A10 Global Fund, L.P. Continues to Raise Its Position in Sigma Lithium Corporation
Sigma Lithium's debt slashed, record margins expand, and a fund adds fuel as Plant 2 nears – but the easy re‑rating may already be in the price.
A10 Global Fund, L.P. disclosed an increase in its position in Sigma Lithium common shares. The release recaps the company’s Q1 2026 results – record net margin of 26%, EBITDA margin of 39% and gross margin of 61% – and highlights deleveraging (total debt down 21% year‑on‑year, short‑term trade debt slashed by 75%). Sigma is on track to meet its 240,000‑tonne annualised production guidance and aims to lift capacity to 770,000 t/yr by year‑end 2027. The company projects cash flow of US$1.1 billion once all three phases are fully operational, with a cash position of US$28 million as of mid‑May 2026.
The most recent news is only a reiteration of the exceptionally strong Q1 2026 results released two weeks earlier (15 May 2026). A10 Global Fund’s incremental buying – still below 5% of shares outstanding – is a positive endorsement but no new operational or financial detail is added. The market already absorbed the record profitability, debt reduction and expansion roadmap on 15 May; indeed the stock is trading well off its $32.40 high and a 15% single‑day drop followed the local court ruling on 18 May. Therefore this news does not materially change the investment thesis; it reinforces the existing bull case without triggering a re‑rating. It is a routine positive development.
Sigma Lithium operates the Grota do Cirilo lithium mine in Brazil’s Vale do Jequitinhonha. The project uses dense‑media separation and dry‑stack tailings, with 100% water reuse and renewable electricity, branded “Quintuple Zero.” Current Phase 1 capacity is 270,000 t/yr of high‑grade lithium oxide concentrate. A second, replicable Greentech plant is under construction, set to double capacity to 520,000 t/yr by early 2027. Phase 3 would lift total capacity to 770,000 t/yr by end‑2027.