Sigma Lithium's Q4 and FY24 Results Show Impressive Growth and Sustainable Practices

Sigma Lithium Reports Strong Financial Results for Q4 and FY24

Sigma Lithium Corporation has delivered remarkable results for the fourth quarter (Q4) and full year (FY) 2024, showcasing a robust operational performance with significant cost reductions, record production volumes, and strong profitability.

Key Financial Highlights

During Q4 2024, Sigma Lithium achieved a cash operating margin of 42%, reflecting the company’s commitment to optimizing operational efficiency. The adjusted EBITDA margin in this quarter reached 26%, underpinning a strong financial performance that is poised for growth amidst increasing demand for lithium in electric vehicle batteries.

For FY 2024, the underlying revenue reached an impressive $180.6 million, while total revenues, after accounting for provisional price adjustments from the previous year, totaled $151.4 million. This increase in revenues is attributed to a swift rise in production volumes, particularly in the Quintuple Zero Lithium Concentrate, which saw a substantial 28% increase over the previous quarter, totaling 77,034 tonnes. With a significant expectation of production reaching 270,000 tonnes in FY 2025, Sigma is well-positioned for future growth.

Record Production and Sales

Sigma Lithium has reported remarkable improvements in both production and sales. In Q4, the company saw production of over 77,000 tonnes of lithium concentrate, contributing to a total sales volume of 73,900 tonnes in the same period. These results highlight the effectiveness of Sigma's Greentech Industrial Lithium Plant, which has operated at increased efficiencies due to innovative processing technologies.

CEO Ana Cabral emphasized the company’s focus on sustainability and innovation, stating, "We are simultaneously constructing our second Greentech Industrial Plant to double our production capacity in 2025, while entering the planning stages for a third Greentech production line. This expansion aligns with our disciplined approach to capital deployment and industry-leading low capital expenditure intensity, ensuring long-term growth."

Cost Reductions and Future Guidance

The company has successfully implemented significant cost reductions as well. The cash operating costs for CIF (Cost, Insurance, and Freight) to China decreased remarkably by 17%, totaling $427/tonne in Q4 2024. With strong operational execution, Sigma reported all-in sustaining costs (AISC) at $592/tonne for the same quarter, indicating an efficient cost structure that supports its competitive position.

For FY 2025, Sigma anticipates maintaining CIF China cash operating costs at approximately $500/tonne and AISC at $660/tonne, reinforcing its commitment to financial prudence and operational efficiency.

Plant 2 Construction and Future Prospects

Significant progress has been made on the construction of Plant 2, with all long-lead items procured and earthworks completed ahead of schedule. The company plans for commissioning to begin in Q4 2025. This expansion is expected to not only enhance production capacity but also contribute to sustainable practices in the lithium mining sector.

Technical Report and Operational Life

In conjunction with its financial successes, Sigma Lithium has published an updated NI 43-101 Technical Report, validating a mineral resource estimate of 107 million tonnes (MII) with a long operational life of approximately 22 years. This underscores the project's sustainability and viability in light of increasing global lithium demand.

Overall, Sigma Lithium’s strategic approach to enhancing production efficiency, reducing costs, and focusing on sustainable practices positions it favorably within the lithium market as demand for electric vehicle batteries continues to rise. As the company looks forward to future growth, its commitment to innovation and sustainability will be fundamental to its success.