Sunday thoughts…
AGY is so rare that there have been no new brine chemical producers in years!
There are many companies out there with the best and biggest brine resources but brine is not the same as iron ore, gold, nickel, cooper etc.you can’t just mine it, ship it and sell it!
You need to be able to convert it through a chemical process into BG LCE. That is obviously very difficult as no one has been able to at pilot plant scale in recent years apart from AGY.
None of these other companies have produced anything above a test tube which is easy to do. They were supposed to have pilot plants up and running by now but they don’t. Why is that?
They don’t have the knowhow! Even with DLE, as far as I know it’s still unproven at scale. If I am wrong can someone with more knowledge please show me where The DLE process is producing BG LCE at scale right now.
For people questioning Pablo when he has already produced tonnes and a batter spec product for an end customer, that is just whack!
He’s done what all these companies are ‘claiming’ they will do but still haven’t the last 3 yrs! Only speaking FACTs here.
AGY is the only new company that can produce ‘BAG to BATTERY’, another fact.
The only thing holding the AGY SP back right now is a bigger resource like our peers. But we know we have enough for 10 yrs min and I am confident our resource will be increased.
As many of us have said, no point having a big resource if you can’t produce a battery grade spec product for a end customer. Unfortunately most ASX investors value big resource over chemical process right now. When they realise this is NOT MINING but it’s chemical production our SP will be the only big mover.
My Prediction:
As we complete more plant milestones leading up to commencement of 2000t production by July ‘21, get approval for extra 10000t, permits, offtakes and funding, all these other companies will still be distracting the market with resource upgrades, drilling new tenements, buying new projects, using DLE to make test tubes etc.
During this time the penny will drop on investors who realise most of those other companies will NEVER produce BG LCE without the knowhow, take overs being their best options. Maybe outsourcing with DLE will work at scale in yrs to come, but the lithium boom will be way in motion. What will these 3rd party companies charge to use ‘their’ process? It wont be cheap. I suppose they could use it to produce industrial grade!
I see those investors selling out of these over hyped big resource companies IF their projects don’t progress from Explorers. We all know most won’t get off the ground.
AGY will be the beneficiary as we have started to see.
Those people that keep talking about DFS as there is nothing left to pick at. Funny.
AGY has basically done better than a DFS producing 20 or 40 tonnes of product! Even though costs become cheaper at larger scale they now have REAL costs unlike a DFS which aren't that accurate and guess work. In saying this I believe a DFS can/will still be completed as a formality. With REAL numbers unlike these other companies guessing.
Whether costs are 4k, 5k or even 6k, lithium prices will keep going up in coming yrs with the big supply deficit coming.
As AGY will be making $ from selling product (which NO other new company will be doing) the option to take over a project with a ‘big resource low impurities’ becomes a reality.
Imagine Pablo and team working on one of these salars?? If he could produce BG LCE at Rincon where everyone said he couldn’t it would be real easy at another salar.
The stress on some of these holders from other companies with zero progress is real!
It’s not too late to jump on the newest chemical producer, massive upside here.
Longest post ever, sorry.
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