Thanks for this post Marketing Man. Its a good reminder of the fundamentals of AGY for days like today when the price just cruises along .
AGY is seen in such a favourable light out of the lithium companies that one could be forgiven in thinking it was written by AGY ! .... and it deserves a summary :
1. Lithium the new gold rush (we know)
2. Lithium less than 5% of batteries so much higher lithium prices can be absorbed (and batteries are just a component of a cars total price)
3. Hard rock lithium can take 3 to 20 years from exploration to production...(a lot of Hard Rock speculative companies could miss the boat if they dont have a lot of cash to pay for mining and approvals.)
4. Lithium brine costs much less (than hard rock) , is faster and delivers up to 99.9% purity - much higher purity than with hard rock. (costs less, is faster...and better...hello)
5. It is estimated 50% of lithium brine is found in Argentina, Chille and Bolivia. but Argentina president Macri is a favourable government and "open for business" out of the three countries.(safe country for AGY and president sees potenial too)
6. Electric cars are rapidly getting cheaper and range improving (when Electric Vs are cheaper to buy, look better and cost MUCH less to run and no service costs...petrol cars are finished fast....any decision maker must choose EV over petrol and this creates a futher feedback loop to more cars, need more lithium etc)
7. production of ...lithium...will increase 100 fold. (so first to market will reap massive rewards. AGY in production NOW and sell first batch in March 2018) 8. then AGY and ORE are reported as the only two lithium brine companies (yes)
9. then the excellent hint ....Consequently, there is a wide spread of share prices for emerging lithium stocks. Some of the lower priced miners (down around the 20 cents to 30 cents range) who don't have off-take agreements - may be the highest priced stocks in 12 months to 2 years.(AGY fits this bill)
10. some speculate lithium will double to 50k per tonne next year!
11. some companies lack expertise to extract lithium from brine...(not AGY we have PA proven processing nearby in Argentina ...proven)
Ok i dont think i missed anything except to say AGY is a pedigree.
DYOR .....but do it fast as AGY is looking unbelievably good (sorry for the "ramping" but well its all true imo)!
AGY Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
