AGY 8.00% 13.5¢ argosy minerals limited

I think people need to understand this from the view of the...

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    I think people need to understand this from the view of the President and Argentina as well. (This is all completely in my opinion only - DYOR)

    Its hard for Government's to have a huge sway over very large and established company's, such as FMC in Argentina, that have plenty of money and have their own interests at heart, rather than the interests of the region and Country they operate in. Just have a look at the difficulties that the Chilean Government has had with SQM in the past: (and I'm sure they're having problems coming to resolutions with SQM and Albemarle over the current water issues)

    https://investingnews.com/daily/res...m-investing/sqm-santiago-chile-atacama-corfo/

    "Chilean investment agency Corfo is seeking to end an arbitration process over fertilizer and lithium leases, and is seeking to terminate contracts. Corfo claims that SQM has underpaid contracts and sold products at below-market prices." (FYI Corfo is a Chilean governmental organization that was founded by President Pedro Aguirre Cerda, to promote economic growth in Chile.

    In short, large company's seems to only ever be in it for their own benefit and its VERY hard to put them in their place once they grow over a certain size. Money that should be going towards paying tax in that Country often just goes 'missing' somewhere overseas. This is well known and happens in every Country, but it is more damaging to those country's that are still developing and emerging onto the world stage, such as Argentina (and Chile). Every bit of money matters for a country in the midst of an economic downfall.

    My view is that the President and Mining Secretary aren't silly (obviously). They understand that if they want to benefit as much as possible from the inevitable lithium boom, they need to get in on the ground floor and establish strong relationships with the emerging company's, such as Argosy Minerals, as early as possible. This enhances the possibilities of lengthy and mutually-beneficial ties between Company and Country; which, is especially important when considering international companies that are looking to export; and when the economy isn't looking so good - as is the case currently. These strong relationships are basically to invest in their own future. They just want mutual prosperity.

    The Government will want to be clear on where they stand with Argosy, and how the the Country can also benefit from a rapid and large expansion from the Company. I think this is where the statement - "government support further opens up additional options to consider accelerating the scale-up development timeframe of the project" comes in. It is important for Macri and his Government to show results as fast as possible. His job could well be on the line if the public loses faith in his leadership. Afterall, their next election is in October next year... and I can assure you he will want the economy to be showing improvement and potential before then. As someone has already mentioned in an earlier post, Macri if AGY becomes successful, this is just good for the country, but also looks GREAT for Macri personally.

    The big issue is... can you trust these company's to do the right thing by the Country? Especially when they continue to grow and become less reliant on the favour of the Government.

    This is where Pablo is important - he is completely and utterly tied to Argentina and his presence and importance to AGY ensures that they will also have the Country's best interests at heart. Afterall, he left FMC so that he could ensure the prosperity of his family in Argentina for the long-term by helping to build a company from the ground-up. He isn't going anywhere and you can be sure that he will be hurting to see Argentina in such an economic struggle. The involvement of his son is also crucial to ensure long-term certainty.

    In short; the Government understands they have a good thing on their hands with the lithium boom and the EV's revolution. They just want to benefit as much as they can from this and don't want money leaking from their country - hence the implementation of higher export taxes recently. I'm just happy to see Argosy is well-placed to benefit from this. How this benefit will come about? I'm not sure, but I'm sure excited to find out!

    Again, this is all imo and DYOR!! (as who knows what is really happening behind the scenes - we will just need to wait and see)

    Very excited to hear news on the imminent Off-take and PEA!!
    Last edited by winesy108: 19/09/18
 
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