This comes after the lithium developer released an update on its Rincon lithium project in Argentina.

At the time of writing, the Argosy share price is up 4.76% to 6.6 cents.

The move adds to an impressive run for the small-cap lithium stock. Over the past 12 months, Argosy shares have surged more than 175%, reflecting growing investor interest in the company's progress.

Here's what the company announced today.

Rincon lithium project makes progress

Argosy provided an update on engineering and feasibility work for its 12,000 tonnes per annum (12ktpa) Rincon lithium project in Salta Province, Argentina.

According to the release, recent process technology test work produced 96% lithium recovery. This result supports the proposed processing flowsheet for the project.

The tests successfully produced high-purity lithium chloride concentrate, which is expected to be used as an intermediate product in the company's processing strategy.

Argosy said the strong recovery rate increases confidence in the underlying process design and supports ongoing feasibility work.

The company is continuing to optimise the chemical flowsheet and advance key engineering studies as it works toward completing the feasibility program.

Two-stage development strategy

The Rincon project is being developed through a two-stage production pathway.

In the first stage, Argosy plans to produce solid lithium chloride as an intermediate product.

Stage two would then convert that lithium chloride into battery-quality lithium carbonate or lithium hydroxide. These are key materials used in lithium-ion batteries.

Management said producing lithium chloride first could deliver several commercial advantages. These include lower upfront capital requirements, faster market entry, and simpler processing requirements.

Energy infrastructure advances

Argosy also confirmed progress on power infrastructure for the Rincon project.

Following feasibility work with electricity distributor EDESA, the company has identified a supply solution that would provide a reliable 33kV connection from the 500kV Argentina national grid.

The plan includes a medium voltage line around 18.6 kilometres long linking the project to a nearby substation. The substation sits next to the 28MW Altiplano solar facility, which could support a long-term power supply.

To help deliver the infrastructure works, Argosy has appointed Lycopodium as the owner's electrical engineer.

What management said

Argosy Managing Director Jerko Zuvela said the latest results mark another important step forward for the project.

He commented:

We are very pleased with the positive progress on the feasibility and engineering works, with successful test works confirming 96% lithium recovery and producing high purity lithium chloride concentrate.

He added that the power infrastructure solution represents a major advantage for the project and helps position the company for potential early development.

What's next for Argosy?

Argosy said it is continuing to complete the remaining engineering and feasibility work required for the Rincon development.

Successful completion of the feasibility study would be an important milestone as the company moves toward project financing and production.

The post Why this ASX lithium stock is jumping 5% today appeared first on The Motley Fool Australia.

Argosy said in a statement to the ASX on Monday that the Salta Electricity Distribution Company (EDESA) had completed the detailed engineering and feasibility works on a medium voltage line to the company's Rincon lithium project, with the line capable of supplying 40 megawatts of energy.

The company went on to say:

The next phase of works for the medium voltage line project comprises a competitive tender process to bid for the electric transmission line and associated transformer station construction works from reputable contractors. Provisional cost estimates and delivery schedules completed by EDESA will be further defined as part of this process. In parallel, the company is engaging with local renewable energy providers to establish Power Purchase Agreements (PPA's) to ensure sustainable and cost-efficient energy supply to the Rincon project via the national power grid. Access to reliable, grid-based power is expected to reduce operational costs, strengthen project economics and minimise the need for costly on-site diesel power generation.

Argosy said securing access to national grid power was a critical milestone for the project and significantly derisked it, while also improving the project's economic viability.

Feasibility works ongoing

Argosy Managing Director Jerko Zuvela said:

Completing the detailed engineering works for the medium voltage Line project and securing strategic access to national grid power marks a significant milestone for the development of our 12,000tpa Rincon lithium project and positive progress toward finalising the feasibility works. Completing the medium voltage line project will provide a major cost-saving advantage, given access to energy is the key barrier to entry for many lithium projects, where such infrastructure and access to grid power is lacking in the NW region of Argentina. Being only  about 8km from such critical energy infrastructure beneficially positions Argosy for sustained growth and success to ultimately develop and successfully commercialise our Rincon lithium project.

Argosy owns a 77.5% interest in the Rincon project and can earn up to 90%.

The company recently said in a statement to the ASX that the process design phase works for the project had been completed, and test work would be done to determine the optimal process for processing lithium at the project.

Argosy Minerals shares hit 13.5 cents on Monday morning, returning to their 12-month highs before settling back to be 4% higher at 13 cents.

Argosy was valued at $192.9 million at the close of trade on Friday.

The post Argosy Minerals' lithium project ticks off key milestone appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is down a whopping 38% to 5 cents. This morning, this lithium miner announced the indefinite suspension of operations at the Rincon Lithium Project in Argentina. The company made the move in response to current lithium market conditions and near-term lithium price forecasts. Management intends to maintain and preserve the facility during this period. It will also retain optionality to resume operations if there is a sustained increase in lithium prices and appropriate operational conditions.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 4% to $22.05. This follows the release of an update on the travel agent's guidance for FY 2024. Flight Centre now expects its profit before tax (PBT) to be in the range of $316 million to $324 million for the year. Managing director, Graham Turner, said: "While market conditions were challenging during FY24, we again delivered solid TTV growth as customers prioritised travel over other areas of discretionary spend. Year-on-year growth rates were, however, adversely impacted by the Indian wholesale foreign exchange business's closure (FY23: $360m TTV) and significant airfare price deflation during the 2H."

