Sigma Lithium Corporation (TSX: SGML), a prominent global lithium producer, has released its financial results for the third quarter ending September 30, 2023.
During this quarter, Sigma Lithium achieved a significant milestone by generating revenue amounting to US$97 million, marking its inaugural revenue-generating quarter following a successful transition into a leading global lithium producer. This achievement can be attributed to the company’s focus on operational efficiency and overall discipline, resulting in low production costs, robust financial margins, and the ability to generate free cash flow.
The company reported a 56% adjusted EBITDA margin, along with a 37% net profit margin. The third quarter witnessed an average adjusted cash operating cost of $505 per tonne at the mine gate and $577 per tonne FOB Vitoria (excluding royalties), culminating in a total adjusted EBITDA of $54.6 million.
Sigma Lithium’s Greentech Plant has maintained a production ramp, consistently supporting a capacity of 270,000 tonnes of concentrate. Notably, since September, the company has achieved regular shipments of 20,000 tonnes per month. Anticipating a production volume nearing 130,000 tonnes by December 2023, Sigma Lithium is set to accomplish this through the sale of Triple Zero Green Lithium and equivalent by-products.
The successful marketing of Green By-Products, with consistent pricing at 10% of concentrate, reflects the quality of the ore product despite a soft market backdrop. Additionally, positive results from the Phase 4 and Phase 5 exploration program have been announced, suggesting the potential to increase mineral resources to 130 Mt.
As of November 1, 2023, Sigma Lithium’s strategic review remains ongoing, with the process advancing to its final rounds.
Sigma Lithium last traded at $38.01 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.