MMNo one is winning at present neither bulls nor bears.Semantics...

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07/02/19

12:53

Post #: 37362537
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Originally posted by MarketingMan: ↑

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

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MM
No one is winning at present neither bulls nor bears.
Semantics aside.. uncertainty, indecision etc is showing up as a tight range while we wait.
My post had a more technical slant which I should have noted.
I stand corrected.
IMO DYOR
AGY Price at posting: 13.5¢ Sentiment: None Disclosure: Not Held
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