Sigma Lithium (SGML) Q3 2025 earnings summary

Executive summary

• Net revenue rose 69% quarter-over-quarter and 36% year-over-year, reaching $28.5 million in 3Q25, driven by strategic commercial strategies, client partnerships, and effective pricing amid lithium market volatility.

• Achieved strong cash generation, including $31 million from final price settlements and an additional $33 million expected from sales of high-purity lithium middlings.

• Maintained a strong safety record with over 787 consecutive days without a lost time injury and a TRIFR of 1.79, among the lowest globally.

• Upgraded Greentech Plant to version 3.0, achieving over 70% recovery rates and compensating for mining operation delays; mining operations set to resume by end of November with full ramp-up by 1Q26.

• Maintained financial discipline by reducing short-term trade finance debt by up to 60% year-to-date, with a remaining balance of $33.8 million as of November 13, 2025.

Financial highlights

• Net revenues increased by 69% sequentially and 36% year-over-year to $28.5 million in 3Q25, with an average SC6 provisional price of $847/t, up 33% QoQ.

• Operating margin rose by 42% and net margin by 67% compared to the same quarter last year.

• Cash position as of November 13, 2025, was $21 million, with trade receivables at $8.2 million; total liquidity including cash and receivables was $26.1 million.

• Paid down 43% of short-term trade finance debt year-to-date, with a remaining balance of $33.8 million as of November 13, 2025.

• Total debt decreased to $161.9 million from $181.2 million year-over-year.

Outlook and guidance

• Targeting all-in sustaining cost of $560 per ton for 2026, with further reduction to $500–$503 per ton expected after phase two expansion.

• Projected free cash flow for 2026 ranges from $42 million to $132 million, and up to $270 million in 2027 at current price levels.

• Guidance for Q1 2026: 73,000 tons of lithium oxide concentrate production; full Greentech Plant capacity of 300,000 tons targeted for 2026, with phased expansion to 120,000 tons LCE by 2027.

• Mining operations expected to resume by end of November and reach full ramp-up by 1Q26.