Sigma Lithium Corporation ( SGML ) shares are trading higher after the company disclosed fourth-quarter FY23 results and a Final Investment Decision (FID) to double the production of its Quintuple Zero Green Lithium.

The company reported revenue of $37.7 million and made three shipments of Quintuple Zero Green Lithium concentrate, totaling 64,670 tonnes in the quarter.

Revenue was impacted by an adjustment of about $30 million, partly due to a lithium price decline. The average realized price of concentrate shipped in the fourth quarter was $1,067/tonne.

On a recurring, pro forma, basis, the company estimates its quarterly cash operating costs averaging $384/tonne, or $455/tonne Free On Board (FOB) Vitoria.

Sigma Lithium ( SGML ) reported fourth-quarter adjusted EBITDA of $31.3 million and a net loss of $(9.5) million, translating into an EPS loss of $(0.08).

Capital expenditures stood at $6.5 million in the quarter, reflecting incremental investments made to Greentech Plant to boost efficiency. The company generated free cash flow of around $30 million. 

As of March 30, 2024, the company had cash and cash equivalents of $109 million and $89 million in unutilized available liquidity through trade finance agreements.

Apart from this, the company expects capital expenditure for Phase 2 Industrial Greentech Plant to be $100 million and aims to increase the total annual lithium capacity by 250,000 tonnes of Quintuple Zero Green Lithium to 520,000 tonnes in 2025. 

With this, Sigma Lithium ( SGML ) projects to produce enough lithium concentrate to power roughly 1.8 million electric vehicles.

The Board of Directors approved the construction start of a second line of its Greentech Industrial Plan with a capital expenditure of $100 million.

Also Read: Sigma Lithium Secures Funds For Brazilian Flagship, Praises ‘Significantly Lower’ Interest Rates

Sigma Lithium ( SGML ) disclosed a delay in the filing of its annual information form and its annual report on Form 40-F for the year ended December 31, 2023, due to the additional audit procedures required on the start of commercial production in early 2023 and the ensuing hybrid reporting of non-operating and operating quarters.

Price Action: SGML shares are up 6.67% at $13.83 on the last check Monday.