If pricing wasn’t so depressed, and there was confidence that the 2ktpa plant could operate profitably, I expect that we would have continued to push ahead with whatever rectification works are required.
Yes, it was on us that the plant didn’t commission smoothly and we encountered those filtration issues.
Meanwhile; pricing remained sh!t.
And here we are.
Not ideal.
But not over, not by a long shot, imo.
If we spend a bunch of money now getting the plant going properly; only to be selling at a loss (potentially) at that time, do you think the armchair experts would then be calling the company reckless for walking into unviable production and forcing very limited options due to a low bank balance? Of course they would.
imo it wouldn’t have been an easy decision at all, and they must have examined the options very closely and seriously before taking that drastic action.
“The Company determined the rectification works that were being conducted to advance the ramp-up phase of continuous operations and progressing production operations may not achieve economic viability in the short term, and whilst lithium markets remain subdued, elected to preserve capital and not invest such funds into the operation.”
We don’t have a buffer like some bigger companies do, and we are left to roll with the punches and challenges as they arise.
Harsh reality. Now to work through towards the next stage.
DYOR on the investment opportunity, whilst the pirates distract with ridicule and nonsense. GL
AGY Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
