Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 6 Jan, 26 | SGML | Buy | USD 15.2 | USD 16.0 | USD 17.0 | 2 days | Closed |
12.14%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves lithium-ion battery supply chain for electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.
Reduced Financial Expenses: Net financial expenses declined from USD 8.4 million in Q3 FY2024 to USD 2.6 million in Q3 FY2025
Revenue Growth Despite Lower Volumes: Net sales revenue increased from USD 20.9 million in Q3 FY2024 to USD 28.5 million in Q3 FY2025
Lower Production Output: Production fell from 60.2 thousand tonnes in Q3 FY2024 to 44.0 thousand tonnes in Q3 FY2025, a 27% y-o-y decline
Decrease in Cash Balance: Cash and cash equivalents decreased from USD 65.6 million in Q3 FY2024 to USD 6.1 million in Q3 FY2025
Sigma Lithium remains exposed to operational execution risk, as production recovery and future growth depend on the timely completion and performance reliability of the upgraded mining fleet and planned Phase 2 expansion amid continued lithium price volatility
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 15.2 | 13.5 | 16.0 | 17.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Cost of goods sold totaled USD 30.1 million in Q3 FY2025, broadly stable year-on-year. However, cost per tonne increased due to lower production levels and correspondingly reduced fixed-cost absorption. The Company reported a net loss of USD 11.6 million for the quarter, an improvement compared with the USD 25.1 million loss recorded in Q3 FY2024, assisted by higher realized pricing, lower administrative costs, and favorable foreign exchange impacts
During Q3 FY2025, Sigma Lithium delivered net sales revenue of USD 28.5 million, reflecting an increase of 69% quarter-on-quarter and 36% year-on-year. This improvement was primarily driven by the Company’s commercial strategy which leveraged provisional pricing to benefit from seasonal lithium price strength. Although sales volumes declined year-on-year, stronger realized prices underpinned the revenue uplift
In parallel, progress continued on the Company’s Phase 2 expansion, which is expected to increase total lithium concentrate production capacity to 520,000 tonnes per annum once fully commissioned. Sigma Lithium also reinforced its commitment to ESG leadership, maintaining environmentally sustainable production through water-efficient processing, zero tailings dams, and strong community engagement.
Sigma Lithium expects Phase 1 production of 300,000 tonnes in FY2026, increasing to 550,000 tonnes in FY2027 once Phase 2 is operational. The Company forecasts a CIF China cash cost of USD 440 per tonne in both years. Including maintenance capex, ESG and administrative costs, and interest expense, the Company estimates an All-In Sustaining Cost (AISC) of USD 560 per tonne in FY2026, improving to USD 503 per tonne in FY2027 as volumes scale and unit costs benefit from operating leverage.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SGML Sigma Lithium Resources Corp |
1.20 11.07% | 11.99 | - | 105.26 | 12.37 | 10.04 | 13.04 | -20.6419 |
| BHP BHP Group Limited |
3.32 4.78% | 72.71 | 13.32 | 11.30 | 3.15 | 3.88 | 3.35 | 6.30 |
| BHPLF BHP Group Limited |
- -% | 34.00 | 13.29 | 11.21 | 3.18 | 3.85 | 3.35 | 6.30 |
| RTNTF Rio Tinto Group |
- -% | 107.00 | 17.11 | 11.85 | 2.81 | 2.79 | 2.88 | 7.27 |
| RTPPF Rio Tinto Group |
0.0025 0.0027% | 93.15 | 14.16 | 9.87 | 2.26 | 2.29 | 2.35 | 5.93 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 6, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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