Remarkable Quarter in Revenue and Profitability
Sigma Lithium Corporation has achieved a milestone in Q3 2023, marking its first quarter of generating revenue. The company reported revenues of $97 million and a high net profit margin of 37%. A key driver of this was the reduction in production costs, with C1 costs falling to $1.86/lb. The company’s EBITDA margin stood at a robust 56%, with net income reaching $36.4 million. Operational efficiencies were evident with adjusted cash operating costs at the mine gate and FOB Vitoria averaging $505/tonne and $577/tonne, respectively.
Production and Exploration Enhancements
Sigma Lithium’s production at the Greentech Plant is on an upward trajectory, targeting a capacity of 270,000 tonnes of concentrate annually. The company has established regular shipments of 20,000 tonnes per month and anticipates reaching a production milestone of 130,000 tonnes by the end of 2023. This includes the sale of Triple Zero Green Lithium and related by-products. Additionally, the Phase 4 and Phase 5 exploration programs are expected to potentially increase mineral resources to 130 Mt.
Strategic Progress and Sales Achievements
The company is advancing in its strategic review process, with the final rounds scheduled for November 2023, emphasizing its commitment to sustainability. Operational advancements include an average of 49% recoveries at the Dense Media Separation plant, with an aim to sustain rates at 65%. The quarter witnessed two shipments of Triple Zero Green Lithium concentrate, totaling 38,000 tonnes, and the sale of 16,500 tonnes of ultra-fine tailings to Yahua International Investment and Development Co.
Outlook and Expansion Prospects
Sigma Lithium is gearing up to complete its Definitive Feasibility Study and Final Investment Decision for the Phase 2 and 3 expansions, which are set to substantially increase production capacity. The company is also exploring additional listings, such as on the Australian Securities Exchange, to bolster its strategic growth objectives.
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