- FYI Resources Ltd (ASX:FYI) recently unveiled its activity report for the quarter ended 30 September 2020.
- FYI successfully completed Stage Two pilot plant HPA production campaign during the quarter.
- Besides, the Company raised $2.7 million via a two-tranche placement and entered into an MOU with Alcoa of Australia Limited.
- FYI also embarked on a detailed HPA production trial via its tailor-made pilot plant facility towards the end of the quarter.
- The Company ended the quarter with a decent cash balance of $1.6 million.
FYI Resources Ltd (ASX:FYI) has recently unveiled its activity report for the quarter ended 30 September 2020. The resources company continued to deliver on its stated HPA (High Purity Alumina) development objectives during the quarter.
FYI shares traded at $0.160, up 14.3% on 6 November 2020.
FYI is developing a fully integrated durable high-grade, HPA production project for both traditional and new technology markets. The Company is fully committed to becoming an international producer and supplier of high-quality HPA into the fast-growing lithium-ion battery and LED markets.
Let us quickly scroll through key developments that shaped the September 2020 quarter for the Company:
Completed Stage Two Pilot Plant Trials
FYI’s Stage Two pilot plant HPA production campaign was successfully completed during the September quarter. With the completion of campaign, the Company’s customised pilot plant attained the objectives of:
- confirming the outcomes of the Stage one pilot plant trials;
- surpassing targeted purity grade of 99.99 per cent;
- optimising the materials construction/materials handling test work undertaken during the pilot plant operations; and
- further improving FYI’s knowledge of the flowsheet design and product behaviour during operations.
Importantly, the Stage Two trials were performed as per expectations and design parameters comprising excellent recoveries, materials handling, and refining of superior product qualities.
Post satisfying purity levels (>99.99% Al2O3) and internal quality control measures, the final product was packaged and sent to prospective customers demanding further HPA for qualification review. Besides, 20kg of Stage Two HPA material was dispatched to a third-party service for dedicated finishing work that was overseen by a prospective customer.
Raised $2.7 Million Capital
FYI successfully raised $2.7 million via a two-tranche placement to professional and sophisticated investors through the issue of 45 million shares (fully paid ordinary) at $0.06 per share. The proceeds raised from the Placement are targeted to progress the development of the HPA project in Western Australia.
The Placement received solid support from international and local investors and multiple existing major shareholders. Besides, the Placement was supported by a new cornerstone investor, Mr Ken Hall, who subscribed for ~$500,000 worth of shares.
Signed MOU with Alcoa
Early in September, FYI entered a MOU with Alcoa of Australia Limited, a leading alumina producer. The MOU aimed at exploring joint development opportunities of the Company’s fully integrated and innovative HPA production and refining process for mass-scale commercialisation.
The MOU establishes a pathway to proceed to an operational JV and is contingent on the satisfaction of preceding conditions and successful negotiation of mutually advantageous terms. As a part of the MOU, FYI and Alcoa will initiate joint HPA pilot plant trials in the present quarter.
Commenced Detailed HPA Production Trials
Towards the end of September quarter, FYI embarked on a detailed HPA production trial via its tailor-made pilot plant facility. The trial was designed to undertake detailed studies to optimise preferred physical characteristics of the Company’s HPA to meet specific product specifications and requirements demanded by various potential customers.
The trial production run was successfully finalised in October 2020, with encouraging initial observations for the precursor and broader HPA cathode and cell coating applications presently being explored by FYI.
In addition to these developments, FYI remained active in finding key prospective customers in targeted markets during the quarter. The Company mentioned that the supply-chain opportunities continue to evolve with an improvement in HPA product development on the back of successful pilot plant trials. These pilot plant trials have enhanced FYI’s product acceptance with Tier One customer groups.
FYI also continued to examine project financing opportunities that comprise traditional and non-market correlated alternatives. The Company notified that excellent project return on investment results underlined in the definitive feasibility study (DFS) exhibited the attractiveness of the project to all financiers.
Consequently, the Company has engaged in funding discussions and will proceed with the financing evaluation discussions to provide the most suitable funding matching the overall project projections.
Furthermore, participation in the Future Battery Industry CRC (Cooperative Research Centre) continued to bring rewards for the Company during the quarter. The Company has signed a number of study and research programs within the FBI-CRC that can offer broader market opportunities besides resulting in additional improvements of its innovative HPA refining process.
On financial front, FYI ended the quarter with a decent cash balance of $1.6 million. The Company also retains $80 million equity funding facility via GEM Global Yield LLC SCS (GEM), a Luxembourg-based private equity group. The equity funding facility is maintained to support financing for FYI’s planned development of its HPA project and working capital purposes accessed at the Company’s election.