0001292814-26-001908
SEC filingSigma Lithium's FY2025 revenue fell 27% to $110M as a mine restructuring pause and weaker lithium prices drove a net loss of $50.2M, though cash flow from operations turned positive.
Sigma Lithium's fiscal 2025 results reflect a challenging year marked by a strategic restructuring of mining operations and persistent weakness in lithium prices. Net sales revenue fell 27.3% to $110.0 million from $151.4 million in 2024. The decline was driven by a 36% reduction in sales volumes (150.5 thousand tonnes vs 236.9 thousand tonnes) and a 22% drop in the average realized price to $661 per tonne from $850. Gross profit decreased 41.8% to $18.4 million, with gross margin contracting to 16.7% from 20.9%. The decline in profitability was exacerbated by $8.0 million in idle capacity expenses and a $7.9 million provision for expected inventory losses.
The company reported an operating loss of $24.1 million, compared to a loss of $5.1 million in 2024, and a net loss of $50.2 million versus $51.4 million. The slight improvement in net loss was due to a positive swing in provisional price adjustments (net $4.2 million gain vs a $46.8 million loss last year) and lower net financial expenses ($10.3 million vs $61.0 million), largely from favorable foreign exchange movements. Basic loss per share was $(0.45), compared to $(0.46) in the prior year.
As of December 31, 2025, Sigma Lithium's cash and cash equivalents stood at $6.2 million, down sharply from $45.9 million a year earlier. The company reported negative working capital of $151.2 million, driven by $49.5 million in suppliers (including $25.7 million under dispute) and $127.3 million in current loans and export prepayments. Total debt was $140.5 million, of which $100.6 million was the Synergy export prepayment agreement due December 2026. The company has classified this long-term debt as current due to dependency on operating cash flows for repayment.
Notably, short-term export prepayment trade finance was reduced by $36.0 million to $24.1 million. The company also held $11.3 million in cash collateral related to the Synergy agreement. The balance sheet remains constrained, with equity of $56.6 million, down from $92.3 million at year-end 2024.
Despite the net loss, operating activities generated $2.4 million in cash for the year, a significant improvement from cash used of $18.3 million in 2024. The improvement was driven by lower interest payments ($19.1 million vs $31.5 million) and a $12.0 million reduction in trade receivables. Capital expenditures totaled $10.9 million (excluding loans to related parties), well below the $23.6 million spent in 2024, reflecting the pause in expansion activity. Free cash flow was negative at approximately -$8.4 million after capex. The company relied on debt proceeds ($57.7 million) to partially offset repayments, resulting in $33.3 million of net cash used in financing activities.
Management attributed the revenue decline to the mine restructuring initiated in October 2025, which paused mining operations until late January 2026. The restructuring aims to bring mining in-house and use larger equipment to improve operating margins. During the pause, the Greentech Industrial Plant continued processing tailings. The Phase 2 expansion remains a priority, with an expected additional 250,000 tonnes per year of lithium oxide concentrate capacity. A BNDES loan of R$487 million is secured for Phase 2 construction, though drawdowns are pending issuance of letters of credit.
Post-year-end, Sigma signed several agreements: a 70,500-tonne high-grade lithium concentrate offtake with a $96 million working capital revolver, sales of 650,000 tonnes of lithium fines for $44.6 million cash, and a three-year offtake for 40,000 tonnes per year with a $50 million advance payment. Management plans a net cash flow of $29 million for 2026 after servicing the Synergy loan.
Segmental information is limited, as the company operates a single reportable segment: lithium mining and processing. Revenue was geographically diversified: Switzerland (52%), UAE (47%), and others. The company recognized $1.8 million in stock-based compensation (down from $8.1 million in 2024). Material non-cash items included $10.4 million in depreciation and depletion, $17.9 million in foreign exchange gains, and $7.9 million in inventory write-downs. Provisions for contingencies totaled $5.4 million at year-end, with an additional $21.8 million in possible losses. The company also reported material weaknesses in internal controls over financial reporting, with an adverse audit opinion from Grant Thornton.