Sigma Lithium Corp 6-K, filed May 3, 2022
Sigma Lithium Corp (SGML)
About this 6-K
Sigma Lithium Corp filed this 6-K on May 3, 2022.
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2022
Commission File Number: 001-40786
Sigma Lithium Corporation
(Translation of registrant's name into English)
2200 HSBC Building
885 West Georgia Street
Vancouver, British Columbia
V6C
3E8
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
EXHIBIT INDEX
| Exhibit | Description |
| 99.1 | Press release dated April 04, 2022 |
| 99.2 | Press release dated April 06, 2022 |
| 99.3 | Press release dated April 11, 2022 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Sigma Lithium Corporation | ||
| (Registrant) | ||
| Date: May 03, 2022 | /s/ Ana Cristina Cabral Gardner | |
| Ana Cristina Cabral Gardner | ||
| Co-Chief Executive Officer |
Exhibit 99.1
SIGMA LITHIUM
ADVANCES TOWARDS NEAR TERM PRODUCTION
AND COMPLETES CONSTRUCTION OF 100% OF THE PLANT
FOUNDATION EARTHWORKS ON SCHEDULE;
REPORTS 2021 ANNUAL RESULTS FROM A PIVOTAL YEAR
HIGHLIGHTS OF A TRANSFORMATIVE 2021
| · | Concluded construction of 100% of the foundation earthworks for the Phase 1 Production Plant (“Phase 1 Plant”), remaining on schedule and on budget |
| o | Phase 1 Plant commissioning is forecasted to commence at the end of 2022 |
| o | Construction moves forward to civil works to be followed by plant mechanical structure in June 2022 |
| o | Currently employing 300 people, planned to increase to 500 people |
| · | Sigma Lithium is fully equity-funded for the construction of the Phase 1 Plant |
| o | Completed the equity financing round, raising C$137 mm in December 2021 (including an investment by funds managed by BlackRock for C$64 mm) |
| o | Ordered certain long lead items, to minimize potential supply-chain related delays |
| · | The Company is on track to deliver near term production of Battery-Grade Sustainable Lithium, with plans to significantly increase scale: |
| o | Phase 1: Initiating production: up to 230,000 tpa of Battery-Grade Sustainable Lithium within less than 12 months |
| o | Phase 2: Increasing production: combining Phase 1 + Phase 2 to potentially double annual production to 460,000 tpa of Battery-Grade Sustainable Lithium |
| o | Phase 3: Unlocking further growth: completing economic assessment of additional production capacity for 2024 based on current 52Mt mineral resource base plus an additional 30,000 m drilling campaign on adjacent deposits |
| · | Agreed on a direct commercial arrangement with LG Energy Solution, the world´s largest advanced battery manufacturer: a binding offtake term sheet linked to lithium hydroxide prices |
| o | Offtake on a take or pay basis for up to 100,000 tpa |
| · | Sigma Lithium continued to be recognized for its leadership role in global sustainability on lithium materials and mining: |
| o | Sigma Lithium will be the first lithium company to dry stack 100% of its tailings, avoiding environmentally controversial tailing dams |
| o | Presented its case study of circular economy with dry stacked tailings at COP-26 in Glasgow, the Investment COP |
| o | Participated in the United Nations Dialogue on Energy from the General Assembly in NYC |
NEAR TERM CATALYSTS FOR SECOND QUARTER 2022
| · | Technical |
| o | Updated Phase 1 Feasibility Study with FEL3 detailed engineering and construction Capex |
| o | Pre-Feasibility Study with combined economics of Phase 1 and Phase 2 |
| o | Updated mineral resource statement for Phase 3 with results of ongoing drilling campaign |
| · | ESG |
| o | Initiate construction of dozens of “rainwater capture structures” to support regional agriculture, in partnership with ministry of agriculture |
| o | Launch microcredit program “Dona de Mim”, in partnership with “Mulheres do Brasil” |
1
INVESTOR VIDEO CONFERENCE CALL
April 7, 2022 at 11 AM (EST)
Registration link for Zoom video call below:
https://us06web.zoom.us/webinar/register/WN_EcuVNqQFT4i7_iIgcLvypQ
Zoom meeting ID: 899 8003 0030
Access Code: 001021
Join by phone using the following dial in: North America: +1 646 558 8656, UK: +44 203 481 5237, Brazil: +55 11 4680 6788
VANCOUVER, CANADA -- (April 4th, 2022) - SIGMA Lithium Corporation ("Sigma Lithium" or the "Company") (NASDAQ: SGML, TSXV: SGML) dedicated to powering the next generation of electric vehicles with environmentally sustainable and high-purity lithium, has filed its audited consolidated financial and operating results and management’s discussion and analysis (“MD&A”) for the year ended December 31, 2021. The financial statements and MD&A are available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and the Company’s corporate website.
During this transformative year, Sigma Lithium made significant strides in advancing its Grota do Cirilo Project, including commencing fully equity funded construction of the Phase 1 Plant and Xuxa deposit (the “Phase 1 Mine”), releasing a positive PEA for Phase 2, and securing a take or pay offtake with LG Energy Solution. Sigma Lithium has advanced to become a strategically relevant leader in the lithium industry.
All these advancements were completed while consistently focusing on our core purpose to deliver on our ESG-centric agenda of social and environmental sustainability: maintaining a profound commitment to the sustainable development of the Vale do Jequitinhonha region where we operate.
| · | Completed transformational social programs such as “Homecoming skilled workers”, “Zero Hunger”, “Omicron Covid prevention”, “Childcare for all”. |
| · | Advanced on pioneering environmental sustainability strategy: donated 150 hectares of forestry for environmental compensation and will treat sewage water of the Jequitinhonha River to utilize in the Phase 1 Plant (while preserving other water sources). |
As a result, Sigma Lithium has played a leadership role in the global sustainability dialogue for the battery materials industry and was highlighted at COP-26 in Glasgow for the second time as an ESG case study in sustainable development of natural resources (promoting the circular economy as a driver of social sustainability).
