6-K
Sigma Lithium Corp (SGML)
UNITEDSTATES****SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TORULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2024
Commission File Number: 001-40786
SigmaLithium Corporation
(Translation of registrant's name into English)
2200 HSBC Building
885 West Georgia Street
Vancouver, British Columbia
V6C3E8
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
**Note:**Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
**Note:**Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
EXHIBIT INDEX
| Exhibit | Description |
|---|---|
| 99.1 | Press release dated November 15, 2024 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Sigma Lithium Corporation | |
|---|---|
| (Registrant) | |
| Date: November 18, 2024 |  |
| Ana Cristina Cabral Gardner | |
| Chief Executive Officer |
Exhibit99.1
SIGMALITHIUM ANNOUNCES 3Q24 RESULTS: PRODUCTION BEATS GUIDANCE, MAINTAINED LOW COSTS ATTARGET, GENERATED ROBUST $ 34 MILLION OPERATINGCASH FLOW
HIGHLIGHTS
| · | Sigma Lithium achieved strong operational performance at its Greentech industrial plant. |
|---|---|
| o | Produced 60,237t of Quintuple Zero Lithium Concentrate in 3Q24, higher than the 60,000t guidance |
| --- | --- |
| o | Further increased shipping cadence to quasi monthly volumes sold of 22,000t |
| o | Sales volumes totaled 57,483t in 3Q24, increasing 9% q-on-q |
| o | Successfully executed Plant 1 efficiency capex revamp implementation |
| o | Expects 4Q24 production and sales volumes of at least 60,000t |
| · | Maintained one of the lowest cash unit operating costs in the industry, with CIF China averaging US$ 513/t, down from US$ 515/t in 2Q24. |
| --- | --- |
| · | Commercial strategy adapted to capitalize on seasonal restocking trends, weather seasonality more effectively, and outperform market price benchmarks |
| --- | --- |
| o | Average CIF sales price for the third quarter of US$ 820/t |
| --- | --- |
| · | Robust operating cash flow generation of US$ 34 million in the third quarter enabled the Company to maintain a healthy cash position of US$ 66 million at quarter-end while reducing debt by $40 million |
| --- | --- |
| · | Signed final development loan agreement with the BNDES, fully financing its plant 2 expansion, further de-risking construction |
| --- | --- |
| o | Term: 16 years with 18 months amortization grace period |
| --- | --- |
| o | Sub-Treasury Interest Rate: BRL 7.53%, or USD 2.5% at prevailing swap rates |
| --- | --- |
| · | Continued to advance Plant 2 construction with earthworks and engineering |
| --- | --- |
ConferenceCall Information
The Company will conduct a conference call to discuss its financial results for the third quarter at 8:00 a.m. EST on Friday, November 15, 2024. Participating in the call will be Co-Chairperson and Chief Executive Officer, Ana Cabral, Chief Financial Officer, Rogerio Marchini, and Executive Vice President for Corporate Affairs and Strategic Development, Matthew DeYoe. To register for the call, please proceed through the following link Register here. For access to the webcast, please Click here.
SãoPaulo, Brazil – (November 15, 2024) – Sigma Lithium Corporation NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML), a leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon neutral, socially and environmentally sustainable lithium concentrate, announces its results for the third quarter ended September 30, 2024.
Ana Cabral, Co-Chairperson and CEO said: “This quarter we achieved our production and low industry cost targets, generating robustfree cash flow and demonstrating our operational resilience to lithium cycles. We also benefited from our shifted commercial strategyto navigate industry seasonality, enabling us to secure higher average realized prices compared to benchmarks.
“Overthe last year we are proud to have transformed Sigma from an emerging producer into an industry leader, demonstrating the operationaland financial resilience of a mature producer, with dependability and consistency. Meanwhile we have delivered on all of our climategoals, reaching Net Zero one year in advance of our target and 27 years ahead of the industry, with our Quintuple Zero Green Lithium.We are confident that over the lithium cycles, our capabilities to execute to strategy will deliver long-term value for Sigma andall of its stakeholders”, Ms. Cabral concluded.
