Sigma Lithium Reports 3Q 26 Results: Resilient Profitability and Cash Flow: 32% Net Revenue Margin, Strengthened Balance Sheet
Sigma reports a third-quarter loss, confirming ramp-up risks, while its refinancing deal buys time without achieving deleveraging.
Sigma Lithium Corporation (SGML) reported third-quarter and nine-month results for the period ended September 30, 2026. Third-quarter gross revenue was US$22.3 million, down from US$51.0 million in the second quarter, reflecting lower volumes sold during a temporary suspension. The average realized price was US$1,485 per tonne. Cost of sales decreased 58% to US$9.3 million, resulting in a gross profit of US$4.3 million.
Adjusted EBITDA for the third quarter was negative US$6.7 million, with an operating loss of US$16.8 million. Operating cash flow was positive US$24.2 million, an increase from US$1.6 million in the third quarter of 2025. For the first nine months of 2026, gross revenue reached US$115.4 million, a 20% increase as defined by the company. The release cited a 56.6% net revenue margin, gross profit of US$62.6 million, and Adjusted EBITDA of US$35.7 million, representing a 32% margin. Operating income was US$4.5 million, and operating cash flow totaled US$51.3 million.
Unit costs for the period included plant gate costs of US$424 per tonne, CIF costs of US$518 per tonne, and an all-in sustaining cost (AISC) of US$642 per tonne. The third-quarter AISC is explicitly pro forma, spreading third-quarter selling, general, and administrative expenses over 60,000 tonnes for the quarter, despite actual third-quarter production being 7,300 tonnes. Full-year 2026 AISC guidance is US$668 per tonne, and full-year 2027 guidance is US$620 per tonne.
The company’s balance sheet was refinanced after the quarter-end with a US$125 million, five-year, 7.00% convertible bond due in 2031, which was used to repay the Synergy export prepayment. Pro forma short-term debt fell 85% to US$19 million. Cash on hand was US$10 million at September 30, with net debt at US$105 million, or US$145 million pro forma for the convertible bond.
Operations resumed on October 5, 2026. Sigma produced 11,000 tonnes of high-grade lithium oxide concentrate through November 10, 2026. Third-quarter production was 7,300 tonnes, while nine-month production totaled 66,300 tonnes. Inventory available for fourth-quarter sale includes 15,000 tonnes of high-purity fines in high-grade equivalent terms and 6,000 tonnes of intermediate products.
Full-year 2027 production guidance of 330,000 tonnes is reaffirmed, assuming only Plant 1 operates. Plant 2 is planned to resume construction in 2027 and is fully funded by a BRL 492 million BNDES loan. Plant 3 is planned by 2028 to take capacity to 830,000 tonnes per year.
Legal and regulatory updates include a TAC agreement with Minas Gerais, a US$1 million settlement plus US$0.5 million in fines, a "too big to stop" Federal Court of Appeals classification, and an ANM improvement notice for slope reshaping at the depleted North Pit that requires no stoppage.
Sigma Lithium Corporation (SGML) released its third-quarter results on November 2, reporting production of 7,293 tonnes, gross revenue of approximately US$23 million, and a headline margin of 32%. The full release added details of a negative Adjusted EBITDA, an operating loss, a pro forma AISC denominator, and pro forma net debt of US$145 million. The filing did not include a fresh FY27 guidance cut or a new financing shock.
The stock had already declined 58% from US$16.85 on August 14, following the second-quarter print, to US$7.08 on November 12, reflecting market expectations for a weak quarter.
Third-quarter operating cash flow was positive at US$24.2 million, despite an Adjusted EBITDA of negative US$6.7 million. The gap between these figures was driven by working capital and collections rather than earnings. Management’s characterization of the quarter as showing “resilient profitability” contrasts with the reported 3Q operating loss of US$16.8 million and a negative Adjusted EBITDA margin of about 30% on gross revenue. The nine-month figures were stronger, relying on the performance of the first and second quarters prior to the suspension.
Sigma Lithium Corporation (SGML) operates the Grota do Cirilo lithium complex in Minas Gerais, Brazil, producing high-grade lithium oxide concentrate and high-purity lithium fines and intermediate products from Plant 1. The facility currently has a nameplate capacity of 330,000 tonnes per year (tpy) of lithium oxide concentrate on an annualized basis. The company has outlined plans to expand production through the development of additional processing infrastructure. Plant 2 is scheduled to add 250,000 tpy, bringing total capacity to 580,000 tpy, while Plant 3 is planned to add another 250,000 tpy, reaching a total capacity of 830,000 tpy.
The company describes itself as the largest industrial-mineral lithium oxide concentrate producer in the Americas and the fifth-largest industrial lithium complex globally. These designations are based on company statements and have not been independently verified in the provided materials. The asset base comprises Mine 1 and the planned Mine 2, which holds approximately 30 million tonnes of resources. The release does not include a full reserve report, mine-life schedule, or standalone project economics.