I'd be ecstactic if AGY can achieve something similar to what you've outlined, but I think it's a bit optimistic. It would require a US$350 mill investment (>$500m AUD) just to achieve a 1-year discounted rate. That's a massive outlay when they wouldn't see a return on their investment for 4-5 years. I haven't seen any non-dilutive investment anywhere close to that in the lithium space, so AGY would certainly be setting a precedent.
In my opinion, it would be far more likely that a low ceiling and long-term pricing discounts would apply, in order to make it worth their while. That and the "investment" would more likely look like a debt facility, similar to that provided by Ford to Liontown ($300 mill) when they signed their offtake agreement.
AGY Price at posting:
47.0¢ Sentiment: Buy Disclosure: Held
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