Here’s why the Argosy (ASX:AGY) share price is climbing today

The company is moving ahead with building its flagship project.

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The Argosy Minerals Limited (ASX: AGY) share price is in the green during mid-morning trade today.

This follows the lithium miner’s update on its Rincon Lithium Project, located in Salta Province of Argentina.

At the time of writing, Argosy shares are up 3.57% to an intraday high of 14.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.1% to 7,750 points.

How is the Rincon project progressing?

Investors are buying Argosy shares after the company reported positive developments at the Rincon site.

In today’s release, Argosy advised that it has secured plant and equipment items for its 2,000tpa lithium carbonate production operation. This includes early-lead items such as electric power generators, generators and piping for brine pumping operations, and site tanks.

Longer-lead items such as boilers, cooler/chiller, process tanks and reactors are all being engineered and fabricated locally in Argentina.

Argosy stated that process plant development operations are progressing on schedule, with site works to increase in the coming months.

Other items like the evaporator/dryer, is being manufactured in Germany, and the filters are being sourced from Asia. The mill which has been already built and delivered came from the United States.

The company is planning for the construction phase to be completed during the first quarter of 2022. Plant commissioning works along with test works and ramp-up is set to follow immediately after.

Argosy managing director, Jerko Zuvela highlighted the company’s achievement, saying:

The Company’s Puna operations team is making major progress, with the plant and equipment procurement on schedule and budget for the 2,000tpa lithium carbonate production operation at Rincon.

We are excited as we continue works to transform Argosy into a battery quality lithium carbonate producer and cashflow generator, and then to further progress the 10,000tpa project development expansion. We look forward to a significant near-term growth phase from the increasing development activity at our Rincon Lithium Project.

About the Argosy share price

Since the beginning of the year, Argosy shares have recorded gains of more than 75% for shareholders. The company’s share price reached a 52-week high of 21.5 cents in January, before treading lower.

Argosy has a market capitalisation of around $175 million, with approximately 1.25 billion shares outstanding.

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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.

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