It doesn't matter whether Rio’s 3ktpa plant is profitable when they get it to produce.
If technically successful, they will rapidly move on to a larger plant, which will enjoy economies of scale (just like ours will btw) and produce well after the current/near-term pricing environment.
They have clearly stated that they “couldn’t care less about what the lithium price is in the next 12 months” as for them, it doesn’t really matter in the context of the full project; whereas for us it may mean that we run our $$$ down to a level considered too low amidst the uncertainty ahead.
AGY has clearly stated:
“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.”
AGY does not have the luxury of pushing through the lull, full steam ahead, like Rio does.
SIMPLE
…and I note the consequent massive imbalance in risk-reward.
DYOR
AGY Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
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