Sigma Lithium Announces Record 2Q 26 Results: EBITDA Margin of 47%, Decrease of over 30% in Costs; TAC Agreement Negotiations Underway

Sigma Lithium Corporation (SGML) reported second-quarter 2026 results for the three months ended June 30, 2026, highlighting record net revenue of US$55 million, an increase from US$42 million in the first quarter. The company also achieved a record EBITDA margin of 47%, up from 39% in Q1 2026, alongside a gross margin of 60% and an operating margin of 32%. Sales volume reached 24,400 tonnes of lithium oxide concentrate at a realized price of US$2,089 per tonne on an SC5 basis, representing a 17% increase from the US$1,790 per tonne recorded in Q1 2026.

Costs improved materially at both the plant gate and CIF levels. Plant gate costs fell 36% quarter-over-quarter to US$401 per tonne, while CIF costs decreased 33% to US$452 per tonne. However, All-In Sustaining Costs (AISC) declined only 6% quarter-over-quarter to US$668 per tonne. The company reduced its net debt to US$125 million from US$134 million at the end of Q1 2026, holding cash of US$17 million.

Mining and plant operations have been temporarily paused since July 17, 2026, pending a TAC agreement with the Minas Gerais state government. During this period, sales of high-purity lithium fines from reprocessed tailings continued.

Management raised forward production guidance, moving the 240,000-tonne target within 12 months forward by three months. Full-year 2027 production is now guided at 330,000 tonnes, assuming only Plant 1 operates. Expansion targets indicate a total capacity of 580,000 tonnes per year by the end of 2027 and 830,000 tonnes per year by the end of 2028. Additionally, the company disclosed ongoing negotiations to refinance the US$95 million Synergy export prepayment.

Sigma Lithium Corporation (SGML) reported second-quarter results featuring a record EBITDA margin, a 17% quarter-over-quarter increase in realized price, and significant reductions in plant gate and CIF costs. The company also raised its full-year 2027 production guidance to 330,000 tonnes, up from the prior Plant 1 nominal capacity of 270,000 tonnes. Additionally, the Phase 1 All-In Sustaining Costs (AISC) guide was lowered to US$668 per tonne from US$710 per tonne.

These operational improvements are partially offset by an operational pause that began on July 17, 2026, and the delay of Plant 2 completion to the end of 2027. The company also faces an unresolved US$95 million Synergy prepayment refinancing. The balance sheet remains tight, with prior as-reported first-quarter 2026 filings indicating negative working capital and a going concern caveat.

Some of the news was already known to the market, as the production beat was pre-released on August 5, 2026, and the TAC pause was announced on July 22, 2026. The remaining new information regarding margins, costs, debt, and the FY2027 production increase is expected to have a material impact on the stock price.

Sigma Lithium Corporation, listed on the NASDAQ and TSXV under ticker SGML and on the BVMF under S2GM34, operates the Grota do Cirilo lithium mine in Minas Gerais, Brazil. The company identifies itself as the largest producer of lithium oxide concentrate in the Americas.

The company’s current release indicates that nameplate capacity has been increased to 330,000 tonnes of lithium oxide concentrate per year. Planned expansions aim to raise capacity to 580,000 tonnes per year by the end of 2027 and to 830,000 tonnes per year by the end of 2028. Sigma Lithium highlights its sustainability model, which includes dry-stacked tailings, 100% water reuse, zero toxic chemicals, zero tailings dams, and 100% renewable electricity.

The asset operates as a single jurisdiction, single-producing complex, presenting a key concentration risk.