Calci TechPresentation 2010
-
Upload
pars-media -
Category
Technology
-
view
476 -
download
1
description
Transcript of Calci TechPresentation 2010
Green Breakthrough ProjectsTechnology Delivering
Superior and Cost Saving Products for Established Markets
April 2010
The Futureis
Bright,White
&Sustainable
2
FORWARD-LOOKING INFORMATIONCertain information from CalciTech Ltd. (“CLK”) (website, presentation, fact sheet or any other communications or company related materials), in various filings with United States Regulators, in reports to shareholders and in other communications, is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to management’s expectations as to financial results as well as information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. Forward-looking information describes the Company's expectations as of March 31, 2010.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others: general economic factors, adverse industrial events, the Company's ability to deliver its products in a timely manner, reliance on two major customers, the non-renewal of contracts which expire in the near term, complexities and timing of signing large customer contracts, the limited time to capitalize on market opportunities, competition, pricing pressures, fluctuations in its operating results, its ability to make and integrate acquisitions, failures or material changes in its strategic relationships, exposure under contract indemnities or defects in products, its ability to attract and retain key personnel, industry and government regulation, risks associated with integrating new production lines, risks associated with entering new product lines and markets, risks associated with establishing new production facilities and the potential for costs over-runs or delays associated with construction, risks that the Company may be unable to procure needed capital for its growth plans and risks that the Company may not be able to obtain licenses for technology needed for its expansion plans on terms that are acceptable to the Company.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward–looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has made certain assumptions regarding the timing of the realization of certain opportunities which it thinks is reasonable but which may not be achieved. Furthermore, the pursuit of these opportunities does not ensure a linear progression of the Company's revenue and earnings, since they may involve significant up-front expenditures. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. For additional information with respect to certain of these and other factors, refer to the risks and uncertainties sections of the Company's Form 20-F Statement dated December 31, 2008 and filed with United States securities regulators.
USE OF MARKET AND INDUSTRY DATACLK information (website, presentation, fact sheet or any other communications or company related materials), includes market and industry data that has been obtained from third party sources, including industry publications, as well as industry data prepared by CLK management and the agents on the basis of their knowledge of and experience in the industry in which CLK operates. Management and the agents' knowledge of the industry have been developed through their experience and participation in the industry. Management believes that the industry data is accurate and that the estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although management believes it to be reliable, management has not independently verified any of the data from third party sources referred to in this investor presentation or ascertained the underlying economic assumptions relied upon by such sources.
SAFE HARBOUR STATEMENT
SCC Process – Green CredentialsSCC process turns otherwise economically worthless andpolluting industrial waste into a valuable resource.
SCC process reduces the requirement for ecologically harmfulquarrying, reduces dusting problems and saves energy andtransport costs
Upcycling of historical waste dumps reduces land fill and allowsfor regeneration of brown sites.
Per tonne of SCC produced from waste, 44 tonnes ofgreenhouse gas CO2 is consumed (CO2 credits available)
Treatment of paper mill sludge ash consumes CO2 whileyielding valuable minerals, allowing for recycling not possiblewith other processes.
