Sigma Lithium: Low Costs Make It Ideal For The Next Lithium Upswing

Myriam Alvarez
2.58K Followers

Summary

  • Global oversupply crushed lithium prices, yet SGML still has positive cash margins, thanks to the proprietary DMS technology and the lowest-quartile AISC.
  • SGML’s Phase 1 output hit 270 kt pa, and Q1 25 production met guidance. Also, Phase 2 seems largely funded by their BNDES loan.
  • SGML can also stockpile concentrate, stagger Plant 2 spending, and lock in floor-price offtakes. So it has flexibility until prices recover, potentially by 2026.
  • Even at these depressed Lithium prices, SGML seems sustainable for now. So, I don’t think they have major cash concerns for the time being.
  • In my view, SGML remains attractively priced, assuming Lithium prices have bottomed around these levels. If so, 2026 could be a great year for SGML.

Lithium periodic table element, mining, science, nature, innovation, chemical elements used in physics and other sciences

Just_Super

Sigma Lithium Corporation (SGML) is a green lithium producer with mines located in Brazil. Its proprietary dense media separation [DMS] technology and tailings-recycle enable industry-leading recoveries and unit costs. Unfortunately, over the past 18 months, there's been a 25% surge in global spodumene supply

This article was written by

2.58K Followers
My name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science from Ohio University, Athens, OH, USA, a graduate degree in Business Management from Universidad Andina Simon Bolivar, Quito, Ecuador, and the Ph.D. degree in computer applications from the University of Alicante, Spain.Disclosure: I collaborate professionally with Edgar Torres H, who is also an author on Seeking Alpha. Our analyses are conducted independently, and we adhere to Seeking Alpha's Shared Association Guidelines.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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