Is the average price or the brief extreme highs and lows more relevant to a producer?
How about to a company which just dreams of being a producer?
We may see spikes again (though very doubtful anything like 80k), but why would that matter?
By its own calculations, AGY will be a narrow margin producer if it succeeds, assuming that average price is anywhere near the mark.
All this talk of government assistance packages etc makes it likely supply is going to increase. Unless we're way beyond kidding ourselves we know AGY won't get one - Australia obviously won't be giving them money to operate in Argentina and Argentina couldn't do it if they wanted to. It's not like $5-10M would do anything and even $50-100M would only be a fraction of what they need. It's not happening on the back of government assistance packages.
Lower cost producers (which actually can produce) are going to dominate the market. AGY is going to have a tough enough time raising a few million dollars to keep the office lights on, fill the pig troughs and keep those exciting announcements coming, let alone convincing someone to give them a few hundred million dollars to make another attempt at being a narrow margin producer.
It's funny that the holders here would prefer to see the bears correctly calling the situation as their enemy rather than taking a look at the company or considering their own investment decisions.
AGY Price at posting:
2.3¢ Sentiment: Sell Disclosure: Not Held
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