Sigma Lithium Begins Eco-Friendly Lithium Production: Are Short Sellers About To Be Squeezed?

Sigma Lithium Resources Corp. SGML announced Monday that it successfully transitioned from developer to producer of Battery Grade Sustainable Lithium Concentrate, also referred to as Green Lithium.  

According to the firm, the successful completion of Phase 1 project construction marks the fulfillment of the final important milestone in the development of the Grota do Cirilo project in Brazil.
The first shipment of high-quality Green Lithium is estimated to be over 15,000 tons, with a target date of May 2023. The Greentech Plant is anticipated to reach full production capacity by July 2023, according to the company. Green Lithium is produced at a cutting-edge Greentech lithium factory that utilizes 100% renewable energy, 100% recycled water, and 100% dry-stacked tailings. The project's first phase is set to generate 270,000 tons of Green Lithium per year

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"Sigma Lithium was created almost a decade ago and set out to prove that lithium extraction could be done in a way that is environmentally and socially responsible. Reaching this milestone from developer to producer is an incredible achievement and a testament to the many years of hard work of the entire Sigma team. We are thrilled to deliver on schedule for our supporters and partners,"said Ana Cabral-Gardner, CEO and co-chairperson at Sigma Lithium.

Short Sellers to Be Squeezed?

In March, Sigma Lithium was targeted by short-seller Grizzly Research, who argued that the company's valuations were excessively inflated and that the Groto do Cirlo Project in Brazil would require far more investment than anticipated. Grizzly Research suggested a 50-75% downside in shares of SGML. 

Despite the red flag raised by the short seller, shares of Sigma Lithium Corp. have continued to rise in recent weeks, gaining nearly 30% since the March lows. The company's stock is down 0.63% in early trading on Monday. Sigma Lithium will report its Q1 financial results on May 9, 2023. 

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SGML 1-day Price Chart: TradingView 

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