- On 24 September, Sigma Lithium hosted its 2024 Investor Day,
marking the first year of production and its record-setting ramp-up
of its industrial Greentech Plant.
- The Company outlined its capital-efficient construction
plans to reach approximately 125,000 t/y LCE of industrial capacity
by 2026, cementing Sigma as a lasting industry leader.
- Projections are underpinned by higher production from two
new industrial lines, a first production expansion with capacity of
34,000t LCE /250,000t of lithium concentrate, commissioning in 2025
and our phase 3 expansion with capacity of 54,000t LCE /400,000t of
lithium concentrate commissioning in 2026.
- These two additional production lines are extensions of the
current Greentech plant in operation, leveraging upon existing
infrastructure installed at the Sigma Lithium industrial
park.
- Growth strategy is predicated on maximizing Sigma's unique
competitive cost position through economies of scale, subsidized
financing, and an unwavering commitment to maintaining its carbon
neutrality and social inclusion initiatives.
- Presented the expected results of capex investments already
made at its Greentech plant this year to further increase
production by optimizing its installed capacity. Cumulative
incremental initiatives target a boost to production of
>10%.
- Incorporation of a reprocessing screening circuit to
monetize ~200,000t of inventoried processed ore at 1.5%
Li2O, delivering ~22,000t of lithium
concentrate.
- Pre-screening steps to increase production yields by an
additional 10%.
- Leveraging this greater scale and robust margin profile,
Sigma expects to reach an adjusted cash EBITDA(1) of
$420mm by 2025 and nearly $700mm by 2027 (based on the commissioned
portion of the installed production capacity for each year, with
price forecast based on consensus analyst estimates).
- Detailed the maiden subsidized financing commitment from,
and lasting financing partnership forged with, the Brazilian
National Development Bank (BNDES) to support the Company's capital
investments to industrialize carbon neutral lithium materials in
Brazil.
- Provided a long-term financial plan based on a strengthened
balance sheet, with attractive additional low-interest funding
alternatives to provide flexibility in current market
conditions.
- Industrial processing growth is supported by the Company's
large mineral reserves and resources, comprising the world's fifth
largest mineral industrial complex in operations.
- Sigma's low-cost operational mining opportunities include an
extension to mine 2, creating a large, 45mmt, mining pit, and the
joint development of mines 3 and 4 to create a substantial
consolidated 60mmt mining site.
UNITED NATIONS CLIMATE WEEK IN NEW
YORK
- Sigma Lithium was once again invited by Nasdaq to ring the
closing bell during the opening day of United Nations Climate Week
in New York on September 23.
- Nasdaq recognized the Company for reaching its Net Zero
targets, 25 years ahead of the industry, demonstrating its pioneer
climate action leadership in lithium and battery
materials.
- Sigma Lithium CEO was invited to participate in the
"Building the Future Summit" in recognition of the Company's net
zero achievement and longstanding commitment to
sustainability.
- The Company's climate leadership was demonstrated by the
participation of its senior executives in several key events
including the United Nations Energy Commission's SDG7 Summit, The
United Nation Global Pact for Humanity, Columbia University's Brazil Climate Conference,
Financial Times Climate Summit, and the World Climate Summit
(previewing "Investment COP29")
SÃO PAULO, Sept. 27,
2024 /CNW/ -- Sigma Lithium Corporation
("Sigma Lithium" or the "Company") (NASDAQ: SGML, BVMF: S2GM34,
TSXV: SGML), a leading global lithium producer dedicated to
powering the next generation of electric vehicles with socially and
environmentally sustainable lithium concentrate, presented its
strategic vision at its 2024 Investor Day held at Nasdaq.
The Investor Day Company detailed its path to significant
volume growth and value creation by reinforcing its operational
capabilities and expanding on the merits of its low cost and
capital efficient growth profile.
CEO and Co-Chairperson Ana Cabral
notes: "We are in a very advantageous competitive position:
Sigma Lithium is the industry's third lowest-cost lithium
concentrate producer, benefiting from processing ingenuity and a
low-cost operational jurisdiction. We are building another carbon
neutral Greentech lithium plant in Brazil, with BNDES, the country's development
bank, fully funding our construction. Therefore, we can continue to
deliver on our successful track record to comfortably expand
capacity and meet the significant long-term demand requirements of
our clients, even with the current low-price environment."
She continued, "Our financial resilience is supported by
Sigma Lithium's positioning in the most profitable segment of the
lithium supply chain, away from the fierce competition and
capital-intensive downstream lithium chemicals. All the while, our
Greentech plant produces metallurgically superior lithium
materials, enabling us to maximize the "value in use" of each unit
of lithium we deliver to customers."
