General Comments & Banter, page-91

MM love your work and enthusiasm but above post is a bit off the mark:

Market Cap = Shares On Issue x Share Price
or
SP = Mcap / SOI

Market Cap essentially reflects what the market values a company at...

A higher Market Cap is what we are all hoping/wishing for as this will be reflected in a higher SP.

Shares on Issue can be a bit of a catch 22....

More shares on issue means more liquidity / bigger turnover of shares which usually attracts traders

On the flip side:

Less shares on issue usually means a tighter register so when interest in a company grows the more appreciation there will be in the SP

The good thing with AGY is that 50-60% of Shares on Issue sits with Mgt/extended family/friends & other long-term holders.

The topic of 'free-float' is probably for another time.

Anyway to give other a bit of a comparison here is the current shares on issue across various ASX Li plays... (does not include unlisted options etc)

AGY - 913m
AVZ - 1,798m
AJM - 1891m
GXY - 413m (consolidated 1:5 in May 2017)
KDR - 350m
LPD -2,880m
LPI - 210m
NMT - 543m
ORE - 254m
PLS - 1,615m
TAW - 504m



AGY are about middle of the road with regards to SOI but remember on development of Stage 3 they will have 90% ownership of Puna Mining Co JV / Rincon project.

ORE have a 66.5% share of the Olaroz project with Toyota (25%) and the local Jujuy Gov't entity JEMSE (8.5%).

LPI have 50% ownership of their Micarunga project but they and their local partner (who have the other 50%) will have to give up a further % of profits to Chilean Gov't (all but guaranteed - see GC's recent post re: talks falling over). IMO - the small number of shares on issue / lack of liquidity is why they probably haven't attracted the interest of traders and seen the same SP growth other Lithium plays have over the last 12mths.

For AGY - some further dilution to step up to Stage 3 is expected as the Capex requirement will be approximately $120-$160M depending on targeted nameplate.

IMO, Mgt will look to secure the majority of Stage 3 funding via a strategic partnership / off take agreement with the remainder via debt funding which will have a relatively short payback period given expected revenue.