FYI Resources Ltd (ASX:FYI) has qualified to be upgraded to the US-based OTCQX market.
The company commenced trading on the OTCQX on Friday, October 29, 2021, under the symbol FYIRF.
FYI qualified for the OTCQX by meeting its balance sheet requirements, having high financial standards, following best practice corporate governance and demonstrating compliance with applicable securities laws.
OTCQX listing a major milestone
FYI’s is positioning itself to be a significant producer of 4N and 5N high purity alumina (HPA) in the rapidly developing high-tech product markets.
The upgrade is thus a major milestone for the company as it enables it to showcase its value and build visibility among US investors as well as providing real-time stock quotes outside of FYI’s ASX primary listing.
FYI first received the greenlight from the Securities and Exchange Commission (SEC) for trading on the US-based OTC market back in May this year.
It applied to list on the OTC due to an increase in US investor interest based on FYI’s fully integrated flowsheet design which delivers HPA coupled with strong project financial metrics, a positive ESG impact and increasing investment exposure into electric vehicle and strategic battery minerals supply chain opportunities.
The primary advantages to North American investors haven’t changed and include:
- Allows trading of FYI in local time zone;
- Trades and settlements are in US Dollars (no exchange rate risk or additional fees);
- The OTCQX is a common share (same class) as the FYI shares traded on the ASX (ASX:FYI); and
- All shares are maintained through the company's current share registry, Automic Group.
The US is a major market for HPA and its technology industry.
HPA highly sought after
HPA is becoming the primary sought-after input material for certain high-tech products.
It is best known for its use in LEDs and other sapphire glass products, however longer-term, there will be a need in 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.
According to business intelligence and research company CRU, the unconstrained demand forecast for 4N+ (99.99% or greater) HPA will be significantly stronger than initial estimates from 2018, where it was estimated at 92,900 tonnes (2025). In a recent market report, CRU estimates that 4N+ HPA could in theory grow at 30% per annum from 19,000 tonnes (2018) to 272,000 tonnes (2028).
FYI applies both an ESG and economic overlay to ensure long-term sustainable and shareholder value is created via the development of its innovative, high quality, ultra-pure HPA project.