Sigma Lithium (SGML) Hits 2-Year High as MidEast Tensions Spark Rosy Prospects

Sigma Lithium Corp. (NASDAQ:SGML) is one of the 10 Stocks With Double-Digit Returns.

Sigma Lithium kicked off the trading week soaring to a new two-year high, as investors continued to load portfolios in industries seen to benefit from the uncertainties in the Middle East.

The stock climbed to a record high of $21.80 before trimming a few cents to finish the session just up by 10 percent at $21.69 apiece.

Photo from Sigma Lithium website

Investors resumed buying positions in lithium stocks amid the spike in demand for electric vehicles, with global crude oil prices jumping by 5 percent anew during the day after the US and Iran ordered the Strait of Hormuz shut again.

As of writing, the benchmark crude oil prices Brent and WTI have jumped by 5.23 percent and 5.84 percent to $95.11 and $88.75 per barrel, respectively.

Since the start of the war, online car marketplaces have reported a spike in demand for EVs as consumers look for alternative transportation modes to mitigate risks from the higher global crude oil prices, sparking rosy prospects for Sigma Lithium Corp. (NASDAQ:SGML), a leading producer of lithium oxide concentrate, which is essential for the production of batteries, among others.

Earlier this month, Sigma Lithium Corp. (NASDAQ:SGML) successfully raised $100 million in fresh funds from a collateralized bank guarantee.

The lithium maker said proceeds from the loan would support the construction and installation of its Greentech Industrial Plant 2, in line with goals to upsize its nameplate capacity to 520,000 tons from 270,000 tons.

Sigma Lithium Corp. (NASDAQ:SGML) said the guarantee will be collateralized by its clients through a blend of corporate guarantees, letters of credit, and export receivables to be mutually agreed upon amongst the parties.

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