The Argosy Minerals Limited (ASX: AGY) share price is pushing higher on Monday. This comes after the company announced an operational update on construction works at the 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 lithium production source.
During late afternoon trade, the lithium miner's shares are up 1.72% to 29.5 cents. This means its shares have now risen more than 40% in the past month alone.
Image source: Getty Images
How is Argosy tracking at Rincon?
Investors are buying up Argosy shares following the company snapshot of its progress at the Rincon Lithium Project.
According to its update, Argosy stated that around 45% of the total works have now been completed to bring the Rincon Lithium Project online. The development of the modular 2,000tpa (tonnes per annum) of lithium carbonate production plant remains on schedule and on budget.
The company is aiming to achieve the first commercial production of lithium carbonate product from mid-2022.
Major construction works such as building the process plant, equipment and associated installations, and expansion of the brine system have all progressed. As such, Argosy provided a summary of the current progress:
- 99% of earthworks/land movements completed;
- 86% of site works completed (site camp/accommodation, laboratory, office, and other works);
- 73% of the brine system completed (pumping station and plant settling ponds);
- 32% of the process plant completed (plant equipment acquisition and plant warehouse);
- 33% of utilities and associated services (vapour system, communication system, and ancillary services) completed
Argosy stated that the construction phase is scheduled to be finished in April 2022. Other stages of the project, such as commissioning works, production test-works and ramp-up, are expected to follow.
What did the head of Argosy say?
Argosy managing director Jerko Zuvela touched on the update, saying:
The company's Puna operations team continue making significant progress on construction and development works, toward commencing 2,000tpa lithium carbonate production operations at our Rincon Project. With lithium market sentiment and lithium carbonate prices maintaining strength, we are excited as we escalate works in transforming Argosy into a battery quality lithium carbonate producer and cashflow generator, and then to further progress the 10,000tpa project development expansion.
Argosy share price review
Since the beginning of the year, Argosy shares have zipped higher, recording gains of almost 270%. The company's share price reached a 52-week high of 30.5 cents last week and could stretch further.
Argosy presides a market capitalisation of roughly $368.83 million with approximately 1.25 billion shares outstanding.
