Sigma Lithium Q2 2026 Earnings Report

Sigma Lithium EPS Results

• Actual EPS: -$0.02
• Consensus EPS: $0.23
• Beat/Miss: Missed by -$0.25
• One Year Ago EPS: N/A

Sigma Lithium Revenue Results

• Actual Revenue: $54.70 million
• Expected Revenue: $68.34 million
• Beat/Miss: Missed by -$13.64 million
• YoY Revenue Growth: N/A

Sigma Lithium Announcement Details

• Quarter: Q2 2026
• Date: 8/13/2026
• Time: Before Market Opens
• Conference Call Date: Friday, August 14, 2026
• Conference Call Time: 8:30AM ET

Sigma Lithium (NASDAQ:SGML) Corp. is a Canada-based mineral exploration and development company focused on the sustainable production of battery-grade lithium from hard rock deposits. The company’s flagship asset is the Grota do Cirilo lithium project, located in the state of Minas Gerais, Brazil. Grota do Cirilo comprises a fully permitted, low-altitude spodumene mine and processing plant designed to produce high-purity lithium concentrate and downstream lithium hydroxide for the global electric vehicle and energy storage markets.

Since its founding in 2018, Sigma Lithium has pursued a vertically integrated approach, overseeing each stage of production from ore extraction and beneficiation to chemical conversion. The company emphasizes environmental stewardship and aims to minimize its carbon footprint through measures such as water recirculation, tailings dry stacking, and renewable energy use. In 2023, Sigma Lithium commenced commercial concentrate shipments, marking a key milestone in its strategy to become a reliable supplier of critical battery materials.

Headquartered in Vancouver, British Columbia, Sigma Lithium operates primarily in Brazil but serves customers and investors worldwide, including North America, Europe and Asia. Its leadership team is led by President and Chief Executive Officer Stefan Acker, who co-founded the company with Eduardo Ribeiro and brings extensive experience in mining development and project financing. Under their guidance, Sigma Lithium has raised capital through equity and strategic partnerships to advance its growth pipeline and future expansion initiatives.

As demand for electric vehicles and renewable energy storage continues to climb, Sigma Lithium positions itself as one of the first hard rock lithium producers in Latin America with commercial output. The company remains focused on optimizing plant performance, expanding production capacity and delivering battery-grade lithium products that meet the evolving quality and sustainability requirements of manufacturers worldwide.

Sigma Lithium Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record operating and financial performance: Q2 production rose 52% sequentially to 35,400 tons of lithium oxide concentrate, while revenue reached a company record of $55 million and EBITDA margin reached a record 47%.
• Positive Sentiment: Sigma reported strong cost control, with all-in sustaining cash costs of $668 per ton, and lowered its 2026 cost guidance to that level. The company also generated $27 million in operating cash flow during the first half and reduced total debt by 43% over two years.
• Positive Sentiment: A redesigned mine pit expanded access to high-grade ore by 83%, supporting the company’s plan to increase output to 330,000 tons annually using the existing plant and to reach approximately 830,000 tons of installed capacity by the end of 2028 through additional plants.
• Negative Sentiment: Mining and processing were temporarily suspended amid negotiations with authorities in Minas Gerais, although management expects a restart within roughly one to two weeks. The company said it can continue selling lower-grade materials and expects about CAD 60 million of cash inflows in Q3, but the disruption and regulatory dispute remain execution risks.

Presentation

[Operator]

Good morning, ladies and gentlemen. Welcome to Sigma Lithium 2026 Second Quarter Earnings Conference Call. I would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. A recording of this webcast will be available on the company's website. After the prepared remarks, there will be a question and answer session for participants. At this time, further instructions will be provided. I would now like to turn the conference over to Anna Hartley, Vice President of Investor Relations. Please go ahead.

