Argosy Minerals Limited (ASX: AGY) is a company from the metals and mining sector that has 77.5% interest in the Rincon Lithium project situated in Salta Province, Argentina. The company remains committed to building a sustainable lithium production company and follows a strategy for enhancing its project portfolio.
On 1 April 2019, the company has released it Annual Report for the period ending 31 December 2018. The company reported $2.52 million Net Loss after Income Tax in FY18 as compared to $5.79 million in FY17.
Major achievement along flagship Rincon Lithium project during the year included: construction of Stage 1 pilot plant and related site operations and using the plant for developing chemical process solution to produce high-grade lithium carbonate. Besides, the company also completed Preliminary Economic Assessment (PEA) and Indicated Mineral Resource Estimate.
The company issued 10 million options to directors (Alexander Molyneux and Malcolm Randall) during FY18. Besides, the company issued 15 million performance rights to directors and other key management people.
The balance sheet reflects $18.6 million Total Assets and $0.504 million Total Liabilities. The Cash Flow statement reflects $1.95 million Operating Cash Outflow, $11.65 million Investing Cash Outflow and $0.88 million Financing Cash Inflow. The net cash and cash equivalents at the end of financial year stood at $2.71 million.
On 29 March 2019, the company provided additional information on the Sales Agreement with Mitsubishi Corporation RtM Japan Ltd which is a subsidiary company of Mitsubishi Corporation.
On 28 March 2019, AGY executed a sales agreement with Mitsubishi Corporation RtM Japan Ltd, where the announcement highlighted that the Agreement covers a preliminary arrangement for initial supply of lithium carbonate product by the company from its Rincon Lithium Project situated in Argentina.
On 29 March 2019, the company in the announcement made a clarification regarding the volume for this preliminary Sales Agreement. As per the preliminary Sales Agreement, the initial volume of lithium carbonate over 12 months is up to 100 metric tonnes. In spite of this, there is flexibility in the sales agreement, that upon mutual consent for additional delivery, the associated parties can extend the contract following preliminary customer integration of the initial lithium carbonate product delivered.
The company also confirmed that there is no requirement of satisfying any material information before proceeding with the Agreement nor there is any material information that is relevant to the agreement.
In the mid of 2019, the company is targeting to commence its operations for the sales agreement. The operation will commence following the receipt of the chemical reagents and preparations of the operational workforce scaling up at the pilot-plant site of the company near Salta, Argentina.
This industrial-scale pilot plant was initially commissioned in April 2018, where the first battery-grade of 99.5% lithium carbonate was confirmed in June 2018.
On 8 March 2019, the company announced that through renounceable right issue, it would raise ~$6.2 million.
On 28 February 2019, Argosy provided an update on the progress of the Rincon Lithium Project.
In the previous six months duration, the stock has generated a negative return of 56.06%. However, in the last five days, the stock has given a decent return of 21.05 %. By the closure of the trading session on 29 March 2019, the closing price of the stock was A$ 0.115, down by 28.125%. Today, the stock is trading 2.61% down at A$0.112 (As at 1:30 PM AEST). The company has a market capitalization of A$106.2 million with approximately 923.5 million outstanding shares.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.