Former "lithium mining star" Sigma (SGML.US) falls from grace, plunging over 30% in two days, deeply mired in crisis.

Former lithium mine star stock Sigma Lithium Corp. (SGML.US) is currently in a predicament: market confidence in its short-term production capacity continues to waver, and key expansion projects may be delayed. The stock, once considered an industry "star company," has now seen a complete reversal in its performance. This week, Sigma's market value has evaporated by nearly one-third, marking the most brutal two-day consecutive decline in 21 months. On Tuesday, the company's stock dropped by over 7%, making it one of the worst-performing components of the lithium mining stock index. Last Monday, BMO Capital Markets joined the increasingly pessimistic camp of analysts, downgrading their outlook. This move came after Sigma suddenly changed its mining contractor last month, claiming that it was a measure taken to improve efficiency at its flagship mine in Brazil. However, analysts pointed out that plans to use large trucks and modernized equipment could lead to increased capital expenditure and hinder the progress of expansion projects. BMO analyst Joel Jackson wrote in a report to clients, "We are not yet certain of the specific reasons for the recent stock price fluctuations, but it is known that there are many questions in the market about the change of mining contractors, the balance sheet situation, and other issues, which have caused Sigma to lag behind in this round of lithium mining stock rebound." As early as August of this year, Bank of America Corp issued a warning, emphasizing the potential chain reaction of delayed payments to suppliers. By the end of last month, the bank had downgraded Sigma's stock rating from "buy" to "neutral." Currently, Sigma is not only facing pressure from the weakening battery metal prices, but also undergoing stricter scrutiny from investors. As of now, the company has not immediately responded to requests for comment. After a 64% decrease in market value in 2024, Sigma's stock price has fallen by over 50% this year. The global lithium market remains turbulent, with electric vehicle demand growing slower than expected, compounded by the policies of U.S. President Trump reshaping Clean Energy Fuels Corp., the world's largest economy, adding further difficulties to the industry. According to the schedule, Sigma will release its third-quarter financial report on November 14th, Eastern Time.