Canadian oxide concentrate producer Sigma Lithium achieves record profit margins, lower cost in Q2
The largest producer of lithium oxide concentrate in the Americas, Sigma Lithium Corporation, has reported record second-quarter financial results with an earnings before interest, taxes, depreciation and amortisation margin of 47% - the highest in the company's history and 39% higher compared with the first quarter.
The Canada-headquartered company generated net revenues of $55-million from the sale of 24 400 t of lithium oxide concentrate in the second quarter, having realised a 17% higher year-on-year price of $2 089/t.
This while gross and operating margins remained high at 60% and 32%, respectively, supported by decreased costs.
Sigma explains that that its plant gate cost decreased by 36% quarter-on-quarter to $401/t while cost, insurance and freight cost decreased by 33% quarter-on-quarter to $452/t. The company's all-in sustaining cost decreased by 6% quarter-on-quarter to $668/t, owing to upgraded mine operations resulting from financial discipline and from a 50% growth in production volumes.
Sigma has managed to decrease its total debt by 25% since the second quarter of last year and remains on track to increase production to 330 000 t/y in the 2027 financial year, compared with the current rate of 240 000 t/y.
The company is increasing its installed industrial capacity by building two additional plants, which will see production increase to 580 000 t/y by the end of 2027 and further to 830 000 t/y by the end of 2028.
Sigma owns and operates the Grota do Cirilo operation in Brazil, which is one of the world's largest lithium production sites - particularly the fifth-largest industrial/mineral complex for lithium oxide concentrate globally.
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