Argosy Minerals (ASX: AGY) has secured a spot sales contract to supply 60 tonnes of battery-quality lithium carbonate, exceeding 99.5% purity, from its Rincon Lithium Project in Argentina. The buyer is a Hong Kong-based chemical company. Argosy Minerals is an Australian resources company focused on lithium development. The company is advancing its Rincon Lithium Project in Argentina and also has projects in Nevada, USA.
The spot sales contract is priced according to the Shanghai Metals Market’s battery-grade lithium carbonate price. The delivery terms stipulate that the product will be delivered free on board at the Buenos Aires port. Argosy will receive an upfront deposit of 30%, with the remaining 70% due before the ship is loaded.
Jerko Zuvela, Managing Director of Argosy, stated that the company received strong interest in the sale of its battery-quality lithium carbonate product. He added that Argosy expects to benefit significantly from the resurgence of the EV/lithium sector, particularly given the development milestones achieved at the Rincon project. Zuvela noted the company is among an exclusive group of battery-quality lithium carbonate exporters.
This contract represents a positive shift for Argosy, which recently reported a net after-tax loss of $15.5 million. The loss was largely attributed to impairment recognized on the Rincon project following an independent valuation, as well as losses from the group’s share of Puna Mining. Foreign exchange losses also contributed to Puna’s deficit due to currency differences when converting foreign earnings into Australian dollars.
