Sigma Lithium shares jump as it posts first quarterly profit

Sigma Lithium (TSXV: SGML; NASDAQ: SGML) reported on Wednesday its first profitable quarter since starting production at its Grota do Cirilo mine in Minas Gerais, Brazil, in April this year.

The company reported third-quarter revenue of $97 million on sales of 38,000 tonnes of lithium concentrate and 16,500 tonnes of lithiated byproducts.

Adjusted underlying earnings (EBITDA) totalled $54.6 million, for an adjusted EBITDA margin of 56%. It also achieved a net income of $36.4 million and a net profit margin of 37%.

For the full year, the company expects lithium concentrate production of 130,000 tonnes.

Sigma said it achieved operational net-zero carbon emissions for all three of its shipments to date through the implementation of its environmentally sustainable production methods and the purchase of carbon credits.

The company said it continues to progress towards completing its definitive feasibility study and final investment decision for its second and third phase expansions at Grota do Cirilo.

The expansion would lift its processing plant’s nameplate throughput potential to 766,000 tonnes from 270,000 tonnes.

The “Greentech plant” is the first lithium facility in the world to produce chemical-grade lithium concentrate without a tailings dam and with 100% reuse of processing water.

Sigma expects to produce 270,000 tonnes of lithium concentrate in its first year of full operation – over twice the 112,000 tonnes of lithium concentrate produced in all of Brazil last year, according to the Brazilian Mining Association.

Sigma shares rose as high as $39 from $34.99 in morning trading in Toronto, before settling at $36.97. The lithium developer has a market capitalization of $4.1 billion.