Sigma Lithium Corporation said it had made “significant progress” with the construction of a Greentech plant at its Grota do Cirilo project during the third quarter of 2022.
In a wide-ranging update, the firm said it had completed 94% of concrete and 76% of steel for the Greentech Plant, which is set to begin commissioning by December 2022.
Commercial production of some of the lowest-cost battery grade lithium concentrate is set to start in April 2023.
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"The operational team led by the co-CEO and the COO achieved exceptional construction progress this quarter, concluding several key milestones and remaining on track to initiate commissioning of the Greentech plant by December 2022,” said co-CEO Ana Cabral-Gardner.
Equipment deliveries are on track, the CEO noted. Sigma expects the number of workers at site to increase to over 1,000 this quarter, up from the current 750 professionals, which Cabral-Gardner said “further (accelerates) construction speed and bringing significant economic opportunities to the Jequitinhonha Valley region” where the project is located.
"Our operating team continues to work tirelessly to establish Sigma Lithium as one of the world's largest lithium producers next year, benefiting from one of the most robust lithium markets of all time, enabling the company to generate revenues by the second quarter of 2023, and enjoy substantial cash flows from operations on the same quarter,” Cabral-Gardner told investors.
The firm is focused on “unlocking significant organic growth” beyond Phase 1 production, according to the CEO, and expects to announce the results of its combined Phase 2 and 3 expansions in the coming months, which could potentially triple production by 2024.
Sigma ended the third quarter with C$85.2 million in cash and cash equivalents as of September 30, 2022.
During the quarter, it continued to focus spending on advancing Greentech plant construction. Additionally, Sigma repaid the C$4 million deposit that Mitsui made under the Mitsui HOA, in order to preserve maximum commercial optionality for sales of the project's battery grade sustainable lithium.
COP-27 participation
CEO Cabral-Gardner and members of the Sigma team were guests at the COP-27 summit in Egypt in November.
Cabral-Gardner and other members of the Sigma leadership team presented a framework to apply United Nations Sustainable Development Goals to mining projects globally, in order to measure sustainability and overall economic and social impact.
At a workshop, the team applied Sigma Lithium's ESG framework to demonstrate how SDGs were utilized to assess the effectiveness of the deployment of equity impact investment and debt funding.
Cabral-Gardner also made the keynote presentation on circular economy at COP Investments (hosted by the world climate fund), presenting Sigma’s strategy to become the first zero tailings lithium producer by upcycling 100% its “hazardous chemicals free" tailings from the Greentech plant.
The full update can be read here.
Contact Angela at angela@proactiveinvestors.com
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