KeyPerformance Metrics for Quarter Ended September 30, 2024 (US$)
| Unit | 3Q24 | 2Q24 | ||||
|---|---|---|---|---|---|---|
| Sales Revenue for Shipents in Quarter | $ | 000s | 44,210 | 54,418 | ||
| Provisional Price Adjustment | $ | 000s | (23,316 | ) | (8,498 | ) |
| Total Sales Revenue | $ | 000s | 20,894 | 45,920 | ||
| Concentrate Sold | tonnes | 57,483 | 52,572 | |||
| Concentrate Grade Sold | 5.2 | % | 5.5 | % | ||
| Average Reported Selling Price CIF ^(1)^ | /t | 820 | 1,056 | |||
| Average Revenue per Tonne CIF ^(2)^ | /t | 415 | 894 | |||
| Unit Operating Cost CIF ^(3)^ | /t | 513 | 515 | |||
| Cash and Cash Equivalents | $ | 000s | 65,594 | 75,330 |
All values are in US Dollars.
Revenues in the third quarter totaled US$44.2 million or US$20.9 million net of provisional price adjustments.
The Company has undergone a significant evolution in its commercial relationship with trading companies, strengthening commercial conditions. As a result of this change in strategy the Company concluded the final settlement of provisional sales invoices from previous quarters conducted through our traders, generating an accounting adjustment of US$(23.3) million. Importantly, these are primarily non-cash accounting closing settlements and do not have an effect on the future earnings potential of the Company.
In 3Q, Sigma Lithium maintained one of the lowest cash unit operating costs in the industry, with CIF China averaging US$ 513/t, down from US$ 515/t in 2Q24, in line with target levels.
| · | Cash<br> unit operating costs^(3)^for lithium concentrate produced at the Company’s<br> Grota do Cirilo operations in the third quarter averaged US$ 395/t (including a temporary<br> US$25/t for mobile crushers). |
|---|---|
| · | On<br> an FOB Vitoria^(3)^ basis (which includes transportation and port charges)<br> costs averaged US$449/t. |
| · | On<br> a CIF China basis^(3)^ (includes ocean freight, insurance and royalties) costs<br> averaged US$513/t. |
Robust operating cash flow generation of US$ 34 million in the third quarter enabled the Company to maintain a healthy cash position of US$ 66 million, ultimately reflecting the non-cash nature of the accounting adjustments to the quarter.
| · | The<br> Company delivered third quarter cash adjusted EBITDA^(4)^ of US$(10.6) million.<br> Reported EBITDA for the third quarter totaled US$(12.8) million. |
|---|---|
| · | The<br> cash adjusted EBITDA number excludes US$0.8 million of non-recurring expenditures, primarily<br> related to capital markets and cost initiatives, and US$1.4 million in non-cash stock-based<br> compensation expenses. |
Net income in the quarter totaled US$(25.1) million or US$(0.23) per diluted share outstanding. These reported results were affected by the aforementioned US$(23.3) million in accounting adjustments.
OperationalUpdate
Sigma Lithium achieved strong operational performance at its Greentech industrial plant in the third quarter. Production of Sigma Lithium’s Quintuple Zero Lithium Concentrate totaled 60,237t, up 22% from 2Q24 and ahead of the 60,000t guidance. This includes numerous daily production records and periods of sustained operations above 860t per day. The Company expects 4Q24 production of lithium concentrate to reach at least 60,000 tonne.
CommercialStrategy Update
Sigma Lithium sold 57,483 tonnes of its Quintuple Zero Green Lithium concentrate in the third quarter, when its operational performance enabled it to further increase shipping cadence to quasi monthly volumes sold of 22,000t. As a result, the Company made two full 22,000t shipments during the quarter and supplemented these volumes with 13,483t sold at the Port customs warehouse.
Operational reliability and a consistent shipment pattern lowered the Company’s export credit risk, increasing the availability and lowering the interest rate of its trade finance lines. This generated direct benefits for Sigma’s commercial strategy, enabling the Company to further geographically diversify its accounts receivables, shipping to three distributors across the world: Glencore AG (Europe), Mitsubishi Corporation RtM International Pte. Ltd (Japan/ Singapore), and International Resources Holdings (UAE/Abu Dhabi).
The interest rate cost of the Company’s trade finance export credit lines decreased substantially over the year from nearly 15.5% in 4Q23 to 9.0% in 3Q24. In parallel, the amount of available export trade lines exceeded US$ 100 million in the year.
The increased financial flexibility enabled the Company to strengthen its commercial strategy and change its distribution relationship with trading companies from “traders as principals” to “traders as distributors”. This strategy shift allows Sigma to capitalize on annual restocking trends of chemical refiners, weather seasonality more effectively and outperform market price benchmarks, achieving average CIF sales price for the third quarter of US$ 820/t.
