Sigma Lithium Corporation (NASDAQ: SGML) saw its stock price plummet 6.78% in pre-market trading on Monday following the release of its fourth-quarter 2024 financial results. The company's performance fell short of analyst expectations, raising concerns about its near-term growth prospects.

The lithium producer reported Q4 revenue of C$67.206 million, missing the consensus estimate of C$73.025 million. Earnings per share (EPS) came in at a loss of C$0.10, significantly below the expected earnings of C$0.07 per share. This marks the fourth consecutive quarter that Sigma Lithium has missed earnings estimates, potentially eroding investor confidence.

Despite reporting a 127% sequential increase in USD revenues to $47.3 million and improved operational efficiency, investors seem focused on the company's rising debt levels and conservative production outlook. Short-term debt increased to $60.3 million by the end of December 2024, with total debt reaching $173.6 million. Additionally, Sigma Lithium's 2025 production guidance of at least 270,000 tonnes of Quintuple Zero Lithium Concentrate may have disappointed some analysts who were expecting more aggressive growth targets.

While the company highlighted its progress in cost reduction and operational improvements, including a 17% decrease in CIF China cash operating costs to $427 per tonne, the market appears to be prioritizing the missed financial targets and cautious outlook. As Sigma Lithium continues its expansion efforts, including the construction of a second Greentech Industrial Plant, investors will likely be closely monitoring the company's ability to manage costs and deliver on its growth promises in the competitive lithium market.