SIGMA LITHIUM ANNOUNCES LOADING 22,000t SHIPMENT WITH 85% PREPAYMENT AT PREMIUM PRICES

Rhea-AI Summary

Sigma Lithium announces loading 22,000t shipment with 85% prepayment at premium prices. The Company achieved a fixed price of US$ 1,333/t, equivalent to US$ 1,160/t (net of VAT), representing a significant increase over previous prices. 85% of the shipment's value has been prepaid, showcasing strong market demand and confidence in Sigma Lithium's high-purity lithium concentrate.

Positive

• Sigma Lithium achieved a premium fixed price of US$ 1,333/t for its eighth shipment, representing a substantial increase over previous prices.
• 85% of the eighth shipment's value has been prepaid, indicating strong market demand and confidence in Sigma Lithium's product quality.
• The final price net of VAT is equivalent to 8.75% of the LME Lithium Hydroxide CIF market price, showcasing Sigma Lithium's competitive pricing strategy and market positioning.
• Sigma Lithium continues to focus on maximizing price discovery and value creation for its upcoming production, demonstrating a proactive commercial strategy to enhance shareholder value.
• The Company's Greentech Plant has been performing well, showcasing operational excellence and efficiency in production execution.
• Early indications suggest better economics for Sigma Lithium's upcoming May shipment, reflecting positive market reception and potential for continued growth.

Negative

• None.

Insights

Market Research Analyst

In the lithium industry, pricing strategy and shipment size are indicative of demand dynamics and supply capabilities. Sigma Lithium's announcement of a 22,000-tonne shipment at premium prices is a significant event in the context of the electric vehicle (EV) battery supply chain. The price Sigma Lithium obtained—US$ 1,160/t net of VAT—is considerably above industry average, reflecting a robust market appetite for high-purity lithium concentrate, a critical input for battery manufacturers.

The company's auction-price discovery process, leading to an 85% prepayment, suggests strong buyer confidence and a healthy cash flow outlook for Sigma Lithium. This could potentially attract interest from investors focusing on green technology and sustainable resources. Furthermore, the reference to 8.75% of the LME Lithium Hydroxide CIF market price as a benchmark for their premium pricing strategy offers valuable insight into their market positioning and pricing power.

Financial Analyst

An 85% prepayment on the shipment indicates not only a strong client trust in Sigma Lithium but also provides the company with a considerable amount of working capital, which is advantageous for sustaining operations and funding future growth investments. The implication for stakeholders is that, with upfront cash, the company may reduce debt or reinvest in expanding its production capacity, both of which could lead to a favorable reassessment of the company's financial health and longevity.

Additionally, Sigma Lithium's ability to secure a fixed price that is substantially higher than previous premiums may lead to positive revisions in revenue forecasts and potentially enhance the company's stock valuation. However, investors should also keep an eye on lithium market trends, as fluctuations in prices can have a direct impact on Sigma Lithium's future revenue streams.

Sustainability Analyst

The branding of the shipped lithium as 'Quintuple Zero Green' underscores the increasing importance of sustainable and environmentally friendly practices in mineral extraction and production. This is particularly relevant to the EV market, which values sustainability not only in its products but throughout the entire supply chain. Sigma Lithium's commitment to carbon-neutral and socially responsible operations aligns with global sustainability trends and could enhance its corporate image and attract environmentally-conscious investors.

Long-term, Sigma Lithium's focus on sustainability could provide it with a competitive advantage as regulations tighten and consumer preferences shift further towards green products. This strategic positioning may lead to sustained demand and potentially higher market share.

HIGHLIGHTS

• Sigma Lithium announces that it has commenced loading its 8th shipment, totaling 22,000 tonnes of its Quintuple Zero Green, high purity and coarse lithium concentrate, at the Port of Vitoria.
• The Company achieved a premium fixed price of US$ 1,333/t (13% VAT included), equivalent to US$ 1,160/t (net of VAT) through a negotiated, fixed, "auction-price discovery" process.
• Sigma Lithium will continue to adapt its commercial strategy to maximize price discovery and value creation for its April 2024 production, to be shipped in early May.

SÃO PAULO, April 15, 2024 /PRNewswire/ -- 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 carbon neutral, socially and environmentally sustainable lithium concentrate, announces it has commenced the on-time loading of its eighth shipment of quintuple zero green high-purity coarse lithium concentrate ("Quintuple Zero High-Purity Lithium") , totaling 22,000 tonnes, at the Port of Vitoria.

The achieved price is final and non-provisional and represents a meaningful increase over the previous premium prices achieved. As a reference, the final price net of VAT is equivalent to 8.75% of the LME Lithium Hydroxide CIF market price, as previously disclosed in a news release on March 27, 2024. 85% of the eighth shipment's value has also been prepaid.

Keith Prentice, Co-General Manager commented: "The site team has been executing at a high level, with the Greentech Plant delivering at the predictable cadence of an established producer."

Catarina Noci, Commercial Director commented: "We believe the market is now just starting to attribute value to Sigma's superior product qualities. We can build on the traction gained in April, with early indications pointing to better economics for our upcoming May shipment."

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 operates at the forefront of environmental and social sustainability in the EV battery materials supply chain and is currently producing Quintuple Zero Green Lithium concentrate from its Grota do Cirilo Project in Brazil. Phase 1 of the project entered commercial production in 2Q23 and has an annual capacity of 270,000 tonnes of concentrate (36,700 LCE annually). The Company has issued a Final Investment Decision formally approving plans to nearly double capacity to 520,000 tonnes of concentrate through the addition of a Phase 2 concentrate mine and associated mine. The project produces lithium concentrate at 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 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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SOURCE Sigma Lithium

FAQ

What is the fixed price achieved by Sigma Lithium for its eighth shipment?

Sigma Lithium achieved a fixed price of US$ 1,333/t for its eighth shipment.

How much of the eighth shipment's value has been prepaid?

85% of the eighth shipment's value has been prepaid by Sigma Lithium.

What is the equivalent final price net of VAT for Sigma Lithium's eighth shipment?

The final price net of VAT is equivalent to US$ 1,160/t for Sigma Lithium's eighth shipment.

What percentage of the LME Lithium Hydroxide CIF market price is the final price equivalent to?

The final price net of VAT is equivalent to 8.75% of the LME Lithium Hydroxide CIF market price.

How is Sigma Lithium adapting its commercial strategy for its April 2024 production?

Sigma Lithium is focusing on maximizing price discovery and value creation for its April 2024 production.

What positive feedback was provided by Keith Prentice, Co-General Manager?

Keith Prentice highlighted the high-level execution by the site team and the Greentech Plant's operational efficiency.

What market outlook was shared by Catarina Noci, Commercial Director?

Catarina Noci mentioned that the market is starting to recognize Sigma's superior product qualities, with early indications pointing to better economics for the upcoming May shipment.