Sigma Lithium (SGML) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly production of 77,000 tons of green lithium in Q4, a 28% increase over the previous quarter, and 29% higher sales volumes to 73,900 tons, both above guidance.

• Average realized price in Q4 was $900/ton CIF China, outperforming spot prices and market benchmarks.

• Plant 2 construction is on schedule for Q4 2025 commissioning, fully financed by a BNDES loan covering 99% of capex, leveraging existing infrastructure for faster, cost-effective build-out.

• Updated NI 43-101 Technical Report supports a 22-year operational life and a 40% increase in mineral reserves to 76.4 Mt at 1.29% Li₂O.

• Maintained over 600 days without a lost time injury, with a TRIFR ratio 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%.

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

• All-in sustaining cost (AISC) reached $592/ton in Q4, down 22% quarter-on-quarter; plant gate cost at $318/ton and CIF China cost at $427/ton.

• Cash position at year-end was $46 million, supported by improved working capital and reduced short-term debt costs to $19/ton.

• Net loss for FY24 was $51.4 million, with an EPS of ($0.46).

Outlook and guidance

• FY2025 production guidance is 270,000 tons, with expansion to 520,000 tons in FY2026 as Plant 2 comes online.

• 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; for FY2026, $63M to $244M.

• Plant 2 commissioning expected to begin in Q4 2025, with full ramp-up in 2026.

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