Sigma Lithium Reports 2Q25 Results: Delivers ON-Target Production, Further Cost Reductions and Deleveraging
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SIGMA LITHIUM REPORTS 2Q25 RESULTS:
DELIVERS ON-TARGET PRODUCTION, FURTHER COST
REDUCTIONS AND DELEVERAGING
HIGHLIGHTS
• Achieved 68,368t of lithium oxide concentrate in 2Q25, a 38% year -on-year increase and slightly
above the quarterly target of 67,500t.
• Maintained cost under control and below the target over previous quarter driven by economies of
scale, stable plant gate costs, and efficient logistics:
o CIF China cash operating costs of $442/t in 2Q25, 12% below target of $500/t.
o All-in sustaining cash costs (AISC) totaled $594/t in 2Q25, 10% below target of $660/t.
• Reported gross sales revenue – lithium oxide concentrate of $21.1 million, 60.3% decrease compared
to 2Q24 , r eflecting a deliberate strategy to withhold product during intense price volatility,
preserving pricing power and protecting long-term margins.
• Advanced Plant 2 construction, completed key site preparation activities and advanced procurement
strategy for critical equipment, keeping the project on track to double nameplate capacity to
520,000 tonnes per year.
Conference Call Information
The Company will hold a conference call to discuss its financial results for the second quarter of 2025 at 8:00
a.m. ET on Friday, August 15, 2025. To register for the call, please proceed through the following link Register
here.
São Paulo, Brazil. August 15, 2025. Sigma Lithium Corporation (TSXV/NASDAQ: SGML, BVMF: S2GM34), a
leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon
neutral, socially and environmentally sustainable lithium concentrate, reports its results for the second quarter
ended June 30, 2025.
Ana Cabral, Co-Chairperson and CEO, commented: “Our second-quarter performance highlights the strength of
Sigma Lithium’s low -cost, large -scale operations and disciplined commercial strategy. We managed to further
decrease our costs consolidating our operational resilience. We maintained production cadence at 68kt and are
comfortably on track to deliver on our annual production target of 270kt while preserving pricing power in a volatile
market —while upholding some of the highest health and safety standards in the battery materials supply chain:
we cele brated two years without accidents or fatalities. These results demonstrate our ability to execute
consistently, create value through market cycles, and reinforce our leading position as a global integrated
industrial and mineral lithium producer.”
Table 1. Summary of Key Operational and Financial Metrics
Production and Sales Unit 2Q25 2Q24 Var.
Y/Y(%) 1Q25 Var.
Q/Q(%)
Production Volumes tonnes 68,368 49,389 38% 68,308 0%
Sales Volumes tonnes 40,350 52,572 -23% 61,584 -34%
Average grade of shipped product % of Li2O 5.2 5.5 -0% 5.0 0%
COGS $/t 584 566 3% 556 5%
Operating Cash Cost at Plant Gate (2) $/t 348 364 -4% 349 -0%
Operating Cash Cost CIF China (2) $/t 442 515 -14% 458 -3%
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All-in Sustaining Cash Cost (2) $/t 594 779 -24% 622 -4%
Financial Performance Unit 2Q25 2Q24 Var.
Y/Y(%) 1Q25 Var.
Q/Q(%)
Sales Revenue(3) $ 000s 21,148 56,311 -62% 47,833 -56%
COGS $ 000s (23,564) (29,766) -20% (34,217) -31%
Average Revenue per Tonne (3) $/t 524 1071 -51% 777 -32%
EBITDA(4) $ 000s (16,876) 8,639 -295% 10,010 -268%
Stock-based compensation $ 000s 200 1,943 -110% 1,416 -114%
Adjusted EBITDA(4) $ 000s (17,077) 10,582 -261% 11,426 -249%
Net Income $ 000s (18,857) (10,848) 73% 4,728 -499%
Cash and Cash Equivalents, at the end
of the respective period $ 000s 15,113 75,330 -80% 31,111 -51%
Revenues and Production
Sigma Lithium reported revenues of $ 21.1 million for 2Q25, representing a 62% year-on-year decrease and a
56% decrease over 1 Q25 revenues. Sales volumes totaled 40,350 tonnes in 2Q25, down 23% from 2Q24 and
down 34% compared to 1Q25, primarily due to our disciplined commercial strategy, under which we temporarily
withheld product from the market during periods of intense price volatility to preserve pricing power and protect
long-term margins.
