Impact: Positive
Sigma provided an updated technical report for its Phase 1 and 2 production scenarios from its 100%-owned Grota do Cirilo hard rock Li project in Brazil. Inclusion of Phase 2 increases the life of the project from 8 to 13 years, leading to a peak combined production run rate of 531ktpa or 72.2kt LCE. We view this update very positively as the combined scenario demonstrates very robust economics with an after-tax NPV8% of US$5.1B and IRR of 589%. Once up and running, Grota do Cirilo is expected to become one of the largest, highest-grade, lowest cost and environmentally friendly Li operations in the world.
