FYI Resources (ASX:FYI) makes headway at HPA project; reveals interim financial report

Highlights 

• FYI Resources Limited (ASX:FYI) is positioning itself as a significant player in the burgeoning HPA industry.
• FYI and Alcoa of Australia inked a binding Terms Sheet in October 2021 for the joint development of the HPA project.
• Sustainalytics has provided FYI with a revised ESG score of 23.8 and a ranking of 5th out of 153 peers.

Australia’s FYI Resources Limited (ASX:FYI; OTCQX:FYIRF; FSE:SDL) is making significant strides in the high purity alumina (HPA) industry with a robust growth strategy. The recently released first-half report of the Company reflects a steady stream of developments strengthening its position in the HPA market.

Notably, FYI aims to position itself as a significant player in the burgeoning HPA industry to tap the growing opportunity from the electric vehicle and high-tech product market segments. HPA is increasingly becoming the primary input material for various high-tech products due to its unique chemical properties and characteristics, which are very useful in LEDs and sapphire glass products.  

Besides this backdrop, let us look at the key highlights for the reported period.

Binding term-sheet between FYI and Alcoa to develop the HPA project

FYI and Alcoa of Australia inked a binding Terms Sheet in October 2021 for the joint development of the HPA project. The Terms Sheet sets out the defined pathway to the structure and progressively stage of the HPA project from development to commercialisation.

The key terms of the agreement include:

Data Source: Company Announcement (15 March 2022)

Marketing of HPA product

FYI along with its partner, Alcoa, has been jointly structuring the HPA product marketing strategy. The marketing strategy will leverage FYI’s existing relationships with potential customers and Alcoa's global marketing team with a global presence.

Also Read: FYI Resources (ASX:FYI) achieves ‘landmark’ results from Joint Extended HPA trial

Significant progress in Extended Pilot Plant operations

During the reported period, FYI along with its partner Alcoa, collaboratively conducted two extended pilot plant operations. Results of the two weeks of pilot operations demonstrated continued high-quality grades being achieved across the suite of samples, with purity ranging from 99.999% to 99.997% Al₂O₃.

Excellent Project Economics

In April 2021, FYI announced an update to the revised Definitive Feasibility Study for the HPA project, demonstrating a potential project value (NPV-post tax) of US$1.14 billion. The significant rise in potential project value reflects several changes to underlying assumptions based on technical improvements, project de-risking, and other key commercial developments achieved since the preliminary DFS in March 2020.

The outline of the updated DFS are as follows:

Source: Company Announcement (15 March 2022)

Appointment of Operations and Technology Manager

FYI has appointed Claudio Di Prinzio to the position of Manager – Operations and Technology during the period. The new professional brings more than 30 years of direct industry experience in project development management, commissioning and operations management across a range of project sizes, commodities and jurisdictions.

Joint development program with EcoGraf Limited

The resource player has inked a joint development program with ASX-listed graphite company, EcoGraf Limited (ASX:EGR), to develop an innovative, high-density and HPA-enhanced battery anode coating material, which is suitable for usage in the lithium-ion battery industry.

Good Read: FYI Resources (ASX:FYI) collaborates with EcoGraf to tap the burgeoning battery market

Qualified and Upgraded to the OTCQX

During the period, FYI qualified for upgradation from its current standing of OTCQB to the premium OTCQX market. The Company had initially received approval for trading on the US-based OTC market from the Securities and Exchange Commission (SEC) in May 2021. Furthermore, the alumina producer commenced trading upon approval on the OTCQX on 29 October 2021 under the ticker, “FYIRF”.

Must Read: FYI Resources (ASX:FYI) commences trading on US-based OTCQX market

Adoption of ESG-Rating framework

FYI adopted a globally recognised ESG rating framework during the half-year period under which, the Company has established a baseline standard, and intends to improve on these ESG standards.

Sustainalytics, a pioneer in providing best-in-class analysis, has provided FYI with a revised ESG score of 23.8 and a ranking of 5th out of 153 peers. Additionally, FYI was among the top rankers in 3 categories and among the top 5 rankers in additional 5 categories.

Must Read: FYI Resources (ASX:FYI) achieves outstanding scores in initial ESG rating

Adding to this, FYI has also established an independent ESG reporting platform to centralise the Company’s ESG data during the period.

FYI shares last traded at AU$0.247, up 1.20% as of 15 March 2022.