Why the Argosy (ASX:AGY) share price is up 50% in a month

We look at what's happening with the company's shares…

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The Argosy Minerals Limited (ASX: AGY) share price may be down today but this hasn't dented its recent upward trajectory. The lithium miner has been busy progressing construction works at its Rincon lithium project, located in Salta Province, Argentina.

At the time of writing, Argosy shares are down 2.42% to 32.2 cents apiece. Despite the backtrack, the company's shares have shot up 50% over the past month.

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Image source: Getty Images

What's the latest with Argosy?

Investors have been bidding the Argosy share price higher as the company edges closer to bringing the Rincon project online.

Last week, Argosy advised the plant and equipment requisition and procurement works are on track as planned.

Early-lead items such as 150kVA generators, industrial pumps, chillers/coolers, agitators, and motors were sourced from local manufacturers. Furthermore, longer-lead items that include process tanks, reactors, and industrial boilers were being engineering and built locally in Argentina.

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

The company is targeting for the construction phase to be completed sometime in April 2022. Plant commissioning works, along with test works and ramp-up, is set to follow immediately after.

Argosy managing director Jerko Zuvela commented:

The Company's Puna operations team is continuing their timely development progress, with plant and equipment procurement on schedule and budget for the 2,000tpa lithium carbonate production operation at our Rincon Lithium Project.

We look forward to a significant near-term growth phase from the increasing development activity at Rincon as we get closer to completing construction works and transform 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 summary

In the last 12 months, the Argosy share price has gained a mammoth 508%, with year-to-date up more than 303%.

The company's shares rose strongly at the start of the calendar year before profit-taking took hold. More recently, Argosy shares have zipped upwards to reach a multi-year high of 36.5 cents last week.

On valuation grounds, Argosy has a market capitalisation of roughly $404 million, with 1.25 billion shares on issue.

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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