Ann: FYI & ALCOA SIGN BINDING JV TERM SHEET FOR FYI HPA PROJECT, page-89

I’m not alone in initially being a little disappointed with JV terms.
I had hoped for a 50% split, even 40/60 but like many a 35/65 split is on the lower end of expectations.
The counter/trade off to this is that Alcoa will fully fund the first 194 million dollars of main plant.
The different phases to be ticked off are neither here nor there.
Either FYI’s HPA process works or it doesn’t. Alcoa has joined the JV process because they already believe it does work.

IMO the first plant will be built - with FYI not being in any debt and able to utilise cashflow for dividends or further expansion.
Further to this North America and Europe are mentioned as jurisdictions to expand into (with two more major plants?). Not to mention producing 5N and a possible partnership with Ecograf etc.

As per the announcement (in bold) the development/construction/ and funding has now been de-risked.

In my opinion the Alcoa/FYI JV will now in all likelihood become the dominant HPA player worldwide before the decade is out.

Today is a red day (on an otherwise red Friday across the ASX board) but there will be lots of green days to come.