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Investing.com -- Sigma Lithium (TSXV:SGML) Corporation (NASDAQ:SGML) reported better-than-expected margins in the first quarter despite missing revenue estimates, sending shares up 3.6% in early trading Thursday.
The lithium producer posted Q1 earnings per share of C$0.04, in line with analyst expectations. Revenue came in at C$47.67 million, below the consensus estimate of C$56.19 million.
However, Sigma highlighted strong profitability metrics, with a cash gross margin of 35% and adjusted EBITDA margin of 24% in the quarter. The company also achieved lower costs than targeted, with cash operating costs of $458 per tonne, 8% below its $500 per tonne goal.
"Our first quarter results demonstrate the strength of our operations and cost discipline," said Ana Cabral-Gardner, Sigma’s CEO. "While revenue was impacted by lower lithium prices, we delivered robust margins through operational excellence."
Production volumes rose 26% year-over-year to over 68,300 tonnes in Q1. Sigma maintained its full-year production guidance and said it is advancing construction of its Phase 2 expansion.
The company ended the quarter with $31.1 million in cash and equivalents. Management noted Sigma’s production remains 100% uncommitted, providing flexibility for future offtake agreements.
Sigma Lithium shares were up 3.6% to $34.25 in Thursday morning trading following the earnings release.
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