General Comments & Banter, page-11753

By uncertainty, you mean...

What we do know...

• AGY has developed a confirmed capability to manufacture high grade product and is now looking for a customer.
• AGY is working on an OT agreement - at least for Stage 1 - this is a certainty.
• It might be bundled with funding for Stage 3
• Most likely a large Japanese corporation with a name we have heard before (Sumitomo, Panasonic, Mitsubishi etc. ) will be the Stage 1 OT partner "on-going discussions with a Japanese conglomerate."
• They are also in discussions with Korean parties "a consortium of South Korean groups interested in commercial scale long-term product off-take and an accompanying capex funding solution."
• In an email to me, Jerko confirmed that an in-principal agreement had been reached with a potential Japanese party and they were now exchanging information as part of a due-diligence process pursuant to finalising an agreement.
• AGY is running low on cash, not dangerously low but certainly to the extent where they might be chomping through the cookies at a slower rate.

What we don't know

• No confirmation if this agreement was binding or non-binding. A non-binding agreement is worth slightly more than a nice warm feeling.
• We don't know if the in-principal agreement is just for Stage 1 or if it includes Stage 3 funding.
• We don't know when the next announcement will drop and if it will be just Stage 1 OT, or it will include Stage 3 funding, nor what form the funding will take (debt/equity/forward payments or a blend).

Discussion

• I would have thought if a binding agreement had been signed subject to due diligence then the market would need to be informed. Therefore I am assuming it's of the nice warm feeling variety.
• Funding is definitely becoming an issue as flagged in the last update " The Company is also cognisant of immediate funding requirements for the ongoing day-to -day operations..."
• Negotiations are at a delicate stage, the potential partner will be leveraging that AGY will need to sign-up soon to improve it's cash position, on the other hand it would seem that although lithium buyers aren't desperate yet, the way the market is moving things might start getting a bit uncomfortable soon. In addition, the Japs must be aware that AGY is speaking to others (Koreans at the very least).
• At the current share price of 13.5 cents, the well advanced progress of the company, and the prospect of a meaty announcement soon, this has to be a great investment opportunity both for short term traders and those who like to take a long position.
  

Conclusion
A deal will be done before March or, is this just wishful thinking?

IMO
DYOR