Lithium giant Argosy Minerals [ASX:AGY] has released its quarterly activities report and quarterly cash flow report for the latest quarter, March 2023, talking ramped-up phase works, production trials results, and strategic offtake arrangements for capital funding.
Argosy has said its 2,000tpa operation commissioning and phase ramp-up is progressing well, with continuous production targeted from the end of the second quarter this calendar year.
The lithium miner was trading for around 38 cents the time of writing, sitting mostly flat in afternoon trade.
AGY has not been performing overly well in the past few months, having taken a downgrade of 32% so far in the year. Over the last month, AGY has dropped 10% in share value, and these days it is tracking below the S&P 200 by more than 13%:
Source: TradingView
Argosy, fast-tracking Rincon and Tonopah strategies
Today, the lithium producer sought to inform its investors on its continued efforts to fast-track development strategies at the Rincon Lithium Project in Argentina, as well as its review of exploration at Tonopah Lithium Project in Nevada, US.
The group said that it achieved significant milestones in the quarter, which included 10.2 tonnes of battery quality lithium carbonate product being produced at a continuous rate at the group’s 2,000tpa lithium carbonate facility.
Commissioning and ramp-up of phase works are continuing, with a product quality of 99.79%.
Argosy said its chemical process, technology validation, and verifications have concluded, confirming success for battery quality lithium carbonate production at a commercial scale.
The lithium producers have said they are in strategic lithium carbonate product off-take arrangements, as well as in search of associated capital funding for the Rincon lithium project’s 10,000tpa expansion, which are on the right track to be finalised very soon.
Source: AGY
The outlook for Argosy and the lithium market
Argosy noted that it spies a strong international lithium carbonate price outlook, supporting a positive sentiment in the lithium market.
The company is aiming to finalise key significant milestones to derisk and confirm long-term sustainability and boost significantly for its Rincon lithium project.
AGY will also be focused on the long-term lithium carbonate product off-take arrangements for the 2,000tpa and 10,000tpa operations, CapEx funding, and EIA (Environmental Impact Assessment) regulatory approval to develop and expand said operations.
The company’s target to achieve continuous production operations from the end of the second quarter of the year will be a significant milestone as it moves to commercial producer status and generates cash flows from lithium carbonate product sales.
Investors will soon be able to see the plans in action as the 2,000tpa commissioning phase works near completion, with continuous production operations being around the corner.
In parallel, the company’s moves for strategic funding and off-takes should also be finalised soon, which will coincide with the final touches in approvals for both the 10,000tpa and 2,000 lithium carbonate production operations.
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