The Argosy Minerals Limited (ASX: AGY) share price is soaring to a fresh multi-year high on Wednesday. This comes after the company announced an operational update on the construction works at the Rincon Lithium Project yesterday.
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.
During early afternoon trade, the lithium miner’s shares are up 9.09% to 36 cents. This means that its shares have now risen 44% in the past month alone.
Argosy signals progress at Rincon
Investors are buying up Argosy shares following the company snapshot of its progress at the Rincon Lithium Project.
According to its release, Argosy revealed that around 53% 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.
While the design phase has been concluded, construction works are currently at 55% complete. In addition, plat commissions activities which comprise of raw materials acquisition and tender works is 13% complete.
Major construction works involving the construction of 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);
- 73% of the brine system completed (pumping station and plant settling ponds);
- 48% of the process plant completed (plant equipment acquisition and plant warehouse); and
- 45% of utilities and associated services (vapour system, communication system and ancillary services).
Argosy noted that upcoming project works will focus on finalising the brine system along with the associated infrastructure. This is scheduled to be completed sometime in April 2022.
Other stages of the project such as commissioning works, production test-works and ramp-up are expected to follow.
What did the managing director say?
Argosy managing director, Jerko Zuvela highlighted the company’s steps forward, commenting:
The Company’s Puna operations team continue making significant progress on construction and development works, toward commencing 2,000tpa lithium carbonate production operations at our Rincon Project.
With lithium market activity and lithium carbonate prices further increasing to record levels,
and Argosy emerging into a battery quality lithium carbonate producer and cashflow generator, and also progressing with the following stage 10,000tpa project development expansion.
We look forward to a significant near-term growth phase and achieving our upcoming target of initial stage 2,000tpa production operations this year at our Rincon Lithium Project.
Argosy share price review
Over the past year, the Argosy share price has gone from strength to strength, recording gains of more than 210%. Investors are buoyant on the company’s share price as it continues to come in reach of record levels.
Argosy commands a market capitalisation of roughly $455.95 million, with approximately 1.27 billion shares outstanding.
The post Here’s why the Argosy (ASX:AGY) share price just rocketed 9% to a multi-year high appeared first on The Motley Fool Australia.
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