So that’s again an investment, a one-off investment in that part of the business. We had non-recoverable VAT taxes of 7.4%. And then transaction cost and commercial development, achieving the premium price cost travel, cost money, we spent quite a lot of time in Asia working with clients, working with refineries, working with battery makers, working with end users to test product and establish ourselves. Again remember, we started from zero. We did not have a book of clients. So we built an incredible book of clients that premiumizes our product, because we work with them to understand and to test and to demonstrate value in use. That’s the 28% non-recurring. So we kind of gave you a glance of what are these, we call investment items. This is us investing in the resilience of our business for the next couple of quarters.
And on the previous slide. So just to recap then, number-by-number. So this breakdown is — if you look at this $24 million, that bridge the $25 million accounting EBITDA to the $49 million of adjusted EBITDA. The next page, basically shows you the breakdown of that $24.5 non-recurring G&A expenses. We try to give you as much clarity and insight as possible into a number that is an adjustment that is non-recurring. So now we go on to, how are we going to look like steady state? Well, we started with the current prices, with the guidance we provided, which we stick to it. So again, the estimated — well, the net concentrate price we just obtained is $1,160. Whatever it is on a cycle, it doesn’t matter, because our CIF costs in China are $510.
We believe the recurring SG&A to be about $48, and the maintenance CapEx to be about $18. So the estimated run rate cash operating margin per tonne is $584, which means we make money with every single ship, right? So deduct, you know, $1,160, minus $510, minus $48, minus $18, there you have. It is a substantial gross margin — sorry, it’s a substantial net operating margin — cash margin. So then when we go to mid-cycle, this number get — this number gets even bigger, because we achieve an even bigger run rate cash operating margin per tonne. So we gave you the per tonne numbers, so that you can actually model in whichever cut-offs you choose. So we generate cash at the trough of the cycle. At mid-cycle, we generate quite a lot of cash. So that’s just a demonstration of our unique operational efficiency.
And I must say that on this aspect as well, we are in full tandem with where the electric vehicles industry is going. It’s now all about producing cheaper batteries, cheaper cars, lower-priced cars. So we are the low-cost producers. So we’re here to stay. And these low costs are basically — mainly due actually to our lower Greentech plant processing costs. It is a dense media separation, uses centrifugation, uses less electricity. Yes, our electricity is clean and cheaper, but our process just have basically seven — six main DMS’, seven main steps, plus the crusher. So we don’t even crush the powder. So it is a lower-cost industrial process period. That’s where we gain the competitive advantage. We decided to invest in this technology. We took a contrarian view in 2019, and we proved that dense media separation technology is not only greener, but it’s also more cost-effective.
So it is in tandem with the future of the industry in its two core characteristics. Batteries have to be cheap, and we believe materials in these batteries have to be green. So this is us. So when you perform 2024 estimated cash flow, assuming a $270,000 — 270,000 tonnes per year produced. We have the equivalent of $158 million of estimated run rate cash operations generated at current prices. Mid-cycle will be $249 million. So a pretty robust cash generation. When you go to ’25 with doubling the capacity, we can dilute down a bit the obvious fixed costs, such as recurring SG&A. So that number goes a bit higher. It goes higher than double. It becomes $304 million. So again, as we’ve shown on the bridge that my partner presented, you can clearly see that as actual costs were there.
We’re delivering actual costs that are closer to guidance, because we built the guidance bottom-up supplier by supplier before providing it to the market. And so with all of that, I think I might have given you comfort that we got a very resilient business. We have solid cash generation. So we’re building our board green-lighted final investment decision, and we are initiating the construction to double production capacity to 520,000 tonnes per year. On the next page the picture, a thousand words. You can clearly see that all we got to do is build another Greentech line. That will cost about $100 million and you will add 250,000 tonnes of lithium concentrate production capacity. Given our cash at hand, meaning cash at hand of $109 million, in theory, we could actually build a plant right now just drawing down from our cash position.
Now, why is that? And that’s what our next slide is going to show. This comes and we haven’t explained it as clearly. We have trade finance, yes, we do. It’s revolving because it’s linked to our ability to deliver what we just showed to you, cadence. Every month, every tonne produced generates permanence of trade finance. In Brazil, it’s called advancements of export contracts. ACEs, they last about 180 days, but they are linked to our ability to produce cadence of production. The thing though is that we did not draw down these lines. So meaning, sorry, we drew it down, but we did not use it for trade finance. So to make it clear, we have the trade finance, we drew down the lines, but we did not use it to finance the working capital until the client pays us.
Why? Because this is where Glencore steps in. In addition to being a fantastic commercial and trade partner, they’re also our financing backstop. As you noticed in the previous shipment, they advanced on a final and non-provisional basis, now, 85% of our boats, of our shipments. So we rely on Glencore not only for their incredible marketing and commercial expertise, but also for providing us with the actual trade finance. So the trade finance lines we have in the banking system here are sitting untouched in our balance sheet. So they’re drawn and they are untouched. And what are we going to do with them? Are we going to build a whole plant with them? No, we’re not. But they are going to be the cash that will advance the funds for construction as it progresses because the development bank lines of BNDES are on a reimbursement basis.
