SIGMA LITHIUM CEO TO PRESENT AT 2024 BMO MINING CONFERENCE; LOW PRODUCTION COSTS REFLECTED IN GUIDANCE OF CIF CHINA CASH OPERATING COSTS OF $510/t

Rhea-AI Summary

Sigma Lithium CEO Ana Cabral-Gardner to present at 2024 BMO Global Metals, Mining & Critical Minerals Conference. Company issues targeted ongoing run rate cash unit operating cost guidance. Investors invited to participate in presentation. New slide deck released.

Insights

Market Research Analyst

Understanding the cost structure of Sigma Lithium's operations is crucial for assessing the company's competitiveness in the lithium market. The provided cash unit operating costs offer a glimpse into the efficiency and cost-effectiveness of their production process. A cost of $370/tonne at the plant gate is particularly significant as it represents the direct costs associated with producing the lithium concentrate before additional logistics costs are factored in.

Comparing these figures to industry averages can shed light on Sigma Lithium's position in the market. For instance, if the reported costs are significantly lower than those of their competitors, it could indicate a competitive advantage that may lead to higher profit margins and an improved market share. Conversely, if the costs are higher, it could suggest challenges that the company might face in maintaining profitability, especially in a commoditized market where price competition is fierce.

Furthermore, the FOB (Free On Board) Vitoria cost of $420/tonne and the CIF (Cost, Insurance and Freight) China cost of $510/tonne provide insights into the logistical expenses and the final cost to the customer, respectively. These metrics are essential for investors to understand the end-to-end cost efficiency of Sigma Lithium's supply chain.

Financial Analyst

From a financial perspective, the guidance on cash unit operating costs is a valuable indicator for forecasting Sigma Lithium's future margins and profitability. The costs directly impact the gross margin and, consequently, the bottom line. Investors will monitor these costs closely as fluctuations can significantly affect earnings.

It is also important to consider the context of the lithium market. With the growing demand for electric vehicles, the demand for lithium is expected to rise. If Sigma Lithium can maintain or reduce production costs, it may benefit from the expanding market while protecting its margins. However, investors should also be aware of the volatility in commodity prices and how that may impact the cost structure in the long term.

Lastly, the transparency in providing such detailed cost guidance can be seen as a positive sign of management's confidence in their operational efficiency and cost control measures. This level of disclosure can help build investor trust and potentially lead to a more favorable view of the company's stock.

Sustainability Analyst

Given the increasing importance of environmental, social and governance (ESG) factors in investment decisions, Sigma Lithium's emphasis on producing carbon-neutral, socially and environmentally sustainable lithium concentrate is noteworthy. Investors with a focus on sustainable practices may find the company's commitment to ESG principles aligns with their investment criteria.

However, it is essential to critically assess the tangible impact of these initiatives. The company's ability to produce lithium at competitive costs while adhering to stringent sustainability standards could set a benchmark in the industry and potentially attract investment from ESG-focused funds. On the other hand, the costs associated with maintaining such standards should not be overlooked, as they could affect the overall cost competitiveness of the company.

Analyzing the long-term sustainability of Sigma Lithium's operations is essential, especially considering the finite nature of lithium reserves and the environmental impact of mining activities. The company's approach to sustainability could influence its reputation and market position in an industry facing increasing regulatory and consumer scrutiny.

HIGHLIGHTS

• Sigma Lithium CEO Ana Cabral-Gardner to present at the 2024 BMO Global Metals, Mining & Critical Minerals Conference, followed by a fireside Q&A with leading BMO research analyst Joel Jackson
  
  
• Company is issuing pro forma "targeted ongoing run rate" cash unit operating cost guidance as follows:
  
  • $370/tonne at Plant Gate
  • $420/tonne FOB Vitoria
  • $510/tonne CIF China
    
    
• Sigma Lithium would like to invite investors to please kindly contact your BMO representative to participate in the presentation in person or remotely.

SÃO PAULO, Feb. 26, 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, announced today that Company Co-Chairperson and CEO Ana Cabral-Gardner is scheduled to present at the BMO Global Metals, Mining & Critical Minerals Conference on Tuesday, February 27, 2024, at 11:15 am ET.

Ahead of the Conference, the Company has released a new slide deck to its investor relations webpage (here). Within the presentation, the Company is issuing run rate production cost targets given its on going productivity initiatives. This includes an expected cash unit operating cost at the plant gate of $370/tonne, $420/tonne FOB Vitoria and a CIF China unit cost of $510/tonne.

ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML) 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 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 Quintuple Zero Green Lithium from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to produce 270,000 tonnes of Quintuple 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 Quintuple 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 Grota 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

When is Sigma Lithium CEO scheduled to present at the BMO Global Metals, Mining & Critical Minerals Conference?

Sigma Lithium CEO Ana Cabral-Gardner is scheduled to present at the BMO Global Metals, Mining & Critical Minerals Conference on Tuesday, February 27, 2024, at 11:15 am ET.

What are the targeted ongoing run rate cash unit operating cost guidance figures provided by the Company?

The Company issued pro forma cash unit operating cost guidance as follows: $370/tonne at Plant Gate, $420/tonne FOB Vitoria, and $510/tonne CIF China.

How can investors participate in the presentation?

Investors are invited to contact their BMO representative to participate in the presentation either in person or remotely.

What new release has Sigma Lithium made ahead of the BMO Conference?

The Company has released a new slide deck to its investor relations webpage in preparation for the BMO Global Metals, Mining & Critical Minerals Conference.