Sigma Lithium Announces Full Year 2025 Results: US$31M Cash Flow and 47% Cash Margin in 4Q25; Signed US$146M in Two Offtake Agreements

Executive Summary

• Sigma Lithium reported strong financial performance for the fourth quarter and twelve months ended December 31, 2025, generating US$31 million in cash from operations in 4Q25 and achieving net sales revenues of approximately US$67 million across 4Q25 and 1Q26.
• The Company signed two significant prepayment offtake agreements for high-grade premium lithium oxide concentrate, securing US$96 million for 70,500 tonnes to be delivered in 2026 and US$50 million for 40,000 tonnes annually for three years starting in 2026.
• The balance sheet was significantly deleveraged in 2025, with total debt reduced by 35% and trade finance debt cut by 60%, while the Company successfully transitioned mining operations from outside contractors to internal operational control.

Key Details

• Cash Generation:
  • 4Q25 Cash from Operations: US$31 million (US$41 million inflows less US$10 million operating costs).
  • 1Q26 Cash Inflows: US$35 million.
  • 2Q26 Expected Cash Inflows: US$96 million (US$83 million from offtake agreements and US$14 million from 1Q26 fines sales).
  • Cash and Cash Equivalents: US$6.2 million at end of 4Q25; US$12 million as of March 30, 2026.
• Offtake Agreements:
  • Agreement 1: Prepayment of US$96 million for 70,500 tonnes of high-grade lithium oxide concentrate to be delivered during 2026 (US$8 million/month).
  • Agreement 2: Prepayment of US$50 million for 40,000 tonnes per year for three years, commencing in 2026.
  • Both agreements include flexibility regarding delivery timing to benefit from market seasonality.
• Sales and Production:
  • Net Sales Revenues (4Q25 and 1Q26): Approximately US$67 million.
  • Volume Sold: ~650,000 tonnes of high-purity lithium fines and ~5,000 tonnes of high-grade premium lithium oxide concentrate.
  • Includes ~US$14 million in product final price adjustments.
  • Mine operations were demobilized in October 2025 and remobilized in late January 2026.
• Financial Metrics:
  • Operating Cash Margin (4Q25): 47%.
  • Operating Costs (4Q25): Declined 77% year-over-year.
  • Net Sales Revenues (4Q25): Declined 64% year-over-year.
• Debt and Balance Sheet:
  • 2025 Total Debt Reduction: 35%.
  • 2025 Trade Finance Debt Reduction: 60%.
  • 1Q26 Trade Finance Debt: US$19 million (down 21% from 4Q25).
  • Total Debt at Year-End 2025: US$141 million (including a US$100 million loan expected to be paid down in 2026).
• Guidance and Forecasts:
  • Next 12-Month Production: 240,000 tonnes of high-grade premium lithium oxide concentrate.
  • All-In Sustaining Cost (AISC): US$592 per tonne.
  • FY2027E (Phases 1 & 2): 520,000 tonnes production; AISC US$511/t.
  • FY2028E (Phases 1, 2 & 3): 770,000 tonnes production; AISC US$495/t.
  • Cash Flow Projections:
    • At US$1,500/t: $158M (FY2027), $384M (FY2028), $581M (FY2029).
    • At US$1,800/t: $218M (FY2027), $514M (FY2028), $774M (FY2029).
    • At US$2,000/t: $258M (FY2027), $601M (FY2028), $902M (FY2029).

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.