"There's probably about $100m (at most) of sunk capital there,...

"There's probably about $100m (at most) of sunk capital there, plus whatever the resource itself is worth (probably no more than $30m). That's around A$130m of asset value for AGY at Rincon (without factoring depreciation)"

"There's probably about $100m (at most) of sunk capital" ...If the AGY team can't operate the processing plant(s) to produce Lithium Carbonate at commercially viable levels, pretty sure the "about $100m of sunk capital" will be just that, sunk capital. Willing to concede that whatever funds expended ($10m, $100m, $350m) in attempting to make the plant(s) commercially operational are lost if unsuccessful. Expended funds / sunk capital cannot be classified as an asset. When valuations of assets are being calculated, "sunk capital" is not part of the formula to the best of my knowledge. The assessment there's "around A$130m of asset value for AGY at Rincon ($100m of sunk capital & whatever the resource itself is worth <$30m)" is flawed. The $100m of sunk / expended capital, does not constitute asset value. By the reckoning that AGY's asset value at Rincon consists of 'sunk capital' and 'the resource itself', striking the sunk capital, subsequently the asset valuation for AGY at Rincon can only be surmised as being less than $30m.

Surprisingly nobody here on HC challenged the valuation of less than <$30m for AGY's resource at Rincon. Thought i'd been prudent staying on the sidelines watching the sp rise from 30c (July22) to 80c (Jan23) and dropping all the way back to 9c (Jan24) and waiting until, from my perspective, AGY management proved up an asset of value. The anns of an "upgraded (MRE) of 686,875 tonnes of lithium carbonate" and "approval to develop and produce up to 12,000tpa of lithium carbonate product" facilitating brine being pumped for a period of up to 42 years to produce 12,000tpa of lithium carbonate was evidence enough AGY had an asset of some value. But, what is the value of this resource?

My valuation of the AGY Rincon project is AU$1Bil, and I'm aware the 13c sp at present doesn't help my case. I do acknowledge the possibility that AGY management and team may not be able to achieve commercial production of Lithium carbonate and subsequently an offtake agreement of substantial value, but that doesn't confirm the absence of asset value here. Surely, in this wide world there are persons or entities with the know how to turn this brine stuff that AGY has into 12,000tpa of lithium carbonate. The basis of my reasoning is if AGY management put their Rincon Lithium project up for sale some parties (entities) that possessed or could acquire the relevant expertise would recognise and place substantial value on the asset(s) being offered for sale. Cannot understand the mind-set expressed by many here that there is no value or the complete worth of AGY is contingent on production and offtake success. #real assets=real options

There's value in the resource (MRE) and EIA approvals. Reckon its much more than <$30m