Sigma Lithium Announces the Resumption of Mining Activities at Mine 1, with over 600 People Working on Site
Sigma Restarts Production Engine While Navigating a Precarious Liquidity Tightrope
The most recent news release (February 2, 2026) announces the resumption of mining activities at "Mine 1" in Vale do Jequitinhonha, Brazil. This follows a restructuring phase aimed at increasing safety and efficiency. Key highlights include: - Completion of mining operation restructuring, which tripled earth-moving capabilities. - 600 people are currently working on-site. - Provided guidance for Phase 1 (220,000–240,000 tpy) and Phase 2 (520,000 tpy). - Cash flow guidance suggests Phase 1 All-In Sustaining Cost (AISC) of US$599/t, dropping to US$511/t once Phase 2 is online. - Financing for the restructuring was partially covered by sales of low-grade concentrate fines (950,000 tonnes in inventory).
The impact is Material - Positive but carries high risk. - Operational Continuity: Resuming mining is vital for survival. The company had been relying on inventory sales (fines) to stay afloat. - Scalability: The claim of tripling earth-moving capacity suggests a significant ramp-up, supporting the Greentech Industrial Plant’s full capacity. - Margin Pressure: The AISC of $599/t for Phase 1 is concerning when compared to historical data. In Q3 2025, the average net realized price was $586/t, meaning the company was operating at a loss on a cash-cost basis before the restructuring. The success of the "new structure" depends entirely on realized lithium prices staying well above $600/t. - Liquidity Bridge: The sale of 200,000 tonnes of fines in January 2026 (generating roughly $20M+ in adjusted revenue) and a $5M working capital facility are temporary fixes for a company with $161.9M in total debt and only $6.1M in cash as of Sept 30, 2025.
Sigma Lithium is a commercial-scale lithium producer. Its flagship "Grota do Cirilo" project in Brazil features the Greentech Industrial Plant, which uses 100% renewable energy, 100% recycled water, and 100% dry-stacked tailings (Quintuple Zero model). - Flagship Project: Grota do Cirilo (Mine 1 and future Phase 2/3). - Stage: Production / Expansion. - Location: Minas Gerais, Brazil.