Sigma Lithium Corporation SGML used its second-quarter 2026 earnings call to emphasize cost discipline and a near-term restart of operations after a temporary suspension tied to negotiations with Minas Gerais authorities.
CEO and co-chairperson Ana Cabral Gardner also kept the company’s expansion plan intact, while pushing the 240,000-ton production ramp forward by three months and outlining a larger Plant 1 opportunity.
Second-quarter revenues were $54.70 million, beating the Zacks Consensus Estimate of $54.00 million. The company reported a loss per share of 2 cents in contrast to the Zacks Consensus Estimate of 15 cents.
SGML Targets a Near-Term Operating Restart
Gardner said negotiations on a TAC agreement with the state of Minas Gerais were progressing constructively and that the company expected a near-term resolution. She described a best-case restart within a week and a worst case of about two weeks.
The company initially stopped both mining and industrial operations after receiving regulatory notifications. Gardner said industrial operations could restart before a full agreement because the suspension was later understood to be temporary.
The press release said mining and plant operations had been paused since the week of July 17, while sales of high-purity lithium fines continued.
Sigma Lithium Pushes Plant 1 Output Higher
Gardner said Plant 1 can produce 330,000 tons of lithium concentrate annually when both its main and reprocessing circuits run at full capacity with sufficient fresh ore feed.
That supports full-year 2027 production guidance of 330,000 tons using Plant 1 alone. The company also maintained a 240,000-ton production target for the next 12 months, shifted forward by three months.
Gardner tied the higher potential to improved mine geometry, larger equipment and access to a 1.1 million-ton fresh-ore block that is 83% larger than under the prior pit design.
SGML Lowers Cost Guidance After Q2 Gains
Gardner said production growth and tighter cost control drove plant-gate costs to $401 per ton, CIF costs to $452 and all-in sustaining costs to $668.
The company lowered its 2026 total cash cost guidance to $668 per ton and maintained a 2027 target of $620 as production volumes increase.
Sigma Lithium Keeps Expansion on Track
Gardner said Sigma Lithium plans to resume construction of Plant 2, with installed capacity targeted at 580,000 tons per year by the end of 2027.
Management also is evaluating whether to begin Plants 2 and 3 together in early 2027 or build them sequentially. Total installed capacity is targeted at 830,000 tons per year by the end of 2028.
Gardner framed the expansion decision around the company’s low-cost operating position, cash generation and management’s view that lithium demand supports adding capacity.
SGML Q&A Centers on Restart and Cash Flow
A BMO Capital Markets analyst asked about the suspension, restart timing and cash generation if mining remained offline. Gardner said the company had about $60 million of expected cash receipts entering the third quarter from prior sales and unsold material.
She also said all second-quarter production was high-grade material, while lower-grade material produced during the period was held for later sale.
A CICC analyst asked whether the timing of Plants 2 and 3 reflected mining, funding or other constraints. Gardner said the shift centered on maximizing Plant 1 output through full use of the reprocessing circuit rather than a funding limitation.
Sigma Lithium Stays Focused on Execution
Gardner closed the call by stressing operational control, financial discipline and the company’s ability to continue funding operations without additional equity capital.
Management’s second-half priorities are clear: resolve the TAC process, restart operations, continue the mining fleet upgrade and restore full fresh-ore feed to Plant 1 while preparing the next expansion phase.
What Zacks Signals Say About SGML
SGML currently carries a Zacks Rank #3 (Hold). Its Growth Score of B, Value Score of D, Momentum Score of C and VGM Score of C give the stock a mixed profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Across the Zacks style framework, Zacks Rank #3 stocks can be held, while stronger Style Scores are preferred. SGML’s Growth Score is the strongest of the four measures, while its Value Score is the weakest. The Zacks Rank can change as earnings estimates are revised after the just-reported results.
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