Fundamentals 2024, page-15

In 2018, Orocobre produced 12,470 tonnes of lithium carbonate. They sold 11,837 tonnes, which is a smidge below nameplate for Rincon. For the product sold, they achieved a gross margin of US$8,384 per tonne, which is almost exactly the margin AGY would achieve selling at current prices:

US$7,500 (AGY's estimated CAPEX) + US$8,384 (ORE's 2018 margin) = US$15,884 vs the current spot price of US$15,725. Very close indeed.

Orocobre's NPAT in 2018 was US$30,823, which is A$46.9m.

This is reality, rather than some of the fanciful financial projections being put forward here. A demonstrated, factual, clear comparison of a company who sold a quantity almost exactly equaling AGY's nameplate rate, at a margin almost exactly equivalent to what AGY could achieve in today's market.

And it's worth $50m per year in profit.