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22 Nov 2022
On November 13, Synergy Capital participated in the “Environmental and Social Sustainability in Electric Vehicles' Battery Materials” workshop at the World Climate Summit held during COP 27 in Sharm El Sheikh, Egypt. The World Climate Summit is the leading forum for business and investment-driven solutions to climate change, recognised as the most important official COP side event.
Sudhir Maheshwari, Managing Partner, and Gonzalo Waldman, Partner, shared the investment considerations and thought process that led to Synergy Capital's anchor investment in Sigma Lithium.
At the time, lithium was starting to recover from a multi-year downturn, and the firm conducted a detailed analysis that covered asset quality, operational and licensing risks, and management team capabilities and integrity.
Sigma Lithium scored at or near the top in all categories.
It was also unique among its peers in the integration of environmental and social considerations since the inception of the company, often resulting in costly decisions like sacrificing 25% of the reserves located at the Xuxa deposit (worth over US$500 million or approximately 10% of Sigma's NPV per the Technical Report filed on May 26, 2022) to protect a seasonal water stream used by subsistence farmers. While Sigma may not have afforded to do this if the company did not own one of the top-3 lithium deposits in the world, it provided evidence of holistic and long-term thinking that gave us confidence that management would have the capability and will to tackle unforeseen problems successfully during our investment period.
We are extremely pleased that our multi-year partnership with Sigma Lithium is approaching a major milestone, as the company is set to start lithium production in a few months.
As Dubai prepares to host COP 28, we stand ready to partner with more companies where we can help unlock value and present as success stories next November. For inquiries and more information, please visit us at www.synergycapital.co.uk or email us at info@synergycapital.co.uk.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma Lithium is currently in construction at its wholly owned Grota do Cirilo Project in Brazil, which includes a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas. Sigma Lithium has been at the forefront of environmental and social sustainability in the EV battery materials supply chain. For more information about Sigma Lithium, visit www.sigmalithiumresources.com