After securing an operating license for its Grota do Cirilo mine in Brazil last week, Sigma Lithium (TSXV: SGML) has officially started production. The firm this morning indicated that has achieved the first production of “battery grade sustainable lithium concentrate.”
The achievement was met after the company successfully commissioned its phase 1 greentech plant. With commissioning completed, the team will now turn its attention to ramping to full production capacity, which is expected to be achieved in July 2023.
Production at the mine is currently running at 75% of capacity.
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The first shipment of lithium meanwhile is expected to occur in May, with an estimated 15,000 tonnes expected to be shipped. Sigma also currently expects to sell its ultra-fine tailings, which is an expected 300,000 tonnes from its first phase of operations.
“Sigma Lithium was created almost a decade ago and set out to prove that lithium extraction could be done in a way that is environmentally and socially responsible. Reaching this milestone from developer to producer is an incredible achievement and a testament to the many years of hard work of the entire Sigma team. We are thrilled to deliver on schedule for our supporters and partners,” commented CEO Ana Cabral-Gardner.
While entering production is a major achievement for Sigma, it comes at a time when the price of lithium carbonate has been cratering. The most recent price of lithium carbonate per tonne has been quoted at 192,500 yuan (US$28,011), down 67% from the high of 597500 yuan (US$86,945) per tonne achieved in September of 2022.
Separately, a feasibility study is currently underway, which targets to expand production from 270,000 tonnes per annum of lithium carbonate to 766,000 tonnes via a phase two and three expansion.
Sigma Lithium last traded at $53.36 on the TSX Venture.
Information for this briefing was found via Sedar, Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
