These are just my notes from today's preso. Invite went out to Fosters clients so nothing that hasn't been mentioned to many.
The are my opinions/views only of the presentation and thoughts about the content presented publicly.
Not financial advice and with a balanced view of the content.
In no particular order and just me scribbling notes whilst listening at work:
- Well down the path with 2 financing arrangements and these are are independent of Alcoa and their financing arrangements (what finance they will bring with them)- Project to be financed not on current market cap but on NPA type figures that are improving throughout the process. Certainly not on current market cap.
- Have multiple off-takers that are keen on participating in the project also. So not just offtakes but wanting a piece of the action.
- Described the European partner we recently announced as 'an industry leader' and their feedback on our HPA was they thought it was incredible. They are very keen to collaborate with us
- They (the European partner) are looking at securing between 1/4 and 1/2 of our annual HPA production but he commented, assuming it's at the current 8,000 tpa (an interesting comment that one)
- Will be revised DFS numbers provided to the market in the first part of 2021. Looking likely numbers will be greatly improved and mentioned CAPEX reduction could be by 20% - 30%
- What separates us is being fully integrated. He stressed again that Alcoa scoured the market before landing on FYI
- Sustainability. We are leagues ahead in this space vs traditional HPA producers. Offtakers are now wanting to be involved in sustainable production with the credits along the way coming with it. Recognition and certification in this area will prove to be beneficial to us
- Pilot plant being commissioned now for the Alcoa run. They've spent 300k - 400k on the refit. The tweaked process willbe as how our flowsheet could look based on all the improvements worked on and refined to date
- Akcia pilot run to start early December and run for 1 week
- JV likely signed in the early part of 2021
- The intention of the JV is to be a joint marketer not separate
- Alcoa are yet to decide on the entity they operate the JV under. Whether it is Alcoa Australia or Alcoa (the global entity). But the overall JV has been sanctioned by New York Head Office
- There's very much a deliberate, methodical pathway they are progressing. Timelines are a little out but well advanced and on track
- Quite possible offtake comes pre Xmas (I am guessing the European partner)
- He also said that we are now getting line of enquiry 'from everywhere' now.
- Also said that in the HPA market now and dealing with the level of enquiry and with existing potential partners, there is now a sense of urgency.
The race is now on to lock away high-quality HPA
- The timing seems perfect now with our progression in the HPA space
- Roly is very excited where things stand currently its just a matter of time to hit the milestones
The last take out that resonated with me was that despite the share price increase the comment was we are very much at the beginning of our journey with all the hard work the past 2 years laying the foundations for the months ahead.
(20min delay)