Impact: Very Positive
Sigma Lithium has initiated initial production of green lithium at its 100%-owned Grota do Cirilo Li hard rock project in Brazil. This marks the company’s transition from a lithium developer to producer, after merely six years of development at the project. We believe this is a major de-risking event that should help Sigma re-rate as production rates begin to ramp up to expected levels, and specifications are achieved. Pending revenue should help financially de-risk any Phase 2-3 expansion plans, ultimately targeting growth from 270,000 tpa to 766,000 tpa. Notably, this is the equivalent of 104,200t LCE annual production. An expansion Feasibility Study is currently underway.