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down 9% to $1.19. This appears to have been driven by profit taking after a strong session on Tuesday following the release of an announcement. That announcement revealed that the US FDA has accepted its Biologics License Application (BLA) resubmission for Ryoncil (remestemcel-L) in the treatment of children with steroid-refractory acute graft versus host disease. While this is good news, it isn't an approval, nor is it a surprise, so investors may have overreacted to yesterday's announcement.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is down 5% to $19.24. Investors have been selling this radiopharmaceuticals company's shares after it raised funds via a convertible bonds offering. Telix has successfully priced A$650 million 2.375% convertible notes that will be due in 2029. Telix's CEO, Dr. Christian Behrenbruch, said: "The Convertible Bonds provide us with attractive, low-cost financing at a clear inflection point in Telix's journey. The proceeds deliver financial flexibility to execute on our strategic priorities, while reducing potential dilution of existing shareholders."

The post Why Argosy Minerals, Flight Centre, Mesoblast, and Telix shares are sinking today appeared first on The Motley Fool Australia.

In early trade, the ASX lithium stock is down 33% to a 52-week low of 5.4 cents.

Why is this ASX lithium stock crashing deep into the red?

Investors have been rushing to the exits this morning after Argosy Minerals released a major update on the Rincon Lithium Project in Argentina.

According to the release, in response to current lithium market conditions and near-term lithium price forecasts, the company has decided to suspend operations at the 2,000 tonnes per annum (tpa) facility.

Management intends to maintain and preserve the facility during this period. It will also retain optionality to resume operations if there is a sustained increase in lithium prices and appropriate operational conditions.

In the meantime, it will focus its near-term works on completing the 10,000 tonne per annum (tpa) project pre-development engineering works to achieve a construction-ready stage and to significantly de-risk the project.

Upon successful completion of the engineering works, together with the recent hydrogeological dynamic modelling results, it expects the project to be able to extract lithium brine for up to 42 years to produce 12,000tpa of LCE product (or up to 22 years to produce 24,000tpa of LCE product).

The ASX lithium stock's managing director, Jerko Zuvela, commented:

The Company is resetting to achieve long-term and sustained success, and to realise Argosy's ambition to fully develop the Rincon Lithium Project. We are very proud of the substantial progress made to date. We are cognisant of current lithium market conditions and are establishing the optimal strategic pathway to maximise shareholder value to become an international lithium carbonate producer.

Searching for a strategic partner

The ASX lithium stock is looking for a strategic partner to help it achieve its Rincon Lithium Project goals. The good news is that it has received interest from a number of unnamed parties despite the unfavourable market conditions. It said:

With the onset of weakened lithium prices and current lithium market sentiment, strategic interest and investment in new lithium production facilities for long term lithium product procurement is receiving ever greater scrutiny and related due diligence by potential strategic groups. Notwithstanding this, industry analysis of forecast lithium supply/demand is indicating a structural deficit over coming years.

The Company has continued to receive inbound interest relating to the strategic partner process targeting funding investment associated with long-term off-take arrangements for the 10,000tpa project from groups within the battery/EV supply chain and broader lithium industry participants. The Company continues to assess and review each opportunity, will maintain engagement with the international investment bank, and refocus on already established strategic relationships. In parallel, various groups continue their due diligence processes on the Project, with the aim of determining a preferred strategic partner and investment structure.

These clearly are tough times for Argosy Minerals and other ASX lithium stocks.

The post Here's why this ASX All Ords lithium stock just crashed 33%! appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are racing higher:

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is up 10% to 14.3 cents. This morning, this lithium developer announced that it has received government approval for the development of its 10,000tpa lithium carbonate expansion operation at the Rincon Lithium Project in Argentina. This means that the company now has the thumbs up to increase its production to 12,000tpa. Management said: "This significant milestone further confirms Argosy's ambitions and near-term growth phase to fully develop the Rincon Lithium Project."

Immutep Ltd (ASX: IMM)

The Immutep share price is up 10% to 42.5 cents. This follows the release of the preliminary top-line results from Cohort B of the TACTI-003 Phase IIb trial evaluating eftilagimod alpha (efti) in combination with Keytruda. The trial is for the first-line treatment of recurrent/metastatic head and neck squamous cell carcinoma patients with negative PD-L1 expression. Management declared the results as "positive".

