Just targeted by traders looking to take advantage of the TA.
An update on the engineering reports should be a catalyst for gullible and misinformed people to load back in while the big traders take advantage - hopefully close that gap near 8c. Or it might not even need that.
Remember, lithium prices need to recover by over 70% of current spot just to make their project viable. Considering global supply is expected to rise by 50% this year, which magnifies the current supply surplus, we're looking at multi-years (towards the end of this decade IMO) before a recovery anywhere close to that extent. High-cost projects, especially ones with pilot-scale capacity such as AGY, will struggle, no ifs or buts about it.
Using basic logic, this would mean funding any expansion would be close to impossible without another JV, TO or a monster strategic investment to the tune of $400m which simply won't happen.
If AGY manage to survive the next couple of years, only way forward that I can see is a combination of raising capital + strategic investment, both causing huge dilution. We have to remember though that nobody has ever wanted to fund AGY, got to ask why. So will having 10ktpa engineering plans plus a 2ktpa plant unable to work to spec be enough?
