SÃO PAULO - Sigma Lithium (TSXV:SGML) Corporation (NASDAQ: SGML), a significant player in the global lithium market, has initiated the loading of its eighth shipment of high-purity lithium concentrate at the Port of Vitoria. This shipment, consisting of 22,000 tonnes of the company's Quintuple Zero Green lithium product, secured a premium fixed price of $1,333 per tonne, inclusive of a 13% VAT, which translates to $1,160 per tonne after the tax deduction.
The price obtained for this shipment marks a notable increase compared to previous sales and is pegged at 8.75% of the LME Lithium Hydroxide CIF market price. Sigma Lithium has also received an 85% prepayment for the value of this shipment.
Co-General Manager Keith Prentice praised the operational team's performance, emphasizing the consistent output from the company's Greentech Plant. Commercial Director Catarina Noci expressed optimism about the market's recognition of Sigma's product quality and anticipates improved economics for the forthcoming May shipment.
Sigma Lithium is recognized for its commitment to environmental and social sustainability in the electric vehicle (EV) battery supply chain. The company's Grota do Cirilo Project in Brazil, which began commercial production in the second quarter of 2023, boasts an annual capacity of 270,000 tonnes of concentrate. With plans to nearly double this capacity, Sigma Lithium is poised to further enhance its production capabilities.
The information presented in this article is based on a press release statement from Sigma Lithium.
InvestingPro Insights
Sigma Lithium Corporation's recent shipment success is mirrored in some of the metrics observed on InvestingPro. With a market capitalization of 1.62 billion USD, the company has demonstrated robust gross profit margins of 64.59% in the last twelve months as of Q3 2023. This financial health indicator is crucial for investors, as it reflects the company's ability to manage its production costs and maintain profitability on its sales, aligning with the premium pricing secured for its latest lithium shipment.
An InvestingPro Tip highlights Sigma Lithium's stock for its high price volatility, which is consistent with the 1 Month Price Total Return showing a significant uptick of 16.91%. This could be indicative of the market's positive reaction to the company's recent shipment and pricing news. However, analysts have expressed caution, as they do not expect the company to be profitable this year, which is substantiated by the negative operating income margin of -71.64% over the same period.
For investors keen on understanding the future trajectory of Sigma Lithium, it is noteworthy that the company's stock has experienced a substantial decline over the past year, with a 1 Year Price Total Return of -62.06%. Nevertheless, the company's strong gross profit margins and the recent surge in price total return suggest a potential turnaround or a market reassessment of the company's value. For a deeper dive into Sigma Lithium's financials and to access additional InvestingPro Tips, visit InvestingPro. There are 15 additional tips available, which can provide further guidance on the stock's performance and outlook. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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