While Sigma Lithium ships and sells monthly to its trading partners, its goal is to build maximum flexibility in the final re-sale to clients to benefit from the established seasonality of refiners’ restocking periods. When combined with its superior metallurgical properties and the associated value-in-use driven cost savings to customers, Sigma believes it has positioned itself to drive superior price realizations over time.
This commercial strategy of “trader as a distributor” was not yet in place during Company’s second through seventhshipments, when trading partners served as the principals to the transaction. The accounting provisional price adjustment booked in this quarter was mainly a result of the booking of final invoice settlement and closing of these trades.
Phase2 Expansion
Recall, on April 1, 2024, the Board of Directors announced a Final Investment Decision for the Company’s Phase 2 Greentech Plant expansion. The project is expected to add 250,000 tonnes of production capacity to the current Phase 1 operation. Importantly, the Company has already received all relevant licenses to build and operate this second Greentech Plant.
In 3Q, Sigma Lithium initiated earthworks by completing clearing of the terrain for arid and semi-arid vegetation suppression (including fauna capture and classification) for the entire industrial project, including future phase 3 construction of production plant. Total building and commissioning are expected to occur over a 12-month period, with budgeted capex for Phase 2 of BRL492 million (approximately US$90mm at current exchange rates).
On August 29, the National Brazilian Bank for Economic and Social Development (BNDES) delivered a binding commitment to Sigma for a BRL 487mm development loan to finance this expansion.
On October 10, Sigma and the BNDES signed the final binding loan agreement, concluding the closing of the loan package**.** The first disbursement of the development loan is pending the Company posting bank guarantees with BNDES. This disbursement shall reimburse the capex already disbursed by the Company since first approval of the development bank loan.
The key terms and conditions of the development loan are:
| · | Amount: BRL<br> 487 million |
|---|---|
| · | Term:<br> 192 months (16 years) |
| · | Interest<br> Rate: BRL 7.53% per year (US$ at approximately 2.5% at prevailing swap rates). |
| · | Amortization<br> Grace Period: 18 months – Calendarized Amortization: 174 months |
| · | Assets<br> in Collateral: Not required. Development Loan shall be secured by letter of credit (“fianca<br> bancaria”) issued by a BNDES registered financial institution. |
Plant2 Construction at Grota do Cirilo.
BalanceSheet & Liquidity
Robust operating cash flow generation of US$ 34 million during the third quarter enabled the Company to maintain a healthy cash position. Sigma Lithium ended the third quarter with US$65.6 million in cash and cash equivalents.
Free cash flow in the quarter totaled US$32 million primarily related to a reduction in working capital associated with the collection of accounts receivable.
Cash generation in the third quarter enabled the Company to repay certain export credit debt, reducing outstanding trade line balances. At the end of the quarter, the Company had US$181 million in short-term and long-term debt. This included US$59 million in drawn and available, but unutilized, additional liquidity through trade finance lines.
Capital expenditures during the third quarter totaled US$2.5 million (C$3.1 million) directed towards maintenance, mining, Phase 2 expansion work, and incremental investments in the Greentech Plant.
ABOUTSIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) is a leading global lithium producer dedicated to powering the next generation of electric vehicle batteries with carbon neutral, socially and environmentally sustainable chemical-grade lithium concentrate.
Sigma Lithium is one of the world’s largest lithium producers. The Company operates at the forefront of environmental and social sustainability in the EV battery materials supply chain at its Grota do Cirilo Operation in Brazil. Here, Sigma produces Quintuple Zero Green Lithium at its state-of-the-art Greentech lithium beneficiation plant that delivers net zero carbon lithium, produced with zero dirty power, zero potable water, zero toxic chemicals and zero tailings’ dams.
Phase 1 of the Company’s operations entered commercial production in the second quarter of 2023. The Company has issued a Final Investment Decision, formally approving construction to double capacity to 520,000 tonnes of concentrate through the addition of a Phase 2 expansion of its Greentech Plant.
Please refer to the Company’s National Instrument 43-101 technical report titled “Grota do Cirilo Lithium Project Araçuaí and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report” issued March 19, 2024, which was prepared for Sigma Lithium by Homero Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, P.Geo, SGS Canada Inc; Jarrett Quinn, P.Eng., Primero Group Americas; Porfirio Cabaleiro Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral; and William van Breugel, P.Eng (the “Updated Technical Report”). The Updated Technical Report is filed on SEDAR and is also available on the Company’s website.
