Sigma Lithium Misses Q4 Revenue Expectations But Delivers 127% Growth Sequentially

Sigma Lithium Corporation SGML reported fourth-quarter revenue of C$67.206 million, missing the consensus of C$73.025 million.

In USD, total revenues of $47.3 million for the quarter rose 127% sequentially. EPS loss was $0.08 for the quarter.

After upgrading the Greentech Plant with a new ultrafine circuit, the company became more efficient and boosted production by 28% in the quarter, reaching 77,034 tonnes. Sigma Lithium sold 73,900 tonnes of its Quintuple Zero Green Lithium concentrate.

By December 31, 2024, short-term debt increased to $60.3 million, with total debt reaching $173.6 million.

In the quarter, the company significantly reduced costs through improved efficiency and scale, lowering CIF China cash operating costs by 17% to $427 per tonne and reporting all-in sustaining costs (AISC) of $592 per tonne.

Sigma Lithium reported a cash gross margin of 42% and an Adjusted EBITDA of $12.3 million, with a 26% EBITDA margin, highlighting strong profitability and operational efficiency.

“We are undergoing a transformational period as we accelerate our growth to become one of the world's leading integrated industrial-mineral lithium oxide producers. As we increase production volume, we see opportunities to further monetize economies of scale," commented Ana Cabral, Co-Chairperson and CEO.

Cabral added, “We are simultaneously constructing our second Greentech Industrial Plant to double our production capacity in 2025, while entering the planning stages for a third Greentech production line. This expansion, coupled with our disciplined approach to capital deployment and industry-leading low capex intensity, positions Sigma Lithium for sustainable long-term growth.”

Outlook: For 2025, SGML expects to maintain CIF China cash operating costs at $500/t and AISC at $660/t, reflecting a conservative outlook based on 2024 performance.

The company expects to produce at least 270,000 tonnes of its Quintuple Zero Lithium Concentrate in 2025, averaging around 67,500 tonnes per quarter.

Price Action: SGML shares closed lower by 0.35% at $11.50 on Friday.