DGAP-News: FYI Resources / Key word(s): Miscellaneous 
FYI HPA PROJECT NPV INCREASES TO USUSD1.014Bn 
2021-03-31 / 10:55 
The issuer is solely responsible for the content of this announcement. 
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Key points 
- Updated DFS results in increase in NPV reflecting technical and commercial progress of FYI's HPA Project development 
and positive value re-rating 
- FYI's innovative HPA process technology and process design validated through extensive test work and pilot plant 
trials 
- Updated DFS results in compelling project metrics demonstrated in revised NPV 
- HPA product marketing research confirms strong HPA industry growth and pricing support 
FYI Resources Ltd (ASX: FYI) (FYI or the Company) is pleased to announce its updated definitive feasibility study ( 
Updated DFS) of the Company's high purity alumina (HPA) Project resulting in an increase in net present value (NPV). 
The Updated DFS has been prepared by the Company in conjunction with selected industry specialists. The resulting NPV 
increase reflects the major technical improvements, substantial Project de-risking and other key commercial 
developments accomplished since the initial DFS announcement on 11 March 2020. 
The Updated DFS and revised NPV have confirmed the HPA Project is not only technically and financially robust, but the 
development work completed since the initial DFS in March 2020 demonstrates continued project de-risking and positive 
value re-rating. 
Following the release of the Company's initial DFS, enhancements that have been made to the Project include detailed 
flowsheet advances, process redesign, production optimisation and extensive supporting testwork (including multiple 
pilot plant trials) to optimise and de-risk the integrated HPA strategy. 
After taking into account the technical and commercial improvements, market applied metrics relative to its peer group, 
updated inputs (exchange rate) and discount rate (8%) FYI has updated the base NPV of the project by 87% to USUSD1.014 
billion. 
Major Highlights of Updated DFS and NPV 
FYI's Updated DFS highlights an increase in the forecast financial returns and a de-risking for the Company's HPA 
Project. The points are summarised below: 
- Sensitivity analysis demonstrates robust project economics 
- Updated DFS inputs are supported by additional pilot plant trials and data validation 
- Updated DFS conducted by leading hydrometallurgical experts 
- The Updated DFS and financial analysis was completed to an overall accuracy of -10% to +15% 
- Updated key project NPV metrics include: 
- post-tax NPV[8% ]of USUSD1.014 billion 
- project post-tax IRR 55% 
- annual production 
- 8,500 tpa 4N HPA (99.99% Al[2]O[3]) 
- 1,500 tpa 5N HPA (99.999% Al[2]O[3]) 
- average selling price USUSD26,400/t (basket 4N and 5N pricing) 
- annual project revenue USUSD261m 
- annual project EBITDA USUSD186m 
- project capex USUSD202m 
- project opex USUSD6,661 
- project payback 3.2 years 
- AUD:USD exchange rate of 0.75 (from 0.70) 
FYI Resources Managing Director Roland Hill said: "The update to the Company's initial DFS was an obvious progression 
in the development of our HPA project strategy. The quality and robustness of our HPA Project was demonstrated in our 
initial DFS released in March 2020. Since then, the Company has continued the evolution of the Project through further 
process design improvements, detailed test-work via numerous pilot plant trials and other supporting activities to 
assist in de-risking the Project. There has also been a number of external factors such as the AUD:USD exchange rate 
movement that has had an impact on the economics of the project. It was evident that a more up-to-date financial case 
be presented to the market. 
The Updated DFS outcome represents a persuasive economic case and demonstrates the merit of the Project in being 
developed as potentially one of the HPA sector's highest quality, lowest capital and operating cost projects". 
FYI believe the increased NPV outcome is a more appropriate reflection of the HPA Projects achievable potential and 
signifies the greater confidence in the Project given the progress accomplished by the Company in the last 12 months. 
It should be noted that the level of detailed work and supporting inputs into the Updated DFS and financial forecast 
(NPV) is substantial and is the outcome of a further 12 months of development progressed from the Company's initial 
DFS. 
Key changes to Updated DFS and NPV 
Discount rate Revised from 10% to 8% reflecting further Project development resulting in increased project confidence 
HPA annual    Revised from 8,000tpa to 10,000tpa based on expected HPA market growth 
production 
HPA product   Sales assumptions includes 8,500tpa of 4N and 1,500tpa 5N. FYI has demonstrated that 5N production is 
mix           possible and will likely become a material contribution to future sales 
HPA pricing   Product pricing has increased from US24,000/t (100%4N) to an assessed basket price of USUSD26,400/t (85% 4N 
              / 15% 5N) reflecting a conservative selling price 
Exchange rate The AUD:USD exchange rate has moved from 0.70 to 0.75 
Capex         Exchange rate has impacted the project capex from USUSD189 to USUSD202 due to the AUD component of the cost 
              base (expressed in USUSD) 
Opex          Exchange rate has impacted the project opex from USUSD6,217/t to USUSD6,661/t due to the AUD component of the 
              cost base (expressed in USUSD) Intangible Improvements to FYI's HPA Project

