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Sigma Lithium 1Q 2024 Results: May Shipment Prices Increase 25%, Production Costs Low

Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34), a leading global lithium producer, has announced its first quarter results for 2024. The company has reported significant achievements in production and cost metrics.

First Quarter 2024 Highlights

Sigma Lithium achieved a premium price for May shipments at USD $1,290/t, marking a 25% increase from the first quarter realized sales price. The company’s FOB cash costs stand at $462/t, with industrial plant gate costs averaging $397/t, one of the lowest in the industry.

Revenue and Sales Performance

The company reported revenues totaling $49.1 million from sales volumes of 52,857/t in the first quarter. Production volumes reached 54,168/t, with robust EBITDA margins: 35.3% on pro forma EBITDA of $17.4 million and 15.8% on adjusted EBITDA of $5.9 million.

Cost Reduction and Profit Margins

Sigma Lithium successfully reduced its reported cash cost by 16% from 4Q23. FOB cash costs averaged $462/t and plant gate costs at $397/t. Adjusted EBITDA for the first quarter was $5.9 million, reflecting a margin of 15.8%. Reported quarterly EBITDA was $3.1 million.

Phase 2 Expansion and Future Plans

On April 1, 2024, the Board of Directors announced the Final Investment Decision for the Phase 2 Greentech Plant expansion. This project is expected to add 250,000 tonnes to the current 270,000-tonne Phase 1 operation, with commercial production anticipated in 2Q25.

Operational Life Extension

Sigma Lithium has extended the operational life to 25 years at the Grota do Cirilo complex by increasing proven and probable mineral reserves to 77 million tonnes from 54.8 million tonnes.

Financial Insights

The company ended the first quarter with $108.2 million in cash and cash equivalents, a significant increase from $48.5 million at the end of December 2023. Capital expenditures in the first quarter were $5.6 million, aimed at maintaining and boosting production.

Ninth Shipment and Market Outlook

Sigma Lithium has finalized pricing for its ninth shipment of Quintuple Zero Green Lithium concentrate scheduled for the week of May 20, 2024. The 22,000/t shipment is priced at $1,290/t, reflecting an 11% increase over the April shipment. The company is optimistic about the continued recovery of the lithium concentrate market and robust demand for its products.

For more details on Sigma Lithium, please refer to their third-party reports and filings available on SEDAR and EDGAR.

About Sigma Lithium

Sigma Lithium is a leading global lithium producer dedicated to powering the next generation of electric vehicle batteries with carbon neutral, socially and environmentally sustainable chemical-grade lithium concentrate.

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