Lithium explorer and developer Argosy Minerals [ASX:AGY] said it has ramped up operations at its flagship Rincon lithium brine project in Argentina, a moderately sized lithium resource being developed with Argosy’s original, chemical processing methods, and a production target slated for Q2, calendar year 2023.
The 2,000tpa operation is progressing through commissioning and ramp-up phases, with the full ramp-up to steady state productions due from the end of Q2. Production trials have already produced more than 10 tonnes lithium carbonate, averaging 99.79% purity.
Mere hours after releasing the update, AGY’s share price was dropping 1.14% to 43 cents a share.
In the last month, AGY has plummeted more than 41%, and nearly 34% in the year so far.
Meanwhile, lithium competitor Liontown Resources [ASX:LTR] has been skyrocketing off failed takeover proposals by Albemarle:
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Rincon ramp-up due in Q2
Argosy released an update on operations at flagship lithium project Rincon, located in the Salta Province of Argentina.
The development phase of Rincon continues to plan, an operation to progress the 2,000tpa plant into a state of continuous production.
Current batch production trials and the ramp-up phase works have produced 10.2 tonnes of battery quality lithium carbonate product, averaging product quality at 99.79% purity to date.
On top of that, Argosy also revealed that the 2,000tpa commissioning phase works are almost complete, which puts the company in good stead to soon begin preparations for continuous production trials.
Argosy explained that there are still ongoing ramp-up phase works for several processing stages, even as production trials for many processing stages have been completed successfully.
Steady state continuous production operations are targeted from the end of the second quarter.
Argosy Managing Director Jerko Zuvela commented:
‘The Company’s Puna operations team are successfully progressing the 2,000tpa operation commissioning and ramp-up phase works towards continuous production operations, and have produced over 10 tonnes of battery quality lithium carbonate product to date.
‘The Company is excited to realise this significant milestone at our Rincon Lithium Project, becoming only the 2nd ASX listed commercial scale Li2CO3 producer, and achieve many more significant milestones in 2023 as we transform into a cashflow generator, capitalising on lucrative lithium carbonate prices via upcoming product sales revenues, leading to a significant near-term growth phase for the Company.’
Argosy believes its in a good position to take full advantage of current and near-term lithium pricing.
According to Benchmark Mineral Intelligence, lithium carbonate (CIF Asia) pricing has recently been as high as US$63,500 per tonne.
Citi analyst Kate McCutcheon has expressed concerns of lithium unable to catch previous highs, however, prices are expected to pick up from spot by the end of the year, moderating to US$40,000 a tonne next year. She stated:
‘This is still a compelling incentive price and is disconnected from the cost curve. It’s unlike any other commodity, except for iron ore.’
Last week, lithium companies were jumping on the ASX, fuelled by strong price predictions and ongoing interest in the development of the commodity that will play a big role in the world’s net zero goals for 2050.
Source: AGY
Australia’s booming drillers
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Regards,
Mahlia Stewart
For Money Morning
