In reality, it's literally a commodity product with a market price.
AGY was never going to have trouble selling any product they had at around the market rate. The may get a marginal premium or accept a marginal discount, but any time they wanted to sell, it was an option.
Sure, it's entirely likely whoever bought the 20T will want more. They may or may not want to buy it from AGY. They may prefer someone else, they may be willing to pay AGY a slight premium because AGY's suits their applications, but AGY is only able to sell as much as it produces, and production is the main concern for the company.
Let's not forget, just recently the mantra was that AGY was *choosing* not to sell because it wanted to hang on for better lithium prices. Now with the price at an all time low you are celebrating AGY managing to make a sale like that was always the goal and they finally found someone willing to buy it!
With AGY saying they were strategically not selling, then celebrating a sale when the market is at a multi year low, there's a story which doesn't add up.
Incidentally, for all those who have spent the last six months saying the lithium price has bounced, it fell again today, pushing that multi year low even lower.
This sale isn't bad news at all, but it's contradictory to the company narrative and pretending that the sale of a commodity product is some sort of special achievement is a bit desperate.
Likely to see sub 8c on Monday and that 7.5c gap should close next week. I'm tipping a new multi year low in response to the quarterly and next operations update.
AGY Price at posting:
8.4¢ Sentiment: Sell Disclosure: Not Held
