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14:56
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Originally posted by dbd25:
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Regarding the revised build costs for the lower 100-250tpa production of the demo plant (c.f. 1000tpa), a back of envelope calculation suggests a pro-rata fraction of the original build cost (US$50m) would be (US$5m - US$12.5m). This is not the level of investment from Alcoa that I was expecting to see 8 months after the term sheet was agreed and signed. Apparently, ALCOA are now not going to commit the US$50m after all. I wonder, what was the point of the term sheet ? The 65%/35% split was agreed on the basis of ALCOA funding US$50m + US$200m, so is the split also going to be revised ? The plan to go from 100-250tpa of HPA to 9000tpa in the next scale-up also seems unconvincing. I would have thought the 1000tpa plant would be a good intermediate point for scaling studies. At the current slow rate of progress, construction of a full scale plant seems years away. They've taken 8 months to decide and announce a mini demo plant, a tenth to a quarter scale of the original demo plant. At the end of the day, we haven't seen ALCOA fully fund the 1000tpa demo plant with the cash pledged, which was my "by-back" threshold, so this morning I went further and sold out my remaining small holding. I'd say this project is going from bad to worse. ALCOA appear to have fully control over all aspects of the project, future planning, funding levels, media releases, but still won't put in the cash needed to advance the project on a reasonable timescale. FYI investors are being kept in the dark, as apparent in Roly's proactive interview yesterday which was pure waffle.
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Hi dbd25,
