rights is intended to enable recipients to share in any
increase in the Company’s value (as measured by share price) beyond the date of allocation of the performance rights, provided the
specific performance conditions (milestones) are met.
The performance conditions that were chosen for the performance rights issued to the directors, executive management, employees and
key consultants of the Company are on the basis that the achievement of each milestone will represent a significant and challenging
performance outcome which will require the performance rights recipients to devote effort, time and skill above and beyond what would
normally be expected for their respective fixed compensation. The attainment of each vesting condition (milestone) is not certain, but if
achieved could be expected to see an increase in the value of the Company (as measured by share price), enabling the individuals to
participate in this increase in value. Each milestone is transparently measurable, with the vesting condition either achieved or not achieved,
with the achievement publicly announced to the ASX. The respective recipients must be employed or otherwise retained by the Company
at the time of vesting for the performance rights to vest, subject to a milestone being achieved.
During the financial year, a total of 42,000,000 performance rights were issued to the directors. The issue of these performance rights
were approved by the shareholders during the Annual General Meeting on 30 November 2022 and by the Board of Directors by way of
resolution on 16 December 2022.
In addition, 6,000,000 new performance rights were also issued to Mr Martin Stein. The issue of these performance rights were approved
by the Board of Directors by way of resolution on 16 December 2022.
The objectives of the award of performance rights are to provide a remuneration mechanism, through share ownership, to motivate, retain
and reward the performance of employees, key consultants and Company directors. All performance rights vest based on pre-determined
vesting conditions.
- 10 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
REMUNERATION REPORT (continued)
No performance rights held by directors or key management personnel that were outstanding as at 30 June 2023 or awarded since that
date, have vested.
Details of remuneration
The following tables show details of the remuneration received by Altech Batteries Limited’s key management personnel for the current
and previous financial year.
2023
Directors
I Tan – managing director
L Atkins – non-executive chairman
D Tenardi – non-executive
P Bailey – non-executive(i)
Tunku Yaacob Khyra - non-executive
U Ahrens - alternate director (ii)
H Plaggemars – non-executive
Executives
M Stein – CFO & company secretary
S Volk – company secretary
TOTAL
Primary Compensation
Base
Salary/Fees
$
Short Term
Incentive
$
Post-
Employment
Superannuation
Contributions
$
Equity
Compensation
Performance
Rights
$
445,875
97,375
71,750
71,750
71,750
56,250
71,750
260,425
69,163
1,216,088
87,000
-
-
-
-
50,000
-
57,499
-
194,499
55,952
10,224
7,534
-
-
-
-
33,382
944
108,036
509,957
22,044
22,044
22,044
22,044
88,175
22,044
82,646
-
790,998
Total
$
1,098,784
129,643
101,328
93,794
93,794
194,425
93,794
433,952
70,107
2,309,621
(i) Directors’ fees were all paid to Waylen Bay Capital Pty Ltd.
(ii) Services were provided in Germany and Malaysia pursuant to a consultancy agreement with the Company, effective from 1 January 2019.
Note: The fair value of performance rights is estimated at each balance date taking into account, amongst other factors, the likelihood that the various tranches of
performance rights will vest to the respective participants by the vesting date. At 30 June 2023, in the case of all participants, it was deemed likely that the vesting
conditions pertaining to the respective tranches of performance rights would be achieved by the vesting dates and accordingly a pro-rata portion of the deemed value
of the rights has been expensed to the Profit and Loss account and accordingly has been disclosed as deemed income for each key management personnel.
2022
Directors
I Tan – managing director
L Atkins – non-executive chairman
D Tenardi – non-executive
P Bailey – non-executive(iii)
Tunku Yaacob Khyra - non-executive
U Ahrens - alternate director (iv)
H Plaggemars – non-executive
Executives
M Stein – CFO & company secretary
S Volk – CFO & company secretary
TOTAL
Primary Compensation
Base
Salary/Fees
$
Short Term
Incentive
$
Post-
Employment
Superannuation
Contributions
$
Equity
Compensation
Performance
Rights
$
435,000
95,000
70,000
70,000
70,000
65,000
70,000
140,000
84,095
1,099,095
95,700
-
-
-
-
50,000
-
7,700
63,036
216,436
53,070
9,500
7,000
-
-
-
-
14,770
14,713
99,053
363,640
12,485
12,485
12,485
12,485
12,485
12,485
25,231
25,231
489,012
Total
$
947,410
116,985
89,485
82,485
82,485
127,485
82,485
187,701
187,075
1,903,596
(iii) Directors’ fees were all paid to Waylen Bay Capital Pty Ltd.
(iv) Services were provided in Germany and Malaysia pursuant to a consultancy agreement with the Company, effective from 1 January 2019. The base salary includes
$5,000 which relates to services performed in prior year.
Note: The fair value of performance rights is estimated at each balance date taking into account, amongst other factors, the likelihood that the various tranches of
performance rights will vest to the respective participants by the vesting date. At 30 June 2022, in the case of all participants, it was deemed likely that the vesting
conditions pertaining to the respective tranches of performance rights would be achieved by the vesting dates and accordingly a pro-rata portion of the deemed value
of the rights has been expensed to the Profit and Loss account and accordingly has been disclosed as deemed income for each key management personnel.
- 11 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
REMUNERATION REPORT (continued)
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Directors
I Tan – managing director
L Atkins – non-executive Chairman
D Tenardi – non-executive
P Bailey – non-executive
Tunku Yaacob Khyra - non-executive
U Ahrens - alternate director
H Plaggemars – non-executive
Executives
M Stein – CFO & company secretary
S Volk – CFO & company secretary
Fixed remuneration
2022
2023
At risk remuneration
2022
2023
46%
83%
78%
76%
76%
29%
76%
68%
100%
52%
89%
86%
85%
85%
51%
85%
82%
53%
54%
17%
22%
24%
24%
71%
24%
32%
-
48%
11%
14%
15%
15%
49%
15%
18%
47%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. The service
agreements specify the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the
board’s discretion. Other major provisions of the services agreements are set out below.
Name
Ignatius Tan
Managing Director
Term of agreement
and notice period *
No fixed term
6 months notice
Base salary (including
superannuation)
$504,709 p.a.
Martin Stein
Chief Financial Officer & Company Secretary
No fixed term
1 month notice
$317,688 p.a.
Termination payments **
6 months, plus 3 months if
terminated because of a change
in control of the Company
1 month, plus 3 months if
terminated because of a change
in control of the Company
Non-executive director service arrangements are detailed on the first page of the remuneration report.
* The notice period applies equally to either party
** Termination benefit is payable if the Company terminates employees with notice, and without cause (e.g. for reasons other than unsatisfactory performance or gross
misconduct).
Details of share based compensation
During the financial year, the Company issued 15,000,000 performance rights to Mr Iggy Tan, 12,000,000 performance rights to Mr Uwe
Ahrens and 3,000,000 performance rights to each of the other directors. The issue of these performance rights were approved by the
shareholders during the Annual General Meeting on 30 November 2022 and by the Board of Directors by way of resolution on 16 December
2022.
In addition, 6,000,000 new performance rights were also issued to Mr Martin Stein. The issue of these performance rights were approved
by the Board of Directors by way of resolution on 16 December 2022.
Further, 1,000,000 performance rights for Mr Shane Volk were cancelled following his resignation as Company Secretary (2022:
10,000,000 and 1,000,000 expired performance rights were replaced for Mr Iggy Tan and Mr Shane Volk respectively, and 1,000,000
performance rights were issued to Mr Martin Stein)
Details of performance rights (subject to vesting conditions), awarded to directors and other key management personnel as part of
remuneration in current and prior periods and held as at 30 June 2023, are set out below:
- 12 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
No. of
Performance
Rights
Issue
price
Fair Value at
issue date
Vested &
Exercised at
30/06/23
REMUNERATION REPORT (continued)
Name
Directors
Mr Iggy Tan
Mr Iggy Tan
Mr Iggy Tan
Mr Luke Atkins
Mr Luke Atkins
Mr Dan Tenardi
Mr Dan Tenardi
Mr Peter Bailey
Mr Peter Bailey
Tunku Yaacob Khyra
Tunku Yaacob Khyra
Mr Uwe Ahrens
Mr Uwe Ahrens
Mr H Plaggemars
Mr H Plaggemars
Record
Date
12/06/18
29/11/21
12/05/23
27/11/20
12/05/23
27/11/20
12/05/23
27/11/20
12/05/23
27/11/20
12/05/23
27/11/20
12/05/23
27/11/20
12/05/23
5,000,000
10,000,000
15,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
12,000,000
1,000,000
3,000,000
Executives
Mr Martin Stein
Mr Martin Stein
31/1/22
12/05/23
1,000,000
6,000,000
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
$
875,000
1,400,000
1,500,000
45,000
300,000
45,000
300,000
45,000
300,000
45,000
300,000
45,000
1,200,000
45,000
300,000
120,000
600,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Un-vested at
30/06/23
Final date for
vesting
5,000,000
10,000,000
15,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
12,000,000
1,000,000
3,000,000
11/06/25
29/11/26
11/05/28
26/11/25
11/05/28
26/11/25
11/05/28
26/11/25
11/05/28
26/11/25
11/05/28
26/11/25
11/05/28
26/11/25
11/05/28
1,000,000
6,000,000
31/01/29
11/05/28
The assessed fair value of the performance rights at issue date to recipients is allocated equally over the period from the grant date to
vesting date, and the amount is included in the remuneration tables above. Fair values at issue date and at each subsequent reporting
date are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the
risk-free rate for the term of the option.
Equity instruments held by key management personnel (KMP)
The tables below show the number of:
shares in the Company;
(i)
options over ordinary shares in the Company (both listed and unlisted options); and
(ii)
(iii)
rights over ordinary shares in the Company
that were held during the financial year by the directors and key management personnel of the Company directly, indirectly or beneficially.
KMP Holdings of Ordinary Shares
30 June 2023
Directors
I Tan
L Atkins
D Tenardi
P Bailey
Tunku Yaacob Khyra
U Ahrens
H Plaggemars
Executives
S Volk
M Stein
Balance at
Beginning of year
Vested as
Remuneration
during year
Acquired/(disposed)
during year
Other changes
during year
Balance at End
of Year
7,817,000
10,857,438
5,594,915
3,774,710
135,034,675
1,000,000
-
-
-
-
-
-
-
-
-
-
123,000 -
-
-
- -
-
- -
- -
(42,379,424)
7,940,000
10,857,438
5,594,915
3,774,710
92,655,251
1,000,000
-
1,307,727
-
-
-
(361,365)
-
- -
946,362 1
-
1 Holding at the date that S Volk ceased to be a KMP.
- 13 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
REMUNERATION REPORT (continued)
KMP Holdings of Ordinary Shares (continued)
30 June 2022
Directors
I Tan
L Atkins
D Tenardi
P Bailey
Tunku Yaacob Khyra
U Ahrens
H Plaggemars
Executives
S Volk
M Stein
Balance at
Beginning of year
Vested as
Remuneration
during year
Acquired/(disposed)
during year
Other changes
during year
Balance at End
of Year
7,817,000
10,857,438
5,594,915
3,774,710
135,034,675
1,000,000
-
-
-
-
-
-
-
-
-
-
- -
-
-
- -
-
- -
- -
-
7,817,000
10,857,438
5,594,915
3,774,710
135,034,675
1,000,000
-
1,307,727
-
-
-
-
- -
-
1,307,727
-
KMP Holdings of Performance Rights
30 June 2023
Directors
I Tan
L Atkins
D Tenardi
P Bailey
Tunku Yaacob Khyra
U Ahrens
H Plaggemars
Executives
S Volk
M Stein
30 June 2022
Directors
Balance at
beginning
of year
Awarded or
Acquired
during year
Expired
unexercised /
Cancelled
during year
Exercised
during year
Balance at
end of Year
Vested and
exercisable
at year end
Unvested and
unexercisable
at year end
15,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
15,000,000
3,000,000
3,000,000
3,000,000
3,000,000
12,000,000 -
3,000,000
-
-
-
-
-
-
-
-
-
-
-
-
30,000,000
4,000,000
4,000,000
4,000,000
4,000,000
13,000,000
4,000,000
-
30,000,000
-
4,000,000
-
4,000,000
-
4,000,000
4,000,000
-
- 13,000,000
4,000,000
-
-
(1,000,000) -
6,000,000 -
-
7,000,000
-
-
-
-
7,000,000
Balance at
beginning
of year
Awarded or
Acquired
during year
Expired
unexercised /
Cancelled
during year
Exercised
during year
Balance at
end of Year
Vested and
exercisable
at year end
Unvested and
unexercisable
at year end
I Tan
L Atkins
D Tenardi
P Bailey
Tunku Yaacob Khyra
U Ahrens
H Plaggemars
15,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
10,000,000
-
-
-
-
-
-
(10,000,000)
-
-
-
-
-
-
15,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
- 1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
15,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Executives
S Volk
M Stein
1,000,000
-
1,000,000
1,000,000 -
(1,000,000) -
1,000,000
1,000,000
-
-
-
1,000,000
1,000,000
- 14 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
REMUNERATION REPORT (continued)
KMP Holdings of Listed Options
30 June 2023
Directors
I Tan
L Atkins
D Tenardi
P Bailey
Tunku Yaacob Khyra
U Ahrens
H Plaggemars
Executives
S Volk
M Stein
30 June 2022
Directors
I Tan
L Atkins
D Tenardi
P Bailey
Tunku Yaacob Khyra
U Ahrens
H Plaggemars
Executives
S Volk
M Stein
Balance at
beginning
of year
Awarded or
Acquired
during year
Expired
unexercised /
Cancelled
during year
Exercised
during year
Balance at
end of Year
Vested and
exercisable
at year end
Unvested and
unexercisable
at year end
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
beginning
of year
Awarded or
Acquired
during year
Expired
unexercised /
Cancelled
during year
-
250,000
-
-
29,408,101
-
-
-
-
-
-
-
-
-
-
(250,000)
-
-
(29,408,101)
-
-
-
-
-
-
-
-
Exercised
during year
Balance at
end of Year
Vested and
exercisable
at year end
Unvested and
unexercisable
at year end
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
_________________________________________________________________________________________________________
This concludes the remuneration report, which has been audited.
