The Argosy Minerals Limited (ASX: AGY) share price has been a standout performer on the local share market on Monday.
Its shares climbed 12.5% to an all-time high of 45 cents in morning trade. At lunch they have dropped back a touch and are up 11% at 44.5 cents.
This means the lithium-focused mineral exploration company's shares have now rocketed a remarkable 2,125% in the space of a year.
To put that into context, if you'd invested $10,000 in Argosy Minerals' shares a year ago, it would be worth approximately $225,000 today.
Why have its shares rocketed higher?
Almost all Australian lithium miners have pushed higher today. In fact, two other lithium miners are at 52-week highs or better today.
These are the Avz Minerals Ltd (ASX: AVZ) share price and the Orocobre Limited (ASX: ORE) share price. Industry giant Galaxy Resources Limited (ASX: GXY) is also closing in fast on a new high as investors bet on high lithium prices staying around for longer thanks to the insatiable demand for the metal from battery makers.
As well as this, Argosy Minerals recently provided a positive update on its Rincon lithium project in Argentina, revealing that it is close to commencing production at the site.
Furthermore, it has a number of Chinese companies from the lithium battery sector interested in off-take or other value-adding commercial agreements.
All being well, these agreements and the grade of its produce will live up to expectations and justify the incredible rise in its share price.
I think Argosy Minerals will be one to watch this year, but I wouldn't expect to see another 2,000+ gain unfortunately. I would suggest investors add it to their watchlists and look out for any news around off-take agreements in the near future.
