A N N U A L R E P O R T
2024
Limited
Altech Batteries
COMPANY PROFILE
ABOUT ALTECH BATTERIES LTD ASX: ATC / FRA: A3Y
®
CERENERGY BATTERIES PROJECT
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.
®
The joint venture is commercialising its CERENERGY battery, with plans to construct
a 120MWh 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.
®
Altech has now finalised the first CERENERGY ABS60 60kWh prototype, which is
operating better than expected. In addition, it recently announced a Letter of Intent for
sales offtake of 30MWh per annum with the Industrial Park of Swarze Pumpe.
TM
SILUMINA ANODES BATTERY MATERIALS PROJECT
Altech has licenced its proprietary high purity alumina coating technology to 75% owned
subsidiary Altech Industries Germany GmbH (AIG), which has finalised a Definitive
Feasibility Study for the development of a 8,000tpa silicon/graphite alumina coating plant
TM
in the state of Saxony, Germany to supply its Silumina Anodes product to the burgeoning
European electric vehicle market.
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 Company's
TM
proprietary silicon graphite product is registered as Silumina Anodes .
The Company is in the race to get its patented technology to market, has finalised the
TM
construction of a Silumina Anodes pilot plant at AIG's industrial site within the Schwarze
Pumpe Industrial Park in Saxony, Germany. The European silicon feedstock supply
partner for this plant will be Ferroglobe. The project has also received green accreditation
from the independent Norwegian Centre of International Climate and Environmental
Research (CICERO). The pilot plant adjacent to the proposed project site will allow the
TM
qualification process for its Silumina Anodes
product. AIG has executed NDAs with
German and American automakers as well as a European based battery company.
®
ALTECH
cerenergy
Silumina An desTM
“ALTECH IS A BATTERY ENERGY COMPANY
TO MEET A BATTERY STORAGE FUTURE” - IGGY TAN CEO
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.
TM
Ÿ
Silumina Anodes Battery Materials.
®
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.
®
The Definitive Feasibility Study in relation to the CERENERGY 120 MWh battery
plant was released in March 2024 and included pleasing economics. The Company
is now moving forward with the aim of executing a sales offtake agreement and
subsequent finance to construct the 120 MWh battery plant, to produce the
®
CERENERGY 1MWh GridPack battery, destined for the lucrative and growing grid
storage battery market.
Altech continued with the development and commercialisation of the Silumina
TM
Anodes Battery Materials Project in Saxony, Germany. Altech has finalised
TM
construction of the pilot plant to produce 120kg per day of Silumina Anodes for
distribution to potential customers that have already executed Non-Disclosure
Agreement, and is currently completing the commissioning of the pilot plant.
In conjunction with this, in December 2023 Altech released a Definitive Feasibility
Study for an 8,000tpa plant that included excellent economics including a net
present value of €684 million and an attractive internal rate of return of 34%. Altech
is now aiming to commission the pilot plant and provide commercial samples to
potential customers in order to secure sales.
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
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.
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).
IGNATIUS (IGGY) TAN
B.Sc. MBA, GAICD - Managing Director and Chief Executive Officer
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 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.
BOARD OF DIRECTORS
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 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.
SUMMARY
It is with pleasure that I provide a review of Altech's operations. The past year
®
enabled Altech to move forward with its CERENERGY Sodium Chloride Solid
State (“SCSS”) battery project destined for the grid storage battery market, as well
TM
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.
The principal activities of the Company during the financial year were:
a) All of the German battery plant suppliers were selected in order to
®
commercialise Fraunhofer's revolutionary CERENERGY Sodium
Chloride Solid State (SCSS) Battery.
®
b) CERENERGY Sodium Chloride Solid State (SCSS) Battery was
independently assessed by CICERO as exhibiting a minimum 50% lower
GHG emissions compared to lithium-ion batteries with a superior
environmental performance and footprint.
®
c) An upgrade to the CERENERGY Sodium Chloride Solid State (SCSS)
Battery output by 20% to 120 MWh per annum.
TM
d) Silumina Anodes project output was expanded eightfold from 15GWh to
120GWh by using silicon only feedstock, without any change to plant and
equipment used.
e) Completion of the Definitive Feasibility Study, with outstanding
economics, for the full-scale plant to produce 8,000tpa of Silumina
TM
Anodes in Saxony, Germany. Altech previously acquired an ~14Ha
industrial site in Saxony, Germany that is an ideal location for the full-scale
plant.
®
f)
Completion of the Definitive Feasibility Study for the CERENERGY
120MWh battery plant aimed to be constructed on Altech's land in Saxony,
Germany.
MANAGING DIRECTOR’S REVIEW OF OPERATIONS
®
g) Finalised fabrication of the first CERENERGY 120MWh battery
prototype, with the testing results reflecting better than expected results.
Iggy Tan
Managing Director and Chief Executive Officer
®
SCSS CERENERGY BATTERIES
®
Altech believes that Sodium Chloride Solid State (SCSS) 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.
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 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.
The joint venture partners are developing a 120 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 joint venture partners have completed the DFS required for the
commercialisation process. Altech is now moving forward with securing sales
offtake as well as finance to construct the 120 MWh plant on land that it owns in
Saxony, Germany.
®
CERENERGY SODIUM CHLORIDE SOLID STATE BATTERY
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.
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.
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 extremely low in
maintenance costs over the battery life.
TWO ABS60 60 kWh BATTERY PACK PROTOTYPES IN PRODUCTION
®
Altech has finalised the first prototype of the 60 kWh (ABS60) CERENERGY
battery pack at the Fraunhofer IKTS facility in Hermsdorf, Germany. The battery
pack is undergoing cycling testing under extreme conditions, and it will be available
for testing at customer premises.
Ceramic solid-state electrolyte at Fraunhofer pilot plant facility
SCSS individual cell rated at 2.58 V each
SCSS cell with positive and negative
SCSS cells in battery module
®
CERENERGY BATTERY SPECIFICATIONS 60 kWh BATTERY PACK
(ABS60)
The 60 kWh Battery Pack (ABS 60) 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.
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.
Note: A
AC conversion included, all permits on AC BMS included
Battery Type:
Battery Pack ABS 60
Sodium Nickel Chloride Solid State Battery
Application:
Power Grid Operation & Renewable Energy Storage
ABS 60 - Battery Pack
Dimensions
500mm x 2330mm x 1100mm
Weight:
͌ 800kg
Nom. Voltage:
600 V DC
Voltage Range:
410 V DC (min) to 670 V DC (max)
Current Capacity:
100Ah Nominal
Discharge Current:
cont. 25 A / trans. 33A
Internal Ops Temp.:
min. 270° C - max. 350° C
Ambient Ops Temp.:
~40° C to 60° C
IP Rating:
IP65
Nominal Energy Capacity: 60kWh
Operational SoC Range:
15% - 95% (80%)
C-Rate:
0.16C - 0.33C bi-directional
C-Rate Power Mode:
0.5C for 15 Minutes
24h Cycle Capacity:
Yes, continuous without interruptions
Cycle per day:
up to 3 @ 80%
Design Life:
>15 years
Warranty:
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
ABS 1000 - GridPack
Arrangement:
18 Battery Pack, with controller BMS
Dimensions:
Open standard high cube 20ft Container
Delivery:
20ft high cube container 2.4m x 5.9m x <27m
Weight:
<17t
Nom. Voltage:
600 V DC
Voltage Range:
410 V DC (min) to 670 V DC (max)
Current Capacity:
100Ah Nominal
Discharge Current:
cont. 25 A / trans. 33A
Internal Ops Temp.:
min. 270° C - max. 350° C
Ambient Ops Temp.:
~40° C to +60° C
IP Rating:
IP65, CE
Nominal Energy Capacity: 1MWh / nominal 1,08 MWh
Operational SoC Range:
15% - 95% (80%)
C-Rate:
0.16C - 0.33C bi-directional
C-Rate Power Mode:
0.5C for 15 Minutes
24h Cycle Capacity:
Yes, continuous without interruptions
Cycle per day:
up to 3 @ 80%
Design Life:
>15 years
Warranty:
5 years or 5000 cycles
· Safe, non-flammable, zero fire & explosion hazards
· No location limitation
· Stackable up to 3 GridPack
· Operates in any climate without external thermal management, forced
cooling
· Negligible maintenance costs
· Plug and play ready to operate
· High availability (>99%)
· Battery may be idle for any period of time and be restarted without any
capability loss
· Round-trip efficiency of avg. 90% (DC)
· Lowest levelized energy storage coasts
· Can be shipped fully assembled
GridPack USP - MACRO PARAMETERS
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.
TM
SILUMINA ANODES PROJECT
TM
The Silumina Anodes project involves coating silicon 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 in lithium-ion batteries, and has concluded a
TM
Definitive Feasibility Study for the construction of a 8,000tpa Silumina Anodes
plant in Saxony, Germany, that boasts an impressive NPV of €684M. As Altech
races to bring its patented technology to market, it has completed construction of a
pilot plant adjacent to the proposed project site to facilitate the qualification process
TM
for its Silumina Anodes product, and is now in the commissioning phase of the
pilot plant.
The pilot plant will also provide optimised inputs for the full-scale 8,000tpa
commercial plant design, and will produce customer samples for testing and
qualification.
Silumina An desTM
TM
SILUMINA ANODES FULL SCALE PLANT DEVELOPMENT
An outstanding Definitive Feasibility Study (“DFS”) for a full-scale plant to produce
TM
8,000tpa of Silumina Anodes has been completed. The DFS included a low
capital cost of €112 million, a pre-tax Net Present Value of €684 million and an
attractive Internal Rate of Return (IRR) of 34%. A summary of the key financial
metrics within the DFS is set out in the table below.
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
Altech has acquired an ~14Ha industrial site in Saxony, Germany, to house a full-
TM
scale plant for its Silumina Anodes project. Altech believes that the site is the ideal
location for a 8,000tpa HPA battery materials coating plant, as it is strategically
located to supply the European lithium-ion battery and EV markets.
Revenue (Project Life)
€
9,463.8
million
Costs (Project Life)
€
6,380.7
million
EBITDA (Project Life)
€
3,083.1
million
Revenue p.a.
€
328.0
million
Costs p.a.
€
222.4
million
EBITDA p.a.
€
105.6
million
NPV (pre-tax)
€
684.8
million
Discount Rate
10.0%
Payback
€
2.4
years
IRR (from construction start)
34.6%
IRR
48.4%
Project Capex
112.5
million
Corporate Costs
0.5
million
Opex p.a.