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is up 5% to 83.2 cents. Investors have been buying this sports betting company's shares following the release of its third-quarter update. PointsBet reported a 7% increase in turnover to $676.4 million and a 24% lift in total net win to $70.6 million. In addition, the company announced plans to return $127 million or $0.39 per share to shareholders via a capital return. This follows the sale of its US business, which completed earlier this month. PointsBet's shares will trade ex-capital return on Tuesday 30 April. Eligible shareholders will then be paid this capital return on 16 May.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is up 2.5% to $2.16. This follows the release of the gold miner's quarterly update this morning. Regis Resources reported gold production of 90,600 ounces at an all-in sustaining cost (AISC) of $2,735 per ounce. This includes a $234 per ounce non-cash inventory adjustment. Pleasingly, management has been able to maintain its FY 2024 guidance despite the impact of substantial and protracted regional wet weather. The gold miner expects gold production of 415,000 ounces to 455,000 ounces with an AISC of $1,995 per ounce to $2,315 per ounce. The latter includes a ~$200 per ounce non-cash inventory adjustment.

The post Why Argosy Minerals, Immutep, Pointsbet, and Regis Resources shares are racing higher appeared first on The Motley Fool Australia.

In early trade, the ASX lithium stock is up an impressive 15% to 15 cents.

Why is this ASX lithium stock rocketing?

Investors have been fighting to get hold of the company's shares this morning after it made a big announcement relating to the Rincon Lithium Project in Argentina.

According to the release, Argosy Minerals has received official signed approval from the Government of Salta Province and the Secretary of Mining and Energy to grant the development of its 10,000tpa lithium carbonate expansion operation at the project.

This follows the approval of the company's Environmental Impact Assessment (EIA) and means the company is now able to increase its production to 12,000tpa of lithium carbonate product.

Management believes the EIA approval significantly de-risks project development at Rincon and will now prioritise a strategic partner process. This includes securing capital expenditure funding and off-take arrangements with a tier one counterparty in the electric vehicle supply chain for the 10,000tpa expansion.

'A significant milestone'

The ASX lithium stock's managing director, Jerko Zuvela, was very pleased with the news and described it as a significant milestone for the company. He said:

We are grateful to the Salta Province regulatory authorities, especially the Secretary of Mining and Energy and her team. The Company has conducted extensive works on this EIA process to prove the long-term sustainability of our project.

This is a significant milestone and I thank our team for such an achievement and we look forward to completing our upcoming milestones. The Company can confidently advance its strategic partner process, with the EIA approval providing significant de-risking for a potential strategic group to become involved in realising the development of the next 10,000tpa stage of our Rincon Project. This significant milestone further confirms Argosy's ambitions and near-term growth phase to fully develop the Rincon Lithium Project.

Despite today's strong gain, this ASX lithium stock remains among the worst performers on the All Ordinaries index over the last 12 months.

During this time, its shares have lost a very disappointing 62% of their value. As a comparison, over the same period, the All Ordinaries index has delivered a return of 6.2% before dividends. Including them, the return would be closer to 10%.

Shareholders will no doubt be hoping that today marks a turning point in the company's fortunes.

The post Guess which ASX lithium stock is rocketing 15% on big news appeared first on The Motley Fool Australia.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors. If they are buying, it suggests that they are confident in the direction the company is heading.

With that in mind, listed below are a few ASX shares that have reported meaningful insider buying recently. They are as follows:

Mesoblast Ltd (ASX: MSB)

Mesoblast shares have been on a tear in recent weeks. So much so, despite falling 14% since this time last week, they remain up a massive 125% on a monthly basis and 150% year to date.

This has been driven by an announcement relating to its remestemcel-L product candidate.

Mesoblast revealed that the US Food and Drug Administration (FDA) has advised that there should be sufficient results to support the submission of the company's proposed Biologics License Application (BLA) for its stem cell therapy to treat paediatric patients with steroid-refractory acute graft versus host disease.

The market appears hopeful that this is a sign that remestemcel-L will finally be approved by the FDA.

Despite this strong gain, one of Mesoblasts' directors was adding to their position last week.

A change of director's interest notice reveals that Jane C. Bell AM snapped up 233,918 Mesoblast shares on-market for an average of 85.5 cents per share. This equates to a total consideration of $199,999.89.

Argosy Minerals Limited (ASX: AGY)

Another ASX share that has reported meaningful insider buying is lithium developer Argosy Minerals.

A change of director's interest notice shows that the company's non-executive director, Pietro De Leo, increased his holding with an on-market trade on 9 April.

De Leo bought 175,000 shares for a total consideration of $23,625.00. This equates to an average of 13.5 cents per share.

Unlike Mesoblast shares, Argosy Minerals have been sold off again this year and are now down almost 70% on a 12-month basis.

Calix Ltd (ASX: CXL)

A third ASX share that insiders have been buying is clean energy technology company Calix.

With its shares down almost 60% since the start of the year, it seems that non-executive director, Dr Sarah Ryan, believes it has created an opportunity to add to her holding.

The change of director's interest notice reveals that Dr Ryan bought 10,000 Calix shares through an on-market trade on 10 April. The director paid an average of $1.495 per share, which equates to a total consideration of $14,950.