2
CONSTRUCTION UPDATE
Sigma Lithium is pleased to report significant advancement on construction of the Phase 1 Plant, establishing operational readiness, and supporting ongoing operations.
| · | Phase 1 Plant is contemplated to have capacity of over 230,000 tpa of high-purity 6% battery grade environmentally sustainable lithium concentrate (“Battery-Grade Sustainable Lithium”). |
| · | The Company completed 100% of earthworks necessary for construction of the foundations for the Phase 1 Plant on schedule and on budget. |
| · | The Company plans to commence Phase 1 Plant commissioning at the end of 2022. |
| · | Initiation of civil works is commencing in April 2022. |
| · | Licensed mobile cement plant for the site. |
The construction team is currently focused on the construction of the Phase 1 Mine’s protective drainage (channels and pipes) and construction of the bypass of the municipal road around the Grota do Cirilo Project. These two workstreams are expected to be concluded as planned during the month of April 2022.
The ROM pad construction is expected to commence in April, and it will be followed by the construction of the haul road linking the Phase 1 Mine to the Phase 1 Plant and widening of the municipal access road.
There are currently over 300 personnel and 73 heavy construction units on site, including: mobile concrete mixer trucks, hydraulic excavators, backhoe loaders, track, tire, and crawler tractors, road rollers, dump trucks, water trucks, pickup trucks and utility and ambulance vehicles.
Detailed engineering work regarding the engineering, procurement and construction management for the Phase 1 Plant (including civil works) has been led by Primero Group Ltd and has been progressing as indicated in the tables below. The Company prioritized the engineering completion of the following aspects of the Phase 1 Plant: process design, mechanical, structural/foundations and concrete. This sequencing had two main objectives:
| · | further refining the flowsheet of the dense media separation (“DMS”) circuit; and |
| · | conducting trade-off analysis for critical equipment, such as the DMS ultrafines circuits, the environmental dry-stacking, and water recirculation circuit. |
Table 1: Detailed Engineering Progress Summary
| Discipline | Progress | |||
| Concrete | 36 | % | ||
| Process Design | 71 | % | ||
| Mechanical | 52 | % | ||
| Structural | 34 | % | ||
| Electrical & Instruments | 27 | % | ||
| Platework | 20 | % | ||
| Piping | 5 | % | ||
| Controls | 2 | % | ||
3
Table 2: Detailed Engineering Progress Across Key Disciplines
| Key Discipline | Detailed Progress Activities |
|
Mechanical (52% complete) |
· Progressed cast in vault chutes ready · Continued with general platework 2D drawings across all areas · Coarse Ore Bin platework 2D drawing progressed · Coarse Ore Bin Discharge Chute drawing progressed · Scalping screening 2D platework drawings progressed · Secondary and Tertiary Crusher 2D platework drawings progressed · Feedbox calculations · ROM Bin calculations · Line sizing and P&ID mark-ups · Wet plant area platework drawings (DMS Sizing Area, Primary DMS) |
|
Process (71% complete)
|
· Continued Process Control and Process Control Tables · HAZOP Actions · Thickener test complete on a 25m diameter unit · Belt filter test work complete choosing a 25m2 unit · Dry plant (Area 200) P&IDs · Wet plant area P&IDs |
|
Electrical / Instrumentation / Controls (27% complete) |
· Remote IO panel · Crushing Switchroom Equipment & Cables List · DMS Switchroom Equipment & Cables List · DMS MCC 2 Schematics AFC |
|
Civil / Structural (36% complete)
|
· ROM Wall concrete design · Secondary and Tertiary Crusher Vault drawings · Primary Crusher steelwork and vault 2D drawings · Scalping Screening concrete 2D drawings · Engineering continued for the dynamic analysis of the Secondary and Tertiary Crusher steelwork · Continue feed bin preparation area structural engineering and foundation design confirmation · Continued stacker concrete design · Started Primary DMS footing design |
FINANCIAL UPDATE
Sigma Lithium ended the year with C$155.4 million in cash and cash equivalents as at December 31, 2021, providing sufficient liquidity to advance the Grota do Cirilo Project into production. Sigma Lithium fully financed the capital expenditures estimated for the construction of the Phase 1 Plant and Phase 1 Mine by completing two equity financings on December 23, 2021 and February 12, 2021, raising gross proceeds of C$178.7 million.
The Company has continued to advance construction for the Phase 1 Plant following year end and currently has C$141.9 million in cash and cash equivalents as of March 30, 2021.
QUALIFIED PERSONS
Mr. Wes Roberts, P.Eng., a member of the technical committee of the Company, is the “qualified person” under NI 43-101 who reviewed and approved the technical information included in this news release.
ABOUT SIGMA LITHIUM CORPORATION
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma Lithium is currently in construction at its wholly owned Grota do Cirilo Project in Brazil, which includes a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas. Since inception, Sigma Lithium has devoted itself to strong ESG practices, from its ongoing support of local communities to its goal of achieving net zero by 2024. For more information about Sigma Lithium, visit https://www.sigmalithiumresources.com/
4
FOR ADDITIONAL INFORMATION PLEASE CONTACT
Jamie Flegg, Chief Development
Officer
(Toronto) +1 (604) 706-1087
jamie.flegg@sigmaca.com
Vítor Ornelas,
Manager, Corporate Development & Investor Relations
vitor.ornelas@sigmaca.com
Sigma Lithium
 |
Sigma Lithium |
 |
@sigmalithium |
 |
@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 of the commencement of Phase 1 Non -Plant Infrastructure commissioning; the timing of initiation of civil works; the timing of construction of the Phase 1 Mine’s protective drainage (channels and pipes) and construction of the bypass of the municipal road around the Project site; timing related to other construction related initiatives at the Project; the general business and operational outlook of the Company; 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 (including but not limited to the impact of the continuance or escalation of the military conflict between Russia and Ukraine, and economic sanctions in relation thereto); the stable and supportive legislative, regulatory and community environment in the jurisdictions where the Company operates; anticipated trends and effects in respect of the COVID-19 pandemic and post-pandemic; 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 develop and achieve production at its mineral projects. 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 Company may not develop its mineral projects into a commercial mining operation; 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.