For more information about Sigma Lithium, visit our website
FORADDITIONAL INFORMATION PLEASE CONTACT
MatthewDeYoe, EVP, Corporate Affairs and Strategic Development
matthew.deyoe@sigmalithium.com.br
IrinaAxenova, VP, Investor Relations
irina.axenova@sigmalithium.com.br
SigmaLithium
| Sigma<br> Lithium |
|---|
| @sigmalithium |
| @SigmaLithium |
FORWARD-LOOKING STATEMENTS
Thisnews release includes certain “forward-looking information” under applicable Canadian and U.S. securities legislation, includingbut not limited to statements relating to timing and costs related to the general business and operational outlook of the Company, theenvironmental footprint of tailings and positive ecosystem impact relating thereto, donation and upcycling of tailings, timing and quantitiesrelating to tailings and Green Lithium, achievements and projections relating to the Zero Tailings strategy, achievement of ramp-up volumes,production estimates and the operational status of the Grota do Cirilo Project, and other forward-looking information. All statementsthat address future plans, activities, events, estimates, expectations or developments that the Company believes, expects or anticipateswill or may occur is forward-looking information, including statements regarding the potential development of mineral resources and mineralreserves which may or may not occur. Forward-looking information contained herein is based on certain assumptions regarding, among otherthings: general economic and political conditions; the stable and supportive legislative, regulatory and community environment in Brazil;demand for lithium, including that such demand is supported by growth in the electric vehicle market; the Company’s market positionand future financial and operating performance; the Company’s estimates of mineral resources and mineral reserves, including whethermineral resources will ever be developed into mineral reserves; and the Company’s ability to operate its mineral projects includingthat the Company will not experience any materials or equipment shortages, any labour or service provider outages or delays or any technicalissues. Although management believes that the assumptions and expectations reflected in the forward-looking information are reasonable,there can be no assurance that these assumptions and expectations will prove to be correct. Forward-looking information inherently involvesand is subject to risks and uncertainties, including but not limited to that the market prices for lithium may not remain at currentlevels; and the market for electric vehicles and other large format batteries currently has limited market share and no assurances canbe given for the rate at which this market will develop, if at all, which could affect the success of the Company and its ability todevelop lithium operations. There can be no assurance that such statements will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-lookinginformation. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because ofnew information, future events or otherwise, except as required by law. For more information on the risks, uncertainties and assumptionsthat could cause our actual results to differ from current expectations, please refer to the current annual information form of the Companyand other public filings available under the Company’s profile atwww.sedarplus.com.
Neitherthe TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this news release.
FinancialTables
TheCompany’s independent auditor has not performed a review of the unaudited interim consolidated financial statements for the three-monthperiod ended March 31, 2024, the six-month period ended June 30, 2024, or the interim consolidated financial statements forthe nine months ended September 30, 2024 in accordance with standards established by the Canadian Institute of Chartered Accountantsfor a review of interim financial statements by the entity’s auditor.
Figure1: Unaudited Income Statement Summary
| Income Statement - Unaudited | Three Months Ended<br><br> September 30, 2024 | |||
|---|---|---|---|---|
| (000) | CAD | |||
| Sales Revenues | 59,887 | 44,210 | ||
| Provisional price adjustments | (31,612 | ) | (23,316 | |
| Revenue | 28,275 | 20,894 | ||
| Cost of goods sold & distribution | (39,733 | ) | (29,232 | |
| Gross profit | (11,458 | ) | (8,338 | |
| Sales expense | (535 | ) | (392 | |
| G&A expense | (7,163 | ) | (5,252 | |
| Stock-based compensation | (1,871 | ) | (1,369 | |
| ESG and other operating expenses | (416 | ) | (304 | |
| EBIT | (21,444 | ) | (15,655 | |
| Financial income and (expenses), net | (11,277 | ) | (8,267 | |
| Non-cash FX & other income (expenses), net | (278 | ) | (163 | |
| Income (loss) before taxes | (32,998 | ) | (24,085 | |
| Income taxes and social contribution | (1,247 | ) | (1,013 | |
| Net Income (loss) for the period | (34,246 | ) | (25,098 | |
| Weighted avg diluted shares outstanding | 110,822 | 110,822 | ||
| Earnings per share | (0.31 | ) | $ | (0.23 |
All values are in US Dollars.
