Sigma Lithium (NASDAQ:SGML) Posts Quarterly Earnings Results, Hits Expectations

Sigma Lithium (NASDAQ:SGML – Get Free Report) released its quarterly earnings data on Friday. The company reported $0.10 EPS for the quarter, meeting the consensus estimate of $0.10, Zacks reports. Sigma Lithium had a negative net margin of 45.64% and a negative return on equity of 59.34%.

Here are the key takeaways from Sigma Lithium’s conference call:

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• Sigma posted its strongest quarter since production began, with 61% gross margin, 39% EBITDA margin, and 26% net profit margin, which management said reflects improved efficiency and a low-cost position.
• The company said cash flow and the balance sheet improved materially, with cash rising to $28 million as of May 15 and total debt down 33% over two years, including a 75% reduction in short-term bank trade debt over the last year.
• Management reiterated 2026 production guidance of 200,000 tons and said it is on track for 240,000 tons over the next 12 months, while also noting that a higher quarterly production run-rate may be achievable as the fleet and shift schedule fully ramp up.
• Sigma plans to resume Phase 2 construction in the second half of the year, with management targeting doubled production capacity in 2027 and saying Phase 3 would add further expansion if financed.
• The company highlighted ongoing offtake and prepayment negotiations that could help fund debt repayment and growth capex, and said its low-grade lithium fines inventory is being commercialized at about $77-$80 per ton ex works, with deliveries expected to begin in the third quarter.

Sigma Lithium Stock Down 5.8%

Shares of SGML traded down $1.04 during mid-day trading on Friday, hitting $16.82. 9,246,523 shares of the company’s stock were exchanged, compared to its average volume of 4,195,933. The company has a market cap of $1.87 billion, a price-to-earnings ratio of -37.38 and a beta of 0.64. Sigma Lithium has a fifty-two week low of $4.25 and a fifty-two week high of $24.48. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.14 and a current ratio of 0.25. The stock’s 50-day moving average is $15.83 and its 200-day moving average is $12.94.

Analyst Ratings Changes

SGML has been the subject of several analyst reports. Wall Street Zen upgraded shares of Sigma Lithium from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. Weiss Ratings restated a “sell (e+)” rating on shares of Sigma Lithium in a research report on Friday, March 27th. Canaccord Genuity Group upgraded shares of Sigma Lithium from a “hold” rating to a “buy” rating in a research report on Friday, January 23rd. Finally, Bank of America raised shares of Sigma Lithium from a “neutral” rating to a “buy” rating and upped their price objective for the company from $14.00 to $17.00 in a report on Thursday, April 2nd. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $18.50.

Read Our Latest Stock Analysis on SGML

Institutional Trading of Sigma Lithium

Several hedge funds have recently added to or reduced their stakes in SGML. Woodline Partners LP raised its holdings in Sigma Lithium by 26.6% in the third quarter. Woodline Partners LP now owns 2,964,909 shares of the company’s stock valued at $19,005,000 after acquiring an additional 623,832 shares in the last quarter. Verition Fund Management LLC acquired a new stake in Sigma Lithium during the third quarter worth approximately $3,603,000. Adage Capital Partners GP L.L.C. grew its position in shares of Sigma Lithium by 104.5% during the second quarter. Adage Capital Partners GP L.L.C. now owns 900,000 shares of the company’s stock worth $4,050,000 after acquiring an additional 460,000 shares during the last quarter. Bank of America Corp DE grew its position in shares of Sigma Lithium by 67.6% during the second quarter. Bank of America Corp DE now owns 1,041,043 shares of the company’s stock worth $4,685,000 after acquiring an additional 419,740 shares during the last quarter. Finally, Invesco Ltd. grew its position in shares of Sigma Lithium by 42.3% during the third quarter. Invesco Ltd. now owns 1,280,443 shares of the company’s stock worth $8,208,000 after acquiring an additional 380,498 shares during the last quarter. Institutional investors and hedge funds own 64.86% of the company’s stock.

About Sigma Lithium

(Get Free Report)

Sigma Lithium Corp. is a Canada-based mineral exploration and development company focused on the sustainable production of battery-grade lithium from hard rock deposits. The company’s flagship asset is the Grota do Cirilo lithium project, located in the state of Minas Gerais, Brazil. Grota do Cirilo comprises a fully permitted, low-altitude spodumene mine and processing plant designed to produce high-purity lithium concentrate and downstream lithium hydroxide for the global electric vehicle and energy storage markets.

Since its founding in 2018, Sigma Lithium has pursued a vertically integrated approach, overseeing each stage of production from ore extraction and beneficiation to chemical conversion.

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