- Sigma Lithium (TSXV:SGML) reveals its Q3 2024 operating and financial results, highlighting the production of 60,237 tons of quintuple zero lithium concentrate, surpassing its 60,000-ton guidance
- The company also generated US$34 million in operating cash flow, reduced debt by $40 million, and ended Q3 with $66 million in cash.
- Sigma Lithium also secured a financing agreement with BNDES for Plant 2 expansion, de-risking future growth
- Shares of Sigma Lithium are down 11.25 per cent to C$16.48 as of 12:06 p.m. ET
Sigma Lithium (TSXV: SGML) reveals its Q3 2024 operating and financial results, noting it exceeded production and sales guidance while continuing to advance its expansion plans.
In a news release, the company reported robust growth in both production and sales, alongside strong cash flow generation, which supports its ongoing development initiatives.
Key Highlights from Q3 2024
- Strong Operational Performance: Sigma Lithium produced 60,237 tons of Quintuple Zero Lithium Concentrate in the third quarter, surpassing its production guidance of 60,000 tons. The company also increased its shipping cadence to nearly monthly volumes of 22,000 tons sold, resulting in total sales of 57,483 tons, a 9 per cent increase compared to the previous quarter.
- Efficient Cost Management: The company maintained one of the lowest cash unit operating costs in the lithium industry, with the CIF China price averaging US$513 per ton slightly lower than the $515 per ton recorded in the second quarter of 2024. The company’s average CIF sales price for the quarter stood at $820 per ton.
- Healthy Financial Position: Sigma Lithium generated $34 million in operating cash flow during the third quarter, strengthening its financial position with a cash balance of $66 million at the end of the period. The company also used the strong cash flow to reduce its debt by $40 million, further improving its balance sheet.
“We are pleased with our strong operational performance in Q3, which underscores the robustness of our Greentech industrial plant and our ability to meet market demand,” Calvyn Gardner, CEO of Sigma Lithium, said in a news release. “Our ability to consistently exceed our production and sales guidance, while maintaining industry-leading cash costs, demonstrates the efficiency of our operations. We are also excited about our continued progress on Plant 2 and the successful completion of our financing with BNDES, which significantly de-risks our expansion plans.”
Sigma Lithium also continues to progress on its expansion plans, including the construction of Plant 2. The company has signed a final development loan agreement with BNDES (Brazilian Development Bank), which will fully finance the plant’s expansion.
This expansion is a key part of Sigma’s growth strategy to meet the increasing global demand for sustainable lithium, driven by the growing electric vehicle market.
With Q4 2024 now underway, Sigma Lithium remains on track for fourth-quarter production and sales volumes of at least 60,000 tond, continuing its momentum in the final quarter of the year. The company’s commercial strategy has been adapted to capitalize on seasonal restocking trends and weather seasonality, positioning Sigma to outperform market price benchmarks in the coming months.
Sigma Lithium is focused on environmentally sustainable lithium concentrates in Minas Gerais, Brazil. The company’s flagship Greentech industrial plant produces high-quality lithium concentrate, with an emphasis on sustainable and responsible mining practices. Sigma is advancing its Plant 2 expansion to meet growing demand for lithium in the electric vehicle and energy storage sectors, making it well-positioned for long-term growth in the global lithium market.
Shares of Sigma Lithium are down 11.25 per cent to C$16.48 as of 12:06 p.m. ET.
Join the discussion: Find out what everybody’s saying about this stock on the Sigma Lithium Bullboard investor discussion forum, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image: Shutterstock)