The post Insiders are buying Mesoblast and these ASX shares appeared first on The Motley Fool Australia.

A number of ASX lithium shares are going gangbusters on Wednesday, much to the delight of their long-suffering shareholders.

ASX lithium shares going gangbusters

Here's a summary of some of the movers and shakers in the industry today:

• The Argosy Minerals Limited (ASX: AGY) share price is up 8% to 10.25 cents
• The Core Lithium Ltd (ASX: CXO) share price is up 7% to 19.25 cents
• The Latin Resources Ltd (ASX: LRS) share price is up 8.5% to 15.2 cents
• The Liontown Resources Ltd (ASX: LTR) share price is up 5.5% to 95 cents
• The Mineral Resources Ltd (ASX: MIN) share price is up 3% to $56.91
• The Piedmont Lithium Inc (ASX: PLL) share price is up 11% to 20.5 cents
• The Pilbara Minerals Ltd (ASX: PLS) share price is up 4% to $3.52

What's going on?

It appears that investors have been flooding back into ASX lithium shares on Wednesday in response to strong gains made by their global peers.

For example, Ganfeng Lithium jumped 8%, Tianqi Lithium leaped 7%, Albemarle rose 4%, and Lithium Americas Corp climbed 7% during overnight trade.

It's possible that some investors believe that the industry has been oversold and are now returning to pick up some bargains.

In addition, there has been some individual news giving at least a couple of these ASX shares a boost today.

As we covered here, Pilbara Minerals has executed an amendment to its existing offtake agreement with Chengxin Lithium Group. It notes that this materially extends and expands the supply of spodumene concentrate to a leading lithium chemical converter.

In 2024, Pilbara Minerals will supply an additional 60kt of spodumene concentrate, taking the total supply to 85kt. In 2025 and 2026, the company will supply 150kt of spodumene concentrate to Chengxin Lithium Group.

Elsewhere, Piedmont Lithium has released a corporate update this morning. It confirmed that it has completed a 27% reduction in its workforce in an effort to cut costs. It hopes to save US$10 million on an annual run rate.

The post 7 ASX lithium shares going gangbusters today appeared first on The Motley Fool Australia.

Three ASX mining shares having a really bad day

Argosy Minerals Limited (ASX: AGY)

First up is lithium hopeful Argosy Minerals. Argosy shares started the day at 18 cents each. But at present, this ASX mining share has cratered by a nasty 7.03% down to 17 cents a share. This follows the company's latest quarterly activities report covering the three months to 30 September 2023.

Argosy told investors that it had burned through $456,000 in net cash over the quarter, bringing its total 2023 to date (up to 30 September) cash burn to $855,000. The company had approximately $17.8 million in cash reserves at that date.

Argosy told the markets that "All chemical process technology reviews, validation and verification works have been successfully completed, confirming the Company's capability to produce battery quality lithium carbonate product".

Even so, investors might be put out by this:

Production output has been constrained due to downtime associated with equipment modifications and the performance testing conducted on the primary solid's filtration circuit, which are being prioritised to expedite achieving continuous production operations.

We covered investors' growing apathy over this ASX mining stock back in June, so it appears that this report has done nothing to assuage those concerns.

Sandfire Resources Ltd (ASX: SFR)

Sandfire shares are another ASX mining company under the pump today, although not nearly by quite as much as Argosy. At present, the Sandfire share price has retreated by 0.59% and is down to $5.90 a share.

Again, we have a September quarterly presentation to discuss here.

Sandfire reported copper production of 30.8kt for the quarter, with 22.2kt coming from its flagship MATSA project.

Overall, the ASX 300 mining share also disclosed quarterly revenues of $201 million, as well as underlying operational earnings before interest, tax, depreciation and amortisation (EBITDA) of $81 million.

Group EBITDA came in at $66 million, with the company possessing $113 million in cash. That's against a net debt of $454 million.

It seems investors are, at best, ambivalent about these latest figures from Sandfire today, judging by what's happening with the company's share price.

Chrysos Corporation Ltd (ASX: C79)

Finally, let's check out ASX 300 mining services share Chrysos. Chrysos shares have lost a substantial 2.8% of their value so far this session, and are trading for $6.30 each at the time of writing. Remember, this company is now up more than 110% year to date in 2023.

Once more, we have a quarterly investor update to discuss here. For the three months ending 30 September, Chrysos brought in $8.9 million in total unaudited revenue. That represents a 73% year-on-year growth rate and 4% quarter-on-quarter.

Chrysos declared a $33 million cash position after receiving a net-positive $1.1 million cash inflow over the quarter. The ASX 300 mining share also revealed that two new units of its PhotonAssay product have been deployed over the quarter so far, with another one redeployed.

But again, it seems investors were expecting a bit more from Chrysos, going off of what the shares are doing.

The post These ASX mining shares are tanking hard right now, and here's why appeared first on The Motley Fool Australia.

At one stage this morning, the lithium developer's shares were up as much as 15% to 20.2 cents.

