Sigma Lithium(US:SGML)2025-03-31 10:00Financial Performance - Sigma Lithium reported a cash operating margin of 42% in 4Q24 and an underlying margin of 41% for FY24, reflecting strong profitability and operational efficiency[3]. - Sigma Lithium's underlying revenue for FY24 was US$180.6 million, while reported revenue was US$151.4 million, with a significant increase in 4Q24 revenue of US$47.3 million, up 127% from 3Q24[7][8]. - Revenue for the twelve months ended December 31, 2024, was CAD 208,747, with a gross profit of CAD 44,274[45]. - The net loss for the twelve months ended December 31, 2024, was CAD 69,981, resulting in an earnings per share of ($0.63)[45]. - For the three months ended December 31, 2024, the company reported revenues of CAD 67,206, with a gross profit of CAD 21,900, resulting in a gross margin of approximately 32.5%[54]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was CAD 23,955, representing an adjusted EBITDA margin of 11%[54]. - The company’s EBIT for the twelve months ended December 31, 2024, was CAD (6,187), indicating a challenging year for operational profitability[54]. Production and Capacity - The company achieved record production of 77,034 tonnes and sales of 73,900 tonnes of Quintuple Zero Lithium Concentrate in 4Q24, marking a 28% increase in production volumes[3][8]. - The company expects to produce at least 270,000 tonnes of lithium concentrate in 2025, averaging approximately 67,500 tonnes per quarter[9]. - Sigma Lithium currently produces 270,000 tonnes of lithium oxide concentrate annually, with plans to double production capacity to 520,000 tonnes[41]. - The company is constructing its second Greentech Industrial Plant, expected to double production capacity in 2025, with initial equipment deliveries anticipated in July 2025[6][25]. - Phase 2 is now expected to reach full ramp-up in 2026, with Phase 3 following in 2027, delaying previous projections[36]. Costs and Expenditures - CIF China cash operating costs decreased by 17% to US$427/t in 4Q24, with all-in sustaining costs (AISC) at US$592/t[3][15]. - Capital expenditures for 2024 totaled US$23.8 million, with expectations for 2025 capital expenditures to reach approximately US$100 million for the Phase 2 construction[28]. - Capital expenditures (Capex) for FY2024 were CAD 23,756, significantly lower than CAD 61,623 in FY2023, reflecting a strategic reduction in spending[54]. - The company reported a pro-forma cash increase of CAD 23,688 for the year, despite a foreign exchange impact on cash held in foreign currency of CAD (14,376)[54]. - The ending cash balance for the period was CAD 45,918, down from CAD 48,584 at the beginning of the period[54]. Resource and Valuation - Sigma Lithium's updated NI 43-101 Technical Report indicates an after-tax NPV8% of US$5.7 billion and validates 22 years of operational life with a mineral resource estimate of 107Mt[3]. - Sigma Lithium's mineral resource increased by 23% to 93.2 million tonnes, with proven and probable reserves rising 40% to 76.4 million tonnes[30]. - The updated after-tax NPV for Phases 1, 2, and 3 is estimated at US$5.7 billion, a decrease from US$15.3 billion in the previous report[33]. Operational Efficiency - The company reported a significant improvement in working capital efficiency, maintaining a short-term trade finance balance of US$59.6 million as of December 2024[27]. - The company experienced a net cash used in operating activities of CAD 18,146 for FY2024, compared to CAD 23,385 in FY2023, indicating improved operational efficiency[54]. - The company reported a net cash from operating activities of CAD (24,347) for the twelve months ended December 31, 2024[47]. Environmental Commitment - The company’s operational strategy emphasizes environmental sustainability, producing net-zero carbon lithium[40]. - The company is constructing a second plant to enhance production capacity, reflecting its commitment to market expansion[41]. Debt and Financing - The company’s net borrowing for FY2024 was CAD 53,612, showing reliance on debt financing to support operations[54]. - Stock-based compensation expenses for FY2024 totaled CAD 11,172, which is a significant component of the overall expenses[54].