- 15 -
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2023
INDEMNIFYING OFFICERS AND AUDITOR
During the year, the Company paid an insurance premium to insure certain officers of the Company. The officers of the Company
covered by the insurance policy include the directors and the company secretary named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or
criminal proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers
of the Company. The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. The
insurers do not permit the premium amount paid by the Company for this insurance to be disclosed.
The Company has not provided any insurance for an auditor of the Company.
AUDITORS’ INDEPENDENCE DECLARATION
Section 370C of the Corporations Act 2001 requires the Group’s auditor Moore Australia Audit (WA), to provide the directors of the
Company with an Independence Declaration in relation to the audit of the financial report. This Independence Declaration is attached
on the following page.
NON-AUDIT SERVICES
There were no non-audit services provided by the external auditors during the year.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The
Company was not party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of the Company support and
have adhered to the principles of corporate governance for a Company of the current size. The Company’s corporate governance
statement is contained in the Annual Report.
Signed in accordance with a resolution of the directors.
Iggy Tan
Managing Director
DATED at Perth this 19th day of September 2023
- 16 -
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION
307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS
OF ALTECH BATTERIES LIMITED AND CONTROLLED ENTITIES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023, there have
been:
a) no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit, and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
SHAUN WILLIAMS
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 20th day of September 2023.
- 17 -
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2023
Revenue from ordinary activities
Interest Income
R&D tax refunds
Other income
Fair value gain / (loss) on investment (AAM AG)
Total Income
Expenses
30-Jun-23
30-Jun-22
Notes
$
$
234,078
41,570
20,808
14,740,750
15,037,206
227,104
241,555
-
-
468,659
Employee benefit expense (incorporating director fees)
(4,478,536)
(2,201,945)
Depreciation
Other expenses
Share-based payments
Share in profit / (loss) of associate - AAM AG
Impairment - investment in associate (AAM AG)
Impairment of property, plant & equipment and development
expenditure
Research and development
Profit / (loss) on disposal of assets
Interest expense
Forex gain / (loss)
Profit / (loss) before income tax expense
Income tax benefit
Net profit / (loss) from continuing operations
Other comprehensive profit / (loss)
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translating foreign controlled entities
Total comprehensive profit / (loss), net of tax
Profit / (loss) for the year attributable to:
Owners of the parent entity
Non-controlling interest
Total profit / (loss) for the year, net of tax
Total comprehensive profit / (loss) for the year attributable to:
Owners of the parent entity
Non-controlling interest
Total comprehensive profit / (loss) loss for the year
Earnings Per Share
Basic profit / (loss) per share ($ per share)
Diluted profit / (loss) loss per share ($ per share)
2(a)
17(e)
7, 10
3
30
4
4
(347,771)
(3,900,958)
(1,076,658)
(241,130)
-
(63,958,139)
(3,748,711)
(67)
(56,989)
472,585
(328,891)
(2,414,379)
(583,627)
(328,979)
(119,051)
-
(546,262)
-
(3,400)
(9,917)
(62,299,168)
(6,067,791)
519,295
265,362
(61,779,873)
(5,802,429)
(2,980,966)
(64,760,839)
1,964,499
(3,837,930)
(59,717,465)
(2,062,408)
(61,779,873)
(5,729,919)
(72,510)
(5,802,429)
(62,698,431)
(2,062,408)
(3,765,420)
(72,510)
(64,760,839)
(3,837,930)
(0.060)
(0.060)
(0.004)
(0.004)
The above Consolidated statement of Profit and Loss and Other Comprehensive Income should be read
in conjunction with the accompanying notes.
- 18 -
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right of Use Assets
Exploration and evaluation expenditure
Development expenditure
Investments in Associates
Other Financial Assets
Other non-current receivable
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Lease liabilities
Trade and other payables
Provisions
Total current liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Loans payable
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Contributed Equity
Reserves
Accumulated losses
Non-controlling interests
TOTAL EQUITY
30-Jun-23
30-Jun-22
Notes
$
$
5(a)
6
3,571,159
2,884,702
10,912,939
502,908
6,455,861
11,415,847
7
8
9
10
11
12
13
14
15
15
16
17
18
20
12,595,817
31,999,798
4,398,139
981,637
-
-
17,850,837
2,596,055
5,950,181
782,659
37,679,490
3,351,214
-
7,208,984
38,422,485
86,972,327
44,878,346
98,388,174
34,442
6,326,018
225,022
6,585,482
-
173,800
4,244,005
4,417,805
11,003,287
55,394
412,222
219,814
687,430
34,532
128,569
-
163,102
850,531
33,875,059
97,537,643
124,487,779
124,487,779
1,822,560
3,726,868
(90,321,959)
(30,604,494)
(2,113,321)
(72,510)
33,875,059
97,537,643
The above Consolidated Statement of Financial Position should be read
in conjunction with the accompanying notes.
- 19 -
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
Contributed
Equity
$
Accumulated
losses
$
Share-
based
payment
reserves
$
Foreign
currency
translation
reserves
$
Other equity
interests
$
Total
$
At 1 July 2022
124,487,779
(30,604,494)
1,762,369
1,964,499
(72,510)
97,537,643
Profit / (Loss) after income tax for the year
Other comprehensive profit / (loss) for the
year (net of tax)
Total comprehensive profit / (loss) for
the year
Transactions with owners in their
capacity as owners:
Issue of share capital
Share based payments (issue of
performance rights)
Expiration / cancellation of performance
rights
At 30 June 2023
-
-
-
-
-
(59,717,465)
-
-
-
-
(2,062,408)
(61,779,873)
(2,980,966)
-
(2,980,966)
(59,717,465)
-
(2,980,966)
(2,062,408)
(64,760,839)
-
1,285,407
-
(208,749)
-
-
21,597
-
-
21,597
1,285,407
(208,749)
124,487,779
(90,321,959)
2,839,027
(1,016,467)
(2,113,321)
33,875,059
Contributed
Equity
$
Accumulated
losses
$
Share-
based
payment
reserves
$
Foreign
currency
translation
reserves
$
Other equity
interests
$
Total
$
At 1 July 2021
107,509,911
(27,473,110)
7,346,777
1,543,044
-
88,926,622
Profit / (Loss) after income tax for the year
Other comprehensive profit / (loss) for the
year (net of tax)
Total comprehensive profit / (loss) for
the year
Transactions with owners in their
capacity as owners:
Issue of share capital (net of issue costs)
Share based payments (issue of
performance rights)
Exercise of options
Conversion of performance rights to share
capital
Expiration of performance rights
-
-
-
(5,729,919)
-
(5,729,919)
9,910,024
-
3,498,344
3,569,500
-
-
-
-
-
-
-
-
583,627
-
(3,569,500)
2,598,534
(2,598,534)
-
(72,510)
(5,802,429)
421,455
-
421,455
421,455
(72,510)
(5,380,974)
-
-
-
-
-
-
-
-
-
-
9,910,024
583,627
3,498,344
-
-
At 30 June 2022
124,487,779
(30,604,494)
1,762,369
1,964,499
(72,510)
97,537,643
The above Consolidated Statement of Changes in Equity should be read
in conjunction with the accompanying notes.
- 20 -
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
Cash Flows from Operating Activities
Payments to suppliers, contractors and employees
R&D refund received
Interest received
Other receipts
Interest paid
30-Jun-23
30-Jun-22
Notes
$
$
(8,801,229)
306,932
234,906
34,725
(56,989)
(5,286,968)
241,555
227,104
-
(3,400)
Net cash flows used in operating activities
5(b)
(8,281,655)
(4,821,709)
Cash Flows from Investing Activities
Acquisition of plant and equipment
Payment for investment in Altech Advance Materials AG
Payments for research and development
Payments for exploration expenditure
Security deposits paid
Proceeds from sale of 25% of Altech Industries Germany Gmbh
Net cash flows used in investing activities
Cash Flows from Financing Activities
Loans from AAM
Proceeds from issue of shares
Share issue costs
Proceeds from exercise of options
Lease repayment (principal)
Net cash flows from financing activities
Net increase /(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Foreign exchange variance on cash
Cash and cash equivalents at the end of the financial year
5(a)
(3,262,022)
-
(3,748,711)
(198,978)
(40,983)
5,096,839
(2,443,218)
(1,713,805)
-
(177,838)
-
-
(2,153,855)
(4,334,862)
3,135,396
-
-
-
(58,164)
-
10,331,348
(421,324)
3,498,344
(56,998)
3,077,232
13,351,370
(7,358,278)
10,912,939
16,498
4,194,799
6,728,978
(10,838)
3,571,159
10,912,939
The above Consolidated Statement of Cash Flows should be read
in conjunction with the accompanying notes.
- 21 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
GENERAL INFORMATION
The financial statements cover Altech Batteries Limited as a consolidated entity consisting of Altech Batteries Limited and the entities it controlled at
the end of, or during, the year. The financial statements are presented in Australian dollars, which is Altech Batteries Limited’s functional and
presentation currency.
Altech Batteries Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of
business is:
Suite 8, 295 Rokeby Road
Subiaco
Western Australia 6008
The financial statements were authorised for issue on the 19th of September 2023, in accordance with the resolution of directors. The directors have
the power to amend and reissue the financial statements.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.
The principal accounting policies adopted in preparing the financial report of the Group, Altech Batteries Limited (“ATC” or “Company”), are stated to
assist in a general understanding of the financial report. These policies have been consistently applied to all the years presented, unless otherwise
indicated.
Altech Batteries Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the official list of
the Australian Securities Exchange (ASX). The financial statements are presented in Australian dollars, which is the Group’s functional currency.
(a) Basis of Preparation
These general purpose financial statements have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards
and Interpretations of the Australian Accounting Standards Board and International Financial Reporting Standards as issued by the International
Accounting Standards Board.
The financial report is presented in Australian dollars. The Group is a for-profit entity for financial reporting purposes under Australian Accounting
Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently
applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on historical costs, modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
(b) Use of Estimates and Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets and liabilities, income and expenses, these include employee provisions, ammortisation and
depreciation rates, share based payments and the valuation of capitalised exploration and development costs. Actual results may differ from
these estimates and further disclosure on these estimates is detailed below. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
(c)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the income tax rate
adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and
their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or
liabilities are settled, based on those tax rates which are enacted. The relevant tax rates are applied to the cumulative amounts of deductible
and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising
from the initial recognition of an asset or a liability. No deferred asset or liability is recognised in relation to those temporary differences if they
arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit
or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts
will be available to utilise those temporary differences and losses.
Current and future tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
(d) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
The following specific recognition criteria must also be met before revenue is recognised.
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
- 22 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(e) Cash and Cash Equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short term deposits with an original maturity of three
months or less.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined
above, which are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis.
(f)
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and
impairment losses.
Property
Freehold land and buildings are recorded at cost of acquisition..
Plant and Equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment.
In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down
immediately to the estimated recoverable amount and impairment losses are recognised either in profit or. A formal assessment of the recoverable
amount is made when impairment indicators are present (refer to Note 1(q) for details of impairment).
The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing costs and an appropriate
proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.
Land
Land is recorded at the total cost of acquisition. The value of land in Australia (Meckering) and in Germany (Saxony) is not amortised. Land in
Malaysia (Johor HPA plant site) is recorded at the total cost of acquisition and is amortised on a straight-line basis over the 30-year term of the
land lease.