[Anna Hartley, VP of Investor Relations at Sigma Lithium]

I'd like to welcome you to our second quarter 2026 earnings conference call. Joining me on the call today is Ana Cabral-Gardner, Co-Chair and CEO of Sigma Lithium, and Felipe Peres, CFO of Sigma Lithium. I'd like to remind you that some of the statements made during this call, including any production guidance, expected company performance, update on mining operations, the timing of our projects, and market conditions, may be considered forward-looking statements. Please note the cautionary language about forward-looking statements in our presentation and press release, which are available on the Sigma Lithium website. I will now be turning the call to Ana Cabral-Gardner.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Thank you, Anna. I'm now going to introduce you to Sigma Lithium's second quarter of 2026 earnings presentation. Without further ado, I'll go into the next slide. During this quarter, we continued to deliver on execution excellence, cost control, and operational resilience, driving value creation for our shareholders. Sigma is a large-scale, low-cost, and traceable producer of lithium materials. We do not have tailings dams. We do not use drinking water. We do not use hazardous chemicals. We do not use dirty energy. 100% of our energy is renewable, and we have not had an accident in over 1,100 days. At the bottom, there are three pictures that illustrate that. Pictures are more than a thousand words. We uphold at Sigma the highest global mining standards. When you look at the left, you see our mining waste rock piles.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

We actively regenerate them, planting grass, so they are integrated into the environment. That's the highest G7 standards. When you look at other G7 countries to high standards, you can see the same waste rock pile up next to the environment. Again, this is a high standard waste rock pile. We go above and beyond what others do. Some other countries have tailing dams, and again, very high standard, but we don't have any of them. That's why we believe that we can generate significant efficiency operational, because we can deliver our material and maintain traceability and sustainability. For example, we have managed to upgrade our mining operations in record time. Moreover, we have managed to achieve record recoveries in our Greentech Plant. On this slide, you can see the images of our waste rock piles, fully rehabilitated and regenerated with vegetation, grass.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Once these piles come to their final shape of usage, that's the work we do. We do artificial germination, and they become beautiful, integrated to the landscape. One can only see they are waste piles because of the terracing. In front of them, there's our beautiful new fleet. A picture is a thousand words. Now, without further ado, I'm going into the financial highlights of the second quarter of 2026. We've had an incredible quarter. The reliable and disciplined execution enabled us to surpass all of our targets. We deliver a very large cash flow, generating $27 million in cash from operations during the first half of the year. We also were able to generate high margins as a result of disciplined cost control. We maintained our high gross margin at 60%, and we delivered a record 47% EBITDA margin, the highest in our history.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

