Why Sigma Lithium Shares Are Surging Today

Sigma Lithium Corporation SGML shares are trading higher after the company disclosed fourth-quarter FY23 results and a Final Investment Decision (FID) to double the production of its Quintuple Zero Green Lithium.

The company reported revenue of $37.7 million and made three shipments of Quintuple Zero Green Lithium concentrate, totaling 64,670 tonnes in the quarter.

Revenue was impacted by an adjustment of about $30 million, partly due to a lithium price decline. The average realized price of concentrate shipped in the fourth quarter was $1,067/tonne.

On a recurring, pro forma, basis, the company estimates its quarterly cash operating costs averaging $384/tonne, or $455/tonne Free On Board (FOB) Vitoria.

Sigma Lithium reported fourth-quarter adjusted EBITDA of $31.3 million and a net loss of $(9.5) million, translating into an EPS loss of $(0.08).

Capital expenditures stood at $6.5 million in the quarter, reflecting incremental investments made to Greentech Plant to boost efficiency. The company generated free cash flow of around $30 million. 

As of March 30, 2024, the company had cash and cash equivalents of $109 million and $89 million in unutilized available liquidity through trade finance agreements.

Apart from this, the company expects capital expenditure for Phase 2 Industrial Greentech Plant to be $100 million and aims to increase the total annual lithium capacity by 250,000 tonnes of Quintuple Zero Green Lithium to 520,000 tonnes in 2025. 

With this, Sigma Lithium projects to produce enough lithium concentrate to power roughly 1.8 million electric vehicles.

The Board of Directors approved the construction start of a second line of its Greentech Industrial Plan with a capital expenditure of $100 million.

Also Read: Sigma Lithium Secures Funds For Brazilian Flagship, Praises ‘Significantly Lower’ Interest Rates

Sigma Lithium disclosed a delay in the filing of its annual information form and its annual report on Form 40-F for the year ended December 31, 2023, due to the additional audit procedures required on the start of commercial production in early 2023 and the ensuing hybrid reporting of non-operating and operating quarters.

Price Action: SGML shares are up 6.67% at $13.83 on the last check Monday.