Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) reported a 47% EBITDA margin for the second quarter ended June 30, 2026, the highest in the company's history. The Brazil-based lithium producer also posted net revenues of $55 million on sales of 24,400 tonnes of lithium oxide concentrate, both records for the company.
The results come as Sigma Lithium navigates a partial operational suspension at its Grota do Cirilo mine in Minas Gerais, Brazil, while negotiating an environmental compliance agreement with the state government. Lithium concentrate producers globally faced significant margin pressure as prices declined from their earlier highs, although lithium prices have since rebounded from their 2025 lows, making cost discipline a focal point for the sector.
#Costs Fell More Than 30% as Production Volumes Rose
Sigma Lithium's plant gate cost fell to $401 per tonne in 2Q 26, a 36% decrease from $623 per tonne in 1Q 26. The company attributed the reduction to a 52% increase in production volumes to 35,400 tonnes, following the ramp-up of in-house mining operations that began in January 2026.
CIF China cash costs declined 33% quarter-over-quarter to $452 per tonne.
All-in sustaining costs fell to $668 per tonne, which the company said returned to levels last seen in 3Q 25, the most recent quarter in which the operation ran near nominal capacity.
The realized price for lithium oxide concentrate rose 17% to $2,089 per tonne on an SC5 basis, from $1,790 in the prior quarter. Gross margin was 60%, compared with 61% in 1Q 26.
#Mining Suspended Pending Environmental Agreement With Minas Gerais
Mining and plant operations have been partially suspended since the week of July 17, 2026, pending finalization of a terms-of-adjustment-of-conduct agreement, known in Brazil as a TAC Agreement, with the Minas Gerais state government.
The suspension followed a notification from the Vale do Jequitinhonha branch of the state environmental enforcement agency. Fines totaling approximately $540,000 were issued, with several related to environmental issues the agency said occurred between 2013 and 2022.
Sigma Lithium stated that it denies wrongdoing in connection with the claims related to its current operations. The company estimated that executing the proposed environmental procedure adjustments under the TAC Agreement will require approximately $1 million in capital expenditure, primarily for revegetation of waste rock piles near the south mining pit.
Operations related to sales of lithium fines from reprocessed tailings have continued without disruption during the suspension, the company said. Sigma Lithium stated that it expects to resume mining activities in the near term once the agreement is finalized.
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#Debt Declined 25% Year-Over-Year
Net debt fell to $125 million at the end of 2Q 26, down from $134 million in 1Q 26. Total debt has declined 43% over two years and 25% since 2Q 25, according to the company.
Sigma Lithium said it continued to repay higher-cost, short-term export financing facilities during the quarter. As of June 30, 2026, $95 million remained outstanding under an export prepayment agreement with Synergy, excluding $11 million held as collateral.
The company reported a cash position of $17 million at quarter-end. Cash generated from operations in the first half of 2026 totaled $27 million.
#Production Guidance Advanced by One Quarter
Sigma Lithium said it moved its 12-month production guidance of 240,000 tonnes of lithium oxide concentrate forward by three months, reflecting the ramp-up progress. The company guided for 330,000 tonnes in fiscal year 2027 from Plant 1 alone, above the original nameplate capacity of 270,000 tonnes.
Construction of a second plant is now targeted for the end of 2027, which would bring total capacity to 580,000 tonnes per year. A third plant is targeted for the end of 2028, raising capacity to 830,000 tonnes.
Sigma Lithium operates the Grota do Cirilo lithium complex in Brazil and competes in global hard-rock lithium concentrate supply, where Australian producers account for the majority of seaborne spodumene concentrate volumes shipped to processing facilities in China.
The company said it expects continued production growth, though the timeline depends on resolution of the current operational suspension, securing construction financing, lithium market conditions, and regulatory approvals.