Sigma Lithium Reports Wider Loss as Sales Fall
The lithium concentrate producer generated US$24.2 million in operating cash flow in the third quarter of 2026, up from US$1.6 million a year earlier.
The lithium concentrate producer Sigma Lithium Corporation (SGML) reported a third-quarter net loss of US$25.9 million as gross revenue fell to US$22.3 million from US$51 million in the preceding quarter. The company said a temporary partial suspension of operations reduced sales volumes.
The loss for the three months ended September 30 widened from US$11.6 million a year earlier. The basic and diluted loss was US$0.23 a share, compared with US$0.10 a share. Sigma Lithium reported a US$16.8 million operating loss and negative adjusted EBITDA of US$6.7 million for the latest quarter.
Net sales revenue fell to US$13.5 million from US$28.5 million a year earlier. The latest quarter included a US$8.7 million reduction from final and provisional price adjustments, encompassing increased ocean freight and port operation costs and moisture and grade adjustments.
Sigma Lithium recorded gross profit of US$4.3 million, compared with a gross loss of US$1.5 million a year earlier. Cost of goods sold fell to US$9.3 million from US$30.1 million over the same period. The company reported an average realized price of US$1,485 a tonne in the latest quarter.
All-in sustaining costs declined 4% from the preceding quarter to US$642 a tonne. The latest figure was presented on a pro forma basis, spreading third-quarter selling, general and administrative expenses over a volume of 60,000 tonnes. Plant-gate costs were US$424 a tonne, and costs including freight and insurance were US$518 a tonne. Sigma Lithium said the latter figure reflected a move to sales terms under which it arranged cost, insurance and freight.
For the first nine months of 2026, gross revenue rose 20% to US$115.4 million. The company reported gross profit of US$62.6 million and adjusted EBITDA of US$35.7 million, alongside a net loss of US$17.4 million, narrower than the US$25.7 million loss a year earlier.
Operating cash flow for the nine months turned positive at US$51.3 million from negative US$6.6 million a year earlier. Third-quarter operating cash flow also rose year over year, reaching US$24.2 million.
Sigma Lithium said operations fully resumed on October 5. It produced 11,000 tonnes of high-grade lithium oxide concentrate through November 10 and held 15,000 tonnes of lithium fines in high-grade equivalent inventory for sale in the fourth quarter. It also held 6,000 tonnes of intermediate products expected to be converted into high-grade concentrate and sold during the quarter.
Sigma Lithium priced a five-year, US$125 million convertible bond on November 2, with closing expected on or about November 16. Proceeds were expected to repay the Synergy export prepayment. On a pro forma basis for the bond and repayment, short-term debt would fall 85% to US$19 million, the company said. At September 30, it held US$10.4 million in cash and equivalents and reported US$127 million in current loans and export prepayment liabilities.
Sigma Lithium is targeting 330,000 tonnes of production from its existing plant in 2027. It plans to raise installed annual capacity to 580,000 tonnes with a second plant, whose construction is set to resume in 2027 with full funding from BNDES. A third plant is planned to bring capacity to 830,000 tonnes a year by 2028.
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