Sigma Lithium, a leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon-neutral, socially and environmentally sustainable lithium, announced its impressive second-quarter 2024 results. The company demonstrated remarkable operational efficiency and cost reductions, exceeding its goals ahead of schedule.
Operational Highlights
Sigma Lithium achieved significant progress in its operational performance, reaching metrics comparable to larger, more established producers. The company’s efforts focused on boosting the cadence of sales volumes for its Quintuple Zero High Purity Lithium Concentrate, also known as ‘5.0 Green Lithium.’ In the second quarter, Sigma achieved sales volumes of 52,572 tonnes of this premium lithium concentrate. Looking ahead, the company expects total production of 5.0 Green Lithium in the third quarter to reach 60,000 tonnes.
Beyond volume increases, Sigma Lithium continues to command a price premium for its 5.0 Green Lithium, maintaining an average 10% premium over other lithium producers year-to-date. This success is attributed to the company’s commitment to delivering high-quality lithium materials to leading supply chains, strengthening its commercial assertiveness and flexibility. Sigma has diversified its commercial relationships, engaging with new South Korean and Japanese industrial, trading, and battery manufacturing companies.
Sigma’s dedication to a culture of excellence and high standards is evident in its impressive employee safety and health performance. For the past year, Sigma has achieved zero fatalities and zero accidents, placing second amongst the world’s largest metals and mining companies in the ICMM (International Council on Mining & Metals) rankings.
Financial Highlights
Sigma Lithium’s financial performance in the second quarter reflected its operational success. Revenues from lithium concentrate sales reached $54.4 million, while reported revenue totaled $45.9 million. Notably, the company achieved its 2024 cost guidance ahead of schedule, with a 22% reduction in unit cash costs year-to-date, among the lowest in the sector.
Sigma’s focus on cost discipline and dynamic pricing strategies led to robust adjusted cash EBITDA margins of 29%, a significant increase from 16% in the first quarter. This strong operational performance and reliable monthly shipments provide the company with robust access to liquidity through export-linked credit lines at attractive interest rates. Sigma maintains a comfortable liquidity position with cash balances of $99 million as of August 14. Furthermore, the company successfully decreased the cost of debt linked to export financing from 15% per year in January 2024 to less than 6% per year (in USD).
Phase 2 Expansion
Sigma Lithium continues to invest in growth, with its Phase 2 Greentech Plant expansion project underway. This project, which will add 250,000 tonnes of production capacity to the current Phase 1 operation, is expected to be completed over a 12-month period. The total capex for Phase 2 is estimated at $100 million, and all necessary environmental licenses are secured.
About Sigma Lithium
Sigma Lithium is a leading global lithium producer committed to powering the next generation of electric vehicles with carbon-neutral, socially and environmentally sustainable chemical-grade lithium concentrate. The company operates at the forefront of environmental and social sustainability in the EV battery materials supply chain at its Grota do Cirilo Operation in Brazil. Sigma’s state-of-the-art Greentech lithium beneficiation plant delivers net zero carbon lithium, produced with zero dirty power, zero potable water, zero toxic chemicals, and zero tailings dams. Phase 1 of the company’s operations began commercial production in the second quarter of 2023.
Sigma Lithium is well-positioned to continue its growth trajectory, driven by strong financial performance, operational excellence, and a commitment to sustainable lithium production. The company’s focus on cost discipline, premium pricing, and expansion projects positions it as a key player in the rapidly growing electric vehicle market.
