Ok... I am on a roll today and thought I would share my analyst of the recent QUARTERLY ACTIVITIES REPORT – DECEMBER 2022. I have never done this as I normally keep to myself but thought I would share snippets of the report and my thoughts (I am sure we all go about it in different ways).
1: "The Company is aiming for the strategic funding and off-take arrangements to be finalised to coincide with the 10,000tpa Environmental Impact Assessment regulatory approval (or near this time), and in the lead up to 2,000tpa lithium carbonate production operations."
1(a): 10,000permit- "the Company remains confident of a positive outcome and is targeting formal approval receipt during the current quarter."
* I interoperate this that as the Approvals & Funding deal (just getting best offer) is done and will be announced this quarter. (fingers crossed!)
* Also note (which I think has been lost) that once we get the 10,000tpa up and going we go from 77.5% interest to 90% interest. The market is forward looking and will take this into consideration when the 10,000tpa announcement comes (=more $$$)
2: Strategic Developments "
With the 2,000tpa operation fully funded and progressing toward production operations, and the Company’s nil debt position, Argosy has the financial flexibility to assess varying strategic investment and off-take proposals to ensure a favourable outcome for future project expansion beyond the next stage 12,000tpa capacity, and cooperation opportunities for mutual strategic and economic benefit".
* I think if you look at the AGY's roadmap IMO once the 10,000tpa permit drops they will be straight into the submission of a 25,000tpa? permit. (2023 "EIA Process for additional production expansion").
3: Rincon Resource Expansion & Production Well Drilling Works
2339361.pdf (argosyminerals.com.au)
"The combined JORC Indicated Mineral Resource and Exploration Target1 estimates outline the potential for a range of up to 507,000 tonnes to 724,000 tonnes of contained lithium carbonate to a depth of 300m."
"The exploration drilling and testing program developed may involve: Diamond drilling - six drill-holes to a depth of up to 300m and one drill-hole up to 150m (alluvial fan site)".
"The production well drilling works will be conducted to facilitate the preparation of a Mineral Reserve Estimate and subsequent completion of a Feasibility Study"
"Company notes that the potential for the brine aquifer to continue being open at depth beyond 300m"
QUARTERLY ACTIVITIES REPORT – DECEMBER 2022
"The production well rotary drilling program was completed, with two production wells drilled to depths of 350m".
First Site: (only need 2 sites) "three boreholes completed, to depths of 151m, 411m and 411m"
Second Site: "second exploration drill site location has a borehole with drilling in progress, at a current depth of 384m."
*OK so stating the obvious, this tells me we have completed the production well and the 2sites have exceeded 300m (WOW). I did notice that the second site state "current" which I interoperate that they have not finished the second site however the analyst of the first site has commenced and I would say the Feasibility Study has also commenced. Not sure if I would be expecting a resources announcement this quarter however I would expect to see a resource upgrade over 1 million tones!(aka game changer).
4: Tonopah Lithium Project – Nevada, USA (100% interest)
"Argosy is progressing its exploration works via geophysical processing, analysis and interpretation works to define priority lithium brine targets and select drill sites for planned exploration drilling works"
* Cant see much happening here, however if nothing else would love to see some drill holes go in with a resource estimate out this year.
5: Corporate
"The Company has increased its executive leadership and technical team"
"strong financial position with cash reserves of ~$36.6 million"
* Again stating obvious as well as Puma Mining building plant etc.. we are building a cheap leadership and technical team and have $$ in the bank... I am getting ready for that left field announcement. May be an acquisition or an addition JV who knows (just remember there are over 60 lithium companies listed on asx - I am not sure they will all survive and I am only interested in 1 AGY!!!)
I will leave it there Good Luck all!!
(20min delay)
