Ann: Quarterly Activities Report - March 2025, page-16

Yep. There’s not much to like in this quarterly report; just another recycled word salad from JZ. Expenditure jumped 25% compared to the previous quarter, despite their supposed focus on minimising costs. They burned through nearly A$2 million, leaving ~A$4.1 million in cash as of 31 March 2025. Given AGY's ongoing direct development spend of about A$500k per quarter, and the fact we’re already a month into the current quarter, it’s safe to assume that AGY's cash balance now starts with a 3.

Notably, they chose to omit the cash position for the JV, which likely means it was close to zero at quarter's end. Based on that, it’s highly probable another cash advance has already been made to the JV in April. Considering the last advance was $944k, if a similar amount has been transferred, the combined cash balance between AGY and the JV today is probably sitting in the high A$2 million range. If that’s what they call a "strong financial position," I’d hate to see their version of mediocre or weak.

Also worth mentioning is the change in their language around strategic partners. In the previous quarterly, AGY said it had advanced talks with European and North American supply chain groups. Now, they’re suddenly “exploring Western and non-Western groups.” To me, that clearly signals they’re no closer to securing a deal; the goalposts keep shifting as their position gets more desperate. My guess is that they're now probably entertaining proposals from some Chinese groups who are unlikely to be very generous.

AGY have all but admitted that a strategic partner deal won't happen in the current lithium market. Realistically, they'll have to wait for the next lithium bull market to lock in funding, but given the cyclical nature of the sector, by the time they reach Stage 3 continuous production (if ever), we’ll probably be in another bear market.