2024-07-08 07:47:21 ET
Summary
- Sigma Lithium is delivering on production, margins, and cash flow despite low lithium prices.
- Problem: Consensus estimates may be overly optimistic and call for lithium prices to double to reach a price target of US$26.
- The stock price seems expensive on conservative lithium price estimates that I value at US$10.5 YE25.
- Nonetheless, as a low cost producer in a friendly jurisdiction, it is an attractive asset for Chinese auto, battery or lithium producers.
- I rate Sigma Lithium stock a Hold and worth the wait for potential market recuperation or M&A.
Introduction
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For further details see:
Sigma Lithium: Waiting Out The Bottom