Company History and Future
FOY is a public company that was incorporated in NSW on 16 December 1988 and has been listed on the ASX since November 1989.
Historically FOY’s business has been the exploration of mineral sands in Papua New Guinea. However, commodity prices have been volatile and in recent times have dropped significantly, which has led to rapidly reducing capital market interest in exploration in general and specifically for junior listed explorers.
The Board recognised this market position early in 2014 and subsequently made a number of announcements to the ASX, in which it identified the need to find a means of internally financing its exploration interests in PNG and in particular, the Amazon Bay Project.
The Board, in keeping with this objective of the Company, embarked on a process of identifying a cash flow generating project or business which could potentially fund (at least in part) the Amazon Bay Project,
As a result of the process the Company identified Integrated Green Energy Limited ACN 162 406 706 (IGE) as a business that had the necessary assets and prospects to generate short term cashflow plus a high profit growth potential.
On 29 July 2015 FOY requested a Trading Halt from the ASX while the shareholders considered a plan from the directorship to restructure the business. It was announced to the market that due to the decline in the mining industry, FOY would purchase IGE Technologies and change the focus of the company from resource extraction to resource recovery by exploiting the opportunities from 3 key technologies acquired from IGE:
- Plastics to Fuel
- Biomass to Fuel
- Biomass to energy / power
The trading halt suspended status remains in place pending the completion of this restructuring process.
Nonetheless, the FOY group is a publicly listed company. Its financial strength is best reflected in the fact that it owns significant unencumbered assets with a book value in excess of $16 million and has no debt. FOY is an asset rich going concern that has achieved the highest validation in the form of an unqualified audit report from an independent accounting firm, Hall Chadwick, as of June 30, 2016.
Shareholder approval was granted at an extraordinary meeting on 15 November 2016 for FOY to acquire certain business assets from IGE, including:
- exclusive licences to commercialise three technologies in Australia, New Zealand, China, India, North America, South East Asia, Papua New Guinea and Fiji;
- non-exclusive licenses in each of Western Europe, Eastern Europe, South America, Japan and Africa;
- a completed and operating commercial facility which re-refines co-mingled road fuels back into saleable diesel and petrol at Berkeley Vale, NSW (“BKV Commercial Plant”). This facility is also capable of converting waste plastics to fuel (“WPTF”) at a rate of 50 feedstock tonnes per day (“fstpd”);
- plans to design and construct a plant capable of processing 1,500 fstpd in the continental United States for GEP Fuel & Energy LLC;
- the transfer to FOY of executed contracts for waste feedstock supply; and
- the transfer to FOY of an experienced management team capable of operating a WPTF commercial facility.
Currently, a large proportion of all Australian waste that is not reused, recycled, or used for energy recovery is disposed of in landfill. Utilisation of the WPTF Technology purchased as part of the Acquisition will reduce landfill deposits in Australia.
The Board considers that the WPTF Technology presents a unique, commercially robust option to convert low value end-of-life waste plastics into high value fuels throughout Australia and internationally. This commercial recycling opportunity represents an exciting business that will impact positively on the environment, given that:
- Each year approximately 80% of plastic consumed and in circulation is not recycled and therefore FOY has significant scope to make practical, economic use of these previously unrecycled materials
- With landfill sites diminishing in capacity and with levies making waste disposal challenging and expensive, FOY will be offering waste producers an alternative that will reduce their landfill costs and at the same time reduce the level of landfill across Australia.
Following completion of the Acquisition, FOY’s business will comprise:
- selling fuel produced from predominantly non-recyclable waste plastics processed through a commercial scale plant to be located at Hume in the Australian Capital Territory (referred to as the ACT Commercial Plant);
- toll processing co-mingled road fuels processed through a commercial scale plant located at Berkley Vale in New South Wales (referred to as the BKV Commercial Plant);
- exploration and development of the Amazon Bay Project; and
- the exploitation or sub-licensing of the Technologies by exploring further opportunities both domestically and internationally.
FOY is currently in the process of undertaking a share capital raise via a prospectus being released to the market and obtaining environmental and DA approvals to proceed with the construction and operation of the ACT Commercial Plant.