Interesting idea but thats giving way too much away. Bear in...

Interesting idea but thats giving way too much away. Bear in mind there are production costs AGY has to pay. Roughly $30-35m for first 2 years. That leaves $120m out of the $150m. I think they'll need more than $120m but keeping the numbers the same....

A debt package with very unfavourable terms to AGY would work out better. Example:

$120m loan with 20% interest rate. Say only interest is paid back over 2 years and then a lump sum principle payment. Would cost $168m to AGY.

In that time say AGY sells 4,000t at the $70k per tonne. Net profit of $250m after $30m production costs.

$82m in front for the JV after 2 years with debt cleared away.


Using more realistic pricing of $50k/t (bear in mind $40k/t is latest AKE average for 45% BG).
That would be net $170m which is still $2m in the clear.


This is with an obsurd 20% interest rate. I'm sure there's companies that would be lining up to take a risk with $120m for 2 years to net $48m alongside a derisked project in a hot lithium market.

I'm sure they are working through all different scenarios but I'm expecting a mix of debt/equity but would be pleasantly surprised if they could work out a favourable funding package with no further dilution.