- The Western Australian company spent $1 million in the September 2019 financial quarter, collecting a $250,000 R&D payment last quarter for its now-completed pilot plant studies.
- FYI Resources collected a further $750,000 R&D tax rebate this month and finished its pilot plant trial a fortnight ago.
- The company is advancing a DFS for its flagship high-purity alumina project after securing project support from the WA Government last quarter.
Pilot plant data will … provide critical inputs for our definitive feasibility study.
FYI Resources managing director Roland Hill
FYI Resources Ltd (ASX:FYI) (FRA:SDL) received top-level support for its Cadoux High Purity Alumina (HPA, Al2O3) Project from the Western Australian Government in the September 2019 quarter as it progressed a 2019 definitive feasibility study (DFS) for the project.
The Western Australian company, which released its September 2019 quarterly results yesterday, had a number of achievements last quarter.
These included the WA Department of Jobs, Tourism, Science and Innovation (DJTSI) being appointed lead support agency for the project given state importance by its Premier Mark McGowan.
DJTSI is charged with delivering the states Future Battery Industry Strategy.
Pilot plant trial
Another milestone at the project was the completion of a pilot plant trial on October 9, 2019.
FYI Resources managing director Roland Hill said, “Successful commissioning of the pilot plant during the quarter is a significant step toward further validation of the companys HPA strategy.
“This led into trial production which commenced shortly after the quarter-end.
“The results from these trials will be vital in verifying FYIs process flowsheet. The pilot plant data will also provide critical inputs for our definitive feasibility study.”
FYI has a granted mining lease, M70/1388, for the ore reserve at Cadoux Kaolin Project.
The company views the WA Government approval as a major step that will allow it to progress activities on-site at the project northeast of Perth and southeast of Geraldton port.
FYI sees the project milestone as necessary to marking Cadouxs journey through further phases of development.
Established economics
The company has been working towards producing a definitive feasibility study (DFS) for the Cadoux project this year after publishing a pre-feasibilty study (PFS) last year.
Cadoux project was valued at US$560 million ($793.5 million) in FYI Resources September 2018 study, using a net present value (NPV10) calculated at a 10% discount.
The corresponding internal rate of return (IRR) in the PFS was 46% while project payback was a short 3.6 years.
Capital expenditure (capex) costs were US$179 million (A$261.35 million), or US$22,344 (A$32,634.93) a tonne, while forecasted average operating costs (opex) were US$6,467 a tonne, comparing favourably to the US$24,000 a tonne of forecasted revenue the company viewed as realistic.
A CSA Global reserve for Cadoux project, announced in October 2018, indicated it could support a 52-year mining operation producing 8,000 tonnes a year of HPA.
Global HPA demand is expected to increase from about 35,000 tonnes in 2017 to 125,000 tonnes in 2025, driven primarily by strong growth in demand for lithium-ion battery (LIB) separator coating.
Electric vehicle (EV) market growth is expected to contribute to HPA demand, with some researchers tipping year-on-year HPA demand growth of about 17%.
Consistent 4N product grade
Cottesloe-based FYI Resources achieved 99.997% to 99.998% Al2O3 in its latest pilot studies, exceeding a four-nines (4N) targeted grade of 99.99% Al2O3.
5N gradings (99.999%) have been previously achieved from the companys process.
FYI reported yesterday, “The assay results indicate that a consistent product grade can be achieved with variable feed inputs into the process.
“In addition, the range of impurities detected was minimal with only 10 impurity elements being detected via GDMS.
“Most significant were the very low sodium and iron levels, which is a key requirement for potential customers.
“The results from the VC test work demonstrated sound process chemistry and kinetics of the innovative process design which support FYIs broader HPA development strategy in terms of achieving low project capex and opex.”
Quarterly financials
FYI Resources spent $1 million in the September 2019 quarter after collecting a second $250,000 sum in the quarter in anticipation of an Australian Government research and development tax rebate.
The Innovative Technology Funding Pty Ltd (ITF) forward-payment for pilot plant andRead More – Source
