Sigma Lithium (SGML) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025 and 1Q26, demonstrating resilience amid extreme lithium price volatility without raising new capital.

• Signed $146M in new offtake agreements, supporting growth, debt repayment, and capacity expansion.

• Transitioned mining operations in-house, improving efficiency and reducing costs.

• Maintained industry-leading safety record with zero lost-time accidents for 2.7 years and no fatalities in 13 years.

• Built a new revenue stream by monetizing lithium fines from dry stack tailings, supporting cash flow and debt repayment.

Financial highlights

• Generated $67M in net sales in Q4 2025 and Q1 2026, including $14M in final price adjustments.

• Produced 183,000 tons of high-grade lithium oxide in 2025, down 24% year-over-year due to mining restructuring.

• Achieved $31M in operating cash flow in Q4 2025, a 35% increase from Q3 2025, and $35M in 1Q26.

• Reduced annual revenues by 27% and costs by 21% year-over-year; Q4 2025 saw a 77% cost reduction versus Q4 2024.

• Deleveraged by repaying 60% of short-term debt and 35% of total debt in 2025; total debt at year-end was $141M.

Outlook and guidance

• Production guidance: 200,000–240,000 tons of high-grade lithium oxide concentrate in the next 12 months at an all-in sustaining cost of $592/ton.

• Free cash flow guidance: $158M at $1,500/ton lithium, $218–$260M at $1,800–$2,000/ton, up to $900M with three plants at current prices.

• Plant 2 commissioning expected early 2027, doubling capacity to 520,000 tons; Plant 3 planned, leveraging existing infrastructure.

• No new capital raised; growth funded by offtake prepayments and organic cash flow.

• Anticipates using proceeds from offtake agreements and strong cash flow to pay down $100M loan in 2026.