Mac Whale's questions to Sigma Lithium (SGML) leadership • Q1 2024
Question
Asked about the reasons for significant cost decreases in mining services and consumables, whether the current G&A is a good run rate, and how provisional pricing will evolve with market improvements.
Answer
Matthew DeYoe explained that cost reductions in consumables were due to more effective recycling of ferrosilicon and optimizing plant operations. He confirmed the lower G&A is a sustainable level due to a 'draconian' approach to cost control. Ana Cabral Gardner added that provisional pricing is an element of the past, as the company has moved to a 'fixed floating formula' (9% of LME hydroxide price) based on partnerships with clients who have experienced the cost savings of their product.