I keep coming back to the AGM from April where it was stated that the drop in lithium price has not changed the terms of the agreement. This means that whoever the strategic partner is, they don't strictly adhere to the Chinese spot price. Good news for us at this point in time. So yes, your guesses could be right.
I agree with your sentiment. AGY are one of the first movers in a new industry. I think they'll get into production "imminently", and take advantage of high prices. Because of that, I'm willing to get my hands cut catching the knife as the risk to reward is in my favour at these prices. Chinese spot fluctuations are playing a big role in the downtrend. A strategic partner with stable contract pricing may nullify future volatility to the down side caused by spot pricing and I believe this should be around the corner once the company announces that a substantial amount has been produced and that ramping to nameplate is underway.
AGY Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
