What do we really think is happening with this product qualification process? Do we think these companies don't know that we are a junior looking to build a commercial plant? Do we think that they don't know that we need $150m to be able to knock out 10ktpa? Of course they bloody well do!!!!!! So, why on earth are they testing our product? Perhaps because they realise they will need quality supply in the coming years and cannot necessarily rely on other sources...? Perhaps because it is of such high quality that it will give them less hassles when they produce their battery components...? Perhaps because they want some independence from CCP supply, that has unknown certainty going forward with growing tensions from all angles...? Perhaps they are interested in helping to get us to production in some way; either through an off-take agreement of some sort, some type of JV, some type of funding deal, there are many possibilities. The bottom line, IMO, is that they are looking for new sources of quality product, and if it is suitable for them, they have an interest in us going commercial. A big interest. Have a look around and tell me where all the premium chemicals are coming from. How much of those chemicals are spoken for already, btw...?
I think some of us forget that if someone is keen and wants say 2ktpa as a starter, and right of first refusal thereafter as we grow, then a prepayment deal of some sort for say 4,000 tonnes is enough to build the damn plant and produce those first 4,000 tonnes. As Stevo keeps reminding us, there are billions being thrown at EVs and batteries from all angles. If the product proves up to spec as they work through the qualification, why wouldn't someone throw in $50m to have certainty of 4kt supply from the end of 2022 and an option for all future material (or as much of it as they want)..? Kev et al seem to not realise that the qualification process has several steps and takes a significant portion of a year. We've even posted the steps and typical timeframes... but it's apparently easier to just claim it's a "lifestyle company" and a "facade" LOLOLOLOLOLOLOL. That's what happens when there's sour grapes and impatience all wrapped up together. Insult, attack, whine, complain. Sad.
Imo when the product proves up to spec and works in their battery components and is tested in cells, we will have significant force on our side to expedite funding and development, one way or another. Banks/funders tend to like it when you have a serious customer saying "we want your product asap". De-risking takes time and requires more milestones than some here like to recognise. Just wait til sentiment turns again and the scramble is on. It's only a matter of time now.
IMO DYOR
AGY Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
