Sigma Lithium Reports 4Q24 and FY24 Results: Strong Margin Generation, Record Production and Significant Cost Reductions
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SIGMA LITHIUM REPORTS 4Q24 AND FY24 RESULTS:
STRONG MARGIN GENERATION, RECORD PRODUCTION AND
SIGNIFICANT COST REDUCTIONS
HIGHLIGHTS
FINANCIAL REPORT
• Strong operating margins: reflecting strong profitability and operational efficiency.
o Cash operating margin of 42% in 4Q24, underlying 41% in FY24.
o Adjusted EBITDA margin in 4Q24 of 26%, underlying 25% in FY24.
• Record quarterly production and sales volumes: improvements at Greentech Industrial Lithium
Plant:
o Increased production and sales of Quintuple Zero Lithium Concentrate by approximately
28% in 4Q24: over 77,000 tonnes of production and 73,900 tonnes of sales.
o Issued FY 2025 production guidance of 270,000 tonnes, reinforced by performance
achieved in 4Q24.
o A video highlighting our operational improvements is available for viewing here
• Achieved significant cost reductions: monetized economies of scale and increased efficiency.
o CIF China cash operating costs decreased 17% to US$427/t in 4Q24.
o All-in sustaining costs (AISC) totaled US$592/t in 4Q24.
o Provided FY 2025 cost guidance of CIF China cash costs of US$500/t and AISC of US$660/t.
• Strengthened Commercial Strategy in 4Q24 to align with annual restocking trends of chemical
refiners, effectively managing seasonality: achieved average sales prices of approximately
US$900/t (6% CIF China).
PLANT 2 CONSTRUCTION
• Significantly Progressed Plant 2 Construction:
o Concluded procurement of long -lead items, continued detailed engineering, completion of
earthworks and foundation construction.
o A video of construction progress is available for viewing here.
• Plant commissioning is expected to begin in 4Q25.
TECHNICAL REPORT
• Published an updated NI 43-101 Technical Report for the Grota do Cirilo operations:
o Updated After-Tax NPV8% for the operations at US$5.7 billion, at current prices averaging
US$1,000/t for the next three years of operations.
o Validated 22 years of operational life with a mineral resource estimate of 107Mt (M&I&I) at
1.40% Li2O, and a mineral reserve estimate at 76 Mt.
Conference Call Information
The Company will hold a conference call to discuss its financial results for the fourth quarter at 8:00 a.m. ET on
Monday, March 31, 2025. Participating in the call will be Ana Cabral, Co-Chairperson and Chief Executive Officer,
and Rogerio Marchini, Chief Financial Officer. To register for the call, please proceed through the following link
Register here. For access to the webcast, please Click here.
São Paulo, Brazil. March 31, 2025. Sigma Lithium Corporation (TSXV/NASDAQ: SGML, BVMF: S2GM34 ), a
leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon
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neutral, socially and environmentally sustainable lithium concentrate, reports its results for the full year ended
December 31, 2024.
Ana Cabral, Co-Chairperson and CEO, said: “In 2024, Our continued focus on innovation and the introduction of
advanced Greentech technologies, such as the new ultrafines reprocessing circuit, increased the overall
efficiency of our industrial process. As a result, we significantly increased industrial lithi um oxide concentrate
production volumes, without a concomitant increase in mining footprint, thereby simultaneously creating value for
both the environment and our shareholders.”
“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. We demonstrated operational resilience during the current lithium cycle ,
surpassing production targets , while maintaining one of the lowest cash cost positions in the industry . Our
execution track record further reinforces our ability to deliver on our targets”, she added.
The CEO concluded, “We are simultaneously constructing our second Greentech Industrial Plant to double our
production capacity in 2025, w hile 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. As we look ahead, our unwavering focus on innovation,
cost leadership, strategic part nerships, and environmental stewardship will continue to drive value creation for
our stakeholders.”
