Institutional investors likely to chase FYI after MSCI inclusion

By Trevor Hoey. Published at May 17, 2021, in Technology

In a development that highlights FYI Resources Ltd (ASX:FYI; OTCQB:FYIRF; FSE:SDL) significant discount to fair value, the company has been added to the MSCI Australia Micro Cap Index which is designed to measure the performance of the microcap segment of companies traded on the Australian Securities Exchange.

Investors were quick to pick up on the group’s inclusion which was announced this morning with its shares rallying 6%.

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.

Importantly, in terms of FYI receiving recognition for the advanced nature of its High Purity Alumina Project, as well as the group’s intellectual property, high-tech commodity exposure and multinational affiliations, inclusion in the MSCI will provide increased exposure to global institutions and investment markets and the potential for liquidity to increase, providing better access to capital sources and the ability to negotiate finance on competitive terms.

A $170 million company with a US$1.3 billion project

FYI is certainly punching above its weight with its market capitalisation of approximately $170 million far from reflecting the value of its High Purity Alumina Project as outlined in the recently released definitive feasibility study (DFS).

With a proposed production rate of 10,000 tonnes per annum of HPA and generating peak annual EBITDA of $250 million, the project has a net present value of more than $1.3 billion.

Such is the quality of this project that multi-billion dollar, multinational vertically integrated commodities miner, refiner and distributor Alcoa has been working hand-in-hand with FYI through the pilot planning stages and less than a fortnight ago FYI and Alcoa entered a 90 day exclusive period for joint venture discussions.

Should a joint venture agreement be formalised following these discussions, or developments such as offtake agreements emerge with Alcoa or other parties who have already demonstrated their interest in FYI’s product, one would expect a significant rerating.

It could be argued that the likely quantum of such a rerating has increased substantially through the group’s inclusion in the MSCI with much more attention likely to come from institutional investors.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!