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In short

Net Present Value:

$.27 B

$750/t SC6 pricing. After-tax, 8% Discount rate

Resource Estimate:

1.6 Mt

LCE, Measured & Indicated

Stage:

DFS

Completed

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Lithium project:

Grota Do Cirilo

Brasil

Project Summary

Net Present Value

$0.27B

$750/t SC6 pricing. After-tax, 8% Discount rate

Resource Estimate

1.6 Mt

Measured & Indicated

Completed Stage:

DFS

Location: Minas Gerais , Brasil
Completed Stage: DFS
Next Stage: Construction
Deposit type: Hard Rock

Website: sigmalithiumresources.com

Company description

Sigma is a Canadian company that has been producing environmentally sustainable battery-grade lithium concentrate on a pilot scale since 2018 and shipping high-purity “green & sustainable” 6% Li2O battery-grade lithium concentrate samples to some of the leading global cathode and battery producers for electric vehicles.

The company is in pre-construction (including the EPC and “contract-readiness” of core construction suppliers) of its larger-scale lithium concentration commercial production plant (the “Commercial Production Plant”). Based on the Feasibility Study Report the Commercial Production Plant will contemplate a capacity of 220,000 tonnes annually of battery-grade “green” lithium concentrate and Sigma will be amongst the lowest-cost producers of lithium concentrate globally. The Feasibility Study Report is being updated to include the development of the Project’s second deposit, contemplating production at the rate of 440,000 tonnes per annum (Phase 2 of the Project).
To secure a leading position supplying the clean mobility and green energy storage value chain, Sigma has adhered to the highest standards of environmental practices in line with its core values and mission since starting activities in 2012. Sigma’s production process is powered by hydroelectricity and the Company utilizes state-of-the-art dry-stacking tailings management and water-recycling techniques in its beneficiation process. Its corporate mission is to execute its strategy while embracing strict ESG principles. Sigma’s shareholders include some of the largest ESG-focused institutional investors in the world.

Key takeaways:

1. Pre-Construction

The project is in pre-construction for its first phase

2. Off-take & Business with Mitsui

Engaged in business with one of Japanese largest trading houses, Mitsui, with up to 220k tonnes/year off-take agreement with profit sharing

3. Large Production Scale

Phase 1 – 220,000 tonnes/year production makes it top 6 lithium producers in the world. Possible to expand x2. 

4. Focused on Sustainability and Green Lithium Production

Uses hydroelectricity from nearby plant

Resources & Reserves

Resources

Reserves

Project Economics

Initial capital costs

$98.5M

After-tax IRR

45.5%

$750/t SC6 pricing, 8% Discount rate

Operating Cost

$238/t

SC6

Ownership

100%

Of the Rose Tantalum project

NPV - Forecasted Pricing

Price/t SC6

After-tax NPV(8%)

After-tax IRR

$733

$248M

43.2%

$750*

$266M

45.5%

$806

$322M

52.9%

Sigma Lithium Resources: $SGMA Current valuation

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Company financials

Debt

$12.3 M CAD

Sep 20, 2020

Cash & Cash eq

$16 M CAD

Sep 20, 2020

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