€
221.9
million
Exchange Rate
0.91
EUR/USD
Capex Exchange Rate
0.91
EUR/USD
Production
8,000
tonnes
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.
CORPORATE INFORMATION
Altech Batteries Limited
ABN 45 125 301 206
DIRECTORS
Luke Atkins
Chairman
Ignatius Tan
Managing Director
Daniel Tenardi
Non-executive Director
Peter Bailey
Non-executive Director
Tunku Yaacob Khyra Non-executive Director
Uwe Ahrens
Alternate Director
Hansjoerg Plaggemars Non-executive 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
www.altechgroup.com
Limited
Altech Batteries
ABN 45 125 301 206
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2024
CONTENTS
PAGE
DIRECTORS’ REPORT
1
AUDITOR’S INDEPENDENCE DECLARATION
15
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
17
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
18
CONSOLIDATED STATEMENT OF CASH FLOWS
19
NOTES TO THE FINANCIAL STATEMENTS
20
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
44
DIRECTORS’ DECLARATION
45
INDEPENDENT AUDITOR’S REPORT
46
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:
+61 8 6168 1555
Email:
info@altechgroup.com
Website:
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:
Perth
ASX Code: ATC (shares)
FWB Code:
A3Y
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 1 -
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 2024.
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 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
Mr Atkins was a co-founder of the Company, he is 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.
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.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 2 -
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 is a member of the board of Delphi Unternehmensberatung AG and previously of Deutsche Balaton AG (ATC major
shareholder) and 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, PNX Metals Limited and Patronus Resources 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, investor relations 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.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 3 -
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were:
a) All of the German battery plant suppliers were selected in order to commercialise Fraunhofer’s revolutionary CERENERGY®
Sodium Chloride Solid State (SCSS) Battery.
b) CERENERGY® Sodium Chloride Solid State (SCSS) Battery was independently assessed by CICERO as exhibiting a minimum
50% lower GHG emissions compared to lithium-ion batteries with a superior environmental performance and footprint.
c)
An upgrade to the CERENERGY® Sodium Chloride Solid State (SCSS) Battery output by 20% to 120 MWh per annum.
d) Silumina AnodesTM project output was expanded eightfold from 15GWh to 120GWh by using silicon only feedstock, without any
change to plant and equipment used.
e) Completion of the Definitive Feasibility Study, with outstanding economics, for the full-scale plant to produce 8,000tpa of Silumina
AnodesTM in Saxony, Germany. Altech previously acquired an ~14Ha industrial site in Saxony, Germany that is an ideal location
for the full-scale plant.
f)
Completion of the Definitive Feasibility Study for the CERENERGY® 120MWh battery plant intended to be constructed on
Altech’s land in Saxony, Germany.
g) Commenced fabrication of the two CERENERGY® 120MWh battery prototypes.
FINANCIAL POSITION & RESULTS OF OPERATIONS
The financial results of the Group for the financial year ended 30 June 2024 are:
2024
2023
$
$
Cash and cash equivalents
2,117,028
3,571,159
Net Assets
22,636,810
33,875,059
Revenue
256,766
296,456
Net profit /(loss) after tax
(32,293,676)
(61,779,873)
Profit / (Loss) per share
(0.026)
(0.060)
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 2024 enabled Altech to move forward with its CERENERGY® Sodium Chloride Solid State (“SCSS”) battery
project planned for the grid storage battery market, as well as its patented Silumina AnodesTM 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.
CERENERGY® SODIUM CHLORIDE SOLID STATE BATTERY PROJECT
SCSS CERENERGY® Batteries
Altech believes that Sodium Chloride Solid State (SCSS) 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 low input cost 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.
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 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.
The joint venture partners have elected to develop a 120 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 joint venture partners have completed the DFS required for the commercialisation process. Altech is now moving forward with securing
sales offtake as well as finance to construct the 120 MWh plant on land that it owns in Saxony, Germany.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 4 -
SILUMINA ANODESTM PROJECT
The Silumina AnodesTM project involves coating silicon 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 in lithium-ion batteries, and
has concluded a Definitive Feasibility Study for the construction of a 8,000tpa Silumina AnodesTM plant in Saxony. As Altech races to bring
its patented technology to market, it has completed construction of a pilot plant adjacent to the proposed project site to facilitate the
qualification process for its Silumina AnodesTM product, and is now in the commissioning phase of the pilot plant. The pilot plant will also
provide optimised inputs for the full-scale 8,000tpa commercial plant design, and will produce customer samples for testing and
qualification.
Silumina AnodesTM Full Scale Plant Development
An outstanding Definitive Feasibility Study (“DFS”) for a full-scale plant to produce 8,000tpa of Silumina AnodesTM has been completed.
The DFS included a low capital cost of €112 million, a pre-tax Net Present Value of €684 million and an attractive Internal Rate of Return
(IRR) of 34%.
Altech has acquired an ~14Ha industrial site in Saxony, Germany, to house a full-scale plant for its Silumina AnodesTM project. Altech
believes that the site is the ideal location for a 8,000tpa high purity alumina battery materials coating plant, as it is strategically located to
supply the European lithium-ion battery and EV markets.
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 24 permanent employees as at 30 June 2024 (2023: 19 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 7 August 2024, the Company announced a proposed capital raising of up to approximately $8.9 million, comprising the issue of up to
223,946,491 fully paid ordinary shares in the capital of the Company at an issue price of $0.04 per Share. Participants in the entitlement
offer will also receive free attaching options on the basis of one (1) option for every two (2) shares held, with each option having an exercise
price of $0.06 and expiry date of 31 December 2025. The prospectus for the capital raising was lodged with ASIC and ASX on the same
date.
The Capital Raising exercise had been completed with the following outcomes:
▪
a single tranche placement of 10,125,000 shares to sophisticated and professional investors at an issue price of $0.04 per share
was completed and raised $405,000. The fully paid ordinary shares under the placement were issued and allotted on 15 August
2024. A total of 4,562,500 free attaching options in relation to the share placement were also issued and allotted on 17 September
2024. Each option had an exercise price of $0.06 and expiry date of 31 December 2025.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 5 -
EVENTS SUBSEQUENT TO BALANCE DATE (continued)
▪
a non-renounceable entitlement offer of 1 share for every 8 shares held by eligible shareholders at the same issue price as the
placement of $0.04, raised $6,473,693. 161,842,312 fully paid ordinary shares under the entitlement offer was issued and allotted
on 17 September 2024. This included the amount of $5,000,000 underwritten by Altech Director Tunku Yaacob Khyra’s related
entity, MAA Group Berhad (124,999,700 shares which included MAA Group Berhad taking up its entitlement under the entitlement
offer). Under the terms of the underwriting agreement with MAA Group Berhad, the Company will pay MAA Group Berhad a fee of
6% of the amount underwritten. A total of 80,921,451 free attaching options in relation to the entitlement offer were also issued and
allotted on 17 September 2024. Each option had an exercise price of $0.06 and expiry date of 31 December 2025.
▪
On 17 September 2024, the Company issued and allotted 1,351,352 fully paid ordinary shares at a volume weighted price of $0.037
per share to Spark Plus Pte Ltd as consideration for the provision of investor relations services.
First Offtake Letter of Intent for Cerenergy® GridPacks
Altech’s subsidiary, Altech Batteries GmbH executed an Offtake Letter of Intent (“LOI”) between Zweckverband Industriepark Schwarze
Pumpe (“ZISP”) on 12 September 2024. Under the LOI, ZISP will purchase 30 MWh of energy storage capacity annually, consisting of
1MWh GridPacks, for the first 5 years of production. The price of these batteries has been agreed and aligned to Altech’s Definitive
Feasibility Study assumptions. The purchase of these batteries is subject to performance tests, battery specifications and the batteries
meeting customer requirements.
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 2023 and up until the date of this report the Company had not issued any new options (2023: 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.
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
5,000,000
Nil
Nil
5,000,000
11/6/25
Managing Director
10,000,000
Nil
Nil
10,000,000
29/11/26
Managing Director
15,000,000
Nil
Nil
15,000,000
11/5/28
Non-executive Directors
6,000,000
Nil
Nil
6,000,000
26/11/25
Non-executive Directors
27,000,000
Nil
Nil
27,000,000
11/5/28
Employees
500,000
Nil
Nil
500,000
27/9/25
Employees
4,750,000
Nil
Nil
4,750,000
31/1/28
Employees
47,400,000
Nil
Nil
47,400,000
11/5/28
Employees
3,600,000
Nil
Nil
3,600,000
11/5/28
Total
119,250,000
Nil
Nil
119,250,000
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.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 6 -
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 has finalised the Definitive Feasibility
Study (“DFS”) in relation to the 120 MWh plant, planned to be constructed on Altech’s land. The Company now 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 has finalised 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 has finalised the Definitive Feasibility Study in relation to a full-scale 8,000tpa Silumina AnodesTM plant
with excellent results.
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%.
Development Risk
The proposed 120 MWh battery plant, as well as a 8,000tpa battery materials plant, construction and operation activities are a high-risk
undertaking.
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 2024 has not identified any material issues. The table below sets out the Mineral
Resources and Ore Reserves comparatives as at 30 June 2024 and 30 June 2023.
Meckering kaolin (aluminous clay) deposit
Mineral Resource estimate (JORC 2012)
as at 30 June 2024
Mineral Resource estimate (JORC 2012)
as at 30 June 2023
Classification
In Fraction < 300µ
In Fraction < 300µ
Tonnes
Al2 O3
%
Fe2O3
%
TiO2
%
Yield
%
Tonnes
Al2 O3
%
Fe2O3
%
TiO2
%
Yield
%
Measured
1,500,000
30.0
1.01
0.62
69
1,500,000
30.0
1.01
0.62
69
Indicated
3,300,000
30.0
0.97
0.61
69
3,300,000
30.0
0.97
0.61
69
Inferred
7,900,000
29.1
1.0
0.63
69
7,900,000
29.1
1.0
0.63
69
Total Mineral Resources*
12,700,000
29.5
0.99
0.62
69
12,700,000
29.5
0.99
0.62
69
* rounded to the nearest one hundred thousand tonnes
Notes:
1.
The minus 45 micron percentage was measured by wet screening
2.
