Latest article from GoldInvest. Note they put the project team size at more than 30 people
https://goldinvest.de/weitere-meldungen/ceos-at-work-praesentiert/fyi-resources-ltd/fyi-resources-alcoa-ltd-streben-nach-marktfuehrerschaft-fuer-hochreines-aluminiumoxid-hpaHow closely FYI Resources Ltd. ( ASX: FYI; FRA: SDL ) and Alcoa Australia are now working together is best demonstrated by the fact that both partners meet regularly at least once a week to review project progress. The entire team - especially on the part of Alcoa - now includes no fewer than 30 people worldwide.
Based on this concentrated technical expertise, the marketing power and last but not least on the financial strength of the global market leader for alumina products, the Australian FYI Resources Ltd. well on its way to gaining the exclusive place as market, quality and cost leader in the specialized market for high purity alumina of at least 99.99% purity (HPA). In October last year, the partners defined a detailed development path towards a formal joint venture, the individual stages of which they are currently working through. For the full package including large-scale production, Alcoa is willing to invest a total of $243 million to acquire 65 percent of the business. FYI would keep the remaining 35 percent.
Unfortunately, quiet work on the technical design of a demonstration plant or confidential (preliminary) discussions with Offtake customers provide little fodder for impatient shareholders. In keeping with the logic of small-caps that rely on newsflow, FYI Resources has fallen since announcing its deal with Alcoa. The market value of junior partner FYI has gone from its high of around AUD 0.80 (in October 2021) to as high as AUD 0.15! The market is waiting for the partners to finally announce a final investment decision and the formal completion of a joint venture. A smaller volume demonstration plant would need to be commissioned prior to the construction of the first large scale 9,000 ton production plant. The final investment decision (FID) for this demonstration plant could be made this year.
Who Needs High Purity Alumina?There are two major growth drivers for High Purity Alumina (HPA): First, the global market for ceramic-coated battery separators, and second, the market for monocrystalline synthetic sapphire glass, which is used for micro-LEDs, among other things. Both markets are growing extremely fast. Experts expect that the market for ceramic coated separators will grow to USD 7.89 billion by 2028, which will represent an annual growth of 25.3%. The market for micro LEDs, which are installed in next-generation TV sets, for example, is growing by more than 75% per year. The special purity of HPA plays an outstanding role in both applications. In the case of wafers made of sapphire glass, colorlessness is important, in the case of battery separators, the smallest impurities can lead to a loss of performance.
Conclusion: FYI Resources was represented at the precious metals fair in Munich for the first time in 2018. At that time, the company was a start-up with a product that was difficult to understand and an opaque market - a topic for specialists and technology freaks. Four years later, the picture is completely different: the successful feasibility study prompted Alcoa Australia to make the deal described above. FYI was also chosen over other HPA competitors because the company was able to successfully demonstrate and improve its process in a pilot plant. Since October 2021, Alcoa and FYI have been working hand in hand to implement the business plan. Alcoa has an understandable interest in extending its market leadership beyond the commodity "Alumina" (99.5% purity) to the high-margin business with the high-end product HPA (99. 99%) to expand. The production-experienced Alcoa team can be trusted to have further improved the impressive figures of the FYI feasibilty. The April 2021 study already delivered an NPV of USD 1 billion at 10,000 tons per year and USD 186 million EBITDA at around 200 million Capex per year. FYI could provide Alcoa with the ticket to an exclusive and growing deal that benefits both. We look forward to the next steps of the two partners. FYI could provide Alcoa with the ticket to an exclusive and growing deal that benefits both. We look forward to the next steps of the two partners. FYI could provide Alcoa with the ticket to an exclusive and growing deal that benefits both. We look forward to the next steps of the two partners.
