Ann: Rincon Lithium Project - Progress Update, page-34

Gday MD,
Imo there aren’t enough Li brine precedents to conclude what “usually happens” with deals and funding etc.
Imo it comes down to a few things, including the balance of confidence and risk for the potential partner.
Confidence that AGY can ultimately deliver quality product, alongside risk associated with provision of the funding as well as securing supply.
How much these factors are managed through conditions precedent in the contracts is yet to be seen, but imo there are many possibilities. Prepayment is certainly a tricky one.
I think the ducks will line up rather quickly once the plant is fully operational, as that should provide full confidence in the ability to produce “continuously”, marking a key milestone and de-risking event for a partner.

Only time will tell, and in the meantime we wait.

I’m still hoping for a Korean big dog to come onboard, as that would likely accelerate a subsequent expansion upon completion of the first, as imo they will want all the product they can get at that point in time.

Ps. I hear you regarding Sal de vida, and it is amazing to see how that dragged out considering the quality of that resource! Was it the case that the potential partners there were concerned that a green GXY team might struggle to get a commercial plant running? Probably. I think it confirms the complexity of these operations, the lack of global expertise, and the difficulty of bringing a new project into operation (especially for those without in house expertise who plan to simply “find it” when it comes time). Macro timing/issues etc surely play a large part too.

…just food for thought, imo.


GL
GCar