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Ground Breakers: The ASX’s next lithium carbonate producer is a couple of months away from ‘lucrative’ cashflows
Lithium brine project developer Argosy Minerals (ASX:AGY) could be entering production at just the right to time to enjoy some … Read More
The post Ground…
- Continuous lithium carbonate operations at Argosy’s 2,000tpa Rincon project are scheduled for next quarter
- ‘Lithium carbonate prices forecast to continue around record highs into 2023 and beyond’: AGY managing director Jerko Zuvela
- Materials edges higher: iron ore and lithium stocks up, gold flat
While consensus is that lithium prices must moderate, we are yet to see any sign of that heading into the last two months of 2022.
Lithium Carbonate 99.5%Min China Spot
564,500.00 +2,000 (+0.36%) pic.twitter.com/MRMdd6uDMd— Haplo (@HC_Haplo) October 31, 2022
Lithium brine project developer Argosy Minerals (ASX:AGY) could be entering production at just the right to time to enjoy some super profits.
It’s initially small 2,000tpa Rincon lithium carbonate project in the Salta Province of Argentina is almost ready to go, with operation development works and plant commissioning 98% and 86% complete, respectively.
The commissioning phase of any new operation can be a stressful time for a company and their investors, but Argosy seems to have leapt that hurdle with aplomb, so far.
Continuous lithium carbonate operations are now scheduled for next quarter, it says.
“The company is very excited as we progress to become the second ASX listed commercial scale lithium carbonate production company, transforming into a cashflow generator and leading to a significant near-term growth phase for the company,” AGY managing director Jerko Zuvela says.
“The lithium market maintains its strong momentum with lithium carbonate prices forecast to continue around record highs into 2023 and beyond, resulting in very lucrative upcoming product sales revenues.”
AGY intends to ramp up to a 10,000tpa production target within the next few years.
The $710m market cap stock is flat in early trade today, and up 55% year-to-date.
NOW READ: Q+A – Argosy Minerals’ Jerko Zuvela on why its near-production lithium project is built… different
AGY share price chart
Materials edges higher: iron ore and lithium stocks up, gold flat
In the first session of the new month, the Aussie market is still hanging onto its early gains and is up ~0.1%. The Industrials & Property sectors are climbing for the seventh straight session. The Financials sector is slipping by 0.35%. Currently, ~79% of stocks are rising.
— CommSec (@CommSec) November 1, 2022
Gold stocks trod water, but the big iron ore miners are back in the winner’s column despite prices for the steel-making ingredient falling below $US80/t overnight.
Also making gains in early trade are the lithium producers, led by Pilbara Minerals (ASX:PLS) and Allkem (ASX:AKE), up ~3.5% and 3% respectively.
Australia’s next lithium miner Core (ASX:CXO) also gained +3% to lunchtime.
PLS, AKE, CXO share price charts
The post Ground Breakers: The ASX’s next lithium carbonate producer is a couple of months away from ‘lucrative’ cashflows appeared first on Stockhead.
