It's a bit early for a victory lap
@GCar. While the December quarter's cash expenditure is commendably low, how sustainable is it? AGY is targeting the completion of a DFS this year, which doesn’t come cheap. With expenditure this low, it’s clear they’re either in the very early stages of the process or possibly deferring costs and payments related to the DFS until upcoming quarters. Either way, I don't think we're seeing those costs reflected in the current quarterly report.
For context, some of the more notable lithium brine projects have had DFS costs ranging from US$10–25 million (A$16–40 million). External services like Lycopodium and Saxum will need to be paid eventually. Just because AGY managed to suppress costs for one quarter, doesn’t necessarily mean they can continue this trend in the quarters ahead.
DFS studies are typically significant multi-million-dollar expenses, and AGY clearly hasn't incurred these costs yet; however they are committed to them. To cover those costs, they’ll need to take steps to generate capital at some point.
(20min delay)