So we pay, we get reimbursed. And the cash position is the demonstration that we have the ability to green lights this entire construction right now, today with the snapshot you got in front of you. So, as we keep on generating more cash with every shipment, we’re extremely comfortable financially. So again, we approved the initiation of construction of Phase 2, because, well we have a track record building on schedule, on budget. We actually broke the record of this industry of getting there fast. So, with the total CapEx of $100 million for the 250,000 tonnes of increased capacity, essentially we’re going to have with P2, enough lithium for 850,000 tonnes of EV. So we like to say that Sigma belongs to the world. I mean, we can deliver this to many markets well beyond our borders.
We are a global force for good in the industry. The EPCM is mobilizing the fleet for earthworks. We are active in construction, mobilization, preparation. The Phase 2 flow sheet is consistent with the processing sheet. The technology to process the material just becomes improved. So it’s consistent with all the lessons we learn with Phase 1. So we have quite a lot of technological advancements and improvements and lessons learned, that we are building or we built into the engineering of Phase 2. So Phase 2 is a better version of Phase 1. And this comes from savings in engineering, optimized design, offsetting material costs. Well, the dry stacking for once, which didn’t work in June. So we figure out how to make it work. We’re now going to build a dry stacking that’s going to work immediately together with the Module 2, the dense media separation plant.
So we got technological improvements all along and this is why we were eligible for the Brazilian Development Bank innovation line, because there’s innovation all around this flow sheet. And again innovation as all of you innovators know, is not an eureka thing. This is a sum of various optimizations in industrials like we are throughout a processing plant. So the sum of all these innovations, the sum of all these optimizations, leads us to the incredible production cadence and consistency that we were able to reach. So the next slide, well has a lot of meat. This slide has a lot of information, a lot of detail, but we wanted it to be just that. We wanted to do a side-by-side of what was Phase 1 and what is Phase 2, and where are the savings?
This is public information, so you can refer back to it. I’m not going to spend that much time on it. But essentially, where are we saving? Is a bit of everything really, right? We’re saving on spare parts, because we’re an operating entity, so we don’t need to build an inventory of spare parts. We’re saving 50% of engineering because we have a plant that works. So we’re basically doing the designs of a plant that we already have with the improvements. There’s a bit of environmental savings to the extent that, for example, we do not need to build an entire sewage treatment station like we did before, given that we use sewage water from the Jequitinhonha River. So it’s a sum of various savings that leads us to a plant that is going to cost about 20% less than Phase 1.
On a total construction CapEx basis, It’s kind of roughly 10% less, which is 10% less of a very inexpensive plan. So, given the track record, given that we’ve done this before, given that the team is exactly the same, everyone that built this is here. Keith Prentice is leading it. I’m here. Felipe, which was Chief Controller of Procurement is back here. So it’s kind of the back — it’s putting the same team back on the field to do what they do best, build on time on budget. And we’re hiring Promon again, which has done a spectacular job for us in a previous project. And we’re hiring Parex again, which has done a spectacular project assembling this in record time. The next slide is a bit more meat. We’ll put labels on this, but the purpose here is just to illustrate that when you start construction, you don’t really have all the costs on month one, is a crescendo, right?
So you start with earthworks, civils, foundations, which cost about $10 million, but it’s not $100 million, which means it’s back-loaded costs. The disbursements start to increase as equipment gets ordered prepaid or intermediate payments, and then later on delivered to sites. So this slide kind of illustrates that, that construction of a plant is backloaded. Even though we have the cash sitting in a balance sheet, we could do all of it front-loaded in theory, that’s not how it really works, and this is why we’re so relaxed. On the other hand, in typical financial prudence, we’re going to build one plant at a time. So that’s an important point to leave you with. We’re building a plant this year, and then next year we’ll build another one. So the next step, more on the construction process.
So construction activities are starting this month for earth civil works, foundation, infrastructure installation, mobilization of equipment. We’re going to have about 200 extra workers involved with the Jequitinhonha. So more of the prosperity that we brought to the region, we’re going to probably lodge them in Itinga, which is a city closer to us. So the first step, the very first step was licensing. So we were already awarded a license. So we’re fully licensed to build and to operate. That’s an incredible accomplishment. We have the LO, the operating license for this plant already. Why? Because of the track record. We demonstrated that we are impeccable. So we got something that is typically granted to industry in Brazil, but rarely to industry connected to mining.
So we got the same industrial clout as a high-tech industry because we demonstrated to be good protagonists of mineral transformation. Our plant is innovative, is Greentech. It changed the conversation in the sector. So we got the operating license right at the get go. So we’re fully licensed. As soon as we’re done building, we can start selling products. Then we got the financing. As we’ve shown you, we got the cash balance, it’s linked to trade lines. Trade lines exist based on production 180 days revolver, so we’re good to go. Then we’ve done the engineering work. We are FEL3- quoted, Promon led it. So we have the number two precision. It is a $100.5 million. BNDES has honored us with an innovation line. We’re very proud to be part of this club of companies that has been extended development bank financing in this country.
We are planning to honor the taxpayer money that’s been given to us by again delivering this on time and on budget. And this is a backstop financing because again it’s a reimbursement line. So we need a cash at hand in order to submit the reimbursement that then BNDES covers. So we made the FID. This is kind of what leads us to do final investment decision, there’s been months of work, months of work going into the ninth month of work that led us to this moment of starting mobilization, It wasn’t overnight. The next page is again completed detailed engineering, CapEx with FEL-3 accuracy. This is how we keep it on schedule, this is how we keep it on budget. This is the secret sauce of building responsibly. We don’t get it wrong because we quote suppliers.