Its shares have pulled back a touch since then but remain up 7% to 18.7 cents currently.

Why is the Argosy Minerals share price jumping?

Investors have been buying the company's shares for a couple of reasons. The first is another strong showing in the battery materials industry, which has seen most lithium shares recording decent gains today.

Another reason has been the release of an update on the Rincon Lithium Project in Argentina, which reveals that operational works at the 2,000tpa lithium carbonate facility are progressing.

According to the release, performance testing works are being conducted within the primary solids filtration circuit to improve filtration rates. In addition, specialist filtration consultants have been engaged to improve operational performance.

Positively, all chemical process technology reviews, validation, and verification works have been successfully completed. Management notes that this confirms the company's capability to produce battery quality lithium carbonate product, with average product quality achieved up to 99.9% to date.

In addition, the company advised that it is making progress with its plan to expand the operation to 10,000tpa in the future.

Argosy Minerals' managing director, Jerko Zuvela, commented:

The Company is prioritising works to achieve continuous production operations at our 2,000tpa lithium carbonate operation. In addition, significant progress is being made with the pre-development works for the 10,000tpa operation expansion. The Company is working toward finalising upcoming significant milestones that will support Argosy's ambitions and near-term growth phase to fully develop the Rincon Lithium Project.

The post Why is the Argosy Minerals share price jumping 15% today? appeared first on The Motley Fool Australia.

That's according to top broker Macquarie, which has slapped an outperform rating on 16 stocks.

Let's review.

Why buy ASX lithium shares today?

Lithium stocks have fallen over the past year alongside declining lithium prices.

In The Australian this week, Macquarie said today's weaker prices for lithium stocks have created a buying opportunity and now is the time to snap them up for long-term investment.

The broker said:

We believe this is a buying opportunity for investors, especially the ones who look past short-term volatilities, to increase their exposure to a critical mineral at an attractive price level.

Despite a softer market sentiment, we see value in lithium developers underpinned by resource quality and/or favourable jurisdictions.

The short-term market trough creates an opportunity for strategic investors which could unlock value through business consolidation or offtake agreements.

The 16 stocks to buy

Macquarie says its favourite lithium stock today is Pilbara Minerals Ltd (ASX: PLS).

The Pilbara Minerals share price closed on Friday at $4.30, down 5.7% over the past 12 months.

The other 15 lithium stocks earning an outperform rating from Macquarie are as follows:

• Argosy Minerals Limited (ASX: AGY) shares (down 62% in 12 months)
• Core Lithium Ltd (ASX: CXO) shares (down 62% in 12 months)
• Sayona Mining Ltd (ASX: SYA) shares (down 61% in 12 months)
• Galan Lithium Ltd (ASX: GLN) shares (down 45% in 12 months)
• Global Lithium Resources Ltd (ASX: GL1) shares (down 38% in 12 months)
• Piedmont Lithium Inc (ASX: PLL) shares (down 26% in 12 months)
• Atlantic Lithium Ltd (ASX: A11) shares (down 26% in 12 months)
• Allkem Ltd (ASX: AKE) shares (down 15% in 12 months)
• Iluka Resources Limited (ASX: ILU) shares (down 15% in 12 months)
• Leo Lithium Ltd (ASX: LLL) shares (down 10% in 12 months)
• Lynas Rare Earths Ltd (ASX: LYC) shares (down 10% in 12 months)
• IGO Ltd (ASX: IGO) shares (down 8% in 12 months)
• Patriot Battery Metals Inc. CDI (ASX: PMT) shares (down 2% in 12 months)
• Mineral Resources Ltd (ASX: MIN) shares (up 3% in 12 months)
• Meteoric Resources NL (ASX: MEI) shares (up 2,150% in 12 months)

What did the broker say about these ASX shares?

Macquarie says Piedmont Lithium shares have a potential upside of more than 200% from today's price level.

Macquarie says Pilbara Minerals, Allkem, and Mineral Resources offer 100% to 160% upside.

It notes that Allkem offers "unique exposure to both lithium brine in South America and spodumene production in Australia".

Several other brokers also say Allkem shares are a buy right now. The Allkem share price closed on Friday at $11.76, up 2.1% for the day.

Macquarie said Patriot Battery Metals presents "the greatest upside on exploration over the near term", and that Global Lithium Resources "also offers great near-term exploration upside …".

The post Macquarie says these 16 beaten-up ASX lithium shares represent a buying opportunity appeared first on The Motley Fool Australia.

Surprisingly, enthusiasm for lithium miners is in abundance despite prices for the electrifying commodity remaining near 52-week lows. According to Trading Economics, the going rate for lithium carbonate is approximately US$22,810 per tonne, more than 70% below the high set in November 2022.

The pre-eminent ASX index is up 0.52% as we sprint toward the close. However, several lithium companies are touting gains in excess of 5% today. So, what is driving the unmatched excitement toward this basket of critical commodity suppliers?