The carrying amount of land is reviewed annually to ensure that it is not in excess of the recoverable amount from its disposal. In the event that
the carrying amount of any land is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated
recoverable amount and impairment losses are recognised either in profit or loss account or as a revaluation decrease if the impairment losses
relate to a revalued asset. A formal assessment of the recoverable amount is made when impairment indicators are present (refer to Note 1(q) for
details of impairment).
- 23 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(f)
Property, Plant and Equipment (continued)
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a
straight-line basis over the asset’s useful life to the consolidated group commencing from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant & equipment
Office Equipment
Depreciation Rate
33% to 66%
20%
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit
or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are
transferred to retained earnings.
(g) Employee Benefits
Short-term employee benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination
benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the
related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected
to be paid when the obligation is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and
other payables in the statement of financial position. The Group’s obligations for employees’ annual leave and long service leave entitlements
are recognised as provisions in the statement of financial position.
Other long-term employee benefits
Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the
end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the
present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and
salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of
the reporting period on corporate bonds that have maturity dates that approximate the terms of the obligations. Any re-measurements for changes
in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes occur.
The Group’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except
where the Group does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which
case the obligations are presented as current provisions.
Share-based payment transactions
The Group currently operates a Performance Rights Plan and also awards Performance Rights to its directors outside of the plan but on the
same terms and conditions, which provides benefits to directors, consultants, executives and employees. The Group may also award
performance rights or other equity instruments outside of the performance rights plan to directors, consultants, executives and employees.
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no
impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Any
underlying assumptions are detailed in Note 16(e).
The cost of equity-settled transactions is recognised as a share based payment expense in the profit and loss account with a corresponding
increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award,
the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense
is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation
benefit as at the date of modification.
If the non-vesting condition is within the control of Group or employee, the failure to satisfy the condition is treated as a cancellation. If the
condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award
is recognised over the remaining vesting period, unless the award is forfeited.
- 24 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(g) Employee Benefits (continued)
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised
immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a
modification.
(h) Exploration and Development Expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are
only capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the
area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the
area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate
of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area.
Costs of site restoration are provided for over the life of the project from when exploration commences and are included in the costs of that stage.
Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation
of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future
costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is
uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have
been determined on the basis that the restoration will be completed within one year of abandoning the site.
(i)
Research and Development
Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised only when
technical feasibility studies identify that the project is expected to deliver future economic benefits and these benefits can be measured reliably.
Development costs have a finite life and are amortised on a systematic basis based on the future economic benefits over the useful life of the
project.
An intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the
following are demonstrated:
•
•
•
•
•
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and use or sell it;
the ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;
and
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
•
Capitalised development costs will be amortised over their expected useful life once commercial sales commence.
(j)
Going Concern
This report has been prepared on the going concern basis, which contemplates the continuation of normal business activity and the realisation
of assets and the settlement of liabilities in the normal course of business for a period of 12 months from the date of issuing the financial
statements.
The Group has incurred net cash outflows for the year ended 30 June 2023 of $7,358,278 (2022: net cash inflows of $4,194,799). In addition,
as at 30 June 2023, the Group had net current liabilities of $129,621 (30 June 2022: net current assets of $10,728,417).
On 21 July 2023, the Company issued 42,857,142 fully paid ordinary shares to professional and sophisticated investors at $0.07 per share,
raising gross proceeds from the share placement of $3.0 million.
On 11 August 2023, the Company issued 147,145,801 fully paid ordinary shares at $0.07 per share, raising gross proceeds of $10.3 million. The
shares were issued as part of the pro-rata non-renounceable entitlement issue pursuant to a Prospectus dated 18 July 2023.
On 17 August 2023, the Company issued 29,414,218 fully paid ordinary shares at $0.07 per share, raising gross proceeds of $2.06 million. The
shares were issued as part of the shortfall to the pro-rata non-renounceable entitlement issue pursuant to a Prospectus dated 18 July 2023.
In addition, the Company intends to issue an additional 7,142,857 shortfall fully paid ordinary shares at $0.07 per share, to raise gross proceeds
of $0.5 million. The Company will issue these additional 7,142,857 shortfall shares subject to receiving shareholder approval at the Annual
General Meeting to be held on 27 October 2023.
Cashflow forecasts indicate that the Company will have sufficient cash to remain as a going concern for at least the next 12 months.
- 25 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(k) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of goods and services tax (“GST”), except where the amount of GST incurred
is not recoverable from the Australian Taxation Office (“ATO”). In these circumstances the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of the expense. Receivables and payables are stated with the amount of GST included. GST incurred is claimed
from the ATO when a valid tax invoice is provided. The net amount of GST recoverable from, or payable to, the ATO is included as a current
asset or liability in the balance sheet.
The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
(l)
Payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. The
amounts are unsecured and are usually paid within 30 days of recognition.
(m)
Issued Capital
Contributed Equity
Issued capital is recognised as the fair value of the consideration received by the Group. Any transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a reduction of the share proceeds received.
Earnings per Share
Basic earnings per share (“EPS”) are calculated based upon the net loss divided by the weighted average number of shares. Diluted EPS are
calculated as the net loss divided by the weighted average number of shares and dilutive potential shares.
(n)
Leases
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a
corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that are classified as short-term
leases (lease with remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a
straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement date. The lease payments
are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
•
•
•
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
-
-
lease payments under extension options if lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
Subsequently, the lease liability is measured by a reduction to the carrying amount of any payments made and an increase to reflect any interest
on the lease liability.
The right-of-use assets is an initial measurement of the corresponding lease liability less any incentives and initial direct costs. Subsequently,
the measurement is the cost less accumulated depreciation (and impairment if applicable).
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates to exercise a
purchase option, the specific asset is depreciated over the useful life of the underlying asset.
Leased Asset
The Company leases its research and development laboratory at Unit 2, 91 Leach Highway, Kewdale WA 6105. This lease has a 3 year term
(expiring 31 March 2024), and the Company has an option to renew the lease for an additional 3 year term. Lease payments are made monthly
and there is an annual 3% increase in the amount payable on the first and second anniversary of the lease. Variable outgoings are also paid to
the building body corporate on a monthly basis, and adjusted against actual outgoings expenses annually.
The Company’s wholly owned Malaysian subsidiary, Altech Batteries Sdn Bhd leases an office space in Tanjung Langsat, Johor, Malaysia. This
lease has a 1 year term (expired 31 August 2023), and the Company has an option to renew the lease for an additional 1 year term.
The Company’s 75%-owned subsidiary, Altech Industries Germany GmbH leases an office space in Dock 3, Saxony, Germany. This lease has
a 5 year term (expiring 11 January 2026).
The Company accounts for all leases in accordance with the requirements specified in AASB 16, and has consequently recognised a right of
use asset in the balance sheet as summarised in Note 8.
- 26 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(o) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial
year.
(p)
(q)
Financial risk management
The board of directors has overall responsibility for the establishment and oversight of the risk management framework, to identify and analyse
the risks faced by the Group. These risks include credit risk, liquidity risk and market risk from the use of financial instruments. The Group has
only limited use of financial instruments through its cash holdings being invested in short term interest bearing securities. The primary goal of
this strategy is to maximise returns while minimising risk through the use of accredited banks. Working capital is maintained at its highest level
possible and regularly reviewed by the full board.
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will
include the consideration of external and internal sources of information including dividends received from subsidiaries, associates or jointly
controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by
comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying
amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is
carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment
loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-
generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
(r)
Critical accounting estimates and judgements
The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are:
Share based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model, using the assumptions
detailed in Note 17(e).
Exploration and evaluation assets
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s accounting policy (refer Note
1(h)), requires estimates and assumptions as to future events and circumstances, in particular, whether successful development and commercial
exploitation, or alternatively sale, of the respective areas of interest will be achieved. The Group applies the principles of AASB 6 and recognises
exploration and evaluation assets when the rights of tenure of the area of interest are current, and the exploration and evaluation expenditures
incurred are expected to be recouped through successful development and exploitation of the area or where exploration activities have not
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. If, after having capitalised the
expenditure under the Group’s accounting policy in Note 9, a judgment is made that recovery of the carrying amount is unlikely, an impairment
loss is recorded in profit or loss in accordance with the Group’s accounting policy in Note 1(h). The carrying amounts of exploration and evaluation
assets are set out in Note 9.
Development expenditure and Malaysian HPA Plant (work in progress)
Judgment is applied by management in determining when development and other capital expenditure relating to the Malaysian HPA plant is
commercially viable and technically feasible. Any judgments may change as new information becomes available. If, after having commenced the
development activity, a judgment is made that the asset under development is impaired, the appropriate amount will be written off to the Statement
of Profit or Loss & Other Comprehensive Income. Whilst the current economic climate and the impacts of the COVID-19 pandemic in the medium
to longer term are still uncertain, impairment assessments are undertaken based on the best available current information.
(s) New and Amended Accounting Policies Adopted by the Group
The Group has considered the implications of new or amended Accounting Standards which have become applicable of the current financial
reporting period. There have been no new or amended accounting standards for the current financial reporting period.
(t)
New Accounting Standards for Application in Future Periods
A number of new standards and amendments to standards have been issued and are effective for future accounting periods, however the Group
has not yet adopted these and does not expect any standard or amendment not yet effective, to have a significant impact on the financial
statements of the Group in future periods.
- 27 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(u) Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent, Altech Batteries Limited and all of the
subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided
in Note 29.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Company from the date on which
control is obtained by the Company. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany
transactions, balances and unrealised gains or losses on transactions between group entities are fully eliminated on consolidation. Accounting
policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by
the Company. Equity interests in a subsidiary not attributable, directly or indirectly, to the Company are presented as “non-controlling interests”.
The Company initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to a proportionate
share of the subsidiary’s net assets on liquidation at either fair value or at the non-controlling interests’ proportionate share of the subsidiary’s
net assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each component of other
comprehensive income. Non-controlling interests are shown separately within the equity section of the statement of financial position and
statement of comprehensive income.
(v)
Investment in Associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and
operating policy decisions of the entity but is not control or joint control of those policies. Investments in associates are accounted for in the
consolidated financial statements by applying the equity method of accounting, whereby the investment is initially recognised at cost (including
transaction costs) and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of the associate. In addition, the
Group’s share of the profit or loss and other comprehensive income is included in the consolidated financial statements.
The carrying amount of the investment includes, when applicable, goodwill relating to the associate. Any discount on acquisition, whereby the
Group’s share of the net fair value of the associate exceeds the cost of investment, is recognised in profit or loss in the period in which the
investment is acquired.
Profits and losses resulting from transactions between the Group and the associate are eliminated to the extent of the Group’s interest in the
associate.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group discontinues recognising its share
of further losses unless it has incurred legal or constructive obligations or made payments on behalf of the associate. When the associate
subsequently makes profits, the Group will resume recognising its share of those profits once its share of the profits equals the share of the
losses not recognised.
The requirements of AASB 128: Investments in Associates and Joint Ventures and AASB 9: Financial Instruments are applied to determine
whether it is necessary to recognise any impairment loss with respect to the Group’s investment in an associate or a joint venture. When
necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with AASB 136: Impairment
of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying
amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised
in accordance with AASB 136 to the extent that the recoverable amount of the investment subsequently increases.
(w) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For
financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is
classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted
prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at amortised cost.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
–
–
–
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
–
–
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
- 28 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(W) Financial Instruments (continued)
Impairment
A financial asset that meets the following conditions is subsequently measured at amortised cost:
–
–
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:
–
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial
asset.
–
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive
income are subsequently measured at fair value through profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
–
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as “accounting mismatch”) that would
otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented
appropriately, so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be
managed and evaluated consistently on a fair value basis;
–
The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments:
–
–
–
–
the general approach
the simplified approach
the purchased or originated credit impaired approach; and
low credit risk operational simplification.
General approach
Under the general approach, at each reporting period, the Group assesses whether the financial instruments are credit-impaired, and if:
–
the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss allowance of the
financial instruments at an amount equal to the lifetime expected credit losses; or
there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument
at an amount equal to 12-month expected credit losses.
–
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition of
lifetime expected credit loss at all times. This approach is applicable to:
–
trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with Customers
and which do not contain a significant financing component; and
lease receivables.
–
Evidence of credit impairment includes:
–
–
–
–
–
significant financial difficulty of the issuer or borrower;
a breach of contract (e.g. default or past due event);
a lender granting to the borrower a concession, due to the borrower's financial difficulty, that the lender would not otherwise consider;
high probability that the borrower will enter bankruptcy or other financial reorganisation; and
the disappearance of an active market for the financial asset because of financial difficulties.
(x)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. When the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement
is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in
profit or loss net of any reimbursement.
Provisions are measured at management’s best estimate of the expenditure required to settle the present obligation at the reporting date.
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional
currency different from the presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of
•
financial position;
income and expenses for each consolidated statement of profit and loss and other comprehensive income are translated at average
exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the transactions); and
• all resulting exchange differences are recognised in other comprehensive income.
