FYI Resources Ltd (ASX:FYI, OTCQX:FYIRF) has maintained its A$0.43 share price valuation from MST Access, a research platform of MST Financial.
The valuation comes at a time when the company is advancing its 1,000 tonnes per annum (tpa) scale high-purity alumina (HPA) small production and demonstration plant (SSP) at Kwinana in Western Australia.
In recognition of the potential and importance of the HPA project for the state, the WA Government awarded a $3 million grant to be used for progressing the SSP.
The analyst sees a significant upside from the current share price as FYI first successfully funds and then develops the project.
FYI shares are currently trading at around A$0.093 with a market cap of approximately A$34.1 million.
Following are a few excerpts from MST Access’s research report:
Project development phase gains traction
FYI’s proposed SSP at Kwinana has advanced on schedule, with anticipated study completion in early CY2024.
The workstreams underway aim to outline critical engineering solutions for the 1,000tpa SSP flowsheet after long-duration product testing trials completed earlier this year showed improved operating efficiency through FYI’s pilot plant.
The study is a key milestone and de-risking catalyst in the project’s development plan.
Grant from WA Government boosts support for SSP
In recognition of the potential and importance of the HPA project for the state, the WA Government awarded a $3 million grant to be used for progressing the SSP.
These grants are aimed at accelerating the advancement of projects where innovation is leading further investment to stimulate jobs and growth in new markets.
Rare earths feasibility study due 2QCY24
The JV with Arafura to jointly develop the Minhub mineral sands processing facility in Darwin, including downstream HREO separation options, is well advanced and working towards completion of the Feasibility Study during 2QCY24.
The Minhub project is complementary to FYI’s strategy of developing and producing assets of critical minerals exposed to high-tech applications.