Argosy Minerals (AGY)
Price at time of recommendation: 7.4c
Argosy Minerals Company Overview
Argosy Minerals Limited (ASX: AGY) is an Australian company, listed on the Australian Securities Exchange (ASX:AGY), with a current 77.5% interest in the Rincon Lithium Project in Salta Province, 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.
Argosy is committed to building a sustainable lithium production company, highly leveraged to the forecast growth in the lithium-ion battery sector.
Best Shares Thoughts
The lithium sector in China has come under pressure from weaker overall macro sentiment, with the US and China governments failing to reach an agreement on the current trade dispute. This has continued to negatively impact overall sentiment in the China market. With a backdrop of a weaker than expected economic growth, tighter credit and financial liquidity overall across many industries, and with battery material and cell manufacturers having undertaken significant de-stocking and maintaining a low inventory stance, lithium pricing continued to be soft.
This will likely turn around in the coming months and years, and Argosy will be incredibly placed to take full advantage of this. The company has begun producing and now stands out from the rest of their competitors globally. There is high demand for battery grade lithium to build EVs, e-cigarettes, smartphones, tablets, laptops and TVs.
Despite a few teething problems, AGY has ticked every box presented to it. Who is to doubt it won’t tick the next three. The current share price does not reflect the goals they just keep kicking, or the balls knocked over the fence. Getting Mitsubishi as an off-take partner is a big win, regardless of the size of the order. Once Argosy prove they can produce at a larger scale, it’s very likely they will enter into a new agreement and the sky will become the limit.
Directors & Senior Management
|Mr. Jerko Peter Zuvela||Managing Director, Non-Executive Director|
|Ms. Andrea Betti||Company Secretary|
|Mr. Alexander Molyneux||Non-Executive Chairman of the Board|
|Mr. Ranko Matic||Non-Executive Director|