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3.7¢ argosy minerals limited

Many thanks, @WhiteCollared, many thanks indeed!

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02/06/22

13:21

Post #: 61779515
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Originally posted by WhiteCollared: ↑

Hi all,
I was in the room yesterday and was hurriedly taking notes.
Sharing my notes on HC in the interests of current holders and potential holders doing research to see if AGY is right for them.
Keep in mind Jerko has a pretty extensive knowledge of the state of play/current and emerging competitors so he has a habit of name dropping lots of companies - no guarantee I have got their names spelt correctly.
Accuracy is not guaranteed so please DYOR.

Some personal observations:
-We might see Alex come back to do a bit of consultant work here or there.
-JZ has got community benefits for the region front of mind. He wants Argosy to be a great company & employer to have in your neighbourhood.
-Offtake and Enviro Approvals (10k) are guaranteed so stop asking. Offtake will only be signed with the best possible deal and it will be a longterm arrangement (talking 10 years)
-Jerko getting frustrated at the EU being big on clean energy talk but not delivering policy measures to make it happen.
-Mention of the possibility of dividends later down the track!
-Bruce and Peter's area of interest/background seems highly focused on project managing expansions of multiple projects across multiple jurisdictions.

COPY BEGINS:

Mal Randall : First opportunity to chair, a pleasure.
I’d like to recognise Alex molyneux contribution - continues advisory role with the company
Bruce and Peter welcome.
Agenda item 1 - Financial report 1
Resolution 1 adopt the report directors report.
Approx 190 million in support of motions.
Drops to 90 million for issuing options to the new directors
600,000 options each
Resolution 7 company constitution amendment

Mal: It has been a fantastic twelve months even I am surprised. We are in the box seat. It is onwards and upwards.

JZ: Raffa Moreno is the new COO
An update from site - the last time I was there was February 2020.
Covid was a difficult period for the company.
Back then battery quality was sold $6350 per tonne.
The aerial photo is from a month ago, the camp facilities have increased.
Day and night shifts for workers to expand the dongas.
Filter pressers have been installed. The drier was installed a month ago.
Construction finishes by end of July assuming no issues.
Commissioning works will get under way after that.
Production rolling out by the end of the year.
Fantastic local team under Pablo, 6 more vacancies to fill then 24/7 operation
The pilot plant is being used to train people up. The initial team are all experts now.
Plenty of product in stock now from the pilot plant.
We are selling into the local market it is all about helping out the local community and fulfilling our ESG community goals. Town 25km away and you need to support them.
People are really talking about the ESG aspects of new lithium projects.

For the project, Energy is still a big ticket item.
We have access to natural gas pipeline. We have access to a solar park right next door. Tap into two solar parks.
We could build our own solar facility with batteries to be 100% energy independent if we needed to later down the track.
83% complete now. We are under budget atm & we are within schedule.
Ganfeng is up the road building another facility.
A lot of money is being made in the short term with current lithium pricing.
Build when price is low and sell when price is high. A lot of interest for our product with off take.
Re approvals, we have discussed with Production minister and mining secretary of Salta. The min sec reports to prod minister and he has said the environmental approvals (10,000) are going to go ahead.
Commercial arm of the department have said you’ll get it.
We are not going to be difficult for them. We cannot get started until 2000 tap operation is done. Secure strategic relationships.
Had a wave of people get in touch with the price rise. We are not trying to be cute.
The offers have become more favourable.
It will happen. But We need to get it right first time.
Strategic arrangement and a long term arrangement they are all looking for a ten year relationship.
It’s like a marriage. We are the belle of the ball. Regular propositions.
Orocobre has had a great relationship with Toyota Tshusho.
Ganfeng was a great partner - support in the bad times and the good times alike.
We want less dilution for shareholders.
Two years to build a ten thousand tonne operation expansion later 2024 and early 2025 at a larger scale.
Work on approvals while building potentially 25,000 from drilling results for resource increase and a longer mine life. To match up to the end of the year.
Increase that value for our business.

Tonopah drilling occurring in October 2022.
Same development strategy in the US.
Supply chain issues that the US is experiencing. Albemarle silver peak only established.
Biden initiatives for critical minerals. If we find brine we know what to do with it.
Nevada brine is deeper down, it’s not at the surface.
We want to keep building up that business.
We see AGY as potentially being a mini ganfeng with multiple operations.
We want to become a major player over the next couple of years.
(Reopened the meeting poll results passed all resolutions.)

JZ: Lithium carbonate : 20 to 30k a tonne is realistic stable price
It’s definitely not going under 15k anytime soon.
Our Competitors are getting priced out due to energy issues - lack of access to energy in remote resources.
$30k to 50k for the next few years
12k to 26k to 36k
Tesla is currently paying the three month average price of lithium carbonate.
Spot price on the offtake. Guaranteed offtake price.
Just take a look at how Iron ore tonnage keeps going.

Q: Export restrictions in Argentina - could this happen?
JZ: We have a great relationship with the provincial government they want to keep business going.
Federally, Argentina has been a little bit difficult.
Don’t kill the golden goose with high inflation they need foreign investment.
They are more inclined to think about that. They have a track record of not doing anything being silly.
Bolivia has become a basket case. But Argentina is not that way inclined.
Chile you can see $62 billion revenue coming in and they will miss out if they tighten the rules far too much.

Q: EU policy settings
JZ: As for Europe & the EU - they talk a lot but in terms of policy settings and concrete initiatives they don’t know what they are doing.
Governments making directives but not giving industry time frames or subsidies.
Big talk but no action. The eu is simply not doing the proper planning required.
People want to get away from fossil fuel supply chains but they are currently reliant on.

Question: Rio Tinto Neighbours on the Salar
JZ: Rio is a tricky one you hear they do things slowly. They do not move that fast but they have made a big investment.
They will do that project step by step. We want to focus on our own patch.
Sentient didn’t do anything much.
Rio is relying on Russian technology. But Reviews are mixed.
This business is about chemical processing.
Posco , aeromat, etc.
Been there a long time built up massive reserves but it doesn’t translate into a project.
They may want to redrill and start from scratch.
Pablo worked with FMC. Could we work with them (Rio)?
We never say no to making money. Could reinvest it. Want to keep growing.
We want to be paying dividends at some point.
Peers will struggle with that.
A lot of the bigger funds love to see cooperative joint venture/multi party projects occurring.

Question: Bruce & Peter interest in AGY.
Bruce: Very interested in multiple operations being developed and built up. Having multiple, expanding operations on the go all at once.
Getting this project up to 25,000 TPA. I’m quite sick of hard rock mining.
Peter: 20 years of experience on boards.
Lithium is an extremely exciting chemical and this is an extremely exciting time. The desire to play a role in the supply of the product while also using engineering background to assist in the cost effective delivery of plant expansions.

COPY ENDS.

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Many thanks, @WhiteCollared, many thanks indeed!

AGY Price at posting: 44.5¢ Sentiment: Buy Disclosure: Held
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