With the ASX still seesawing, one bright spot today is Argosy Minerals [ASX:AGY].
The $419.9 million market cap lithium miner is trading 6.67% higher today, rising on the back of some positive news from management regarding their upcoming site in Argentina.
So let’s see what details they had to share…
On track and on time
As long-term investors of Argosy will no doubt know, their Rincon lithium project in Salta Province, Argentina, is finally coming to fruition. It’s a site that will soon become (hopefully) the next standout lithium producer in the region.
Crucially, though, it appears Argosy has timed the launch of their venture to perfection. Because as lithium prices continue to rise, management states that they are still on schedule to bring Rincon online.
This means that the site is still on track to deliver its first battery-quality lithium carbonate product by mid-2022. In other words, in just a few short months.
Indeed, as today’s update boasts, 61% of the total build is now done.
And once construction is complete, all Argosy will need to do is finalise commissioning works — something that the team is already starting to work on as well.
As Managing Director Jerko Zuvela comments:
‘The Company’s Puna operations team are continuing their significant progress on construction and development works at our Rincon Lithium Project, as we head toward commencing the 2,000tpa lithium carbonate production operations.
‘The lithium market remains very positive and lithium carbonate prices are at record levels, which is providing great interest in our project and especially our product, noting our Rincon Lithium Project will become the next commercial production operation. Argosy’s transformation into a cashflow generator is nearing, whilst also progressing toward the next stage 12,000tpa scale operations. We look forward to a significant near-term growth phase from our operations this year and beyond.’
What’s next for Argosy?
With the build nearly done, much of the hard work is likely out of the way. Argosy is on the last legs of what is always a long journey for junior miners.
Having said that, though, once the site is fully operational, the real work will begin. Because the real challenge will be to reach the 2,000 tonnes per annum of lithium carbonate production the company has estimated.
For shareholders, the rest of 2022 will be a crucial year to see how these plans unfold, particularly as the price of lithium continues to fluctuate on demand and supply forces.
And if you’re looking for tips on how to invest in the lithium boom, we can help. We’ve put together a comprehensive guide that analyses and dissects everything there is to know — giving you the insight you need to make informed investment decisions about lithium stocks.
To get a free copy for yourself, right now, click here.
Regards,
Ryan Clarkson-Ledward,
For Money Morning