Brightness is the ISO brightness of the minus 45 micron material
Mineral Reserve estimate (JORC 2012)
as at 30 June 2024
Mineral Reserve estimate (JORC 2012)
as at 30 June 2023
Classification
Tonnes
Al2 O3
%
Fe2O3
%
TiO2
%
K2O
%
Yield
%
Tonnes
Al2 O3
%
Fe2O3
%
TiO2
%
K2O
%
Yield
%
Proven
454,000
30.1
0.9
0.6
0.5
69
454,000
30.1
0.9
0.6
0.5
69
Probable
770,000
30.0
0.9
0.6
0.4
71
770,000
30.0
0.9
0.6
0.4
71
Total Proven & Probable*
1,224,000
30.0
0.9
0.6
0.4
70
1,224,000
30.0
0.9
0.6
0.4
70
* rounded to the nearest one thousand tonnes
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 7 -
MINERAL RESOURCE STATEMENT AND MINERAL RESOURCE ORE RESERVE ESTIMATION GOVERNANCE STATEMENT
(continued)
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 Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists 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 2024 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 2024 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
Interest in Ordinary
Shares
Interest in Listed
options
Interest in Unlisted
Options
Interest in
Performance Rights
Ignatius Tan
7,940,000
-
-
30,000,000
Luke Atkins
11,450,845
-
153,846
4,000,000
Daniel Tenardi
5,809,200
-
-
4,000,000
Peter Bailey
3,774,710
-
-
4,000,000
Tunku Yaacob Khyra
209,034,225
62,499,851
-
4,000,000
Uwe Ahrens
1,000,000
-
-
13,000,000
Hansjoerg Plaggemars
-
-
-
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:
Director
Board of Director Meetings
Audit Committee
Renumeration Committee
Meetings
Attended
Meetings held
whilst a
director
Meetings
Attended
Meetings
held whilst
a director
Meetings
Attended
Meetings
held whilst
a director
Luke Atkins
4
4
N/A
N/A
1
1
Ignatius Tan
4
4
1
1
1
1
Daniel Tenardi
4
4
1
1
1
1
Peter Bailey
4
4
1
1
1
1
Tunku Yaacob Khyra
-
4
N/A
N/A
N/A
N/A
Uwe Ahrens (alternate director)
4
4
N/A
N/A
N/A
N/A
Hansjoerg Plaggemars
4
4
1
1
N/A
N/A
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 8 -
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 2023 Annual General Meeting
The Company received 8,581,433 proxy votes (2.1%) against its 2023 remuneration report (from the 408,681,649 proxy votes received
and eligible to vote on the resolution) tabled at the 2023 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)
2024
2023
Chairman
$101,246
$99,750
Other non-executive directors (excluding alternate director)
$74,603
$73,500
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 $5,408 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.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 9 -
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 $114,188 plus superannuation of 11.0% (2023: $87,000 plus superannuation of 10.5%),
while Mr Stein was awarded $71,875 plus superannuation of 11.0% (2023: $57,499 plus superannuation of 10.5%). 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.
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.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 10 -
REMUNERATION REPORT (continued)
No performance rights held by directors or key management personnel that were outstanding as at 30 June 2024 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.
Primary Compensation
Post-
Employment
Equity
Compensation
2024
Base
Salary/Fees
Short Term
Incentive
Superannuation
Contributions
Performance
Rights
Total
$
$
$
$
$
Directors
I Tan – managing director
463,601
114,188
63,557
508,544
1,149,890
L Atkins – non-executive chairman
101,246
-
11,137
101,709
214,092
D Tenardi – non-executive
74,603
-
8,206
101,709
184,518
P Bailey – non-executive(i)
74,603
-
-
101,709
176,312
Tunku Yaacob Khyra - non-executive
74,603
-
-
101,709
176,312
U Ahrens - alternate director (ii)
63,945
50,000
-
406,835
520,780
H Plaggemars – non-executive
74,603
-
-
101,709
176,312
Executives
M Stein – CFO & company secretary
291,812
71,875
40,006
219,653
623,346
TOTAL
1,219,016
236,063
122,906
1,643,577
3,221,562
(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 2024, 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.
Primary Compensation
Post-
Employment
Equity
Compensation
2023
Base
Salary/Fees
Short Term
Incentive
Superannuation
Contributions
Performance
Rights
Total
$
$
$
$
$
Directors
I Tan – managing director
445,875
87,000
55,952
509,957
1,098,784
L Atkins – non-executive chairman
97,375
-
10,224
22,044
129,643
D Tenardi – non-executive
71,750
-
7,534
22,044
101,328
P Bailey – non-executive(iii)
71,750
-
-
22,044
93,794
Tunku Yaacob Khyra - non-executive
71,750
-
-
22,044
93,794
U Ahrens - alternate director (iv)
56,250
50,000
-
88,175
194,425
H Plaggemars – non-executive
71,750
-
-
22,044
93,794
Executives
M Stein – CFO & company secretary
260,425
57,499
33,382
82,646
433,952
S Volk – CFO & company secretary
69,163
-
944
-
70,107
TOTAL
1,216,088
194,499
108,036
790,998
2,309,621
(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.
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 2024, 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.
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 11 -
REMUNERATION REPORT (continued)
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk remuneration
Name
2024
2023
2024
2023
Directors
I Tan – managing director
46%
46%
54%
54%
L Atkins – non-executive Chairman
52%
83%
48%
17%
D Tenardi – non-executive
45%
78%
55%
22%
P Bailey – non-executive
42%
76%
58%
24%
Tunku Yaacob Khyra - non-executive
42%
76%
58%
24%
U Ahrens - alternate director
12%
29%
88%
71%
H Plaggemars – non-executive
42%
76%
58%
24%
Executives
M Stein – CFO & company secretary
53%
68%
47%
32%
S Volk – CFO & company secretary
-
100%
-
-
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
Term of agreement
and notice period *
Base salary (including
superannuation)
Termination payments **
Ignatius Tan
Managing Director
No fixed term
6 months notice
$527,158 p.a.
6 months, plus 3 months if
terminated because of a change
in control of the Company
Martin Stein
Chief Financial Officer & Company Secretary
No fixed term
1 month notice
$331,818 p.a.
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, no new performance rights were issued to the directors and executives of the Company (2023: the Company
issued 15,000,000 performance rights to Mr Iggy Tan, 12,000,000 performance rights to Mr Uwe Ahrens, 3,000,000 performance rights to
each of the other directors and 6,000,000 performance rights 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 2024, are set out below:
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 12 -
REMUNERATION REPORT (continued)
Name
Record
Date
No. of
Performance
Rights
Issue
price
Fair Value at
issue date
$
Vested &
Exercised at
30/06/24
Un-vested at
30/06/24
Final date for
vesting
Directors
Mr Iggy Tan
12/06/18
5,000,000
nil
875,000
-
5,000,000
11/06/25
Mr Iggy Tan
29/11/21
10,000,000
nil
1,400,000
-
10,000,000
29/11/26
Mr Iggy Tan
12/05/23
15,000,000
nil
1,500,000
-
15,000,000
11/05/28
Mr Luke Atkins
27/11/20
1,000,000
nil
45,000
-
1,000,000
26/11/25
Mr Luke Atkins
12/05/23
3,000,000
nil
300,000
-
3,000,000
11/05/28
Mr Dan Tenardi
27/11/20
1,000,000
nil
45,000
-
1,000,000
26/11/25
Mr Dan Tenardi
12/05/23
3,000,000
nil
300,000
-
3,000,000
11/05/28
Mr Peter Bailey
27/11/20
1,000,000
nil
45,000
-
1,000,000
26/11/25
Mr Peter Bailey
12/05/23
3,000,000
nil
300,000
-
3,000,000
11/05/28
Tunku Yaacob Khyra
27/11/20
1,000,000
nil
45,000
-
1,000,000
26/11/25
Tunku Yaacob Khyra
12/05/23
3,000,000
nil
300,000
-
3,000,000
11/05/28
Mr Uwe Ahrens
27/11/20
1,000,000
nil
45,000
-
1,000,000
26/11/25
Mr Uwe Ahrens
12/05/23
12,000,000
nil
1,200,000
-
12,000,000
11/05/28
Mr H Plaggemars
27/11/20
1,000,000
nil
45,000
-
1,000,000
26/11/25
Mr H Plaggemars
12/05/23
3,000,000
nil
300,000
-
3,000,000
11/05/28
Executives
Mr Martin Stein
31/1/22
1,000,000
nil
120,000
-
1,000,000
31/01/29
Mr Martin Stein
12/05/23
6,000,000
nil
600,000
-
6,000,000
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:
(i)
shares in the Company;
(ii)
options over ordinary shares in the Company (both listed and unlisted options); and
(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
Balance at
Beginning of year
Vested as
Remuneration
during year
Acquired/(disposed)
during year
Other changes
during year
Balance at End
of Year
30 June 2024
Directors
I Tan
7,940,000
-
- - 7,940,000
L Atkins
10,857,438
-
593,407 - 11,450,845
D Tenardi
5,594,915
-
214,285 - 5,809,200
P Bailey
3,774,710
-
- - 3,774,710
Tunku Yaacob Khyra
92,655,251
-
(9,620,726) -
83,034,525
U Ahrens
1,000,000
-
- - 1,000,000
H Plaggemars
-
-
100,737,763
-
100,737,763
Executives
M Stein
-
-
- -
-
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 13 -
REMUNERATION REPORT (continued)
KMP Holdings of Ordinary Shares (continued)
Balance at
Beginning of year
Vested as
Remuneration
during year
Acquired/(disposed)
during year
Other changes
during year
Balance at End
of Year
30 June 2023
Directors
I Tan
7,817,000
-
123,000 - 7,940,000
L Atkins
10,857,438
-
- - 10,857,438
D Tenardi
5,594,915
-
- - 5,594,915
P Bailey
3,774,710
-
- - 3,774,710
Tunku Yaacob Khyra
135,034,675 -
(42,379,424) -
92,655,251
U Ahrens
1,000,000
-
- - 1,000,000
H Plaggemars
-
-
- -
-
Executives
S Volk
1,307,727 -
(361,365) -
946,362 1
M Stein
-
-
- -
-
1 Holding at the date that S Volk ceased to be a KMP.
KMP Holdings of Performance Rights
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
30 June 2024
Directors
I Tan
30,000,000
-
- 30,000,000
-
30,000,000
L Atkins
4,000,000
-
-
- 4,000,000
-
4,000,000
D Tenardi
4,000,000
-
-
- 4,000,000
-
4,000,000
P Bailey
4,000,000
-
-
- 4,000,000
-
4,000,000
Tunku Yaacob Khyra
4,000,000
-
-
- 4,000,000
-
4,000,000
U Ahrens
13,000,000
-
-
- 13,000,000
- 13,000,000
H Plaggemars
4,000,000
-
-
- 4,000,000
-
4,000,000
Executives
M Stein
7,000,000
- -
- 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
30 June 2023
Directors
I Tan
15,000,000
15,000,000
- 30,000,000
-
30,000,000
L Atkins
1,000,000
3,000,000 -
- 4,000,000
-
4,000,000
D Tenardi
1,000,000
3,000,000 -
- 4,000,000
-
4,000,000
P Bailey
1,000,000
3,000,000 -
- 4,000,000
-
4,000,000
Tunku Yaacob Khyra
1,000,000
3,000,000 -
- 4,000,000
-
4,000,000
U Ahrens
1,000,000
12,000,000
-
- 13,000,000
- 13,000,000
H Plaggemars
1,000,000
3,000,000 -
- 4,000,000
-
4,000,000
Executives
S Volk
1,000,000
-
(1,000,000) -
-
-
-
M Stein
1,000,000
6,000,000 -
- 7,000,000
-
7,000,000
This concludes the remuneration report, which has been audited.
