Argosy Minerals (AGY) H1 2024 earnings summary

Executive summary

• Principal activity focused on development of the Rincon Lithium Project (Argentina) and exploration of the Tonopah Lithium Project (USA), with no significant change in activities during the period.

• Achieved key milestones at Rincon, including government EIA approval for 10,000tpa production, resource upgrade, and strategic investment from Amperex Technology.

• 2,000tpa demonstration operations suspended due to lithium market conditions; focus shifted to pre-development engineering for 10,000tpa expansion.

• No dividends declared or paid for the half-year.

Financial highlights

• Net loss after tax of $70.9 million for the half-year ended 30 June 2024, compared to a net profit of $1.89 million in the same period last year.

• Loss driven by $69.4 million impairment expense related to Puna Mining S.A. due to adverse lithium market conditions.

• Basic and diluted loss per share of 5.02 cents, compared to earnings per share of 0.13 cents in the prior year.

• Cash and cash equivalents at 30 June 2024 were $11.3 million, down from $13.9 million at 31 December 2023.

• Net cash used in operating and investing activities totaled $10.1 million; $7.5 million raised from share issue.

Outlook and guidance

• Key objectives for the remainder of 2024 include advancing Rincon's 10,000tpa project to construction-ready stage, upgrading resource estimates, and commencing regulatory process for expansion to 24,000tpa.

• Strategic focus on de-risking Rincon and considering new project opportunities and acquisitions.