Why the Argosy Minerals (ASX:AGY) share price has surged 17% today

Shares in the lithium producer are soaring after the company provided an update on its Rincon project.

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Shares in Argosy Minerals Ltd (ASX: AGY) have soared into the green today.

The Argosy Minerals share price lift comes after the company provided an update to its Rincon Lithium project in Argentina.

Argosy shares are now exchanging hands at 13.72 cents apiece, up 14.%, after surging 17% higher to 14 cents around midday.

Quick refresher on Argosy Minerals

Argosy is in the lithium mining business. Its flagship project is the Rincon Lithium Project, where it holds a 77.5% interest.

In addition, Argosy wholly owns the Tonopah Lithium project in Nevada, United States.

Argosy Minerals has a market capitalisation of $150 million at the time of writing.

Progress at Rincon Lithium

Argosy announced it was still on schedule to realise “(greater than) >99.5% battery quality lithium carbonate product” at its Rincon Lithium project, from the midpoint of 2022.

The company said that around one-third of the total works had now been completed of the “modular 2,000tpa lithium carbonate” operation in Salta Province, Argentina.

The release outlined that “33% of the total works were now completed” there, and gave a breakdown of this completion.

For instance, Argosy stated the “design phase is 94% completed, and the construction phase was “at 34% completion”.

In addition, it also stated that the plant’s commissioning works – made up of “raw materials acquisition and tender works” – are 7% complete.

Moreover, Argosy also outlined several progress points achieved throughout the construction phase of the project.

It explained that the majority of earthworks and site works were now completed at Rincon, with 17% of the process plant also completed.

Speaking on the update, Argosy managing director Jerko Zuvela said:

With lithium market sentiment and lithium carbonate prices consolidating the strong gains made this year, and the company being fully funded to 2,000tpa scale production, Argosy remains a lithium sector peer leader that is the only new developer able to supply battery quality lithium carbonate product in the near-term.

Argosy Minerals share price snapshot

The Argosy Minerals share price has lifted almost 72% year to date, extending the previous 12 month’s return of 164%.

These returns have outpaced the S&P/ASX 200 index (ASX: XJO), which is up around 23% over the past year.

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The author Zach Bristow has no positions 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.

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