That's a result of disciplined cost control, lower costs, and increased production volumes. We delivered 35,400 of lithium oxide concentrate this quarter, an increase of 52% over the first quarter. As a result, we also had another record, the highest net revenues in our history at $55 million this quarter. Discipline. We remained our low-cost leader, decreasing costs even further. $401 per ton plant gate, $452 per ton CIF, $668 per ton all-in cash costs. That gives us tremendous resilience, an entrenched competitive advantage, and an ability to be a cash machine. At current price levels, we are well into excess return territory. Due to our commercial flexibility, we were able to realize pretty good net lithium prices for SC5, which demonstrates how our clients are supportive and are fans of our high-purity product, $2,089. This page illustrates further what our low-cost stewardship does for us.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Delivers strong cash flow and high profitability. It is all about the costs. We increased production by 52%. Then, as a result of the low costs, we were able to deliver the margins we referred to before. More importantly, the revenues of $97 million for the first half of the year. All of it enabled us to continue to repay debt in a very disciplined approach to our balance sheet. We managed to repay 25% of our debt over the last year, total debt. Over the last two years, we deleveraged the balance sheet in half. We repaid 43% of our total debt. We're now at probably the lowest levels of debt ever in our history. This enables us to continue to execute on our significant near-term growth strategy. By the year-end 2027, without building a second plant, we will be able to increase production capacity by almost two times.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Once we build two plants, we will be able to increase production capacity by two and a half times from 2027 to 830,000 tons. That capacity will be installed by the end of 2028. That's the result of two additional plants. We decided to embark on this growth strategy to take full advantage of our efficiency and the very favorable lithium markets. This slide illustrates further our cost leadership. This is the result of the financial discipline and precision in growth strategy and CapEx. A page with numbers. There are a thousand words. We delivered a decrease of double digits across the board. Plant gate and CIF costs decreased over 30%. Now, all-in sustaining costs are back to normal, which were third quarter of 2025, which means that we still can decrease them a bit further then as we increase volumes and normalize production.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Our all-in sustaining cost was $668 per ton in the second quarter. Again, that puts us well into excess return territory at current lithium prices. Here is an additional illustration of that. If we compare net prices, meaning price adjusted to 5% grade, we are delivering against CIF Asia approximately $1,400 per ton of cash profit. When you compare that with our competitors, you can see that we are almost neutral to lithium prices, almost as if we are the floor. That cost discipline, which enabled us to execute on our strategy so successfully, has been now reflected into our cost guidance. We are now adjusting our updated guidance and lowering it to reflect the executed, delivered, all-in sustaining cash cost in the second quarter. That comes down to $668 a ton for the year of 2026.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Therefore, we are on track to deliver on the year of 2027 guidance of $620 all-in cash costs, total cash costs per ton as we continue to increase production volumes. This page illustrates how we have been able to deliver on some of the lowest costs in our industry, while at the same time maintaining one of the world's best safety records for employees. Over 101,000 days have gone by, and our employees go back home to their families safely. This is a result of our own employee engagement and our strict safety processes. Everyone feels that they are responsible for their safety and their colleagues' safety. Our TRIFR is zero. That is another zero, again, demonstrating our execution excellence. This next page illustrates how we have been able to achieve operational efficiency and maintain our high margins across the board. Gross margins stayed at 60%.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

EBITDA margins were all-time record of 47%. Operating margins remain at 32%, and we maintain profitability with a positive net margin. Therefore, here it is, an illustration of our debt reduction enabled by financial discipline. We repaid 25% of total debt in the last year, 43% of our total debt. That is significant deleverage over the last two years. When it all comes together, one can see how our strong performance translates into cash and fully converts, making our operation self-sustaining and resilient. We sell everything, not only the high grade, but also our tailings, which are dry stacked. That adds quite a lot to our cash generation, as you can see on this page. We actually had, in June 30th, end of second quarter, a cash position that was enhanced by a sale of lithium materials, all high grade.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

In addition to it, we are also being able to sell current inventory of lithium materials of varying grades, mostly high grade. In other words, we are going to be 100% circular very soon and just sell everything that our plant generates. From high grade to low grade, we have a very wide spectrum of high-purity products that just increase our resilience and help us be fully sustainable. Without further ado, I am going to start on our operational highlights and our production and capacity outlook, especially in light of the recent events. We have surpassed our high-grade lithium oxide production, and we are demonstrating significant operational efficiency. Our mining ramp-up surpassed guidance, and we delivered 35,000 tons in the second quarter 26. That was an increase of 6% over guidance. We are on track to deliver on our previous guidance. We just pushed it forward by three months.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

We are in a very good position to negotiate an agreement with the state of Minas Gerais, and we have cleared most of our main points. As a result, we are going to execute, as planned, our additional fleet upgrade and deploy 75-ton trucks and 98-ton excavators to our site in order to increase haulage capacity. That is how confident we are that we are going to be able to successfully advance into primarizing our mining operation and continuing to ramp up our production. When you look at it as a whole a year later, the conclusion is that the increase in safety, the increase in operational efficiency, fully validated the decision to primarize our mine.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

