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
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.