- Sigma Lithium achieved an increased premium fixed price
of US$ 1,333/t (13% VAT
included), equivalent to US$
1,160/t (net of VAT) for its 8th shipment of 22,000
tonnes for delivery within 2 weeks.
- Price discovery was driven through closed private bidding,
aiming to maximize the value of its commercial shipment strategy
with Glencore.
- This 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
SÃO
PAULO, March 27,
2024 /CNW/ -- 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 and sustainable, chemical grade
lithium concentrate with granulated-particles ("Quintuple Zero
Green Chemical Grade Coarse Lithium" or "Product"), is pleased to
announce it achieved an increased premium final price of
US$ 1,333/t (13% VAT included),
equivalent to US$ 1,160/t (net of
VAT) for its 8th shipment of 22,000 tonnes currently
being delivered to its EXW warehouse at the Port of Vitoria in
Brazil.
This price is final and
non-provisional and represents a meaningful increase over
the previous premium prices achieved by the Company.
- As a reference, the final price net of VAT is
equivalent to 8.75% of the LME Lithium Hydroxide
CIF/Fastmarkets CJK price.
- Price discovery was driven through closed private bidding,
aiming to maximize the value of its commercial shipment strategy.
Sigma Lithium will continue to adapt its marketing strategy to
maximize value capture.
Included in the agreement is a cash prepayment
clause, with 85% of the shipment's value collected by
loading.
- The shipment is part of a commercial distribution and marketing
agreement with Glencore that aims to build a low carbon,
environmentally and socially sustainable global lithium supply
chain for electric vehicles.
This milestone achievement represents a
significant improvement in commercial terms for Sigma Lithium,
consolidating our leadership in the industry as a large-scale
producer of Quintuple Zero Green Chemical Grade Coarse Lithium.
The premium achieved demonstrates the product's
superior quality (chemically and physically quantifiable), as
follows:
- High-purity: low alkalines and low iron oxide enable improved
performance of refineries during transformation of the material
into high-purity battery grade chemicals certified by leading
battery producers.
- Coarse particles over 5.5mm: improve efficiency and performance
for refiners during calcination.
Sigma Lithium Commercial Director, Catarina Noci, notes: "The Company
continues to field inbound interest at a feverish pace for our next
shipments. We were on the ground in China over the last month with Glencore where
it became clear to us that our Quintuple Zero Green Chemical
Grade Coarse Lithium concentrate gained significant market share,
delivering measurable savings to our customers' refineries as a
result of our Products' superior physical and chemical properties.
Our Product becomes increasingly valuable to our customers when
markets are soft, where non-integrated refiners and tollers alike
are experiencing tighter operating margins. Sigma Lithium views the
warm welcome, incredible demand and favorable commercial terms
extended to us, as a reflection of the customers having
experienced, over the last 7 months, the remarkable performance and
cost savings that Sigma Lithium's Product brings to their
refineries. Therefore, we were able to monetize these tangible
costs savings provided to our customers by the Product into a "high
quality premium".
Company CEO, Ana
Cabral-Gardner notes, "The Company is now fully
established as a leading producer, as a result of consistently
delivering large scale shipments of a high-quality Quintuple
Zero Green Chemical Grade Coarse Lithium over the last 9
months. Therefore, we entered negotiation rounds for our
8th shipment with significant commercial leverage. The
increased premiumization is attributable to the superior
performance of our Product for our
refining clients who were able to ascertain its efficiency
gains and cost savings. Additionally, as a "free
bonus" we deliver the only Quintuple Zero Green Lithium in the
industry, without receiving a green premium.
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 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 is
currently evaluating a decision to expand production via a Phase 2
concentrate line and associated mine which would add another
250,000 tonnes of annual Quintuple Zero Green Lithium capacity. 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/
LinkedIn: Sigma Lithium
Instagram: @sigmalithium
Twitter: @SigmaLithium
The technical and scientific information in this news release
has been reviewed and approved by Iran Zan MAIG (Membership
number 7566), who is considered, by virtue of his education,
experience and professional association, a Qualified Person
under the terms of NI 43-101.
Mr. Zan is not considered independent under NI 43-101 as he is
Sigma Lithium co-Head of Geology and co-General Manager of
Sigma Lithium. Mr. Zan has verified the technical data disclosed in
this news release.
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
