Hey mate, I'm in agreement with some of your points, but I find others to be overly optimistic. It's totally fine for us to have differing views. Here are a few remarks on your post:
1. It's crucial to distinguish between permission and ability. AGY may have permission to proceed with the 10 ktpa expansion, but they lack the ability to execute it without funding.
2. Despite Pastos Grandes having a projected market valuation of A$715 million, it only secured a 15% strategic investment. This underscores the current reality of funding within the lithium market. Financial institutions aren't offering loans or funding deals that significantly exceed the company's current market cap, which is what AGY requires to fund Stage 3.
3. While an increase in lithium prices could boost the share price, this holds true for most lithium companies. However, with the EIA approval in hand, JZ is now under pressure to secure strategic funding within the next 3-6 months, at a time of depressed lithium pricing. This urgency leads to a much higher level of dilution than would otherwise be necessary under more favourable market conditions.
AGY Price at posting:
14.3¢ Sentiment: None Disclosure: Not Held
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