GICS Sector : Basic Materials
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil.It holds 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 27 mineral rights covering an area of approximately 191 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil.The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021.
Sigma Lithium reported a significant increase in net revenues, with a 69% quarter-on-quarter and 36% year-over-year growth, driven by an optimum commercial strategy. The company's pricing increased by 33% versus the previous quarter, and margins also expanded, with the operating margin up 42% and the net margin up 67%. However, the EPS came out at -0.10399, missing estimates of 0.0275. The company's cash position is $21 million, plus $8 million of incremental trade receivables, and $29 million current cash balance.
Publication Date: Nov -26
The company achieved a stellar record of 0 accidents, with 787 consecutive days without accidents with lost time injury, demonstrating operational excellence and continuous cost reduction. Sigma Lithium has mastered dense media separation technology, achieving 70% recovery rates, and plans to upgrade its mining operations to increase volumes and operational speed. The plant has already restarted, and the mine is expected to resume operations within 2-3 weeks.
Sigma Lithium expects to announce 3 offtakes still this year and 2 more next year, which will help the company achieve its growth strategy. The production and cost guidance for 2026 and 2027 demonstrate the potential for increased cash flow as production efficiency increases. With Plant 1 alone, the company expects to generate an all-in sustaining cost of $560 per tonne, representing a free cash flow generation of $132 million. Analysts estimate next year's revenue growth at 77.3%.
Sigma Lithium's current valuation metrics show a P/S Ratio of 9.73 and an EV/EBITDA of -63.91. Given the expected revenue growth, the stock may be poised for a revaluation. However, the company's ROE is -46.9%, and ROIC is -6.97%, indicating that the company still has to overcome some operational challenges. With lithium prices expected to range from $1,000 to $1,100, Sigma Lithium is well-positioned as a low-cost producer.
Sigma Lithium (NasdaqCM:SGML) Valuation After COP30 Spotlight on Its Quintuple Zero ESG Lithium Strategy
Dec -03
Sigma Lithium Highlights Brazil's Leadership in Sustainable Lithium at Cop30; Engages in High-Level Global Dialogues on Energy Transition, Critical Minerals and ESG Innovation
Dec -01
Lithium Americas Shares Surge 69% in 6 Months: Should You Invest Now?
Nov -21
Why Sigma Lithium Rallied This Week
Nov -21
Sigma Lithium (SGML) Is Up 33.2% After Strong Q3 Results and EV Partnership Speculation—What’s Next?
Nov -18
Albemarle Leads S&P 500 As Lithium Becomes An AI Play
Nov -17
Albemarle Leads S&P 500 As Lithium Becomes An AI Play
Nov -17
Sigma Lithium Corp (SGML) Q3 2025 Earnings Call Highlights: Robust Revenue Growth and Strategic ...
Nov -14
Sigma Lithium Corporation's high-grade lithium concentrate growth is driven by increasing demand for electric vehicles, renewable energy storage, and portable electronics. Strong supply agreements with key customers, expansion of production capacity, and favorable mining conditions in Brazil also contribute to the 11.47% growth.
Sigma Lithium Corporation's by-product lithium concentrate growth is driven by increasing demand for electric vehicles, renewable energy storage, and portable electronics. The company's strategic location in Brazil, proximity to key markets, and low-cost production process also contribute to its growth. Additionally, the rising adoption of lithium-ion batteries in emerging markets and government incentives for clean energy solutions further support the 11.47% growth.
A high-grade lithium concentrate used as a raw material for the production of lithium-ion batteries, ceramics, and glass.
A lithium compound used in the production of lithium-ion battery cathodes, lubricants, and pharmaceuticals.
A lithium compound used in the production of ceramics, glass, and pharmaceuticals.
A lithium compound used in the production of air conditioning and refrigeration systems, as well as in the manufacturing of lithium-ion batteries.
The threat of substitutes for Sigma Lithium Corporation is medium due to the availability of alternative energy storage solutions, but the company's focus on sustainable and environmentally friendly lithium production reduces the threat.
The bargaining power of customers is low due to the company's strong relationships with its customers and the lack of alternative suppliers in the market.
The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers, but the company's strong relationships and long-term contracts mitigate the risk.
The threat of new entrants is high due to the growing demand for lithium and the increasing interest in sustainable energy solutions, which attracts new players to the market.
The intensity of rivalry is high due to the competitive nature of the lithium market, with several established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 44.68% |
| Debt Cost | 4.86% |
| Equity Weight | 55.32% |
| Equity Cost | 4.86% |
| WACC | 4.86% |
| Leverage | 80.75% |
Value: 4.0
Growth: 5.7
Quality: 5.4
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Momentum: 10.0
Volatility: 0.7
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