We have all of our operations under full control, and we are deploying haulage and ability to bascule through the excavators that significantly increased our productivity and our capabilities to increase geometry of the mine, as we will discuss further into this section. Here is a detailed discussion of our continued execution of the fleet upgrade that is going to take place in the third quarter of 2026. We delivered on our first-half targets, increasing the scale, the haulage capacity, by 40%. We are continuing on the upgrade by now bringing the excavators of 98 tons, replacing some of the 75-ton excavators, and bringing in the 75-ton trucks to add to the fleet of 60-ton trucks. Now that geometry is wider, we actually have more flexibility at the waste removal areas. This is the second stage of deployment of large equipment.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Larger machinery means more productivity, so it enables us to maintain our low cash cost operating position. Therefore, it increases our resilience as a company. It help us navigate throughout the cycles. This slide illustrate visually how the work we have been conducting for the last couple of months of reassessing the geometry has paid off. We designed a new pit shell, a new mining pit shell, that enabled the company to access a large amount of high-grade spodumene ore. We constructed ramps, brought in larger trucks, so we are able to unlock this larger block of material that will feed our industrial plant. The results are on the page quantified. The size of the block is 83% larger than the block we were able to access with the old design. At 1.1 million tons of fresh ore, we can produce 200,000 tons of lithium oxide concentrate.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

All in, an 83% increase in raw material delivers almost 100% increase in oxide concentrate production. Lastly, this ore is a very high grade, 1.4% of fresh rock. This is how we are able to operate throughout the remaining months in full capacity, meaning using the main circuit and the reprocessing circuit because of the amount of high-grade fresh ore being delivered to the plant. This slide is basically to outline how our production expansion plans remain on track. Our forecasts were pushed forward by just three months. The production forecast with only plant one for the 12 months forward remains at 240,000 tons of high-grade lithium concentrate per year. By the end of 2027, including all circuits that the first plant has, and that includes the recirculation circuit, our production forecast is at 330,000 tons per year.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

That's a result of the plant recovery of 70% in the main circuit and a fully working reprocessing circuit for the other material. As it comes to construction, we plan to have an installed capacity at the end of 2027 once we complete the construction of the second plant of 580,000 tons of high-grade lithium concentrate per year. That incorporates the first plant and its reprocessing circuit capacity. Therefore, we plan to green-light Plant 2 at the beginning of January. We have flexibility on how to execute our construction plans. There is a scenario where we could green-light both plants, Plant 2 and Plant 3, at the same time at the beginning of 2027 in January. If we don't, we would build them sequentially. So by the end of 2028, we expect to have 830,000 tons of installed capacity for production.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

With that kind of capacity and with our current plant, the cash flow forecasts, and again, we're just estimating Plant 1, which is already built. They vary just according to current price ranges estimated by Wall Street research analysts. So at the low end of the range, at $1,500 per ton, we could be generating cash flows that would go from $166 million if you take into account 12 months forward, or $360 million once we contemplate production during 2027. If the prices go to $2,500 per ton, we would be looking at cash flows that would be $235 million if we just stay on the production for 12 months forward. But once we deliver the 2027 production, which again can be done with just one plant, we reach half a billion dollars in cash flow. This is a direct result of our low-cost position, high margins, and efficiency.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

In other words, we do not need a lot of volume to generate quite a substantial amount of cash. We're now going to make our final remarks in the conclusion of our second quarter 2026 earnings presentation. Sigma Lithium plans to deliver substantial returns to shareholders this year in 2026. First, because of our significant growth profile of production within the next 12 months. We plan also to significantly increase incremental industrial capacity. We're going to resume construction of Plant 2 and potentially build Plant 3 at the same time. Given that we are in a very robust lithium market environment, as we're going to discuss later, this is the time to build and to build in scale. More importantly, we have proven execution capabilities and a very experienced team. We have built our first plant in record time and commissioned it even faster.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Just recently, we prioritized and automated our entire mining operations, upgrading the fleet once, and now we're upgrading it again to increase haulage capacity. All of that done while maintaining a world record in employee safety with over 1,100 days without accidents. Our operational resilience is based on these two pillars. This financial discipline regarding when to deploy CapEx for growth and timing is now. More importantly, on relying and monetizing our structural low-cost advantages to convert that into cash flow, which basically sustains the company throughout all lithium markets. Our sector is going through a unique moment in growth. We are enabled by AI instead of disrupted by AI. The demand growth from battery storage is in fact driving lithium global growth demand. AI data centers and energy security require battery storage. Battery storage requires lithium, and therefore lithium demand is set for a decades-long growth period.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

