DGAP-News: FYI Resources / Key word(s): Study 
FYI Resources Ltd (FYI, USD0.52, mkt cap USD167M). Updated DFS Showcases Outstanding Project Metrics. BUY, PT USD1.52 (prior 
USD0.68). (news with additional features) 
2021-04-13 / 14:45 
The issuer is solely responsible for the content of this announcement. 
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13 April 2021 
Event: 
- Updated DFS. 
 
Investment Highlights: 
- Project economics further improved in updated DFS: the company recently released an updated DFS for its HPA Project, 
with outstanding project economics that further improve what was already a robust case. The headline metric was the 87% 
increase in project NPV to USUSD1.0B, from USUSD543M. 
- Updated project parameters enhance an already compelling project: FYI will scale up average annual production to 
10ktpa HPA, +25% on prior DFS. The company will also now produce 1,500tpa 5N HPA, while the balance of annual 
production remains 4N HPA. The basket price has accordingly been increased to USUSD26,400/t HPA product. The company has 
also lowered its discount rate to 8% (prior 10%) and increased AUDUSD to 0.75 (prior 0.70). 
- The Cadoux Kwinana HPA Project remains a massive, long life, high grade HPA project, now with improved project 
metrics: the updated DFS highlights include NPV[8] USUSD1.0B (prior USUSD543M) and IRR of 55% (prior 46%). The project 
retains its attractive capital intensity with modest - and modestly revised - capex of USUSD202M for 10ktpa of HPA 
product. Payback has been reduced to 3.2 years (prior 3.6 years). High margin project with low operating cost of 
USUSD6,661/t (prior USUSD6,217/t). No change to the JORC estimates of Reserve or Resource, with the Reserve comfortably 
supporting a 50+ year mine life. 
- Cash of USD10M (FSBe) and no debt. The company continues to advance finance arrangements, progress marketing 
discussions, and work with MOU signatory Alcoa to establish a JV agreement. 
 
Earnings and Valuation: 
- We continue to forecast commissioning and ramp in FY23e with first full year of production in FY24e to deliver 
earnings of USD143M (prior USD94M). 
- We have an increased risked valuation of USD1.52/share (prior USD0.68; 0.65x NPV unchanged). Our valuation is underpinned 
by an unrisked NPV10 of AUSD1,124 (prior USD770M) for the HPA Project in the base, assuming first production in FY23e, 
twelve-month ramp, and HPA price of USUSD26,400/t (prior USUSD24,000/t). 
- Considerable valuation upside potential: we note further drivers of value in the HPA project include life extension, 
potential production capacity upgrade, and/or inclusion of by-product revenue. 
 
Recommendation: 
- We continue to recommend FYI as a Buy with an increased price target of USD1.52/share (prior USD0.68), due to its long 
life, high grade kaolin asset, and low-cost processing HPA refinery project. FYI aims to be a single source integrated 
producer of high quality HPA with supply provenance wholly from a tier 1 mining jurisdiction. 
- Catalysts for the stock include: 1) FEED and FID decisions and commencement of the Cadoux HPA project; 2) customer 
offtake MOUs and marketing relationships; 3) updates on financing arrangements; 4) updates on the Alcoa JV; and 5) 
updates on LOM extension, capacity upgrade, and/or by-products. 
 
[Details in attached 11-page report.] Download below. 
 
Matthew Chen 
Research Analyst 
D: +61 2 9993 8130 
E: matthew.chen@fostock.com.au 
www.fostock.com.au 
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Additional features: 
File: Full report 
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2021-04-13 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
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1184229 2021-04-13

(END) Dow Jones Newswires

April 13, 2021 08:46 ET (12:46 GMT)