NET ZERO
- Sigma Lithium achieves operational net zero (carbon
neutrality) for its first shipment of battery grade, high purity
sustainable lithium by offsetting the remaining "hard to abate"
carbon emitted during its production process, both at its Grota do
Cirilo mine and at its Greentech Lithium Processing Plant
("Greentech Plant")
-
- Triple zero product: net zero carbon, zero tailings, and
zero hazardous chemicals
- The Company effectively lowered its carbon footprint with a
series of pioneering initiatives, paving the way forward for the
metals & mining sector, including:
-
- Zero tailings: Eliminated all by-products through
sales or upcycling to pave roads
- Zero chemicals: Utilizes Dense Medium Separation
("DMS") at the Greentech plant, which does not utilize hazardous
chemicals
- Water efficiency: Utilizes 100% sewage water for its
plant, fully recirculated
- Renewable energy: Utilizes 100% renewable energy for
its Greentech Plant via "behind the meter" supply
agreements
- Biodiesel: Utilizes biodiesel fuel in some of its
trucking fleet, with plans to increase up to 50% by 2025
- Explosives / ANFO: Decreased explosives load, with
computerized load simulation strategies
FIRST SHIPMENT
- Sigma Lithium initiated its first shipment of 30,000 tonnes
to be completed July 27:
-
- 15,000 tonnes of battery-grade, carbon neutral, zero
chemicals and zero tailings sustainable lithium ("Triple Zero Green
Lithium") and
- 15,000 tonnes of high-purity, zero chemicals, approximately
1.3% lithium oxide hypofine by-products ("Triple Zero Green
By-Products")
- Plans next shipment by the end of August 2023: Ramp-up of Phase 1 production
continues to advance well, currently operating at approximately 75%
of nameplate throughput capacity
-
- Achieved maximum DMS recoveries of 60% and on track to reach
design recovery of 65%
- Obtained premium pricing calculated at the benchmark of 9%
of lithium hydroxide price (average China, Japan,
South Korea) for both Triple Zero
Green Lithium and Triple Zero Green By-Products:
-
- Triple Zero Green Lithium: FOB Vitoria Brazil – ~US$3,500 per tonne (adjusted one month post
shipment)
- Triple Zero Green By-Products: FOB Vitoria Brazil –
~US$350 per tonne (adjusted two
months post shipment)
- Sale of the Triple Zero Green By-Products is expected to
cover the majority of operating cash costs, estimated in the
Company's Updated Technical Report to be approximately US$289/t FOB site gate
LISTING ON B3 (BRAZIL STOCK
EXCHANGE)
- On July 24th, 2023, Sigma
Lithium began trading its Brazilian Depositary Receipts ("BDR"s) on
B3, the Brazilian Stock Exchange. This listing was an initiative of
the B3 exchange itself, in an effort to make the stock more
accessible to Brazilian retail and institutional
investors
-
- XP, Morgan Stanley and Credit Suisse will act as market
makers for Sigma Lithium BDRs
- The Company's B3 ticker symbol is BVMF: S2GM34
RESULTS OF ANNUAL SHAREHOLDER MEETING (AGM)
- Approved adjustments to the equity incentive plan of the
Company (the "2023 Equity Incentive Plan"):
-
- Removal of the automatic accelerated vesting of the
restricted share units in the event of a change of control
transaction
- Substantially the same as the equity incentive plan last
approved by the Company's shareholders in 2022: remains as
18,120,878 shares
- Elected the directors of the Company for the ensuing year,
to hold office until the next annual meeting of
shareholders:
-
- Alex Rodrigues, Ana Cabral, Bechara
Azar, Cesar Chicayban, Jose Lucas
Mello, Marcelo Paiva were
elected
VANCOUVER, BC, July 26,
2023 /CNW/ -- SIGMA Lithium Corporation
("Sigma Lithium" or the "Company") (NASDAQ: SGML,
TSXV: SGML), a leading global lithium producer dedicated
to powering the next generation of electric vehicles with
environmentally sustainable and carbon neutral battery-grade
lithium, announced that it has successfully achieved net zero
carbon emissions with the successful execution of its first
shipment of Triple Zero Green Lithium and Triple Zero Green
By-Products.