Figure2: Unaudited Balance Sheet Summary
| Balance Sheet - Unaudited | Three Months Ended<br><br> September 30, 2024 | ||
|---|---|---|---|
| (000) | CAD | USD | |
| Assets | |||
| Cash and cash equivalents | 88,645 | 65,594 | |
| Trade accounts receivable | 20,122 | 14,889 | |
| Inventories | 22,394 | 16,571 | |
| Other current assets | 24,883 | 18,413 | |
| Total current assets | 156,044 | 115,467 | |
| Property, plant and equipment | 224,945 | 166,451 | |
| Other non-current assets | 117,459 | 86,915 | |
| Total Assets | 498,447 | 368,833 | |
| Liabilities& Shareholder Equity | |||
| Financing and export prepayment | 94,573 | 69,980 | |
| Suppliers& accounts payable | 57,596 | 42,619 | |
| Other current liabilities | 33,082 | 24,480 | |
| Total current liabilities | 185,251 | 137,080 | |
| Financing and export prepayment | 150,274 | 111,197 | |
| Other non-current liabilities | 15,029 | 11,121 | |
| Total non-current liabilities | 165,303 | 122,318 | |
| Total shareholders' equity | 147,893 | 109,435 | |
| Total Liabilities& Shareholders' Equity | 498,447 | 368,833 |
All values are in US Dollars.
Figure3: Unaudited Cash Flow Statement Summary
| Cash Flow Statement - Unaudited | Nine Months Ended<br><br> September 30, 2024 | |||
|---|---|---|---|---|
| (000) | CAD | |||
| Operating Activities | ||||
| Net income (loss) for the period | (58,302 | ) | (42,855 | |
| Adjustments, including FX movements | 51,351 | 37,346 | ||
| Interest payment on loans and leases | (587 | ) | (426 | |
| Adjustments to income (loss) for the period | 50,764 | 36,920 | ||
| Change in working capital | (197 | ) | (143 | |
| Net Cash from Operating Activities | (7,735 | ) | (6,078 | |
| Investing Activities | ||||
| Purchase of PPE | (19,377 | ) | (14,339 | |
| Addition to exploration and evaluation assets | (4,228 | ) | (3,129 | |
| Other | (3,900 | ) | (2,886 | |
| Net Cash from Investing Activities | (27,505 | ) | (20,353 | |
| Financing Activities | ||||
| Proceeds of loans, net | 70,353 | 52,721 | ||
| Other | (1,521 | ) | (1,125 | |
| Net Cash from Financing Activities | 68,832 | 51,596 | ||
| Effect of FX | (9,350 | ) | (8,155 | |
| Net (decrease) increase in cash | 24,242 | 17,010 | ||
| Cash& Equivalents, Beg of Period | 64,403 | 48,584 | ||
| Cash& Equivalents, End of Period | 88,645 | 65,594 |
All values are in US Dollars.
LandTransactions:
Inconnection with the acquisition of additional properties located in areas of interest for Sigma Mineração S.A. (“SMSA”),an indirectly owned subsidiary of the Company, SMSA has amended the previous Credit Facility Agreement entered with Tatooine InvestimentosS.A. (“Tatooine”) in 2023, increasing the amount by US$3 million, of which US$0.8 million is to be disbursed. Tatooine willcontinue to acquire such properties and shall grant the possession of the area to SMSA, which shall use it to continue with the Grotado Cirilo Project. This agreement and its amendments are qualified as a related party transaction under the policies of the TSXV, giventhat Marina Bernardini, a current officer of SMSA, has an economic interest in Tatooine.
Footnotes &Reconciliations:
Toprovide investors and others with additional information regarding the financial results of Sigma Lithium, we have disclosed in thisrelease certain non-IFRS operating performance measures such as realized price per tonne, unit operating costs, EBITDA, EBITDA margin,Adjusted cash EBITDA, and Adjusted cash EBITDA margin. These non-IFRS financial measures are a supplement to and not a substitute foror superior to, the Company's results presented in accordance with IFRS. The non-IFRS financial measures presented by the Companymay be different from non-GAAP/IFRS financial measures presented by other companies. Specifically, the Company believes the non-IFRSinformation provides useful measures to investors regarding the Company's financial performance by excluding certain costs and expensesthat the Company believes are not indicative of its core operating results. The presentation of these non-U.S. GAAP/IFRS financialmeasures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance withU.S. GAAP/IFRS. A reconciliation of these financial measures to IFRS results is included herein.
