FYI Resources Ltd (ASX:FYI) (OTCMKTS:FYIRF) (FRA:SDL) has been included on the MSCI Australia Micro Cap Index which is designed to measure the performance of the micro-cap segment of companies traded on the Australian Securities Exchange.
Global market index provider MSCI has announced changes to their Global Micro Cap Indexes which incorporates the inclusion of FYI Resources.
The changes to the MSCI Global Micro Cap Indexes will take place as of the close of May 27, 2021.
Shares have been as much as 6.2% higher this morning to A$0.552 while FYI’s market cap is approximately A$167 million.
Relevance of inclusion
There are a number of advantages to FYI for being admitted into a global index that principally include:
- Increased exposure to global institutions;
- Gaining broader exposure to the investment markets;
- Likelihood of increased liquidity;
- Increased access to capital sources; and
- Greater research coverage and transparency for institutional and retail investment.
MSCI is a leading provider of investment services such as research, data and technology to the global investment community enabling clients to better understand and analyse key drivers of risk and return and build more effective investment portfolios.
HPA strategy
FYI is positioning itself to be a producer of 4N and 5N high purity alumina (HPA) in the rapidly developing high-tech product markets.
The foundation of this HPA strategy is the company’s moderate temperature, atmospheric pressure innovative process flowsheet.
HPA is increasingly becoming a sought-after input material for certain high-tech products principally for its unique properties, characteristics and chemical properties that address high specification requirements such as LEDs and other sapphire glass products.
The longer-term driver for HPA, with forecasts of >17% CAGR, is the outlook for the burgeoning electric vehicle and static energy storage markets where the primary function is in the use as a separator material between the anode and cathode in batteries to increase power, functionality and safety of the battery cells.