#Brazil #São Paulo #electric vehicles #Sigma Lithium #Lithium Production

Sigma Lithium Reports Impressive Results for 1Q25

On May 14, 2025, Sigma Lithium Corporation, a leading global producer of lithium, announced its financial results for the first quarter ending March 31, 2025. This quarter marks a significant achievement for the company, with a reported net income of $4.7 million, translating to $0.04 per share, showcasing a robust turnaround in its financial health.

Strong Production and Sales Growth

During the first quarter of 2025, Sigma Lithium achieved production volumes of 68,308 tonnes of lithium concentrate, representing a 26% year-on-year increase. This performance surpassed the company's production target for the quarter, which was set at 67,500 tonnes. Additionally, sales volumes reached 61,584 tonnes, marking a 17% increase from the same period the previous year. Despite a slight dip compared to the previous quarter, this growth highlights Sigma's commitment to scaling operations in response to increasing global demand for lithium, particularly from the electric vehicle sector.

Cost Efficiency and Margin Performance

The Company's financial metrics reveal a remarkable cash gross margin of 35%, reflecting the effective cost management strategies put in place. Sigma's operating cash costs averaged $458 per tonne for CIF China, significantly below the 2025 target of $500 per tonne. This not only underscores the company's competitive pricing in the market but also solidifies its operational efficiency, as the all-in sustaining cash costs stood at $622, again outperforming the set goals of $660.

As the firm advances its efforts towards sustainability, it maintains uncommitted production of 100%, providing it with considerable financial flexibility. This strategy ensures that Sigma can engage in attractive prepayment and offtake agreements, which remain standard practices in the lithium industry, potentially leading to significant untapped funding sources.

Future Outlook and Plant Development

Looking ahead, Sigma is in the midst of advancing the construction of its second plant, referred to as Plant 2, which is projected to greatly enhance future production capabilities. Equipment orders for long-lead items are expected to be placed shortly, with initial deliveries anticipated in the third quarter of 2025. The commissioning of this facility is planned for the end of the fourth quarter of 2025. This expansion underlines Sigma's strategic approach to meeting the increasing demand for lithium production whilst ensuring environmentally sustainable practices.

Co-Chairperson and CEO Ana Cabral remarked, “This quarter marks our first net income report, demonstrating our capacity for profitability and our strong operational execution. We are well-positioned to increase production significantly and improve our cash generation framework without sacrificing our sustainability practices.”

Furthermore, the company's robust cash position, marked by $31.1 million in cash and cash equivalents by the end of the quarter, reinforces its liquidity amidst ongoing construction and operational investments. Despite a decrease from the previous quarter, Sigma's management remains focused on balancing growth with responsible financial stewardship.

Conclusion

Sigma Lithium stands at a pivotal moment in its operational timeline. With impressive growth, cost efficiencies, and a clear direction for future developments, the company is preparing for a critical ramp-up in production that aligns with the global shift towards electric vehicle adoption and sustainable mining practices. As it continues to navigate the complexities of the lithium market, Sigma's commitment to responsibly powering the next generation of electric vehicles is evident. Investors and stakeholders alike can look forward to what the future holds for this dynamic organization.

For more information about Sigma Lithium and its initiatives, please visit Sigma Lithium’s website.