Why has the FYI Resources (ASX:FYI) share price jumped 13% in a week?

The FYI Resources (ASX:FYI) share price has gained almost 13% over the past week. We take a look at what’s been happening for the company.

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FYI Resources Ltd (ASX: FYI) shares have risen significantly over the past week amid news the Australian miner will begin trading on the US over-the-counter markets. At the time of writing, the FYI share price is up 2.61% today to 59 cents per share. This brings FYI’s gains over the past week to 13.46%.

FYI Resources is an Australia-based company focused on two key businesses and geographical segments. These are exploration and evaluation of potash projects in South East Asia and a high purity alumina (HPA) exploration and evaluation project in Western Australia.

FYI is increasingly aiming at profiting from the shift towards renewable energy through its HPA exploration.

FYI trading on the US OTCQX exchange

News last week the company has commenced trading on the United States OTCQX exchange appears to be continuing to bolster the FYI share price. The OTCQX exchange represents the highest tier of US over-the-counter markets made for small shares, which were formerly known as pink slips.

FYI Resources will trade under the stock code OTCQX: FYIRF. The company says trading on the OTCQX will enhance its visibility and accessibility to the growing market of North American retail, high-net-worth and institutional investors.

It listed the primary advantages to North American investors as follows:

• Allows trading of FYI in their 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.
• All shares are maintained through the company’s current share registry, Automic Group.

FYI managing director Roland Hill commented:

We are delighted to now be part of the North American financial community and be trading on the OTCQX. FYI believes it is a perfect time to increase our exposure to one of the largest and most sophisticated markets in the world. In light of the growing US interest in E-mobility and battery related investments, as a participant in the electric vehicle revolution, FYI believes it is an important step in our future to become a participant in the OTCQX.

FYI’s lithium battery aspirations

In other news boosting the FYI share price recently, the company’s latest market update noted the potential market for its HPA material. The release noted that HPA is “increasingly becoming a primary sought-after input material for certain high-tech products.”

HPA has principally two major market streams. One is a traditional market such as LEDs and other sapphire glass products, substrates, electronics and specialty abrasives. The second market, and longer-term driver for HPA, is its application in lithium-ion batteries.

The primary function of HPA in the burgeoning electric vehicle and static energy storage markets is as a separator material between the anode and cathode in batteries to increase the power, functionality and safety of the battery cells.

FYI share price snapshot

In addition to the near-13% gains for the FYI share price over the past week, the company’s shares have soared by around 110% in 2021 so far. FYI shares have also rallied a whopping 1,375% over the past year, beating the basic materials sector by a similar margin.

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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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