Sigma Lithium Boosts Production and Lowers Costs in Q3
Sigma Lithium, a major lithium producer, reported strong operational progress for the third quarter, achieving its production target and maintaining some of the lowest cash unit operating costs in the lithium industry. During Q3, Sigma produced 60,237 tons of its Quintuple Zero Lithium Concentrate, a 22% increase from the previous quarter and slightly above its forecast of 60,000 tons. The company set multiple daily production records and saw sustained operations exceeding 860 tons per day. For Q4, Sigma projects at least 60,000 tons of lithium concentrate production.
Increased shipping efficiency allowed Sigma to boost its sales, with a quasi-monthly shipment cadence of around 22,000 tons. During the quarter, Sigma completed two full 20,000-ton shipments and supplemented that with 13,483 tons sold from a customs warehouse. Overall, the company sold 57,483 tons of its Quintuple Zero Green lithium, up 9% quarter-over-quarter, while maintaining an average cost, insurance, and freight (CIF) price in China of $513 per ton.
The company also benefited from lower borrowing costs, with export trade finance interest rates falling from 15.5% to 9% over the year. Sigma expanded its distributor network, adding three new distributors across Europe, Japan, Singapore, and the UAE. This new strategy allowed Sigma to capitalize on industry restocking trends, reduce risks tied to seasonality, and achieve higher prices than market benchmarks.
Sigma also made progress on its phase 2 Greentech Plant expansion, completing the clearing of terrain in preparation for future development. The company anticipates a 12-month build and commissioning timeline for this phase, with capital expenditures budgeted at $90 million. Sigma ended the quarter with $65.6 million in cash and $32 million in cash flow, which allowed it to pay down export credit debt.
CEO Ana Cabral emphasized that Sigma's operational and financial resilience is transforming the company from an emerging player into a leading lithium producer. The company delivered on all its climate goals ahead of schedule, reaching Net Zero one year earlier than planned, and it remains focused on building long-term value through its Quintuple Zero Green Lithium.
