hi all. i was at the AGM. following on from previous posters' notes, here are my takeaways:
- JZ had sent the final copy of the sales agreement with Mitsubishi to them weeks before the final day of the CR. He received M's confirmation of the agreement late-morning on the last day and as such announced it ASAP. JZ had pushed them but because of presumed due process for a big conglomerate like M, they took more time than expected. No conspiracy on timing, just unfortunate coincidence. Further, due to confidential agreement, the amount (tonnage) wasn't included in the original ANN re: 100T agreement - also, the amount wasn't important for him as it was more about communicating to the market that a formal relationship was locked in with M. "whether it was 50, 100 or 200T didn't matter to me". Let's please put this to bed for those that think AGY were trying to deceive the market.
- Based on comments made in this forum over the past few months, from what JZ mentioned, there are more parties in discussions with the company than we think. Numerous for OT's and numerous for strategic purposes, coming from Japan, Korea, China, Europe and South America. Mitsubishi is the preferred, but JZ will do what is ultimately best for the company and its shareholders.
- We have apparently received offers/proposals already from some but are not on terms that the company is after. The takeaway from this is that we have global interest already. He sighted an example where a company (the name escapes my memory) acquired a lithium brine project but didn't have expertise in the area so approached AGY for some insights. I can't remember the exact words he used so don't quote me on this. Long story short, our chemical process is 2nd to none who are either in the same space or are building towards it. The market will ultimately wake up to realise how hard it is to do what AGY is doing. Some disregard AGY as they don't understand the fast track strategy or think it's not possible.
- JZ is very aware of competing companies trying to do what AGY are doing. He is not phased about what they are doing as they are all far off where we are at.
- Pablo is the key man, but he is currently training up his son, who has been involved from the beginning. Pablo's son-in-law has also joined the team and Pablo is aiming to leave a legacy for his family/children. Both son and son-in-law are industrial engineers. Pablo has said that he wants to be part of this project until AT LEAST he starts receiving dividends. JZ also mentioned Pablo wanting to continue being part of this project for the next 20 or so years (I'm 99.99% sure this was what was said). Although much of what Pablo knows is in his head (knowledge), there are formalised documents and plans for the works on their systems/laptops, keyman insurance and Pablo's family are learning the trade. SUCCESSION PLANNING IS VERY MUCH IN PLACE.
- Acknowledged SP deterioration. Started off with holder(s) who owned many shares selling late last year (it sounded like he knew who they were). Then an insto who bought in early this year who was going to hold for the mid-term had a change in its overall policy and sold off many of its positions across the board. We are very much a retail stock at this point in time. Some funds he has spoken to aren't even looking at lithium companies period.
- Stage 2 is becoming more of the focus strategy. Required CAPEX is lower than we may expect, but will not reveal this to the market yet due to strategic purposes. This is currently based off internal calculations and is yet to be verified independently.
- If we don't use part of our $9m cash for Stage 2 construction, it would be enough cash to last for years.
- Funding deal will consistent of debt, equity and prepayment. Wants to minimise dilution but will ultimately consider what is best for the company. JZ stated he doesn't want to do what is right just for the short-term, but what will best for the company for the life of the mine. (I think this was a reference to some short-termers who want things to happen NOW NOW NOW)
- JZ referenced "comments", "theories" and "social media". For me, this suggested he is aware of things that are claimed on HC and twitter. Stressed and re-iterated that everything the company has said they would do, they have. This cannot be stressed enough IMO.
- Alluded that they are looking to a Stage 2 OT soon. IMO it is unlikely that there will be much more on the Stage 1 front aside from variation to M's 100T arrangement. Stage 1 pilot plant is more for experimental, proof of product and other testing purposes, not for commercial production.
- Some OT partners are only interested in larger output agreements as it aligns with their own business strategy from a supply chain perspective. JZ noted that one of the interested Korean parties wants to be sourcing 150,000T in the next 4-5 years. Keep in mind this is one group only. JZ wanted to highlight the demand is coming. Oversupply fears are caused to due oversupply of poor quality product, and bottle-necking of spodumene lithium where sufficient amounts cannot be processed into LCE.
- JZ highlighted, all facts, lithium industry insiders and news coming out of the industry confirms that the lithium sentiment will return. won't be the same spike we had 2017 to early 2018, but it will be more sustained.
- Change in Argentina presidency may cause some issues (was more caveating that nothing is certain), but the federal government has no ruling on mining rights and licenses that are governed by the relevant provinces (Salta). Potential OT and/or strategic partners are unlikely to be deterred by the federal election as many car manufacturers, cathode producers etc (the expected area the potential partners operate in) have offices in Argentina and have already operated whilst both current presidential candidates have been in office.
- JZ appeared confident as ever. Was nice to him, alex and the rest of the board had a few laughs together before the AGM which was good to see as opposed to if they looked stressed or worried. JZ made a note towards the end of the AGM that between the board of directors + pablo, the company have shareholders that are committed to this project long term.
Sorry if I've missed anything but this is what I recall based on my notes and memory. I would like to disclaim that this is my understanding of what was said. If anyone who also attended disagrees with any of my points above, please correct me. Overall, nothing really new, but it was nice to hear some things that I guess you could say 'fill in the gaps', and to also hear some things that have been mentioned in these forums straight from the horse's mouth.
IMO, it may be a longer slog than most here expected, but we are good hands and the future is looking very bright
GLTA AIMO. Hopefully some more green days and nice slow build back to the 10c+ in the next month.