5
Exhibit 99.2
SIGMA LITHIUM ANNOUNCES RESCHEDULED Q4-2021 FINANCIAL RESULTS CONFERENCE CALL DETAILS
INVESTOR VIDEO CONFERENCE CALL
April 11, 2022 at 11 AM (EST)
Zoom video call link below:
https://us06web.zoom.us/webinar/register/WN_EcuVNqQFT4i7_iIgcLvypQ
Zoom meeting ID: 899 8003 0030
Access Code: 001021
Join by phone using the following dial in: North America: +1 646 558 8656, UK: +44 203 481 5237, Brazil: +55 11 4680 6788
VANCOUVER, CANADA -- (April 6th, 2022) - SIGMA Lithium Corporation ("Sigma Lithium" or the "Company") (NASDAQ: SGML, TSXV: SGML) dedicated to powering the next generation of electric vehicles with environmentally sustainable and high-purity lithium, announces that it has rescheduled is fourth quarter financial results conference call for 11:00 a.m. EST on April 11, 2022, where the Company’s senior management team will give prepared remarks followed by a question-and-answer session.
ABOUT SIGMA LITHIUM CORPORATION
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma Lithium is currently in construction at its wholly owned Grota do Cirilo Project in Brazil, which includes a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas. Since inception, Sigma Lithium has devoted itself to strong ESG practices, from its ongoing support of local communities to its goal of achieving net zero by 2024. For more information about Sigma Lithium, visit https://www.sigmalithiumresources.com/
FOR ADDITIONAL INFORMATION PLEASE CONTACT
Jamie Flegg, Chief Development
Officer
(Toronto) +1 (604) 706-1087
jamie.flegg@sigmaca.com
Vítor Ornelas,
Manager, Corporate Development & Investor Relations
vitor.ornelas@sigmaca.com
Sigma Lithium
 |
Sigma Lithium |
 |
@sigmalithium |
 |
@SigmaLithium |
1
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 the general business and operational outlook of the Company; 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 (including but not limited to the impact of the continuance or escalation of the military conflict between Russia and Ukraine, and economic sanctions in relation thereto); the stable and supportive legislative, regulatory and community environment in the jurisdictions where the Company operates; anticipated trends and effects in respect of the COVID-19 pandemic and post-pandemic; 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 develop and achieve production at its mineral projects. 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 Company may not develop its mineral projects into a commercial mining operation; 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.
2
Exhibit 99.3
SIGMA LITHIUM UPDATES FEASIBILITY STUDY WITH PHASE 1 AFTER-TAX NPV OF US$1.6 BN, INCREASING MINERAL RESERVES 2.6x TO 34MT AND SUPPORTING PHASE 1 AND PHASE 2 COMBINED POTENTIAL PRODUCTION CAPACITY INCREASE TO A TOTAL OF 450,000 tpa
PLANNED PHASE 1 PRODUCTION AND ESTIMATED PHASE 2 SCALE UP
| · | Updated Phase 1 Feasibility Study base case to produce 230,000 tpa (34,000 LCE) of 6% Battery Grade Sustainable Lithium for 8 years. |
| o | After-tax NPV of Phase 1 (standalone): US$1.6 billion (potentially increasing to US$1.9 billion). |
| o | After-tax IRR of Phase 1 (standalone): 424%. |
| o | Payback period of 4 months. |
| o | Phase 1 is financially robust as a standalone operation even before factoring in a potential Phase 2 production expansion. |
| · | Optionality to increase Phase 1 production to 265,000 tpa of Battery Grade Sustainable Lithium, in line with current market specifications, with the following NPVs: |
| o | @ 6.0% Li2O: production of 230,000 tpa, NPV of US$1.6 billion. |
| o | @ 5.7% Li2O: production of 242,000 tpa, NPV of US$1.7 billion. |
| o | @ 5.5% Li2O: production of 251,000 tpa, NPV of US$1.8 billion. |
| o | @ 5.2% Li2O: production of 265,000 tpa, NPV of US$1.9 billion. |
| · | Phase 2 has the potential for additional production of 220,000 tpa (33,000 LCE), which is estimated to scale up the Company’s total annual production to 450,000 tpa (67,000 LCE) of 6% Battery Grade Sustainable Lithium. |
| o | Low-risk execution strategy: Phase 2 construction of production plant foundation earth works could commence concurrent with Phase 1 commissioning. |
| o | Multiple workstreams advancing with the objective of preparing for Phase 2 production in the near term. |
| · | Updated Phase 2 Pre-Feasibility study with combined Phase 1 and Phase 2 economics to be published early Q2-2022. |
MINERAL RESERVES AND MINERAL RESOURCE INCREASE
| · | Sigma Lithium has increased its estimated total mineral resources to 58.9Mt, including 33.6 Mt of mineral reserves1, while preserving its competitive advantage of high-grade & high-purity deposits, as demonstrated by Phase 2 DMS metallurgical results. |
| o | 25.3 Mt of Proven mineral reserves at an average grade of 1.44% Li2O. |
| o | 8.3 Mt of Probable mineral reserves at 1.39% Li2O. |
| o | 50.4 Mt of Measured and Indicated mineral resources at 1.40% Li2O. |
| o | 8.6 Mt of Inferred mineral resources at 1.43 % Li2O. |
1 tonnes and grades have been rounded in accordance with reporting guidelines
1
| · | Company’s confidence in the potential Phase 2 production expansion increased as a result of: |
