Luxembourg private fund tips A$80m into FYI Resources’ new Alumina plant at Kwinana in Perth


The DFS reconfirms FYI’s 2018 Project Pre-Feasibility Study (PFS) results (please refer to ASX announcement 25th September 2018) and demonstrates the quality of the Company’s HPA strategy through excellent economic metrics. The DFS outlines the clear pathway forward to developing an integrated HPA business in a favourable operating jurisdiction such as Western Australia.

FYI has arranged an A$80m equity financing facility to progress the Company’s HPA development strategy. The equity will provide critical funding for the substantive development stages leading up to, and including, construction through to operation. The funding is a key catalyst for the Company’s development objectives and significantly de-risks the project. The funding will also assist in the final investment decision (FID) for the project from FYI’s Board.

Complementing the DFS, a revised Mineral Resource Estimate (MRE) for the Cadoux Kaolin Project (Project) for Proven and Probable reserves has been calculated, upon which the study was based. The single source, fully integrated and environmentally low impact kaolin derived feedstock supports the long-life project and was the basis for the metallurgical test work, process design and engineering undertaken over the DFS review period (including pre-feasibility, locked cycle testwork and pilot plant studies).

FYI Resources Managing Director Roland Hill said: “We are very pleased with the DFS outcome presented in this report as well as securing significant equity funding. The DFS results represent a persuasive economic case supported by extensive and technically detailed studies. The extent of diligence in this body of work provides us with assurance in our innovative HPA refining process to be able to deliver a high quality, high purity product in a consistent and reliable manner.

The DFS demonstrates that Cadoux has the merit to be developed as one of the sectors lowest capital and operating cost projects. We have secured landmark equity financing backing for up to A$80 million which we consider to be an outstanding achievement for the Company. The financing facility assists in de-risking the project by providing access to equity funding at critical development stages. Sufficient equity funding is one of the larger challenges for a junior company; we intend to use this funding package to accelerate our development schedule.

Feasibility Study Summary FYI’s HPA project has the potential to establish the Company as a material global supplier of high purity alumina. Timing for the development of the project is anticipated to meet the forecast uplift in demand for HPA in the 2022-24 period as a result of projected Electric Vehicle (EV) growth. High purity alumina is an aluminum oxide (Al2O3) powder with a purity equal to, or greater than, 99.99% and is used in the production of many high-tech products.

The category is split into two broad groups. The “Traditional” applications include light-emitting diodes (LED), plasma screens, artificial sapphire glass screens (eg TV’s, tablets, smartphone screens, electronics and aeronautics). The “Battery” and power storage applications which include use in Lithium-ion batteries, static power cells (power walls) and rechargeable batteries.

FYI’s corporate objective is to become a world-class, fully integrated, HPA producer utilising an innovative approach to the processing and refining of the product and to capitalise on the demonstrated capital and operating advantages over current bauxite (direct or waste) derived supply.

Our production approach strategy has two main integrated operating components in Western Australia: 1. the mining and beneficiation of kaolin on site at Cadoux to produce high grade aluminous clay feedstock for transportation to Kwinana for refining into HPA; and 2. the processing of the Cadoux feedstock at the proposed Kwinana refining facility to refine the kaolin directly into high purity alumina, all in Western Australia.