Sigma Lithium Corporation (SGML) shares ended the last trading session 13.6% higher at $20.7. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 73.2% gain over the past four weeks.
Sigma Lithium has secured a $100 million collateralized bank guarantee from a major Brazilian bank. The bank guarantee will be backed by its clients, through a blend of corporate guarantees, letters of credit and export receivables, as agreed by all the parties.
The bank guarantee will help fund the construction and installation of Sigma Lithium’s Greentech Industrial Plant 2. Currently SGML has an annual nameplate capacity to produce 270,000 tons of lithium oxide concentrate at its mine and state-of-the-art Greentech Industrial Plant. With the Phase 2 expansion, the company aims to nearly double its production capacity to approximately 520,000 tons.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $35.4 million, down 25.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sigma Lithium, the consensus EPS estimate for the quarter has been revised 78.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SGML going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sigma Lithium is part of the Zacks Mining - Miscellaneous industry. Almonty Industries Inc. (ALM), another stock in the same industry, closed the last trading session 8.4% higher at $22.77. ALM has returned 18.1% in the past month.
Almonty Industries Inc.'s consensus EPS estimate for the upcoming report has changed +25.9% over the past month to $0.01. Compared to the company's year-ago EPS, this represents a change of +150%. Almonty Industries Inc. currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).