Table 1. Summary of FY 2024 and 4Q24 Key Operational and Financial Metrics
Production and Sales Unit FY2024 4Q24
Production Volumes tonnes 240,828 77,034
Sales Volumes tonnes 236,811 73,900
Average grade of shipped product % of Li2O 5.3 5.2
Average Selling Price, @6% CIF China(1) US$/t 875 900
COGS US$/t 506 434
Operating Cash Cost at Plant Gate(2) US$/t 364 318
Operating Cash Cost CIF China (2) US$/t 494 427
All-in Sustaining Cash Cost (2) US$/t 714 592
Financial Performance Unit FY2024 4Q24
Underlying Revenue(3) US$ 000 180,589 47,336
Reported Revenue US$ 000 151,352 47,336
Underlying Adjusted EBITDA(4) US$ 000 46,023 12,259
Adjusted EBITDA(4) US$ 000 16,786 12,259
Cash and Cash Equivalents, at the end of the
respective period US$ 000 45,918 45,918
Revenues and Production
Sigma Lithium reported revenues of US$151.4 million for the FY24. Revenues for the FY24 include non-cash
provisional price adjustments for the shipments realized in 2023 in the amount of US$29.2 million, reflecting
downward price settlements for these shipments. Therefore, underlying revenues , excluding these non-cash
provisional 2023 price adjustments, totaled US$180.6 million for the full year 2024.
The Company also reported total revenues of US$47.3 million for the 4Q24, an increase of 127% over the
revenues reported in 3Q24.
As a result of the improved efficiencies at the Greentech Plant, following the completion of the new ultrafines
circuit, t he Company achieved a 28% increase in production volumes in the 4Q24, reaching 77,034 tonnes.
Annual production totaled 240,828 tonnes in 2024.
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The Company expects to produce at least 270,000 tonnes of its Quintuple Zero Lithium Concentrate in 2025,
averaging approximately 67,500 tonnes per quarter.
Following the success in increasing production volumes, during the 4Q24, Sigma Lithium sold 73,900 tonnes of
its Quintuple Zero Green Lithium concent rate. As a result, the Company reported a total of 236,811 tonnes in
sales volumes for the FY24.
The Company strengthened its commercial relationship with trading companies, allowing to execute commercial
strategy in line with annual restocking trends of chemical refiners, weather ing seasonality more effectively and
outperforming market price benchmarks , achieving a verage CIF sales price for the 4Q24 of approximately
US$900/t.
In 2025, the Company will focus on optimizing further its commercial strategy by following seasonality patterns.
This will involve consolidating shipments into larger vessels and timing deliveries to align with peak demand
seasons at final destinations.
Cash Gross Margin, Adjusted EBITDA and Adjusted EBITDA Margin
Sigma Lithium reported an underlying cash gross margin (gross margin excluding non-cash 2023 provision price
adjustments and D&A expenses) of 41% for FY24 and cash gross margin of 42% for 4Q24 (gross margin
excluding D&A expenses).
For the FY24 Adjusted EBITDA totaled U S$16.8 million . Similarly to revenues, underlying Adjusted EBITDA
(excluding non -cash 2023 provisional price adjustments) for the FY24 totaled US$46.0 million, representing
underlying Adjusted EBITDA margin of 25%.
For the 4Q24, Adjusted EBITDA totalled US$12.3 million, representing an Adjusted EBITDA margin of 26% ,
reflecting strong profitability and operational efficiency.
Costs and FY25 Guidance
The Company reported cost of sales of US$119.7 million or US$506/t of sold products for the FY24. The cost
of sales totalled US$32.1 million for the 4Q24, an increase of 10% compared to the cost of sales reported for
the previous quarter as a result of significantly higher sales volumes in the quarter.
By monetizing economies of scale, the Company reported a 15% decrease in cost of sales per tonne averaging
US$434/t of sold product for the 4Q24 compared to 3Q24.
During 2024, the Company maintained its low-cost position , with CIF China cash operating costs averaging
US$494/t. In the 4Q24, the Company achieved a significant reduction in CIF China operating cash costs, totaling
US$427/t, a decrease of 17% compared to the 3Q24. This reduction was driven by economies of scale from a
substantial increase in production volumes during the quarter.
Demonstrating resilience to price cycles , AISC also saw a significant improvement at US$592/t in 4Q24,
compared to the average of US$714/t for the FY24. The decreases were primarily driven by a reduction in
financial expenses, resulting from more efficient use of working capital, and a dilution of SG&A expenses as we
scaled production.
For the 2025 business year, the Company expects to maintain CIF China operating cash cost of US$500/t with
AISC averaging US$660/t. This conservative guidance is based on the average CIF China operating cash cost
and AISC per tonne achieved in 2024.
