@stevo004That's the goal, mate, but we're all familiar with how...

@stevo004

That's the goal, mate, but we're all familiar with how JZ's "targets" tend to pan out. As I mentioned earlier, no lithium developer or producer has ever achieved a deal remotely similar. If such deals were feasible, why is LAAC's Pastos Grandes project nearly inactive, and the most attractive funding deal they could secure was for a 15% project stake, valued at approximately 8% of LAAC's market cap?

The stark reality is that the type of deals JZ has dangled in front of shareholders simply aren't realistic. A pre-paid offtake valued at twice a company's market cap is nothing short of fantasy, which explains why JZ hasn't succeeded in securing such a deal. It's likely why he keeps shifting the goalposts (remember how initially the deal was supposed to align with the 10 ktpa EIA approval, but once that milestone was about to be reached, JZ changed course to aim for a deal upon completion of engineering works and the EPCM contractor award).

I think a much more realistic funding scenario is one akin to that in Cannacord's 2022 Research Report (posted on the AGY website) which suggests a debt/equity split of 45% equity and 55% debt. 45% equity funding equates to A$171m, and at the current share price, that would require AGY to issue an additional 1.425b shares, or in other words, double the current SOI.

So that scenario would massively dilute shareholders and double the SOI, effectively halving ownership value, and it would still require a loan (via prepaid offtake or otherwise) worth A$209m.