FYI moves to alumina BFS

Having recently detailed a $US178 million ($248 million) capital cost for its Cadoux Kaolin alumina project, FYI Resources has now commenced a bankable feasibility study (BFS) for the proposal.

Last month, FYI revealed a preliminary feasibility study (PFS) for the project, which outlined production of up to 8,000 tonnes per annum of high purity alumina (HPA).

The study was modelled on a 25-year project life, with construction forecast to commence in the fourth quarter of 2019.

The company said it is fully-funded to complete the BFS. 

Managing director Roland Hill outlined the strength of the preliminary study.

“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 said.

“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 EV 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 $US128 million.”

“On the back of our recent trips to Japan, China and [South] Korea, we now look forward to advancing discussions with industry players for potential offtake and financing and progressing the project towards the completion of a BFS in the first half of 2019 for which we are fully funded.”

Shares in FYI finished up 4.26 per cent at 9.8 cents each today.