Vancouver-based Sigma Lithium Corporation (NASDAQ: SGML) (TSX-V: SGML) is preparing to send another 20,000 tonne shipment of its sustainably produced lithium to Brazil’s Port of Vitoria by October 20.
The company announced its upcoming third shipment of the “Triple Zero Green Lithium” produced at its Grota do Cirilo operation on Tuesday, but has not specified who will be receiving it. The news follows the company sending 22,500 tonnes of the product to the Swiss mining giant Glencore plc (LON: GLEN) (JSE: GLN) late last month.
“It demonstrates the capabilities and executional steadiness of our technical leadership team onsite as well as the cultural alignment of the entire company around one ethos: large-scale production with 100 per cent of tailings dry stacked and 100 per cent of water reutilized,” said the company’s CEO and Co-Founder Ana Cabral, who was recently named “Mining Person of the Year” for 2022 by the Northern Miner.
The site is fully powered by a hydroelectric plant 50 kilometres away and is the only lithium project in the world without a tailings dam. The operation prioritizes the environment and solely uses recirculated sewage water for its plant while also eliminating the need for hazardous chemicals through a dense medium separation process and utilizing biodiesel in its fleet of vehicles.
Sigma achieved its desired production capacity at Grota do Cirilo’s Greentech plant earlier this month and will now be producing approximately 270,000 tonnes of its green lithium per annum during the operation’s first phase prior to eventually being capable of producing 766,000 tonnes per year in the upcoming second and third phase.
Sigma is currently looking for a buyer
Sigma’s former Chief Operating Officer Brian Talbot left the company last month, which was followed by a drop in Sigma’s share price.
The lithium producer was founded in 2012 and met criteria for Nasdaq listing almost a decade later in 2021. Construction of Grota do Cirilo also started in 2021 prior to the company securing US$100 million in debt financing for the operation the following year.
Commercial production began at the facility in April this year when Sigma successfully produced its first green lithium.
The company is currently looking for a buyer and its shares have been on a steady decline for the past month, dropping by over 24 per cent to their current value of $39.47.
Other companies operating in South America like Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) have been increasing their production capacity and resources in recent days as well.
The company recently expanded the lithium brine resource at its flagship project in Argentina by 175 per cent and began drilling a series of new wells at the site. Lithium South’s Hombre Muerto North project is surrounded by major lithium operations being developed by established companies like Livent Corporation (NYSE: LTHM) Allkem Ltd (TSX: AKE) and POSCO (KRX: 005490) within the rich Lithium Triangle.
“With confirmation of our new 1.58 million tonne lithium resource, Lithium South is now moving from a lithium explorer to a lithium developer,” said the company’s CEO Adrian Hobkirk last month.
Lithium South shares are currently trading for $0.37 on the TSX Venture Exchange. At the end of Q2 this year, the company has no outstanding debt and a cash balance of $4.6 million.
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