Sigma Lithium on track to produce 130,000 tonnes of concentrate by year-end
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) has made its second shipment from its Grota do Cirilo mine in Brazil, after trucking 15,000 tonnes of battery-grade spodumene concentrate and 30,000 tonnes of byproducts to Vitoria Port in Brazil. The company reached first production at its processing plant in April.
This follows the first shipment made on July 27, consisting of 15,000 tonnes of concentrate and 16,500 tonnes of byproducts, at a price of around US$3,500 per tonne and US$350 per tonne, respectively.
These shipments were produced at Sigma’s “Greentech” plant at Grota do Cirilo, the first lithium mine without a tailings dam. The company sells its tailings, which contain 1.3% lithium oxide, to Yahua International Investment and Development for further processing.
With the completion of two shipments, Sigma says it remains on track to achieve its 2023 lithium production guidance of 130,000 tonnes, with consistent production of an annualized 270,000 tonnes expected by the end of the third quarter.
Sigma expects to ship another 15,000 tonnes of spodumene concentrate in early September, and 30,000 tonnes of byproducts by mid-September.
The company also expects to turn an operating profit in this year’s third quarter as revenues from the sale of its products are expected to exceed operating costs.
Looking further ahead, Sigma is advancing plans to triple production capacity and expects to have Grota do Cirilo’s second and third phases reach full production capacity in 2024, which would position the company as one of the world’s largest lithium producers.
Meanwhile, Sigma has also successfully closed the first Green ACE Credit Line with Santander Brazil for R$50 million (US$10 million). This, according to the company, demonstrates its operational and credit strength and ESG reputation in Brazil.
Shares of Sigma Lithium shot up 4.9% by 12:30 p.m. in Toronto, giving the lithium producer a market capitalization of $4.8 billion.
