Argosy Minerals Share Price down after Mine-Life News
Shares of Argosy Minerals Limited [ASX:AGY] dropped again today, despite recent news that its lithium project in Argentina is going strong.
At time of writing, Argosy’s share price fell 5% to $0.18.
Argosy Minerals is an Australian owned company with a stake in the Lithium-rich Salta Province of Argentina — otherwise known as the ‘Lithium Triangle’.
While news surrounding the company is exciting, keeping up with current events on the ASX can be a different story. If you consider yourself a beginner or you’re looking for some guidance, be sure to read our investor report on ‘How to Invest in Lithium’.
Argosy Minerals share price in need of finance
The latest drop comes after it announced yesterday that Argosy had finished the preliminary economic assessment (PEA) of the Rincon Lithium Project. The reports reveals that the current project has a mine-life of at least 16.5 years, and is well-supplied to produce 10,000 tonnes per annum on battery-grade lithium carbonate (LCE).
The down side to this is, of course, the finance needed to keep such a project running to commercial production.
Managing Director Jerko Zuvela said of the results:
‘The PEA, together with our operational Stage 1 plant, provides Argosy with a convincing investment proposition to secure additional project finance and strategic partnerships to continue our progress to commercial development.
‘The results of the PEA further validate the Company’s fast-track development strategy to fully develop the Rincon Lithium Project toward commercial production.’
Initial testing revealed less than spectacular industrial grade LCE, leading to dramatic losses in the value of Argosy’s share price.
This, combined with disappointing mid-year results, means investors will have to be patient in order to see better prospects in Argosy Minerals shares.
What does this mean for Argosy Minerals?
While this is certainly exciting news for Argosy Minerals, much speculation remains around the future price of lithium, including the possible oversupply in lithium resources.
Given the uncertainly, investors may see Argosy Minerals as a risky investment going forward. This makes their promises of sustainable and commercially viable production, as well as strong economic growth, all the more interesting for the future.
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