My take on what I think is a hidden benefit of the latest pilot plant runs with Alcoas' feedstock.
Pilot plant trails are to continue into January 2022 with the results of the last run in early February 2022. These runs are testing a "blend of feedstock". Alcoa's feedstock. The first run results were excellent averaging 99.997%. All samples 4N or greater! Both engineering and chemistry are being tinkered with in these runs, more so the engineering. The trial is to find the best outcome when using Alcoa feedstock. Using Alcoa feedstock gives the JV the ability to source material globally. In turn this improves many aspects, one of which is costs in transport and will also boost our ESG rating with a better carbon foot print. With access to a feedstock globally this will give us the ability to built other HPA facilities in different locations as either a large production plant or possibly smaller plants closer to the customer base in different countries. All dependent on supply and demand and economics of each area which will use our HPA. Our kaolin will be the primary source of feedstock for the 8500 plant in Kwinana. I see the use of Alcoas' feedstock as a major advantage when looking to become the dominant HPA producer in the western world. All in my opinion on a Sunday waiting for the Test match to start.
FYI Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
