* $13,400 X 2000t = $26m year at best
* Plant would still need to ramp up
* Lithium prices can still come down more
* Costs, Puna alone is $18m year
So pretty much anyway you look at it, the low volume (2000t/y) operation just wasn't going to make AGY economical even if everything was running perfectly at current lithium prices.
'The Company determined the rectification works that were being conducted to advance the ramp-up phase of continuous operations and progressing production operations may not achieve economic viability in the short term, and whilst lithium markets remain subdued, elected to preserve capital and not invest such funds into the operation.
The Company will maintain and preserve the 2,000tpa facility during this period.
With ongoing interest from third-party battery industry participant groups for future LCE product off-take, the Company will retain optionality to resume operations (including completing rectification works) if a sustained increase in lithium prices and appropriate operational conditions are realised – thus maintaining its strategic advantage of having a lithium operations facility.'
Sounds like rectification works for Stage 2 are on hold until the lithium sector improves. Capital preservation mode.
AGY Price at posting:
4.4¢ Sentiment: Hold Disclosure: Held
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