Sigma Lithium undergoes strategic review

Sponsored by Lithium Chile

Sigma Lithium undergoes strategic review

Sigma Lithium (TSXV: SGML) is officially undergoing a strategic review following several strategic proposals for the company and its flagship project, the Grota do Cirilo Project in Brazil. The review process is said to be advised by BofA Securities and BTG Pactual in Brazil.

The strategic proposals are said to include interest from potential strategic partners, which includes “global industry leaders in the energy, auto, batteries and lithium refining industries.”

Sigma was vague in nature in reporting these offers, suggesting that some include offers for just the project or the subsidiary that holds the project, while some include offers for the company as a whole, implying a potential buy-out.

You can read more on the matter here.

Lithium Chile is an exploration and lithium resource company with a property portfolio consisting of 111,978 hectares in Chile and 20,800 hectares in Argentina. The company’s flagship asset, Salar de Arizaro, was just revealed via a PEA to have an after-tax NPV(8%) of US$1.1 billion. The project boasts an IRR of 24.1%, and a payback period of just 3.6 years based on annual production of 25,000 tonnes of LCE.

What’s going on?

  • Birkenstock Files For $8 Billion IPO (theDeepDive)

  • US CPI Unexpectedly Rises 3.7% in August Thanks to Surge in Gasoline Prices (theDeepDive)

  • China Flags ‘Security Incidents’ With iPhones as Bans Expand (Bloomberg)

  • Binance.US Sees CEO Resign, Cuts Third Of The Workforce, Then Blames The SEC (theDeepDive)

  • Trudeau’s G20 Weekend: Canadian PM Contributes… ‘Gender Language’ to Final G20 Leaders’ Declaration (theDeepDive)

  • Kim Jong Un meets Putin in Russia as missiles launch from North Korea (Reuters)

  • The Trudeau Government Spent Millions in Grants for Developing Insect-Based Food (theDeepDive)

  • Saskatchewan Accuses Trudeau of Damaging India Relations and Trade Talks (theDeepDive)

  • Lax testing fuelled wave of cough syrup poisonings (Reuters)

  • World’s Biggest Lithium Reserve Discovered In Nevada, But Is It Really Economically Viable? (theDeepDive)

  • Tin Producer Minsur Launches Digital Tracing System For Conflict-Free Metals (theDeepDive)

What’s the latest?

  • US Inflation: Inflation in the United States rose in August due to higher gasoline prices, but economists believe this increase is temporary. Excluding energy costs, inflation has continued to decline. The Consumer Price Index increased by 3.7% year-on-year in August, up from 3.2% in July.

  • UAW Strike Nears: The United Auto Workers union is still seeking substantial pay increases as labor negotiations with the Detroit Big Three automakers continue, just a day before the expiration of four-year labor deals. The UAW is considering targeting specific plants for work stoppages, potentially forcing production halts. The union is now seeking 40% total hikes.

  • Ukraine Hits Russia’s Naval Fleet: Ukraine has reportedly struck Russian naval targets and port infrastructure in Sevastopol, Crimea, marking one of the largest attacks in the ongoing conflict. The strike was confirmed by both Ukraine and Russia. Russia's defense ministry stated that Ukraine damaged two military vessels undergoing repairs.

  • SpaceX Optimizes Starlink: SpaceX is no longer subsidizing the cost of its Starlink antennas as it has reduced production costs, said Jonathan Hofeller, SpaceX's Vice President of Starlink and Commercial Sales. Starlink's user terminals, which initially cost around $3,000 each to manufacture, are now below $600 each.

  • Policy Gone Wrong: The Peel District School Board in Mississauga has faced criticism for an equity-based book weeding process, initiated to ensure library books are inclusive. Some schools have reportedly removed thousands of books published before 2008, raising concerns about erasing valuable history and diversity. While the PDSB has defended its process, questions remain about how the equity-based weeding process is interpreted and applied from school to school.

The polarizing path of progress

The stock market and stuff

  • Sigma Lithium Reviewing Strategic Alternatives Following Multiple Offers (theDeepDive)

  • Binance.US Sees CEO Resign, Cuts Third Of The Workforce, Then Blames The SEC (theDeepDive)

  • Sam Bankman-Fried Wants Out Of Prison Because Internet Connection Is Terrible (theDeepDive)

In the juniors

  • Infinity Pharmaceuticals receives delisting determination letter from Nasdaq (SA)

  • DiagnaMed Expects Brain Health AI Platform To Be Commercialized In Q4 2023 (theDeepDive)

  • Golden Tag proposes name change to Silver Storm Mining (SA)

FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.