Meetings were held with industry participants in China, Japan and South Korea and FYI confirmed its Cadoux HPA aligns with a market supported by a premium price and strong demand for new supply sources.
Along with investigating Asian regional HPA markets, the trip aimed to broaden awareness of FYI’s Cadoux project’s potential high-grade product and strategic 52-year mine life.
FYI also used the visit to explore commercial opportunities with selected partied including offtake and strategic financing for Cadoux.
FYI managing director Roland Hill said the trip helped FYI establish new contacts and provided great insights into East Asian HPA markets.
He said: “The industry feedback gained from multiple sources is encouraging and supports both our internal views on pricing and demand for HPA as well as the forecasts of independent market researchers, such as CRU Group, that we referenced in our pre-feasibility study (PFS).
“All formal meetings proceeded very well, with particular focus on the quality represented in FYI’s high grade (99.99%) and excellent individual product characteristics of its HPA.
“The meetings also helped FYI to better understand the HPA industry and market.
“FYI will continue to develop its relationships and market channels within East Asia in line with its long term and strategic HPA production objectives.”
FYI Cadoux HPA pre-feasibility summary economic metrics
Through its market investigation FYI determined the mid to long-term forecast demand for HPA was strong.
Demand trends not only support traditional HPA-derived products but also the developing electric vehicle and speciality ceramics markets.
FYI has completed internal assessment of the parties it met and the preferred group of buyers and HPA end-users are undertaking discussions towards establishing formal offtake relationships.
The discussions may also include strategic financing alternatives for the Cadoux HPA Project and negotiations for a binding agreement will run in parallel with Cadoux’s bankable feasibility study now underway.