
FYI Resources Ltd. has reportedly completed the preliminary feasibility study (PFS) for its 100 per cent-owned Cadoux Kaolin Project in Western Australia. PFS confirms that the objective of FYI with this project is to become a predominant vertically-integrated, long life producer of high-purity alumina (HPA).

According to FYI PFS’ report, the project would be producing up to 8,000 tonnes of HPA per annum with low capital and operating costs, and would be delivering a net present value (NPV0 of US$506 million for a 25-year project life.
FYI managing director Roland Hill said: “The PFS demonstrates FYI Resources is in the attractive position with the potential of becoming a long-life, low cost and high margin HPA producer.”
He further added, “The positive economics are a result of realistic basket pricing and a production profile that is expected to meet the forecasted industry demand growth over the coming years as a result of the electric vehicles revolution. Importantly, we believe we should sit within the lowest operating cost quartile generating significant margins, demonstrated in the average annual EBITDA at steady state of US$128 million.”
In the background of electric vehicles (EV) revolution primarily driven by the strong growth in demand for lithium-ion battery (LIB) separator coating, the demand for HPA is expected to increase from around 35,000 tonnes in 2017 to 125,000 tonnes in 2025.
With regards to the future funding of the Cadoux Kaolin Project, FYI is in discussions with industry participants with the potential to provide financing as part of an offtake, in addition to traditional means of debt and equity financing.
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