Alternatively, we hear that there is a funding solution in place for the expansion, with the engineering design for it incorporating what the company AND third-party consultants consider will resolve the filtration circuit issues.
Based on what the company has said and done with the 2ktpa plant, in consideration of the market outlook, AND based on the anticipated timeline of the work that is currently underway to support a funding deal, I would not be at all surprised if it is the funding announcement that leads to the next suitable rerating of the share price.
I don’t expect that to be announced soon.
I do, however, think that if the macro turns and peers head “steadily” north in the coming 3/6/9 months, then we will also increase with that tide, before we then see the rerate from a funding deal.
In other words, imo, I don’t think we need the current plant to be humming to see a rerate, and considering the li market, I suspect it will be other news that launches us.
Imo it would take a rather sharp recovery in Li prices, with confidence that will be sustained, and for that to occur relatively soon, for the company to acquire and commit the required $$ to get the 2ktpa plant going and ramp production, and I don’t see all that occurring in 2025; therefore imo they will stick to the work on the feasibility/FEED/funding deal and that will be the next big catalyst on our list.
Only time will tell.
Imo
Dyor
AGY Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
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