Sigma Lithium (SGML) Q3 2024 earnings summary

Executive summary

• Exceeded production targets with 60,237 tonnes produced and 57,483 tonnes sold in 3Q24, 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 $66 million in cash, demonstrating resilience amid lithium market cycles.

• Advanced construction of Plant 2, fully funded by a $487 million BNDES development 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 market benchmarks.

• 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 operational cash flow of $34.57 million and a provisional price adjustment of $(23.3) million.

• Cash gross margin reached 38%, with COGS excluding D&A.

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

• Adjusted EBITDA for 3Q24 was $(10.6) million, with a net loss of $(25.1) million and EPS of $(0.23), impacted by non-cash adjustments.

• Cash position at quarter-end was $66 million.

Outlook and guidance

• Expects to reach 100,000 t/y LCE capacity by 2026 through fully funded Phase 2 and planned Phase 3 expansions.

• Targeting 60,000 tons in Q4 2024, maintaining production cadence and capitalizing on annual restocking trends.

• 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.