"Getting here was the result of relentless dedication of our
team over the last two years, building the Greentech plant and
delivering the production ramp up. Therefore, the main hurdles have
been crossed, and executing on this growth is "replicating the same
strategy", with our highly experienced team in place. We are
very enthusiastic about the many opportunities ahead for Sigma
Lithium," she concluded.
Volume growth predicated on low-risk investments
With
Sigma's phase 1 commissioning and commercial ramp up complete, the
Company outlined brownfield investments to debottleneck production
volumes. This includes steps to improve ultrafines processing and
allow for reprocessing of nearly 200,000t of 1.5% grade stockpiled
material. The Company has also invested to upgrade its network of
crusher screens to reduce maintenance expenses and improve the
purity profile of ore processed by its Greentech facility. All in,
Sigma targets a 10% gain in annual production from these
initiatives.
On a larger scale, Sigma Lithium laid out its plans to more than
triple its current 37,000 tonnes of lithium carbonate equivalent
(LCE) production by the end of 2026 following the
construction of its phase 2 and 3 expansions. For the Phase 2
project, which is under construction now, the Company is targeting
250,000 tonnes of lithium concentrate capacity, or 34,000 tonnes of
LCE. Its larger phase 3 expansion is expected to add 400,000 tonnes
to headline concentrate capacity, or 54,000t LCE. These growth
projects utilize nearly identical processing flowsheets as the
first phase and will benefit from the existing infrastructure at
Sigma. All in, Sigma Lithium expects to lift its total production
volume to 920,000 tonnes of concentrate, or 125,000t LCE, by 2027.
At this scale, Sigma would improve its standing as a leading
producer of lithium materials.
The Company has significantly derisked its business profile over
the past 12 months by proving its dense media separation
(DMS) process, establishing its incredibly reliable shipment
schedule, and demonstrating a highly attractive operating and
capital cost model. This leaves the Company in an excellent
position to execute against these next growth projects.
In addition to the phased buildout of its integrated Greentech
complex, the Company continues to explore entry into the lithium
sulfate intermediates market by 2027. Through lithium sulfate
production, Sigma Lithium seeks to become the linchpin in a new
global battery materials chain that is zero carbon, capital
efficient, and reduces dependence on China. By doing so, the Company could further
monetize its superior product quality profile, which is undervalued
in today's market without stepping far enough downstream as to
compete directly in the intensely competitive segment of lithium
chemicals business.
Growth leverages the benefits of scale and supports robust
earnings growth profile
As the Company commissions
additional capacity, it expects to benefit from significant cost
leverage through its on and off-site fixed-overhead and G&A
expenses. When using the prevailing consensus sell-side estimates
for lithium concentrate price, the model supports robust earnings
and margin expansion. Based on our current forecast, the
combination of volume growth and this price deck drives an adjusted
cash EBITDA for Sigma of $420mm in 2025 and nearly $700mm in
2027.
Attractive financing in place to support these
initiatives
Supporting this growth profile is the recent
commitment by the BNDES for a BRL487mm development loan to
fully fund the construction of Sigma's phase 2 Greentech plant. The
loan carries a sub-treasury interest rate of 7.53% in Brazilian
Reals, or ~2.5% on a USD basis at prevailing swap rates. It also
features an 18-month amortization forgiveness window. With a 12
month build and commissioning timeline, the Company expects to be
generating earnings from its new operations before the BNDES debt
begins to amortize.
The development bank commitment is more than just a loan
package; it is an opportunity to partner with the BNDES over time.
Sigma has the opportunity, should it choose, to tap these capital
pools again to help finance its phase 3 and downstream initiatives.
With greater scale and lower costs, the Company expects to rapidly
de-lever its balance sheet, freeing up room for the additional
subsidized leverage to fund the successive buildouts.
Investments to increase production are supported by
comprehensive mine plan
Supporting this wave of expansion is
110Mt of audited mineral resources
and what the Company and its external auditors believe is a balance
in excess of 150Mt considering its
target pipeline and known pegmatite formations.
This resource represents more than just tonnage, but also
optionality in the Company's mine plan. Given investments made in
the mine, Sigma preserves the option to commission its Phase 2
asset with ore from the Xuxa mine, its upcoming Barreiro mine or a
mix of both. At this point, the most likely strategy will be to
utilize Xuxa, as the geology and minerology are known and best
mining practices are used. This will also allow for optimal DMS
commissioning for its Phase 2 operations and a deferred capex
outlay to pre-strip the second mine.
