Sigma Lithium (SGML) Q2 2025 earnings summary

Executive summary

• Achieved two years without lost-time accidents or fatalities, maintaining a leading safety record and operational excellence.

• Production increased 40% year-over-year, reaching 68,368 tonnes in 2Q25 and annualized guidance of 270,000–274,000 tonnes.

• Maintained cost leadership and operational discipline, positioning as one of the lowest-cost global producers.

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

• Advanced Phase 2 expansion, leveraging existing infrastructure to double capacity to 520,000 tonnes per year by 2026.

Financial highlights

• Gross sales revenue for 2Q25 was $21.1 million from 40,350 tonnes sold, down 62% year-over-year due to strategic sales reduction.

• All-in sustaining costs dropped 24% year-over-year to $594/ton; plant gate costs decreased 4% to $348/ton.

• CIF China cash costs, including royalties, decreased 14% year-over-year to $442/ton.

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

• EBITDA for 2Q25 was $(16.9) million, reflecting lower realized prices and inventory adjustments.

Outlook and guidance

• On track to meet full-year 2025 guidance of 270,000–274,000 tonnes of lithium oxide concentrate.

• Phase II expansion to double capacity to 520,000 tonnes, with ramp-up scheduled for 2026; Phase III 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 support expansion funding.