FYI Resources’ (ASX:FYI) December quarter marked by HPA project developments

Highlights

• FYI Resources and Alcoa, the joint development partners, continued to advance their high purity alumina (HPA) project in the December quarter.
• The company became a member of the United Nations Global Compact and secured an R&D incentive rebate payment.
• The joint development partners endorsed a small-scale production / demonstration plant site selected in Kwinana.
• FYI Resources has outlined planned activities related to project developments and downstream critical mineral opportunities for March quarter.

FYI Resources Ltd (ASX:FYI) recently tabled its December 2022 quarter report, highlighting developments committed towards its high purity alumina (HPA) project.

The ASX-listed company is developing its project in collaboration with Alcoa of Australia Limited, one of the world’s leading alumina producers. FYI highlights that it has successfully developed an innovative process design to produce high-quality HPA. The partners are progressing the low-carbon emission process towards commercialisation.

Besides project developments, the quarter saw FYI receiving a research and development (R&D) tax incentive rebate payment of AU$0.89 million for the 2021/2022 financial year.

The company also joined the United Nations Global Compact, boosting its ESG commitments to sustainable development. To know more, read here.

 The company ended the quarter with approximately AU$10.1 million in cash.

Here’s a glimpse of the project developments undertaken by the company.

Kwinana location for small-scale HPA production and demonstration site

During the quarter, the partners continued significant progress with the development of the Stage Two small-scale production / demonstration plant. The focus remained on advancing the engineering and operational design, scheduling of the HPA project and aiding commercial, legal and marketing aspects of the project.

Hatch Engineering, the engineering services provider for the HPA project, progressed activities along with FYI Resources and Alcoa. These activities are aimed at a final investment decision (FID) and commencement of a small-scale production facility.

For the quarter, FYI Resources has highlighted various activities, including:

• Hatch Engineering advanced Stage Two development work with the completion of engineering and design workstreams for the small-scale production and demonstration plant
• Commencement of permitting and statutory approvals for the small-scale production and demonstration plant
• The partners continued client-directed product finishing and broader HPA product studies
• Completion of ESG annual audit with positive re-rating secured
• Successful overseas critical minerals business opportunities meeting held with strategic potential customers

Subsequent to the quarter, the partners endorsed a site for small-scale production and demonstration plant in Kwinana, Western Australia. 

Data source: company update

Downstream value-add market opportunities for HPA

The partners are also eyeing downstream value-add market opportunities for HPA. In this regards, FYI Resources has already joined hands with ASX-listed graphite company EcoGraf Limited (ASX:EGR).

Under this arrangement, high-quality FYI HPA is being deployed to boost performance of lithium-ion battery architecture. The goal is to increase the operational performance, reliability, longevity, safety and cost effectiveness in high-power density batteries that are primarily designed for electric vehicles.

The December quarter saw further battery development activities by FYI and EGR, focusing on high-quality HPA coating and doping on graphite anodes and HPA specialty coated lithium battery separators. The results from the latest work are yet to be shared. 

Activities planned for March 2023 quarter

Data source: company update  

FYI Resources shares were trading at AU$0.175 in the early hours of 8 February 2023.