The bar charts below demonstrate that if you compare 2025 year-end demand with 2026 expected lithium demand, in lithium carbonate equivalent, we have a growth of 900,000 tons of LCE. If that is translated into our product, lithium oxide, you multiply by eight. So that is approximately 7 million tons of lithium oxide concentrate to supply this year's demand projections. If we forward that almost another decade to 2035, global demand is expected to be 5 million tons of LCE. If one were to translate that into our lithium oxide concentrate product, that will be approximately 40 million tons of production. In other words, that's multiple sides of Sigma. At that level, in other words, at 800,000 tons per year expected in 2028, which is going to be our expected production with three plants, we will be supplying a fraction of global expected demand, approximately 2% only.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

That is the scale of the growth of the sector, and that is a demonstration of how companies need to be well-positioned to deliver growth with low CapEx fast, which is precisely what we plan to do by 2028. Our share price, if you look at the left, has behaved very much in line with the sector, and that is actually a very piece of good news. Again, the demand growth and the fundamentals are far too strong and erase all the short-term volatility and noise. Our company has very strong operational and financial performance fundamentals, and that is the foundation of our value. Here, our low cost and our strong cash generation are those foundations.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Therefore, we're clearly positioned for a re-rating because at an expected 75,000 tons of LCE equivalent of production capacity constructed by the end of next year, we are very much in line with some of our peers which have market caps which are double our market cap. So that is what we expect to happen over the course of the year, a significant re-rating. Now we move on to the Q&A. Thank you very much for joining us today.

[Operator]

Thank you very much for the presentation. We will now begin the questions and answers section. To ask a question, please submit your question using the Q&A button on your screen. Please provide your name and the name of your company for your question to be taken. Our first three questions comes from Joel Jackson from BMO Capital Markets. First, what was your exact

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Let me make sure I can go to the questions.

[Operator]

production in Q2 of normal lithium concentrate and exact production in Q2 of the lower grade concentrate/fines/tailings? Two, you generated $30 million of cash flow in Q2. If the mine does not restart for the rest of Q3, what is your expected cash flow or burn? Three, what are the best and worst case scenarios for mine restart? When it restarts, how many months will it take Sigma to ramp it to full grade lithium concentrate production?

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Hi, Joel. It's great to hear from you. Let me just do the following. Let me put the page of the presentation on the screen so that I can actually better answer your question. Can you see my screen? Yeah. Perfect. Now, the entire production for the quarter was high-grade material. We've done that so that we would highlight that the plant and the mine have gone back to fully ramped position of production of ore. That's the first part of the question. The lower grade that we produced during the second quarter wasn't sold, and it's going to be sold now. When you look at the cash flow projections, this number here, the $32 million, do include the low-grade material that was produced during the second quarter. We deliberately did not sell in order to have a clean quarter of production and sales.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

That, I would say, answers the first part of your question. The second part of your question, regarding the fact that we generated $13 million of cash flow in Q2. Well, it was more. If you look at the accounting, then you have the net inflows, given that $27 million was sold but did not convert into cash. Right? How much do we expect to generate into Q3? Well, that's the exact $27 million that didn't convert into cash, that was sold, is going to be added to the material that was produced that was not high-grade and that will be sold. For the third quarter, just to begin with, as of today, we have approximately $60 million to receive in cash flow. That's the value in blue, 32, and the value in dashed green. Best and worst case for mine restarts.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Well, best case would be to restart next week. Worst case restart, I think it would take about two weeks. The dialogue is going quite well. Conversations have been very constructive. But given the nature of the notifications we received, and given the fact that these are mostly false accusations executed by local inspectors, we are being quite strict when it comes to the terms of the agreement because we want to be cleared of any wrongdoing. It won't be just a settlement. We would like to be fully cleared given that the accusations are false. As we have a significant amount of cash flow to come in into Q3, we are obviously negotiating that from a position of strictness. After all, it's our reputation on the line, and we treasure reputation.