- 29 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
(y)
Foreign Currency
Functional and presentation currency
Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars,
which is the Company’s functional and presentation currency.
Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year-end exchange rates are generally recognised in profit or loss.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are
reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation
are treated as assets and liabilities of the foreign operation and translated at the closing rate.
Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of profit and loss and other
comprehensive income, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statement of profit
and loss and other comprehensive income on a net basis within other income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value
was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For
example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognised in
profit or loss as part of the fair value gain or loss.
2. Loss for the year includes the following specific income and expenses
(a) Other expenses
Accounting and audit fees
ASX and share registry fees
Corporate & consulting
Insurance expense
Occupancy
Legal fees
Investor relations and marketing
Office & administration
30-Jun-23
30-Jun-22
$
$
(46,209)
(116,217)
(1,027,870)
(331,819)
(478,212)
(447,568)
(876,742)
(576,321)
(55,180)
(121,903)
(836,490)
(276,927)
(166,277)
(174,618)
(477,796)
(305,188)
(3,900,958)
(2,414,379)
- 30 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
3. Income Tax
Income tax benefit / (expense)
Current income tax benefit / (expense)
Tax reconciliation
Accounting profit (loss) before tax
At statutory tax rate of 25%
Adjustment for:
Non-assessable income
Research & Development Spend
Research & Development Offset
Share based payments to employees
Non-deductible expenses
Deferred Tax Asset temporary differences not brought to account
Deferred Tax Asset losses not brought to account
Foreign Tax rate differential
Recoupment of prior year tax losses not previously brought to account
Deferred tax assets
Provisions, accruals and other
Tax losses
Offset by deferred tax liabilities
Deferred tax liabilities
Capitalised mineral exploration and evaluation expenditure
Development expenditure
Offset by deferred tax assets
Deferred tax assets not recognised
Tax losses
Temporary differences
30-Jun-23
$
30-Jun-22
$
519,295
519,295
265,362
265,362
(62,299,168)
(15,574,792)
(6,067,791)
(1,516,948)
(3,685,188)
298,446
508,903
269,165
901,146
4,475,892
12,232,960
1,092,763
-
519,295
123,476
-
123,476
-
136,565
265,362
-
1,182,934
484,417
628
(287,597)
265,362
68,646
677,013
745,659
(123,476)
(745,659)
-
-
(123,476)
-
(123,476)
123,476
-
2,517,955
3,788,581
6,306,536
(96,794)
(648,865)
(745,659)
745,659
-
2,017,465
-
2,017,465
- 31 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
4. Earnings per share
Basic profit (loss) per share
Diluted profit (loss) per share
The weighted average number of ordinary shares used in the calculation
of basic earnings per share was:
30-Jun-23
$
(0.060)
(0.060)
30-Jun-22
$
(0.004)
(0.004)
Number
1,080,764,077
Number
1,080,764,077
Potential ordinary shares have not been included in the above number as they would be anti-dilutive.
5. Cash and cash equivalents
(a) Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related
items in the Consolidated Statement of Financial Position as follows:
Cash at bank and on hand
30-Jun-23
$
3,571,159
(b) Reconciliation of the loss from ordinary activities after income tax to the net cash flows used in operating activities:
Profit/(Loss) from ordinary activities after income tax
Non-cash items:
- Depreciation expense (Operations)
- Foreign exchange (gains) / losses
- Share based payments
- Loss on disposal of assets
- Share in loss of associate (AAM AG)
- Impairment of property, plant and equipment and development
expenditure
- Fair value (gain) / loss on investment in AAM AG
- Minority equity interest
Change in operating assets and liabilities:
- Increase / (decrease) in Operating trade and other payables
- (Increase) / decrease in Operating trade and other receivables
- Increase / (decrease) in Operating provisions
Net cash outflows from Operating Activities
6. Trade and other receivables
CURRENT RECEIVABLES
Research and development tax rebate
Sundry debtors
GST receivable
Deposits paid
AAM AG
Other receivable
- 32 -
30-Jun-23
$
(61,779,873)
347,771
2,827,176
1,076,658
67
241,130
63,958,139
(14,740,750)
2,062,408
15,991
(2,340,811)
50,439
(8,281,655)
30-Jun-23
$
519,295
180,326
1,950,323
49,376
26,628
158,754
2,884,702
30-Jun-22
$
10,912,939
30-Jun-22
$
(5,802,429)
328,891
(200,699)
583,627
-
328,979
-
119,051
72,510
(14,867)
(255,990)
19,218
(4,821,709)
30-Jun-22
$
265,362
-
130,231
30,383
68,930
8,001
502,908
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
7. Property, Plant and Equipment
OFFICE EQUIPMENT
At cost
Less: accumulated depreciation
Total office equipment
LAND
At cost
Total land
PLANT AND EQUIPMENT
At cost
Less: accumulated depreciation
Total plant and equipment
MALAYSIAN HPA PLANT (work in progress)
At cost
Less: Provision for impairment
Total Malaysian HPA Plant
SILUMINA PILOT PLANT - GERMANY (work in progress)
At cost
Total German Pilot Plant
CERENERGY BATTERY PLANT - GERMANY (work in progress)
At cost
Total German Pilot Plant
30-Jun-23
30-Jun-22
$
382,418
(252,711)
$
281,816
(211,866)
129,707
69,951
3,779,406
3,779,406
3,578,359
3,578,359
224,897
(108,136)
116,761
205,774
(36,896)
168,879
26,777,563
27,367,758
(26,313,376)
-
464,187
27,367,758
6,185,191
6,185,191
814,852
814,852
1,920,565
1,920,565
-
-
Total Property, Plant and Equipment
12,595,817
31,999,798
Reconciliation
Reconciliation of the carrying amounts for each class of plant and equipment are set out below:
OFFICE EQUIPMENT
Carrying amount at the beginning of the year
Additions
Disposals
Depreciation expense (profit & loss account)
Carrying amount at the end of the year
LAND
Carrying amount at the beginning of the year
Additions
Less: amortisation
Carrying amount at the end of the year
- 33 -
30-Jun-23
30-Jun-22
$
69,951
111,363
(67)
(51,540)
129,707
$
101,722
21,171
-
(52,942)
69,951
3,578,359
201,047
1,575,497
2,002,862
-
-
3,779,406
3,578,359
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
7. Property, Plant and Equipment (continued)
Reconciliation (continued)
PLANT AND EQUIPMENT
Carrying amount at the beginning of the year
Additions
Less: depreciation
Carrying amount at the end of the year
MALAYSIAN HPA PLANT (work in progress)
Carrying amount at the beginning of the year
Additions
Provision for impairment of assets
Foreign currency translation
Carrying amount at the end of the year
30-Jun-23
$
30-Jun-22
$
168,879
19,123
(71,241)
116,761
25,857
168,390
(25,368)
168,879
27,367,758
28,228,513
-
(26,313,376)
-
-
(590,195)
(860,755)
464,187
27,367,758
The Malaysian HPA plant is part way constructed, and is currently on care and maintenance. The Company requires further capital in order to
complete the plant. Due to uncertainties surrounding the prospect of obtaining funding for this plant, the Company has taken the prudent
approach to provide for impairment of the Malaysian HPA Plant to its fair value less costs of disposal. A valuation of the HPA plant conducted
by a licenced professional valuer formed the basis of the impairment.
SILUMINA PILOT PLANT - GERMANY (work in progress)
Carrying amount at the beginning of the year
Additions
Carrying amount at the end of the year
CERENERGY BATTERY PLANT - GERMANY (work in progress)
Carrying amount at the beginning of the year
Additions
Carrying amount at the end of the year
8. Right-of-use Assets
At cost
Accumulated depreciation
Net carrying amount
814,852
5,370,339
6,185,191
-
1,920,565
1,920,565
-
814,852
814,852
-
-
-
5,310,736
(912,597)
4,398,139
6,854,271
(904,090)
5,950,181
Reconciliation
Reconciliation of the carrying amount of right-of-use assets at the beginning and end of year are set out below:
Right-of-use assets
At beginning of the year net of accumulated depreciation
Impairment
Depreciation charge for the year
Net carrying amount at the end of the year
5,950,181
(1,366,617)
(185,425)
4,398,139
6,195,810
(15,345)
(230,284)
5,950,181
Lease liabilities are significantly lower in comparison to the carrying amount of the right-of-use assets as the lease of the land in Malaysia (Johor
HPA plant site) has been paid upfront in full.
- 34 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
9. Exploration and Evaluation expenditure
Carrying amount at the beginning of year
Exploration and evaluation expenditure incurred during the year (at cost)
Carrying amount at the end of the year
10. Development expenditure
Carrying amount at the beginning of the year
Development expenditure incurred during the year (at cost) including foreign exchange
movements
Provision for impairment of assets - development
Carrying amount at the end of the year
30-Jun-23
30-Jun-22
$
782,659
198,978
981,637
$
604,821
177,838
782,659
30-Jun-23
30-Jun-22
$
$
37,679,490
36,463,669
(1,179,979)
(36,499,511)
1,215,821
-
-
37,679,490
The Malaysian HPA plant is part way constructed, and is currently on care and maintenance. The Company requires further capital in order to
complete the plant. Due to uncertainties surrounding the prospect of obtaining funding for this plant, the Company has taken the prudent
approach to provide for impairment of these development costs. A valuation of the HPA plant conducted by a licenced professional valuer
formed the basis of the impairment.
11. Investment in Associate (Altech Advanced Materials AG)
30-Jun-23
30-Jun-22
Carrying amount at the beginning of the period
Acquisition of shares in Altech Advanced Materials AG (AAM AG)
Share of associate’s loss for the period since acquisition
Reclassification to investments¹
Carrying amount at the end of the year
$
3,351,214
-
(241,130)
(3,110,084)
-
$
2,085,439
1,713,806
(328,979)
(119,052)
3,351,214
¹ The Company’s ownership in AAM decreased from 27.1% as at 30 June 2022 to 10.86% as at 31 December 2023 as a result of a share issue
conducted by AAM. The Company is no longer deemed to have significant influence over AAM and, as such, the Company now accounts for
its ownership in AAM as Other Financial Assets. Refer to note 12.
12. Other Financial Assets
30-Jun-23
30-Jun-22
Carrying amount at the beginning of the period
Reclassification from Investment in Associate (AAM AG) 1
Fair value gain / (loss) on investment
Carrying amount at the end of the period
$
-
4,629,897
13,220,940
17,850,837
$
-
-
-
-
The Company measures the fair value of the above investment, as required by Accounting Standard AASB 13 Fair Value Measurement, based
on the fair value hierarchy the investment is level 1 with quoted prices in active markets for identical assets or liabilities. The investment is
subject to market risk, the risk in changes in market prices that will affect the fair value of the investment.
13. Other non-current receivables
Deferred consideration sale of 25% AIG to AAM AG
30-Jun-23
30-Jun-22
$
$
2,596,055
7,208,984
On 23 December 2020, Altech sold 25% of its Geramn subsidiary AIG for $8 million to Altech Advanced Materials AG. The initial cash
consideration of $400,000 was received upon the signing of the share sale, deferred consideration of $7.6m was remaining. Altech Batteries
Limited received the first of two installments in March 2023, the amount received was $5.12m. The final instalment is due in December 2023.
The Company charges Altech Advanced Materials AG, 3% p.a interest on a quarterly basis.
- 35 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
14. Trade and other payables
CURRENT PAYABLES (Unsecured)
Trade creditors
Accrued expenses
Payroll Tax payable
Other creditors and accruals
Total trade and other payables
15. Provisions
CURRENT
Provision for annual leave
NON-CURRENT
Provision for long service leave
Total provisions
16. Loans Payable
Advances from Altech Advanced Materials AG (AAM)
30-Jun-23
30-Jun-22
$
$
5,671,831
502,939
13,628
137,620
6,326,018
289,623
48,102
6,255
68,242
412,222
30-Jun-23
$
30-Jun-22
$
225,022
219,814
173,800
398,822
128,569
348,383
30-Jun-23
$
4,244,005
4,244,005
30-Jun-22
$
-
-
Loans Payable are advances from AAM to Altech Industries Germany GmbH (AIG) as part of its 25% contribution towards AIG’s operations in
Germany and AAM’s 25% contribution to Altech Energy Holdings GmbH (AEH). Together with the Company’s 75% share of advances, AEH
would then on-lend the loan to is its 75%-owned subsidiary, Altech Batteries GmbH (ABG) for development of a 100MWh battery production
plant in Saxony, Germany (see Note 23).
Interest payable by AIG and AEH to AAM is 3.25% per annum on the outstanding loan amount.