_________________________________________________________________________________________________________
ALTECH BATTERIES LIMITED
DIRECTORS’ REPORT
For the year ended 30 June 2024
- 14 -
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 26th day of September 2024
- 15 -
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.
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 Alltech Batteries Limited and Controlled Entities
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2024, there have
been:
a)
no contraventions of the auditor independence requirements of 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
Moore Australia Audit (WA)
Partner – Audit and Assurance
Chartered Accountants
Moore Australia Audit (WA)
Perth
26th day of September 2024
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2024
- 16 -
30-Jun-24
30-Jun-23
Notes
$
$
Revenue from ordinary activities
Interest Income
112,679
234,078
R&D tax refunds
55,636
41,570
Other income
88,451
20,808
Fair value gain on investment (AAM AG)
-
14,740,750
Total Income
256,766
15,037,206
Expenses
Employee benefit expense (incorporating director fees)
(6,214,529)
(4,478,536)
Depreciation
(399,704)
(347,771)
Other expenses
2(a)
(4,720,512)
(3,900,958)
Share-based payments
15(e)
(3,193,497)
(1,076,658)
Share in profit / (loss) of associate - AAM AG
-
(241,130)
Fair value loss on investment (AAM AG)
(12,331,940)
-
Impairment of property, plant & equipment and development
expenditure
-
(63,958,139)
Writedown of assets
(245,461)
-
Research and development
(6,001,441)
(3,748,711)
Profit / (loss) on disposal of assets
-
(67)
Interest expense
-
(56,989)
Forex gain / (loss)
51,389
472,585
Profit / (loss) before income tax expense
(32,798,929)
(62,299,168)
Income tax benefit
3
505,253
519,295
Net profit / (loss) from continuing operations
(32,293,676)
(61,779,873)
Other comprehensive profit / (loss)
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translating foreign controlled entities
(767,555)
(2,980,966)
Total comprehensive profit / (loss), net of tax
(33,061,231)
(64,760,839)
Profit / (loss) for the year attributable to:
Owners of the parent entity
(28,061,929)
(59,717,465)
Non-controlling interest
(4,231,747)
(2,062,408)
Total profit / (loss) for the year, net of tax
(32,293,676)
(61,779,873)
Total comprehensive profit / (loss) for the year attributable to:
Owners of the parent entity
(28,829,484)
(62,698,431)
Non-controlling interest
28
(4,231,747)
(2,062,408)
Total comprehensive profit / (loss) loss for the year
(33,061,231)
(64,760,839)
Earnings Per Share
Basic profit / (loss) per share ($ per share)
4
(0.026)
(0.060)
Diluted profit / (loss) loss per share ($ per share)
4
(0.026)
(0.060)
The above Consolidated statement of Profit and Loss and Other Comprehensive Income should be read
in conjunction with the accompanying notes.
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
- 17 -
30-Jun-24
30-Jun-23
Notes
$
$
Current Assets
Cash and cash equivalents
5(a)
2,117,028
3,571,159
Trade and other receivables
6
4,085,444
2,884,702
Total Current Assets
6,202,472
6,455,861
Non-Current Assets
Property, plant and equipment
7
20,964,130
12,595,817
Right-of-use assets
8
4,257,874
4,398,139
Exploration and evaluation expenditure
9
1,159,431
981,637
Other financial assets
10
5,518,897
17,850,837
Other non-current receivable
11
-
2,596,055
Total Non-Current Assets
31,900,332
38,422,485
TOTAL ASSETS
38,102,804
44,878,346
Current Liabilities
Lease liabilities
35,314
34,442
Trade and other payables
12
5,639,410
6,326,018
Provisions
13
225,045
225,022
Total current liabilities
5,899,769
6,585,482
Non-Current Liabilities
Lease liabilities
61,255
-
Provisions
13
153,707
173,800
Loans payable
14
9,351,263
4,244,005
Total Non-Current Liabilities
9,566,225
4,417,805
TOTAL LIABILITIES
15,465,994
11,003,287
NET ASSETS
22,636,810
33,875,059
Equity
Contributed equity
15
143,117,262
124,487,779
Reserves
16
4,239,771
1,822,560
Accumulated losses
18
(118,375,155)
(90,321,959)
Non-controlling interests
(6,345,068)
(2,113,321)
TOTAL EQUITY
22,636,810
33,875,059
The above Consolidated Statement of Financial Position should be read
in conjunction with the accompanying notes.
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2024
- 18 -
Contributed
Equity
Accumulated
losses
Share-
based
payment
reserves
Foreign
currency
translation
reserves
Other equity
interests
Total
$
$
$
$
$
$
At 1 July 2023
124,487,779
(90,321,959)
2,839,027
(1,016,467)
(2,113,321)
33,875,059
Profit / (Loss) after income tax for the year
-
(28,061,929)
-
-
(4,231,747)
(32,293,676)
Other comprehensive profit / (loss) for the
year (net of tax)
-
-
-
(767,555)
-
(767,555)
Total comprehensive profit / (loss) for
the year
-
(28,061,929)
-
(767,555)
(4,231,747)
(33,061,231)
Transactions with owners in their
capacity as owners:
Issue of share capital
18,629,483
-
18,629,483
Share based payments (issue of
performance rights)
-
-
3,364,979
-
-
3,364,979
Expiration / cancellation of performance
rights
-
8,733
(180,213)
-
-
(171,480)
At 30 June 2024
143,117,262
(118,375,155)
6,023,793
(1,784,022)
(6,345,068)
22,636,810
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
-
(59,717,465)
-
-
(2,062,408)
(61,779,873)
Other comprehensive profit / (loss) for the
year (net of tax)
-
-
-
(2,980,966)
-
(2,980,966)
Total comprehensive profit / (loss) for
the year
-
(59,717,465)
-
(2,980,966)
(2,062,408)
(64,760,839)
Transactions with owners in their
capacity as owners:
Issue of share capital
-
-
-
-
21,597
21,597
Share based payments (issue of
performance rights)
-
-
1,285,407
-
-
1,285,407
Expiration / cancellation of performance
rights
-
-
(208,749)
-
-
(208,749)
At 30 June 2023
124,487,779
(90,321,959)
2,839,027
(1,016,467)
(2,113,321)
33,875,059
The above Consolidated Statement of Changes in Equity should be read
in conjunction with the accompanying notes.
ALTECH BATTERIES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2024
- 19 -
30-Jun-24
30-Jun-23
Notes
$
$
Cash Flows from Operating Activities
Payments to suppliers, contractors and employees
(12,038,214)
(8,801,229)
R&D refund received
574,931
306,932
Interest received
112,437
234,906
Other receipts
-
34,725
Interest paid
(59,840)
(56,989)
Net cash flows used in operating activities
5(b)
(11,410,686)
(8,281,655)
Cash Flows from Investing Activities
Acquisition of plant and equipment
(9,367,182)
(3,262,022)
Payments for research and development
(6,710,361)
(3,748,711)
Payments for exploration expenditure
(177,794)
(198,978)
Security deposits paid
-
(40,983)
Proceeds from sale of 25% of Altech Industries Germany GmbH
2,596,055
5,096,839
Net cash flows used in investing activities
(13,659,282)
(2,153,855)
Cash Flows from Financing Activities
Loans from AAM
5,062,015
3,135,396
Proceeds from issue of shares
19,580,196
-
Share issue costs
(950,711)
-
Proceeds from exercise of options
-
-
Lease repayment (principal)
(58,944)
(58,164)
Net cash flows from financing activities
23,632,556
3,077,232
Net increase /(decrease) in cash and cash equivalents
(1,437,412)
(7,358,278)
Cash and cash equivalents at the beginning of the financial year
3,571,159
10,912,939
Foreign exchange variance on cash
(16,719)
16,498
Cash and cash equivalents at the end of the financial year
5(a)
2,117,028
3,571,159
The above Consolidated Statement of Cash Flows should be read
in conjunction with the accompanying notes.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 20 -
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 26th of September 2024, in accordance with the resolution of directors. The directors have
the power to amend and reissue the financial statements.
1.
SUMMARY OF MATERIAL ACCOUNTING POLICIES
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, amortisation 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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 21 -
(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.
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).
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
Depreciation Rate
Plant & equipment
33% to 66%
Office Equipment
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 22 -
(g)
Employee Benefits (continued)
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 15(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.
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 23 -
(i)
Research and Development (continued)
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
The Group has incurred a net loss for the year ended 30 June 2024 of $32,293,676 (2023: net loss of $61,779,873). The Group has incurred net
cash outflows for the year ended 30 June 2024 of $1,437,412 (2023: net cash outflows of $7,358,278). In addition, as at 30 June 2024, the Group
had net current assets of $302,703 (30 June 2023: net current liabilities of $129,621).
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. However, the Group has not generated any revenues to date and has accumulated losses to date. The Group does not currently
have any revenue generating operations. These conditions, among others, raise substantial doubt about the ability of the Group to continue as
a going concern.
