{australien_flagge} At its annual general meeting today, FYI Resources (ASX: FYI; FRA: SDL) made a new presentation to shareholders outlining its latest development status. According to the presentation, a formal joint venture with partner Alcoa Ltd is scheduled to be signed in the coming year. The key catalysts are the final investment decision and the construction of a “small scale plant” next year. Already in the planning stage is apparently a joint “HPA Ordering Platform” with which the two partners intend to reach customers online. The Annual General Meeting presentation is available at the following link: https://fyiresources.com.au/wp-content/uploads/2022/11/2022.11.30-AGM-Presentation.pdf.
Conclusion: Alcoa Ltd. dominates the world market for the commodity Al2O3 with an estimated share of 20 percent ex China. Prices for this bulk product with an average purity of 95% Al2O3 range from US$400 /t to US$600/t for Smelter Grade Alumina (SGA). A joint venture with FYI Resources could, for the first time, give Alcoa privileged access to the fast-growing, high-margin 4 or 5N purity (99.99- 99.999% Al2O3) HPA market, where a ton now pays US$30,000. This would be a whole new market for Alcoa, as the company has not previously offered products of this purity. With the FYI process, which uses kaolin as a feedstock instead of aluminum metal, there is an opportunity to secure lasting price and cost leadership in the HPA market. Under these conditions, the joint venture could very well aim for HPA market leadership. The production of 9,000 metric tons per year targeted under the joint development plan would initially serve only about 10 percent of the market with HPA. To play a similarly dominant role in HPA as it does in the Al2O3 commodity market, the joint venture would have to expand its production significantly in later years.
At its annual general meeting today, FYI Resources (ASX: FYI; FRA: SDL) made a new presentation to shareholders outlining its latest development status. According to the presentation, a formal joint venture with partner Alcoa Ltd is scheduled to be signed in the coming year. The key catalysts are the final investment decision and the construction of a “small scale plant” next year. Already in the planning stage is apparently a joint “HPA Ordering Platform” with which the two partners intend to reach customers online. The Annual General Meeting presentation is available at the following link: https://fyiresources.com.au/wp-content/uploads/2022/11/2022.11.30-AGM-Presentation.pdf.
Figure 1: Outlook for the coming year.
Figure 2: FYI sets course for market leadership for HPA together with Alcoa Ltd.
Conclusion: Alcoa Ltd. dominates the world market for the commodity Al2O3 with an estimated share of 20 percent ex China. Prices for this bulk product with an average purity of 95% Al2O3 range from US$400 /t to US$600/t for Smelter Grade Alumina (SGA). A joint venture with FYI Resources could, for the first time, give Alcoa privileged access to the fast-growing, high-margin 4 or 5N purity (99.99- 99.999% Al2O3) HPA market, where a ton now pays US$30,000. This would be a whole new market for Alcoa, as the company has not previously offered products of this purity. With the FYI process, which uses kaolin as a feedstock instead of aluminum metal, there is an opportunity to secure lasting price and cost leadership in the HPA market. Under these conditions, the joint venture could very well aim for HPA market leadership. The production of 9,000 metric tons per year targeted under the joint development plan would initially serve only about 10 percent of the market with HPA. To play a similarly dominant role in HPA as it does in the Al2O3 commodity market, the joint venture would have to expand its production significantly in later years.
Jetzt den Goldinvest-Newsletter abonnieren
Folgen Sie Goldinvest auf Twitter
Risk notice: GOLDINVEST Consulting GmbH publishes comments, analyses and news on https://goldinvest.de. These contents serve exclusively the information of the readers and do not represent any kind of call to action, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. Furthermore, they do not in any way replace individual expert investment advice and do not constitute an offer to sell the stock(s) discussed or a solicitation to buy or sell securities. This is expressly not a financial analysis, but an advertising / journalistic text. Readers who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. There is no contractual relationship between the GOLDINVEST Consulting GmbH and its readers or the users of its offers, because our information refers only to the company, but not to the investment decision of the reader.
The acquisition of securities involves high risks, which can lead to a total loss of the invested capital. The information published by GOLDINVEST Consulting GmbH and its authors is based on careful research. Nevertheless, any liability for financial losses or the content guarantee for topicality, correctness, adequacy and completeness of the articles offered here is expressly excluded. Please also note our terms of use.
According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares of FYI Resources and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time. Furthermore, GOLDINVEST Consulting GmbH is remunerated by FYI Resources for reporting on the company. This is another clear conflict of interest.
