OPERATIONAL UPDATE
- Sigma Lithium reaches second shipment targets on
schedule:
-
- Completes trucking of 15,000 tonnes of Triple Zero Green
Lithium and 30,000 tonnes of Triple Zero Green By-Products ("Green
By-Products") to Vitoria Port in Brazil.
- Reaffirms outlook for production of 130,000 tonnes of
chemical grade Triple Zero Green Lithium by December 2023.
- Continues to accelerate towards annualized production
capacity of 270,000 tonnes of Triple Zero Green Lithium (nameplate
production capacity); on track to achieve by the end of Q3
2023.
- Delivered first shipment consisting of 15,000 tonnes of
Triple Zero Green Lithium and 16,500 tonnes of Green By-Products on
July 27, 2023, at a price of
approximately US$3,500 per tonne and
US$350 per tonne, respectively,
achieving net zero carbon 27 years ahead of the 2050 target set by
the global metals and
mining industry.
- Upcoming shipments include:
-
- 15,000 tonnes of Triple Zero Green Lithium planned
imminently.
- 30,000 tonnes of Triple Zero Green By-Products planned for
mid-September.
- 18,000 tonnes of Triple Zero Green Lithium planned for end
of September.
- Advancing plans to triple production capacity ("Production
Expansion"); accelerating detailed engineering to quote capital
expenditures at FEL3 level.
-
- Formal investment decision and kick-off of earthworks and
ordering of long-lead items expected to occur by the end of
September.
- The Company is engaged with Brazilian and global development
financing institutions to fund the Production Expansion.
- Plans to publish an updated resource estimate, including the
areas at Phase 4, in the coming weeks.
- A video highlighting the company's successful production
ramp-up can be viewed at the following link: Production and
Shipment Video on Vimeo
FINANCIAL UPDATE
- Successfully closed the first Green ACE Credit Line (Export
Prepayment) with Santander Brazil
for R$50 million (US$10 million).
-
- Demonstrates the Company's operational and credit strength
and ESG reputation in Brazil,
where it is regarded as a "new operational paradigm" for the entire
metals and mining industry.
- Filed quarterly financial statements and management
discussion and analysis ("MD&A") for the three-month period
ended June 30, 2023, ending the
second quarter with C$45.6 million in
cash and cash equivalents.
- Received US$31.8 million
pre-payment in Q2 2023 for the first shipment of Triple Zero Green
Lithium and Green By-Products.
- Expects to begin recognizing revenue from the sale of Triple
Zero Green Lithium and Green By-Products in Q3 2023; expects to
report positive operating profit for Q3 2023.
- Capital expenditures for Phase 1 construction are in line
with Feasibility Study estimates, with $126.7 million disbursed as of June 30, 2023, and $8.1
million remaining, demonstrating Sigma Lithium's
unparalleled ability to successfully complete the construction and
commissioning of the Greentech Plant on time and on
budget.
INVESTOR VIDEO CONFERENCE
CALL
September 5, 2023, at
10:00 AM (ET)
Registration Link for Zoom video call below:
https://us06web.zoom.us/j/82920558573?pwd=cWcrejA2MDBDQWtFUnpyVlc4L1dEdz09
Zoom Meeting ID: 82920558573
VANCOUVER, BC, Sept. 1,
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 it has successfully reached its second shipment
target and closed a new US$10 million
credit facility with Santander. The Company reaffirmed its
full year production guidance, remains on track to achieve
nameplate production capacity by the end of the third quarter 2023
as previously announced, and reported second quarter 2023
results.
The Company also announced the filing of its unaudited
consolidated financial statements and management discussion and
analysis ("MD&A") for the three-month period ended June 30, 2023 (collectively, the "Quarterly
Filings").
The Quarterly Filings are available on SEDAR+
(www.sedarplus.ca), EDGAR (www.sec.gov) and the Company's corporate
website.
Operational and Financial Update
Ramp-up of Phase 1 production continues to advance on schedule
and the Company remains on track to achieve 2023 production
guidance of 130,000 tonnes of Triple Zero Green Lithium, with
consistent annualized production of 270,000 tonnes of Triple Zero
Green Lithium expected to be achieved by the end of Q3 2023.
As previously reported, Sigma Lithium successfully delivered its
first shipment consisting of 15,000 tonnes of Triple Zero Green
Lithium and 16,500 tonnes of Green By-Products on July 27, 2023, at a price of approximately
US$3,500 per tonne and US$350 per tonne, respectively. Sigma Lithium
received a $31.8 million pre-payment
in Q2 2023 in connection with this shipment. The company's second
shipment of 15,000 tonnes is at Vitoria Port awaiting
departure.
As production at the Greentech Plant continues to accelerate,
Sigma Lithium expects to execute upcoming shipments including
15,000 tonnes of Triple Zero Green Lithium in early September,
30,000 tonnes of Triple Zero Green By-Products by mid-September,
and 18,000 tonnes of Triple Zero Green Lithium by the end of
September.
The Company expects to begin recognizing revenue from the sale
of Triple Zero Green Lithium and Green By-Products in Q3 2023 and
expects to report positive operating profit for Q3 2023, as
revenues from the sale of its products are expected to exceed
operating costs.
Sigma Lithium also successfully closed the first Green ACE
Credit Line with Santander Brazil
for R$50 million (US$10 million), demonstrating the Company's
operational and credit strength and ESG reputation in Brazil, where it is regarded as a "new
operational paradigm" for the entire metals and mining
industry.
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/
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.sedarplus.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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SOURCE Sigma Lithium