To address/defend my comments on AGY,
I again confirm that I believe AGY will likely enter production and am not down talking the company. I only intended to correct some of the words said that over-represented AGY. Most obvious being AGY will be the only Aussie lithium company to enter production.
However, by 'production' I do not mean the wee 100-150 tonnes planned for stage 1 in March quarter '18. I am referring to the stage 3 targets. I assume that it'll take around 1 year after stage 1 completion, even if stage 2 is fast tracked; I think this is a fair timeframe. This is why I 'guess' 2019 for proper production, not just test works. AGY still haven't got a JORC compliant resource out after all, whereas companies like TAW, PLS, AJM, GXY, ORE, RIM, KDR all do. By RIM i am referring to reed industrial minerals (the Mt Marion holdings company).
In addition, it is fact that final construction cost for stage 3 (and any future builds) will be at least 100mil USD if they're looking at 10kt p.a or more LCE. This is also a decently conservative estimate (this is an opinion). I reference Lithium Americas who estimates a 400mil USD bill (pre-tax) for their Cauchari-Olaroz JV with SQM stage 1 capital costs. This is for 25kt (later 50kt in stage 2) LCE per annum. Yes, 3 million will be enough for a small tub worth but I assume Jerko and co. has their sights on bigger things. Plus you have Mina Teresa works. In light of this, it would be foolish to think 3mil will be enough and that debt or equity funding will not be required at all in the future. This is why I made the comment as I did. However, if you can name one producing brine mine, anywhere in the world, that only used 3M USD to get up and running to >10kt LCE p.a, I will gladly admit my mistake.
As for PA's processing method, it is not my opinion. It took the words out of a Patterson Research Report about AGY a little while back. They said there was risk regarding the processing method so I moved their words onto HC.
Also, which producing mines do you refer to that are economical with 1:40 Li to Mg? I have no problems being corrected but I will need a mine name, reserves and some basic chemistry to better understand. Please let me know.
Yes, Sal de Vida will require 'huge' funding, around 300mil USD, which is actually very reasonable compared to other similar projects. You are correct in saying this is a good bit of dosh however. Yet, management have stipulated many times that it can be partially equity funded. They are not a micro cap company that needs to update investors on every minor details. Once should be enough while they work on the rest behind closed doors. Blackrock seems to think so anyways to be willing to buy 6.5% of the company on-market. A 20% JV, plus cash flows from Mt Cattlin will be enough to fund it; a possible path that has been mentioned not only at AGMs but in announcements as well. It is definitely an exciting project that will deliver mid 200 million USD revenue a year at full scale production. Also, they're planning to advance James Bay alongside. Just for disclosure sake, I do hold GXY
Also, I am not making it a competition, just defending facts. I am hardly advertising nor advocating any company. I just like to post what I find in my research and if I disagree with any post, I will say so. It is always useful observing different perspectives after all.
Feedback is welcome.
