FYI Resources has gone gangbusters over the past 12 months. Here’s why
The post Why FYI Resources (ASX:FYI) share price is roaring higher appeared first on The Motley Fool Australia. –
FYI Resources (ASX: FYI) share price is performing swimmingly. In 12 months, the company’s shares are up 1,300%. In the last 6 months, they’re more than 200% higher. And at the market close yesterday, the FYI Resources price was up 9.52% for the day, closing at 69 cents.
Decarbonising the global economy, it’s a thing.
According to its own company literature, FYI is positioning itself for high quality, high purity alumina (HPA) through low carbon and environmental footprint production.
FYI Resources says that there are two ways to apply HPA. There is the application in LED screens and other sapphire glass products, substrates, electronics and specialty abrasives.
The second market — and longer-term driver for HPA — is the application in lithium-ion batteries for the burgeoning electric vehicle and static energy storage markets. HPA in these markets allows better functionality and safety of the battery cells, according to the company.
Decarbonising the global economy is a priority for governments in the United States and Europe, so it is little wonder that FYI Resources has caught the attention of Australian investors.
Agreement with Alcoa
Alcoa is a leading global aluminium producer. On 8 September 2020, FYI Resources entered into a Memorandum of Understanding (MoU) with Alcoa to explore the possible joint development of FYI’s HPA project.
In a company release last month, FYI Resources managing director Rolland Hill said:
We believe there is a highly complementary fit between the corporate objectives, cultures and operational expertise of FYI and Alcoa.
Any commercial agreement would also seek to leverage the corporate capabilities of Alcoa, who are globally recognised as a leading producer of alumina, and FYI who have developed and demonstrated an innovative, fully integrated and environmentally conscious HPA refining process.
The future looks bright
With governments pushing to decarbonise the economy, a possible joint venture with Alcoa, and HPA becoming increasingly sought-after for its unique properties, FYI Resources seems well-positioned in the market.
And judging by the upward trend of the past 12 months, the FYI Resources share price appears to be gaining momentum.