| o | Maiden mineral reserve for the Phase 2 Deposit of 21.8 Mt. |
| o | 30% increase of mineral resource for the Phase 2 Deposit. |
| o | Additional DMS metallurgical tests were completed for Phase 2 achieving exceptional results indicating lithium recoveries of approximately 60%. |
| · | Phase 2 Deposit can be processed into Battery Grade Sustainable Lithium utilizing similar DMS green and environmentally sustainable technology as the Phase 1 Plant (without the additional complexities of a flotation circuit). |
PHASE 1 UPDATED REMAINING CAPEX AND COSTS (FEL3 PRECISION)
| · | Updated Phase 1 CAPEX (FEL3) to reach commercial production of US$123.1 million, in line with expectations when compared to US$113.6 million total capex estimated in the Feasibility Study Technical Report dated November 2019 (FEL2) (the “2019 FS”). |
| o | Sigma Lithium remains fully funded to finalize construction of commercial Production Plant. |
| · | Potential to be one of the lowest-cost producers globally of Battery Grade Lithium Concentrate |
| o | Average Cash Costs of US$357/t FOB Production Plant (at operation’s truck loading bay). |
| o | Average All-in Sustaining Costs of US$463/t CIF China. |
INVESTOR VIDEO CONFERENCE CALL
April 11, 2022 at 11 AM (EST)
Registration link
for Zoom video call below:
https://us06web.zoom.us/webinar/register/WN_EcuVNqQFT4i7_iIgcLvypQ
Zoom meeting ID: 899 8003 0030
Access Code: 001021
Join by phone using the following dial in: North America: +1 646 558 8656, UK: +44 203 481 5237, Brazil: +55 11 4680 6788
VANCOUVER, CANADA -- (April 11, 2022) - SIGMA Lithium Corporation ("Sigma Lithium" or the "Company") (NASDAQ: SGML, TSXV: SGML) dedicated to powering the next generation of electric vehicles with environmentally sustainable and high-purity lithium, is pleased to announce a significant increase in the Phase 1 (ONLY) After-Tax NPV to US$1.6 billion, as part of the updated Phase 1 Feasibility Study Technical Report (the “Updated Phase 1 Feasibility Study” or the “Updated Phase 1 FS”) for its wholly owned Grota do Cirilo Project (the “Project”).
The Updated Phase 1 FS economics demonstrate that Phase 1 is financially robust even as a standalone project.
| · | The key factors influencing the study outcome include a high average mill feed grade of 1.55% Li₂O (mineral reserve grade) and Phase 1 Plant DMS process recoveries of 60.4%. |
| · | The economic model assumes: |
| o | an average production plant feed of 1.5Mtpa resulting in production of approximately 230,000 tonnes per year of 6% lithium concentrate (“Battery Grade Sustainable Lithium”); and |
| o | pricing based on a fixed percentage of the market forecast for battery grade lithium hydroxide provided by Benchmark Mineral Intelligence. |
2
Figure 1: Overall Aerial View of the Phase 1 Plant Construction Area
UPDATED PHASE 1 FEASIBILITY STUDY
Phase 1 of the Grota do Cirilo Project will utilize as feedstock spodumene ore from the Xuxa deposit (the “Phase 1 Mine”) to be processed by Sigma Lithium’s green tech production plant (the “Phase 1 Plant”), which will produce Battery Grade Sustainable Lithium, creating a fully integrated high purity lithium concentrate operation.
The Updated Phase 1 FS reflects increased precision of the technical assumptions, resulting from over 11-months of detailed engineering, bringing the confidence level of the Project to FEL3. As a result, the Company is pleased to report an updated remaining construction capex for Phase 1 of US$123.1 million (the “Phase 1 CAPEX”), compared to US$113.6 million total capex referenced in the 2019 FS.
The Phase 1 “all-in sustaining cost” was updated in the Updated Phase 1 FS, demonstrating Sigma Lithium’s low-cost and strong cash flow profile:
| · | Average Cash Costs of US$357/t FOB Production Plant (at Project’s truck loading bay). |
| · | Average All-in Sustaining Costs of US$463/t CIF China. |
The Company also confirmed the exceptional lithium recovery of 60.4% using DMS, which was announced in the 2019 FS, through additional metallurgical testing at SGS’s laboratory.
| · | To further test the effectiveness of the DMS processing flowsheet during detailed engineering, the Company conducted additional variability tests, utilizing both Heavy Liquid Separation (“HLS”) and DMS methodologies for the Phase 1 Mine. |
| · | All representative samples produced very positive results for lithium concentrate with over 6% lithium oxide (Li2O), and dry magnetic separation reduced iron content of below 1% Fe2O3. |
| · | Combined spodumene concentrate grades ranged from 6.06% to 6.43% Li2O. |
While the base case Updated Phase 1 FS is based on production of 6% lithium concentrate (230,000 tpa), the Company has optionality to deliver additional production of Battery Grade Sustainable Lithium, maintaining specifications in-line with current lithium markets as follows:
| · | 242,000 tpa @ 5.7% Li2O; |
| · | 251,000 tpa @ 5.5% Li2O; and |
| · | 265,000 tpa @ 5.2% Li2O. |
3
A key element of the environmental strategy for the Phase 1 Mine, as detailed in the 2019 FS, was the decision to operate the Phase 1 Mine as two separate pits to preserve the Piauí “seasonal creek” and its surrounding ecosystems (collectively, the “Piauí”).