In addition, the Group’s projects in Germany are held in subsidiary companies which are jointly funded by the minority shareholder Altech
Advanced Materials AG (“ÄAM”). AAM has not generated any revenues to date and has accumulated losses to date. For AAM to continue to
fund the projects, AAM is dependent upon its ability to meet its financial requirements, raise additional capital, and the success of its future
operations. Should AAM not be successful in these endeavours, it may not be able to continue to contribute funding to the Group’s projects in
Germany. This would raise further doubt about the ability of the Group to continue as a going concern.
In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent
upon the Group’s ability to meet its financial requirements, raise additional capital, and the success of its future operations. The financial
statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Group not
continue as a going concern.
Management plans to fund operations of the Group through additional share capital being issued or sale of assets until such a time as a business
combination or other profitable investment may be achieved or when the Group achieves revenue through the sale of products. There are no
written agreements in place for such funding, issuance of securities or sale of products and there can be no assurance that such will be available
in the future. Management believes that this plan provides an opportunity for the Group to continue as a going concern.
(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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 24 -
(n)
Leases (continued)
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 exercising 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. The lease is an extension of an
earlier lease which expired on 31 March 2024. The new lease commenced on 1 April 2024 and has a 3-year term (expiring 31 March 2027) and
with no option to renew the lease for further terms. Lease payments are made monthly and is subject to review on the first and second anniversary
of the new lease. Variable outgoings are also paid to the building body corporate monthly and adjusted against actual outgoings expenses
annually.
The Company’s wholly owned Malaysian subsidiary, Altech Chemicals Sdn Bhd leases an office space in Tanjung Langsat, Johor, Malaysia.
This lease has a 1-year term (expired 31 August 2024), and the Company has entered into a new lease agreement based on a reduced office
space for an additional 1-year term (expiring on 31 August 2025).
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.
(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)
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.
(q)
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:
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 25 -
(r)
Critical accounting estimates and judgements (continued)
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 15(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 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
Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet mandatory, have not been early
adopted by the Company for the annual reporting period ended 30 June 2024. Management is currently assessing the impact of these standards
on the Company’s financial statements in the year of initial application.
(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 27.
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 26 -
(v)
Investment in Associates (continued)
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.
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 27 -
(w)
Financial Instruments (continued)
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.
(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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 28 -
2. Loss for the year includes the following specific income and expenses
30-Jun-24
30-Jun-23
$
$
(a) Other expenses
Accounting and audit fees
(79,947)
(46,209)
ASX and share registry fees
(177,871)
(116,217)
Corporate & consulting
(652,415)
(1,027,870)
Insurance expense
(309,232)
(331,819)
Occupancy
(616,119)
(478,212)
Legal fees
(729,802)
(447,568)
Investor relations and marketing
(1,023,730)
(876,742)
Office & administration
(1,131,396)
(576,321)
(4,720,512)
(3,900,958)
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 29 -
3. Income Tax
30-Jun-24
30-Jun-23
$
$
Income tax benefit / (expense)
Current income tax benefit / (expense)
505,253
519,295
505,253
519,295
Tax reconciliation
Accounting profit (loss) before tax
(32,798,929)
(62,299,168)
At statutory tax rate of 25%
(8,199,732)
(15,574,792)
Adjustment for:
Non-assessable income
-
(3,685,188)
Loss on revaluation of investment
3,082,985
-
Research & Development Spend
290,375
298,446
Research & Development Offset
491,344
508,903
Share based payments to employees
798,374
269,165
Non-deductible expenses
578,303
901,146
Deferred Tax Asset temporary differences not brought to account
129,165
4,475,892
Deferred Tax Asset losses not brought to account
2,127,362
12,232,960
Foreign Tax rate differential
1,207,077
1,092,763
505,253
519,295
Deferred tax assets
Provisions, accruals and other
102,781
123,476
Tax losses
-
-
102,781
123,476
Offset by deferred tax liabilities
(102,781)
(123,476)
-
-
Deferred tax liabilities
Capitalised mineral exploration and evaluation expenditure
(102,781)
(123,476)
Development expenditure
-
-
(102,781)
(123,476)
Offset by deferred tax assets
102,781
123,476
-
-
Deferred tax assets not recognised
Tax losses
2,858,113
2,517,955
Temporary differences
3,965,282
3,788,581
6,823,395
6,306,536
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 30 -
4. Earnings per share
30-Jun-24
30-Jun-23
$
$
Basic profit (loss) per share
(0.026)
(0.060)
Diluted profit (loss) per share
(0.026)
(0.060)
The weighted average number of ordinary shares used in the calculation
of basic earnings per share was:
Number
Number
1,288,055,886
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:
30-Jun-24
30-Jun-23
$
$
Cash at bank and on hand
2,117,028
3,571,159
(b) Reconciliation of the loss from ordinary activities after income tax to the net cash flows used in operating activities:
30-Jun-24
30-Jun-23
$
$
Profit/(Loss) from ordinary activities after income tax
(32,293,676)
(61,779,873)
Non-cash items:
- Income tax benefit
(505,253)
(519,295)
- Depreciation expense (Operations)
399,704
347,771
- Foreign exchange (gains) / losses
3,118,682
3,346,471
- Share based payments
3,193,497
1,076,658
- Loss on disposal of assets
-
67
- Share in loss of associate (AAM AG)
-
241,130
- Impairment of property, plant and equipment and development
expenditure
-
63,958,139
- Fair value (gain) / loss on investment in AAM AG
12,331,940
(14,740,750)
- Minority equity interest
4,231,747
2,062,408
Change in operating assets and liabilities:
- Increase / (decrease) in Operating trade and other payables
(686,608)
15,991
- (Increase) / decrease in Operating trade and other receivables
(1,200,742)
(2,340,811)
- Increase / (decrease) in Operating provisions
23
50,439
Net cash outflows from Operating Activities
(11,410,686)
(8,281,655)
6. Trade and other receivables
30-Jun-24
30-Jun-23
$
$
CURRENT RECEIVABLES
Research and development tax rebate
505,253
519,295
Sundry debtors
10,769
180,326
GST receivable
3,152,887
1,950,323
Deposits paid
50,284
49,376
AAM AG
-
26,628
Other receivable
366,251
158,754
4,085,444
2,884,702
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 31 -
7. Property, Plant and Equipment
30-Jun-24
30-Jun-23
OFFICE EQUIPMENT
$
$
At cost
432,463
382,418
Less: accumulated depreciation
(294,181)
(252,711)
Total office equipment
138,282
129,707
LAND
At cost
3,825,610
3,779,406
Total land
3,825,610
3,779,406
PLANT AND EQUIPMENT
At cost
242,857
224,897
Less: accumulated depreciation
(179,613)
(108,136)
Total plant and equipment
63,244
116,761
MALAYSIAN HPA PLANT (work in progress)
At cost
26,563,493
26,777,563
Less: Provision for impairment
(26,103,017)
(26,313,376)
Total Malaysian HPA Plant
460,476
464,187
SILUMINA PILOT PLANT - GERMANY (work in progress)
At cost
9,961,960
6,185,191
Total German Pilot Plant
9,961,960
6,185,191
CERENERGY BATTERY PLANT - GERMANY (work in progress)
At cost
6,514,557
1,920,565
Total German Pilot Plant
6,514,557
1,920,565
Total Property, Plant and Equipment
20,964,129
12,595,817
Reconciliation
Reconciliation of the carrying amounts for each class of plant and equipment are set out below:
30-Jun-24
30-Jun-23
OFFICE EQUIPMENT
$
$
Carrying amount at the beginning of the year
129,707
69,951
Additions
60,900
111,363
Disposals
(10,232)
(67)
Depreciation expense (profit & loss account)
(41,469)
(51,540)
Foreign currency translation
(624)
-
Carrying amount at the end of the year
138,282
129,707
LAND
Carrying amount at the beginning of the year
3,779,406
3,578,359
Additions
46,204
201,047
Less: amortisation
-
-
Carrying amount at the end of the year
3,825,610
3,779,406
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 32 -
7. Property, Plant and Equipment (continued)
Reconciliation (continued)
30-Jun-24
30-Jun-23
$
$
PLANT AND EQUIPMENT
Carrying amount at the beginning of the year
116,761
168,879
Additions
17,960
19,123
Less: depreciation
(71,477)
(71,241)
Carrying amount at the end of the year
63,244
116,761
MALAYSIAN HPA PLANT (work in progress)
Carrying amount at the beginning of the year
464,187
27,367,758
Additions
-
-
Provision for impairment of assets
-
(26,313,376)
Foreign currency translation
(3,711)
(590,195)
Carrying amount at the end of the year
460,476
464,187
The Malaysian HPA plant is part way constructed and is currently on care and maintenance. The Company requires further capital 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
6,185,191
814,852
Additions
3,776,769
5,370,339
Carrying amount at the end of the year
9,961,960
6,185,191
CERENERGY BATTERY PLANT - GERMANY (work in progress)
Carrying amount at the beginning of the year
1,920,565
-
Additions
4,593,992
1,920,565
Carrying amount at the end of the year
6,514,557
1,920,565
8. Right-of-use Assets
At cost
5,236,112
5,310,736
Accumulated depreciation
(978,238)
(912,597)
Net carrying amount
4,257,874
4,398,139
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
4,398,139
5,950,181
Impairment
-
(1,366,617)
Additions
66,209
-
Foreign currency translation
(41,418)
-
Depreciation charge for the year
(165,056)
(185,425)
Net carrying amount at the end of the year
4,257,874
4,398,139
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 33 -
9. Exploration and Evaluation expenditure
30-Jun-24
30-Jun-23
$
$
Carrying amount at the beginning of year
981,637
782,659
Exploration and evaluation expenditure incurred during the year (at cost)
177,794
198,978
Carrying amount at the end of the year
1,159,431
981,637
10. Other Financial Assets
30-Jun-24
30-Jun-23
$
$
Carrying amount at the beginning of the period
17,850,837
-
Reclassification from Investment in Associate (AAM AG)
-
4,629,897
Fair value gain / (loss) on investment
(12,331,940)
13,220,940
Carrying amount at the end of the period
5,518,897
17,850,837
The Company holds 10.17% (30 June 2023: 10.86%) of the issued share capital of Altech Advanced Materials AG (“AAM”). The Company has
valued this investment using the prevailing share price of AAM at 30 June 2024. The shares are in escrow until 15 November 2024.
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.
