High Purity Alumina

Strategy Progress Overview

October 2017 I www.fyiresources.com.au I ASX:FYI

What is HPA

  • High purity alumina (HPA) is aluminum oxide (Al2O3) powder with a purity equal to or greater than 99.99%

  • HPA's properties include low-friction and high wear- resistance, hardness, thermal and electrical insulating ability, non-corrosive and broad chemical compatibility

  • HPA is utilised extensively in applications such as:

    • light emitting diodes (LEDs)

    • Electric vehicle (EV) components

    • semiconductor wafers

    • sapphire glass for smart phones, television screens and watch faces

    • high-strength ceramic tools

    • space and aeronautics industry components

    • high tensile light weight fabrication applications

      HPA is a versatile material allowing a multitude of uses in new age industries

    • artificial gemstones (sapphires)

    • abrasives

    • fire-retardant insulation for electrical circuitry

    • battery technologies and energy storage

      FYI'S HPA Strategy

      • FYI's objective is to become one of the world's leading

      producers and suppliers of >99.99% HPA (Al2O3)

      • To address the growing global demand for next generation high performance materials

      • FYI's strategy is to own and control its HPA production chain from high quality feedstock through to processing, thus allowing FYI to meet the increasing quality and assurance demands of the market

      • To meet the market's requirements through conventional chemistry but via a non-traditional IP processing route

      • Our HPA process route should provide the following advantages over current conventional Al2O3 production, including:

      o materially cheaper delivered feedstock

      o substantially lower capex & opex = improved economics

      o control of product chain and quality

      o lower energy requirement

      o less waste

      o lower overall environmental impact

      o ability to alter final product to meet market demand

      FYI's HPA strategy is

      to develop a vertically integrated business to address the forecast long term HPA shortfall

      HPA Market

  • Historically a small market - no justification for innovation

  • Consistent, low-growth demand previously; new applications have created demand and new market opportunities

  • The current global 4N (99.99% Al2O3) HPA market demand is ~26k tpa; this is expected to increase to ~48k tpa by 2025

  • Anticipated CAGR for HPA market is ~20.5%

  • HPA is experiencing increasing demand due to its significance in

    today's high-performance electronic devices

  • Major industry drivers include:

    • increasing environmental policies and awareness

    • phasing out of old and inefficient technologies (eg incandescent lighting and internal combustion engines)

    • burgeoning sustainable & clean technology industries (eg EV

      batteries)

    • providing assurance to manufactures of a reliable and

Al purity pricing scale

Smelter Grade Alumina 99.5% Al

US$400/t SGA

Smelter Grade Aluminum

99.9% Al

US$1600/t SA

High Purity Alumina

99.9% Al

FYI's HPA strategy is based upon positive market fundamentals

consistent supply of HPA

US$6000/t

99.99% Al2O3

US$23000/t

99.999% Al2O3

US$35000/t HPA HPA HPA

FYI Resources Limited published this content on 26 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 October 2017 06:38:05 UTC.

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