HPA from Kaolin in WA Massively undervalued...potential multi bagger!, page-623

Furiousgeorge

FYI completed their PFS (Preliminary Feasibility Study) on 25/9/2018.

In short, these were the preliminary economic metrics of the project and showed us the potential that this can be an extremely viable and profitable project.


I'd highly encourage you to have a look at the announcement in readiness for the DFS. Roly also presented via a webinar the results from the study and it's great listening.

I have included the two announcements below.

PFS Announcement
https://hotcopper.com.au/threads/ann-outstanding-pfs-results-support-hpa-development.4454333/

PFS Webinar (Roly talks through PFS Results)
https://hotcopper.com.au/threads/ann-pre-feasibility-study-webinar.4460594/

DFS
The DFS (Definitive Feasibility Study) will be in a similar format to the PFS. However, over the past 12 months FYI would have been working on all aspects of the project and the DFS will have more up to date estimates on the project. This is where the rubber hits the road.

Usually the first headline numbers people also look at are the CAPEX - Capital Expenditure and the OPEX (operational expenditure).

For FYI, the PFS showed these are Capex US$178.8mill, Opex $6,467

What we are looking for at the most simplistic level is that these numbers have not blown out. IMO, if the numbers are very close to the PDS numbers then that is a great result. Roly may even surprise and the numbers may be even better in which case that is outstanding.
There will also be so much more detail about the various parts of the project.

if you think about it, since the PFS we have since run the Pilot plant, tweaked the flowsheet design and all of these findings will be built into the DFS.

I'm not sure what it will do to the price, Might move a bit, might not. But at the very least a great DFS still de-risks the project a lot. We will be able to see how we line up vs our competitors also. ATC have completed their DFS and A4N has their DFS due out early March.

Current numbers for the three projects are:

ATC capex US$298mill, opex $8,550, output 4,500tpa - DFS Complete. Market cap 70m
FYI capex US$179mill, opex $6,467, output 8,000tpa - These are PFS Numbers, DFS imminent. Market cap 11m
A4N capex US$149mill, opex $5,123, output 10,200tpa - These are PFS numbers, DFS imminent. Market cap 154m

Hope this helps.