While this holds true at the sector level, recent developments suggest that AGY may not be as closely tied to lithium prices as many believe, especially at the company level. The numerous missteps by management seem to be weighing on market confidence. Since open on Monday, most ASX-listed lithium stocks have gained 5-25%, whereas AGY has dropped 2.4%. For a company supposedly so linked to the lithium spot price, it's unusual that the broader market is reacting very positively to supply curtailments while AGY's share price has declined.
On a positive note, I anticipate AGY will execute another spot market sale within the next six weeks. JZ will likely need a favorable headline to offset the impact of the upcoming quarterly report, due by the end of October. He used a similar strategy last quarter, conducting a spot sale shortly before announcing care and maintenance. I expect the same shenanigans this time around, as selling the remaining lithium carbonate stock is pretty much JZ’s only remaining play until the cash reserves run out.
AGY Price at posting:
4.1¢ Sentiment: None Disclosure: Not Held
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