| · | This decision was due to the importance of the Piaui´s role in providing freshwater to the surrounding communities for four to five months of the year (the Project is located within a semi-arid region with extended dry season). |
| · | Sigma Lithium does not utilize Piauí water in its Phase 1 Plant, instead sourcing non-potable water from the Jequitinhonha River (approximately 5 km away). |
Phase 1 Economic Analysis
The Phase 1 After-Tax NPV and Phase 1 After-Tax IRR were calculated based on an average annual production rate of 230,000 tonnes of Battery Grade Sustainable Lithium over an 8-year operating life. A financial summary for Phase 1 is included in Table 1 below, which demonstrates that even as a standalone mine, Phase 1 is economically robust.
Table 1: Phase 1 Production Financial Summary
| Item |
Base Case @ Battery Grade 6% Lithium Concentrate |
| Economic Analysis | |
| After-Tax Net Present Value (@ 8% Discount Rate) | US$1,600 million |
| After-Tax Internal Rate of Return | 424% |
| After-Tax Payback Period | 4 months |
| Revenues, Cash Flow and Capex | |
| Operating Life | 8 years |
| Average Annual Lithium Concentrate Production | 230,000 tpa |
| Lithium Carbonate Equivalent | 34,000 t LCE per year |
| Average LOM Lithium Concentrate Price | US$1,954/t |
| Average Annual Revenue | US$450 million |
| Average Annual After-Tax Free Cash Flow | US$273 million |
| Costs per tonne of Lithium Concentrate | |
| Total Cash Cost at Production | US$357/t |
| All-in Sustaining Cost (CIF China) | US$463/t |
|
Lithium Recovery Rate (DMS)
|
60.4% |
| Integrated Costs (Mine and Production Plant) | |
| Mining costs per tonne of lithium concentrate | US$232/t |
| Greentech Production Plant Processing costs per tonne of lithium concentrate | US$65/t |
| G&A costs per tonne of lithium concentrate | US$21/t |
| Spodumene Mined Feedstock for Lithium Plant (Integrated) | |
| Total quantity mined | 11.8 million tonnes |
| Annual run of mine (ROM) | 1.5 million tonnes / year |
| Spodumene ore feed grade LOM average | 1.55% |
| Mining costs per waste and ore mined (ROM) | US$2.06/t |
Phase 1 average revenue and operating costs per tonne of Battery Grade Sustainable Lithium are outlined below in Table 2. The lithium prices forecasted are based on the Benchmark Mineral Intelligence curve of battery grade lithium hydroxide (LiOH) shown in Figure 2, with the price of the lithium concentrate (SC6) calculated based on a fixed percentage of 7% of the LiOH price. This results in an average weighted lithium concentrate price of US$1,954/t over the 8-year period.
4
Figure 2: Battery Grade LiOH & SC6 Price Forecast (US$/t)
Table 2: Phase 1 Mine Estimated Revenue and Operating Costs
| Phase 1 Estimated Revenue, Operating Cost and After-Tax Earnings | Annual Average (8 Years Phase 1 | Annual Average Economics per Tonne of Lithium concentrate sold (8 years Phase 1 Operating Life) | ||||||
| (US$ MM) | (US$/t) | |||||||
| Gross Revenue | $ | 450 | $ | 1,954 | ||||
| Less: Realization costs | $ | (14 | ) | $ | (60 | ) | ||
| (-) CFEM | $ | (9 | ) | $ | (39 | ) | ||
| (-) Commercial Discount | $ | (5 | ) | $ | (20 | ) | ||
| Net Revenues | $ | 436 | $ | 1,895 | ||||
| Less: Site Operating Costs | $ | (97 | ) | $ | (422 | ) | ||
| (-) Mining | $ | (53 | ) | $ | (232 | ) | ||
| (-) Processing | $ | (15 | ) | $ | (65 | ) | ||
| (-) Transport | $ | (24 | ) | $ | (104 | ) | ||
| (-) Selling, General & Administration | $ | (5 | ) | $ | (21 | ) | ||
| EBIT | $ | 339 | $ | 1,473 | ||||
| % EBIT Margin | 78 | % | 78 | % | ||||
| (-) Taxes | $ | (49 | ) | $ | (214 | ) | ||
| After-Tax Earnings | $ | 290 | $ | 1,259 | ||||
| % After-Tax Earnings Margin | 66 | % | 66 | % | ||||
5
Given the relatively low capital intensity of the Phase 1 Mine, the Phase 1 After-Tax NPV shows low sensitivity to changes in capex, BRL/USD exchange rate and operating expenses. The Phase 1 After-Tax NPV is more sensitive to variations in lithium concentrate prices.
Figure 3: Phase 1 (ONLY) After-Tax NPV8% Sensitivity Analysis to Lithium Concentrate Prices (US$ billion)
Phase 1 Capital Expenditure (FEL3)
Remaining Phase 1 CAPEX (FEL3) to construct both the Phase 1 Plant and Phase 1 Mine was updated to US$123.1 million, which includes all associated plant and mine infrastructure, as well as all direct and indirect costs and contingencies. This represents a modest increase from the prior capital expenditure (FEL2) estimate of US$113.6 million, from the 2019 FS, resulting primarily from increased capacity of the environmental circuit (dry stacking and water recirculation) to support both Phase 1 and potential Phase 2 (US$8 million).
