I wouldn't dwell on his remarks too much. It seems he's not even aware of the Livent and Allkem merger forming Arcadium. Even when considering his comparison of AGY and Livent's 2022 results in isolation, he's overlooked numerous crucial factors, rendering the comparison meaningless.
He highlights Livent's $5 billion market cap and 17 kt lithium carbonate production in 2022, then suggests AGY is undervalued because they "aspire" for 12 ktpa production. However, he conveniently ignores that Livent also produced 21.5 kt lithium hydroxide, 2.5 kt butyllithium, 88 t high purity lithium metal, and almost 5 kt lithium chloride.
He also ignores that Livent's Hombre Muerto Resource is 2.22 MT, more than triple AGY's resource size. Livent also applied a cut-off grade of 218 mg/L to their resource, while AGY didn't apply any cut-off grade to their Rincon resource. Livent's average grade was over double that of AGY's at >740 mg/L vs 329 mg/L. Moreover, AGY hasn't been able to sustain 24-hour continuous operations, whereas Livent did so for over 24 years pre-merger.
Livent also had a 50% interest in Nemaska, including the Whabouchi Mine and concentrator, plus multiple lithium hydroxide convertors under construction in Canada, China and the USA. They were also in the late stages of a 20 ktpa expansion, with plans for a subsequent 30 ktpa expansion, bringing their total carbonate capacity to 70 ktpa upon completion.
These comparisons are remarkably lacking in insight and sector research, but unfortunately, it's typical of someone who previously attempted to pass off SQM's product as belonging to AGY by photo-shopping AGY's logo onto their bags. And when confronted, he just changed his name from
@koi-7 to
@givemethecash.
The ramping has no limits.........
