SIGMA LITHIUM REACHES SECOND SHIPMENT TARGET OF 15,000 TONNES OF TRIPLE ZERO GREEN LITHIUM AT PORT; CLOSES EXPORT REVOLVER CREDIT LINE WITH SANTANDER FOR US$10M; REPORTS SECOND QUARTER 2023 RESULTS
- Sigma Lithium achieves net zero carbon 27 years ahead of industry target by delivering first shipment of Triple Zero Green Lithium and Green By-Products.
- Reaffirms production outlook of 130,000 tonnes of Triple Zero Green Lithium by December 2023.
- On track to achieve annualized production capacity of 270,000 tonnes of Triple Zero Green Lithium by the end of Q3 2023.
- Successfully closed $10 million credit facility with Santander Brazil, demonstrating operational and credit strength.
- Expects to begin recognizing revenue from sales of Triple Zero Green Lithium and Green By-Products in Q3 2023, with positive operating profit expected.
- Continues to advance Production Expansion plans, with formal investment decision and kick-off of earthworks and ordering of long-lead items expected by the end of September.
- Plans to publish updated resource estimate, including Phase 4 areas, in the coming weeks.
- None.
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 per tonne and$3,500 US per tonne, respectively, achieving net zero carbon 27 years ahead of the 2050 target set by the global metals and$350
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 in cash and cash equivalents.$45.6 million - Received
US pre-payment in Q2 2023 for the first shipment of Triple Zero Green Lithium and Green By-Products.$31.8 million - 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
disbursed as of June 30, 2023, and$126.7 million remaining, demonstrating Sigma Lithium's unparalleled ability to successfully complete the construction and commissioning of the Greentech Plant on time and on budget.$8.1 million
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
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
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
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
Please refer to the Company's National Instrument 43-101 technical report titled "Grota do Cirilo Lithium Project Araçuaí and Itinga Regions,
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
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sigma-lithium-reaches-second-shipment-target-of-15-000-tonnes-of-triple-zero-green-lithium-at-port-closes-export-revolver-credit-line-with-santander-for-us10m-reports-second-quarter-2023-results-301915965.html
SOURCE Sigma Lithium
FAQ
What are Sigma Lithium's second shipment targets?
What is Sigma Lithium's production outlook?
What is Sigma Lithium's achievement in terms of carbon neutrality?
What is the financial update from Sigma Lithium?
What are Sigma Lithium's plans for Production Expansion?