Long-time ASX lithium darling Argosy Minerals [ASX:AGY] was another of the several commodity miners who provided a quarterly activities report for the December period.
AGY says it is ‘on-track to become only the 2nd ASX-listed battery quality lithium carbonate producer’, now that development for its Rincon lithium operation in Argentina is 98% complete.
The company is close to producing battery quality 99.76% lithium carbonate with commissioning and production test works underway.
The AGY share price was relatively flat by Monday afternoon, but the stock enjoys a boost of 101.5% in share value growth in the last full year.
Argosy chases second place for ASX lithium
Today, the lithium production company explored its highlights for the December quarter, with a ramp-up of continued lithium carbonate production operations scheduled for the present quarter.
Argosy said it’s advancing at a steady state, chasing production by the end of the second quarter of calendar year 2022.
This confidence is no doubt coming off the back of strong progress in test work, construction, and commissioning, with the company already making arrangements for off-takes and CapEx funding for its 10,000tpa (tonnes per annum) operation expansion.
Pre-development works have already been progressing for the 10,000tpa operation expansion. Resource expansion and production well drilling works are also in progress, with the target being to materially expand current JORC Indicated Resources and increase project mine life and future annual production capacity.
Argosy’s 2,000tpa lithium operation development is now 98% complete, commissioning work is also 90% complete.
Aside from the comendable efforts at Rincon, the company also highighted that its prospective Tonopah Lithium Project, located near Albermarle’s Silver Peak operation in Nevada, US, is progressing with exploration works, including geophysical processing, analysis, and interpretatation works to define the best lithium brine targets and drill sites.
The future of lithium
Argosy displayed confidence in what it spies as a ‘continued positive lithium sentiment’, which should provide a supportive foundation for its project development and production strategies.
International lithium carbonate prices have been rising, which has only further boosted both industry and market sentiment.
S&P Platts Lithium Carbonate CIF North Asia price was noted to be trading at US$72,200 per tonne, reaching a high of US$78,000 a tonne during the quarter.
DDP China Lithium Carbonate prices were also said to be currently trading at CNY460,000 a tonne, having reached a high of CNY590,000 per tonne in the past quarter.
Argosy is further encouraged by what it describes as a strong financial position, noting that its cash reserves totalled $36.6 million by the end of December 2022.
It appears Argosy is rearing to take advantage of the underlying demand for EVs, noted as the root cause of record-high lithium prices achieved during the December quarter.
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For The Daily Reckoning Australia