Sigma Lithium slams “fake news” on Brazil operations, stock rebounds

[Ben Graham]

Sigma Lithium (TSXV, NASDAQ: SGML) rebounded sharply on Friday after shutting down media reports of an “operational injunction” on its flagship mine in Brazil.

Earlier this month, several news outlets in Brazil claimed that authorities had ordered a “shutdown” of waste piles at Sigma’s Grota do Cirilo operations in Minas Gerais due to environmental and safety risks.

The company, however, calls this “fake news” created by online media “with a history of not engaging in fact checking.” According to Sigma, the “operational injunction” cited in these reports came from falsified government websites. The “fake” websites and documents, it claims, are part of a “defamatory campaign” created to benefit short sellers.

The company said it has alerted appropriate authorities, including FINRA (US Securities and Exchange Commission), and also sent notices to mainstream outlets such as Reuters that recently reported on the topic.

Sigma has yet to respond to MINING.COM’s request for commentary.

Sigma Lithium jumped as much as 17% following this update, sending its share price back to levels seen last week and taking the stock back into the green on the year. The company is trading near $14.50 in New York with a market capitalization of $1.6 billion.

Once a lithium darling, Sigma’s woes mount with 29% stock rout

Operation updates

In a further boost to investor sentiment, Sigma said on Friday it made an additional sale of 100,000 tonnes in high-purity lithium fines at market price, which has risen since its last sale.

Additionally, the Canada-based lithium miner said remobilization activities at its Brazilian mine site are proceeding as planned and expected to conclude this month.

The Grota do Cirilo operation currently has a nameplate capacity to produce 270,000 tonnes of lithium oxide concentrate on an annualized basis (or approximately 38,000-40,000 tonnes of lithium carbonate equivalent). The company is in the process of constructing a second plant to double its capacity.