It's certainly going to be interesting to see how this plays out. The main takeaway I took from the interview is they are pushing for an OT arrangement related to Stage 1 in the near term, this is important IMO as we are already able to produce 500 TPA with no further spending required, so gives us a small income at a time when cash is getting low and effectively buys time while they continue talks about funding future stages...the last thing we need is a CR just to keep the lights on, income from stage 1 should negate that.
For me anyway, thats another way of saying the first OT arrangement won't include any funding agreements or cornerstone investment, that will come later in 2019 when they have dicussed all options to scale up with prospective clients and also likely done from a higher shareprice, as we will not only be a small producer but will have established beyond doubt that the process works and can be scaled up.
AGY have fast tracked the process to date but it will still take time, and the more EV news that hits the market the more likely time will work to our advantage with regards to the shareprice, which in turn gives us more bang for the buck if a cornerstone investor comes onto the register.
The basic conclusion is that IMO beyond an initial stage 1 OT, taking time to secure funding should work to our advantage, when I mean more time I'm thinking sometime in 2019, so a little patience maybe required for those who expect things to happen overnight...
Cheers Whisky
AGY Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
(20min delay)