11. Other non-current receivables
30-Jun-24
30-Jun-23
$
$
Deferred consideration sale of 25% AIG to AAM AG
-
2,596,055
On 23 December 2020, Altech sold 25% of its German subsidiary Altech Industries Germany GmbH for $8.3 million to Altech Advanced Materials
AG. The initial cash consideration of $415,000 was received upon the signing of the share sale, deferred consideration of $7.92m was payable
by instalments over the following 3 years. The Company charges Altech Advanced Materials AG, 3% p.a interest on a quarterly basis. The
final instalment of $2.596m was paid in December 2023.
12. Trade and other payables
30-Jun-24
30-Jun-23
$
$
CURRENT PAYABLES (Unsecured)
Trade creditors
5,106,179
5,671,831
Accrued expenses
379,728
502,939
Payroll tax payable
20,600
13,628
Other creditors and accruals
132,903
137,620
Total trade and other payables
5,639,410
6,326,018
13. Provisions
30-Jun-24
$
30-Jun-23
$
CURRENT
Provision for annual leave
225,045
225,022
NON-CURRENT
Provision for long service leave
153,707
173,800
Total provisions
378,752
398,822
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 34 -
14. Loans Payable
30-Jun-24
$
30-Jun-23
$
Advances from Altech Advanced Materials AG (AAM)
9,351,263
4,244,005
9,351,263
4,244,005
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 its 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 120MWh battery production plant in
Saxony, Germany (see Note 21).
Interest payable by AIG and AEH to AAM is 3.25% per annum on the outstanding loan amount.
15. Contributed Equity
30-Jun-24
$
30-Jun-23
$
(a) Ordinary shares
Contributed equity at the beginning of the period
124,487,779
124,487,779
Shares issued during the period
19,580,196
-
Transaction costs relating to shares issued
(950,713)
-
Contributed Equity at the end of the reporting period
143,117,262
124,487,779
Movements in ordinary share capital:
30-Jun-24
30-Jun-23
Ordinary shares on issue at the beginning of reporting period
1,426,765,869
1,426,765,869
Shares issued during the period:
21-Jul-23 at $0.07
42,857,142
-
11-Aug-23 at $0.07
147,145,801
-
17-Aug-23 at $0.07
29,414,218
-
27-Oct-23 at $0.07
7,142,857
-
21-May-24 at $0.065
57,246,037
-
Ordinary shares on issue at the end of the reporting period
1,710,571,924
1,426,765,869
(b) Performance Rights
During the year, a total of 5,200,000 ex-employees’ performance rights were cancelled. The Company issued a total of 3,600,000 new
performance rights to certain new employees pursuant to the Altech Batteries Limited Performance Rights Plan.
At 30 June 2024, the Company had the following unlisted performance rights on issue:
Performance rights - managing director (exercise price: nil)
30,000,000
Performance rights - employees (exercise price: nil)
56,250,000
Performance rights - non-executive directors (exercise price: nil)
33,000,000
Total performance rights on issue at 30 June 2024
119,250,000
At 30 June 2023, the Company had the following unlisted performance rights on issue:
Performance rights - managing director (exercise price: nil)
30,000,000
Performance rights - employees (exercise price: nil)
57,850,000
Performance rights - non-executive directors (exercise price: nil)
33,000,000
Total performance rights on issue at 30 June 2023
120,850,000
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 35 -
15. Contributed Equity (continued)
(c) Listed Options
The Company did not issue any listed options during the reporting period (2023: nil). At 30 June 2024, the Company did not have any listed
options on issue (2023: nil).
(d) Unlisted Options
The Company issued 28,622,799 unlisted options as part of a Share Purchase Plan during the reporting period (2023: nil). At 30 June 2024,
the Company had 28,622,799 unlisted options on issue (2023: nil).
(e) Share Based Payments
Performance Rights
Share based payments expense relating to Managing Director and Non-Executive Directors during the year totalled $508,544 and $915,378
respectively (2023: $509,957 and $198,394 respectively).
In addition, share based payments expense relating to employees’ performance rights totalled $1,769,575 (2023: $482,940)
During the financial year, the Company issued a total of 3,600,000 new performance rights to certain new employees and cancelled 5,200,000
performance rights due to termination of employment 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:
Performance Rights -
Valuation Assumptions
Variable
Directors
Exercise price for the performance right
$0.00
Market price for the shares at date of valuation / issue
$0.07
Volatility of company share price
80.0%
Dividend yield
0%
Risk free rate
3.23% - 3.56%
Expiry from date of grant (number of years)
5.00
Number of Rights issued
3,600,000
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.
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 3,600,000 performance rights to certain employees (2023: 15,000,000 to the Managing Director,
27,000,000 to the Non-executive Directors and 51,600,000 to certain employees) pursuant to the Altech Batteries Limited Performance Rights
Plan. A total of 5,200,000 (2023: 2,800,000) performance rights of ex-employees were cancelled during the year.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 36 -
16. Reserves
30-Jun-24
30-Jun-23
$
$
Share based payments reserve
6,023,793
2,839,027
Foreign currency translation reserve
(1,784,022)
(1,016,467)
Carrying amount at the end of the year
4,239,771
1,822,560
Movements:
30-Jun-24
30-Jun-23
$
$
Share based payments reserve
Balance at the beginning of the period
2,839,027
1,762,369
Fair value of performance rights issued
3,364,979
1,285,407
Expiration / forfeiture of performance rights
(180,213)
(208,749)
Balance at end of year
6,023,793
2,839,027
Foreign currency translation reserve
Balance at the beginning of the period
(1,016,467)
1,964,499
Foreign exchange movements on translation of subsidiary financial
statements
(767,555)
(2,980,966)
Balance at end of year
(1,784,022)
(1,016,467)
17. 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:
2024
Notes
Weighted
Average
Effective
Interest
Funds Available at
a Floating
Interest Rate
Fixed
Interest
Rate
Assets/ (Liabilities)
Non Interest
Bearing
Total
%
$
$
$
$
Financial Assets
Cash and cash equivalents
5(a)
0.50%
2,117,028
-
-
2,117,028
Trade and other receivables
6
-
-
4,085,444
4,085,444
Other financial assets
10
5,518,897
5,518,897
Total Financial Assets
2,117,028
-
9,604,341
11,721,369
Financial Liabilities
Trade and other payables
12
0.00%
-
-
(5,639,410)
(5,639,410)
Lease liabilities
-
(96,569)
-
(96,569)
Loans Payable
14
-
(9,351,263)
-
(9,351,263)
Total Financial Liabilities
-
(9,447,832)
(5,639,410)
(15,087,242)
Net Financial Assets/(Liabilities)
2,117,028
(9,447,832)
3,964,931
(3,365,873)
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 37 -
17. Financial Instruments (continued)
2023
Notes
Weighted
Average
Effective
Interest
Funds Available at
a Floating
Interest Rate
Fixed
Interest
Rate
Assets/
(Liabilities) Non
Interest Bearing
Total
%
$
$
$
$
Financial Assets
Cash and cash equivalents
5(a)
0.50%
3,571,159
-
-
3,571,159
Trade and other receivables
6
-
-
2,884,702
2,884,702
Other financial assets
10
17,850,837
17,850,837
Other non-current receivables
11
-
-
2,596,055
2,596,055
Total Financial Assets
3,571,159
-
23,331,594
26,902,753
Financial Liabilities
Trade and other payables
12
0.00%
-
-
(6,326,018)
(6,326,018)
Lease liabilities
-
(34,442)
-
(34,442)
Loans Payable
14
-
(4,244,005)
-
(4,244,005)
Total Financial Liabilities
-
(4,278,447)
(6,326,018)
(10,604,465)
Net Financial Assets/(Liabilities)
3,571,159
(4,278,447)
17,005,576
16,298,288
(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 by it.
(c) Liquidity Risk
The Group has reduced liquidity risk due to the significant capital raisings post year-end. Loans payable represent advances from AAM to Altech Industries
Germany GmbH as part of its 25% contribution towards AIG’s operations in Germany and its 25% contribution to Altech Energy Holdings GmbH for the
development of Altech Batteries GmbH’s 120MWh battery production plant in Saxony, Germany . 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
Within 1-5 Years
Over 5 Years
Total
2024
2023
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
$
$
Consolidated Group
Financial Assets
Cash and cash
equivalents
2,117,028
3,571,159
-
-
-
-
2,117,028
3,571,159
Trade and other
receivables
4,085,444
2,884,702
-
-
-
-
4,085,444
2,884,702
Other non-current
receivables
-
2,596,055
-
-
-
-
-
2,596,055
Total Financial Assets
6,202,472
9,051,916
-
-
-
-
6,202,472
9,051,916
Financial Liabilities
Trade and other
Payables
(5,639,410)
(6,326,018)
-
-
-
-
(5,639,410)
(6,326,018)
Lease Liabilities
(35,314)
(34,442)
-
-
-
-
(35,314)
(34,442)
Loans Payable
(9,351,263)
(4,244,005)
-
-
-
-
(9,351,263)
(4,244,005)
Total Financial
Liabilities
(15,025,987)
(10,604,465)
-
-
-
-
(15,025,987)
(10,604,465)
Net Exposure
(8,823,515)
(1,552,549)
-
-
-
-
(8,823,515)
(1,552,549)
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 38 -
17. 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 Ringgit. The Group holds cash and bank balances
denominated in Euro and Malaysian Ringgit 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.
18. Accumulated losses
30-Jun-24
30-Jun-23
$
$
Carrying amount at the beginning of the period
(90,321,959)
(30,604,494)
Profit (loss) for the period
(28,061,929)
(59,717,465)
Expiration of performance rights
8,733
-
Carrying amount at the end of the year
(118,375,155)
(90,321,959)
19. Auditor’s remuneration
30-Jun-24
30-Jun-23
$
$
Audit - Moore Australia Audit (WA)
Audit and review of the financial reports
49,793
48,778
20. Related Parties
30-Jun-24
30-Jun-23
Key management personnel compensation
$
$
Short-term employee benefits
1,455,079
1,410,587
Post-employment benefits
122,906
108,036
Share-based payments
1,643,577
790,997
3,221,562
2,309,620
During the financial year there were no loans made or outstanding at year end (2023: 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 (2023: $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.
Altech Advanced Materials AG has NIL (2023: $26,628) receivable amount owing to the Group at year-end.
As per note 14 the Group has a loan of $9,351,263 (2023: $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.
