Sigma Lithium says integrated phase 1 and 2 of Grota do Cirilo project delivers after-tax NPV of $5.1 billion
(Kitco News) - Sigma Lithium (TSXV: SGML) announced Thursday that the integrated Phase 1 Feasibility Study and a Phase 2 Pre-Feasibility Study for its Grota do Cirilo lithium project in Brazil demonstrates robust combined economics, highlighted by a combined after-tax NPV8% of US$5.1 billion and combined after-tax IRR of 589%.
Importantly, the company said that with run-rate combined production of 531,000 tpa (72,200 tpa LCE) of Battery Grade Sustainable Lithium, the phased expansion scenario will potentially position Sigma Lithium as the world’s fourth largest lithium producer.
Sigma added that the project is also expected to be among the lowest cost lithium producers globally with average cash costs of US$454/t (CIF China), and with combined average annual free cash flow of US$595 million over the 13-years of operation.
The company also said that Phase 1 remains on schedule and on budget to begin commissioning by year-end 2022, adding that construction of Phase 2 is expected to begin once Phase 1 initiates commissioning.
The company expects to announce an updated mineral resource estimate in the second quarter of 2022, with the goal of determining the potential for a further production expansion (“Phase 3”). A Preliminary Economic Assessment on Phase 3 is expected to be completed at the end of the second quarter or early in the third quarter of 2022.
Sigma Lithium is currently in construction at its wholly owned Grota do Cirilo project in Brazil, which includes a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas.
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