Sigma Lithium Corporation Common Shares - SGML STOCK NEWS

Sigma Lithium has marked a significant transition from developer to producer with its first successful production of Battery Grade Sustainable Lithium Concentrate, known as Green Lithium. This achievement was made possible through the commissioning of the Dense Medium Separation (DMS) circuit, completing Phase 1 of the Grota do Cirilo project in Brazil. The plant reached 75% of its nameplate capacity and is expected to reach full capacity by July 2023.

The inaugural shipment of around 15,000 tonnes of Green Lithium is anticipated in May 2023, with a commitment to sell 100% of ultra-fine tailings from Phase 1, totaling approximately 300,000 tonnes. The produced Green Lithium aims to meet the premium specifications required by advanced battery manufacturers.

Sigma Lithium has received its environmental operating license for the Grota do Cirilo project in Brazil, allowing for the production of Battery Grade Sustainable Lithium Concentrate. The license was granted on March 31, 2023, with unanimous approval from all NGO members. Initial production is on track to begin in April 2023. The company aims to expand production capacity from 270,000 tonnes per annum (tpa) to 766,000 tpa through its Greentech Plant Expansion. Additionally, Sigma is enhancing its social initiatives, including a microcredit program for female entrepreneurs, a domestic violence prevention program, and climate resilience initiatives for farmers. This project is expected to create around 6,000 indirect jobs, bolstering economic development in the Jequitinhonha Valley.

Sigma Lithium Corporation (NASDAQ: SGML) announced a delay in filing its annual information form, audited consolidated financial statements, and the related management's discussion for 2022, previously due on March 31, 2023. This delay is attributed to additional audit procedures necessary for the transition to commercial production and the implementation of a new ERP system (SAP). The Company aims to complete the filings by the end of April 2023. In response, the Nasdaq issued a notice of non-compliance regarding Listing Rule 5250(c)(1); however, this does not currently affect the trading of its shares. The Company has 60 days from the notice date to submit a compliance plan, with a possible extension until September 27, 2023. Management and insiders are currently restricted from trading until the Annual Filings are submitted.

Sigma Lithium announced the successful commissioning of the Greentech Plant's crushing circuit, producing continuous batches of crushed lithium material. The project remains on schedule, with commercial production expected to begin in April 2023. The company is also advancing engineering and capital expenditure costing for the plant expansion, aiming to boost production capacity from 270,000 tpa to 766,000 tpa of battery-grade sustainable lithium. This development positions Sigma Lithium favorably in the electric vehicle market while maintaining a focus on environmental sustainability.

Sigma Lithium has initiated commissioning of its Dense Medium Separation module at the Greentech Plant one month ahead of schedule and within budget. The crushing module is also ahead of schedule, with first ore expected to be crushed by mid-February. Sigma anticipates starting commercial production of battery-grade lithium concentrate in April 2023, generating cash flow in Q2 2023. Leadership changes include Rodrigo Menck as Chief Financial Officer, with Ana Cabral-Gardner continuing as CEO. Brian Talbot remains COO, and Gary Litwack has been appointed Non-Executive Co-Chair.

Sigma Lithium has filed a Production Expansion Technical Report validating the preliminary feasibility study announced on December 4, 2022. The report indicates a substantial increase in integrated production of Battery Grade Sustainable Lithium Concentrate from 270,000 tpa to 768,000 tpa within two years at the Grota do Cirilo Project. The after-tax NPV is assessed at US$ 15.3 billion with a total capex of US$ 155 million. Mineral reserves have increased approximately 60% to 54.8 Mt at a grade of 1.44% Li2O. The economic analysis projects gross revenue averaging US$ 2.5 billion during the project life.

Sigma Lithium has successfully commissioned the first module of its Phase 1 Greentech Plant, meeting its scheduled timeline and budget constraints. The commissioning of the crushing circuit began last week and is anticipated to conclude by February 2023. The dense media separation circuit is set to start commissioning in February and finish by April 2023, with commercial production expected shortly thereafter. Moreover, Sigma Lithium anticipates generating free cash flow by Q2 2023. The company is aiming to increase its mineral resources significantly and solidify its position as a leading supplier in the lithium market.