The Breakdown of Fourth-Quarter FY23 Results
Sigma Lithium Corporation shares have seen a significant uptick following the company’s reveal of fourth-quarter FY23 outcomes. The firm made a Final Investment Decision (FID) to amplify its production of Quintuple Zero Green Lithium, propelling its stock prices upwards.
Financial Performance Highlights
The company reported a robust revenue of $37.7 million in the quarter, bolstered by three substantial shipments of Quintuple Zero Green Lithium concentrate totaling 64,670 tonnes. However, the revenue was slightly influenced by a $30 million adjustment, partly due to a dip in lithium prices. The average realized price of shipped concentrate stood at $1,067 per tonne.
On a recurring basis, Sigma Lithium approximates its quarterly cash operating costs to hover around $384 per tonne, with $455 per tonne Free On Board (FOB) Vitoria. Adjusted EBITDA for the fourth quarter tallied at $31.3 million, with a net loss of $(9.5) million and an EPS loss of $(0.08).
Operational Investments and Future Projections
The company invested $6.5 million in capital expenditures during the quarter, primarily directed towards enhancing efficiency in its Greentech Plant. Sigma Lithium managed to generate around $30 million in free cash flow.
Looking ahead, Sigma Lithium is eyeing a $100 million capital expenditure for Phase 2 Industrial Greentech Plant to ramp up total annual lithium capacity to 520,000 tonnes of Quintuple Zero Green Lithium by 2025, an increase of 250,000 tonnes. This growth trajectory is expected to fuel the power needs of approximately 1.8 million electric vehicles.
Strategic Initiatives and Share Performance
The Board of Directors greenlit the commencement of construction for a second line at the Greentech Industrial Plan, with a capital outlay of $100 million. Despite a delay in filing its annual information form and annual report due to audit procedures, Sigma Lithium remains bullish on its growth prospects.
As of the latest check, SGML shares are up 6.67% at $13.83 on Monday.
