2.6c is the obvious target now, though we may need to see some dilution before it happens. Abandoning the 2,000TPA plant does reduce the cash burn which means they don't need the CR as urgently, but they still have significant cash burn while the company is not even making any attempt to achieve anything. The market hates risk, and a mothballed operation in a sector out of favour is not going to hold a price up for long. The only reason it's still around 5c is price anchoring. If some people thought it was worth 8c yesterday, they can't help but think it's a bargain under 5c today. Their heads need time to adjust, but that will happen over the next few days and weeks.
We still have an ugly quarterly to come!
All year I've been saying the chart itself is ugly, and only something fundamentally positive would change that (which would have taken a miracle). Other than another dead cat bounce off the current step could produce any positivity at this point, but there aren't many stairs to bounce off between here and 2.6c, which should provide something of a floor to rest on.
Keep in mind, at 2.6c the market cap will still be significantly higher than it was last time AGY was at 2.6c, and all they have to show for it is confirmation that their 500TPA plant didn't work and another abandoned plant which doesn't work. Not to mention destruction of any shred of credibility.
All the chart serves as now is a show of support levels to be tested.
AGY Price at posting:
5.0¢ Sentiment: Sell Disclosure: Not Held
