Why the Argosy Minerals Limited (ASX:AGY) share price rocketed 50% higher today

One of the biggest movers on the market on Monday has been the Argosy Minerals Limited (ASX: AGY) share price.

At one stage the lithium company’s shares were up as much as 50% to 27 cents before giving back some of these gains.

At the time of writing Argosy Minerals’ shares are up 33% to 24 cents.

Why are its shares rocketing higher today?

This morning the company announced that it has successfully produced battery grade lithium carbonate (LCE) product from its stage 1 plant at the Rincon lithium project in Argentina.

This news will be a welcome relief to shareholders after Argosy Minerals’ shares were smashed in June after an initial sample tested in the company’s laboratory came out as industrial grade LCE and not the sought-after battery grade LCE.

According to today’s release, the latest product, tested in-house, recorded a lithium carbonate content value of 99.6%.

Management has advised that the LCE product will now be prepared for customer samples for their own quality confirmation and testing. These include a number of international cathode and battery-makers.

Before adding that this initial product, pending customer verification of product specification, will form the basis for Argosy Minerals progressing towards finalising a preliminary off-take agreement for the Stage 1 production.

Should you invest?

I think this is great news for the company and its shareholders and I can’t say I’m surprised to see its shares rocket higher today.

The update in June was a disaster for many reasons, but pleasingly the company has managed to move on from that and things look positive now.

This could make Argosy worth a closer look, though, as with industry peers Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE), whether it is a successful investment or not will ultimately come down to future lithium prices.

Although prices remain strong at present, opinion is divided on where they go next. This makes an investment in the industry a high risk one.

Missed the lithium boom? Then don't miss out on this next investment boom.

7 of 8 People Are Clueless About This Trillion-Dollar Market

One of our investors has recently returned from a research trip to Silicon Valley... and has a warning for fellow investors:

Because he works for an organization dedicated to spreading great investing ideas, his video report is free today... so you can see it and decide for yourself.

Don't miss your chance click here to learn about this warning and how you might be able to profit!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!