Balance Sheet & Liquidity
As of December 31, 2024, the Company’s cash and cash equivalents totaled US$4 5.9 million. The Company’s
cash generation for the year was US$23.7 million, excluding the “non-realized” foreign exchange impact on cash
held in other currencies of US$14.4 million and the interest payments related to the previous year, as outlined
below.
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The main uses of cash during the year were:
(i) interest payments of US$31 .5 million, which included payments for two years of interest on a
long-term loan facility (US$12.0 million accrued in 2023);
(ii) Increase in working capital of US$8.8 million due to significantly higher production and sales
volumes;
(iii) Capital expenditures of US$23.8 million;
In 2024, due to the achieved operational consistency, the Company was granted substantial trade finance credit
lines by commercial banks. As of December 31, 2023, the Company had US$9.4 million in short -term debt and
US$119 million in total debt. By December 31, 2024, short-term debt increased to US$60.3 million, with total debt
reaching US$173.6 million.
Throughout 2024, enhanced operational reliability and a steady shipment schedule reduced the Company’s
export credit risk, which in turn improved the availability and lowered the interest rates on its trade finance lines.
As a result of these performance improvements, the Company increased working capital efficiency and
decreased its total financial and interest expenses per ton as follows:
• Significantly decreased interest rates on the Company’s trade finance export credit lines, from 15.5%
per year in 4Q23 to 8.7% per year in 4Q24.
• Improved working capital efficiency, maintaining a short -term trade finance balance of US$59.6 million
as of December 2024, consistent with the previous quarter, despite the significant increase in
production.
• Decreased net interest paid on short-term debt to US$19/t in 4Q24.
• Net interest paid in FY24 totaled US$19.6 million (excluding interest accrued in 2023), or approximately
US$81/t based on annual production of 240,828 tonnes.
As guidance, the Company expects interest payments to remain at similar levels of approximately US$78 /t in
2025. While we plan to ramp up production, the impact on financial costs per tonne may not be as significant, as
we expect to disburse the BNDES loan without the benefit of the additional production volumes from Plant 2.
However, by 2026, once Plant 2 is operating at full capacity, we anticipate a sharp reduction in financing costs
per tonne to US$39.
Phase 2 Expansion and CAPEX Update
In April 2024, the Board of Directors announced a Final Investment Decision for the Company’s Phase 2
Greentech Plant expansion. The project is expected to add 2 50,000 tonnes of production capacity to the
current Phase 1 operation. Importantly, the Company has already received all licenses to build and operate this
second Greentech Plant and commence mining operation at its Barreiro site , when needed . The operating
license for the Barreiro mine, the second mine within the Grota do Girlo property, was granted in December
2024.
The Company has successfully completed 100% of the foundation earthworks for the second Greentech
industrial plant, staying on schedule and within budget. The first cement has been poured, and construction has
advanced to civil works, including the completion of water drainage infrastructure for the second industrial site.
In addition, detailed engineering with technical specifications has been completed for certain key equipment
items with long manufacturing lead times (long-lead items). Procurement and contractual negotiations have been
completed, and the initial deliveries of the plant's equipment are expected to commence in Ju ly 2025, followed
by the assembly of mechanical structures.
Currently, there are more than 100 people working on the expansion project, with plans to increase the workforce
to 1,000 at peak construction. The Company has also accelerated its homecoming program with the creation of
a training center for heavy machinery operators in one of the neighboring communities.
Sigma Lithium has secured a US$100 million development bank credit line from BNDES to fully fund the
construction. The Company decided to continue advancing its construction, despite the current lithium cycle, due
to its low capital expenditure intensity (capex per tonne of capacity built). This efficiency is driven in part by the
existing infrastructure, which supports the additional Greentech Industrial Plant and enables the Company to
fast-track construction timelines while controlling costs.
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During 2024, t he capital expenditure totalled US$23.8 million, including approximately US$8.0 million of
maintenance expenses. The Company expect s the 2025 capital expenditure t o reach approximately US$ 100
million for the Phase 2 construction to be reimbursed through the BNDES development loan.