21. 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 2024, 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
(2023: $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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 39 -
21. Expenditure commitments (continued)
(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
•
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.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 40 -
21. Expenditure commitments (continued)
On 14 December 2023, with the transformation of the CERENERGY® battery pack into a substantial 60kWh unit specifically designed for the grid storage
market and the re-design of the pilot plant at Fraunhofer IKTS, an amendment to the Research & Development Agreement was executed. The revised
R&D Payment Plan is as shown below:
Payment
Instalment
(€ ‘mil)
0.360
0.360
0.560
0.660
0.600
0.600
0.600
0.800
1.660
1.500
1.300
1.300
0.650
0.650
1.100
0.900
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
ABG has, or will, make payments to Fraunhofer pursuant to the Research and Development Agreement up to the scheduled payment date of 13
September 2024. ABG and Fraunhofer have agreed to pause any further payments committed under the Research and Development Agreement until
such time as ABG reaches financial close for the 120MWh plant to be constructed for the CERENERGY® battery project.
(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 2024, the Company had no capital commitments in
relation either contract (2023: 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 2024. As at 30 June 2024, 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 €5,538,093. As at 30 June 2024, the Group had capital commitments of $180,014 (2023: $2,192,241). It is
currently anticipated that all of the commitment amounts will become payable during the subsequent financial year (2024/25).
22. 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 Silumina 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 2024
Geographical
Germany &
Australia
Germany
Malaysia &
Australia
Australia
Revenue
Interest and other revenue
-
-
13
112,666
112,679
R&D tax refunds
-
-
-
55,636
55,636
Other income
15,686
72,765
-
-
88,451
Total Revenue
15,686
72,765
13
168,302
256,766
Result
Segment loss before tax
(5,390,252)
(6,574,398)
(746,797)
(20,087,482)
(32,798,929)
Income tax benefit
-
-
-
505,253
505,253
Share of loss of associate
-
-
-
-
-
Profit / (loss)
(5,390,252)
(6,574,398)
(746,797)
(19,582,229)
(32,293,676)
Segment assets
14,578,041
8,707,769
6,558,322
8,258,673
38,102,805
Segment liabilities
(8,093,409)
(2,663,251)
(8,341)
(4,700,994)
(15,465,995)
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 41 -
22. Segment Information (continued)
Year ended 30 June 2023
Geographical
Germany &
Australia
Germany
Malaysia &
Australia
Australia
Revenue
Interest and other revenue
-
-
-
234,078
234,078
R&D tax refunds
-
-
-
41,570
41,570
Other income
3,071
-
-
17,737
20,808
Total Revenue
3,071
-
-
293,385
296,456
Result
Segment loss before tax
(3,358,396)
(2,788,129)
(47,691,414)
(8,220,099)
(62,058,038)
Income tax benefit
-
-
-
519,295
519,295
Share of loss of associate
-
-
-
(241,130)
(241,130)
Profit / (loss)
(3,358,396)
(2,788,129)
(47,691,414)
(7,941,934)
(61,779,873)
Segment assets
10,760,213
4,870,083
6,774,775
22,473,275
44,878,346
Segment liabilities
(6,302,801)
(2,312,129)
(29,796)
(2,358,562)
(11,003,288)
23. Employee entitlements and superannuation commitments
Employee Entitlements
Employee entitlements at 30 June 2024 are: Annual Leave Provision $225,045 (2023: $225,022) and Long Service Leave Provision $153,707 (2023:
$173,800).
Directors, officers, employees and other permitted persons’ Performance Rights Plan
Details of the Company's Performance Rights Plan are disclosed in the Remuneration Report.
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 $291,184 (2023: 272,968).
24. Contingent liabilities
There were no material contingent liabilities not provided for in the financial statements of the Group as at 30 June 2024 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.
25. Events subsequent to balance date
Capital Raised
On 7 August 2024, the Company announced a proposed capital raising of up to approximately $8.9 million, comprising the issue of up to 223,946,491 fully
paid ordinary shares in the capital of the Company at an issue price of $0.04 per Share. Participants in the entitlement offer will also receive free attaching
options on the basis of one (1) option for every two (2) shares held, with each option having an exercise price of $0.06 and expiry date of 31 December
2025. The prospectus for the capital raising was lodged with ASIC and ASX on the same date.
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 42 -
25. Events subsequent to balance date (continued)
The Capital Raising exercise had been completed with the following outcomes:
▪
a single tranche placement of 10,125,000 shares to sophisticated and professional investors at an issue price of $0.04 per share was completed
and raised $405,000. The fully paid ordinary shares under the placement were issued and allotted on 15 August 2024. A total of 4,562,500 free
attaching options in relation to the share placement were also issued and allotted on 17 September 2024. Each option had an exercise price of
$0.06 and expiry date of 31 December 2025.
▪
a non-renounceable entitlement offer of 1 share for every 8 shares held by eligible shareholders at the same issue price as the placement of $0.04,
raised $6,473,693. 161,842,312 fully paid ordinary shares under the entitlement offer was issued and allotted on 17 September 2024. This included
the amount of $5,000,000 underwritten by Altech Director Tunku Yaacob Khyra’s related entity, MAA Group Berhad (124,999,700 shares which
included MAA Group Berhad taking up its entitlement under the entitlement offer). Under the terms of the underwriting agreement with MAA Group
Berhad, the Company will pay MAA Group Berhad a fee of 6% of the amount underwritten. A total of 80,921,451 free attaching options in relation
to the entitlement offer were also issued and allotted on 17 September 2024. Each option had an exercise price of $0.06 and expiry date of 31
December 2025.
▪
On 17 September 2024, the Company issued and allotted 1,351,352 fully paid ordinary shares at a volume weighted price of $0.037 per share to
Spark Plus Pte Ltd as consideration for the provision of investor relations services.
First Offtake Letter of Intent for Cerenergy® GridPacks
Altech’s subsidiary, Altech Batteries GmbH executed an Offtake Letter of Intent (“LOI”) between Zweckverband Industriepark Schwarze Pumpe (“ZISP”)
on 12 September 2024. Under the LOI, ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first 5
years of production. The price of these batteries has been agreed and aligned to Altech’s Definitive Feasibility Study assumptions. The purchase of these
batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements.
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.
26. Parent entity disclosure
30-Jun-24
30-Jun-23
$
$
STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
1,616,665
1,030,615
Non-Current assets
95,449,969
94,943,654
TOTAL ASSETS
97,066,634
95,974,269
LIABILITIES
Current liabilities
600,053
764,980
Non-Current liabilities
214,963
173,800
TOTAL LIABILITIES
815,016
938,780
NET ASSETS
96,251,618
95,035,489
EQUITY
Issued capital
143,117,262
124,487,777
Accumulated losses
(52,889,435)
(32,291,315)
Share based payments reserve
6,023,791
2,839,027
TOTAL EQUITY
96,251,618
95,035,489
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Net profit / (loss)
(20,606,853)
(8,630,039)
Total comprehensive loss for the year
(20,606,853)
(8,630,039)
ALTECH BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2024
- 43 -
27. Controlled entities
Investments in controlled entities comprise:
Name
Beneficial percentage held by
economic entity
Principal activities
2024
2023
%
%
Altech Batteries Ltd
Parent entity
Wholly owned and/or controlled entities:
Altech Energy Holdings GmbH
75
75
Investment holding
Altech Batteries GmbH
56
56
Grid-Storage Battery
Plant
Altech Industries Germany GmbH
75
75
Battery Materials
Plant
Altech Chemicals Sdn Bhd (Malaysia)
100
100
HPA Plant
Altech Meckering Pty Ltd
100
100
Kaolin Mine
Altech Chemicals Australia Pty Ltd
100
100
Intellectual
Property/Patent
Holder
Canning Coal Pty Ltd
100
100
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.
28. 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
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
Summarised Financial Position
Current assets
3,990,155
2,239,092
85,929
119,867
805,803
7,799,876
Non-current assets
10,937,685
8,499,164
15,361,904
5,487,747
7,901,965
1,964,110
Current liabilities
(2,617,282)
(3,647,767)
(10,841)
(13,381)
(2,663,251)
(2,308,313)
Non-current liabilities
(21,753,143)
(11,326,648)
(15,495,870)
(5,623,174)
(15,332,418)
(5,491,563)
NET ASSETS
(9,442,585)
(4,236,159)
(58,878)
(28,941)
(9,287,901)
1,964,110
Summarised Financial
Performance
Revenue
80,686
142,804
6,043
42,093
84,390
2,920
Profit/(loss) after tax
(5,390,252)
(3,358,396)
(31,540)
(12,012)
(6,574,398)
(2,788,129)
Other comprehensive income
after tax
-
-
-
-
-
-
Total comprehensive income
(5,390,252)
(3,358,396)
(31,540)
(12,012)
(6,574,398)
(2,788,129)
Profit/(loss) attributable to
non-controlling interests
(1,347,563)
(839,599)
(7,885)
(3,003)
(2,876,299)
(1,219,806)
ALTECH BATTERIES LIMITED
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
As at 30 June 2024
- 44 -
Entity Name
Entity Type
Country of
Incorporation
% of share
capital held
Australian Tax
Residency Status
Foreign Countries
Tax Residency
Altech Batteries Limited
Body corporate
Australia
N/A
Australian
N/A
Altech Energy Holdings GmbH
Body corporate
Germany
75
Foreign
Germany
Altech Batteries GmbH
Body corporate
Germany
56
Foreign
Germany
Altech Industries Germany GmbH
Body corporate
Germany
75
Foreign
Germany
Altech Chemicals Sdn Bhd
Body corporate
Malaysia
100
Foreign
Malaysia
Altech Meckering Pty Ltd
Body corporate
Australia
100
Australian
N/A
Altech Chemicals Australia Pty Ltd
Body corporate
Australia
100
Australian
N/A
Canning Coal Pty Ltd
Body corporate
Australia
100
Australian
N/A
ALTECH BATTERIES LIMITED
DIRECTORS’ DECLARATION
For the year ended 30 June 2024
- 45 -
The Directors of the Company declare that:
1. The financial statements and note, as set out on pages 16-44, 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 2024 and of the performance for the year
ended on that date of the consolidated group.
(c)
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
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 26th day of September 2024
- 46 -
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.
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
Independent Audit Report
To the members of Altech Batteries Limited
Report on the Audit of the Financial Report
Opinion
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 2024, 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 material accounting policy information, the consolidated entity disclosure
statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
ii.