Sigma Lithium has begun generating revenue from Phase 1 and
expects to produce approximately 130,000 tonnes of Triple Zero
Green Lithium in calendar year 2023 as it ramps up to full-scale
Phase 1 production. The Company expects to reach Phase 2 & 3
full production capacity in 2024, positioning it as one of the
world's largest lithium producers.
Ramp-up of Phase 1 production continues to advance, currently
operating at approximately 75% of nameplate throughput capacity.
Importantly, Sigma Lithium has achieved maximum DMS recoveries of
60% and is tracking towards design recoveries of 65% while also
achieving expected high-quality technical specifications and purity
for the Company's Triple Zero Green Lithium, even achieving recent
production of up to 6.4% Li2O lithium concentrate.
Maiden Shipment of Triple Zero Green Lithium and
By-Products
The maiden shipment consists of 15,000 tonnes of Triple Zero
Green Lithium and 15,000 tonnes of Triple Zero Green By-Products
produced from its Grota do Cirilo project in Brazil. This first shipment was produced at
Sigma Lithium's state-of-the-art Greentech Plant, the first lithium
project in the world without a tailings dam. With 100% dry-stacked
tailings and the absence of hazardous chemical products for
processing lithium, the Company is preventing water and soil
contamination and contributing to the preservation of rivers and
forests in the region.
Further, due to the low carbon content of Sigma Lithium's
products, the Company's carbon footprint after carbon abatement
initiatives and implementation of environmentally sustainable
production methods was offset with 59,000 tonnes of carbon credits
purchased from Carbonext (which are verified through Verra Verified
Carbon Standard) resulting in the Company reaching net zero this
year.
"We are thrilled with our partnership with Sigma
Lithium," said Carbonext CEO, Janaína Dallan. "Ana Cabral is notoriously committed to the
Company's environmental and socioeconomic agenda and we would like
to congratulate Sigma for engaging in the fight against climate
change with Carbonext. Projects like the ones Sigma is supporting
protect more than 2 million hectares in the Amazon biome with
support for constant local and satellite monitoring to ensure high
integrity and quality of forest preservation projects and
socio-environmental benefits to local communities."
As a result, Sigma Lithium is able to deliver the world's first
Triple Zero shipment of battery-grade lithium concentrate with zero
hazardous chemicals, zero tailings and net zero carbon.
"We were founded with the mission to produce environmentally
sustainable lithium with the lowest possible greenhouse gas
emissions and the elimination of hazardous tailings
dams," said Ana Cabral,
Sigma Lithium CEO and Co-Chairperson. "With the successful
execution of our first shipment, we celebrate the accomplishment of
our mission: we were able to reach our net zero target well in
advance of our estimated timeframe, and ahead of the overall metals
and mining sector. More importantly, as we reached our climate
action goals, we are well on the way to lift the communities around
us with initiatives such as microcredit and irrigation for
subsistence farmers."
"At Sigma Lithium, we believe that businesses have a critical
role to play in combating climate change, particularly in the mass
transition to electric vehicles. Our state-of-the-art
Greentech Plant, which uses 100% renewable energy, 100% recycled
water and 100% dry-stacked tailings, is a model of sustainability
to fully support the electric vehicle industry in reducing its
environmental footprint. By successfully achieving net zero
carbon production, we have proven that our industry can effectively
embrace sustainable practices and pave the way towards a greener
future," she added.
Premium Product with Premium Pricing
This shipment is the first installment of the previously
announced Green By-Products Environmental Offtake agreement signed
on May 3, 2023, with Yahua
International Investment and Development Co., Ltd. ("Yahua") for
the sale of up to 300,000 tonnes of Green By-Products per year for
up to three years. In addition, the Company concurrently entered
into a spot sale agreement with Yahua for the sale of 15,000 tonnes
of Triple Zero Green Lithium which is also included in the first
shipment.
Due to the high-purity nature of its Triple Zero Green Lithium
and By-Products, Sigma Lithium was able to achieve premium pricing,
calculated using 9% of the average lithium hydroxide price for
China, Japan and South
Korea. The resulting prices for the maiden shipment, FOB
Vitoria Brazil, are ~US$3,500/t of
concentrate (adjusted one month post shipment) and ~US$350/t of by-product (adjusted two months post
shipment).
