Lithium Developer Confirms High-Return Project in Brazil

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Atlas Lithium Corp. (ATLX:NASDAQ) announced the completion of a Definitive Feasibility Study (DFS) for its 100%-owned Neves Lithium Project in Minas Gerais, Brazil. The study was conducted by SGS Canada Inc. under the U.S. Regulation S-K 1300 and filed with the Securities and Exchange Commission as part of the company's Form 10-Q for the quarter ended June 30, 2025.

The DFS outlines robust financial and operational figures. Key metrics include an internal rate of return of 145%, a payback period of 11 months from the start of operations, and an after-tax net present value of US$539 million. The DFS estimates operational production costs of US$489 per tonne of lithium concentrate, a figure that places the project among the lowest-cost producers globally. The Neves Project is based on open-pit mining of near-surface spodumene and will utilize dense media separation (DMS) technology, which is known for its lower technical complexity and environmental impact.

Direct capital expenditures are projected at only US$57.6 million, with Atlas Lithium having 

already invested approximately US$30 million in a fully fabricated DMS processing plant. The company has secured US$40 million in non-dilutive prepayment agreements for its lithium concentrate and has reported additional interest from parties, including the possibility of long-term debt financing. 

Atlas Lithium was awarded the mining concession status for the Neves Project by Brazil's Ministry of Mines and Energy in May 2025, allowing for the right to mine as long as deposits exist in the area. The project benefits from proximity to key infrastructure and qualifies for tax incentives from Brazil's Superintendency for the Development of the Northeast, which reduces the corporate tax rate to 15.25%. 

Marc Fogassa, Chairman and CEO of Atlas Lithium, stated in a Company news release, "The DFS indicates potentially outstanding returns for our initial vision of developing a focused, near-term, profitable lithium production asset with minimal capital requirements." 

Marc-Antoine Laporte of SGS, a Qualified Person under Regulation S-K 1300, is responsible for the DFS. The project implementation is being supervised by Eduardo Queiroz, Atlas Lithium's Vice President of Engineering. Queiroz noted in the same release, "The DFS demonstrates the technical robustness of the Project, with proven DMS technology and comprehensive metallurgical test work validated by SGS." 

Volatile Markets and Emerging Trends Shape Lithium Mining Sector

According to a July 31 report on Stockhead, sentiment in the lithium market had shown signs of recovery despite ongoing volatility. Analysts noted that the recent price rebound appeared to be sentiment-driven, fueled in part by "perceived supply risks" such as regulatory reviews in China and the temporary suspension of mining operations.

The publication highlighted that lithium remained a nascent market characterized by "limited liquidity, few futures mechanisms and undeveloped trading infrastructure," with pricing movements often tied to speculative or policy-driven shifts rather than long-term fundamentals.

H.C. Wainwright & Co. analyst Heiko Ihle maintained a Buy rating on Atlas Lithium Corporation, citing the company's near-term transition into lithium production and strategic developments within the critical minerals sector. 

Joe Lowry, founder of advisory firm Global Lithium, stated in late July that "the lithium winter has ended," reflecting renewed optimism in the market.

At the same time, Mining reported that EV penetration had reached 50% in China and 25% in other markets, with energy storage system demand also increasing.

Forecasts cited in the report indicated 40% year-on-year growth in energy storage systems for the current calendar year. Despite these trends, industry observers described the recovery as partial and emphasized continued pricing volatility.

On August 5, Verified Market Report provided a broader overview of the lithium mining sector's current state and long-term outlook. The publication valued the lithium mining market at US$7.4 billion in 2024 and projected it would grow to US$21.4 billion by 2033, representing a compound annual growth rate of 12.7% from 2026 to 2033. 

Analyst Endorsement Underscores Atlas Lithium's Strategic Position

On August 1, H.C. Wainwright & Co. analyst Heiko Ihle maintained a Buy rating on Atlas Lithium Corporation, citing the company's near-term transition into lithium production and strategic developments within the critical minerals sector. Ihle reiterated a price target of US$18 per share, noting that Atlas Lithium's low-cost structure and favorable jurisdictional positioning make it well-suited to deliver strong long-term returns. "With Atlas' low-cost operations nearing first production, we believe that the company is well-positioned to generate strong long-term returns and provide valuable geopolitical diversification compared to other major lithium players, justifying its continued position as one of our Top Picks for 2025," Ihle stated, according to the report.

Ihle reviewed the company's modular Dense Media Separation (DMS) processing plant, already relocated to the Neves Project site in Brazil, and emphasized that the project is fully permitted and nearing operational readiness. He highlighted that Atlas secured US$40 million in nondilutive offtake prepayment agreements with strategic buyers Chengxin and Yahua and noted Mitsui & Co.'s US$30 million investment tied to offtake agreements for both phase one and phase two of lithium concentrate production. 

The report also addressed Atlas's expansion into other critical minerals through the formation of Atlas Critical Minerals, which controls approximately 575,000 acres of prospective critical minerals exploration rights. Ihle described the diversification strategy as complementary to Neves, writing, "This project complements the firm's Neves project, as we expect the near-term cash flow to support Atlas' long-term strategy of becoming a leading player in global energy transition." 

According to Ihle, Atlas Lithium's strategic advantages include low operating costs, environmentally conscious plant design, and operations in geopolitically favorable regions. He concluded that such factors make the company well-suited to operate in today's market conditions, where supply security, cost efficiency, and jurisdictional diversity are prioritized. 

Catalysts and Strategic Positioning

Atlas Lithium highlighted several operational and strategic factors that may interest investors. The Neves Project has received the operational environmental and operational permits, allowing for immediate project implementation. The company has also established offtake agreements with global partners, including Mitsui & Co. and Chinese battery material suppliers, with US$80 million in total investments split between share purchases and lithium concentrate prepayments to date. 

The Neves Project is located in Brazil's Araçuaí Pegmatite District, a key lithium-producing region often referred to as "Lithium Valley." According to the company's presentation, Atlas Lithium controls the largest hard-rock lithium exploration portfolio in Brazil. The project's location provides access to renewable energy, water resources, and highway connections to export ports. 

In addition to Neves, Atlas Lithium is advancing its 100%-owned Salinas and Clear Projects, both located near other major lithium operations. The Salinas Project is situated close to a previously acquired lithium asset in the region, while the Clear Project lies less than four miles from Sigma Lithium's operating mine.

Atlas Lithium also maintains an approximate 30% ownership stake in Atlas Critical Minerals Corp. (JUPGF:OTCQB), a separate entity with projects in uranium, rare earths, titanium, and graphite. 

According to analyst coverage referenced in the company's materials, both Heiko F. Ihle and Jake Sekelsky maintain buy ratings on the stock, with target prices of US$19.00 and US$20.00 respectively as of August 5, 2025. 

Ownership and Share Structure

About 30% of Atlas Lithium is owned by management and insiders. About 10% of the shareholders are institutional. Strategic partners hold another 11%. The rest, about 49%, is retail.  

Its market cap is approximately US$120 million. It trades in a 52-week range of US$3.54–US$12.48.