Promising signs for lithium shares

Before we delve into what could be behind the impressive performance across lithium companies today, here are a handful of names putting the ASX index to shame:

• Core Lithium Ltd (ASX: CXO) up 23.5%
• Latin Resources Ltd (ASX: LRS) up 6.5%
• Argosy Minerals Ltd (ASX: AGY) up 7.9%
• Sayona Mining Ltd (ASX: SYA) up 6.3%
• Galan Lithium Ltd (ASX: GLN) up 10.3%

The best performer among the bunch is Core Lithium, rocketing higher after releasing its FY2023 results this morning.

Until today, Core had failed to produce a profit while the company was in its exploration stage. However, that all changed with its latest full-year results. In FY23, Core Lithium generated $50.6 million in revenue and $10.8 million in net profit after tax after successfully reaching production.

Core managed to sell 5,432 tonnes of spodumene concentrate at an average realised price of US$4,163 per tonne. For context, Pilbara Minerals Ltd (ASX: PLS) achieved an average realised price of US$4,447 per tonne during FY23.

Today's widespread positivity toward the lithium sector could partly be a result of Core Lithium's ability to reach production and turn a profit. Additionally, investors might be taking on board recent optimistic comments from Macquarie analysts.

The broker rattled off several lithium shares it currently sees value in amid suppressed share prices. Some of these included Piedmont Lithium Inc (ASX: PLL), Mineral Resources Ltd (ASX: MIN), and IGO Ltd (ASX: IGO), among many others.

Liontown Resources Ltd (ASX: LTR) was one lithium miner not considered as a possible outperformer by Macquarie. Ironically, the takeover target is one of few companies in the sector seeing its share price fall on Friday after disclosing increased project costs.

What portion of the ASX 200 index is exposed to lithium?

You might think the strength in ASX lithium shares would be reflected in a more impressive gain on the benchmark today. While it certainly doesn't hurt, the sector's impact on the ASX 200 is minimal.

If you were curious how much weighting the main ASX index has toward lithium, look no further.

Based on market capitalisation, lithium companies currently make up 1% of the entire ASX 200. Hence, even significant rises in companies like Allkem Ltd (ASX: AKE) and Core Lithium fail to really move the needle.

The post Why are lithium shares dominating the ASX index on Friday? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is down 2.5% to 18.5 cents. This morning, this lithium developer's shares hit a new 52-week low despite many of its peers shooting higher. The market doesn't appear overly optimistic over the company's Rincon Lithium project in Argentina.

Block Inc (ASX: SQ2)

The Block share price is down 1% to $84.12. This follows a decline in the payments company's shares on Wall Street overnight. Block's shares on both exchanges are now trading close to 52-week lows. They are also both down approximately 20% over the last 12 months.

Meridian Energy Ltd (ASX: MEZ)

The Meridian Energy share price is down 1.5% to $4.84. This morning, this energy company released its monthly operating report and revealed that national electricity demand in August was 4.5% higher than the same period last year. So why the decline? Well, it's probably reduced demand for safe-haven assets like utilities after investor sentiment improved greatly.

Supply Network Ltd (ASX: SNL)

The Supply Network share price is down 1% to $15.04. This has been driven by the after-market vehicle parts company's shares going ex-dividend this morning. Eligible shareholders can now look forward to receiving Supply Network's 28 cents per share fully franked final dividend at the start of next month on 3 October. Excluding this dividend, the company's shares would actually be climbing with the market today.

The post Why Argosy Minerals, Block, Meridian Energy, and Supply Networks shares are falling appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is up over 6% to 41.5 cents. This morning, this lithium developer revealed that its 2,000tpa operation commissioning works have advanced to a 24-hour trial of continuous operations. This has led to the production of ~20 tonnes of battery-quality lithium carbonate product, with product quality of 99.79%.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is up 8% to 94 cents. This follows the release of the phase one definitive feasibility study (DFS) of the Hombre Muerto West (HMW) project. Management advised that the DFS delivers compelling economics from an initial 5.37ktpa LCE operation at HMW, targeting a high-quality 6% concentrated lithium chloride product in the first half of 2025. Phase 1 has an estimated post-tax net present value of US$460 million with an internal rate of return of 36% and free cash flow of US$54 million per year.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 4% to $5.09. Investors have been buying this lithium miner's shares following the release of an update on its mid-stream plans. Management advised that it has made significant progress in the detailed front-end engineering and design (FEED) of a proposed mid-stream demonstration plant. A final investment decision is expected in the very near future.

United Malt Group Ltd (ASX: UMG)

The United Malt share price is up 9% to $4.79. This morning, this maltster announced that it has entered into a scheme implementation deed with Malteries Soufflet. This will see the French maltster acquire United Malt by way of a scheme of arrangement. United Malt shareholders will receive $5.00 per share in cash.

The post Why Argosy Minerals, Galan Lithium, Pilbara Minerals, and United Malt shares are rising appeared first on The Motley Fool Australia.

Since the start of the year, the lithium developer's shares have lost approximately a third of their value.

