Charting, page-4554

A retrace to fill a gap on a market-wide down day is not going to stop AGY's re-rate to fair MCap value.

The general consensus amongst AGY'ers and those who have been building positions since becoming aware of AGY and the deal is that this company is still significantly undervalued.

Based purely on Rincon Stage 2 figures Mcap is circa 170M-200M
(disregarding Stage 3 & China/Qinghai Lake JV).

Here are the facts:

14/8 > $63MCap lithium brine developer in Argentina partnered with world renowned Li brine expert Pablo Alluralde, Stage 1 brine evaporating since May 2017, Stage 2 pond development underway with initial 11Ha of ponds to be completed & filled late Oct/early Nov.

16-17/8 > Trading halt into binding equity/off-take deal ($95-96M is selling this short)


My numbers:
$16.9M for 20% equity (escrow for 18mths, QQ must hold 15% to maintain seat on BOD)
+ $9.5M 100% prepayment for 1st year off-take of 500T
+ $75M (1000Tpa for year 2-6 @ approx $15,000 p/t*)
$101,400,000 - total value of binding agreement.


* very conservative $15,000 AUD p/t for years 2 to 6 off-take - if you work off 1st year price (500T @ $19,000 AUD p/t) >Total Value of Binding Agreement- $121.4M


This is an unprecedented deal, not just in the lithium space but for any ASX listed minerals company…. All without giving up any of the Stage 3 off-take !!!

Oh I nearly forgot the steak knives….

23/8 > Stage 3 land for ponds & plant secured for nominal $$$

24/8 > 10% deposit for preliminary off-take received