- Further attraction of major industry participants and potential off-take parties to FYI's HPA strategy (including Alcoa of Australia)

- Advancing of product marketing and potential off-take party assessment

- Progressing Project financing alternatives providing visible financing options

- WA Government recognition of HPA Project status through granting of Lead Agency support

- Environmental, Social and Corporate Governance (ESG) and carbon footprint targets designed to lower Project carbon emissions. Summary of Updated DFS The Updated DFS is based on the initial DFS of March 2020 which considers FYI's innovative, low temperature, low pressure leach and precipitation process flowsheet for the production of high quality HPA. The Updated DFS combines detailed technical and financial inputs that result in the study having a -10% + 15% degree of accuracy and confidence - suitable for this level of study.

FYI's process design basis was the adoption and advanced refinement of a conventional leach and precipitation flowsheet which was adapted and optimised to commercialise the production of high quality, high purity alumina. The process refinements are specific to FYI's unique feedstock and its amenability through the innovated flowsheet resulting in excellent production characteristics including achieving lowest cost quartile for both opex and capex.

A revised financial model and resulting NPV was completed based on all the initial DFS, pilot plant trials and other supporting studies used in calculating and estimating the project capital and operating costs as well as all other operating parameters.

FYI is continuing to progress the development of its HPA Project strategy and advancing to the final engineering stage for the HPA Project. The Company's updated DFS confirms the Project's potential ability to generate outstanding financial returns over the initial modelled life of 25 years.

Purpose of Updated DFS and revised NPV

- to provide the market with quantifiable project development progress and de-risking measurement

- the Updated DFS defines a clear pathway for development to commercial production of HPA

- the Updated DFS and supporting pilot plant testwork demonstrates production of high quality, high purity 4N and 5N HPA suitable for LED and Lithium-ion battery markets

- the ongoing process refinements and optimisations to the process design suggest potential for further improvements

- to demonstrate the technical and financial robustness of the HPA project via continued process development testwork and trial production

- the response from potential customers to FYI's high quality HPA is very positive

The initial DFS established an outstanding set of financial results for the Company's HPA project. The initial DFS demonstrated the quality of the innovative flowsheet and the robustness of the Company's HPA project and outlined the clear pathway forward to developing an integrated HPA refining business in the favourable operating jurisdiction of Western Australia. FYI has taken the foundation work and improved the overall project metrics by a further 12 months of continuous project improvements.

The Updated DFS and revised NPV demonstrates the progress achieved with FYI's HPA Project.

Key DFS assumptions and outcomes include: 


DFS version                                         Initial   Updated 
Discount rate                                        @10%        8% 
NPV (post tax)                                     USUSD543Mn  USUSD1.014Bn 
IRR (post tax)                                        46%       55% 
Payback period (years) (post tax) (inc ramp up)       3.6       3.2 
Assumed exchange rate AUSD/USUSD                         0.70       0.75 
Modelled DCF Life of Project (years)                  25         25 
Total Sales (initial 25 years) no escalation       USUSD4.7Bn   USUSD6.1Bn 
Total Project net operating cash flow (25 years)    USUSD2.Bn   USUSD3.3Bn 
Annual EBITDA (average)                            USUSD133Mn    USD186Mn 
Cash flow after finance and tax                     USUSD88Mn   USUSD131Mn 
Shares on issue (as at publication of the DFS)     212.77Mn   321.09Mn 
Capex (USUSD) (8,000 tpa)                            USUSD189Mn   USUSD202Mn 
Capex/t (USUSD/t)                                    USUSD23,575 USUSD20,200 
Opex (USUSD/t) - Life of Mine C1 costs, FOB Kwinana  USUSD6,217   USUSD6,661 
Tonnes Processed (initial 25 years) (kt)              189       247

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March 31, 2021 04:56 ET (08:56 GMT)