Insights

Here’s why the Argosy (ASX:AGY) share price is surging 9% today

This ASX lithium mining company is on track to develop commercial lithium product.
The post Here’s why the Argosy (ASX:AGY) share price is surging 9% today appeared first on The Motley Fool Australia. –

The Argosy Minerals Limited (ASX: AGY) share price is surging today following an update on its 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 source of lithium production.

At the time of writing, the lithium miner’s shares are up 9.52%, trading at 11.5 cents.

Let’s take a closer look at what Argosy reported to the ASX market this morning.

Developments works schedule

The Argosy share price is surging after investors were provided an update on the company’s resource expansion planning works.

According to its release, Argosy is preparing to conduct a resource expansion drilling program to increase the current JORC Indicated Mineral Resource estimate at Rincon. The company is currently in discussions with several strategic groups on product off-take agreements and investment options. It hopes to expand the 2,000tpa (tonnes per annum) of lithium carbonate to a 10,000tpa project development.

Argosy is targeting to achieve the first commercial production of 2,000tpa of lithium carbonate product from late Q2 FY22.

The miner said the drilling program would target the defined Exploration Target estimate with an exploration drill-hole and testing program. However, before works proceed, the company will need to secure regulatory approvals. This is due to the environmental impact caused from deeper drilling.

The combined JORC Indicated Mineral Resource and Exploration Target estimates up to 507,000 tonnes to 724,000 tonnes of contained lithium carbonate at a depth of 300 metres.

Argosy stated that the planned works proving the Exploration Target estimat, could extend project mine life and future production capacity. Currently, the Rincon project has a mine-of-life of 16.5 years at a 10,000tpa production rate.

Management commentary

Argosy managing director Jerko Zuvela commented on the company’s plans, saying:

Argosy is rapidly progressing toward commercial lithium carbonate production operations to provide the most significant critical raw material needed for the battery revolution, with development plans to quickly follow our 2,000tpa project with an additional 10,000tpa production expansion.

This places Argosy in an enviable position, becoming only the second ASX listed company and the next international battery quality lithium carbonate producer.

The Argosy share price has gained more than 110% in the last 12 months, with year-to-date up more than 40%.

The post Here’s why the Argosy (ASX:AGY) share price is surging 9% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Argosy right now?

Before you consider Argosy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Argosy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Argosy (ASX:AGY) share price falls 9% despite positive update

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!