Sigma Lithium Q2 Earnings Call Highlights

Record Q2 performance: Sigma Lithium produced 35,400 tons of lithium concentrate, up 52% quarter over quarter, generating a record $55 million in revenue, a 60% gross margin and a 47% EBITDA margin. Temporary operational suspension: Mining and industrial operations were paused amid negotiations with Minas Gerais officials, though management described discussions as constructive and expected a restart within one to two weeks. Expansion and liquidity plans remain on track: Sigma reduced costs and debt, expects approximately $60 million in third-quarter cash receipts, and continues plans to expand capacity to 330,000 tons annually by 2027 and potentially 830,000 tons by 2028. Sigma Lithium Proves Shorts Wrong: Market Reversal Underway Sigma Lithium NASDAQ: SGML reported record second-quarter revenue and profitability as higher production volumes and lower costs supported margins, while the company also addressed a temporary suspension of mining and industrial operations tied to negotiations with the state of Minas Gerais. Chief Executive Officer Ana Cabral-Gardner said the company produced 35,400 tons of lithium oxide concentrate during the second quarter, a 52% increase from the first quarter and 6% above guidance. Net revenue reached a quarterly record of $55 million, while first-half revenue totaled $97 million. Lithium Grab: 2 Lithium Stocks That Could Be Takeover Targets The company reported a 60% gross margin, a record EBITDA margin of 47%, and an operating margin of 32%. Cabral-Gardner said Sigma generated $27 million of cash from operations during the first half of 2026 and maintained a positive net margin. Sigma said plant-gate costs were $401 per ton in the quarter, while CIF costs were $452 per ton and all-in sustaining cash costs were $668 per ton. Cabral-Gardner said plant-gate and CIF costs declined by more than 30% and that the company had lowered its 2026 all-in sustaining cash-cost guidance to $668 per ton, reflecting its second-quarter performance. 3 Lithium Stocks Powering Up For Big 2023 Gains The company realized a net price of $2,089 per ton for SC5 material, according to Cabral-Gardner. She said Sigma’s cost structure provided approximately $1,400 per ton of cash profit compared with CIF Asia pricing after adjusting for grade. Management also highlighted debt reduction. Cabral-Gardner said Sigma repaid 25% of its total debt over the past year and 43% over the past two years, reducing total debt by roughly half during that period. During the question-and-answer session, Cabral-Gardner said Sigma temporarily halted both mining and industrial operations after receiving notifications associated with negotiations over a TAC agreement with Minas Gerais. She said the wording of the notifications made it difficult to determine precisely which operations were required to stop, prompting the company initially to suspend both areas. Cabral-Gardner said discussions with the state had been constructive and that the company expected a potential conclusion the following week. She said Sigma sought to be “fully cleared” of what she characterized as false accusations raised by local inspectors rather than simply reach a settlement. She said the company could restart industrial operations and expected that the only benefit of doing so before a complete resolution would be restarting its reprocessing circuit. In response to a question about timing, Cabral-Gardner said the best-case scenario would be a mining restart the following week, while the worst-case scenario could take about two weeks. Despite the suspension, Sigma continued to ship lower-...