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 industry-low costs, including a 28% YoY production increase in 1Q25 and first quarterly net income of $4.7M ($0.04/share).

• Maintained 100% uncommitted production, providing flexibility for future offtake agreements and prepayment financing.

• Plant 2 construction is fully funded by a $100M, 16-year subsidized BNDES loan at 2.5% interest, with commissioning planned for end of 4Q25.

• Achieved over 700 consecutive days without lost-time accidents, reflecting a strong safety culture.

• Mastered DMS technology, achieving over 70% lithium recovery at plant level and implemented a recycling circuit for lithium tailings.

Financial highlights

• Revenue for Q1 2025 was $48M, up 28% YoY, with cash gross margin at 35%.

• EBITDA reached $10M (21% margin); adjusted EBITDA was $11M (24% margin), up 113% YoY.

• Net income of $4.7M ($0.04/share) in 1Q25, compared to a $6.9M loss in 1Q24.

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

• Cost of goods sold per tonne was $556, up 3% YoY.

Outlook and guidance

• FY2025 production guidance reaffirmed at 270,000 tonnes, with expansion to 520,000 tonnes in FY2026.

• All-in sustaining costs expected to decrease further, targeting $427/t in 2026 as Plant 2 comes online.

• Plant 2 construction progressing, with initial equipment deliveries in 3Q25 and commissioning by end of 4Q25.

• Evaluating long-term prepayment and offtake agreements to support capital structure and Plant 2 funding.

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