As a comparison, Core Lithium Ltd (ASX: CXO) shares are down 6% and Pilbara Minerals Ltd (ASX: PLS) shares are up 36% over the same period.

Why are Argosy Minerals shares underperforming?

Investors appear to be concerned with the company's commissioning progress over the last 12 months at the Rincon project in Argentina, as well as the uncertainty on costs.

In respect to the latter, a recent update from Lake Resources NL (ASX: LKE) has shown that it now expects its costs to be significantly higher for its operation in Argentina.

As things stand, we still don't know how profitable (or not) Argosy's Rincon project will be and are awaiting its feasibility study. In its annual report, the company warns:

There is a complex, multidisciplinary process underway to complete a feasibility study to support any development proposal. There is a risk that the feasibility study and associated technical works will not achieve the results expected. There is also a risk that, even if a positive feasibility study is produced, the project may not be successfully developed for commercial or financial reasons.

It is also worth noting that, unlike many of its peers, Argosy Minerals has yet to announce any offtake agreements or strategic investors. This makes it a bit of an anomaly, which is potentially raising a few eyebrows.

It also goes some way to explaining why short sellers have been running the rule of the company. Short interest has jumped from 1.25% in the middle of March to 3.4% today. And while this is lower than some of its peers, it is certainly on an upward trend.

Time will tell if this is a buying opportunity or the start of greater declines for Argosy shares.

The post Why have Argosy shares crashed 33% this year? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Allkem Ltd (ASX: AKE)

The Allkem share price is down almost 3% to $14.44. This is despite there being no news out of the lithium miner. However, it is worth noting that a number of lithium shares fell heavily overnight on Wall Street. This may have been driven by concerns over economic data out of China and the impact this could have on electric vehicle demand.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is down 6% to 44.7 cents. As well as broad weakness in the lithium industry today, the release of an update on the Rincon project in Argentina could be weighing on its shares. Some investors may be a touch underwhelmed with the company's progress.

Audio Pixels Holdings Ltd (ASX: AKP)

The Audio Pixels share price is down 4.5% to $14.00. This may have been driven by profit taking after strong gains earlier this week. Investors were buying the digital speaker developer's shares after it streamed a demonstration of its technology at its annual general meeting. Time will tell if it is as ground-breaking as claimed.

Imugene Limited (ASX: IMU)

The Imugene share price is down 4.5% to 10.5 cents. That's despite the immuno-oncology company releasing yet another announcement this morning. Today's announcement reveals that Imugene has dosed its first patient in the combination cohort of the IMPRINTER study.

The post Why Allkem, Argosy Minerals, Audio Pixels, and Imugene shares are falling appeared first on The Motley Fool Australia.

That's because the smaller players can currently be in an exploratory stage, when they're searching for a viable mineral deposit. The share price can be very cheap at this phase because the business is not actually selling any lithium.

Then if they start producing at one of its sites, the stock price can rocket.

Of course, the risk is that the exploration might come to nought.

However, the analysts at Macquarie Group Ltd (ASX: MQG), for one, reckons careful selection of the best junior miners can increase your chances of success.

Production expected in 'coming months'

The Macquarie team is, at the moment, rather fond of lithium explorer Argosy Minerals Limited (ASX: AGY).

The Motley Fool reported a couple of weeks ago that the analysts put an outperform rating on the lithium miner with an 80 cent share price target.

That's a mouthwatering 60% upside potential from the Tuesday price of 50 cents.

"Macquarie has been pleased with the progress the company is making with its Rincon lithium project in Argentina," said The Motley Fool's James Mickleboro.

"It highlights that the steady run-rate production is expected to be achieved in the coming months."

As well as the prospect of production starting this year at the Argentinian site, the company has an exploratory project ongoing in Nevada in the US.

Great long-term prospects for lithium 

Over March and April, the Argosy share price endured a 40% fall. But according to The Motley Fool's Bronwyn Allen, there was no tangible adversity announced from the business that would cause such a plunge.

Thus the current window might present an excellent buying opportunity.

Although lithium prices have cooled off considerably over the past six months, multiple experts tip that the mineral will enjoy hot demand for years to come.

According to Shaw and Partners portfolio manager James Gerrish, lithium batteries have been around for decades, but one particular modern-day phenomenon is driving the current boom.

"It's the growth in electric vehicles that is driving the demand for this lightweight, high-energy-density input," he said on Market Matters last week.

"While we cannot see lithium prices re-scaling the 2022 highs for many years, there is still plenty of opportunity."

The post 60% upside! Macquarie says buy Argosy shares now appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Argosy Minerals Limited (ASX: AGY)

According to a note out of Macquarie, its analysts have retained their outperform rating and 80 cents price target on this lithium developer's shares. Macquarie has been pleased with the progress the company is making with its Rincon lithium project in Argentina. It highlights that the steady run-rate production is expected to be achieved in the coming months. The Argosy Minerals share price is currently trading 50% lower than Macquarie's valuation at 40 cents.