Updated Technical Report
The Company filed an updated technical report (the “Technical Report”) for its 100% owned Grota do Cirilio
lithium project supporting 22 years of operational life for the Company. The Technical Report contains an
updated Mineral Resource and Reserve Estimate, and provides revised operational cost, and economic
parameters for the Grota do Cirilo operation at Vale do Jequitinhonha in Minas Gerais, Brazil, as of January 15,
2025.
The Company’s mining resource increased by a total of 23% from the previous technical report, to 93.2 million
tonnes of measured and indicated (M&I) mineral resource at 1.40% Li2O, together with inferred mineral resource
of 13.7 million tonnes at 1.36% Li2O. Proven and Probable reserves have increased 40% to 76.4 million tonnes at
1.29% Li2O, with a revised long-term cash operating cost at Plant Gate estimate of approximately US$318 /t of
lithium oxide concentrate.
This increase in mineral resource estimates reflects only a portion of the full geological exploration potential at
Grota do Cirilo, as announced by the Company. Grota do Cirilo is one of four properties within Sigma Lithium’s
broader mining portfolio, highlighting significant further exploration and resource growth potential.
Additionally, Sigma Lithium continues to execute the mineral and metallurgical development work to further
convert its mineral resources into reserves over time. As a result, the Company expects the increase in mineral
reserve estimates to continue alongside the construction of additional Greentech industrial production lines,
ensuring that the operational life remains above 15 years.
The Technical Report also outlines an updated after-tax NPV (at 8%) for Phases 1, 2, and 3, estimated at US$5.7
billion, using Benchmark Minerals Inc.'s updated price forecast, representing a decrease from US$15.3 billion in
the previous technical report filed in January 2023. This reduction i n project NPV is not solely due to the
significant decline in lithium prices in recent years, but also reflects changes in the timeline for building the
Greentech Industrial Production Plants as follows:
• January 2023 Technical Report: Phases 2 and 3 were projected to be fully ramped up by 2024, with
production levels expected to reach approximately 700,000 tonnes that year.
• March 2025 Technical Report: Phase 2 is now expected to reach full ramp -up in 2026, with Phase 3
following in 2027.
A full copy of the NI 43-101 Technical Report is available on the Company website.
Qualified Person Disclosure
Please refer to the Company’s National Instrument 43-101 technical report titled “Grota do Cirilo Lithium Project
Araçuaí and Itinga Regions, Minas Gerais, Brazil” issued March 31, 2025, which was prepared for Sigma Lithium
by Marc-Antoine Laporte, P.Geo, SGS Canada Inc., William van Breugel, P.Eng, SGS Canada Inc., Johnny Canosa,
P.Eng, SGS Canada Inc ., and Joseph Keane, P. Eng. , SGS North America Inc. (the “Technical Report”). The
Technical Report is filed on SEDAR and is also available on the Company’s website.
The independent qualified person (QP) for the Technical Report’s mineral resource estimates is Marc -Antoine
Laporte P.Geo., M.Sc., of SGS Group in Quebec, Canada. Mr. Laporte is a Qualified Person as defined by
Canadian National Instrument 43-101.
The technical and scientific information related to mineral resource estimates in this news release has been
reviewed and approved by Marc-Antoine Laporte.
Other disclosures in this news release of a scientific or technical nature at the Grota do Cirilo Project have been
reviewed and approved by Iran Zan MAIG (Membership number 7566), who is considered, by virtue of his
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education, experience and professional association, a Qualified Person under the terms of NI 43 -101. Mr. Zan is
not considered independent under NI 43-101 as he is Sigma Lithium Director of Geology.
Mr. Zan has verified the technical data disclosed in this news release not related to the current mineral resource
estimate disclosed herein.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) is a leading global lithium producer dedicated
to powering the next generation of electric vehicle batteries with carbon neutral, socially and environmentally
sustainable chemical-grade lithium concentrate.
The Company operates one of the world’s largest lithium production sites —the fifth-largest industrial-mineral
complex for lithium oxide —at its Grota do Cirilo Operation in Brazil. Sigma Lithium is at the forefront of
environmental and social sustainability in the electric vehicle battery materials supply chain, producing Quintuple
Zero Green Lithium: net -zero carbon lithium made with zero dirty power, zero potable water, zero toxic
chemicals, and zero tailings dams.