The Company reported production volumes of 68,368 tonnes in 2Q25, slightly higher than quarter production
target of 67,500 tonnes, and 38% higher compared to 1Q24. The Company expects its FY25 production to reach
270,000 tonnes.
Costs
The Company reported a cost of sales of $23.6 million for 2Q25, reflecting a 20% decrease compared to 2Q24
and a 31% decrease compared to 1Q25. On a per -tonne basis, the cost of sales averaged $ 584 per tonne of
product sold, which represents a 3% increase year-over-year and a 5% increase from 1Q25.
The Company’s operating cash costs remain among the lowest in the industry, with CIF China cash operating
costs averaging $442/t. This represents a 3% decrease from $458/t in 1Q25 and remains 12% below the 2025
cost target of $500/t. This reduction was supported by economies of scale from higher production volumes,
stable plant gate costs, efficient freight and port operations, and lower CIF charges — achieved despite the
recognition of ocean freight expenses related to prior-quarter shipments.
All-in sustaining cost (AISC) decreased by approximately 4% to an average of $594/t, remaining below the full-
year target of $660/t.
Balance Sheet & Liquidity
As of June 30, 202 5, the Company’s cash and cash equivalents totaled $31.1 million, representing a 32%
decrease from $45.9 million as of December 31, 2024 , primarily driven by operational costs and expenses, as
well as the deleveraging of trade finance lines.
The Company reduced its short-term trade finance by approximately $6 million in 2Q25, bringing the balance to
$45.5 million as of June 30, 2025. The total amount of short and long-term debts was $166.9 million as of June
30, 2025. The net interest paid in 2Q25 totaled $0.8 million or approximately $12/t of quarterly production.
The Company is evaluating potential long -term prepayment and offtake agreements, in line with standard
industry practices. To date, it has maintained full commercial flexibility, with 100% of its production uncommitted.
Any agreements executed would form p art of the Company’s strategy to optimize its capital structure and
support Phase 2 funding alongside BNDES reimbursements.
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Operational and Phase 2 Expansion Updates
During the six -month period ended June 30, 2025, Sigma continued to progress on the Phase 2 expansion
project, with completion of key site preparation activities including formal earthworks and terracing. The
Company remains focused on de -risking execution through strategic alignment of Phase 2 with the proven
flowsheet, engineering concepts, and supplier partnerships established in Phase 1.
In parallel, Sigma has undertaken a detailed review of procurement priorities and project execution strategy,
reinforcing its commitment to value-driven capital allocation and operational excellence. This includes evaluating
optimal timelines for the contracting of long lead equipment and engineering services that will ensure readiness
for the next construction milestones.
The Phase 2 expansion remains a transformative opportunity for the Company, with expected additional
production capacity of 250,000 tonnes per annum of 5.5% Green Lithium. Together with Phase 1, this would
bring the total annual production capacity to 520,000 tonnes of lithium oxide concentrate at Grota do Cirilo.
The Company continues to leverage the synergies and learnings from Phase 1 to enhance the efficiency and
sustainability of the Phase 2 implementation, with ramping-up scheduled for 2026.
Qualified Person Disclosure
Please refer to the Company’s National Instrument 43-101 technical report titled “Grota do Cirilo Lithium Project
Araçuaí and Itinga Regions, Minas Gerais, Brazil” issued March 31, 2025, which was prepared for Sigma Lithium
by Marc-Antoine Laporte, P.Geo, SGS Canada Inc., William van Breugel, P.Eng, SGS Canada Inc., Johnny Canosa,
P.Eng, SGS Canada Inc ., and Joseph Keane, P. Eng. , SGS North America Inc. (the “Technical Report”). The
Technical Report is filed on SEDAR and is also available on the Company’s website .
The independent qualified person (QP) for the Technical Report’s mineral resource estimates is Marc -Antoine
Laporte P.Geo., M.Sc., of SGS Group in Quebec, Canada. Mr. Laporte is a Qualified Person as defined by
Canadian National Instrument 43-101.
Other disclosures in this news release of a scientific or technical nature at the Grota do Cirilo Project have been
reviewed and approved by Iran Zan MAIG (Membership number 7566), who is considered, by virtue of his
education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Zan is
not considered independent under NI 43-101 as he is Sigma Lithium Director of Geology.
Mr. Zan has verified the technical data disclosed in this news release not related to the current mineral resource
estimate disclosed herein.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) is a leading global lithium producer dedicated
to powering the next generation of electric vehicle batteries with carbon neutral, socially and environmentally
sustainable chemical-grade lithium concentrate.
