Financing Stage 3 is where Alex M expertise kick in, and my understanding is the land for stage 3 ponds and plant location have been mapped already.
I’m expecting an announcement in regards to this immediately after JORC confirmation and stage 1 product commences coming off the production line. So around Feb-Mar considering plant commissioning starts this month per 8 Nov announcement “Company is expecting the Stage 1 plant to commence test operations by year-end, with a scheduled plant capacity of up to 500 tonne“
In line with AGY fast track strategy I’m thinking stage 3 schedule -
JORC drilling/expand resource Q1/Q2 2018
Finance approval-agreement Q2 2018
Pond construction Q2/Q3 2018
Pond fill late Q3 2018
Peak evap season starts Sept-Oct onwards until March.
Plant onsite construction Q4 2018 to Q1 2019 duration 6mths
Stage 3 commercial production starts mid 2019 @15kT per year
Stage 4 phased in with a 6 months lag to S3 for additional 35kT per year (stage 4 is my opinion)
The concept of fast tracking is overlapping phases/activities. Look how stage 1 activity’s are overlapped within themselves. Similarly stage 1 with stage 2 also overlapped.
For those who aren’t familiar with our chairman AM here is some history..........
He has spent approximately 12 years providing advice and investment-banking services to mining, metals and industrial corporations. He joined Citigroup from UBS in early-2007 as Head of Metals & Mining Investment Banking and rapidly established Citi as a leading metals and mining investment banking business in Asia. He has been working with Asia-based clients since 2002. His career included 10 years as an investment banker as a metals and mining specialist with Citigroup, UBS and Deutsche Bank.
AGY Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
