Sigma Lithium Announces Record 2Q 26 Results: EBITDA Margin of 47%, Decrease of over 30% in Costs; TAC Agreement Negotiations Underway
Rhea-AI Summary
Sigma Lithium (NASDAQ: SGML) reported record 2Q 2026 results, with net revenues of US$55 million from sales of 24,400t of lithium oxide concentrate and a record EBITDA margin of 47%, up from 39% in 1Q 26. Gross and operating margins were 60% and 32%, respectively, while realized price rose 17% to US$2,089/t (SC5).
Production volume increased 50% to 35,400t, driving cost reductions: plant gate US$401/t (-36%), CIF US$452/t (-33%) and AISC US$668/t. Net debt declined to US$125 million, 25% lower year-on-year. Sigma Lithium guides 240,000t over the next 12 months and 330,000t for FY 2027, and plans to lift installed capacity to 580,000tpy by end-2027 and 830,000tpy by end-2028. Mining and plant operations have been temporarily paused since mid-July 2026 pending a TAC Agreement with the Minas Gerais state government, while tailings reprocessing continues.
Positive
- Record 2Q 26 revenues of US$55 million, up from US$42 million in 1Q 26
- EBITDA margin 47%, highest in company history, versus 39% in 1Q 26
- Realized price increased 17% QoQ to US$2,089/t (SC5)
- Production volume up 50% QoQ to 35,400t, supporting scale efficiencies
- Plant gate and CIF costs reduced by 36% and 33% versus 1Q 26
- All-in sustaining cost at US$668/t, back to 3Q 25 near-nominal levels
- Net debt reduced to US$125 million, down 25% since 2Q 25
- Total debt down 43% over two years; continued repayment of export facilities
- Production guidance of 240,000t in 12 months and 330,000t for FY 2027
- Capacity expansion plans to 580,000tpy by end-2027 and 830,000tpy by end-2028
Negative
- Temporary partial suspension of mining and plant operations since week of July 17, 2026 pending TAC Agreement
- Cash balance of US$17 million versus net debt of US$125 million at June 30, 2026
- Export prepayment obligation of US$95 million to Synergy, with refinancing still under negotiation
- Next industrial plant completion pushed to end of 2027 to reflect suspension-related timing
News Explained
The pending TAC adds up to US$540,000 in fines and about US$1,000,000 of estimated capital spending while mining remains paused.
Sigma Lithium says mining and plant operations have been temporarily paused since
A TAC Agreement is described as a mutually agreed arrangement between the company and federal and state regulatory bodies to address issues raised by the state environmental enforcement body. It is still being negotiated, so the company has not yet reached the stated condition for resuming mining activities.
Separately, Sigma reports
The specified resolution points are closing the TAC Agreement, resuming mining, and securing financing for the Synergy repayment.
Market reaction after 2Q26 earnings report: SGML -5.03%
Following this news, SGML has declined 5.03%, reflecting a notable negative market reaction. Our momentum scanner has triggered 15 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $10.76. Trading volume is exceptionally heavy at 25.5x the average, suggesting significant selling pressure.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 11 | Industry forum participation | Neutral | -0.1% | Conference participation highlighted lithium supply-chain industrialization and sustainability themes. |
| Aug 05 | Earnings date announcement | Positive | -5.0% | Pre-announcement noted production guidance beat before quarterly results. |
| Jul 22 | Environmental agreement negotiations | Negative | -1.4% | Environmental fines and partial operational suspension prompted TAC negotiations. |
| Jul 15 | Board reelection results | Positive | -8.9% | Shareholders approved directors and auditor with strong voting support. |
| Jul 09 | Production guidance beat | Positive | +0.8% | Quarterly production exceeded guidance after mining operations upgrade. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Four of five recent events recorded negative 24-hour reactions, including positive operational and governance announcements.
Key Terms
ebitda margin financial
aisc financial
offtake agreement financial
spodumene technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
FINANCIAL HIGHLIGHTS
- Sigma Lithium 2Q 26 delivers another record quarter of high profitability:
- Gross and operating margins remained high at
60% and32% respectively. - EBITDA margin at
47% was the highest in the Company's history and up from39% in 1Q 26. - Net revenues of US
$55 million from the sale of 24,400t of lithium oxide concentrate - Realized price of US
$2,089 (SC5), up by17% from US$1,790 in 1Q 26.
- Gross and operating margins remained high at
- Decreased costs, while upgrading mining operations, resulting from production growth to 35,400t and financial discipline
- Plant gate: US
$401 /t , (-36% from 1Q 26) - CIF: US
$452 /t (-33% from 1Q 26) - AISC: US
$ 668 /t All In Sustaining Costs (-6% from 1Q 26)
- Plant gate: US
- Decreased total debt by
25% since 2Q 25.
