Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) has announced a significant milestone in its commercial strategy, securing an enhanced premium fixed price for its latest lithium shipment.
The company has achieved a final premium price of US$1,333 per tonne (13% VAT included), translating to US$1,160 per tonne (net of VAT) for its eighth shipment comprising 22,000 tonnes.
The shipment is currently en route to the company's EXW warehouse at the Port of Vitoria in Brazil, Sigma said in a statement.
The price, determined through closed private bidding, represents a substantial increase over previous premium prices attained by Sigma. The company noted that the final price net of VAT equates to 8.75% of the LME Lithium Hydroxide CIF/Fastmarkets CJK price.
Included within the agreement is a provision for a cash prepayment, with 85% of the shipment's value collected upon loading, further fortifying Sigma Lithium's financial position.
Meanwhile, Sigma is fielding inbound interest “at a feverish pace” for its next shipments, Catarina Noci, Sigma’s commercial director said in a statement.
Noci emphasized the growing demand for the company's lithium products, driven by their superior quality and performance benefits, noting the significant interest from potential customers, particularly following recent engagements in China, where the tangible cost savings provided by Sigma Lithium's products became apparent.
“Our product becomes increasingly valuable to our customers when markets are soft, where non-integrated refiners and tollers alike are experiencing tighter operating margins,” Noci said.
Ana Cabral-Gardner, CEO of Sigma Lithium, also highlighted the company's established position as a leading producer of high-quality lithium.
“The increased premiumization is attributable to the superior performance of our product for our refining clients who were able to ascertain its efficiency gains and cost savings,” Cabral-Gardner said.
“Additionally, as a ‘free bonus,’ we deliver the only Quintuple Zero Green Lithium in the industry, without receiving a green premium.”
Sigma’s Quintuple Zero Green Lithium is positioned as a premium-grade lithium product with superior chemical and physical properties, suitable for high-performance battery applications while also aligning with environmental sustainability goals.
Shares of Sigma Lithium were trading around 2.6% higher midmorning on Thursday.