Sigma Lithium NPV from 5 bln to $15 bln Sigma Lithium published absolutely insane numbers though I'm skeptical about price forecast 60k per ton next 3-4 years.
However FL can achieve the same resource quantity (77Mt) shortly, but higher quality (78% recovery vs 60%). FL Jurisdiction also far more attractive and stable North America vs Brazil.
Conclusion: FL stock is at least 2x undervalued at this stage and 8-10x for next 3-4 years.
Sigma lithium update:
Increased proven and probable mineral reserves by 63% to 54.8 Mt of lithium spodumene, while maintaining high grade at 1.44% lithium oxide.
• Total Project measured and indicated mineral resources (inclusive of reserves) increased to 77.0 Mt grading 1.43% lithium oxide and 8.6 Mt of inferred mineral resources grading 1.43% lithium oxide.
• Increased Project life to 20 years (at the current planned production rate).
HIGHLIGHTS OF PLANNED PRODUCTION EXPANSION
• Sigma Lithium announces positive economic results of its study to potentially triple integrated production (the “Production Expansion Study”) of Battery Grade Sustainable Lithium Concentrate from 270,000 tpa (36,700 tpa LCE) commencing in 2023 to 768,000 tpa (104,200 tpa LCE) in the second year at the Company’s 100% owned Grota do Cirilo Project (the “Project”).
• The Project expansion may potentially position Sigma Lithium as one of the world's largest fully integrated lithium producers (from mine to lithium materials).
• The Production Expansion Study demonstrated robust Project economics, highlighted by an after- tax NPV8% of US$ 15.3 billion, incorporating production from Phase 1 (nearing commissioning initiation) combined with Phase 2 and Phase 3.