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| Sigma Lithium |
Grota do Cirilo Becomes Fifth-Largest Lithium Mine Globally
Profits Hold Despite Global Price Weakness
Sigma Lithium reported record quarterly and annual production at its Grota do Cirilo mine in Brazil, with Q4 2024 output reaching 77,000 tonnes of lithium concentrate—a 28% increase from the previous quarter. Annual production totaled 240,800 tonnes, more than doubling 2023 output, while sales surged 130% year-on-year to 236,000 tonnes, according to the company’s latest earnings release.
These milestones have elevated Grota do Cirilo to the rank of the fifth-largest lithium mine globally, demonstrating resilience amid a market characterized by oversupply and price volatility.
Cost Discipline Helps Maintain Profitability
Average selling prices for Sigma's concentrate fell 31% year-over-year to $900 per tonne, reflecting weak global lithium markets. Despite the decline, Sigma posted a $32 million operating profit, supported by low-cost operations and freight rate reductions—shipping costs dropped by $11/t quarter-on-quarter.
The company expects to produce 300,000 tonnes in 2025 and reach 520,000 tonnes by 2026, pending completion of its second processing plant. Sigma also reported a 40% increase in lithium reserves in the region, supporting a 22-year mine life outlook.
ScrapInsight Commentary
Sigma Lithium's cost efficiency and scale-up strategy underscore how critical metals players can thrive in volatile price cycles. While battery metal prices have dipped, disciplined operations and strong logistics management can preserve margins and attract long-term investment. The company’s expanded reserves and production capacity are also a signal of increasing supply-side pressure—likely to weigh on spot lithium pricing but positive for downstream users aiming to secure long-term feedstock.
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