We can prepare for the new PA announcement and what it means to the SP by doing some basic math.
Once it's announce we can figure out potential sales and profits and how that will reflect to the SP.
It's important to remember the word AGGRESSIVE has been used many times by AGY management in regards to getting to full scale lithium production.
This could be IT!
Their target is 100-150 tons of LCE for the test run.
Ok...that's a pilot plant to test PA's new Lithium minining process. Also, get all the bugs out.
So that 150 tons is based on 75 arces, which is a small amount.
So we wait for these new mining concessions. As I said I doubt there is any profit on the test run. Nor do I care.
So based on what I figured in my other post and I will say they are "rough" calculations...is the following.
75 acres gives you 150 tons of LCE
So...
750 acres gives you 1500 tons of LCE
1500 acres gives you 3000 tons of LCE
3000 acres gives you 6000 tons of LCE
6000 acres gives you 12000 tons of LCE
Prices for said TON is the question...BIG question. Everything and I mean EVERYTHING is about the grade.
Joe Lowry (Mr.Lithium) says ORE has a poor grade. Yet, thet are pulling prices in around $6,000-15,000. I have no idea where these prices are coming from and if they are even spot prices. I keep hearing that 99.9999% get's $15,000-20,000+ which is the price the press floats around.
So let's take a conservative avg. $8,000 a ton (which could be 2x if the grade is there)
Then PA scores 3000 arces. (We currently have 4,500 arces with AGY's Mina Teresa and Pocitos Projects)
PA take 12 months to test everything and nails his new process...then starts on his new acres.
So AGY could have in 18-24 months $24M in LCE. You accert that a 50% margin is possible...that's 12M in profits. All of the above numbers are very conservative.
AGY MC is 20M now.
This doesn't include what happens at Mina Teresa and Pocitos Projects which could be bigger or
or Wee Macgregor and the numbers we've talked about.
Yet, AGY trades at 2.8 cents??
When ppl. see AGY trading at 30-40 cents in 12-24 months and ask themselves...I only wish I could have figured it out.
Well if you can read and have grade 3 math...you can figure it out now.
All the above is IMO
DYOR (I could be totally wrong!)
AGY Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
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