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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Last
12.0¢ |
Change
-0.005(4.00%) |
Mkt cap ! $168.5M |
Open | High | Low | Value | Volume |
12.5¢ | 13.0¢ | 12.0¢ | $235.2K | 1.876M |
Buyers (Bids)
No. | Vol. | Price($) |
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29 | 956840 | 12.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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12.5¢ | 19944 | 2 |
View Market Depth
No. | Vol. | Price($) |
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29 | 956840 | 0.120 |
12 | 539478 | 0.115 |
12 | 664049 | 0.110 |
9 | 1154619 | 0.105 |
19 | 1490206 | 0.100 |
Price($) | Vol. | No. |
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0.125 | 19944 | 2 |
0.130 | 509781 | 9 |
0.135 | 530128 | 14 |
0.140 | 807683 | 11 |
0.145 | 507650 | 9 |
Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
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Change
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Open | High | Low | Volume | ||
12.8¢ | 12.8¢ | 12.3¢ | 1090017 | ||
Last updated 16.00pm 03/05/2024 ? |
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