Sigma Lithium Sells 150,000t Lithium Fines at $140/t, BofA Upgrades to Neutral
BofA Securities upgraded Sigma Lithium to Neutral with a $14 price target following its mining operations restart that reduces production delays risk. On February 13, the company sold 150,000 tonnes of high-purity lithium fines at $140 per tonne, with an option on 350,000 more, boosting liquidity via pre-payments.
1. BofA Upgrade and Mining Restart
BofA Securities upgraded Sigma Lithium from Underperform to Neutral on February 3, maintaining a $14 price target, citing the restart of mining operations at its Grota do Cirilo project in Brazil that lowers the risk of further production delays and operational setbacks.
2. Sale of Lithium Fines Contract
On February 13, Sigma Lithium agreed to sell 150,000 tonnes of lithium fines containing 1% lithium oxide at $140 per tonne, with the buyer granted an option to acquire 350,000 additional tonnes at market prices upon delivery at the Port of Vitoria, reflecting strong demand for its low-grade product.
3. Liquidity and Production Implications
The transaction includes pre-payments under a production-backed revolving facility, enhancing near-term liquidity, while the high-purity material processed through the Greentech Plant enables clients to achieve up to 60% recovery in reprocessing into higher-grade concentrate, reinforcing Sigma Lithium’s commercial and sustainability credentials.