Sigma Lithium surges as quarterly output rises, costs fall

[Redator]

Sigma Lithium (TSXV, NASDAQ: SGML) surged to a one-month high on Friday as investors welcomed its second-quarter production increase and cost reduction despite missing analyst expectations for earnings.

During the three months ended June 30, 2025, the company’s production of lithium oxide concentrate totalled 68,368 tonnes, representing a 38% year-on-year increase. Importantly, the output exceeded its quarterly target of 67,500 tonnes.

The Brazil-focused lithium miner also kept costs down, with all-in sustaining cash costs (AISC) coming in at $594/t, below its target of $660/t and 24% lower than the $779/t from a year ago.

Despite the higher production, total sales volume dropped 23% over Q2 2024 to 40,350 tonnes, which Sigma’s management attributes to its strategy to withhold products during intense volatility in the global lithium market.

As a result, revenue fell significantly compared to the 2024 quarter, at $21.1 million versus $56.3 million. Net loss also widened to $18.8 million from $10.8 million. Its net loss per share of $0.17 was a substantial miss from a consensus of $0.04 from analysts.

Still, Sigma’s share responded positively, rising by nearly 10% in Toronto at C$9.17, its highest since July 25. The company has a market capitalization of C$902.7 million ($653.8 million).

Sigma CEO Ana Cabral said the company’s Q2 performance highlights the strength of its “low-cost, large-scale operations and disciplined commercial strategy.”

“We maintained production cadence at 68,000 tonnes and are comfortably on track to deliver on our annual production target of 270,000 tonnes while preserving pricing power in a volatile market,” she added.

In the second quarter, Sigma also made progress with the expansion of its Grota do Cirilo operations in Minas Gerais by advancing the construction of a second plant, which would double its production capacity to 520,000 tonnes per year.