General Discussion AGY, page-15952

@blacktrade
...If you have a picture in mind of Rio's straw in the AGY water glass, can AGY have a straw (or many) in theirs?
To answer your question, yes but it goes both ways...

In my opinion, the argument that it can be done the other way around is inapplicable or very theoretical.
Realistically, we both know that Rio has very different capabilities than AGY.If they wanted to they would increase the number and capability of production wells with ease. That's something AGY could only look at.

I imagine that with neighboring operations with the same salar like a scale. That's why the Livent/Allkem, example GCar gave, fits quite well. We know about the production problems in the past, especially with AKE.Both are carbonate producers and we also know that the biggest challenge in production is not extraction, but refining to battery quality.If simultaneous mining regularly unbalances the scales, the difficulties of ensuring a continuous production process become greater.Maybe that's why they got together and said: "What are we actually doing here? Before we take each other's brine and both can't produce sensibly, let's do it together!"

Of course, this possibility would also apply to AGY/Rio, with the difference that Livent/AKE were negotiating partners on an equal footing due to their similar size.

In addition, I have read that doubts have been expressed about the purchase price (US $ 825 million) for Rincon, in the sense of it being too expensive. I disagree, because I believe that the expertise (geologists, chemists, lawyers, etc.) for the valuation was either already available at Rio or was bought in when necessary. Explorations to better understand the salar, brine and reservoirs are ongoing. At the same time they are facing significant cost increases(US$ 140 million).

There will be, as so often, the will to be good neighbors, but in doubt, you will drill where they get the most economic benefit.

Have a nice evening
Smith71