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AGY argosy minerals limited

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What a great post Bill, you have provided a very good summary....

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263 Posts.

15/06/16

07:32

Post #: 18032979
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Originally posted by billyen ↑

Argosy is one of the best Lithium plays on the ASX right now and these are the reasons why.

Firstly, AGY has distinguished itself from the other 60+ (and growing) juniors who are simply slapping "Lithium" on their website and sending out a press release to the ASX saying they are a Lithium explorer.

AGY Management:
-Is not taking ANY salary! So often we see explorers with no revenue do capital raising for no other reason than to just pay high salaries of top exec and BODs and then do a bit of drilling.
-AGY management own a large amount of shares.
-They aren't selling. Considering they aren't taking salary, one would believe that their actions have nothing but the best intentions of shareholders and they wish to increase shareholder value.
-They've had success and experience in running other small caps.
-After reading years worth of ASX releases from the current team, I find their wording to be straight forward and too the point with-out pie in the sky hype.
-Everything they've said they were going to do...they've done.
-All of management's deals have been well thought out and have low risk to shareholders.

AGY's Lithium assets:
For some silly reason there seems to be a mini- war going on with ASX lithium investors on HC. Hard rock vs. Brine. Brine has been the world's main source of lithium the past 20-40 years. There are pro's and con's to each but to claim brine isn't as good as hard rock is wrong. Otherwise, you haven't looked who's been supplying most of the lithium the past 20+ years.

-AGY currently has 3 solid lithium assets. 1 in Tasmania (Mt Paris) and 2 in Argentina's "Lithium Triangle" . Salar de Pocitos and Mina Teresa covering 4,279 hectares of mining titles. The options on these properties have NOW been exercised and AGY has a full 12 months to commit to purchase. This is a great risk free deal for shareholders and has plenty of upside.

-Mina Teresa is the hidden gem that no one has picked up on. It's on the same lake as one of ORE's projects but, due to clever timing and a change in politics 2 years ago before lithium prices took off. The rights owner picked it up. The large salta is actually in 2 provinces. Salta and Jujuy. Both with different governments views 2 years ago. Now both are very pro-mining as is the federal government which everyone has recently heard about in the news.

-Mina Teresa's lithium resources aren't a mystery as ORE did drilling and posted the results for everyone to see in 2012. Mina Teresa has high lithium content and low magnesium. This will make it less costly to extract the lithium. For the exact results ORE results...DYOR or look through the AGY threads.
This is one of those insider...LOOK what I found...before everyone else found it and AGY has it!

-AGY has a ACE in it's pocket which will give it a dramatic lead over other explorers that will enter the area. The company that AGY is buying it's land from already has a small state of the art Lithium processing plant. It's staffed and run by Dr.Carlos Sorentino, a "Australian trained" with over 20 years experience in Lithium mining and over 10+ years in Argentina. As we all know that Mr.Market gives a MASSIVE difference in valuations to miners than explorers. AGY's plant will only produce a small amount of battery grade but, it WILL PRODUCE and that will give AGY a small cashflow from lithium...something that not many of the ASX juniors can claim.

-There were many mistake's made from building the other larger Lithium processors in the area and AGY management has said they've leant from them. Plus, they have the advantage of taking a small operation and building on it. So with those 2 points...you'd assume that the larger plant that's build would be done faster and be more efficient than the past plants. Again, an advantage over any new players entering the area.

-To a much lessor degree...AGY has a graphite asset and a small amount of cobalt on it's Wee MacGregor asset. Only small samples were taken so there could be more if that became a priority.
Plus, AGY has a loose association with DAF which has a MOU on a Graphite project in Tanzanian.

I only mention these as it shows that AGY is one of the only ASX small caps to be involved with ALL 3 of the main Lithium battery ingredients, even on a small level. It goes to show that AGY management is forward thinking and only interested is assets with high returns.

More "Lithium Triangle" assets targeted:

-AGY will soon be announcing NEW salta projects. One would assume with the assistance of Dr.Sorentino. He'd know which salta's have the highest lithium %. Remembering that Salta's are everywhere in Northern Argentina. Some Juniors are claiming they have mining rights to salta's and these salta could be filled with magnesium. Picking the right asset's is key and AGY has a extremely valuable resource in Dr.Sorentino which will give it a strong advantage over any other juniors entering the area.

The new assets could also be expansion to the current 2 projects.

AGY's Finances:

-AGY has no debt.
-Expenses and admin were just 30k. Yes...30k. (These guys don't stay at the Ritz...they bring a sleeping bag. God love 'Em.)
-AGY just completed a small 800k CR that will cover exploring and getting to a JORC announcement.
-They had 200k before the rights acquisition and stated that this was enough to cover the 100kU.S for Argentina rights.

-Here's the real reason why I'm excited about AGY and it's going to be a 5-10+ bagger. The demand for Lithium is hot as we all know. The supply is a issue for many battery makers. In the past few weeks the some of the smaller lithium players that don't even have a JORC yet have gotten off-take financing. This is truly incredible. They are being given money to go find the stuff...before they even have it. Once they have it...the lithium is used to pay off the debt.

-With all of the above mentioned. I believe AGY will have a JORC soon. If not some solid lithium results to show the market. It's not a question if AGY has Lithium on it's assets. The question is how much. The option to acquire the assets out right is 4.5M U.S. I believe this amount can and will be financed through a off-take deal. AGY in it's most recent announcement has even mentioned off take. Why would you even mention unless your close to something big. I think the battery makers are watching AGY carefully and the calls will be coming soon, if not already. AGY may not even need to do another CR in the future.

AGY's low market cap:
-ORE's market cap is about 1B for only 75% of it's producing Salta.
-The market is valuing GXY's SDV "Lithium Triangle" assets at 400m. (I get that number by subtracting the GMM's MC by GXY's MC.) . I've seen broker reports valuing SDV at over 800M
-AGY's MC is currently under 30M. I believe it will be producing battery grade lithium sooner than SDV as Galaxy plans a much bigger plant.
A fair valuation in the coming months with more news from AGY confirming all of the above should give it a MCap of 80M-200M.

The thing is. This news isn't 6-12 months away. The news flow breakdown should be the following...
*1-2 weeks for more "Lithium Triangle" assets to be acquired. It's possible these assets maybe be better than Salar de Pocitos and Mina Teresa.
*2-4 weeks for the first sampling results to be released.
*4-6 weeks for drilling results to be released.
*6-10 weeks for A JORC result.
*1-3 months...Broker coverage...(with brokerage coverage comes a price target)
*2-3 months...Off-take deal announced.

Every announcement could be 20%-50%+ . This isn't based on my hope or thinking.
It's based on past movement of Lithium juniors announcing the are JUST thinking about looking for lithium.

The last 2 ASX announcement have stressed speed in moving the project forward. With boots on the ground now and exploring and sampling being done as we speak, I believe this will happen.

Press like if you agree with the above. Thanks!

The above is IMO so please DYOR!

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What a great post Bill, you have provided a very good summary. The timeline you post does seem a bit aggressive but AGY has stated they want to move quickly so we can hope the timing is close to you prediction, it would be great if it did!!

AGY Price at posting: 3.6¢ Sentiment: Buy Disclosure: Held
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