Sigma Lithium currently produces 270,000 tonnes of lithium oxide concentrate on an annualized basis
(approximately 38,000–40,000 tonnes of LCE) at its state -of-the-art Greentech Industrial Lithium Plant. The
Company is now constructing a second plant to double production capacity to 520,000 tonnes of lithium oxide
concentrate (approximately 77,000–80,000 tonnes of LCE).
For more information about Sigma Lithium, visit our website
FOR ADDITIONAL INFORMATION PLEASE CONTACT
Irina Axenova, Vice President Investor Relations
Phone: +55 11 2985 0089
Sigma Lithium
Sigma Lithium
@sigmalithium
@SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain “forward -looking information” under applicable Canadian and U.S. securities legislation,
including but not limited to statements relating to timing and costs related to the general business and operational outlook of
the Company, the environmental footprint of tailings and positive ecosystem impact relating thereto, donation and upcycling
of tailings, timing and quantities relating to tailings and Green Lithium, achievements and projections relating to the Zero
Tailings strategy, achievement of ramp -up volumes, production estimates and the operational status of the Grota do Cirilo
Project, and other forward -looking information. All statements that address future plans, activities, events, estimates,
expectations or developm ents that the Company believes, expects or anticipates will or may occur is forward -looking
information, including statements regarding the potential development of mineral resources and mineral reserves which may
or may not occur. Forward -looking information contained herein is based on certain assumptions regarding, among other
things: general economic and political conditions; the stable and supportive legislative, regulatory and community environment
in Brazil; demand for lithium, including that such demand is supported by growth in the electric vehicle market; the Company’s
market position and future financial and operating performance; the Company’s estimates of mineral resources and mineral
reserves, includi ng whether mineral resources will ever be de veloped into mineral reserves; and the Company’s ability to
operate its mineral projects including that the Company will not experience any materials or equipment shortages, any labour
or service provider outages or delays or any technical issues. Although management believes that the assumptions and
expectations reflected in the forward-looking information are reasonable, there can be no assurance that these assumptions
and expectations will prove to be correct. Forward -looking information inherently invol ves and is subject to risks and
uncertainties, including but not limited to that the market prices for lithium may not remain at current levels; and the market for
electric vehicles and other large format batteries currently has limited market share and no assurances can be given for the
rate at which this market will develop, if at all, which could affect the success of the Company and its ability to develop lithium
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operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking information. The Company disclaims any intention or obligation to update or revise any forward -looking
information, whether because of new information, future events or otherwise, except as required by law. For more information
on the risks, uncertain ties and assumptions that could cause our actual results to differ from current expectations, please
refer to the current annual information form of the Company and other public filings available under the Company’s profile
at www.sedarplus.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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Financial Tables
The consolidated financial statements for the periods ended December 31, 2024 and 2023 were audited by the Company's
independent auditor in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards
Board.
Figure 1: Consolidated Statements of Income (Loss) Summary
Consolidated Statements of Income (Loss)
Three
Months
Ended
December
31, 2024
Twelve
Months
Ended
December
31, 2024
Three
Months
Ended
December
31, 2024
Twelve
Months
Ended
December
31, 2024
($000) CAD CAD USD USD
Revenue
67,206
208,747
47,336
151,352
Cost of goods sold & distribution
(45,306)
(164,473)
(32,079)
(119,718)
Gross profit
21,900
44,274
15,257
31,634
Sales expense
(1,655)
(3,871)
(1,167)
(2,796)
G&A expense
(5,873)
(25,215)
(4,200)
(18,418)
Stock-based compensation
(3,578)
(11,172)
(2,525)
(8,102)
ESG and other operating expenses
(2,933)
(10,203)
(2,067)
(7,398)
EBIT
7,861
(6,187)
5,298
(5,080)
Financial income and (expenses), net
(16,486)
(38,870)
(11,701)
(28,145)
Non-cash FX & other income (expenses), net
(21,133)
(45,306)
(15,138)
(32,806)
Income (loss) before taxes
(29,757)
(90,363)
(21,541)
(66,031)
Income taxes and social contribution
18,078
20,382
12,999
14,635
Net Income (loss) for the period
(11,679)
(69,981)
(8,541)
(51,396)
Weighted avg diluted shares outstanding
111,124
111,267
111,124
111,267
Earnings per share ($0.10) ($0.63) ($0.08) ($0.46)