Of note, the per tonne price of Triple Zero Green By-Products
obtained by Sigma Lithium more than offsets the FOB site gate cash
cost estimate of US$289 per tonne of
Triple Zero Green Lithium estimated in the Company's Updated
Technical Report which was issued June 12,
2023. 100% of the Triple Zero Green By-Products are expected
to be upcycled into battery grade lithium concentrate for use in
electric vehicle battery production.
Increasing Liquidity via Brazilian Depository
Receipts
On Monday July 24th, Sigma Lithium
began trading BDRs on B3, the Brazilian Stock Exchange. A BDR
is a security issued on the B3 that represents a share of a
publicly-traded company incorporated and listed abroad. This
listing was the initiative of the exchange itself, due to
investment demand in the Company and in an effort to make the stock
more accessible to Brazilian retail and institutional investors.
Banco B3 (the exchange's bank) will act as the depositary
institution and has set the parity of the instrument to 3 BDRs for
1 share of Sigma Lithium listed on the Nasdaq exchange. XP, Morgan
Stanley and Credit Suisse will act as market makers for the
company's BDRs.
Annual General Meeting Election of Directors
The following individuals were elected as directors of the
Company to hold office until the next annual meeting of
shareholders of the Company or until their successors are elected
or appointed:
Name of Nominee
|
Votes
For
|
Votes Against
|
Shares
|
Percent
|
Shares
|
Percent
|
Ana Cristina Cabral(1)
|
43,227,062
|
95.2 %
|
2,179,207
|
4.8 %
|
Bechara S.
Azar
|
90,748,850
|
97.8 %
|
2,058,137
|
2.2 %
|
Cesar
Chicayban
|
90,723,119
|
97.8 %
|
2,083,867
|
2.3 %
|
Marcelo
Paiva
|
81,137,542
|
87.4 %
|
11,669,445
|
12.6 %
|
Jose Ferreira de
Melo
|
90,740,543
|
97.8 %
|
2,066,445
|
2.2 %
|
Alexandre
Rodrigues
|
90,530,848
|
97.6 %
|
2,276,140
|
2.5 %
|
(1) A10
Investimentos Fundo de Investimento de Ações – Investimento No
Exterior, which comprises a total of 47,400,718 Common Shares,
abstained from the voting in respect of Ana Cabral and Calvyn
Gardner.
|
Due to the results of the votes received at the meeting,
Calvyn Gardner has not been
re-elected as director. A10 Investimentos Fundo de Investimento de
Ações – Investimentos No Exterior, which holds a total of
47,400,718 Common Shares, abstained from the voting in respect of
two of its investors, Calvyn Gardner
and Ana Cabral.
Name of Nominee
|
Votes
For
|
Votes Against
|
Shares
|
Percent
|
Shares
|
Percent
|
Calvyn
Gardner
|
14,264,521
|
31.4 %
|
31,141,749
|
68.8 %
|
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
environmentally sustainable and high-purity lithium.
Sigma Lithium has been at the forefront of environmental and
social sustainability in the EV battery materials supply chain for
six years and it is currently producing Triple Zero Green Lithium
from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to
produce 270,000 tonnes of Triple Zero Green Lithium annually
(36,700 LCE annually). If it is determined to proceed after
completion of an ongoing feasibility study, Phase 2 & 3 of the
project are expected to increase production to 766,000 tonnes
annually (or 104,200 LCE annually). The project produces Triple
Zero Green Lithium in its state-of-the-art Greentech lithium plant
that uses 100% renewable energy, 100% recycled water and 100%
dry-stacked tailings.
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 June 12, 2023, 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
Noel O'Brien, B.E., MBA, F AusIMM
(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/
ABOUT CARBONEXT
Carbonext is the largest Brazilian
generator of carbon credits from forest protection. The company
currently develops Reducing Emissions, Deforestation and Forest
Degradation (REDD+) projects in the states of Acre, Amazonas,
Mato Grosso and Pará, and monitors
5.9 million hectares of native forest area. Each project is made up
of one or more private lands that, after Carbonext's action, have a
financial alternative that has been reversing the deforestation of
areas for uses such as livestock or agriculture.
The carbon credits generated by Carbonext and its partners are
of high quality and integrity. They are certified by VERRA, an
international body specializing in this type of service, and traded
on the voluntary market. Around 70% of the amount raised from the
sale of carbon credits stays in the forest, with the owners of the
protected area and with the communities assisted by the
socio-economic actions.
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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