SCC from waste enables end customers to claim that theirproducts use sustainable materials
3
Investment OpportunityPatented (green) technology converts wide variety of lime sources, particularly industrialwaste, into new and superior form of calcium carbonate
Technology represents over ten years and $50 million in development costs
Technology delivers products with superior quality and cost of use characteristics
Technology and products extensively validated in real life trials
Projections resulting from market feedback (Letters of Intent) and other extensive internaland third party market research, show that the projects are expected to yield returns well above industry average
The market is ready to take delivery, all that is required is build up of production capacity
European subsidiary now working towards completion of project finance for first 500,000 tpaproduction plants and Phase II development towards 2 million tpa production capacity
4
What is SCC?Synthetic Calcium Carbonate
Mineral pigment and specialty filler
Wide variety of multi billion $ applications
Products that• Improve finished product quality• Reduce Running Costs• Increase Productivity
Aimed at high end value segment for each application
5
Global Calcium Carbonate and Equivalent Minerals Markets
Application Market SizePaper Coating
Plastics
Food
Pharmaceutical
Cosmetics
Paints
Sealants & Adhesives
Printing Inks
Over $ 5 billion
Over $3 billion
Over $300 million
Over $200 million
Over $200 million
Over $700 million
Over $150 million
Over $100 million
6
Optical & Printing quality
Strength, Rheology Control, Filler, Optical
Calcium Fortification
Carrier of Calcium, Tableting
Pigment, texture
Optical, Coverage
Rheology Control
Rheology Control, Pigment Carrier
Function
SCC Potential
7
Market Size (Mtpa)CalciTech Target Sales in 6SCC Potential 14kaolin (paper) 14GCC (non-paper) 46GCC (paper coating) 26PCC (filler) 4.5PCC (Coating) 1
6
14
14
46
26
4.5
1
CalciTech Target Sales in
SCC Potential
kaolin (paper)
GCC (non-paper)
GCC (paper coating)
PCC (filler)
PCC (Coating)
Mar
ket s
ize
(Mtp
a)SCC Potential
Sources: Industrial Minerals, Roskill
6
14
14
46
26
4.5
1
0 10 20 30 40 50
CalciTech Target Sales in 15 yrs
SCC Potential
kaolin (paper)
GCC (non-paper)
GCC (paper coating)
PCC (filler)
PCC (Coating)
Mar
ket s
ize
(Mtp
a)
SCC Potential
SCC Brings SustainabilityReduces usage of valuable materials
• Higher filler loadings in plastics reduces usage of polymers by up to 20%• Improved opacity and brightness enables less fibre, pigment and less TiO2
Recycles waste from existing processes• Converts mineral waste from paper recycling plant into valuable paper
coating material• Converts carbide waste from PVC acetylene process into useful filler for
plastics• Avoids disposal into landfill• Replaces virgin calcium carbonate with superior sustainable SCC• Reduces environmental damage from quarrying and transporting minerals• Captures 44 tonnes of CO2 per 100 tonnes of product• CO2 credits available
8
SCC Brings Cost SavingsIncrease filler loading in PVC profiles reduces cost by 5%
Replaces high volume GCC with lower grammage SCC for same properties, saving pigmentcosts by up to 20%
Increasing filler loading in silicone sealants reduces costs by 18%
Reducing TiO2 ($2,800 per tonne) in PVC & Paint reduces product costs by 5%
Increasing speed of paper machine by reducing drying time potentially reduces costs by 1-2%
Reducing wear on processing equipment reduces maintenance costs
Converting waste material saves disposal costs of � $60/t
9
Technology Time Line
10
1996 – 1999 ChemicalProcess
Development
1999Patent
Application UK
1999Validationby RVM
2000First pilot
plant: Odda,
Norway
2000Global Patent
Application
2000–2002 IndustrialProcess
Development
2002Leuna small-scale
production plant
Germany
2003 –2009
Product launches & Customer validation
2009New Patent
filings for waste
recycling and new products
Technology PedigreeUtah University (Prof. J. Bunger)
Lausanne University
Manchester-Synprotec bench plant
RVM research centre (P. Garin)
Centre Technique du Papier – Grenoble
BASF Validation
Paper Producers
Plastics Producers
Food Producers
Geneva Institute of Technology
11
SCC versus Competition
12
SCC has:
Narrowest particle size distribution
Manipulable particle shape
Smoothest particles
Superior product characteristics
Ability to offer premium products to clients who will acquire quality, running cost savings and increased productivity and hence a competitive advantage
SCC PCC
SCC Benefits - Paper Coating
13
Pap
er G
loss
Brig
htne
ss
Increases quality of finished product with better gloss, whiteness, brightness, opacity, etc.
