AFAIK first prize is a strategic partnership involving prepayment to fund the expansion build…?
Heck, one example of such a deal could even be something like this:
5-year offtake deal for 10-12ktpa..
10kt prepayment at a “discount” price of say $35k/t..
That would be circa $25k/t margin..
Providing circa $200M to build the expansion.
Buyer takes some risk but gets good pricing on first 10kt, and secures 5-year supply (+ option to extend).
AGY takes some risk due to potentially higher future pricing, but gets cash to fund expansion.
No dilution.
Win-win.
Such a buyer may just be waiting for steady-state to reduce risk… nothing stopping a conditional deal being agreed in the meantime though…
Of course, there are many potential outcomes/deal structures, but the point is that dilution isn’t necessary (or necessarily significant), considering the build is only circa 1-year of profit!!
I have full confidence that JZ is all over this and other options, and is genuinely trying to secure a deal that benefits LT shareholders for the longer term, as he should be. Sugar hits on hype or crap deals not required!
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