The Electric Surge: Sigma Lithium Charges Ahead

Written By Michael Gary Scott

The Sparks IgnitedSGML rides the bullish wave, propelled by news of fourth-quarter FY23 results unveiling a Final Investment Decision (FID) aiming to double its Quintuple Zero Green Lithium production.

Behold, a $37.7 million revenue revelation, accompanied by three substantial Quintuple Zero Green Lithium concentrate shipments totaling 64,670 tonnes throughout the quarter.

A slight tarnish on this financial treasure chest—a $30 million deduction, attributed in part to a lithium price slump. The concentrated reality: $1,067/tonne was the average realized concentrate price in the final quarter.

On a recurring note, cost clarity reigns—the estimated quarterly cash operation cost weighs in at $384/tonne, or $455/tonne Free On Board (FOB) Vitoria.

Brace for the Earnings Storm: $31.3 million in adjusted EBITDA reveals itself, shadowed by a $(9.5) million net loss and $(0.08) EPS loss for Sigma Lithium in the fourth quarter.

Dollars dance: A show of $6.5 million in capital expenditures in the quarter; investments in the Greentech Plant to refine efficiencies bore fruit in the form of a $30 million free cash flow harvest.

March 30, 2024—the day of financial fortitude—$109 million in cash and cash equivalents, plus an extra $89 million waiting in the wings through trade finance agreements.

Looking forward, Sigma Lithium’s gaze lands on the horizon of progress—a $100 million capital expenditure awaits Phase 2 Industrial Greentech Plant, setting the stage for a 2025 production capacity surge to 520,000 tonnes of Quintuple Zero Green Lithium.

The lithium tapestry thickens—a forecasted capacity surge that could fuel the batteries of 1.8 million electric vehicles, a vision poised for electrifying momentum.

With a nod from the Directors’ Roundtable, ground breaks on a second line at the Greentech Industrial Plan, fueled by a $100 million capital investment.

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The Echoes of ProgressThe company echoes progress in securing funds for its Brazilian flagship, applauding the allure of ‘significantly lower’ interest rates.

A mark on the timeline—Sigma Lithium unveils a slight hiccup, delaying the filing of its annual information form and Form 40-F report for the year that passed. The whisper of additional audit tasks swirl around, tethered to the dawn of commercial production in early 2023, mingling operating and non-operating quarterly unveilings.

The Elevation Continues: SGML stocks set sail on a 6.67% surge, reaching $13.83 at the last stockpile check on Monday.