Sigma Lithium (SGML) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 production of 77,000 tons, a 28% increase, and sales of 73,900 tons at an average price of $900/ton CIF China, both above guidance.

• Operational improvements, including new ultrafines reprocessing and dry stack tailings, boosted output and efficiency without expanding the mining footprint.

• Plant 2 construction is progressing on schedule for Q4 2025 commissioning, fully financed by a BNDES loan covering 99% of capex.

• Updated NI 43-101 Technical Report supports a 22-year operational life and a 40% increase in mineral reserves to 76.4 million tonnes.

• Maintained over 600 days without a lost time injury, with a TRIFR of 2.35, reflecting a strong safety culture.

Financial highlights

• 4Q24 revenue was $47.3 million, up 127% sequentially, with a cash gross margin of 42% and adjusted EBITDA margin of 26%.

• FY24 underlying revenue reached $181 million, with a 41% cash gross margin and 25% adjusted EBITDA margin.

• 4Q24 AISC was $592/ton, down 22% quarter-on-quarter; plant gate cash cost was $318/ton, and CIF China cash cost was $427/ton.

• Cash and cash equivalents at year-end totaled $46 million.

• Net loss for FY24 was $51.4 million, or $(0.46) per share.

Outlook and guidance

• FY2025 production guidance is 270,000 tons, with Plant 2 expected to begin commissioning in Q4 2025 and total capacity to reach 520,000 tons in FY2026.

• FY25 cost guidance: CIF China cash costs of $500/ton and AISC of $660/ton; AISC forecasted at $668/ton for FY25 and $531/ton for FY26.

• Cash flow forecasts for FY2025 range from $140M to $192M depending on realized prices.

• Interest payments expected to remain at ~$78/ton in 2025, with a sharp reduction anticipated in 2026 as Plant 2 ramps up.

• Forecasts for 2025 are considered conservative, based on already achieved Q4 cost levels.