The following is a summary of the Sigma Lithium Corporation (SGML) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Sigma Lithium reported revenues of $135 million in 2023 with 102k tons of material shipped at an average realized price per tonne of $1,321.

• Operating margins were strong at 67%-63% due to costs at the plant and at Port of Vitoria being $427 per tonne and $485 per tonne respectively.

• The company delivered an accounting EBITDA of $24 million, which after adjustment for non-recurring and non-cash items, increased to $49 million, and ended the year with a cash position of $109.4 million.

• They reported non-recurring expenses and an estimated run rate cash operating margin per tonne of $584, projecting to generate $158 million estimated cash operations in 2024 and $249 million mid-cycle.

• Net cash position dropped by approx $30 million in Q1, but unutilized trade lines left them with a net position of $110 million in long-term debt plus unused trade finance lines.

Business Progress:

• Sigma Lithium expanded their production capacity from 270k tons of lithium concentrate per year to 520k tons, becoming the fourth largest mineral industrial lithium complex globally.

• The company successfully delivered Phase 1 on budget and on time, and increased project life to over 25 years.

• Sigma has initiated the construction to double production capacity to 520k tonnes per year, which can be started immediately with the available cash.

• Their strategic partnership with Glencore provides them with significant trade finance and marketing/commercial expertise.

• Looking forward, the company has plans to go into lithium sulfate production using Brazil's low-cost energy resources and has plans to reduce operating costs as Phase 2 ramps up.

• Sigma's pricing for Q4 was comparable to Q1, despite some fluctuations. The company is on track to become the third largest lithium industrial mining complex in hard rock.

More details: Sigma Lithium IR

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