Alpha HPA has announced a $40m strategic equity placement, corner-stoned by AustralianSuper and Orica ((ORI)), to fund the company's Alpha Sapphire Phase B rollout and working capital.

This will fully fund the roll-out of 50 sapphire growth units under agreement with Austrian-based technology provider Ebner-Fametec, Bell Potter reports. Alpha Sapphire is Alpha's downstream sapphire glass manufacturing subsidiary which will add value to the company's HPA production.

(HPA = ultra-high purity alumina). Bell Potter has lifted its target to $1.68 from $1.54 and retains Speculative Buy.

Sector: Materials.

Target price is $1.68.Current Price is $0.89. Difference: $0.80 - (brackets indicate current price is over target). If A4N meets the Bell Potter target it will return approximately 47% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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