Argosy Minerals (AGY) Q3 2024 TU earnings summary

Executive summary

• Progressed engineering and feasibility works for 12,000tpa Rincon Lithium Project, targeting FID in H2-2025 and commercialisation by end-2025.

• Upgraded Mineral Resource Estimate underway after acquiring additional tenements, aiming to extend mine life and support larger production scenarios.

• Executed spot sales contract for 20t of battery-grade lithium carbonate at US$13,400/t, a premium to market prices; ~80t stockpiled for strategic sale.

• Suspended 2ktpa demonstration facility operations to preserve capital amid subdued lithium prices, focusing resources on 12,000tpa project development.

• Maintained strong financial position with ~$7.3 million in cash at quarter-end.

Financial highlights

• Cash reserves of ~$7.3 million plus US$62,000 in subsidiary account as of 30 September 2024.

• Project development expenditure of ~$2.59 million for Rincon and $536,000 for ongoing development during the quarter.

• Exploration and evaluation spend of ~$136,000, mainly for Tonopah Project rent.

• Related party payments totaled ~$243,000 for director and consultancy fees.

Outlook and guidance

• Targeting FID for Rincon 12,000tpa project in H2-2025, with construction to commence by end-2025.

• Ongoing strategic partner process to secure funding and long-term offtake agreements, expected to intensify with sector M&A activity.

• Anticipates mild lithium price recovery in Q4-2024 due to Chinese industrial growth and producer restraint.