17. Contributed Equity
(a) Ordinary shares
30-Jun-23
$
30-Jun-22
$
Contributed equity at the beginning of the period
124,487,779
107,509,911
Shares issued during the period
Options conversion
Transfer of historical share-based payment reserve to share capital
Transaction costs relating to shares issued
-
-
-
-
10,331,350
3,498,343
3,569,500
(421,326)
Contributed Equity at the end of the reporting period
124,487,779
124,487,779
Movements in ordinary share capital:
Ordinary shares on issue at the beginning of reporting period
30-Jun-23
30-Jun-22
1,426,765,869
1,286,482,133
Shares issued during the period:
12-Aug-21 at $0.08 (Exercise of options)
13-Oct-21 at $0.08 (Exercise of options)
20-Oct-21 at $0.08 (Exercise of options)
-
-
-
2,600
466,722
145,729
- 36 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
17. Contributed Equity (continued)
4-Nov-21 at $0.08 (Exercise of options)
10-Nov-21 at $0.08 (Exercise of options)
16-Nov-21 at $0.08 (Exercise of options)
23-Nov-21 at $0.08 (Exercise of options)
30-Nov-21 at $0.08 (Exercise of options)
8-Dec-21 at $0.08 (Exercise of options)
9-Dec-21 at $0.107 (Placement)
15-Dec-21 at $0.08 (Exercise of options)
22-Dec-21 at $0.08 (Exercise of options)
23-Dec-21 at $0.107 (Share Purchase Plan)
4-Jan-22 at $0.08 (Exercise of options)
17-Jan-22 at $0.08 (Exercise of options)
24-Jan-22 at $0.08 (Exercise of options)
31-Jan-22 at $0.08 (Exercise of options)
14-Feb-22 at $0.08 (Exercise of options)
28-Feb-22 at $0.08 (Exercise of options)
14-Mar-22 at $0.08 (Exercise of options)
24-Mar-22 at $0.08 (Exercise of options)
31-Mar-22 at $0.08 (Exercise of options)
7-Apr-22 at $0.08 (Exercise of options)
21-Apr-22 at $0.08 (Exercise of options)
27-Apr-22 at $0.08 (Exercise of options)
3-May-22 at $0.08 (Exercise of options)
10-May-22 at $0.08 (Exercise of options)
17-May-22 at $0.08 (Exercise of options)
27-May-22 at $0.08 (Exercise of options)
2-Jun-22 at $0.08 (Exercise of options)
Ordinary shares on issue at the end of the reporting period
(b) Performance Rights
30-Jun-23
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,426,765,869
30-Jun-22
137,500
463,419
966,819
153,844
346,862
59,440
75,964,556
14,540
120,445
20,589,886
104,500
93,612
587,217
3,789,506
491,370
240,529
224,782
202,800
695,971
671,926
91,942
625,530
27,349,788
2,698,777
900,531
667,420
1,362,942
1,426,765,869
During the year, a total of 2,800,000 ex-employees’ performance rights were cancelled. The Company issued a total of 15,000,000 performance
rights to the Managing Director, 27,000,000 performance rights to the Non-executive Directors and 51,600,000 performance rights to certain
employees pursuant to the Altech Batteries Limited Performance Rights Plan.
At 30 June 2023, the Company had the following unlisted performance rights on issue:
Performance rights - managing director (exercise price: nil)
Performance rights - employees (exercise price: nil)
Performance rights - non-executive directors (exercise price: nil)
Total performance rights on issue at 30 June 2023
30,000,000
57,850,000
33,000,000
120,850,000
- 37 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
17. Contributed Equity (continued)
(b) Performance Rights (continued)
At 30 June 2022, the Company had the following unlisted performance rights on issue:
Performance rights - managing director (exercise price: nil)
Performance rights - employees (exercise price: nil)
Performance rights - non-executive directors (exercise price: nil)
Total performance rights on issue at 30 June 2022
15,000,000
9,050,000
6,000,000
30,050,000
Each performance right converts to one fully paid ordinary share of the Company and the conversion of each performance right is subject to
the holder attaining certain pre-determined vesting conditions.
(c) Listed Options
The Company did not issue any listed options during the reporting period (2022: nil). At 30 June 2023, the Company did not have any listed
options on issue (2022: nil).
(d) Unlisted Options
The Company did not issue any unlisted options during the reporting period (2022: nil). At 30 June 2023, the Company did not have any
unlisted options on issue (2022: nil).
(e) Share Based Payments
Performance Rights
Share based payments expense relating to Managing Director and Non-Executive Directors during the year totalled $509,957 and $198,394
respectively (2022: $363,640 and $74,908 respectively).
In addition, share based payments expense relating to employees’ performance rights totalled $482,940 (2022: $145,079)
During the year, the Company cancelled 2,800,000 performance rights of ex-employees.
The fair value of the performance rights awarded during the period at the award date was calculated using the Black Scholes pricing model that
took into account the term, the underlying value of the shares, the exercise price, the expected dividend yield, the impact of dilution and the
risk-free interest rate. Inputs used for each series granted included:
Variable
Exercise price for the performance right
Market price for the shares at date of valuation / issue
Volatility of company share price
Dividend yield
Risk free rate
Expiry from date of grant (number of years)
Number of Rights issued
Performance Rights -
Valuation Assumptions
Directors
$0.00
$0.10
80.0%
0%
3.23% - 3.56%
5.00
93,600,000
The fair value of performance rights is estimated at the date of grant using a Black-Scholes valuation model taking into account the terms and
conditions upon which the performance rights were awarded, and the fair value of performance rights is re-assessed each balance date by
reference to the fair value of the performance rights at the time of award, adjusted for the probability of achieving the vesting conditions, which
may change from balance date to balance date and consequently impact the amount to be expensed via profit and loss account in future periods.
Vesting of the performance rights are subject to the attainment of the applicable performance milestones.
Performance Rights Plan
Altech Batteries Limited’s Performance Rights Plan (“Plan”) was approved by ordinary resolution at a General Meeting of shareholders on 5
November 2014 and re-approved by shareholders in General Meetings on 12 June 2018 and 29 November 2021. All eligible directors, executive
officers, employees and consultants of Altech Batteries Limited, who have been continuously employed by the Company are eligible to
participate in the Plan.
- 38 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
17. Contributed Equity (continued)
The Plan allows the Company to issue rights to eligible persons for nil consideration. The rights can be granted free of charge, vesting is subject
to the attainment of certain pre-determined conditions, and exercise is at a pre-determined fixed price calculated in accordance with the Plan.
The fair value of any performance rights issued by the Company during the reporting period is determined at the date of grant using a Black-
Scholes valuation model taking into account the terms and conditions upon which the performance rights are awarded. At each balance date
the fair value of all performance rights is re-assessed by reference to the fair value of the performance rights at the time of award, adjusting for
the probability of achieving the vesting conditions, which may change from balance sheet date and consequently impact the amount that is
expensed or reversed in the profit and loss account for the relevant reporting period.
During the year, the Company issued 15,000,000 performance rights (2022: 10,000,000 replacement performance rights) to the Managing
Director, 27,000,000 performance rights (2022: Nil) to the Non-executive Directors and 51,600,000 performance rights (2022: 5,750,000
performance rights) to certain employees pursuant to the Altech Batteries Limited Performance Rights Plan.
A total of 2,800,000 performance rights of ex-employees were cancelled during the year.
18. Reserves
Share based payments reserve
Foreign currency translation reserve
Carrying amount at the end of the year
Movements:
Share based payments reserve
Balance at the beginning of the period
Fair value of performance rights issued
Transferred to contributed equity – conversion of performance rights to
share capital
Expiration / forfeiture of performance rights
Balance at end of year
Foreign currency translation reserve
Balance at the beginning of the period
Foreign exchange movements on translation of subsidiary financial
statements
Balance at end of year
30-Jun-23
30-Jun-22
$
$
2,839,027
1,762,369
(1,016,467)
1,964,499
1,822,560
3,726,868
30-Jun-23
30-Jun-22
$
$
1,762,369
7,346,777
1,285,407
583,626
-
(3,569,500)
(208,749)
(2,598,534)
2,839,027
1,762,369
1,964,499
1,543,044
(2,980,966)
421,455
(1,016,467)
1,964,499
- 39 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
19. Financial Instruments
The Company's activities expose it to a variety of financial risks and market risks. The Company's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company.
(a) Interest rate risk
The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market, interest rates
and the effective weighted average interest rates on those financial assets, is as follows:
Weighted
Average
Effective
Interest
%
0.50%
Notes
2023
Financial Assets
Cash and cash equivalents
Trade and other receivables
Other non-current receivables
5(a)
6
13
Total Financial Assets
Financial Liabilities
Trade and other payables
Lease liabilities
Loans Payable
Total Financial Liabilities
0.00%
14
16
Funds Available at
a Floating
Interest Rate
$
Fixed
Interest
Rate
$
Assets/ (Liabilities)
Non Interest
Bearing
$
Total
$
3,571,159
-
-
3,571,159
-
-
-
-
-
-
-
-
34,442
4,244,005
4,278,447
-
2,884,702
2,596,055
5,480,757
6,326,018
-
3,571,159
2,884,702
2,596,055
9,051,916
6,326,018
34,442
4,244,005
6,326,018
10,604,465
Net Financial Assets/(Liabilities)
3,571,159
(4,278,447)
(845,261)
1,552,549
- 40 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
19. Financial Instruments (continued)
Weighted
Average
Effective
Interest
%
Notes
Funds Available at
a Floating
Interest Rate
$
Fixed
Interest
Rate
$
Assets/
(Liabilities) Non
Interest Bearing
$
Total
$
2022
Financial Assets
0.50%
10,912,939
Cash and cash equivalents
Trade and other receivables
Other non-current receivables
5(a)
6
13
Total Financial Assets
Financial Liabilities
Trade and other payables
14
0.00%
Lease liabilities
Total Financial Liabilities
-
-
10,912,939
-
-
-
-
-
-
-
89,926
89,926
-
502,908
7,208,984
7,711,892
412,222
412,222
10,912,939
502,908
7,208,984
18,624,831
412,222
89,926
502,148
Net Financial Assets/(Liabilities)
10,912,939
(89,926)
7,299,670
18,122,683
(b) Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date, is the carrying amount, net of any provisions
for doubtful debts, as disclosed in the balance sheet and in the notes to the financial statements.
The Company does not have any material credit risk exposure to any single debtor or group of debtors, under financial instruments entered into by it.
(c) Liquidity Risk
The Group has recuced liquidity risk due to the significant capital raisings post year-end. The Group’s objective is to maintain a balance between continuity
of development funding and flexibility through the use of available cash reserves. The following table discloses the maturity analysis of financial assets and
liabilities based on managements expectations:
Within 1 Year
2023
$
2022
$
Within 1-5 Years
2022
$
2023
$
Over 5 Years
2023
$
2022
$
Total
2023
$
2022
$
Consolidated Group
Financial Assets
Cash and cash
equivalents
Trade and other
receivables
Other non-current
receivables
3,571,159
10,912,939
2,884,702
502,908
2,596,055
-
Total Financial Assets
9,051,916
11,415,847
Financial Liabilities
Trade and other
Payables
Lease Liabilites
(6,326,018)
(412,222)
(34,442)
(55,394)
Loans Payable
(4,244,005)
-
Total Financial
Liabilities
Net Exposure
(10,604,465)
(467,616)
(1,552,549)
10,948,231
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,571,159
10,912,939
2,884,702
502,908
2,596,055
7,208,984
9,051,916
18,624,831
(6,326,018)
(412,222)
(34,442)
(89,926)
(4,244,005)
-
(10,604,465)
(502,148)
(1,552,549)
18,122,683
-
-
7,208,984
7,208,984
-
(34,532)
-
(34,532)
7,174,452
-
-
-
-
-
-
-
-
-
- 41 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
19. Financial Instruments (continued)
(d) Net Fair Values
For assets and other liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised
markets in standardised form. The Company has no financial assets where the carrying amount exceeds net fair values at balance date.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and in the notes to the
financial statements.
(e) Foreign Exchange Risk
The Group has exposures arising from transactions that are denominated in Euro’s and Malaysian Ringit. The Group holds cash and bank balances
denominated in Euro and Malaysian Ringitt for working capital purposes. Consequently, the Group is exposed to movements in foreign currency exchange
rates. The Group does not use any financial derivatives such as foreign currency forward contracts, foreign currency options or swaps for hedging purposes.
20. Accumulated losses
Carrying amount at the beginning of the period
Profit (loss) for the period
Expiration of performance rights
Carrying amount at the end of the year
21. Auditors' remuneration
Audit - Moore Australia Audit (WA)
Audit and review of the financial reports
22. Related Parties
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
30-Jun-23
30-Jun-22
$
(30,604,494)
(59,717,465)
-
(90,321,959)
$
(27,473,110)
(5,729,919)
2,598,535
(30,604,494)
30-Jun-23
30-Jun-22
$
$
48,778
50,619
30-Jun-23
30-Jun-22
$
1,410,587
108,036
790,997
2,309,620
$
1,317,967
99,297
489,012
1,906,276
During the financial year there were no loans made or outstanding at year end (2022: nil)
Other transactions with key management personnel
The mother of Luke Atkins (non-executive chairman) is the owner of the office premises that the Company rents for its registered office and principal place
of business. During the year the Company paid $100,000 (2022:$100,000) rent and outgoings on normal commercial terms and conditions.
