Atlas Lithium Corporation Reports $42.2 Million Net Loss for Fiscal Year 2024

Atlas Lithium Corporation has reported its financial results for the fiscal year ending December 31, 2024, revealing a net loss of $42.2 million, or $2.97 per share, compared to a net loss of $40.8 million, or $4.37 per share, in the previous year. The company generated a gross margin of $265,694 from its quartzite operations, marking a significant increase from zero gross margin in 2023. Operating expenses rose to $44.1 million, a 4.8% increase from $42.1 million in 2023, primarily due to higher general and administrative costs and stock-based compensation, offset by reduced exploration expenses.

In terms of strategic developments, Atlas Lithium has made significant progress in its Minas Gerais Lithium Project, which is central to its operations. The company successfully obtained an operational permit for the Neves Project on October 26, 2024, allowing it to assemble and operate its lithium processing plant. This plant, designed to produce 150,000 tons of lithium concentrate annually, was shipped from South Africa and is expected to play a crucial role in meeting the growing demand for lithium in electric vehicles and renewable energy storage systems.

Operationally, Atlas Lithium has expanded its mineral rights portfolio, now encompassing approximately 539 km² for lithium across 95 mineral rights, alongside additional rights for nickel, copper, rare earths, titanium, and graphite. The company has also identified promising exploration targets in its Salinas Project, which is located near other significant lithium deposits. As of December 31, 2024, Atlas Lithium employed 70 individuals, with 60% represented by a private federation of employees in the extractive industries.

The company’s liquidity position has improved, with cash and cash equivalents totaling $15.5 million and net working capital of $12.3 million as of the end of 2024, compared to a working capital deficit of $23.8 million in the previous year. However, net cash used in operating activities increased significantly to $18.8 million, primarily due to higher general and administrative expenses and the absence of a one-time royalty sale that had occurred in 2023. Looking ahead, Atlas Lithium anticipates that its future capital requirements will depend on the success of its exploration and development activities, as well as its ability to secure additional financing.

In summary, while Atlas Lithium has made strides in its operational and strategic initiatives, it continues to face challenges related to profitability and cash flow management. The company remains focused on advancing its lithium projects in Brazil, with an optimistic outlook on the growing demand for lithium products in the global market.