| · | The Company elected to purchase (included in the Phase 1 Capex) previously leased items (included in the operating expenses), as a result of the potential operating life extension provided by Phase 2 and potential further expansions, including: |
| o | a customized primary crushing plant (US$23 M) with a rated throughput capacity of 1.7Mtpa ROM feed; and |
| o | power substation (US$7 M). |
The Phase 1 Capex was estimated at a FEL3 level of engineering detail, whereby the engineering firms provided pricing quotations from qualified suppliers for all areas of construction (summarized in Table 3 below).
| · | This FEL3 quoting exercise was led by the procurement teams at Promon Engenharia Ltda. (infrastructure, services, buildings and bulk earthworks), Primero Group Ltd (crushing plant and DMS plant) and GE21 Consultoria Mineral (mining). |
Table 3: Phase 1 Capex to Commercial Production (1)
| Item | (US$ M) | |||
| Mine | $ | 9.3 | ||
| Process Plant | $ | 69.8 | ||
| Environmental Equipment (Water & Dry Stacking) | $ | 15.5 | ||
| Engineering Services | $ | 19.2 | ||
| Substation & Utility Power Supply | $ | 7.4 | ||
| Operational and ESG Expenses During Construction | $ | 9.8 | ||
| Working Capital During Plant Commissioning | $ | 6.1 | ||
| Tax Incentives (Savings) | $ | (5.9 | ) | |
| Capex already Disbursed During Construction | $ | (8.3 | ) | |
| Total Capex to Commercial Production | $ | 123.1 | ||
| (1) | Note: The sustaining capital is estimated at US$3.2 M (including contingency) for replacement of key plant components over the 8-year Phase 1 Mine life, considering the modelled operating life and useful life of major equipment items. The sustaining capex is mainly for the crushing area and allows for crusher rebuilds (replacements). |
6
Phase 1 All-In Sustaining Cost
The operating cost estimate is based on an owner-operated model with contract mining. Table 4 below shows the anticipated average operating costs over the operating life.
Mining costs were estimated based on a quoted proposal from a large Brazilian mining contractor, selected after an extensive tender process by the Company and its mining consultant, GE21 Consultoria Mineral.
Phase 1 Battery Grade Sustainable Lithium is forecasted to have very low All-in Sustaining Costs (CIF China) of US$463/t, mainly as a result of the following:
| · | high-grade and low impurities, as well as large crystal mineralization of the spodumene feed from the Phase 1 Mine; |
| · | high recoveries achieved in the Phase 1 Plant DMS; |
| · | low overall processing costs of the Phase 1 Plant DMS, resulting from its streamlined processing circuit (with less processing steps), therefore utilizing less electricity, water and chemical ingredients than a typical lithium flotation plant; and |
| · | low local G&A costs in Brazil. |
Table 4: Phase 1 Operating Cost Estimate
| Operating Cost Category | US$/t SC6 | |||
| Mining | $ | 232 | ||
| Processing | $ | 65 | ||
| G&A | $ | 21 | ||
| Royalties | $ | 39 | ||
| Total Cash Cost (FOB) | $ | 357 | ||
| Transport & Ocean Freight Costs | $ | 104 | ||
| Total Cash Cost (CIF China) | $ | 461 | ||
| Sustaining | $ | 2 | ||
| All-In Sustaining Cost (CIF China) | $ | 463 | ||
Phase 1 Mine Mineral Reserve Update
The Phase 1 Mine Mineral Reserves have been re-estimated at a total of 11.8Mt of Proven and Probable Mineral Reserves at an average grade of 1.55% Li2O, which is comprised of 8.34Mt of Proven Mineral Reserves at an average grade of 1.55% Li2O and 3.46Mt of Probable Mineral Reserves at an average grade of 1.54% Li2O.
To access and recover these Mineral Reserves, 195.4 Mt of waste rock must be mined, resulting in an overall LOM strip ratio of 16.6:1 t/t.
Compared to the previous mineral reserve estimate, the ultimate pit design represents:
| · | higher total Li2O average grade of 1.55% compared to 1.46%. |
| · | a 14% decrease in mineral reserve tonnage resulting in a 9% decrease in contained LCE. |
7
The reduction was primarily due to extensive field studies and the corresponding update using more conservative geotechnical parameters which reflect the efforts by Sigma Lithium to increase the robustness and safety factor of the mining operation. Another important factor was the ESG-driven decision to preserve the Piauí by mining the Phase 1 Mine as two pits.
Table 5: Revised Xuxa Mineral Reserve Statement
| Xuxa Mineral Reserves | ||||||||||||
| Category | Tonnes (Mt) | Grade (% Li2O) | Contained LCE (kt) | |||||||||
| Proven | 8.3 | 1.55 | % | 320 | ||||||||
| Probable | 3.5 | 1.54 | % | 132 | ||||||||
| Proven & Probable | 11.8 | 1.55 | % | 452 | ||||||||
Note: Mineral Reserves were estimated using Geovia Whittle 4.3 software and following the economic parameters listed below:
| 1) | Sale price for Lithium concentrate at 6% Li2O = US$1,500/t concentrate; |
| 2) | Exchange rate US$1.00 = R$5.00; |
| 3) | Mining costs: US$2.20/t mined; |
| 4) | Processing costs: US$10.70/t ore milled; |
| 5) | G&A: US$4.00/t ROM (run of mine); |
| 6) | Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources; |
| 7) | 97% Mine Recovery and 3.75% Mine Dilution; |
| 8) | Final slope angle: 34° to 72° based on Geotechnical Document presented in Section 16; |
| 9) | Inferred Mineral Resources with the Final Operational Pit is 0.68 Mt grading at 1.52% Li2O. The Inferred Mineral Resources are not included in the Mineral Reserves; |
| 10) | Strip Ratio = 16.6 t/t (waste and Inferred mineral resource)/mineral reserve; and |
| 11) | The Competent Person for the estimate is Porfírio Cabaleiro Rodriguez, BSc. (MEng), FAIG, an employee of GE21. |
UPDATED PHASE 2 RESOURCE AND MAIDEN RESERVE ESTIMATES
The Company is also pleased to announce its maiden mineral reserve estimate for the Phase 2 deposit (the “Phase 2 Deposit”) of 21.8 Mt, further increasing the Company’s confidence in the potential Phase 2 expansion.