[Operator]

Our next three questions comes from Aubin Chen from Haitong International. First one. Regarding the two offtake prepayments, the $96 million associated with the 70,500 ton one year agreement and the $50 million associated with the 40,000 ton per year three-year agreement, could you clarify how much cash Sigma has actually received from each agreement to date? Specifically, has the $50 million been used to repay debt as previously indicated? Two, regarding the temporary suspension related to the TAC negotiations, could you please clarify exactly which operations have been suspended? Is the suspension limited to mining activities or have both mining and processing operations been suspended? Secondly, given that a production suspension is clearly a material operational event for the company, why wasn't the market and shareholders informed immediately when the suspension occurred? Could you explain the company's reasoning behind the timing of the disclosure?

[Operator]

Three, during the current production suspension, are you still able to process and ship lithium middlings? How much lithium middlings did the company ship in the last quarter, and how much are you planning to ship this quarter? Also, have you signed any additional sales or offtake agreements for lithium middlings?

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

That's a lot to unpack, so let me take your question in pieces, right? First, regarding the offtake agreement for $96 million. We have received $60 million to date. Then in the third quarter, there are additional amounts of that payment to be received. So out of the $96 million, we received $60 million. So that's the first part of your question. That's out of the 70,500 ton offtake agreement. Then regarding the second offtake, regarding 40,000 tons of material to be shipped over three years, given our exceptional ramp up, we are increasing the amount of that offtake, and we're currently negotiating that increase. Indeed, when that agreement gets closed, meaning financially closed post-increase, it will be 100% used to repay debt as we announced earlier.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

In fact, we're going to repay the debt no matter what, most likely by the end of the third quarter. There are few liquidity alternatives available to us in order to repay that debt, that will either way repay it or refinance it with other creditors. The reason is our substantial cash generation position made it clear that we are in a very good position to move forward. The second part of your question, which is related to the TAC, we did disclose that immediately. In fact, I was on vacation when that happened, and we put together a press release immediately thereafter, as soon as we could make sense of the notifications we received. That ties back to the rest of your question, meaning is it limited to mining activities or have both mining and processing operations been suspended?

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Well, if you read the notifications, it's pretty difficult to say exactly what is supposed to be suspended. So we undertook the initial approach of stopping both operations, mining and industrial. Later, as negotiations progressed, we learned that it was a temporary suspension. But as we sat on the table from a position of strength, we did not reinitiate industrial operations. They're vertically integrated anyway. The only thing that we would gain by resuming industrial operations would be to restart the reprocessing circuit. So now we're probably in a position to restart industrial operations, and we will. But we hope to have an overall final conclusion of this by next week. So I think that answers the second part of your question.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

But I think I'd like to reiterate, in the middle of my vacation in July, we did put out a pretty clear announcement about the TAC and the suspension, unfortunately, because I was on vacation. So during the current production suspension, are we still able to process and ship lithium middlings? Absolutely, and that's what we've been doing. That, in fact, is the source of our resilience. When you look at the third quarter financials, the $32 million and the $27 million reflect just that, in addition to high-grade material that had not been sold for the cutoff of June 30th, that we hadn't shipped to the port in time to make it to the sales cutoff of June 30th. So when you look at the volume sold of 24,000 versus the volume produced of 35,000, there's still a bit of high-grade material there that was sent to be shipped.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

