Why has the Argosy Minerals share price rocketed 23% in a month?

Is this why the lithium hopeful has been outperforming lately?

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Key points
  • The Argosy share price has lifted nearly 23% over the last month to trade at 59 cents today
  • That's despite all news released by the company in that time having weighed on its share price
  • However, broad sentiment for ASX lithium stocks might have driven it to recover all its losses, and then some

The share price of lithium hopeful Argosy Minerals Limited (ASX: AGY) has had a lightning run over the last 30 days, gaining nearly 23% in that time.

That's a far better performance than both the broader market and the company's home sector.

The S&P/ASX 300 Metals and Mining Index (ASX: XMM) has gained just 2.4% in that time while the broader S&P/ASX 300 Index (ASX: XKO) has listed 4.3%.

Right now, the Argosy share price is 59 cents, 22.92% higher than it was this time last month.

So, what's been going so right for the ASX 300 minerals developer? Let's take a look.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

Why has the Argosy share price surged 23% in a month?

The Argosy share price has been outperforming both the market and many of its peers lately despite the market reacting poorly to the only news released over the last month.

The first word from the company over the past month was its quarterly report, released on 28 October.

Then, it noted its Rincon operation's development was 97% complete with drilling works continuing well amid positive sentiment in lithium markets.

The company ended the September quarter with around $34 million of cash, having spent close to $1 million on operating activities during the period.

Sadly, the market was unimpressed. It bid the Argosy share price nearly 8% lower on the day of the release. And it wasn't much happier about the company's next update.

The lithium developer revealed that 98% of Rincon's development was completed on 1 November.

It also confirmed that commissioning and production testing activities were progressing well, with a primary lithium product having been produced. 

The Argosy share price slumped 1.9% on the back of the release. Fortunately, however, it regained all that and then some the following day, wherein it soared 6.9%.

Perhaps positive sentiment for ASX lithium shares in general has helped bolster the stock over the last 30 days. Other lithium favourites such as Core Lithium Ltd (ASX: CXO), Lake Resources N.L. (ASX: LKE), and Sayona Mining Ltd (ASX: SYA) have also posted notable gains in that time.

Recent gains included, the Argosy share price is currently 79% higher than it was at the start of 2022. Meanwhile, the ASX 300 has fallen 7% year to date.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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