Replaces costly calcined clay ($450/t)
Enhances kaolin to exceed performance of GCC
Reduces coating process running costs with faster speeds and reduced calendering needs
Increases the lifetime of expensive coating blades due to lower abrasivity
Decreases dusting related maintenance requirements
SCC Benefits - PolymersImproves gloss and toughness without adverse effects on dispersability and melt viscosity
Increases polymer strength
Purity leads to improved whiteness and thermal stability in sensitive applications
Improves sustainability by offsetting oil based polyolefin resins
14
80
110
140Whiteness
Gloss
Thermal StabilityImpact Strength
Output
PVC Window Profile - performance improvement with SCC (%)
SCCStandard GCC
SCC Benefits – Food & PharmaExtremely high purity complies with strictest current and future purity standards
Low metal content ideal for calcium enriched baby and clinical food
No sedimentation or chalky taste in calcium enriched milk and beverages
Rheology ensures good process filler results for chewing gum, bakery products, cereals, yoghurts, chocolate etc
Superior mixability allows use as excipient for nutraceuticaland pharmaceutical industry
15
PCC SCCIron 120 ppm 20ppm
Aluminium 120 ppm 3 ppmLead 200 ppb 150 ppb
SCC Benefits - Paints, sealants, adhesives & glassEnhances optical properties in decorative paints
Dispersion for paints requires less energy
Optimum balance between mechanical and rheological properties
Enhances formulation flexibility, such as filler loading in sealants and adhesives
More sustainable than other functional extenders including calcined kaolin and PCC
Unique advantage of extremely low iron content for production of special glass such as ultra-clear, ophthalmic and new solar panels
16
Commercial Model & StrategyAppointment of industry specialists to work with industry on product development to meet key market drivers
Merchant plants serving customer clusters (e.g. geographic & specific product applications)
Appointment of application specific sales agents
JVs with industrial partners
Joint ventures with distributors for geographic and product markets
Maximisation of revenue and margin through product mix
17
Roadmap - AchievementsPrimary patent granted worldwide
Further patents pending
Pilot plant has proven process, makes trial samples
LoI‘s now being secured for plants. Initial plants now ready to build with 100% LoI cover.
MoU‘s with partner suppliers and distributors
Planning 8 plants in Europe with industrial partners
18
Roadmap - Next stepTo focus on recycling of paper sludge ash to high grade SCC forpaper coating in Europe and North America
Complete structured finance for 500,000 tpa of SCC production
Develop business plan for North America
Review SCC production from waste materials in India and South East Asia
Plan for more senior listings in North America and Europe
19
Companies in discussion for LoIs and JVs
• The paper industry (European based)• The Chemical Industry (European
and American based)• The Food industry (European based)• The Polymer and Plastics industries
(European based)• The Pigments industry (European
and American based)
Major international
players in
20
Management
21
Roger Leopard, President & CEO. Extensive financial, marketing and entrepreneurial experience
Thomas Livingstone-Learmonth, COO, Extensive senior management experience in various industries among which Chairman and Managing Director of various paper mills in France.
CFO: currently recruiting
Michael Watts, Director of Marketing, consummate commercial professional with extensive industrial expereince, most recently as President and CEO of the BTG Group, a multinational provider of instrumentation and consumables to the pulp and paper industry
Francois Roux: Product Development Director, formerly at National Starch and Huber. Extensive experience in paper and PCC industries
Christoph Jensen: Project Director with 20 years plant building experience especially PCC
Charles Kunesh: Director US, former research director SMI, PCC division of Mineral Technologies Inc.
Jean-Claude Masson: Sales Director Food, Pharma & Cosmetics, formerly at Battelle in Switzerland and Ohio, USA
Robert Higgs: Sales Director Polymer Applications, 25 years with Imerys, a world leader in clays and pigments
Thomas Shortt: Director of Corporate Communications
Investment CaseUnique, well protected technology with range of product applications, disruptive in mature markets
Highly sustainable & environmentally friendly commercialisation, allowing capture of maximum grants, emission credits & agency project finance
Long-term revenue, cash flow & earnings from mature sources
Innovative high-margin products, proven to meet key industry drivers of quality, cost and productivity
Raised over $50 million in development capital to commercialisation phase
First production plants over-subscribed
Seasoned management team
Strong partners (engineering, technical, production)
Large project pipeline – aggressive rollout strategy
22
CalciTech ListingCalciTech is a public company listed on the NASD OTC Bulletin Board in the US
Ticker: CLKTF
Fully SEC compliant foreign issuer, filing Form 20-F annually
Shares outstanding 185,639,086
85% Long-term holders, with institutions, discretionary fund managers and high-net worths
Largest shareholders
Envirinvest 12.16%
Santander Asset Management (6.4%)
23
The Future is White, Bright & Sustainable
24