'Earth to @GCar == "rectifying the plant issues" - they gave up "rectifying" the poor performing Pablo & family plant '
Seems to me that they temporarily gave up on the plant because the lithium price became too low. Even if the plant was running at 100% today, it would be running at a loss with such small volume. They were clearly making battery grade but problems existed to scale up to nameplate and they just didn't have the capital to try to figure it out in the current downturn. Mistake were made including hiring all those plant employees before it was sorted out (overconfidence?). Going into capital preservation mode was about survival and the right thing to do.
It's not easy, look at Kwanana hydroxide plant, a far bigger project with vastly more dollars to make it work by IGO and the Chinese. Construction started in 2016 and nameplate was expected in late 2022. Repeated delays well into 2024 and recently they announced they had also given up on the plant due to market conditions and costs.
Demand is strong and lithium will eventually improve but not much will happen before then.
AGY Price at posting:
2.7¢ Sentiment: Hold Disclosure: Held
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