Sell Half of Sigma Lithium
On March 22, we purchased a conservative position in Sigma Lithium (SGML), a Canadian company that develops, through its subsidiary Sigma Mineracao S.A., hard-rock lithium deposits in the Americas.
Some of the lithium miners, including Sigma, have had nice run-ups this week on the back of the broader metals market rally. Also boosting sentiment for the lithium producers was a Tuesday, March 22 report from consultancy Wood Mackenzie, which cautioned that battery supply would remain tight this year and that global lithium-ion battery capacity could rise five-fold by 2030.
Also on Tuesday, the U.S. Energy Department announced it would invest millions in a battery-making program in Appalachia as part of the government’s plan to build an independent national supply chain for battery metals that’s necessary for the transition to “green” energy.
Sigma has since rallied by 14% since our initial entry into the stock, which means it’s time to lock in some profit based on the rules of our trading discipline. Therefore, I now suggest selling half of our stake in SGML and raising the stop-loss in the remaining position to slightly under 12 (closing basis). SELL A HALF