Sigma Lithium (SGML) Achieves Record Profitability and Production in Q2 2026

Sigma Lithium Corporation (SGML) announced its financial results for the second quarter of 2026, reporting record revenues and EBITDA margins in the company's history. The company increased its net revenues to $55 million, while lithium oxide concentrate production surged by 52% quarter-over-quarter to 35,400 tons, exceeding prior guidance by 6%. Driven by disciplined cost control and higher volumes, the EBITDA margin reached a record 47%, and the gross margin was maintained at a robust 60%.

The $55 million in net revenues for the second quarter represents a significant 225.6% year-over-year increase, with first-half revenues totaling $97 million. Sigma Lithium sold 24,400 tons of lithium oxide concentrate at a realized net lithium price of $2,089 per ton. All-in sustaining cash costs (AISC) fell to $668 per ton, a reduction of over 30% year-over-year and 6% quarter-over-quarter. The company generated $27 million in cash from operations during the first half, enabling a 25% reduction in total debt over the past year and a 43% reduction over two years, strengthening its balance sheet.

Operationally, the company completed a mining fleet upgrade and redesigned its pit shell, unlocking a high-grade ore block 83% larger than the previous design, containing 1.1 million tons averaging 1.4% Li2O. The Cleantech Industrial Plant continued to exceed expectations, achieving 70% lithium recovery from spodumene ore and approximately a 20% yield. While the company faced a temporary suspension related to Termo de Ajustamento de Conduta (TAC) negotiations with the state of Minas Gerais, management expects a resolution within one to two weeks and continues to ship lithium products from inventory.

Sigma Lithium's low-cost production position allows it to generate strong cash flow under current market conditions. The lithium market saw a recovery in prices during the second quarter of 2026, driven by stronger-than-expected demand and tightening supply. The company is well-positioned to benefit from the increasing demand for lithium, fueled by the expansion of the global electric vehicle (EV) and energy storage systems markets.

The global lithium market size is projected to grow from $19.52 billion in 2026 to $78.49 billion by 2034, exhibiting a Compound Annual Growth Rate (CAGR) of 18.90% during this period. Notably, stationary storage solutions have emerged as a significant driver of lithium demand growth. To capitalize on this expanding market, Sigma Lithium reaffirmed its 2026 all-in sustaining cash cost guidance of $668 per ton and aims to reduce this target to $620 per ton in 2027.

The company plans to green-light Plant 2 in January 2027, with the potential for Plant 3 to commence simultaneously. With these expansion plans, Sigma Lithium anticipates reaching an installed capacity of 580,000 tons per year by the end of 2027 and 830,000 tons per year by the end of 2028. At current lithium price levels between $1,500 and $2,500 per ton, management estimates plant-only cash flow of $166-$235 million over the next 12 months, rising to $360-$500 million in 2027, highlighting the company's future growth potential.