Other related party transactions
MIE Tech Sdn Bhd, a company controlled by Non-Executive Director, Tunku Yaacob Khyra, recharges RM52,800 monthly for secondment of Mr Uwe
Ahrens to the Group.
Altech Industries Germany GmbH and Altech Batteries GmbH each reimburses Altech Advanced Materials AG €1,900 monthly in relation to Mr Uwe
Ahrens’s remuneration for services rendered in Germany,
The Company pays Mr Uwe Ahrens €2,750 monthly for consultancy services performed in Germany.
The Company charges Altech Advanced Materials AG, 3% p.a interest on a quarterly basis, on balance of consideration (€1,583,333) for sale of 25% of
Altech Industries Germany AG.
Altech Advanced Materials AG have a receivable amount of 26,628 owing to the Group at year-end.
As per note 16 the Group has a loan of $4,244,055 owing to Altech Advanced Materials AG (AAM). It represents advances from AAM to Altech Industries
Germany GmbH (AIG) and to Altech Energy Holdings GmbH (AEH). Interest payable by AIG and AEH to AAM is 3.25% per annum on outstanding loan
amount.
- 42 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
23. Expenditure commitments
(a) Exploration
The Company has certain obligations to perform minimum exploration work on the various mineral leases that it holds. These obligations may vary over
time, depending on the Company's exploration programs and priorities. As at 30 June 2023, total exploration expenditure commitments on tenements held
by the Company have not been provided for in the financial statements and those which cover the following twelve month period amount to $228,000
(2022: $228,000). These obligations are also subject to variations, may be subject to farm-out arrangements, sale of relevant tenements or via application
for expenditure exemptions from prior-year commitments from the relevant government department.
(b) Loan Commitments
0n 1 May 2015, the Company entered into an Intercompany Loan Agreement (Agreement) with its 100% owned subsidiary Altech Chemicals Sdn Bhd
(ATCSB).
Under the terms of the Agreement:
•
The Company extends a loan facility up to the amount of $100,000,000 to provide funding to enable ATCSB to advance the development of a high
purity alumina manufacturing facility in Malaysia.
Interest payable is nil for the period up to and preceding the date at which ATCSB commences commercial production from its proposed high purity
alumina manufacturing facility.
From the date at which ATCSB commences commercial production from its proposed high purity alumina manufacturing facility, interest shall be
charged on the loan at an arms-length commercial rate of interest.
•
•
0n 1 April 2020, the Company entered into a Shareholder Loan Agreement with its 75% owned subsidiary Altech Industries Germany GmbH (AIG). On
29 December 2020, the Shareholder Loan Agreement was amended to include the party Altech Advanced Materials AG (AAM), the holder of the
remaining 25% in AIG.
Under the terms of the Shareholder Loan Agreement and as amended on 29 December 2020:
•
The Company extends a loan facility up to the amount of €50,000,000 to provide funding to enable AIG to advance the development of its operations
in Germany.
• AIG simultaneously and proportionally (75% to 25%) utilises the facility made available under the AAM Shareholder Loan Agreement. That is, funding
to be provided to AIG is allocated in the proportions of 75% by the Company and 25% by AAM.
• Under this agreement, interest payable is nil for the period up to and preceding the date at which AIG commences commercial production from its
proposed battery materials manufacturing facility.
• An Amendment Agreement was entered into by both parties on 11 November 2022, following which interest is payable by AIG at 3.25% on outstanding
loan amount.
0n 22 November 2022, the Company entered into a Shareholder Loan Agreement with its 75% owned subsidiary Altech Energy Holdings GmbH (AEH)
and AAM, the holder of the remaining 25% in AEH.
Under the terms of the Shareholder Loan Agreement:
•
The Company and AAM provides financing up to the amount of €15,000,000 to AEH proportionally (75% to 25%) to enable AEH to on-lend the funds
to its 75% owned subsidiary, Altech Batteries GmbH (ABG) for the development of a 100MWh battery production plant in Saxony, Germany.
Interest payable by AEH is 3.25% per annum on outstanding loan amount.
•
0n 6 December 2022, the Company’s 75% owned subsidiary, AEH entered into a Shareholder Loan Agreement with its 75% owned subsidiary Altech
Batteries GmbH (ABG).
Under the terms of the Shareholder Loan Agreement:
• AEH extends a loan facility up to the amount of €15,000,000 to enable ABG to advance the development of a 100MWh battery production plant in
Saxony, Germany.
Interest payable by ABG is 3.25% per annum on outstanding loan amount.
•
On 7 December 2022, the Company’s subsidiary ABG entered into a Research and Development Agreement with Fraunhofer-Institut Fur Keramische
Technologien Und Systeme IKTS (“Fraunhofer”) to develop battery systems for stationary energy storage based on sodium nickel chloride technology. The
aim is to bring the technology to commercial production through the development of a 100MWh battery production plant in Saxony, Germany. Under the
terms of the Research and Development Agreement:
• The project starts on 13 September 2022 and has an expected period of performance of 4 years.
• ABG makes quarterly payments up to a total combined amount of €13,600,000 for services performed by Fraunhofer, in accordance with an R&D
Payment Plan, over a period of 4 years commencing on 13 December 2022:
Payment
Instalment
(€ ‘mil)
0.360
0.360
0.560
0.660
1.020
1.020
1.370
0.700
1.150
0.900
0.700
0.700
0.550
0.550
1.500
1.500
Payment
Date
13.12
.2022
13.03
.2023
13.06
.2023
13.09
.2023
13.12
.2023
13.03
.2024
13.06
.2024
13.09
.2024
13.12
.2024
13.03
.2025
13.06
.2025
13.09
.2025
13.12
.2025
13.03
.2026
13.06
.2026
13.09
.2026
Payment
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
P11
P12
P13
P14
P15
P16
- 43 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
23. Expenditure commitments (continued)
• By mutual agreement, the timeline has been pushed back by one month, with the first payment being made in January 2023.
•
•
In the event that ABG fails to provide timely payment, Fraunhofer may terminate the R&D contract.
If commercialisation becomes unviable through outcome of a Definitive Feasibility Study, ABH may terminate the R&D contract.
Within 1 month from the complete performance of the project and full payment of the €13,600,000, Fraunhofer shall transfer the ownership of the
foreground IP in relation to the project to ABG.
(c) Capital commitments
EPC contracts for the construction of the Malaysian HPA plant and the Australian kaolin loading facility have been executed with SMS group GmbH and
Simulus Engineering Pty Ltd for prices of US$280 million and US$2.5 million respectively. Commitment to the contracted expenditure is subject to a number
of conditions being met including the securing of the total targeted project funding. As at 30 June 2023, the Company had no capital commitments in
relation either contract (2022: Nil). All works completed as stage 1 or stage 2 early works construction under the US$280 million SMS group GmbH contract
had been billed to the Company and paid as at 30 June 2023. As at 30 June 2023, no early works had been completed under the Simulus Engineering Pty
Ltd contract.
On 9 August 2022, the Company’s 75%-owned subsidiary, Altech Industries Germany GmbH entered into a Contract for Supplies and Services with Hatch
Kuttner GmbH (formerly Kuttner GmbH & Co) for the development of a battery materials pilot plant in Saxony Germany, for the price of €2,981,146. The
contract sum was subsequently varied to €4,074,828. As at 30 June 2023, the Group had capital commitments of $2,192,241. It is currently anticipated
that all of the commitment amounts will become payable during the subsequent financial year (2023/24).
24. Segment Information
The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision
makers) in assessing performance and determining the allocation of resources. The financial statements presented above are the same as the reports the
directors review.
Reportable Segments
The Group operates four reportable segments, being the development of Silumna Anodes™, CERENERGY® and High Purity Alumina (HPA) and Corporate,
which reflects the structure used by the Group’s management to assess the performance of the Group.
Silumina
Anodes™
$
CERENERGY®
$
High Purity
Alumina (HPA)
$
Corporate
$
Total
$
(i) Segment performance
Year ended 30 June 2023
Geographical
Revenue
Interest and other revenue
R&D tax refunds
Other income
Total Revenue
Result
Segment loss before tax
Income tax benefit
Share of loss of associate
Profit / (loss)
Segment assets
Segment liabilities
Germany &
Australia
Germany
Malaysia &
Australia
-
-
3,071
3,071
(3,358,396)
-
-
(3,358,396)
10,760,213
(6,302,801)
-
-
-
-
-
-
-
-
(2,788,129)
-
-
(2,788,129)
4,870,083
(2,312,129)
(47,691,414)
-
-
(47,691,414)
6,774,775
(29,796)
Australia
234,078
41,570
17,737
293,385
(8,220,099)
519,295
(241,130)
(7,941,934)
22,473,275
(2,358,562)
234,078
41,570
20,808
296,456
(62,058,038)
519,295
(241,130)
(61,779,873)
44,878,346
(11,003,288)
25. Employee entitlements and superannuation commitments
Employee Entitlements
Employee entitlements at 30 June 2023 are: Annual Leave Provision $225,022 (2022: $219,814) and Long Service Leave Provision $173,800 (2022:
$128,569).
Directors, officers, employees and other permitted persons’ Performance Rights Plan
Details of the Company's Performance Rights Plan are disclosed in the Remuneration Report.
- 44 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
25. Employee entitlements and superannuation commitments (continued)
Superannuation commitments
The Company contributes to individual employee accumulation superannuation plans at the statutory rate of the employees’ wages and salaries, in
accordance with statutory requirements, to provide benefits to employees on retirement, death or disability. Accordingly no actuarial assessment of the
plans is required.
Funds are available for the purposes of the plans to satisfy all benefits that would have been vested under the plans in the event of:
▪ termination of the plans;
▪ voluntary termination by all employees of their employment; and
▪ compulsory termination by the employer of the employment of each employee.
During the year employer contributions (including salary sacrifice amounts) to superannuation plans totalled $272,968 (2022: $156,933).
26. Contingent liabilities
There were no material contingent liabilities not provided for in the financial statements of the Group as at 30 June 2023 other than:
Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Group has an interest. The Group is unable to determine
the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Group or
its projects. Agreement is being or has been reached with various native title claimants in relation to Aboriginal Heritage issues regarding certain areas in
which the Group has an interest.
27. Events subsequent to balance date
Capital Raising
On 18 July 2023 the Company issued a Prospectus in relation to a pro-rata non-renounceable entitlement issue of one (1) Share for every eight (8) Shares
held by those Shareholders registered at the Record Date at an issue price of $0.07 per Share to raise up to $12,859,201.
On 21 July 2023, the Company issued 42,857,142 fully paid ordinary shares to professional and sophisticated investors at $0.07 per share, raising gross
proceeds from the share placement of $3.0 million.
On 11 August 2023, the Company issued 147,145,801 fully paid ordinary shares at $0.07 per share, raising gross proceeds of $10.3 million. The shares
were issued as part of the pro-rata non-renounceable entitlement issue pursuant to the Prospectus dated 18 July 2023.
On 17 August 2023, the Company issued 29,414,218 fully paid ordinary shares at $0.07 per share, raising gross proceeds of $2.06 million. The shares
were issued as part of the shortfall to the pro-rata non-renounceable entitlement issue pursuant to the Prospectus dated 18 July 2023. In addition, the
Company intends to issue an additional 7,142,857 shortfall fully paid ordinary shares at $0.07 per share, to raise gross proceeds of $0.5 million. The
Company will issue these additional 7,142,857 shortfall shares subject to receiving shareholder approval at the Annual General Meeting to be held on 27
October 2023.
Further, there has not arisen since the end of the financial year any other item, transaction or event of a material and unusual nature likely, in the opinion
of the directors of the Company to affect substantially the operations of the Group, the results of those operations or the state of affairs of the Group in
subsequent financial years.
- 45 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
28. Parent entity disclosure
STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
Non-Current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Non-Current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Accumulated losses
Share based payments reserve
TOTAL EQUITY
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Net profit / (loss)
Total comprehensive loss for the year
29. Controlled entities
Investments in controlled entities comprise:
Name
Altech Batteries Ltd
Wholly owned and/or controlled entities:
Altech Batteries GmbH
Altech Industries Germany GmbH
Altech Chemicals Sdn Bhd (Malaysia)
30-Jun-23
30-Jun-22
$
$
1,030,615
11,055,759
94,943,654
92,252,694
95,974,269
103,308,454
764,980
173,800
938,780
560,654
158,930
719,583
95,035,489
102,588,871
124,487,777
124,487,777
(32,291,315)
(23,661,275)
2,839,027
1,762,369
95,035,489
102,588,871
(8,630,039)
(4,394,441)
(8,630,039)
(4,394,441)
Beneficial percentage held by
economic entity
2023
%
2022
%
56
75
100
-
75
100
Principal activities
Parent entity
Grid-Storage Battery
Plant
Battery Materials
Plant
HPA Plant
Altech Meckering Pty Ltd
Altech Chemicals Australia Pty Ltd
Kaolin Mine
Intellectual
Property/Patent
Holder
Mineral exploration
Altech Chemicals Sdn Bhd is incorporated in Malaysia, Altech Batteries GmbH and Altech Industries Germany GmbH are incorporated in Germany, all other
controlled entities are incorporated in Australia. Altech Batteries Limited is the head entity of the consolidated group, which includes all of the controlled
entities.
