Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) (BVMF: S2GM34) (“Sigma Lithium” or the “Company”), the largest producer of lithium oxide concentrate in the Americas¹ and dedicated to industrializing lithium materials to supply global producers of batteries for energy security in a responsible manner, announces the Company’s results for the three months ended June 30, 2026 and provides an update on recent developments.
RECORD REVENUES AND EBITDA MARGINS
In 2Q 26, Sigma Lithium achieved gross margin of 60%, maintaining high levels of 1Q26 (at 61%). EBITDA margin at 47% was the highest in the Company’s history, further improving on the 39% margin of 1Q 26. Revenues of US$55 million were also at a record high, up from US$42 million in 1Q 26. Sigma Lithium sold 24,400t in 2Q 26 and commercial flexibility improved the realized price by 17% to US$2,089 (SC5) from US$1,790 in 1Q 26.
LOW COST POSITION REINFORCED
Decreased costs across the board by over 30%, while upgrading mining operations, resulting from financial discipline. The reduction reflected a 50% growth in production volumes to 35,400t following a continuous ramp-up of operations started in January 2026, as well as gains achieved following the primarization of mining operations and upgrade in mining equipment.
- Plant gate costs at US$ 401/t , (-36% from 1Q 26)
- CIF costs at US$452/t (-33% from 1Q 26)
- Total Cash Costs: US$668/t (AISC – All-In Sustaining Cost) returned to levels of 3Q 25, the last quarter where the Company operated near nominal capacity. These costs have the potential to be further decreased as the operational ramp-up continues
DECREASED TOTAL DEBT BY 25% WITHIN LAST YEAR
In 2Q 26, Sigma Lithium continued to reduce its debt levels, with net debt cut to US$125 million from US$134 million at the end of 1Q 26. The Company remained focused on progressively repaying its higher-cost, short-term export financing facilities. Total debt at the end of 2Q 26 declined by 43% in two years. Sigma Lithium’s cash position stood at US$17 million as of June 30, 2026.
During 2Q 26, Sigma Lithium continued to receive advanced payments for sales of high-grade lithium oxide concentrate from the previously announced US$96 million offtake agreement.
Negotiations to secure financing for the repayment of amounts outstanding under the export prepayment agreement with Synergy, which totaled US$95 million as of June 30, 2026 (excluding $11 million cash held as collateral), are expected to enable a pre-payment. Sigma Lithium is currently evaluating a range of financing alternatives, several of which have emerged as a result of the successful mining ramp up and maintained positive sentiment about lithium markets this year.
TAC AGREEMENT UNDERWAY
Since the week started July 17, 2026, mining and plant operations have been temporarily paused as part of a partial suspension, pending the closing with the Minas Gerais state government of a terms for adjustment of procedures (“Termo de Ajuste de Conduta” or “TAC Agreement”).
A TAC Agreement is a standardized form of agreement, that must be mutually agreed between federal and state regulatory bodies and the company. The TAC Agreement is designed to address certain issues raised by the Vale do Jequitinhonha branch of the Minas Gerais state environmental enforcement body. Once the TAC Agreement is finalized, the Company expects to resume mining activities. Sigma Lithium’s expectation is that this will occur in the near term.
Operations related to the sale of high-purity lithium fines, consisting of reprocessed tailings generated by previous production, have continued without disruption.
As noted above, the ramp-up of mining operations following its primarization commenced in January 2026, involved the phased deployment of increasingly larger mining equipment. Once mining activities resume following the current suspension, the Company expects to continue to increase mining haulage capacity and implement the next phase of equipment upgrades.
TAC AGREEMENT BACKGROUND
On July 22, 2026 Sigma Lithium announced that the Company started negotiating the TAC Agreement with the Minas Gerais state government. The negotiations follow a notification by the Vale do Jequitinhonha regional branch of the Minas Gerais state environmental agency, based in the town of Diamantina, which included the issuing of fines totaling approximately US$540,000 and required a partial suspension of the Company’s operations. Several fines were related to environmental issues that occurred from 2013 to 2022.
Sigma Lithium vehemently denies any wrongdoing with respect to the key claims raised in connection with the Company’s operations. Sigma Lithium reaffirms that the Company: a) has not misrepresented any information filed with the environmental authorities since 2018; b) has not commercially sold any lithium materials prior to May 2023; and c) denies the claims alleging that 2 houses located outside of Sigma Lithium’s licensed area are negatively impacted by its activities.
The Company agreed to the payment of up to US$540,000 for the above mentioned fines. In parallel to negotiating the TAC Agreement, Sigma Lithium has filed a significant amount of factual and quantitative environmental evidence supporting its defense to the claims related to its current operations with FEAM, the environmental regulator of Minas Gerais state.
The Company estimates that the execution of the proposed adjustments of environmental procedures under the TAC Agreement will require an estimated capex of approximately US$1,000,000, mainly related to germination and grassing of the waste rock piles near the south mining pit.
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