Unfortunately for its shareholders, the Argosy Minerals Limited (ASX: AGY) share price is finishing the week on a very disappointing note.
In early afternoon trade the lithium miner's shares are down a massive 28% to 11.5 cents.
Why has the Argosy Minerals share price crashed lower?
Today's decline appears to be a case of profit taking after the Argosy Minerals' share price rocketed over 60% higher on Thursday.
This was driven by news that the company had executed a sales agreement with Mitsubishi RtM.
According to the release, the agreement covers a preliminary arrangement for Argosy's initial supply of lithium carbonate product from its Rincon Lithium Project in Argentina. This is an initial 100 metric tonnes of lithium carbonate over a 12-month period.
The sales price for each cargo will be determined using a set formula agreed between the parties that references an industry standard benchmark index LCE product price.
Argosy managing director, Jerko Zuvela, was delighted with the agreement and optimistic on its long-term benefits.
He said: "We are delighted to secure this preliminary product off-take arrangement with Mitsubishi RtM, signifying both companies' beneficial interests to formalise our well-established relationship. Argosy places considerable importance in working together with Mitsubishi RtM and the potential longer term benefits this relationship may deliver."
Before adding: "It is also a strong endorsement of Argosy, the Rincon Lithium Project and our fast-track development strategy toward commercial LCE production. We are honoured that Mitsubishi RtM has selected and trust Argosy as their lithium carbonate off-take partner."
Should you invest?
This is certainly a big step forward for Argosy Minerals and I can't say I'm surprised to see its shares climb notably higher this week.
However, as I have mentioned a few times before, I intend to stay clear of lithium miners such as Argosy Minerals, Galaxy Resources Limited (ASX: GXY), Orocobre Limited (ASX: ORE), and Pilbara Minerals Ltd (ASX: PLS) until there have been sustained improvements in lithium prices.