| o | 16.9 Mt of Proven mineral reserves at 1.4% Li2O. |
| o | 4.8 Mt of Probable mineral reserves at 1.3% Li2O. |
Additionally, the Company increased the mineral resource for the Phase 2 Deposit by 30% to 29 Mt, while preserving its competitive advantage of high-grade & high-purity deposits, as demonstrated by DMS metallurgical results
| o | 25.1 Mt of Measured and Indicated mineral resources at 1.4% Li2O. |
| o | 3.8 Mt of Inferred mineral resources at 1.4% Li2O. |
The 2021 drilling campaign focused on the central area of the Phase 2 Deposit mineralization and on upgrading the confidence and tonnage of the existing mineral resource.
| · | A gap zone separating the central area of the Phase 2 Deposit identified during the 2018 drill program was drilled in 2021 confirming continuity of one mineralized body. |
| · | The pegmatite remains open at depth and on strike to the northeast. |
The new Barreiro mineral resource has been increased by 30% to 25.1Mt of Measured and Indicated mineral resources at 1.38% Li2O, and 3.8Mt of Inferred mineral resource at 1.39% Li2O.
| · | The pegmatite contains large crystals of spodumene which are readily visible in the drill core |
The maiden Barreiro mineral reserve is estimated at 16.9Mt of Proven mineral reserves at 1.38% and 4.8Mt of Probable mineral reserves at 1.29%.
| · | A total of 133 drill holes have been completed at Barreiro for a total of approximately 25,000m. |
| · | SGS conducted sensitivity analyses and generated multiple pit optimizations for the resource model. The results demonstrate that mineral resources are relatively insensitive to the Li2O concentrate price. |
8
Table 6: Phase 2 Mineral Reserves
| Barreiro Mineral Reserves | ||||||||||||
| Category | Tonnes (Mt) | Grade (% Li2O) | Contained LCE (kt) | |||||||||
| Proven | 16.9 | 1.38 | % | 577 | ||||||||
| Probable | 4.8 | 1.29 | % | 153 | ||||||||
| Proven & Probable | 21.8 | 1.37 | % | 730 | ||||||||
Note:
| 1) | Mineral Reserves were estimated using Geovia Whittle 4.3 software and following the economic parameters listed below: |
| 2) | Sale price for Lithium concentrate at 6% Li2O = US$1,500/t concentrate FOB Mine. |
| 3) | Exchange rate US$1.00 = R$5.00. |
| 4) | Mining costs: US$2.19/t mined |
| 5) | Processing costs: US$10.7/t ore milled. |
| 6) | G&A: US$4.00/t ROM (run of mine). |
| 7) | Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources. |
| 8) | 95% Mining Recovery and 3% Mining Dilution. |
| 9) | Final slope angle: 35° to 55° based on Geotechnical Document presented in Section 16. |
| 10) | Inferred Mineral Resources with the Final Operational Pit is 0.59 Mt grading at 1.32% Li2O. The Inferred Mineral Resources are not included in the Mineral Reserves. |
| 11) | Strip Ratio = 12.5 t/t (waste + Inferred mineral resources)/mineral reserves. |
| 12) | The Competent Person for the estimate is Porfírio Cabaleiro Rodriguez, BSc. (MEng), FAIG, an employee of GE21. |
Table 7: Phase 2 Updated Mineral Resources
| Updated Mineral Resource for Barreiro | ||||||||||||||||
| Cut-off Grade (% Li2O) | Category | Tonnes (Mt) | Grade (% Li2O) | Contained LCE (kt) | ||||||||||||
| 0.5 | % | Measured | 18.7 | 1.41 | % | 653 | ||||||||||
| 0.5 | % | Indicated | 6.3 | 1.30 | % | 204 | ||||||||||
| 0.5 | % | Measured & Indicated | 25.1 | 1.38 | % | 857 | ||||||||||
| 0.5 | % | Inferred | 3.8 | 1.39 | % | 131 | ||||||||||
Note:
| 1) | Mineral Resources that are not Mineral Reserves and do not have demonstrated economic viability. Inferred mineral resources are exclusive of the Measured and Indicated resources. |
| 2) | Mineral Resources have an effective date of February 24, 2022 and have been classified using the 2014 CIM Definition Standards. The Qualified Person for the estimate is Mr. Marc-Antoine Laporte, P.Geo., an SGS Canada employee. |
| 3) | A fixed density of 2.72 t/m3 was used to estimate the tonnage from block model volumes. |
| 4) | Mineral Resources are reported assuming open pit mining methods, and the following assumptions: lithium concentrate (6% Li2O) price of US$1,500/t, mining costs of US$2.20/t for mineralization and waste, crushing and processing costs of US$10.70/t, general and administrative (G&A) costs of US$4.00/t, metallurgical DMS recovery of 60%, 2% royalty payment, pit slope angles of 55º, and an overall cut-off grade of 0.5% Li2O. |
| 5) | All Resources are presented undiluted and in situ, constrained by continuous 3D wireframe models, and are considered to have reasonable prospects for eventual economic extraction. |
| 6) | Tonnages and grades have been rounded in accordance with reporting guidelines. Totals may not sum due to rounding. |
| 7) | The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. |
PHASE 2 DMS METALLURGICAL TESTS
The Company conducted the Phase 2 DMS Metallurgy Tests achieving a 60% recovery level of Li2O, further validating the exceptional level of lithium recoveries demonstrated by the HLS testing in the preliminary economic assessment dated July 2021 (the “2021 Phase 2 PEA”).
