Sigma Lithium (NASDAQ:SGML) shares are up in the double digits today after the mining company and its subsidiary Sigma Brazil received multiple strategic proposals from global companies.
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The proposals are related to the Canadian parent (Sigma Lithium), Sigma Brazil, and the Grota do Cirilo project. The companies’ boards are evaluating the proposals, which differ in nature and structure.
Any decision over the outcome of the strategic process is expected to be made at a shareholders’ meeting of Sigma Lithium, and a majority of its minority shareholders will be required for a deciding vote.
Furthermore, Sigma expects to conclude the strategic process this year but has not set a definite timetable for the completion of the process. The Grota do Cirilo project in Brazil is currently in the production stage, and Phase 1 is expected to produce 270,000 tonnes of triple zero green lithium annually. Additionally, Phase 2 and Phase 3 of the project are expected to take annual production to 766,000 tonnes.
Overall, the Street has a consensus price target of $47.82 on SGML, alongside a Strong Buy consensus rating. This implies a massive 49% potential upside in the stock.
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