Canning Coal Pty Ltd
100
100
100
100
100
100
- 46 -
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2023
30. Interests in other entities
Set out below is the summarised financial information for each subsidiary that has non-controlling interests that are material to the Group, before any
intragroup eliminations.
Altech Industries Germany
GmbH
Altech Energy Holdings GmbH
Altech Batteries GmbH
2023
$
2022
$
2023
$
2022
$
2023
$
2022
$
Summarised Financial Position
Current assets
Non-current assets
Current liabilities
2,239,092
188,920
8,499,164
2,817,713
(3,647,767)
(411,750)
119,867
5,487,747
(13,381)
Non-current liabilities
(11,326,648)
(2,895,579)
(5,623,174)
NET ASSETS
(4,236,159)
(300,696)
(28,942)
Carrying amount of non-
controlling interests
Summarised Financial
Performance
Revenue
142,804
-
Profit/(loss) after tax
(3,358,396)
(137,447)
Other comprehensive income
after tax
Total comprehensive income
-
-
-
-
42,093
(12.012)
-
-
Profit/(loss) attributable to
non-controlling interests
(839,599)
(72,510)
(3,003)
-
-
-
-
-
-
-
-
-
-
7,799,876
1,964,110
(2,308,313)
(5,491,563)
1,964,110
2,920
(2,788,129)
-
(2,788,129)
(1,219,806)
-
-
-
-
-
-
-
-
-
-
- 47 -
ALTECH BATTERIES LIMITED
DIRECTORS’ DECLARATION
For the year ended 30 June 2023
The Directors of the Company declare that:
1. The financial statements and note, as set out on pages 1-47, are in accordance with the Corporations Act 2001:
(a)
comply with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements, constitutes
compliance with International Financial Reporting Standards (IFRS); and
(b) give a true and fair view of the financial position as at 30 June 2023 and of the performance for the year
ended on that date of the consolidated group.
2. The Managing Director and Chief Financial Officer have given the declaration required by s295A of the Corporations Act 2001.
3. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when
they become due and payable.
This declaration is made in accordance with a resolution of the board of directors and is signed by authority for and on behalf of
the directors by:
Iggy Tan
Managing Director
DATED at Perth this 19th day of September 2023
- 48 -
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTECH BATTERIES LIMITED
Report on the Audit of the Financial Report
Opinion
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
We have audited the financial report of Altech Batteries Limited (the Company) and its subsidiaries (the
“Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards)
(the “Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our
other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the time
of this auditor’s report.
Key Audit Matters
We have determined the matters described below to be the key audit matters to be communicated in
our report.
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
- 49 -
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTECH BATTERIES LIMITED (CONTINUED)
Key Audit Matters (continued)
Carrying value of Property, Plant and Equipment & Capitalised Development Expenditure (relating to the
High Purity Alumina HPA Project)
Refer to Note 1(f & i), Note 7 Property Plant Equipment & Note 10 Development Expenditure
Property, plant and equipment (PPE as disclosed
in Note 7 and capitalised development
expenditure (DE) in Note 10 represented a
significant balance prior
impairment
recorded in the period.
the
to
These assets were predominantly related to the
preliminary and design costs, stage one and two
development costs of the Company’s High Purity
Alumina (HPA) Project which comprises the
proposed construction and operation of a HPA
processing plant located in Malaysia.
The evaluation of the recoverable amount of
these assets requires significant judgment in
determining the key assumptions supporting the
expected future cash flows of the business and
the utilisation of the relevant assets. A valuation
was performed in the period and the Malaysian
development costs and plant & equipment were
written down to nil.
Group’s ability to continue as a Going Concern
Refer to Note 1(j)
The financial statements are prepared on a going
concern basis in accordance with AASB 101
Presentation of Financial Statements. The
Group continues to incur significant operating
losses in its ongoing efforts to advance the
development of its Battery Minerals Project. As
the directors’ assessment of the Group’s ability to
continue as a going concern is subject to
significant
identified going
concern as a significant risk requiring special
audit consideration.
judgement, we
Our procedures included, amongst others:
• Capitalised PPE and DE costs were formally impairment
tested by management at 30 June 2023 through the use of
a third party valuation. This resulted in the Malaysian
Development costs and property, plant and equipment being
written down to nil. We reviewed and discussed this
impairment assessment.
• Assessing the appropriateness of the relevant disclosures
included in Notes 8 & 11 to the financial report.
• Reviewed the remaining balance relating to the project,
being the lease of the land as per note 8 and assessed for
impairment.
• Assessed the credentials of the independent valuer, their
underlying assumptions and method of valuation.
Our audit procedures included, amongst others, the following:
• An evaluation of the directors’ assessment of the Group’s
ability to continue as a going concern. In particular, we
reviewed budgets and cashflow forecasts for at least the
next 12 months and reviewed and challenged the directors’
assumptions.
• Reviewed plans by the directors to defer certain payments
and secure additional funding through either the issue of
further shares and/or debt funding or a combination thereof.
• An evaluation of the directors plans for future operations
and actions in relation to its going concern assessment,
taking into account any relevant events subsequent to the
year end, through discussion with the directors.
• Review of disclosure in the financial statements to ensure
appropriate.
Based on our work, we agree with the directors’ assessment
that the going concern basis of preparation is appropriate.
- 50 -
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTECH BATTERIES LIMITED (CONTINUED)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2023, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located on the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf This description forms part of our auditor’s
report.
- 51 -
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTECH BATTERIES LIMITED (CONTINUED)
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report as included in the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Altech Batteries Limited, for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
SHAUN WILLIAMS
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 20th day of September 2023.
- 52 -
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
The board of directors of Altech Batteries Limited (“ATC”) is committed to conducting the Company’s business in accordance
with the highest standards of corporate governance. The board is responsible for the Company’s Corporate Governance
and the governance framework, policy and procedures, and charters that underpin this commitment. The board ensures that
the Company complies with the corporate governance requirements stipulated in the Corporations Act 2001 (Cth), the ASX
Listing Rules, the constitution of the Company and any other applicable laws and regulations.
The table below summarises the Company’s compliance with the ASX Corporate Governance Councils Corporate
Governance Principles and Recommendations (4th Edition), in accordance with ASX Listing Rule 4.10.3.
Principles and Recommendations
Disclosure
Compliance
Principle 1 – Lay solid foundations for management and oversight
1.1 A listed entity should disclose:
These matters are disclosed in the Company’s
Board Charter, which is available on the
Company’s website
Complies
Complies
Complies
Complies
Complies
When a requirement arises for the selection,
nomination and appointment of a new directs, the
board forms a sub-committee that is tasked with
this process, and includes undertaking
appropriate checks and any potential candidates.
When directors retire and nominate for re-election,
the board does not endorse a director who has
not satisfactorily performed their role.
The company executes a letter of appointment
with each director and services agreements with
senior executives.
The Company Secretary reports to the chair of the
board on all matters to do with the proper function
of the board.
Due to its size and limited scope of operations, the
Company does not currently have a diversity
policy.
Does not comply
The Company does not yet collect diversity data
sets for employees, management or Board. We
understand that diversity encompasses a wide
range of dimensions, including age, sex, ethnicity
and other characteristics that contribute to an
inclusive and diverse workforce.
As the Company's activities increase in size,
scope and/or nature, the board will consider the
appropriateness of adopting a diversity policy.
(a) the respective roles and responsibilities of
its board and management; and
(b) those matters expressly reserved to the
board and those delegated to management
1.2 A listed entity should:
(a) undertake appropriate checks before
appointing a director or senior executive or
putting someone forward for election as a
director; and
(b) provide security holders with all material
information in its possession relevant to a
decision on whether or not to elect or re-
elect a Director
1.3 A listed entity should have a written agreement
with each director and senior executive setting
out the terms of their appointment.
1.4 The company secretary of a listed entity should
be accountable directly to the board, through
the chair; on all matters to do with the proper
functioning of the board.
1.5 A listed entity should:
(a) have and disclose a diversity policy;
(b)
through its board or a committee of the
board set measurable objectives for
achieving gender diversity in the
composition of its board, senior executives
and workforce generally; and
(c) disclose in relation to each reporting
period:
(1)
(2)
the measurable objectives set for that
period to achieve gender diversity;
the entity’s progress towards
achieving those objectives; and
(3) either:
(A)
the respective proportions of
men and women on the board,
in senior executive positions
and across the whole workforce
(including how the entity has
defined “senior executive” for
these purposes); or
if the entity is a “relevant
employer” under the Workplace
Gender Equality Act, the entity’s
most recent “Gender Equality
Indicators”, as defined in and
published under the Act.
(B)
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
Principles and Recommendations
1.6 A listed entity should:
(a) have and disclose a process for
periodically evaluating the performance of
the board, its committees and individual
directors; and
(b) disclose for each reporting period whether
a performance evaluation has been
undertaken in accordance with that
process during or in respect of that period.
1.7 A listed entity should:
(a) have and disclose a process for evaluating
the performance of senior executives at
least once every reporting period; and
(b) disclose for each reporting period whether
a performance evaluation has been
undertaken in accordance with that
process during or in respect of that period.
Disclosure
Compliance
Complies
The board currently undertakes, on an annual
basis, an internal formal evaluation of the
performance of the board and individual directors.
In addition to this, the Chairman provides informal
feedback to individual board members on their
performance and contribution to board meetings,
on an ongoing basis.
The performance of all senior executives is
evaluated on an annual basis by the Managing
Director and in the case of the Managing Director,
by the board.
Complies
Principle 2 – Structure the board to be effective and add value
2.1 The board of a listed entity should:
Does not comply
(a) have a nomination committee which:
(1) has at least three members, a majority
of whom are independent directors;
and
(2) is chaired by an independent Director;
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendances of the members
at those meetings; or
(b) if it does not have a nomination committee,
disclose that fact and the processes it
employs to address board succession
issues and to ensure that the board has
the appropriate skills, knowledge,
experience, independence and diversity to
enable it to discharge it duties and
responsibilities effectively.
2.2 A listed entity should have and disclose a board
skills matrix setting out the mix of skills that the
board currently has or is looking to achieve in its
membership.
2.3 A listed entity should disclose:
(a) the names of the directors considered by
the board to be independent directors;
(b) if a director has an interest, position or
relationship of the type described in Box
2.3 but the board is of the opinion that it
does no compromise the independence of
the director, the nature of the interest,
position or relationship in question and an
explanation of why the board is of that
opinion; and
(c) the length of service of each director.
Due to its size and limited scope of operations, the
Company does not currently have a nomination
committee, however board sub-committees are
formed, as required, to manage matters that would
normally be dealt with by a formally constituted
nomination committee, as was the case with the
search and appointment of the current Managing
Director.
As the Company's activities increase in size,
scope and/or nature, the board will consider the
appropriateness of a nomination committee.
A copy of the board skill matrix is appended to
this Corporate Governance Statement.
Complies
Mr Peter Bailey is considered by the board to be
an independent director and this is disclosed on
the Company web site and in its annual and half-
yearly director reports.
Complies
The length of service of each director is disclosed
in the Company’s annual and half yearly director
reports and in notices of meetings when directors
are nominated for re-election.
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
Principles and Recommendations
Disclosure
Compliance
2.4 A majority of the board of a listed entity should
be independent directors.
Mr Peter Bailey is the only independent member
of the Company’s board.
2.5 The chair of the board of a listed entity should
be an independent director and, in particular;
should not be the same person as the CEO of
the entity.
Mr Luke Atkins is the Chairman and is not an
independent Non-Executive Director.
2.6 A listed entity should have a program for
inducting new directors and for periodically
reviewing whether there is a need for existing
directors to undertake professional development
to maintain the skills and knowledge needed to
perform their role as directors effectively.
The Company Secretary and Managing Director
ensure the comprehensive induction of all new
directors to the Company, this includes site visits,
presentations and meetings with executives.
All directors are afforded opportunities for ongoing
professional development at Company expense.
Principle 3 – Instil a culture of acting lawfully, ethically and responsibly
Does not comply however the
board is of the view that the skills
and experience of the directors
allow the board to act in the best
interests of shareholders and is
appropriate for the size of the
Company.
