Sigma Lithium triples NPV to US$15.3B at its Grota do Cirilo project in Brazil
(Kitco News) - Sigma Lithium (NASDAQ:SGML, TSXV: SGML) yesterday reported positive economic results of its study to potentially triple integrated production of battery grade sustainable lithium concentrate from 270,000 tpa (36,700 tpa LCE) commencing in 2023 to 768,000 tpa (104,200 tpa LCE) in the second year at the company's 100% owned Grota do Cirilo project.
In its press release, the company said that the production expansion study demonstrated robust project economics, highlighted by an after-tax NPV8% of US$ 15.3 billion, incorporating production from Phase 1 (nearing commissioning initiation) combined with Phase 2 and Phase 3. The project's after-tax IRR is 1,273% and the payback period is 1 month.
"The project expansion may potentially position Sigma Lithium as one of the world's largest fully integrated lithium producers (from mine to lithium materials)," Sigma Lithium noted in a statement.
Importantly, the company pointed out that the construction of the project expansion could potentially be initiated with earthworks and ordering of long lead items in the first quarter of 2023, once a final decision is made by the company.
Sigma Lithium also announced a 63% increase in proven and probable mineral reserves to 54.8 Mt of lithium spodumene while maintaining high grade at 1.44% lithium oxide.
Furthermore, the project's total measured and indicated mineral resources (inclusive of reserves) increased to 77.0 Mt grading 1.43% lithium oxide and 12.1 Mt of inferred mineral resources grading 1.45% lithium oxide.
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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