OPERATIONAL HIGHLIGHTS
- Expected near term conclusion of TAC Agreement and end of temporary suspension of operations.
- Production expansion remains on track, pushing forward ramp-up guidance by 3 months
- 240,000t production of lithium oxide concentrate within 12 months;
- 330,000t production for FY 2027 (reprocessing circuit already fully operational)
- Plans to increase installed industrial capacity by building two additional plants:
- 580,000tpy by the end of 2027
- 830,000tpy by the end of 2028
Conference Call Information
The Company will hold a conference call to discuss its financial results for the second quarter of 2026 at 8:30a.m. ET on Friday, August 14, 2026. Register for the call at https://ir.sigmalithiumcorp.com/events
Toronto, Ontario--(Newsfile Corp. - August 14, 2026) - Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) (BVMF: S2GM34) ("Sigma Lithium" or the "Company"), the largest producer of lithium oxide concentrate in the Americas¹ and dedicated to industrializing lithium materials to supply global producers of batteries for energy security in a responsible manner, announces the Company's results for the three months ended June 30, 2026 and provides an update on recent developments.
RECORD REVENUES AND EBITDA MARGINS
In 2Q 26, Sigma Lithium achieved gross margin of
LOW COST POSITION REINFORCED
Decreased costs across the board by over
- Plant gate costs at US
$ 401 /t , (-36% from 1Q 26) - CIF costs at US
$452 /t (-33% from 1Q 26) - Total Cash Costs: US
$668 /t (AISC - All-In Sustaining Cost) returned to levels of 3Q 25, the last quarter where the Company operated near nominal capacity. These costs have the potential to be further decreased as the operational ramp-up continues
DECREASED TOTAL DEBT BY
In 2Q 26, Sigma Lithium continued to reduce its debt levels, with net debt cut to US
During 2Q 26, Sigma Lithium continued to receive advanced payments for sales of high-grade lithium oxide concentrate from the previously announced US
Negotiations to secure financing for the repayment of amounts outstanding under the export prepayment agreement with Synergy, which totaled US
TAC AGREEMENT UNDERWAY
Since the week started July 17, 2026, mining and plant operations have been temporarily paused as part of a partial suspension, pending the closing with the Minas Gerais state government of a terms for adjustment of procedures ("Termo de Ajuste de Conduta" or "TAC Agreement").
A TAC Agreement is a standardized form of agreement, that must be mutually agreed between federal and state regulatory bodies and the company. The TAC Agreement is designed to address certain issues raised by the Vale do Jequitinhonha branch of the Minas Gerais state environmental enforcement body. Once the TAC Agreement is finalized, the Company expects to resume mining activities. Sigma Lithium's expectation is that this will occur in the near term.
Operations related to the sale of high-purity lithium fines, consisting of reprocessed tailings generated by previous production, have continued without disruption.
As noted above, the ramp-up of mining operations following its primarization commenced in January 2026, involved the phased deployment of increasingly larger mining equipment. Once mining activities resume following the current suspension, the Company expects to continue to increase mining haulage capacity and implement the next phase of equipment upgrades.
TAC AGREEMENT BACKGROUND
On July 22, 2026 Sigma Lithium announced that the Company started negotiating the TAC Agreement with the Minas Gerais state government. The negotiations follow a notification by the Vale do Jequitinhonha regional branch of the Minas Gerais state environmental agency, based in the town of Diamantina, which included the issuing of fines totaling approximately US
Sigma Lithium vehemently denies any wrongdoing with respect to the key claims raised in connection with the Company's operations. Sigma Lithium reaffirms that the Company: a) has not misrepresented any information filed with the environmental authorities since 2018; b) has not commercially sold any lithium materials prior to May 2023; and c) denies the claims alleging that 2 houses located outside of Sigma Lithium's licensed area are negatively impacted by its activities.
The Company agreed to the payment of up to US
The Company estimates that the execution of the proposed adjustments of environmental procedures under the TAC Agreement will require an estimated capex of approximately US
INCREASED PLANT 1 CAPACITY LOWERED REALIZED COSTS
Following the successfully conclusion of a ramp up of mining operations following the primarization of 4Q 25, and considering the temporary suspension mentioned above, Sigma Lithium has moved forward by a quarter its twelve-month production guidance of 240,000 tonnes of lithium oxide concentrate.
The Company is providing production guidance of 330,000 tonnes for the full year of 2027, assuming only Plant 1 is operating throughout the year. This is higher than the original Plant 1 annual nominal capacity of 270,000 tonnes, reflecting productivity improvements in the reprocessing circuit from a steady flow of spodumene being delivered to the industrial plant. This frequent cadence was a result of the successful ramp up of mining operations
Sigma Lithium lowered guidance for total cash costs costs per tonne to reflect the lower AISC costs achieved in 2Q 26.
