06:56 AM EST, 11/15/2024 (MT Newswires) -- Sigma Lithium Corporation ( SGML ) , a global lithium producer, on Friday reported a net loss for the third quarter, reflecting accounting adjustments, as revenues were down. But the company said production beat guidance, it maintained low costs at target and generated "robust" operating cash flow.

Net loss in Q3 totaled US$(25.1) million or US$0.23 per diluted share outstanding. It said these reported results were affected by US$(23.3) million in accounting adjustments, while year earlier figures were given in Canadian dollars.

Sales revenues for shipments in the third quarter totaled US$44.2 million compared to $54.418 million in the prior quarter. Total sales revenue was $20.894 million, down from $45.920 million in the second quarter.

Among operations highlights, Sigma said it achieved strong operational performance at its Greentech industrial plant; 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 Q2 2024; and continued to advance Plant 2 construction with earthworks and engineering.

Sigma said "robust" operating cash flow generation of US$34 million in the third quarter enabled it to maintain a "healthy cash position" of US$66 million at quarter end while reducing debt by $40 million

The company added its commercial strategy adapted "to capitalize on seasonal restocking trends, weather seasonality more effectively, and outperform market price benchmarks".

Ana Cabral, Co-Chairperson and CEO said: "This quarter we achieved our production and low industry cost targets, generating robust free cash flow and demonstrating our operational resilience to lithium cycles. We also benefited from our shifted commercial strategy to navigate industry seasonality, enabling us to secure higher average realized prices compared to benchmarks.

"Over the last year we are proud to have transformed Sigma from an emerging producer into an industry leader, demonstrating the operational and financial resilience of a mature producer, with dependability and consistency. Meanwhile we have delivered on all of our climate goals, 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 and all of its stakeholders."