The FYI Resources Ltd (ASX: FYI) share price is having a woeful Friday afternoon. This comes after the mining company announced a mutual exclusivity agreement extension with Alcoa Australia.
At the time of writing, FYI Resources shares are down a sizeable 9.77% to 79 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.49% to 7,822 points.
Extension disappoints FYI Resources investors
The FYI Resources share price is being driven down today as investor express their frustration over the extended agreement.
In the release, FYI Resources advised the potential joint venture on its high-purity alumina (HPA) project has been pushed back.
The company noted further time is needed to assess HPA opportunities that could enhance the joint venture in the market. This includes value-add initiatives that provide a delivery platform for HPA on a global scale, leveraging both companies' expertise.
FYI Resources stated that the exclusivity agreement will be extended until 5 October 2021. It is expected that final negotiations can lead to a binding term sheet.
FYI Resources managing director, Roland Hill touched on the extended agreement, saying:
Alcoa and FYI have made tremendous headway in negotiating the significant HPA JV opportunity. In our view, both companies share a similar vision for the JV and growth opportunities of the HPA strategy. Both companies have invested a considerable amount of time and resources to progress the JV discussions to this point, it is a mutual decision to extend the negotiations to consider the value-add opportunities.
Hill went on to reassure investors about the company's decision, adding:
We see the extension as positive as it allows both parties further time to assess and implement their intentions in order to achieve a positive outcome. We are simply giving the potential JV discussions all the time and consideration that the strategy deserves.
About the FYI Resources share price
Over the past 12 months, the FYI Resources share price has soared more than 770%, with year-to-date gains above 180%. The share price reached an all-time high of 88.5 cents on Tuesday before some profit-taking occurred.
Based on today's price, FYI Resources has a market capitalisation of roughly $274 million, with approximately 349.1 million shares outstanding.