Does not comply, however the
board is of the view that this is
appropriate for the Company,
considering its size and stage of
development.
Complies
3.1 A listed entity should articulate and disclose its
values
3.2 A listed entity should:
(a) have and disclose a code of conduct for its
directors, senior executives and
employees; and
(b) ensure that the board or a committee of
the board is informed of any material
breaches of that code.
3.3 A listed entity should:
(a) have and disclose a whistleblower policy;
and
(b) ensure that the board or a committee of
the board is informed of any material
incidents reported under that policy
3.4 A listed entity should:
(a) have and disclose an anti-bribery and
corruption policy; and
(b) ensure that the board or a committee of
the board is informed of any material
breaches of that policy
The Board is committed to the development of a
statement of values.
Does not Comply
The Company code of conduct is available on the
Company web site.
Complies
The Company’s Whistleblower Policy is available
on the Company web site as well as company
intranet.
Complies
An anti-bribery and corruption policy is available
on the Company web site
Complies
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
Principles and Recommendations
Disclosure
Compliance
Principle 4 – Safeguard the integrity of corporate reports
4.1 The board of a listed entity should:
(a) have an audit committee which:
(1) has at least three members, all of
whom are non-executive directors
and a majority of whom are
independent directors; and
is chaired by an independent
director; who is not the chair of the
board,
(2)
Audit and Risk Management Committee has been
formed. The Audit and Risk Management
Committee Charter is available on the Company’s
website.
Complies
and disclose:
(3)
(4)
(5)
the charter of the committee
the relevant qualifications and
experience of the members of the
committee; and
in relation to each reporting period,
the number of times the committee
met throughout the period and the
individual attendances of the
members at those meetings; or
(b) if it does not have an audit committee,
disclose that fact and the processes it
employs that independently verify and
safeguard the integrity of its corporate
reporting, including the processes for the
appointment and removal of the external
auditor and the rotation of the audit
engagement partner.
4.2 The board of a listed entity should, before it
approves the entity’s financial statements for a
financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial
records of the entity have been properly
maintained and that the financial statements
comply with the appropriate accounting standards
and give a true and fair view of the financial
position and performance of the entity and that
the opinion has been formed on the basis of a
sound system of risk management and internal
control which is operating effectively.
4.3 A listed entity should disclose its process to
verify the integrity of any periodic corporate
report it releases to the market that is not
audited or reviewed by an external auditor.
Principle 5 – Make timely and balanced disclosure
The board does receive a statement signed by the
Managing Director and the Chief Financial Officer.
Complies
This process is currently being documented. Once
this documentation is complete, a copy of the
process will be available on the Company
website.
Does not comply
5.1 A listed entity should have and disclose a
written policy for complying with its continuous
disclosure obligations under listing rules 3.1
The Company does have a Continuous Disclosure
policy, which is available on the Company web
site.
5.2 A listed entity should ensure that its board
receives copies of all material market
announcements promptly after they have been
made
5.3 A listed entity that gives a new and substantive
investor or analyst presentation should release
a copy of the presentation materials on the ASX
Market Announcements Platform ahead of the
presentation
The board does receive copies of all market
announcement, whether material or not,
immediately after lodgement with the market.
All new and substantive investor or analyst
presentations are released to ASX ahead of
presentation.
Complies
Complies
Complies
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
Principles and Recommendations
Disclosure
Compliance
The company does provide information about its
governance on the Company’s web site.
Complies
The Company has implemented an investor
relations program targeting retail investors and
encourages all investors or potential investors
to communicate with the Company via its web
site.
The Company Shareholder Communication
Policy is available on the Company web site.
For the first time, the company would be hosting
the 2023 AGM online through its share registry
platform.
All resolution at the Company’s 2022 annual
general meeting of shareholders were determined
by poll
Security holder can elect to receive
communications from the Company electronically
either by contacting the Company’s share
registrar, or the Company directly.
Complies
Complies
Complies
Complies
The Board has approved the formation of an Audit
and Risk Management Committee. The Audit and
Risk Management Committee Charter is available
on the Company’s website.
Complies
Principle 6 – Respect the rights of security holders
6.1 A listed entity should provide information about
itself and its governance to investors via its
website.
6.2 A listed entity should have an investor relations
program that facilitates effective two-way
communication with investors.
6.3 A listed entity should disclose how it facilitates
and encourages participation at meetings of
security holders.
6.4 A listed entity should ensure that all substantive
resolutions at a meeting of security holders are
decided by a poll rather than by a show of
hands.
6.5 A listed entity should give security holders the
option to receive communications from, and
send communications to, the entity and its
security registry electronically.
Principal 7 – Recognise and manage risk
7.1 The board of a listed entity should:
(a) have a committee or committees to
oversee risk, each of which:
(1) has at least three members, a majority
of whom are independent directors;
and
(2) is chaired by an independent director
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendance of the members
at those meetings; or
(b) if it does not have a risk committee or
committees that satisfy (a) above, disclose
that fact and the processes it employs for
overseeing the entity’s risk management
framework.
7.2 The board or a committee of the board should:
(a) review the entity’s risk management
The board reviews the management framework
annually.
Complies
framework at least annually to satisfy itself
that it continues to be sound and that the
entity is operating with due regard to the
risk appetite set by the board; and
(b) disclose, in relation to each reporting
period, whether such a review has taken
place.
7.3 A listed entity should disclose:
(a) if it has an internal audit function, how the
function is structured and what role it
performs; or
(b) if it does not have an internal audit
function, that fact and the processes it
employs for evaluating and continually
improving the effectiveness of its
governance, risk management and internal
control processes.
The Company does not currently have an internal
audit function. The board considers that the
Company is not of a size that currently warrants
an internal audit function.
Does not comply.
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
Principles and Recommendations
Disclosure
Compliance
From 2023 onwards, the Company will be
including Environmental, Social & Governance
(ESG) Report as part of the Annual Report.
Complies
Partly Complies
The Company has set up a Remuneration
Committee which has four members comprising
the Non-Executive Chairman, two Non-Executive
Directors and the Managing Director. Only one
director is considered independent and the
Remuneration Committee is not chaired by an
independent director.
7.4 A listed entity should disclose whether it has
any material exposure to environmental or
social risks and, if it does, how it manages or
intends to manage those risks.
Principle 8 – Remunerate fairly and responsibly
8.1 The board of a listed entity should:
(a) have a remuneration committee which::
(1) has at least three members, a majority
of whom are independent directors;
and
(2) is chaired by an independent director
and disclose
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendance of the members
at those meetings; or
(b) if it does not have a remuneration
committee, disclose that fact and the
processes it employs for setting the level
and composition of remuneration for
directors and senior executives and
ensuring that such remuneration is
appropriate and not excessive.
8.2 A listed entity should separately disclose its
policies and practices regarding the
remuneration of non-executive directors and the
remuneration of executive directors and other
senior executives.
8.3 A listed entity which has an equity-based
remuneration scheme should:
(a) have a policy on whether participants are
permitted to enter into transactions
(whether through the use of derivatives or
otherwise) which limit the economic risk of
participating in the scheme; and
(b) disclose that policy or a summary of it
Complies
Complies
The Company discloses its practices in relation to
the remuneration of non-executive directors,
executive directors and senior executives in its
annual remuneration report.
The company’s Security Trading Policy obliges all
directors, officers and employees of the Company
to advise the Company, via the company
secretary, or any securitisation of Company
securities. A copy of the policy is available on the
Company’s web site.
As at the date of this statement the company
secretary has not been advised by an officer or
employee of the Company of any securitisation of
Company securities that they own.
As the Company's activities increase in size, scope and/or nature, the Company's corporate governance principles will be
reviewed by the board and amended as appropriate.
Further details of the Company's corporate governance policies and practices are available on the Company's website at
www.altechgroup.com.
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2023
Board experience, skills and attributes matrix
Experience, skills and attributes
Total directors
Experience
Corporate leadership
International experience
Resources Industry experience
Other board level experience
Capital projects experience
Equity and debt raising / capital markets
Batteries and/or chemicals industry experience
Knowledge and skills
Legal
Minerals and/or chemicals processing
Engineering and project development
Finance and Accounting
Tertiary qualifications
Law
Engineering
Commerce/Business
Altech Batteries Limited board
6
6
6
5
6
6
6
5
1
4
4
3
1
4
2
ALTECH BATTERIES LIMITED
ASX ADDITIONAL INFORMATION
For the year ended 30 June 2023
The shareholder information set out below was applicable as at 19 September 2023.
Altech Batteries Ltd has its registered office at Suite 8, 295 Rokeby Road, Subiaco, Western Australia, Australia, 6008. The telephone
number is +61 8 6168 1555. Altech shares are listed on the Australian Securities Exchange as well the Frankfurt Stock Exchange.
COMPANY SECRETARY
The name of the Company Secretary is Mr Martin Stein.
TWENTY LARGEST HOLDERS OF LISTED SECURITIES
The names of the twenty largest holders of each class of listed securities are listed below:
Ordinary Shares
Name
DEUTSCHE BALATON AKTIENGESELLSCHAFT
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
SMS INVESTMENTS S A
MAA GROUP BERHAD
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR KENNETH JOSEPH HALL
BNP PARIBAS NOMS PTY LTD UOB KH PL AC
LAKE MCLEOD GYPSUM PTY LTD
MR JOHN SMITH &
MS BARBARA SMITH
MR YUSUF KUCUKBAS
MR PETER JOSEPH BOURKE &
MRS KERRIE LEEANNE JONES
MR IAN EWART HALFORD
BNP PARIBAS NOMINEES PTY LTD
MR BASIL CATSIPORDAS
MR PETER HUA
MR PETER JOSEPH BOURKE
LJ & K THOMSON PTY LTD
Total Top 20
Others
Total Ordinary Shares on Issue
No of
Ordinary
Shares Held
225,719,835
102,928,401
80,744,322
75,989,860
57,418,528
48,616,267
35,324,154
Percentage
% of Issued
Shares
13.71%
6.25%
4.90%
4.62%
3.49%
2.95%
2.15%
34,484,190
14,000,000
2.09%
0.85%
11,874,282
0.72%
11,408,202
10,000,000
0.69%
0.61%
9,350,000
0.57%
7,573,000
0.46%
7,010,247
6,854,859
6,250,000
6,140,000
5,768,570
5,600,000
0.43%
0.42%
0.38%
0.37%
0.35%
0.34%
763,054,717
883,128,313
1,646,183,030
46.35%
53.65%
100.00%
ALTECH BATTERIES LIMITED
ASX ADDITIONAL INFORMATION
For the year ended 30 June 2023
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of security holders by size of holding as at 19 September 2023:
Ordinary Shares
Distribution
Number of
Shareholders Number of Shares
1
1,001
5,001
10,001
100,001
Totals
–
–
–
–
–
1,000
5,000
10,000
100,000
and over
207
348
1,286
3,944
1,694
7,479
16,462
1,494,942
10,551,034
162,881,214
1,471,239,378
1,646,183,030
% of Issued
Shares
0.00%
0.09%
0.64%
9.89%
89.37%
100.00%
SUBSTANTIAL SHAREHOLDERS
The names of the substantial shareholders listed in the holding Company's register as at 19 September 2023 are:
Substantial Shareholder
DEUTSCHE BALATON AKTIENGESELLSCHAFT
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
Number of
Shares
225,719,835
102,928,401
% of Issued
Shares
13.71%
6.25%
UNMARKETABLE PARCELS
The Company has 921 holders of unmarketable parcels, being a parcel of shares less than $500.
UNQUOTED SECURITIES
Altech has unquoted securities totalling 120,850,000 Performance Rights held by a total of 27 holders.
The names of the holders holding more than 20% of each class of unlisted securities are listed below:
Performance Rights
Holder
Managing Director Performance Rights
Ignatius Tan
VOTING RIGHTS
Number
30,000,000
Subject to any rights or restrictions for the time being attached to any shares or class of shares of the Company, each member of the
Company is entitled to receive notice of, attend and vote at a general meeting. Resolutions of members will be decided by a show of
hands unless a poll is demanded. On a show of hands each eligible voter present has one vote. However, where a person present at
a general meeting represents personally or by proxy, attorney or representative more than one member, on a show of hands the
person is entitled to one vote only despite the number of members the person represents.
On a poll each eligible member has one vote for each fully paid share held and a fraction of a vote for each partly paid share determined
by the amount paid up on that share.
ON-MARKET BUY BACK
There is currently no on-market buyback program for any of Altech Batteries Limited’s listed securities.
EXPLORATION AND MINING INTERESTS
As at 30 June 2022, the Company has an interest in the following tenements:
Tenement ID
Registered Holder
Location
M70/1334
E70/4718-1
Altech Meckering Pty Ltd
Canning Coal Pty Ltd
WA Australia
WA Australia
Project
Meckering
Kerrigan
ATC
Interest
100%
100%
Grant Date
19/05/16
1/12/15