Highlights

• Sigma Lithium produced 7,293 tonnes of lithium oxide concentrate in 3Q 2026, with production impacted by an operational stoppage by local authorities during the quarter, with operations subsequently restarted following court protection of operating and Mining licences.

• A 32% gross Margin was maintained in 3Q 2026 despite significantly lower production volumes, reflecting the company's cost discipline and low-cost operational profile.

• The company completed a Convertible Bond issue, extending over 90% of Short-Term Debt Maturity and reducing short-term debt by approximately 78% from approximately USD 125 million to approximately USD 28 million.

• FY27 production guidance of 330,000 tonnes from Plant 1 is maintained, with a production target of 240,000 tonnes over the next 12 months also in place.

Sigma Lithium Corporation (ASX:SAU, NASDAQ: SGML, TSX-V: SGML), described as the largest producer of industrial-mineral lithium oxide concentrate in the Americas, has released a preview of selected preliminary and unaudited results for the third quarter ended 30 September 2026. The preview highlights a period of significant operational disruption following a suspension of operations imposed by local authorities in Brazil during the quarter, alongside a transformational Balance Sheet restructuring through a convertible bond issue. Despite lower production volumes, the company maintained its cost discipline and positive gross margin.

3Q 2026 Operational and Financial Performance

Production of 7,293 tonnes of lithium oxide concentrate in 3Q 2026 was substantially below the company's run-rate capacity, reflecting the impact of an operational suspension imposed by local authorities during the quarter. The company noted that 21,000 tonnes of additional inventory — comprising 15,000 tonnes of low-grade material in high-grade equivalent and 6,000 tonnes of intermediate products — were unprocessed during the stoppage and remain available for sale in 4Q 2026. Since restarting operations in early 4Q 2026, following court-granted protection of its operating and mining licences, the company has produced 9,000 tonnes of high-grade concentrate.

Despite the production disruption, Sigma Lithium maintained a 32% gross margin in 3Q 2026, attributable to cost discipline and the efficiency of its processing operation. The cash cost at the plant gate was comparable to the prior year, while the cost on a CIF China basis was lower than the prior corresponding period, reflecting operational efficiencies. The company's FY26 All-In Sustaining Cost guidance was also reduced during the quarter, reflecting the company's low-cost positioning even in a constrained operating environment.

Balance Sheet Transformation and Debt Restructuring

A key highlight of the 3Q 2026 period was the completion of a convertible bond issue in Hong Kong, denominated in and convertible into the company's ASX-listed CDI securities. The bond issuance extended over 90% of the company's short-term debt maturity, substantially reducing the near-term refinancing burden. Short-term debt declined by approximately 78% through this restructuring. The company also extended the maturity of its senior secured debt agreement to June 2027 from December 2026, providing additional runway.

The company has been self-funded since initiating commercial sales in July 2023, without issuing Equity since 2021 or debt since 2022. This track record of self-funded operations and consistent debt reduction — with total debt reduced by approximately 40% over two years through cash generation — reflects a disciplined financial management approach that is relatively uncommon among lithium producers navigating the current pricing environment. Cash and cash equivalents at 30 September 2026 were approximately USD 10 million, with a range of potential short-term Liquidity sources identified from inventory sales and offtake agreement instalments.

FY27 Outlook, Expansion Plans, and Legal Resolution

Sigma Lithium's FY27 production guidance of 330,000 tonnes from Plant 1 remains in place, with a production target of 240,000 tonnes over the 12 months from the announcement date also maintained. The company's Phase 2 expansion, designed to nearly double annual capacity to approximately 580,000 tonnes, is planned to resume in 2027, with a further Phase 3 expansion targeting approximately 830,000 tonnes also outlined for subsequent phases.

The legal proceedings relating to the operational suspension during 3Q 2026 remain before the Brazilian judiciary, and the company continues to pursue appropriate legal remedies. Sigma Lithium reported achieving landmark outcomes in Brazilian Superior State Courts during the quarter, with the courts ruling to protect its operating and mining licences and recognising the company's significant economic contribution to the state of Minas Gerais. The company has also signed a TAC Agreement with the state of Minas Gerais, protecting its environmental licences and providing a framework for the resumption and continuation of operations on a sustainable basis.

Key Insights

Sigma Lithium's ability to maintain a 32% gross margin through an operationally disrupted quarter is a meaningful indicator of its cost structure's resilience. The convertible bond issuance represents a significant balance sheet management step, materially reducing near-term debt maturity pressure and providing the company with additional financial flexibility as it works toward production normalisation and the Phase 2 expansion.

The legal context in Brazil — with courts protecting Sigma Lithium's licences and the company signing a framework agreement with the state — adds an important dimension to understanding the operational disruption. Observers may focus on the pace of production recovery in 4Q 2026, the release of full 3Q 2026 results scheduled for November 2026, and the trajectory of the balance sheet and Operating Cash Flow as the company ramps toward FY27 guidance.