Share count
111Mpeak FY2024
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SGML, Sigma Lithium Corporation
Sigma Lithium Corporation operates one of the world's largest lithium production sites at its Grota do Cirilo operation in Brazil.
Has initiated investing in a Phase 2 expansion that is planned to close to double production capacity.
Lithium oxide concentrate production totaled 183,700 tonnes and net sales revenue was US$110.0 million.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2024
C$209M
+15.2% YoY
Vital signs · TTM, with 5-yr average
Revenue C$209M 5-yr avg C$195M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Whether the heavy assets earn more than they cost to keep. What decides it: the return on the capital sunk into them, how much of the capex is merely standing still versus growing, and what a downturn does to a fixed-cost base. Here the balance sheet is the defense and cyclicality the enemy. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, charted
FY2020–2024Each measure over its full record; the current point and the worst year marked.
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
(C$47M)owner earningsvs.(C$70M)net incomelow FY2024
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2024 the business turned a C$70M loss into (C$47M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | |
|---|---|---|---|---|---|
| Reported net income | (C$70M) | (C$38M) | (C$127M) | (C$34M) | (C$2M) |
| Depreciation & amortizationnon-cash charge added back | +C$19M | +C$8M | +C$102K | +C$58K | +C$59K |
| Working capital & othertiming of cash in and out, other non-cash items | +C$27M | −C$93K | +C$122M | +C$30M | −C$930K |
| Cash from operations | (C$24M) | (C$31M) | (C$5M) | (C$4M) | (C$2M) |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −C$23M | −C$8M | −C$102K | −C$58K | −C$2K |
| Owner earnings | (C$47M) | (C$38M) | (C$6M) | (C$4M) | (C$2M) |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | −C$38M | −C$113M | −C$9M | — |
| Free cash flow | (C$47M) | (C$77M) | (C$119M) | (C$13M) | (C$2M) |
| Owner-earnings marginowner earnings ÷ revenue | -23% | -21% | — | — | — |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2024 40-F · source on SEC EDGAR →
Material weakness in financial controls
“The Company is conducting a comprehensive review of our internal control procedures and has been actively pursuing steps to address and remediate the identified material weaknesses.”
The figures below are only as sound as the controls that produced them. read the note →
Will it survive?
- Can it pay its interest? -1.3×Does not cover its interestOperating income (C$51M) ÷ interest expense C$39M
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net debt against an operating lossCash C$66M + ST investments C$57M − debt C$161M
What this means
Netting C$123M of cash and short-term investments against C$161M of debt leaves C$38M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- TightDSO 29 + DIO 52 − DPO 58 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Below averageNOPAT (C$41M) ÷ invested capital C$228M (debt + equity − cash)Industry peers: median -9%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Consumes cashOwner earnings (C$47M) = operating cash (C$24M) − maintenance capex C$23MIndustry peers: median -8%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -23% of revenue this year.
- Are earnings backed by cash? (C$24M)Loss, and burning cashNet income (C$70M) · cash from operations (C$24M)
In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 1.22×ExpandingCapex C$23M ÷ depreciation C$19M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 0 of 4 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · C$209M
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity MissCurrent ratio ≥ 2× · 0.85×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt MissDebt ≤ working capital · C$161M vs (C$23M) WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (5-yr record) · 5 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are C$-0.70/share (latest year C$-0.63), the averaged base the calculator's gate runs on, and book value is C$1.19/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2024Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assetsC$133M
- Cash & short-term investmentsC$123M
- ReceivablesC$17M
- InventoryC$23M
Current liabilitiesC$156M
- Accounts payableC$26M
- Other current liabilitiesC$130M
Current ratio0.85×all current assets ÷ what's due · Graham looked for 2×
Quick ratio0.70×stricter: inventory excluded
Cash ratio0.79×strictest: cash alone against what's due
Working capital(C$23M)the cushion left after near-term bills
Cash runway2.6 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Deeper floors
Tangible book valueC$133Mequity stripped of goodwill & intangibles
Net current asset valueC$8MGraham's net-net: current assets less all liabilities
Debt incl. operating leasesC$166MC$5M of it operating leases
Deferred revenueC$2Mcustomer cash collected before delivery; operating float
From the company's latest filing.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Income taxes, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Metals & Mining
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| CDECoeur Mining Inc. | $2.1B | 79% | 4.3% | 2% | 2% |
| MPMP Materials | $224M | — | -10.4% | -4% | -3% |
| SGMLSigma Lithium Corporation | C$209M | 21% | -24.7% | -18% | -23% |
| MUXMcEwen Inc. | $198M | 77% | -43.0% | -9% | -7% |
| IAUXi-80 Gold Corp. | $95M | — | -177.0% | -15% | -157% |
| UECUranium Energy Corp. | $67M | 31% | -103.9% | -12% | -168% |
| EUenCore Energy Corp. | $43M | 17% | -168.1% | -16% | -106% |
| IDRIdaho Strategic Resources Inc. | $42M | 6% | -2.6% | -9% | -8% |
| Group median | — | 26% | -33.8% | -11% | -15% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Sigma Lithium Corporation's US listing is the ordinary share itself; figures in this tool are translated at CAD 1 = $0.712 (2026-07-17, reference rate); the dollar quote then reconciles exactly. The record tables elsewhere on this page remain as filed, in CAD.
Sigma Lithium Corporation is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−23%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Sigma Lithium Corporation (SGML), the owner's record," https://ownerscorecard.com/c/SGML, data as of 2026-07-09.
Manual order: ← SGHC its page in the Manual SHEL →
Industry order: ← SCCO the Metals & Mining chapter SQM →