Pilot-scale DMS testwork and bench-scale HLS testwork were undertaken on a composite sample for Phase 2 DMS Metallurgical Tests on the Phase 2 Deposit. Testwork was performed at SGS Canada Inc. in Lakefield, Ontario. HLS results were described in the 2021 Phase 2 PEA.
9
The Phase 2 DMS Metallurgical Test results reinforced the confidence that a 6.0% Li2O concentrate can be produced at an overall lithium stage recovery of 60% while maintaining the coarseness of the lithium concentrate (crush size of minus 9.5 mm).
These results validate that the spodumene mineralization from the Phase 2 Deposit can be processed into Battery Grade Sustainable Lithium in a similar manner to spodumene ore from the Phase 1 Mine, without requiring major flowsheet modifications. Importantly, this indicates that Phase 2 can utilize the same DMS green and environmentally sustainable technology as the Phase 1 Plant, currently under construction.
The lithium grades in the concentrate fractions ranged from 5.72% to 6.48% Li2O. Magnetic separation was performed on the concentrate, and iron content in each size fraction was well below the target of 1% Fe2O3. Combined concentrate graded 6.11% Li2O with stage recovery of 60%.
Table 8: Phase 2 Metallurgical Test DMS Results
| Staged DMS Results by Size Fraction for Barreiro’s Composite Sample | ||||||||||||||||
| Fraction | Mass % | Grade, % Li2O | Grade, % Fe2O3 | Recovery % | ||||||||||||
| Coarse DMS Concentrate | 14.8 | 5.72 | 0.34 | 58.1 | ||||||||||||
| Fine DMS Concentrate | 13.2 | 6.20 | 0.34 | 60.5 | ||||||||||||
| Ultrafine DMS Concentrate | 11.5 | 6.48 | 0.40 | 58.6 | ||||||||||||
| Combine Concentrate | 13.2 | 6.11 | 0.35 | 59.5 | ||||||||||||
Table 9 below demonstrates the potential for the Phase 2 Deposit to produce a Battery Grade Sustainable Lithium (very low alkalines and iron) with coarse particles (large crystals).
Table 9: Phase 2 Combined Concentrate from DMS Results
QUALITY CONTROL
QA/QC program involving blank samples (4% of the sampling stream), standard samples (4% of the sampling stream) and field duplicates (6% of the sampling stream) has been established during sampling. A further 6% of the mineralized samples will also be sent to the ALS Laboratory in Vancouver, British Columbia for pulp duplicates once the campaign is over. All assays are analyzed at SGS’s Belo Horizonte laboratory using a multi-element peroxide fusion ICP-AES on half-core 1 kg samples.
QUALIFIED PERSONS
The technical and scientific information related to geology and mineral resource estimate in this news release has been reviewed and approved by Marc-Antoine Laporte P.Geo., M.Sc., of SGS Geological Services. Mr. Laporte is a Qualified Person as defined by National Instrument 43-101 and is independent of Sigma Lithium.
10
The mining and mineral reserve estimates in this news release has been reviewed and approved by Porfirio Cabaleiro Rodriguez P.Eng, Mining Engineer of GE21 Consultoria Mineral Brazil. Mr. Rodriguez is a Qualified Person as defined by National Instrument 43-101 and is independent of Sigma Lithium.
The financial information in this news release has been reviewed and approved by Brian Talbot BSc Engineering (Chemical), FAusIMM. Mr. Talbot is a Qualified Person as defined by National Instrument 43-101 and is independent of Sigma Lithium.
The technical and scientific information related to DMS metallurgical tests in this news release has been reviewed and approved by Jarrett Quinn, P.Eng., Primero Group Americas Inc. Mr. Quinn is a Qualified Person as defined by National Instrument 43-101 and is independent of Sigma Lithium.
ABOUT SIGMA LITHIUM CORPORATION
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma is currently in construction at its wholly owned Grota do Cirilo Project in Brazil, which includes a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas. Since inception, Sigma has devoted itself to strong ESG practices, from its ongoing support of local communities to its goal of achieving net zero by 2024. For more information about Sigma Lithium, visit https://www.sigmalithiumresources.com/
FOR ADDITIONAL INFORMATION PLEASE CONTACT
Jamie Flegg, Chief Development
Officer
(Toronto) +1 (604) 706-1087
jamie.flegg@sigmaca.com
Vítor Ornelas,
Manager, Corporate Development & Investor Relations
vitor.ornelas@sigmaca.com
Sigma Lithium
 |
Sigma Lithium |
 |
@sigmalithium |
 |
@SigmaLithium |
11
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 commissioning of the Phase 1 Plant, the delivery of additional incremental production at varying grades, NPV, IRR and payback estimates, increase in after tax cash flow, potential to be among the lowest cost producer in the industry, production, operating and capital cost estimates (including sustaining costs and improvements in respect thereof), all estimates and assumptions relating to the economic analysis and financial summary including but not limited to revenue and production estimates, operating life, plant recoveries and feedstock estimates, lithium prices, mineral resource and mineral reserve estimates (including assumptions and estimates used in preparing the mineral reserve and mineral resource estimates), Phase 2 projections, economic development in the jurisdictions in which Sigma Lithium operates, the general business and operational outlook of the Company, 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 the jurisdictions where the Company operates; anticipated trends and effects in respect of the COVID-19 pandemic and post-pandemic; the military conflict in Ukraine and related sanctions; 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 develop and achieve production at its mineral projects. 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 Company may not develop its mineral projects into a commercial mining operation; 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.
12