Hi there,I have only scanned the document so can't comment in detail.
What I have seen fits with my expectations; good result.
And it's conservative (as any PEA should be).
It hasn't had the effect on the SP that I wanted, but that's understandable - it's a lack lustre day across the market, and when AGY didn't launch out of the gate strong, a lot of people (traders and disappointed others) waited a bit and thought "feck this, I am out of here." - so, not a true test of the quality of the PEA.
I think we will see a few days of bailing out and that will not be good for the share price, but it could be short lived.
From here...
- With the PEA released, a new crew of investors will buy-in who will look at this stock with fresh eyes.
- It's true that some instos/funds/sophs will take a few days to digest the PEA and benchmark it against what else is offering in the Lithium space and make a decision about investing. They might say "good solid investment, but not a stunner" or, they might see it through fresh eyes and identify a future gem. No way of knowing. There is plenty in the PEA (+ other fundamentals) to entice shrewd investors if they are in the right frame of reference, conversely you can also find negatives. Sometimes it just depends on who clears-their-throat in the most impressive way around the table at the investment committee meeting. Can't rely on it.
- Morningstar will get around to re-rating AGY (currently sitting at 28.2 down from 35 cents a week ago) and that will be interesting. I would be estimating well over 40 cents.
- Many traders and retails will be thinking "well that's it for 3 weeks, based on past outcomes, probably will not see another announcement for a while." and will act accordingly (Jerko might drop an OT out of nowhere, and that's likely given that an OT partner could well have been waiting on the PEA to independently verify that AGY was worth risking partnering with).
Not much else to say. And even if I read the PEA word for word I am not sure I will find anything new that might be useful.
At this point in time, the price is based more on broad sentiment than AGY fundamentals.
What ever happens over the next few months is probably not so important.
With the PEA confirming the solid financials, there remain two important factors...
1. Global geopolitics and economics (mainly China/USA - but possibly the spotlight might swing back to N. Korea when they discover they didn't stop building Nukes), the Middle East has been quiet for while too - what are they up to?
2. Demand for Lithium - sheet will get real next year when big auto starts turning talk into action. Billyen's post about the emergence of a new car maker Rivian (RIT Electric Truck) is a dynamite announcement. This is a new Tesla like market disruptor. That's a serious piece of kit they've built aimed at checked shirted American heartland, with serious marketing, with serious backing. If that doesn't send shivers through the established big auto brands and have them calling crisis meetings - I will be very surprised. I was so impressed I immediately drafted a blog article https://www.jwpm.com.au/industrial-marketing-blog/electric-vehicle-revolution
Big Auto will be asking "how much can I have? When can you deliver" they won't be asking how much is it?
By circa March next year (provided other global events don't rain on our parade) Lithium will be HOT, HOT, HOT.
More waiting.
IMO
DYOR
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