HPA Developer Altech Tells Shareholders To Stop Stressing About Share Price Weakness

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Altech Chemicals Ltd (ASX: ATC) had tried to calm down its shareholders by blaming the deteriorating share price on a general sell down in global equities, especially in the small cap battery metals space. This was appreciated by the shareholders and it resulted in the increase in the share price by 10% and the share traded at 9.6 cents early this morning. The company was encountered by a number of questions in regard to the downfall of the share price by 40% since the start of October. From that period the share price has gone down from 14.5c to 8.7c by Thursday close. 

The chairman of the company, Luke Atkins assures its investors that there is no change in the progress made by the company. The company continues to make strong progress in terms of project development.

As a result of recent general sell-down on global equity markets, the share of the company is adversely impacted. The impact is seen specially in those companies who deals in small-cap battery materials like lithium, cobalt, graphite and nickel. He also addresses to the shareholders that the company continues to progress in our HPA project during the months after the successful capital raising by July 2018. This way he tried to provide relief to their shareholders. However, the company remains unaffected by changes in the share price due to the market conditions and the sentiments.

The other HPA focused explorers on the ASX could not manage over the same period.

The share price of Pure Alumina Limited (ASX: PUA) which was formerly known as Hill End Gold Ltd is trading down by 35%. from 8c to 5.2c. On the other hand, FYI Resources Limited (ASX: FYI) share price is trading down about 25%, from 8.8c to 7.3c. These players have huge operating cost advantage over existing producers in the growing market.

It is expected that the small global HPA market of about 25,000 tonnes annually will grow to around 48,000 tonnes approximately by 2025 and will reach approximately 86,000 tonnes by 2030.

The chairman of the company, Mr. Atkins states that the HPA market remains strong and buoyant because of the strong demand for HPA from the lithium-ion battery separator sheet sector. The demand is growing at a much faster rate which is above expectation.

The purpose of HPA is to make lithium-ion battery chemistry more stable. It is used in the separator of a battery. The price of HPA in the Japan and South Korea market is at the premium end holding at US$40,000 per ton. As of now there is no negative changes seen in the HPA market. And this will continue to give a positive result in the upcoming years.

By the end of the day, share price of ATC has gone up by 12.64% and it closed at A$0.098 by the end of the day. The market capitalization of the share is A$49.81 million. As per the chart, earlier the moving average convergence and divergence line (MACD Line) was moving below the signal line. However, after the letter provided to the shareholders of the company, there was a sudden upward movement of the MACD line. It is expected that within a couple of days, there is a chance that the MACD line will cut the line from the below and continue to move in upward direction.


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