Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) reported strong first quarter 2024 results marked by strategic initiatives aimed at expanding production capacity and extending operational life in the lithium market.
The company's revenues from volumes of Quintuple Zero High Purity Lithium Concentrate sold in the first quarter reached US$49.1 million, with sales volumes totaling 52,857 tons and production volumes at 54,168 tons.
Furthermore, Sigma Lithium successfully reduced reported cash costs by 16% from the fourth quarter of 2023, with FOB cash costs at $462 per ton (approaching guidance of $420 per ton) and cash costs at the industrial plant gate averaging $397 per ton (in line with guidance of $370 per ton).
The company achieved first quarter 2024 EBITDA margins of 35.3% on pro forma EBITDA of $17.4 million generated by business conducted in the same period, along with 15.8% margins on reported first quarter adjusted EBITDA of $5.9 million.
In May 2024, the Brazil-focused lithium firm strengthened its commercial position, achieving a premium price of US$1,290 per ton, marking an 11% increase from April and an impressive 25% rise from the realized sales price in the first quarter of 2024, which stood at US$930 per ton or $1,035 per ton on a 6% basis.
In a strategic move, Sigma Lithium's board of directors finalized a decision to construct a second Greentech Industrial Plant, aimed at increasing production capacity to 520,000 tons of Quintuple Zero Green Lithium from the current 270,000 tons per year.
Additionally, the company extended the operational life to 25 years at its Grota do Cirilo industrial-mineral complex, with an industrial throughput of 520,000 tons per year. This extension was accompanied by a significant 40% increase in proven and probable mineral reserves to 77 million tonnes from the previous 54.8 million tonnes.
"During 2024, Sigma has delivered on several key milestones aimed at doubling industrial capacity by 2025,” Sigma CEO Ana Cabral told shareholders in a statement accompanying the results.
“We made the final investment decision to initiate construction of a second Greentech plant, and we extended operational life to 25 years at Grota do Cirilo by increasing our audited proven and probable mineral reserve by 40%. Our entire team is focused on the execution of this industrial and mineral capacity expansion, repeating the success of Phase 1 by delivering this second stage of operational growth on time and on budget."
Cabral also noted that the firm is progressing towards achieving “robust” cash flow generation for 2024.