Over time, the geology team will work to build density among the
core resource portfolio. Targeted drilling initiatives show
extensions to the phase 2 Barreiro mine, which could take the
contained resource to 45mm tonnes, up from 29mm tonnes currently.
Co-development of the phase 3 and 4 mines would similarly provide
room for site scale at 60mm tonnes of combined resource.
Event Replay Information
A full replay of the Sigma
Lithium 2024 Investor Day is available on the Company's investor
relations webpage. For further information and access to the
webcast replay and supporting materials, please visit
https://ir.sigmalithiumresources.com/
Qualified Persons Disclaim
Other disclosures in this news release of a scientific or
technical nature at the Grota do Cirilo Project have been
reviewed and approved by Iran Zan AusimM (Membership number FAusIMM
(329132)), who is considered, by virtue of his education,
experience and professional association, a Qualified Person under
the terms of NI 43-101. Mr. Zan is not considered independent under
NI 43-101 as he is Sigma Lithium co-Head of Geology and co-General
Manager of Sigma Lithium. Mr. Zan has verified the technical data
disclosed in this news release not related to the current Mineral
Resource estimate disclosed herein.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) is a
leading global lithium producer dedicated to powering the next
generation of electric vehicle batteries with carbon neutral,
socially and environmentally sustainable chemical-grade lithium
concentrate.
Sigma Lithium is one of the world's largest lithium producers.
The Company operates at the forefront of environmental and social
sustainability in the EV battery materials supply chain at its
Grota do Cirilo Operation in Brazil. Here, Sigma produces Quintuple Zero
Green Lithium at its state-of-the-art Greentech lithium
beneficiation plant that delivers net zero carbon lithium, produced
with zero dirty power, zero potable water, zero toxic chemicals and
zero tailings' dams.
Phase 1 of the Company's operations entered commercial
production in the second quarter of 2023. The Company has issued a
Final Investment Decision, formally approving construction to
double capacity to 520,000 tonnes of concentrate through the
addition of a Phase 2 expansion of its Greentech Plant.
Please refer to the Company's National Instrument 43-101
technical report titled "Grota do Cirilo Lithium Project Araçuaí
and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report"
issued March 19, 2024, which was
prepared for Sigma Lithium by Homero
Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, P.Geo, SGS Canada Inc;
Jarrett Quinn, P.Eng., Primero Group
Americas; Porfirio Cabaleiro
Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral; and
William van Breugel, P.Eng (the
"Updated Technical Report"). The Updated Technical Report is filed
on SEDAR and is also available on the Company's website.
For more information about Sigma Lithium, visit
https://www.sigmalithiumresources.com/
Sigma Lithium
LinkedIn: Sigma Lithium
Instagram: @sigmalithium
Twitter: @SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking
information" under applicable Canadian and U.S. securities
legislation, including but not limited to statements relating to
timing and costs related to the general business and operational
outlook of the Company, the environmental footprint of tailings and
positive ecosystem impact relating thereto, donation and upcycling
of tailings, timing and quantities relating to tailings and Green
Lithium, achievements and projections relating to the Zero Tailings
strategy, achievement of ramp-up volumes, production estimates and
the operational status of the Groto do Cirilo Project, and other
forward-looking information. All statements that address future
plans, activities, events, estimates, expectations or developments
that the Company believes, expects or anticipates will or may occur
is forward-looking information, including statements regarding the
potential development of mineral resources and mineral reserves
which may or may not occur. Forward-looking information contained
herein is based on certain assumptions regarding, among other
things: general economic and political conditions; the stable and
supportive legislative, regulatory and community environment in
Brazil; demand for lithium,
including that such demand is supported by growth in the electric
vehicle market; the Company's market position and future financial
and operating performance; the Company's estimates of mineral
resources and mineral reserves, including whether mineral resources
will ever be developed into mineral reserves; and the Company's
ability to operate its mineral projects including that the Company
will not experience any materials or equipment shortages, any
labour or service provider outages or delays or any technical
issues. Although management believes that the assumptions and
expectations reflected in the forward-looking information are
reasonable, there can be no assurance that these assumptions and
expectations will prove to be correct. Forward-looking information
inherently involves and is subject to risks and uncertainties,
including but not limited to that the market prices for lithium may
not remain at current levels; and the market for electric vehicles
and other large format batteries currently has limited market share
and no assurances can be given for the rate at which this market
will develop, if at all, which could affect the success of the
Company and its ability to develop lithium operations. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether because of new information,
future events or otherwise, except as required by law. For more
information on the risks, uncertainties and assumptions that could
cause our actual results to differ from current expectations,
please refer to the current annual information form of the Company
and other public filings available under the Company's profile at
www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
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