Sigma Lithium remains committed to delivering strong near-term growth. Primarily to reflect the recent temporary suspension of operations, the Company has pushed forward the completion of the construction of its next industrial plant to the end of 2027.
The Company also expects that it will be able to initiate construction of a third industrial plant next year, completing it by the end of 2028. Plants 2 and 3 will add another 250,000 tonnes of annual capacity each, taking total capacity to 830,000 tonnes per year.
Table 1: Sigma Lithium Production and Cash Flow Estimates
| Production Volumes and Costs per Tonne (US$/t) | Estimated 12 Month Period Plant 1 | Estimated FY 2027 Plant 1 | Estimated Plants 1 & 2 | Estimated Plants 1, 2 & 3 |
| Production Volumes | 240,000 | 330,000 | 580,000 | 830,000 |
| CIF China Cash Cost (1) | ( | ( | ( | ( |
| All-In Sustaining Cost (2) | ( | ( | ( | ( |
| Cash Flow Forecasts at Various Realized Lithium Prices (US$ M) (3) | ||||
| Cash Flow @ US | ||||
| Cash Flow @ US | ||||
| (1) Excludes royalties. (2) Excludes financial expenses. (3) Realized lithium prices assume | ||||
ABOUT SIGMA LITHIUM
Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) (BVMF: S2GM34), ("Sigma Lithium" or "the Company") is the largest producer of lithium oxide concentrate in the Americas¹ and dedicated to industrializing socially and environmentally sustainable lithium materials to supply global producers of batteries for energy security.
The Company runs one of the world's largest lithium production sites—the fifth-largest industrial-mineral complex for lithium oxide concentrate—at its Grota do Cirilo operation in Brazil. Sigma Lithium is at the forefront of environmental and social sustainability in the electric battery materials supply chain. The Company's Cleantech Industrial Plant combines the reuse of
Sigma Lithium currently has a nameplate capacity to produce 330,000 tonnes of lithium oxide concentrate on an annualized basis at its mine and state-of-the-art Cleantech Industrial Plant. The Company has initiated a Phase 2 expansion designed to close to double annual production capacity to 580,000 tonnes and plans a Phase 3 expansion to increase this further to 830,000 tonnes. For more information about Sigma Lithium, visit our website.
(1) USGS.
FOR ADDITIONAL INFORMATION PLEASE CONTACT
Anna Hartley, Vice President of Global Banking and Investor Relations
anna.hartley@sigmalithium.com.br
+44 7866 458 093
Mariana Bengtson, Investor Relations Manager
mariana.bengtson@sigmalithium.com.br
+55 11 9 2144 2750
Sigma Lithium
LinkedIn: Sigma Lithium
Instagram: @sigmalithium
X: @SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking information" under applicable Canadian and U.S. securities legislation, including but not limited to statements relating to timing and costs related to the general business and operational outlook of the Company, the environmental footprint of tailings and positive ecosystem impact relating thereto, donation and upcycling of tailings, timing and quantities relating to tailings and Green Lithium, achievements and projections relating to the Zero Tailings strategy, achievement of ramp-up volumes, production estimates and the operational status of the Grota do Cirilo Project, and other forward-looking information. All statements that address future plans, activities, events, estimates, expectations, or developments that the Company believes, expects, or anticipates will or may occur is forward-looking information, including statements regarding the potential development of mineral resources and mineral reserves which may or may not occur. Forward-looking information contained herein is based on certain assumptions regarding, among other things: general economic and political conditions; the stable and supportive legislative, regulatory and community environment in Brazil; demand for lithium, including that such demand is supported by growth in the electric vehicle market; the Company's market position and future financial and operating performance; the Company's estimates of mineral resources and mineral reserves, including whether mineral resources will ever be developed into mineral reserves; and the Company's ability to operate its mineral projects including that the Company will not experience any materials or equipment shortages, any labor or service provider outages or delays or any technical issues. Although management believes that the assumptions and expectations reflected in the forward-looking information are reasonable, there can be no assurance that these assumptions and expectations will prove to be correct. Forward-looking information inherently involves and is subject to risks and uncertainties, including but not limited to that the market prices for lithium may not remain at current levels; and the market for electric vehicles and other large format batteries currently has limited market share and no assurances can be given for the rate at which this market will develop, if at all, which could affect the success of the Company and its ability to develop lithium operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, except as required by law. For more information on the risks, uncertainties and assumptions that could cause our actual results to differ from current expectations, please refer to the current annual information form of the Company and other public filings available under the Company's profile at www.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309640