1. Any product sale represents positive progress at this time.
2. Securing a Korean customer, regardless of shipment size, is a step in the right direction.
3. Any revenue, even if it’s only around US$260k, is welcome right now.
The bad:
1. Why wait until lithium prices are at multi-year lows to sell on the spot market? If JZ had done this a few months earlier, the price received could have been significantly higher. This appears desperate, suggesting the company is seeking positive news (and immediate funds) ahead of the quarterly report.
2. We've seen a similar situation over 3.5 years ago with the sale to YNCC, which led nowhere.
3. Despite some assumptions, there’s no mention of this sale being part of a broader agreement, further sales, or qualification purposes. It seems to be just a quick spot market sale.
4. What happened to the product being "quarantined for the strategic partner process"?
5. The fact that AGY is now selling on the spot market indicates the strategic partner process might not be going well, which isn't a great sign.
6. There’s no mention of the customer or the sale price. My guess is that this likely isn't the "Tier 1" customer JZ has been seeking. Either way, we’ll find out the price in October with the Q3 cash flow report.
Overall:
Meh. Something is better than nothing, but the available information doesn't inspire much confidence. All IMHO, of course.
AGY Price at posting:
8.6¢ Sentiment: None Disclosure: Not Held
