The FYI Resources (ASX: FYI) share price has been one of the best performers on the ASX today. This comes despite no news from the mining company since its update last Wednesday.
At the closing bell, FYI Resources shares finished the day trading at 77 cents, up 22.22%. In comparison, the All Ordinaries Index (ASX: XAO) is flat at 7,809 points.
What's pushing FYI Resources shares higher?
Investors appear upbeat about the alumina company's prospects, driving up its share price in Monday's session.
In May, FYI Resources and Alcoa Australia entered into an exclusivity agreement to facilitate negotiations of a high purity alumina (HPA) project joint venture. A 3-month term was to allow both parties to conduct due diligence to establish whether a joint venture could be technically and economically feasible.
Fast forward to last week, FYI Resources announced that due diligence has been completed. In addition, the company noted that substantial progress has been made in negotiations for a possible joint venture.
As a result, both FYI Resources and Alcoa Australia have extended the exclusivity agreement for another month. It is expected the extra time will finalise any remaining work and see the beginning of drafting a binding term sheet.
FYI Resources managing director Roland Hill commented:
Alcoa and FYI are negotiating a significant opportunity for a unique Joint Venture to leverage our combined strengths to capture opportunities in the high-growth HPA market. While the requirement for the extension is not ideal, our commitment to successfully negotiating a binding agreement is unwavering and we will continue to work constructively towards its completion.
Alcoa Australia president Michael Gollschewski added:
While not yet conclusive, Alcoa is encouraged by the progress made towards the establishment of a possible joint venture with FYI Resources for the production of HPA.
About the FYI Resources share price
Over the last 12 months, FYI Resources shares have accelerated by more than 978%, reflecting positive investor sentiment. The company's share price is up almost 214% in 2021 so far.
On valuation metrics, FYI Resources has a market capitalisation of roughly $235.3 million, with 336 million shares on issue.