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 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
and 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Emphasis of Matter - Material Uncertainty Related to Going Concern
In forming our opinion on the Group financial statements, which is not modified, we have considered the
adequacy of the disclosure made in Note 1(j) to the financial statements concerning the Group’s ability to
continue as a going concern. The conditions as explained in Note 1(j) to the financial statements indicate
the existence of a material uncertainty which may cast significant doubt about the Group’s ability to
continue as a going concern. The Group financial statements do not include the adjustments that would
result if the Group were unable to continue as a going concern.
Key Audit Matters
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 period. 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.
- 47 -
Key audit matter
How the matter was addressed in our audit
Carrying value of Property, Plant and Equipment & Capitalised Development Expenditure
(relating to the Silumina Anodes Project and Cerenergy project)
Refer to Note 1(f) and Note 7 Property Plant Equipment
Property, plant and equipment (PPE
as disclosed in Note 7: $20,964,130)
represents the most significant asset
for the company.
These assets largely relate to the
construction of the Silumina Pilot Plant
($9,961,960) and Cerenergy Battery
plant ($6,514,557).
None of these capitalised costs are
depreciated at this time, given that the
project is still under development.
Amortisation or depreciation will
commence once the projects are
complete and operational.
The evaluation of the carrying amount
of these assets requires management
estimation regarding possible
impairment.
Our procedures included, amongst others, the following:
•
Testing a sample of capitalised costs relating to these
plants to relevant support and ensuring costs being
capitalised are appropriate.
•
Investigated any significant movements, ensuring they
were valid and have been properly accounted for.
•
Assessing if the carrying value of these plants is not
impaired by reviewing the current stage and activity of
the projects and feasibility studies.
•
Assessing the carrying value of these plants by reviewing
the company’s market capitalisation.
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 Projects. As the
directors’ assessment of the Group’s
ability to continue as a going concern
is subject to significant judgement, we
identified going concern as a
significant risk requiring special audit
consideration.
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.
•
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 and
our conclusion on going concern is set out above. However,
we also concur that there is a material uncertainty which may
cast significant doubt on the Group’s ability to continue as a
going concern. The disclosures in the financial statements
appropriately identify this risk
- 48 -
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 2024 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.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the directors and will request that it is corrected. If it is not
corrected, we will seek to have the matter appropriately brought to the attention of users for whom our
report is prepared.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
c) for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a
true and fair view and is free from material misstatement, whether due to fraud or error;
and
ii.
the consolidated entity disclosure statement that is true and correct and is free of
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/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor’s report.
- 49 -
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
2024.
In our opinion, the Remuneration Report of Altech Batteries Limited, for the year ended 30 June 2024
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.
Moore Australia Audit (WA)
Chartered Accountants
Shaun Williams
Partner – Audit and Assurance
Moore Australia Audit (WA)
Perth
26th day of September 2024
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2024
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:
(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
These matters are disclosed in the Company’s
Board Charter, which is available on the
Company’s website
Complies
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
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.
Complies
Complies
1.3
A listed entity should have a written agreement
with each director and senior executive setting
out the terms of their appointment.
The company executes a letter of appointment
with each director and services agreements with
senior executives.
Complies
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.
The Company Secretary reports to the chair of the
board on all matters to do with the proper function
of the board.
Complies
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) the measurable objectives set for that
period to achieve gender diversity;
(2) 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
(B) 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.
Due to its size and limited scope of operations, the
Company does not currently have a diversity
policy.
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.
Does not comply
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2024
Principles and Recommendations
Disclosure
Compliance
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.
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.
Complies
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.
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:
(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.
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.
Does not comply
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.
A copy of the board skill matrix is appended to
this Corporate Governance Statement.
Complies
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.
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.
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.
Complies
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2024
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.
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.
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.
Does not comply, however the
board is of the view that this is
appropriate for the Company,
considering its size and stage of
development.
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.
Complies
Principle 3 – Instil a culture of acting lawfully, ethically and responsibly
3.1
A listed entity should articulate and disclose its
values
The Board is committed to the development of a
statement of values.
Does not Comply
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.
The Company code of conduct is available on the
Company web site.
Complies
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
The Company’s Whistleblower Policy is available
on the Company web site as well as company
intranet.
Complies
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
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 2024
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
(2) is chaired by an independent
director; who is not the chair of the
board,
and disclose:
(3) the charter of the committee
(4) the relevant qualifications and
experience of the members of the
committee; and
(5) 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.
Audit Committee has been formed. The Audit
Committee Charter is available on the Company’s
website.
Complies
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.
The board does receive a statement signed by the
Managing Director and the Chief Financial Officer.
Complies
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.
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
Principle 5 – Make timely and balanced disclosure
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.
Complies
5.2
A listed entity should ensure that its board
receives copies of all material market
announcements promptly after they have been
made
The board does receive copies of all market
announcement, whether material or not,
immediately after lodgement with the market.
Complies
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
All new and substantive investor or analyst
presentations are released to ASX ahead of
presentation.
Complies
ALTECH BATTERIES LIMITED
CORPORATE GOVERNANCE STATEMENT
For the year ended 30 June 2024
Principles and Recommendations
Disclosure
Compliance
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.
The company does provide information about its
governance on the Company’s web site.
Complies
6.2
A listed entity should have an investor relations
program that facilitates effective two-way
communication with investors.
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.
Complies
6.3
A listed entity should disclose how it facilitates
and encourages participation at meetings of
security holders.
The Company Shareholder Communication
Policy is available on the Company web site.
The company hosts its AGM online through its
share registry platform.
Complies
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.
All resolution at the Company’s 2023 annual
general meeting of shareholders were determined
by poll
Complies
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.
Security holder can elect to receive
communications from the Company electronically
either by contacting the Company’s share
registrar, or the Company directly.
Complies
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.
The Risk Management Committee has been
formed . The charter of the committee is currently
being documented. Once this documentation is
complete, a copy of the charter will be available
on the Company website.
Complies
7.2
The board or a committee of the board should:
(a) review the entity’s risk management
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.
The board reviews the risk management
framework annually.
Complies
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 2024
Principles and Recommendations
Disclosure
Compliance
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.
From 2023 onwards, the Company has included
Environmental, Social & Governance (ESG)
Report as part of the Annual Report.
Complies
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.
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.
Partly Complies
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.
The Company discloses its practices in relation to
the remuneration of non-executive directors,
executive directors and senior executives in its
annual remuneration report.
Complies
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
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.
Complies
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 2024
Board experience, skills and attributes matrix
Experience, skills and attributes
Altech Batteries Limited board
Total directors
6
Experience
Corporate leadership
6
International experience
6
Resources Industry experience
5
Other board level experience
6
Capital projects experience
6
Equity and debt raising / capital markets
6
Batteries and/or chemicals industry experience
5
Knowledge and skills
Legal
1
Minerals and/or chemicals processing
4
Engineering and project development
4
Finance and Accounting
3
Tertiary qualifications
Law
1
Engineering
4
Commerce/Business
2
ALTECH BATTERIES LIMITED
ASX ADDITIONAL INFORMATION
For the year ended 30 June 2024
The shareholder information set out below was applicable as at 14 October 2024.
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
No of
Ordinary
Shares Held
Percentage
% of Issued
Shares
MAA GROUP BERHAD
164,995,241
8.52%
DEUTSCHE BALATON AKTIENGESELLSCHAFT
146,270,075
7.56%
BNP PARIBAS NOMS PTY LTD
110,971,433
5.73%
CITICORP NOMINEES PTY LIMITED
109,814,304
5.67%
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
100,737,763
5.20%
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
88,041,717
4.55%
SMS INVESTMENTS S A
57,418,528
2.97%
MR KENNETH JOSEPH HALL
16,961,538
0.88%
BNP PARIBAS NOMINEES PTY LTD
15,346,996
0.79%
MR JOHN SMITH &
MS BARBARA SMITH
14,019,231
0.72%
MR BASIL CATSIPORDAS
12,950,000
0.67%
BNP PARIBAS NOMINEES PTY LTD
12,062,282
0.62%
LAKE MCLEOD GYPSUM PTY LTD
11,408,202
0.59%
MR YUSUF KUCUKBAS
11,000,000
0.57%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
8,566,488
0.44%
J & B SMITH SUPERANNUATION PTY LTD
7,875,000
0.41%
MR PETER JOSEPH BOURKE &
MRS KERRIE LEEANNE JONES
7,573,000
0.39%
THIRTY SIX VILMAR PTY LTD
6,830,440
0.35%
MR PETER JOSEPH BOURKE
5,768,570
0.30%
CAREY ENTERPRISES PTY LTD
5,761,538
0.30%
Total Top 20
914,372,346
47.23%
Others
1,021,497,421
52.77%
Total Ordinary Shares on Issue
1,935,869,767
100.00%
ALTECH BATTERIES LIMITED
ASX ADDITIONAL INFORMATION
For the year ended 30 June 2024
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of security holders by size of holding as at 14 October 2024.
Ordinary Shares
Distribution
Number of
Shareholders
Number of Shares
% of Issued
Shares
1
–
1,000
209
18,714
0.00%
1,001
–
5,000
287
1,205,316
0.06%
5,001
–
10,000
1,181
9,748,979
0.50%
10,001
–
100,000
4,086
168,731,907
8.72%
100,001
–
and over
1,922
1,756,164,851
90.72%
Totals
7,685
1,935,869,767
100.00%
SUBSTANTIAL SHAREHOLDERS
The names of the substantial shareholders listed in the holding Company's register as at 14 October 2024 are:
Substantial Shareholder
Number of Shares
% of Issued
Shares
MAA GROUP BERHAD
164,995,241
8.52%
DEUTSCHE BALATON AKTIENGESELLSCHAFT
146,270,075
7.56%
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
100,737,763
5.20%
UNMARKETABLE PARCELS
The Company has 1,961 holders of unmarketable parcels, being a parcel of shares less than $500.
UNQUOTED SECURITIES
Altech has unquoted securities totalling 119,250,000 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
Number
Managing Director Performance Rights
Ignatius Tan
30,000,000
VOTING RIGHTS
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 2024, the Company has an interest in the following tenements:
Tenement ID
Registered Holder
Location
Project
ATC
Interest
Grant Date
M70/1334
Altech Meckering Pty Ltd
WA Australia
Meckering
100%
19/05/16
E70/4718-1
Canning Coal Pty Ltd
WA Australia
Kerrigan
100%
1/12/15