Sigma Lithium (SGML) Q2 2026 Earnings Report

The call emphasized strong operational execution, record margins, meaningful production growth (+52% QoQ), substantial cost reductions (plant gate/CIF down >30%) and significant deleveraging (25% debt repaid in the last year; 43% over two years). Management presented a clear growth roadmap (up to 830,000 t capacity by end-2028), attractive realized prices ($2,089/ton SC5) and large upside cash‑flow scenarios. Near-term negatives are primarily operational/regulatory (temporary suspension/TAC negotiations), some cash conversion timing and lower‑priced fines inventory—issues management expects to resolve quickly. Overall, the highlights materially outweigh the lowlights and the tone is constructive about growth and financial resilience.

Sigma’s guidance tightened on costs and expanded on near‑term capacity: management updated 2026 all‑in sustaining cash costs to $668/ton (targeting ~$620/ton in 2027) while reporting Q2 production of ~35,400 t Li2O concentrate (up 52% QoQ) with ~24,000 t sold; a Plant‑1 12‑month run‑rate of 240,000 t/year rising to 330,000 t/year by end‑2027 (full Plant‑1 circuits), installed capacity of 580,000 t/year once Plant‑2 is complete (end‑2027) and 830,000 t/year with three plants by end‑2028. Financial guidance points to strong cash generation (H1 cash from operations $27M; Q2 revenue $55M; H1 revenue $97M), very high profitability (gross margin 60%, EBITDA margin 47%, operating margin 32%), realized SC5 net price ~$2,089/t and ~ $1,400/t CIF cash profit, with unit costs of $401/ton plant‑gate and $452/ton CIF; cash‑flow scenarios range from ~$166M–$360M at $1,500/t to ~$235M–$500M at $2,500/t, the company expects roughly $60M of cash to be receivable in Q3, and confirmed continued debt reduction (25% repaid in the last year, 43% over two years).