Sigma Lithium (SGML) Q2 2025 earnings summary

Executive summary

• Achieved 68,368 tonnes of lithium oxide concentrate in 2Q25, a 38–40% year-over-year increase and above the quarterly target, maintaining top safety standards with over two years without lost-time accidents or fatalities.

• Maintained operational discipline and cost leadership, positioning as one of the lowest-cost global producers and supporting resilience through market cycles.

• Advanced construction of Plant 2, on track to double nameplate capacity to 520,000 tonnes per year by 2026, with further expansion (Phase 3) targeted for 2027.

• Deleveraged short-term debt by 57% year-over-year and secured $100 million in subsidized government debt for expansion.

• Withheld product during price volatility, resulting in lower sales revenue but preserving long-term margins and commercial flexibility.

Financial highlights

• Reported sales revenue of $21.1 million in 2Q25 from 40,350 tonnes sold, a 62% year-over-year decrease due to strategic withholding.

• All-in sustaining costs dropped 24% year-over-year to $594/t; plant gate costs decreased 4% to $348/t; CIF China cash costs, including royalties, decreased 14% to $442/t.

• Net loss for 2Q25 was $18.9 million, compared to a net loss of $10.8 million in 2Q24.

• Cash and cash equivalents at quarter-end were $15.1 million, with accounts receivable at $16.8 million.

• Short-term finance debt reduced by 57% year-over-year and by 15–16% sequentially.

Outlook and guidance

• On track to meet full-year 2025 guidance of 270,000–274,000 tonnes of lithium oxide concentrate, with Plant 2 expansion on track for 2026 ramp-up and further expansion targeted for 2027.

• Long-term growth plan targets 120,000 tonnes LCE capacity by 2026–2027.

• Expect positive price adjustments in Q3 and Q4 due to provisional pricing strategy.

• Evaluating long-term prepayment and offtake agreements to optimize capital structure and support expansion.

• Forecasted AISC for 2025 and 2026 are $500/t and $427/t, respectively.