Key Points
- Argosy shares accelerate on back of positive update at Rincon Lithium Project
- Over half of the total works have now been completed
- On track for production of lithium carbonate in mid-2022
The Argosy Minerals Limited (ASX: AGY) share price is charging ahead on Tuesday. This comes after the company announced an operational update on the construction works at the Rincon Lithium Project.
Argosy holds a 77.5% interest in the Rincon project, located in Salta Province, Argentina. The mine is situated within the 'lithium triangle' – the world's dominant lithium production source.
At the time of writing, the lithium miner's shares are up 4.48% to 35 cents apiece.
Argosy on schedule with Rincon
Investors are buying up Argosy shares following the company's snapshot of its progress at the Rincon Lithium Project.
According to its release, Argosy stated that around 56% of the total works have now been completed to bring the Rincon Lithium Project online. The development of the modular 2,000tpa (tonnes per annum) of lithium carbonate production plant remains on schedule and on budget.
The company is targeting to achieve the first commercial production of lithium carbonate product from mid-2022.
Major construction works such as building the process plant, equipment and associated installations, and expansion of the brine system have all progressed. As such, Argosy provided a summary of the current progress:
- 99% of earthworks/land movements completed;
- 86% of site works completed (site camp/accommodation, laboratory, office, and other works);
- 76% of the brine system completed (pumping station and plant settling ponds);
- 52% of the process plant completed (plant equipment acquisition and plant warehouse); and
- 53% of utilities and associated services (vapour system, communication system and ancillary services).
Argosy managing director, Jerko Zuvela provided some upbeat observations, saying:
The lithium market remains very positive and with lithium carbonate prices continuing to increase at these record levels, Argosy's transformation into a battery quality lithium carbonate producer and cashflow generator is nearing, whilst also progressing toward the next stage 12,000tpa phase operations.
With such plans and backed by convincing lithium fundamentals, we look forward to a significant near-term growth phase from our operations this year and beyond at our Rincon Lithium Project.
Argosy share price review
Since the beginning of 2022, the Argosy share price has gained around 10% on the back of the positive investor sentiment.
The company's shares reached a 52-week high of 45.5 cents earlier this month, before retracing slighty lower in the days following.
Based on today's price, Argosy commands a market capitalisation of roughly $457.06 million, with approximately 1.29 billion shares outstanding.
