Sigma Lithium (SGML) Q3 2024 earnings summary

Executive summary

• Exceeded 3Q24 production targets with 60,237 dmt produced and 57,483 dmt sold, maintaining operational excellence and over 440 days without lost-time accidents.

• Achieved robust operational cash flow of $34.57 million and ended the quarter with $65.7 million in cash.

• Advanced construction of Plant 2, fully funded by a 16-year BNDES loan, positioning for 100,000 t/y LCE capacity by 2026.

• Maintained industry-leading low cash costs and implemented a commercial strategy that delivered higher realized prices versus peers.

• Reached net zero emissions a year ahead of target, 27 years ahead of industry, with Quintuple Zero Green Lithium.

Financial highlights

• 3Q24 sales revenue was $44.2 million, with a provisional price adjustment of $(23.3) million, and net income of $(25.1) million.

• Cash gross margin for 3Q24 was 38%, with COGS excluding D&A.

• Adjusted EBITDA for 3Q24 was $(10.6) million, with a net loss of $(25.1) million and EPS of $(0.23).

• Maintained low CIF cash cost at $513/ton, among the lowest in the industry.

• Cash position at quarter-end was $65.7 million.

Outlook and guidance

• Expects to reach 100,000 t/y LCE capacity by 2026 through fully funded Phase 2 and planned expansions.

• 4Q24 production and sales volumes expected at least 60,000t, maintaining operational momentum.

• Phase 2 commissioning planned for Q3 2025.

• Ongoing efficiency initiatives and plant optimization expected to further reduce costs and increase production by 10–15%.

• Plans to add 20,000 tons of integrated lithium sulfate chemical capacity by 2027.