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• Production Increase: 28% increase in production, reaching over 77,000 tons in Q4.

• Sales Volume: 73,900 tons sold in Q4, a 29% increase quarter-on-quarter.

• Average Realized Price: $900 per ton in Q4.

• All-in Sustaining Cost: $592 per ton in Q4.

• Cash and Operating Margin: 42% in Q4.

• Adjusted EBITDA Margin: 26% in Q4.

• Cash Position: $46 million in cash at the end of the year.

• Cost of Goods Sold (COGS): $433 per ton.

• Annual Production Guidance: 270,000 tons for 2025, with potential to reach 300,000 tons.

• Phase Two Production Expectation: 520,000 tons once fully ramped up.

• Financial Cost Reduction: Significant reduction in short-term debt costs.

• Net Present Value (NPV): USD $6 billion as per NI 43-101 report.

• Warning! GuruFocus has detected 6 Warning Signs with SGML.

Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sigma Lithium Corp (NASDAQ:SGML) achieved a 28% increase in production in the fourth quarter, reaching over 77,000 tons, marking their highest quarterly production to date.

• The company reported a robust financial performance with a 42% cash gross margin and a 26% adjusted EBITDA margin in the fourth quarter.

• Sigma Lithium Corp (NASDAQ:SGML) has maintained a strong safety record, achieving over 600 days without a lost-time injury.

• The company has a healthy liquidity position with $46 million in cash, supported by improved working capital efficiency.

• Sigma Lithium Corp (NASDAQ:SGML) is on track with the construction of Plant 2, which is scheduled for commissioning in the fourth quarter of 2025, promising future production increases.

Negative Points

• The company faced technical difficulties during the earnings call, which may have affected the clarity of communication.

• There is uncertainty regarding the impact of not achieving the projected 270,000 tons of production in 2025, which could affect cost structures.

• Sigma Lithium Corp (NASDAQ:SGML) is dealing with inventory absorption issues in the market, affecting pricing dynamics.

• The timing of the first loan disbursement from BNDS has been delayed, which could impact financial planning.

• There are concerns about the accuracy of financial expense calculations, as discrepancies were noted during the call.

Q & A Highlights

Q: If Sigma Lithium does not achieve the projected 270,000 tons of production in 2025 and instead produces 240,000 tons, how will this affect the per ton costs, including all-in sustaining costs and CIF China costs? A: Ana Cabral-Gardner, CEO, explained that if production falls to 240,000 tons, costs would resemble those from the second quarter of the previous year, excluding one-off items that increased costs in the third quarter. The company has already experienced such scenarios and has strategies to actively decrease costs, primarily through reducing short-term debt.