The Company operates one of the world’s largest lithium production sites —the fifth-largest industrial-mineral
complex for lithium oxide —at its Grota do Cirilo Operation in Brazil. Sigma Lithium is at the forefront of
environmental and social sustainability in the electric vehicle battery materials supply chain, producing Quintuple
Zero Green Lithium: net -zero carbon lithium made with zero dirty power, zero potable water, zero toxic
chemicals, and zero tailings dams.
Sigma Lithium currently produces 270,000 tonnes of lithium oxide concentrate on an annualized basis
(approximately 38,000–40,000 tonnes of LCE) at its state -of-the-art Greentech Industrial Lithium Plant. The
Company is now constructing a second plant to double production capacity to 520,000 tonnes of lithium oxide
concentrate (approximately 77,000–80,000 tonnes of LCE).
For more information about Sigma Lithium, visit our website
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FOR ADDITIONAL INFORMATION PLEASE CONTACT
Anna Hartley, Vice President Investor Relations
Sigma Lithium
Sigma Lithium
@sigmalithium
@SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain “forward -looking information” under applicable Canadian and U.S. securities legislation,
including but not limited to statements relating to timing and costs related to the general business and operational outlook of
the Company, the environmental footprint of tailings and positive ecosystem impact relating thereto, donation and upcycling
of tailings, timing and quantities relating to tailings and Green Lithium, achievements and projections relating to the Zero
Tailings strategy, achievement of ramp -up volumes, production estimates and the operational status of the Grota do Cirilo
Project, and other forward -looking information. All statements that address future plans, activities, events, estimates,
expectations or developm ents that the Company believes, expects or anticipates will or may occur is forward -looking
information, including statements regarding the potential development of mineral resources and mineral reserves which may
or may not occur. Forward -looking information contained herein is based on certain assumptions regarding, among other
things: general economic and political conditions; the stable and supportive legislative, regulatory and community environment
in Brazil; demand for lithium, including that such demand is supported by growth in the electric vehicle market; the Company’s
market position and future financial and operating performance; the Company’s estimates of mineral resources and mineral
reserves, includi ng whether mineral resources will ever be de veloped into mineral reserves; and the Company’s ability to
operate its mineral projects including that the Company will not experience any materials or equipment shortages, any labour
or service provider outages or delays or any technical issues. Although management believes that the assumptions and
expectations reflected in the forward-looking information are reasonable, there can be no assurance that these assumptions
and expectations will prove to be correct. Forward -looking information inherently invol ves and is subject to risks and
uncertainties, including but not limited to that the market prices for lithium may not remain at current levels; and the market for
electric vehicles and other large format batteries currently has limited market share and no assurances can be given for the
rate at which this market will develop, if at all, which could affect the success of the Company and its ability to develop lithium
operations. There can be no assurance that such statements will prove to be accurate, as ac tual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking
information, whether because of new information, future events or otherwise, except as required by law. For more information
on the risks, uncertainties and assumptions that could cause our actual results to differ from current expectation s, please
refer to the current annual information form of the Company and other public filings available under the Company’s profile
at www.sedarplus.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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Financial Tables
The unaudited condensed interim consolidated financial statements for the periods ended March 31, 2025 and 2024 were
reviewed by the Company's independent auditor in accordance with IFRS Accounting Standards, as issued by the International
Accounting Standards Board.
Figure 1: Consolidated Statements of Income (Loss) Summary
Consolidated Statements of Income (Loss)
Three Months Ended
June 30, 2025
Three Months Ended
June 30, 2024
($ 000s)
Net sales revenue 16,888 45,920
Cost of goods sold & distribution (23,564) (29,765)
Gross profit (loss) (6,676) 16,155
Sales expense (183) (376)
G&A expense (4,336) (4,603)
Stock-based compensation (1) (472) (1,943)
ESG and other operating expenses (8,491) (3,627)
EBIT (20,158) 5,606
Financial income and (expenses), net 1,299 (18,632)
Income (loss) before taxes (18,859) (13,026)
Income taxes and social contribution - 2,178
Net Income (loss) for the period (18,859) (10,848)
Weighted average number of common shares outstanding 111,280 110,528
Earnings per share $(0.17) $(0.10)
(1) Excluding stock -based compensation allocated to operating costs. Starting January 1, 2025, the Company began
allocating stock-based compensation for certain operational personnel directly to operating costs, in alignment with revised
internal cost attribution practices. This change reflects a more accurate representation of total operating expenses. Prior to
2025, these costs were reported under general and administrative expenses.