Regis Resources Ltd (ASX: RRL)

A note out of Morgans reveals that its analysts have upgraded this gold miner's shares to an add rating with an improved price target of $2.51. Although Regis delivered a third-quarter update that was short of the broker's expectations, it is sticking with it. This is due to its improving outlook thanks partly to the McPhillamys approval. In addition, Morgans views potential consolidation activity in the large-cap gold domain and the organic growth opportunity offered by Regis favourably. The Regis Resources share price is fetching $2.13 today.

Telstra Group Ltd (ASX: TLS)

Another note out of Macquarie reveals that its analysts have retained their outperform rating on this telco giant's shares with an improved price target of $4.68. This follows news that Telstra has lifted some of its mobile prices. The broker was pleased with the news and sees rational pricing as a big positive for Telstra. In fact, it suspects that the company could be on course to deliver stronger than expected earnings in the coming years because of this. The Telstra share price is trading at $4.37 on Friday.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

Although the resources sector as a whole is having an off-day, a good number of lithium miners and developers are roaring higher.

Here's a summary of how some of ASX lithium shares are performing today:

• The Core Lithium Ltd (ASX: CXO) share price is up 2.5% to 98 cents.
• The Liontown Resources Ltd (ASX: LTR) share price is up 1% to $2.75.
• The Mineral Resources Ltd (ASX: MIN) share price is up 2% to $80.33.
• The Pilbara Minerals Ltd (ASX: PLS) share price is up 4.5% to $4.21.

Why are some ASX lithium shares charging higher?

While there has been no news out of these ASX lithium shares today, as we covered here on Friday briefly, there has been some major news in the industry in the last few days.

That news is that the Chilean government plans to create a state-owned lithium company that owns controlling stakes in local lithium producers.

This sent the shares of lithium giants Albemarle Corporation (ASX: ALB) and Sociedad Quimica y Minera de Chile (ASX: SQM) crashing down to earth on Friday on Wall Street.

Bloomberg notes that the government will respect existing arrangements with the two companies, but then move to a state-controlled model once contracts expire in 2030 and 2043, respectively. Alternatively, the two mining giants could opt to give up a majority stake in their operations before then.

So why are some shares rising?

It is worth noting that not all ASX lithium shares are rising today. For example, Allkem Ltd (ASX: AKE) is flat, Lake Resources N.L. (ASX: LKE) is down 4.5%, and Argosy Minerals Limited (ASX: AGY) is down 3.5%.

The difference between these shares and the ones rising above is the location of some of their operations.

The ASX lithium shares that are rising have operations in low-risk jurisdictions, whereas the three listed above all have operations in Argentina.

This appears to indicate that some investors are concerned that Argentina might see what Chile is doing and try to replicate it. In light of this, it may have led some investors to switch out of these shares and into largely Australian-based lithium shares.

The post Why are ASX lithium shares powering higher today as the resource sector bleeds? appeared first on The Motley Fool Australia.

The ASX lithium share closed the session on Thursday at 39 cents, down 1.3% for the day.

Since the close on 13 March when the stock was worth 63 cents, it has tumbled by a massive 38.6%.

Let's take a deep dive into this sea of red to find out what's going on.

Why is the Argosy Minerals share price in freefall?

Argosy Minerals is a lithium mine developer that owns two key projects — the Rincon Lithium Project in Argentina and the Tonopah Lithium Project in the United States.

It's a small-cap player with a market capitalisation of $555 million.

The ASX lithium share has rapidly declined since hitting a 52-week high of 80.5 cents on 9 February.

A factor pushing the Argosy share price up at that stage was an announcement on 1 February that its Rincon Lithium Project would be ready for steady-state production by the end of the June 2023 quarter.

This will make Argosy Minerals only the second commercial-scale lithium carbonate producer on the ASX.

Since then, there have been two price-sensitive updates.

On 1 March, we heard about the commencement of lithium carbonate batch production works at Rincon, with 5.1 tonnes of battery-quality product produced.

A second update came early this month, with Argosy reporting 10.2 tonnes of battery-quality lithium carbonate product at an average quality of 99.79%.

This is all good news, so there are no clues here to explain the 40% fall.

But here's some perspective.

This 40% fall is coming off the back of an absolutely stellar run for the ASX lithium share.

Over 2021 and 2022, the Argosy Minerals share price shot the lights out, rising an astronomical 610%.

That's not a typo.

The shares went from 8 cents at the close on 31 December 2020 to 57 cents at the close on 30 December 2022.

What would you do?

Well, it seems some investors are choosing to take their money and run!

This isn't surprising after such gob-smacking gains in the Argosy Minerals share price.

It's entirely normal to see a stock — or indeed, the entire market — pull back a bit after a massive bull run.

We've also heard a lot about tumbling lithium prices, which may have contributed to Argosy's decline.

The Lithium Carbonate Index (battery grade) has also fallen by about 40% over the past month.

It is currently trading at US$26,217 per tonne on the Shanghai Metals Market.

The post Why has the Argosy Minerals share price plummeted 40% in a month? appeared first on The Motley Fool Australia.