How are material stocks AGY & LYC performing? - Kalkine Media

January 18, 2023 07:09 PM AEDT | By Bhawna Gupta
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Highlights

  • Materials stocks are represented by ASX 200 Materials index which closed 0.07% down today at 18,882.00 points.
  • Following Russia's invasion of Ukraine in February 2022, prices for metals and other commodities increased, supporting gains in several equities of materials.
  • Argosy Minerals Limited (ASX:AGY) is making progress at the Rincon Lithium Project.
  • Lynas Rare Earths Limited (ASX:LYC) will announce its quarterly results for the period ending 31 December 2022 on 30 January 2023.

Materials like concrete, chemicals and metals are the foundation of the large-scale economy. The materials sector comprises of companies that discover, build, and process raw materials used in industries. Material stocks tend to perform well when the economy is expanding. However, they are more vulnerable to global supply chain crises and political issues.

Following Russia's invasion of Ukraine in February 2022, prices for metals and other commodities increased, supporting gains in several equities of materials.

Materials stocks are represented by ASX 200 Materials index which closed 0.067% down today at 18,882.00 points. However, the index gained 0.70% in the last five trading sessions, 6.34% in the last month and almost 30% in the last six months.

On this note, let us skim through developments of two ASX-listed materials companies- Argosy Minerals Limited (ASX:AGY) and Lynas Rare Earths Limited (ASX:LYC).

Argosy Minerals Limited (ASX:AGY)

The Tonopah Lithium Project and the Rincon Lithium Project are both being developed by Argosy Minerals Limited (ASX:AGY). The centerpiece of Argosy's lithium development strategy is the Rincon Lithium Project, which is situated in Salta Province, Argentina. The Tonopah Lithium Project in Nevada, USA, is another project that Argosy has an interest in.

Earlier in January 2023, Argosy released an update on the Rincon Lithium Project. 98% of the overall development work for the 2,000 tpa lithium carbonate production operation has been finished, including the current commissioning work, which is 90% complete. The company has produced lithium carbonate product with a battery quality of 99.76%.

In the following weeks, it is anticipated that the current commissioning and production test-works phase will be completed. The production ramp-up phase will then begin during the current quarter. By the end of Q2-CY2023, the company hopes to have reached steady-state production operations after completing the ramp-up phase.

Shares of Argosy closed at AU$0.64, up 0.79% on ASX today. The shares have gained around 9.48% in the last one month but have fallen almost 5% in the last five trading sessions. Argosy shares recorded a growth of more than 90% in the last six months.

Lynas Rare Earths Limited (ASX:LYC)

Lynas Rare Earths Limited (ASX:LYC) develops rare earth resources as well as the mining and processing of rare earth materials particularly in Australia and Malaysia. Among the company's properties are Mt. Weld, Lynas USA, Lynas Malaysia, and Kalgoorlie. Rare earths market prices as well as demand for NdFeB magnets were strong across 2022. Demand is growing for electric vehicles and wind energy.

In FY22, Lynas attained record sales revenue of AU$920 million and a record NPAT of AU$540.8 million. The company will announce its quarterly results for the period ending 31 December 2022 on 30 January 2023.

Lynas' shares last exchanged hands at AU$8.54 each, up 0.71% on ASX today. The company's shares increased by 0.35% in the last five trading sessions, 3.77% in the past one month and almost 7% in the last six months.


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