Alpha HPA Reports $32.6M Loss, Secures $400M Debt for HPA First Project Expansion
Alpha HPA Limited reported a $32.6 million loss for FY2025 while making significant progress on its HPA First Project Stage 2 and securing $400 million in senior debt financing. The company is capitalizing on growing demand from the semiconductor sector with strong Letters of Intent covering 62% of Stage 2 capacity.
- FY2025 net loss increased to $32.56 million
- Stage 2 construction of HPA First Project underway with bulk earthworks complete
- Secured $400 million senior debt financing from NAIF and EFA
- Letters of Intent cover approximately 62% of Stage 2 production capacity
- Alpha Sapphire synthetic sapphire project progressing with Phase A operational and Phase B feasibility ongoing
Financial Performance and Funding
Alpha HPA Limited has released its audited annual report for the financial year ended 30 June 2025, revealing a net loss of $32.56 million, up from $24.98 million the previous year. Despite the widening loss, the company continues to invest heavily in advancing its flagship HPA First Project and related ventures. The company’s balance sheet remains robust with $102 million in cash and cash equivalents, supported by a $400 million senior debt facility secured from the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA).
Project Development Progress
The HPA First Project, located in Gladstone, Queensland, is progressing steadily. Stage 1 remains in continuous production, delivering high purity aluminium materials to early customers, particularly in the battery, semiconductor, and sapphire optics sectors. Stage 2 construction has advanced with bulk earthworks completed on time and budget, major civil works commenced, and long lead equipment fabrication underway. The project is on track to become the world’s largest single-site high purity aluminium manufacturing facility.
Market Demand and Commercialisation
Alpha HPA has seen a surge in demand from the semiconductor sector, driven by the unique performance benefits of its proprietary high purity alumina (HPA) and alumina tri-hydroxides (ATH) products. The company has secured Letters of Intent covering approximately 62% of Stage 2 production capacity, reflecting strong customer interest and ongoing product qualification efforts. The Stage 1 facility is fully allocated through to December 2025, with the company exploring low-cost expansion options to meet increasing orders ahead of Stage 2 ramp-up.
Alpha Sapphire and Future Growth
Beyond aluminium materials, Alpha HPA’s Alpha Sapphire subsidiary continues to develop synthetic sapphire glass production. Two Phase A sapphire growth units are operational, producing sapphire boules for qualification and sales, with Phase B feasibility studies progressing for a significant scale-up. The company is targeting emerging semiconductor applications such as gallium-nitride on sapphire wafers, positioning itself in a high-growth niche with strong ESG credentials.
Leadership and Corporate Governance
Leadership changes during the year included the appointment of Robert Williamson as Managing Director and Rimas Kairaitis as Chief Commercial Officer, aligning the executive team with the company’s growth trajectory. The board remains committed to strong corporate governance and sustainability practices, reflecting the company’s expanding operational footprint and stakeholder expectations.
Bottom Line?
With Stage 2 construction gaining momentum and semiconductor demand accelerating, Alpha HPA is poised for a pivotal year ahead, though execution risks remain.
Questions in the middle?
- How will Alpha HPA manage the transition from Stage 1 to full Stage 2 production capacity?
- What are the timelines and risks associated with securing final offtake contracts beyond Letters of Intent?
- How will the company’s capital structure evolve as it moves closer to commercial-scale operations?