1:Average selling price, CIF represents revenues associated with shipments invoiced during the reporting period netted out against totalvolume shipped. The final price may be higher or lower than the invoiced price based on future price movements.
2:Reported revenue per tonne, CIF equivalent reflects net revenues for the quarter and tonnes shipped. Given a change in accounting policyin 3Q, the Company is not realizing the ocean freight and insurance costs associated with its 3Q shipments until product has been receivedby the final customer. Thus, this exercise is grossing up the reported revenues for these costs to create a more peer and market comparablefigure. The final price may be higher or lower than the estimated realized price based on future price movements.
| Revenue Bridge - Unaudited | ||
|---|---|---|
| 000 | ||
| 3Q24 Invoiced Revenues - CIF | 44,550 | |
| Provisional price adjustment for shipments: 3Q24 | 2,607 | |
| 3Q24 Revenues - CIF | 47,157 | |
| Adjustment for CIF Accounting | (2,947 | ) |
| 3Q24 Revenues - FOB | 44,210 | |
| Provisional price adjustment for shipments: 1Q24 - 2Q24 | (15,611 | ) |
| Provisional price adjustment for shipments: 3Q23 - 4Q23 | (7,705 | ) |
| Reported Revenues - FOB | 20,894 | |
| Adjustment for CIF Accounting | 2,947 | |
| Reported Revenues - CIF | 23,841 | |
| Lithium Concentrate Sales Volumes | 57,483 | |
| / tonne | ||
| 3Q24 Invoiced Price - CIF | 775 | |
| Provisional price adjustment for shipments: 3Q24 | 45 | |
| 3Q24 Price - CIF | 820 | |
| Adjustment for CIF Accounting | (51 | ) |
| 3Q24 Price - FOB | 769 |
All values are in US Dollars.
3.Cash unit operating costs include mining, processing, and site based general and administration costs. It is calculated on an incurredbasis, credits for any capitalised mine waste development costs, and it excludes depreciation, depletion and amortization of mine andprocessing associated activities. When reported on an FOB basis, this metric includes road freight, and port related charges. When reportedon a CIF basis it includes ocean freight, insurance and royalty costs. Royalty costs include a 2% government royalty and a 1% privateroyalty.
ForCIF production cost analysis purposes, Sigma is considering the ocean freight costs of product that sailed in the month of reporting.However, for accounting purposes, and thus in this quarter’s reported cost of good sold and revenues, the ocean freight cost isto be recognized the moment material is delivered to the customer. Overtime, this will even out as a consistent pattern of boats areshipped and delivered, but as it is a newly adopted accounting policy, it is translating to a lower reported dollar revenue and costfor 3Q24 than what is implied by our CIF production and revenue accounting above.
4.Adjusted Cash EBITDA is a measure of recurring core earnings profile of the company. It is calculated as revenues minus cash operatingand selling expenses. The calculation excludes non-cash items such as depreciation and amortization and stock-based compensation expensesas well as certain non-recurring cash expenses such as legal expenses associated with capital markets or strategic initiatives.
AdjustedCash EBITDA Bridge
| EBITDA Bridge - Unaudited | Three Months Ended<br><br> September 30, 2024 | |||
|---|---|---|---|---|
| ( 000) | CAD | |||
| Sales Revenues | 59,887 | 44,210 | ||
| Provisional price adjustments | (31,612 | ) | (23,316 | |
| Revenues | 28,275 | 20,894 | ||
| Cost of goods sold & distribution | (39,733 | ) | (29,232 | |
| Gross Profit | (11,458 | ) | (8,338 | |
| Sales expenses | (535 | ) | (392 | |
| G&A expense | (7,163 | ) | (5,252 | |
| Stock-based compensation | (1,871 | ) | (1,369 | |
| ESG & other operating expenses, net | (416 | ) | (304 | |
| EBIT | (21,444 | ) | (15,655 | |
| Depreciation & Amortization | 3,912 | 2,876 | ||
| EBITDA | (17,532 | ) | (12,779 | |
| EBITDA (%) | -62 | % | -61 | |
| Non-recurring expenses (1) | 1,089 | 798 | ||
| Stock-based compensation | 1,871 | 1,369 | ||
| Adjusted Cash EBITDA | (14,571 | ) | (10,612 | |
| Adjusted EBITDA (%) | -52 | % | -51 |
All values are in US Dollars.
^(1)^Non-recurringexpenses include certain legal and advisory costs and severance costs associated with ongoing productivity initiatives.