ASX: FYI FYI is positioning itself to be a significant producer of 4N and 5N High Purity Alumina (HPA) in the rapidly developing high-tech product markets. HPA is increasingly becoming the primary sought-after input material for certain high-tech products such as LED’s and other sapphire glass products. HPA’s application in lithium-ion batteries for the Electric Vehicle and static energy storage markets is also growing significantly. FYI is currently capped at $198.7M. A recently updated Definitive Feasibility Study demonstrated its project can deliver a Net Present Value of over A$1.3BN. We invested in FYI for several reasons: 1. FYI is leveraged to the “Battery Metals” thematic. We have done well in this space before. 2. This is not exploration - FYI is at an advanced stage of development. FYI’s Definitive Feasibility Study demonstrated an NPV of over A$1.3BN. 3. Potential Alcoa JV. FYI is in exclusive talks with Alcoa on a potential JV. FYI entered into an exclusivity period for this JV negotiation - and there are around 50 days to go until we find out the results of these negotiations. 4. Cheaper and less energy intensive process. FYI’s HPA production is cheaper and has less carbon emissions than its peers. You can read our deep dive on FYI here. We think FYI is well positioned to bring its HPA plant into a reality over the coming years, after demonstrating all the project’s credentials over recent months. Another thing we like about FYI is its focus on ESG. This week FYI demonstrated its ESG credentials when it received an impressive initial result for its inaugural ESG rating. The rating was delivered by independent ESG rating service company, Sustainalytics, a Morningstar Inc company, which provides a best-in-class analysis and methodology to measure a company’s exposure to industry specific ESG risks and rates how well a company manages those risks. FYI achieved a ranking of 9th out of 153 peers, placing it in the top 6th percentile. It was top-ranked in three categories and had a top 5 ranking in a further five categories. Sustainalytics calculated FYI’s initial ESG rating measured against their universe of approximately 14,000 global industry participants, including a sub-industry category of 153 direct peer and competitor companies. FYI has proved it is committed to developing and continuing a strong corporate culture to implement its ESG objectives and its goal is to efficiently manage and grow its business under a defined ESG framework and to progressively improve the company and its ESG standards. We think FYI is undervalued with its market cap of approximately $200M, and are looking forward to the result of the JV talks with Alcoa, as it will hopefully shine a light on how its project can proceed to the next stage.
FYI Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
