They sure did, and that's exactly the point. Thacker Pass is projected to require CAPEX of US$2.93 billion. Financing has been secured from various channels, comprising: US$650 million from GM in exchange for exclusive offtake rights for the initial 15 years, a US$2.26 billion loan from the US Department of Energy (as previously mentioned by you), and the cap raise this week (US$275m), totalling US$3.185 billion. So even with US$2.91b of external funding already sorted (which is over 95% of projected CAPEX), LAC still had to dilute their existing shareholders by 25%, and at a 25% discount to boot.
Now, returning to my original (but connected) point. It's highly improbable for a strategic partner to invest funds equivalent to 2-3 times the market cap of a company, which is the likely requirement for AGY. The US Government isn't inclined to extend such a loan to AGY; the loan for Thacker Pass was earmarked for a strategic asset. Similarly, the Argentinian Government isn't poised to provide funding (because they're broke), nor is the Australian government solely because AGY is an Australian company. That really only leaves a pre-paid offtake, which has never occurred at the scale required by AGY (240% of market cap), handing over part ownership to someone else (which is just shareholder dilution in disguise) or non-government debt (which again is unlikely to cover 240% of market cap).
The most viable option entails leveraging a blend of financing sources, akin to what LAC did, including a cap raise. In the case of AGY I'm anticipating substantial dilution and a significant discount due to the current state of the lithium market.
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They sure did, and that's exactly the point. Thacker Pass is...
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3.8¢ |
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Mkt cap ! $55.32M |
Open | High | Low | Value | Volume |
3.8¢ | 3.9¢ | 3.7¢ | $91.30K | 2.395M |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 24999 | 3.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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3.9¢ | 6117 | 2 |
View Market Depth
No. | Vol. | Price($) |
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1 | 24999 | 0.038 |
2 | 701783 | 0.037 |
5 | 638107 | 0.036 |
26 | 2803406 | 0.035 |
9 | 1181154 | 0.034 |
Price($) | Vol. | No. |
---|---|---|
0.039 | 6117 | 2 |
0.040 | 1428372 | 5 |
0.041 | 873730 | 5 |
0.042 | 768600 | 7 |
0.043 | 274146 | 2 |
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