ON was a thriving, rapidly expanding business when the offtake and partnership was signed. It was the change in China EV subsidies that killed them off. They are also producing lower grade batteries, when the industry is now demanding higher grade Lithium due to product life, and most importantly distance on 1 charge.
I don't like ON as a business as they stopped paying their staff, but I dont think AJM got conned or even made an ill-informed decision. If ON dies (suspect it will brought by bigger fish tomorrow) then AJM will just find another offtake partner. It will suffer whilst ON sells it AJM holdings but that will bounce quickly ( AVZ just went through this with a director offloading shares).
Enough doom and gloom, it will resolve the long termers, patience is key. The resource is amazing! Looking forward to ann soon regarding the % Li vs Iron etc
AJM Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
