(Asx: AGY) | Argosy Minerals

Aug 22, 2021

Sentiment: Bullish

Type of Trade: Speculative

Industry: EV(Electric Vehicles) - Lithium

Sector: Materials

Risk: Medium-high | Lower risk than SYA, PLL, LKE and CXO as the company is already producing.

Argosy Minerals is an Australian mineral exploration company. It is principally involved in the development of exploration projects for lithium. The projects of the company includes Rincon Lithium Project in Argentina and exploration of the Tonopah Lithium Project in USA.

The company current have 77.5% (and ultimate 90%) interest in the Rincon Lithium Project in Salta Province, Argentina and a 100% interest in the Tonopah Lithium Project in Nevada, USA with the right to move to 90% ownership in consideration for funding Stage 3 development of Rincon Lithium Projects – Argentina.

The Company is focused on its flagship Rincon Lithium Project – potentially a game-changing proposition given its location within the world renowned “Lithium Triangle” – host to the world’s largest lithium resources, and its fast-track development strategy toward production of LCE product.

Key elements to Invest in this Stock

Capital Structure

  • Sound balance sheet

Company is currently at early stages of production

  • With the Projects being at development stage, there is significant upside
  • Investment in the company at this stage is at ‘ground level’ with value expected to be added to the company as the Projects are full developed into operations.
  • High potential for growth

Projects and Timeframe

Rincon Lithium

The Rincon Lithium Project located in the world-class “Lithium Triangle” which is the world’s dominant source of lithium production:

  • Located in Salar del Rincon, Salta Province, Argentina
  • Flagship asset in Argosy’s lithium fast-track development strategy, staged development commenced targeting battery grade lithium carbonate (LCE) production
  • Rincon is joint-venture with pre-eminent lithium processing expert, Pablo Alurralde–Stage 1 industrial scale pilot plant now operational–Stage 2 initial commercial development commenced
  • 38Ha of evaporations ponds complete and operational.
  • Company aims to produce 10,000 tpa.

Stage 1 plant operational & production of battery grade LCE product already working

Stage 2 works progressing

  • Initial ~38Ha evaporation ponds completed
  • Production wells completed and brine pumping on-going
  • 245,000t Indicated JORC-compliant Resource completed
  • Preliminary Economic Assessment (PEA) completed
  • Awaiting to commence construction of ~2,000tpa LCE processing plant, pending funding. (Strong SP sensitive news).

✅ For Stage 3, pending successful development and production from Stage 2.

The Company will consider the best development pathway to ultimately target commercial production from the Project and then earn its ultimate 90% interest in the JV Entity. (SP sensitive news)

NEAR TERM KEY MILESTONES

  • Continue Stage 1 industrial scale pilot plant lithium processing works to produce battery grade LCE product. (SP sensitive).
  • Commence Stage 2 plant construction (SP sensitive).
  • Further progress on Rincon Lithium Project and development of the project Tonopah Lithium Project.

✅ Company owns its own Technology to produce LiO with differentiate technology that generates minimal environmental footprint.

Company has already produced over 25 tones LiO at over 99.5% Li2Co2 via the pilot plan and sold to Japan and South Korea customers.

✅ PEA completed – 16.5 year mine life at 10,000tpa Li2CO3 production, which the company is aiming for.

✅ Ability to further accelerate product qualification and offtake with end users.

✅ Establish further infrastructure for ramp-up to 10,000tpa production level.

The company continue to grow its alliance with European battery sector, having been accepted as a member to the European Raw Material Alliance (ERMA) and EBA250 network which is the industrial workstream of the European Battery Alliance.

Tonopah Lithium Project

This project is strategically located in USA in the lithium battery valley, however it is in its early exploration stages as the company is currently drilling to determine lithium brine prospectivity. Tonopah project has potential for significant lithium brine accumulation with basement depths +3,000m.

Access to the April 2021 Investor Presentation (Click here)

Technical Analysis and Stock Price Movement

Stock has risen 95% since the last bullish intersection level 1 described as per the green circle and trading 15% above the SMA. According to BGS 20 Strategy 15% is already into the FOMO area. Traders have to be cautious about buying stocks that are trading higher than SMA 40. Investors, on the other hand, could take advantage of buying when holding for the next 12-24 months, as the stock offers a great upside potential, provided the company start producing as per the guidance in early 2022.

Entry Details: Targets (VIP MEMBER AREA – LOGIN NEEDED)

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