Sigma Lithium (SGML) Q1 2025 earnings summary

Executive summary

• Achieved transformation into a leading global lithium producer with operational efficiency, resilience to price cycles, and a 28% YoY production increase in 1Q25.

• Maintained all-in sustaining costs among the lowest in the industry, enabling positive cash flow and short-term debt repayment.

• Achieved first quarterly net income of $4.7 million ($0.04/share) in 1Q25, compared to a $6.9 million loss in 1Q24.

• 100% of production remains uncommitted, providing flexibility for future offtake and prepayment agreements.

• Plant 2 construction fully financed by a $100 million, 16-year subsidized BNDES loan at 2.5% fixed interest.

Financial highlights

• Revenue for Q1 2025 was $48 million, up 28% year-over-year, with cash gross margin at 35%.

• EBITDA reached $10 million (21% margin); adjusted EBITDA was $11 million (24% margin), up over 200% YoY.

• Net income of $4.7 million ($0.04/share) in 1Q25, first positive quarter.

• Ended the quarter with $31 million in cash; positive cash flow enabled $10 million in short-term debt repayment.

• Cost of sales increased 19% YoY to $34 million; gross profit was $13.5 million.

Outlook and guidance

• FY2025 production guidance reaffirmed at 270,000 tonnes, with Plant 2 to double capacity to 520,000 tonnes by 2026.

• All-in sustaining costs expected to decrease from $660 to $427 per ton by 2026 as Plant 2 comes online.

• Plant 2 construction advancing, with commissioning planned for end of 4Q25 and first equipment deliveries in 3Q25.

• Company evaluating long-term offtake and prepayment agreements to optimize capital structure.

• Anticipates further reduction in interest costs per ton as production ramps up and debt is refinanced.