The remaining of these amounts here shown are middlings. We don't call it middlings, we call it low grade, high purity, because middlings are materials produced by flotation plants where a particle of spodumene is broken. That's why our material carries significant value. In a DMS plant, the particle of spodumene isn't broken, the crystal is intact, so it can be easily reprocessed with a 60% recovery into sometimes 4.7% material by our clients. Lastly, you asked whether we had signed any additional sales or offtake agreements for these materials. Well, we don't sell them on offtake basis. We sell them on a spot basis, and we're going through a very healthy bidding process for these materials. Just to illustrate, we have 300,000 tons of materials left, and we have a bid for $65 per ton.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Again, as we decided not to sell any fines in the second quarter to have a clean quarter, that will probably be in addition to these two amounts on the screen. The 32 plus 27, we got 300,000 tons of fines, high-grade lithium fines at currently $65 per ton in a bid. Very healthy market, very robust demand. I guess I answered all of your questions.

[Operator]

Our next question comes from David Ding from CICC. Hi, Ana. Thanks for the call. May we know if the new timeline for planned construction of phase II or phase III is more relevant to mining plan adjustment, funding consideration, or any other factors? Thanks.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Not really. Let me go back to the forecast here. Good things happen out of, let's say, difficult situations. Last year, when we changed mine contractor, we started to basically rely on our reprocessing circuit at the current Litomax plant. That circuit was perfected, adjusted, tested with varying amounts and types of feed. The result was that we learned that plant capacity, current plant capacity, is actually 330,000 tons per year once it is fully fed with fresh ore. Why is that? Because both circuits are working at the same time. The high-grade circuit and then the low-grade circuit, which then gets reprocessed and turned into high-grade, 5.1, 5.2% of concentrate. With full feed of fresh ore, meaning 160,000 tons of fresh ore, that plant can actually deliver 330,000 tons of material. We have known that since 2024, December, when we upgraded the plant.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

If you look at the amount produced in the fourth quarter of 2024, when we solely fed the plant fresh ore, that was the annualized throughput. As we vastly disclosed here and discussed, we have not been able to deliver fresh ore at a cadence to the plant ever since, because the troubles with the old mining contractor began right after that, during the first quarter, and then the second quarter. By the third quarter, we ended up changing contractors and dismissing that contractor all along, and primarizing the mine. Essentially, what we will do is to go back to full capacity of the plant by having both main circuit and reprocessing circuit at full tilt once this mine delivers fresh ore material in full capacity, which is 160,000 tons of ore per month. What we have done this quarter is a demonstration of it.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

We produced 35,000 tons of concentrate because we have been feeding fresh ore to the plant.

[Operator]

This concludes our questions and answers section. Now I am returning to our CEO, Ana Cabral-Gardner, for her final remarks.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

Well, I want to thank you all for bearing with us during this presentation. Again, we are very confident in what we are doing. We have a significant growth profile. We have proven that we can execute under fire, and we have the experience to deal with pretty much most issues. More importantly, we can prove, and we have been proving, that we are doing what one of our shareholders said is validation of ESG under stress. In other words, our governance is in compliance, are being tested out there in the open. Our social and environmental credentials and track record withstand any attempts to challenge it and withstand all this scrutiny. Our operational resilience is there. Look how far we got. No one expected us to do this without raising additional capital. That is the result of our structural low cost and financial discipline.

[Ana Cabral-Gardner, Co-Chair and CEO at Sigma Lithium]

So again, I reiterate what is happening in the market, plus the way this company has been battle-tested, positions us incredibly well for what is coming ahead in the second half of the year. Thank you very much for listening.

[Operator]

The second quarter of 2026 conference call of Sigma Lithium has concluded. For further information, please visit the company's website at www.sigmalithiumresources.com. You may disconnect now and have a nice day.

Participants

Executives

• Anna Hartley, VP of Investor Relations
• Ana Cabral-Gardner, Co-Chair and CEO