Ann: Rincon Lithium Project - Progress Update, page-196

Credit where credit's due? You're acting like we raised at a premium or that the last cap raise was the desired option. It wasn't.

Firstly, it was conducted at an 18.7% discount to the last closing SP, so yeah I'm not surprised it only took a couple of hours to raise the capital.

And for those with short memories, the cap raise only happened because in the oversupplied marked at the time, JZ couldn't attract offtake or strategic funding groups, see:


Since that cap raise, JZ/Pablo have gone on to burn most of that capital, and have still failed to lock in an offtake or strategic partner during the greatest bull run that lithium has ever seen. And where are we now? You guessed it, back to oversupply. If no offtake or strategic groups were prepared to invest in product pre-payment arrangements for the 2 ktpa operation during the last oversupplied market, what makes you think they'll want to invest 10 x that amount of capital to fund the 10 ktpa operation in the current oversupplied market?

The only credit JZ gets for the last cap raise is that at least he has produced a template for the next one. Much like the Rincon plant updates, he can just copy/paste the last cap raise justification, apply the same discount and away we go.

There's been big red moves in the US lithium majors overnight, so I expect to see AGY revisit 12.5 cents today. Using prior form of an 18.7% discount for a cap raise, that would put the AGY share price at almost bang on 10 cents, if a cap raise were to go ahead with the share price at current levels.