Even with some soft numbers , it amounts to big dollar for a start up like AGY
even if you allow for CIF North Asia spot sell price of USD 60,000 P/T then deduct costs ie
Production USD 8,000 P/T
Shipping USD 1,500 P/T
minus 22.5% Puna USD 13500 P/T
Taxes etc 25% USD 15000 P/T
AGY profit USD 22,000 P/T x 4000 = USD 88,000,000 PA = AUD 125,000,000 P/A ..... So should warrant a MC of around 800mill to 1B at least !
I think Lithium prices will remain around these levels until we get to 12,000 TPA , and by then we are at 90% ownership, lower production costs, so even if sell drops by 50% ( lets be pessimistic ) , ie USD 30,000 pt.. stlll looking at around AUD 250,000,000 profit PA. If market cap is not 2-2.5B by then , I would be surprised.
Funding and offtakes simply waiting on expansion permits and proof of production.... increased resource size should come through within next few months too. Lets not forget that the only reason that nothing has been signed up as yet is AGY have played hardball and will not roll over on their terms . They have no debt, money in bank and will soon be generating cash profits. So they have the balance of power at present.
Once permits come through and they produce what they have produced from pilot plant than the last remaining hurdles for funding are removed,
I mean no one is going to fund expansion now without permits , on the terms that AGY want, ie prepayment with no dilution of company..
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