Ann: Key HPA Project Stage Completion, page-111

Risk/reward has nothing to do with the point I am making. Risk is the possibility the process does not work at (large) industrial scale, the HPA market does not develop as forecast, the price of HPA crashes, the quality of HPA produced in the FYI process does not meet market requirements etc. etc. My point relates to the deal made by FYI management with ALCOA - it was crap. They gave away 65% of the future revenues/profits, surrendered effective control of FYI, but agreed to permit ALCOA to walk away at any time. In exchange for the 35%/65% split, they should at the very least have insisted ALCOA fund the first installment (US$50m) for the demo plant, no ifs or buts, and this should have been announced with the term sheet late last year. That would have been completely reasonable, given FYI was then a $300m dollar company. But they didn't, and FYI has been on the back foot ever since, and the market has hammered the SP because the deal was terrible.

All IMHO, DYOR