Sigma Lithium Reports Record Margins as Mining Restructuring Concludes
The lithium oxide concentrate producer achieved a 39% EBITDA margin in the first quarter of 2026
Sigma Lithium Corp (SGML), the largest producer of lithium oxide concentrate in the Americas, reported record profitability for the first quarter ended March 31, 2026, following a restructuring of its mining operations. The company posted a 61% gross margin, a 39% EBITDA margin, and a 26% net margin.
Revenues for the quarter totaled US$42 million, a 150% increase from the fourth quarter of 2025. The company said the previous quarter's results were impacted by a mining restructuring that began in October 2025, which involved bringing operations in-house and upgrading to larger trucks and excavators to increase capacity and efficiency.
Sales volume for the period was 23,000 tonnes of lithium oxide concentrate. The realized price for high-grade lithium oxide was US$1,790 per tonne SC5, compared with US$630 per tonne SC5 in the third quarter of 2025. Revenue generation was driven almost exclusively by the sale of various grades of lithium oxide concentrate, including US$35.5 million from low-grade material.
Sigma Lithium reduced its total debt to US$134 million by the end of the first quarter, representing a 21% decrease over the last year and a 33% decrease over the last two years. The company said it achieved this by paying down short-term export financing lines, which fell from a high of US$102 million at the end of the second quarter of 2024 to US$13 million by the end of the first quarter of 2026.
As of May 15, 2026, the company's cash and equivalents position was US$28 million, the highest level since year-end 2024. This followed a balance of US$4 million at the end of the first quarter, as accounts receivable of US$22 million were translated into cash.
Following the completion of the mining ramp-up, the company is on track to achieve an annualized production of 240,000 tonnes of high-grade lithium oxide concentrate. Sigma Lithium also signed a three-year offtake agreement for 40,000 tonnes per year of high-grade concentrate, which includes a US$50 million advance payment due by the end of June 2026.
The company expects to conclude its Phase 2 and Phase 3 expansions by year-end 2027. Phase 2 is designed to increase nominal annual capacity from 270,000 tonnes to 520,000 tonnes, while Phase 3 aims to lift capacity further to 770,000 tonnes.