Sigma Lithium (NASDAQ:SGML) +7.9% pre-market Monday after unveiling plans to nearly triple its planned production of battery grade lithium concentrate to ~100K metric tons/year of lithium carbonate equivalent by 2024 following results from a study at its Grota do Cirilo project in Brazil.
The Canadian miner said it plans to start commissioning Grota do Cirilo this month, with production by April 2023.
The company said the production expansion study showed strong project economics, highlighted by after-tax net present value at 8% of $15.3B, incorporating production from Phase 1, which is nearing commissioning initiation, combined with Phase 2 and Phase 3.
Sigma Lithium (SGML) also said it signed agreements for up to $100M in senior secured pre-export financing with Synergy Capital, one of the company's current shareholders.
The company said the project expansion could position it as "one of the world's largest fully integrated lithium producers."
Sigma Lithium (SGML) "has gained 200% YTD but remains undervalued," Manuel Paul Dipold writes in an analysis posted recently on Seeking Alpha.