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Figure 2: Consolidated Statements of Financial Position Summary
Consolidated Statements of Financial Position
As of June 30,
2025 As of December 31, 2024
($ 000s)
Assets
Cash and cash equivalents 15,113 45,918
Trade accounts receivable 16,765 11,583
Inventories 24,566 16,140
Other current assets 13,306 19,129
Total current assets 69,750 92,771
Property, plant and equipment 161,617 141,025
Other non-current assets 104,834 93,322
Total Assets 266,451 327,118
Liabilities & Shareholder Equity
Financing and export prepayment 53,655 61,596
Suppliers & accounts payable 44,325 32,627
Other current liabilities 17,359 14,548
Total current liabilities 115,339 108,771
Financing and export prepayment 113,300 112,003
Other non-current liabilities 15,639 14,004
Total non-current liabilities 128,939 126,007
Total shareholders' equity 91,923 92,340
Total Liabilities & Shareholders' Equity 336,201 327,118
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Figure 3: Cash Flow Statement Summary
Consolidated Statements of Cash Flows
Six Months Ended June
30, 2025
Six Months Ended June
30, 2024
($ 000s)
Operating Activities
Net income (loss) for the period (14,131) (17,757)
Adjustments, including FX movements (18,703) 22,941
Interest payment on loans and leases 6,644 (2,971)
Adjustments to income (loss) for the period (12,059) 19,970
Change in working capital 3,854 (22,740)
Net Cash from Operating Activities (8,205) (42,710)
Investing Activities
Purchase of PPE (6,479) (11,185)
Addition to exploration and evaluation assets (545) (2,361)
Other (1,042) (349)
Net Cash from Investing Activities (8,066) (13,895)
Financing Activities
Proceeds of loans, net (16,642) 93,768
Other (1,226) (773)
Net Cash from Financing Activities (17,868) 92,955
Effect of FX 3,344 (9,644)
Net (decrease) increase in cash (30,805) 26,746
Cash & Equivalents, Beg of Period 45,918 48,584
Cash & Equivalents, End of Period 15,113 75,330
Footnotes:
To provide investors and others with additional information regarding the financial results of Sigma Lithium, we have disclosed
in this release certain non -IFRS operating performance measures such as unit operating costs, EBITDA, EBITDA margin,
Adjusted EBITDA, and Adjusted EBITDA margin. These non-IFRS financial measures are a supplement to and not a substitute
for or superior to, the Company's results presented in accordance with IFRS. The non-IFRS financial measures presented by
the Company may be diffe rent from non -GAAP/IFRS financial measures presented by other companies. Specifically, the
Company believes the non -IFRS information provides useful measures to investors regarding the Company's financial
performance by excluding certain costs and expenses that the Company believes are not indicative of its core operating
results. The presentation of these non-U.S. GAAP/IFRS financial measures is not meant to be considered in isolation or as a
substitute for results or guidance prepared and presented in acc ordance with U.S. GAAP/IFRS. A reconciliation of these
financial measures to IFRS results is included herein.
1. Cash unit operating costs include mining, processing, and site based general and administration costs. It is calculated on an incurred
basis, credits for any capitalised mine waste development costs, and it excludes depreciation, depletion and amortization of mine and
processing associated activities. When reported on an FOB basis, this metric includes road freight, and port related charges. When
reported on a CIF basis it includes ocean freight, insurance and royalty costs . Royalty costs include a 2% government royalty and a
1% private royalty.
For CIF operating cost analysis purposes, the Company uses the ocean freight costs of products that sailed during the reporting
period. However, for accounting purposes, and therefore in this quarter’s reported cost of good sold and revenues, ocean freight is
treated as a service provided to a customer and is recognized when the product is delivered.
Cash unit all-in sustaining cost includes unit CIF China cash operating cost, SG&A, maintenance capex and financial expenses.
2. Cash operating profit represents revenue less cost of sales (COGS), excluding depreciation and amortization (D&A) expenses.
Cash operating margin is cash operating profit divided by total revenue for the period.
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3. Average revenue per tonne is calculated as total revenue for the period divided by total sales volume in tonnes. Average COGS per
tonne is calculated as total cost of sales (COGS) for the period divided by total sales volume in tonnes.
4. Adjusted EBITDA is a measure of the Company's recurring core earnings profile. It is calculated as revenue minus cash operating
and selling expenses. The calculation excludes non -cash items such as depreciation and amortization (D&A) and stock -based
compensation expenses. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue for the period.